2016-11-16T08:48:40-06:00 2015-12-31 KPMG LLP 1918 Eighth Avenue Suite 2900 Seattle WA 98101 990 2015-01-01 910511770 GROUP HEALTH COOPERATIVE % MARTIN R DOPPS GROU 2064484683 320 WESTLAKE AVE N SUITE 100 SEATTLE WA 981095233 BRET MYERS ASSISTANT TREASURER 2064484683 2016-11-15 true Sue Robison P00560072 2069134000 2016-11-14 2015 2017-02-10 21:41:12Z SCOTT ARMSTRONG 320 WESTLAKE AVE N STE 100 SEATTLE WA 981095233 3518551660 false X WWW.GHC.ORG X 1945 WA TO PROVIDE COMPREHENSIVE, PREVENTION- ORIENTED HEALTH CARE SERVICES TO ITS ENROLLEES AND OTHER PATIENTS IN A MANNER THAT REDUCES COST AS A BARRIER TO CARE. 11 11 7843 624 2483044 143708 43361597 46364989 2867051673 2869169578 53307207 42865145 71521250 69441225 3035241727 3027840937 0 0 0 0 603375486 567848372 0 0 0 2316546268 2340776945 2919921755 2908625317 115319972 119215620 1855357995 1877474544 896265502 838748423 959092493 1038726121 X SEE SCHEDULE O false false 2315935910 2863835095 GROUP HEALTH COOPERATIVE (GROUP HEALTH) PROVIDED HEALTH CARE COVERAGE AND/OR SERVICES TO APPROXIMATELY 352,000 COMMERCIAL GROUP, MEDICARE, MEDICARE ADVANTAGE, MEDICAID, BASIC HEALTH PLAN, FEDERAL EMPLOYEE HEALTH BENEFIT PLAN AND INDIVIDUAL ENROLLEES IN WASHINGTON AND NORTH IDAHO. PLEASE REFER TO A DESCRIPTION OF THE PROGRAM'S OBJECTIVES IN SCHEDULE H, PART VI.2 AND PART VI.5. 55636116 21499107 CARE AND COVERAGE TO 32,816 PEOPLE IN NEED: HEALTH CARE COVERAGE AND SERVICES TO PATIENTS ENROLLED IN GOVERNMENT PROGRAMS. UNREIMBURSED CARE FOR INDIVIDUAL PATIENTS IN NEED. URGENT AND EMERGENCY CARE. PARTNERING WITH SAFETY-NET ORGANIZATIONS. PLEASE REFER TO A DESCRIPTION OF THE PROGRAM'S OBJECTIVES IN SCHEDULE H, PART VI.2 AND PART VI.5. 64090025 48377734 HEALTH RESEARCH AND EDUCATION FOR 439 PEOPLE INCLUDING: RESEARCH AND EVIDENCE-BASED CARE. PROFESSIONAL EDUCATION ACTIVITIES. CONSUMER HEALTH EDUCATION. PLEASE REFER TO A DESCRIPTION OF THE PROGRAM'S OBJECTIVES IN SCHEDULE H, PART VI.2 AND PART VI.5. 1863775 0 37079 HEALTHY COMMUNITIES 1863775 0 37079 2437525826 true true false true false false false false false false true true false false true false false true false false false false false false false false true true false false true true false false false false false false false false false false false false false false true true true true false false true 7074 0 true 7843 true true true false false false false false false false false false X 11 11 false false false false true true true true true false false true true true true true true true true true true X X MARTIN R DOPPS 2064485146 320 WESTLAKE AVE N SUITE 100 SEATTLE WA 981095233 SUSAN JOY BYINGTON CHAIR, TRUSTEE 7.5 0.2 X X 39813 1000 0 ROBERT ALEXANDER WATT VICE CHAIR, TRUSTEE 7.5 0.2 X X 33313 1000 0 PORSCHE EVERSON TRUSTEE 6.5 0.25 X 36563 1000 0 JENNIFER ANN JOLY TRUSTEE 6.5 0.2 X 16875 750 0 HARRY HARRISON JR TRUSTEE 6.5 0.2 X 28438 750 0 DOROTHY ANNE RUZICKI TRUSTEE 6.5 0.2 X 28438 1000 0 LEO FRANCIS GREENAWALT JR TRUSTEE 6.5 0.2 X 22500 1000 0 RUTA ELMA FANNING TRUSTEE 6.5 0.2 X 22500 1000 0 KATHERINE BELL TRUSTEE 6.5 0.2 X 22500 750 0 PHILLIP JEFFREY HAAS TRUSTEE 6.5 0.2 X 28438 1000 0 JERRY FRANKLIN CAMPBELL TRUSTEE 6.5 0.2 X 5625 250 0 JUDITH EMILY SCHURKE TRUSTEE 6.5 0.2 X 16875 750 0 SCOTT ELLIOT ARMSTRONG PRESIDENT & CEO 39.0 1.0 X 2499696 0 36971 SARAH BARIAN YATES EVP & GENERAL COUNSEL 40.0 0.0 X 629260 0 25246 CHRISTOPHER KNACKSTEDT EVP; CHIEF FINANCIAL OFFICER 40.0 0.0 X 987776 0 21751 RICK DALE WOODS EVP; SR ADVSR TO PRES/CEO 40.0 0.0 X 1495524 0 41211 BRETON CLARK MYERS VP; TREASURY 40.0 0.0 X 366785 0 11271 SUSAN S KOZIK EVP; CHIEF INFORMATION OFFICER 40.0 0.0 X 519407 0 22270 ERIN LEFF EVP; GROUP PRACTICE DIVISION 40.0 0.0 X 627419 0 13855 MARK SZALWINSKI EVP; GROUP PRACTICE DIVISION 40.0 0.0 X 1115164 0 22496 ROBERT O'BRIEN EVP; HEALTH PLAN DIVISION 40.0 0.0 X 1193607 0 16819 TAMI LAMP EVP; HR 40.0 0.0 X 380957 0 15999 DIANA BIRKETT RAKOW EVP; MARKETING & PUB. AFFAIRS 32.0 8.0 X 448854 0 25714 DAWN LOELIGER EVP; STRAT PLANNING & DEPLOY 40.0 0.0 X 462606 0 25714 GERARD FISHER VP; CLINICAL ANCILLARY SRVCS 40.0 0.0 X 381552 0 18531 BRIAN O'SHIELDS VP; CHIEF ACTUARY 40.0 0.0 X 449512 0 25245 DONALD LEWIS VP; CHIEF TECHNOLOGY OFFICER 40.0 0.0 X 558745 0 12804 BARBARA TREHEARNE VP; CLIN EXCL &INT CHIEF NURSE 39.0 1.0 X 505198 0 139974 ERIC LARSON VP; GROUP HEALTH RESEARCH INST 39.0 1.0 X 555741 0 18874 DEBORAH HUNTINGTON VP; SALES 39.0 1.0 X 474957 0 25246 CYNTHIA JOHNSON EVP; HR 40.0 0.0 X 323519 0 5926 BARBARA ANN BELT-LLOYD VP; CHIEF ACCOUNTING OFFICER 40.0 0.0 X 384235 0 73120 14662392 10250 599037 1229 true true false GROUP HEALTH PERMANENTE 320 WESTLAKE AVE N SUITE 100 SEATTLE WA 981095233 Medical Professional 332867465 VIRGINIA MASON MED CTR PO BOX 91046 SEATTLE WA 98111 Hospital Services 109413482 OVERLAKE HOSPITAL MED CTR PO BOX 34224 SEATTLE WA 98124 Hospital Services 75267373 ST JOSEPH MEDICAL CENTER 1717 S J ST TACOMA WA 98405 Hospital Services 65271609 PEACEHEALTH MEDICAL GROUP WR DEPT 364 VANCOUVER WA 98683 Hospital Services 64587499 1197 2116557 36095069 8153363 15805 46364989 MEMBER DUES 524114 2393719450 2393719450 MEDICAL SERVICES REVENUE 621491 372253792 372253792 CAPITATION REVENUE 621491 53549189 53549189 CMA - PROGRAM SERVICE REVENUE 621491 15903770 15903770 SELF-FUNDED ADMINISTRATIVE FEES 524292 13628959 13628959 20114418 20114418 2869169578 37042600 37042600 0 0 2378744 2378744 0 2378744 2378744 496360760 99985 490598639 39561 5762121 60424 5822545 5822545 0 0 177743 72523 105220 105220 ADMIN CONTRACT 561000 64437384 64437384 SALES TO MEMBERS 446199 51244 51244 GROUP HEALTH RESEARCH INSTITUTE 541700 2269640 2269640 198993 90809 108184 66957261 3027840937 2933749015 2483044 45243889 0 0 0 0 15559270 15559270 0 447715014 264352426 183362588 53218095 31422517 21795578 12287323 7255025 5032298 39068670 23032325 16036345 0 3781584 3781584 127651 127651 614073 614073 0 1935667 1935667 1685701720 1594415417 91286303 5313076 105703 5207373 380356205 352881973 27474232 33640945 12791 33628154 0 48870171 17044723 31825448 1805829 1172920 632909 0 5218267 963176 4255091 3364962 3364962 0 55798842 32947774 22851068 10600782 9504292 1096490 PREMIUM AND BUSINESS TAX 55113676 65279482 -10165806 CMA - PROGRAM SERVICE EXP. 22152208 22152208 0 BAD DEBT EXPENSE 13636068 11333311 2302757 ADMINISTRATIVE/ACCESS FEES 9261740 2373210 6888530 3483479 1276553 2206926 2908625317 2437525826 471099491 0 105037075 135584246 30129073 37790013 9683476 10358480 100493819 102956256 0 0 0 0 0 0 16764175 18071621 39991159 18053764 1077432054 680800056 414865750 396631998 815709588 839172118 247131334 249370094 23219041 16937197 0 427094 52333505 52121663 1855357995 1877474544 403055830 364256063 0 0 34381851 47766301 128904435 122901368 0 0 0 0 0 0 0 0 329923386 303824691 896265502 838748423 X 942405809 1022866977 7209171 6218997 9477513 9640147 959092493 1038726121 1855357995 1877474544 X 119215620 -28771867 -10810125 X false true X true true true X RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED 795952 795952 2907829365 2908625317 1000000 250000 1000000 1000000 1000000 1000000 4000000 6000000 935937 840359 804876 795952 3377124 250000 250000 250000 250000 1000000 1500000 28297754 28297754 605706355 346930739 258775616 411771508 333869317 77902191 31656437 31656437 396631998 29061478 C 219671216 C ONE HEALTH PORT 637400 C 249370094 0 SELF INSURANCE 57591093 RETIREE MEDICAL 44913415 PENSION LIABILITY 183516936 DEFERRED COMPENSATION 7446089 LEASES 4396149 RENT DIFFERENTIAL 3954425 SECURITY CARE CLAIMS 1453585 OTHER LIABILITIES 552999 303824691 2997782412 -6915575 -5303513 -12219088 3010001500 1935667 15903770 17839437 3027840937 2884861801 324359 324359 2884537442 1935667 22152208 24087875 2908625317 PART XI LINE 2D OTHER THAN TEMP. IMPAIRED ($3,970,939) BOOK PARTNERSHIP EARNINGS ($1,406,945) COGS RECLASS $74,371 ---------- TOTAL ($5,303,513) LINE 4B CMA REVENUE $15,903,770 ------------- TOTAL $15,903,770 PART XII LINE 2D LOSS ON SALE OF ASSETS $257,477 TAX PARTNERSHIP EARNINGS ($7,489) COGS RECLASS $74,371 ---------- TOTAL $324,359 LINE 4B CMA EXPENSES $22,152,208 ------------- TOTAL $22,152,208 true true true X true X true false true true 435 386819 386819 0.00010 37767 56308833 22499468 33809365 0.01160 1094 801086 801086 0.00030 39296 57496738 22499468 34997270 0.01200 5 4472 1230816 37079 1193737 0.00040 9 439 11710149 11710149 0.00400 4 604 1687933 277503 1410430 0.00050 1 52379876 48377734 4002142 0.00140 1 667 245097 245097 0.00010 20 6182 67253871 48692316 18561555 0.00640 20 45478 124750609 71191784 53558825 0.01840 1 15000 15000 2 350262 350262 0.00010 1 7600 7600 1 15000 15000 5 387862 387862 0.00010 false 11333311 1170916 771929 398987 X true true 1 1 CAPITOL HILL MAIN BUILDING 201 16TH AVE E SEATTLE WA 981125260 www.ghc.org/locations X X CAPITOL HILL MAIN BUILDING 1 false false true X X X X X X X X X 13 true false false true X www1.ghc.org/html/public/about/community true 13 true www1.ghc.org/html/public/about/community false false true X 200. 250. X X true true X X true X SEE SECTION C X SEE SECTION C X SEE SECTION C X X X X X true X false X X true X false false PART V, LINE 5 THE CENTER FOR COMMUNITY HEALTH AND EVALUATION (CCHE) CONDUCTED KEY INFORMANT INTERVIEWS WITH 23 INDIVIDUALS REPRESENTING PUBLIC HEALTH, CITY GOVERNMENT, THE HEALTHCARE SAFETY NET, CULTURAL COMMUNITIES, SCHOOLS AND HEALTH ADVOCACY IN KING COUNTY. THE FINDINGS WERE ALSO INFORMED BY 8 KEY INFORMANT INTERVIEWS CONDUCTED EARLIER AS PART OF THE NEEDS ASSESSMENT FOR VIRGINIA MASON MEDICAL CENTER, ONE OF GROUP HEALTH'S HEALTH CARE PARTNERS AND 4 PUBLIC HEALTH DATA EXPERTS. THE LIST OF 35 KEY INFORMANTS/DATA EXPERTS IS AS FOLLOWS: -MARGUERITE RO, DRPH; CHIEF, ASSESMENT, POLICY DEVELOPMENT & EVALUATION UNIT - PUBLIC HEALTH-SEATTLE & KING COUNTY -JOE CAMPO, MPH; SENIOR FORECAST ANALYST - WASHINGTON STATE OFFICE OF FINANCIAL MANAGEMENT -EVA WONG, PHD; EPIDEMIOLOGIST - PUBLIC HEALTH-SEATTLE & KING COUNTY -CHRIS HALSELL; ASSESSMENT COORDINATOR - WASHINGTON STATE DEPT OF HEALTH -ANTOINETTE ANGULO, MPH; DIRECTOR, PREVENTIVE HEALTH SERVICES - SEA MAR COMMUNITY HEALTH CENTERS -PETER RETZTAGG; EXECUTIVE DIRECTOR - COMMUNITY FOR YOUTH -RICHARD BROOKS; EXECUTIVE DIRECTOR - RENTON AREA YOUTH AND FAMILY SERVICES -RALPH FORQUERA; EXECUTIVE DIRECTOR - SEATTLE INDIAN HEALTH BOARD -LISA YOHALEM; DIRECTOR, PLANNING & DEVELOPMENT - HEALTHPOINT -DAVE LEIBMAN; COMMANDER - RENTON POLICE DEPARTMENT -KEN WEINBERG; CEO - JEWISH FAMILY SERVICES REFUGEE & IMMIGRANT SERVICE CENTERS -CHRISTOPHER WILLIAMS; ACTING SUPERINTENDENT - SEATTLE PARKS & RECREATION -ADAM TAYLOR; PROJECT MANAGER, GLOBAL TO LOCAL INITIATIVE - PUBLIC HEALTH-SEATTLE & KING COUNTY -COLLEEN BRANDT-SCHLUTER; HUMAN RESOURCES MANAGER - CITY OF SEATAC -MANDI GEORGE; CHRONIC DISEASE PREVENTION DIRECTOR - YMCA OF GREATER SEATTLE -MARK SMITH; CHIEF OPERATING OFFICER - BOYS & GIRLS CLUBS OF KING COUNTY -PRAMILA JAYAPAL; EXECUTIVE DIRECTOR - ONE AMERICA -ABBIE ZAHLER; COMMUNITY ADVOCACY SUPERVISOR - INTERNATIONAL COMMUNITY HEALTH SERVICES -JASON BERRY; EXECUTIVE DIRECTOR - YMCA-AUBURN VALLEY -JANET ST. CLAIR; DEPUTY DIRECTOR - ASIAN COUNSELING & REFERRAL SERVICES -ALICE PARK; PROGRAM MANAGER - KING COUNTY FOOD & FITNESS INITIATIVE -JENNIFER RAMIREZ-ROBINSON; INTERIM DIRECTOR - NEW FUTURES -BLISHDA LACET; REACH PROGRAM COORDINATOR - PUBLIC HEALTH-SEATTLE & KING COUNTY -MATIAS VALENZUELA; KING COUNTY EQUITY & SOCIAL JUSTICE INITIATIVE - PUBLIC HEALTH-SEATTLE & KING COUNTY -ESTELA ORTEGA MIGUEL MAESTAS; EXECUTIVE DIRECTOR ASSOCIATE ADMINISTRATOR - EL CENTRO DE LA RAZA -TERRY HIGASHIYAMA; COMMUNITY SERVICES ADMINISTRATOR - CITY OF RENTON -GREG DOOTSON; NORTH PUGET SOUND DIRECTOR - LUTHERAN COMMUNITY SERVICES INTERNATIONAL -SUSAN MILLEDER; PROGRAMS DIRECTOR - AMERICAN DIABETES ASSOCIATION -EUDORA CARTER; CHRONIC DISEASE SELF MANAGEMENT - CENTER FOR MULTICULTURAL HEALTH -MARK SECORD; EXECUTIVE DIRECTOR - NEIGHBORCARE HEALTH -SONJA REID; LEAD NURSE - BELLEVUE SCHOOL DISTRICT -TRISE MOORE; FAMILY & COMMUNITY PARTNERSHIP ADVOCATE - FEDERAL WAY SCHOOL DISTRICT -EMILY LESLIE; HUMAN SERVICES MANAGER - CITY OF BELLEVUE -JAY BENNETT; COMMUNITY SERVICES MANAGER - CITY OF FEDERAL WAY -PATTY HAYES, RN, MN; DIRECTOR, COMMUNITY HEALTH SERVICES - PUBLIC HEALTH-SEATTLE & KING COUNTY PART V, LINE 11 IN ITS 2013-2015 CHNA, GROUP HEALTH IDENTIFIED THE SIGNIFICANT HEALTH NEEDS TO BE ADDRESSED AS WELL AS THE IDENTIFIED HEALTH NEEDS WHICH WOULD NOT BE ADDRESSED BY GROUP HEALTH. EFFORTS MADE TOWARD IDENTIFIED HEALTH NEEDS THAT WERE ADDRESSED ARE SPELLED OUT IN THE CHNA AND ARE ENTIRELY CONSISTENT WITH GROUP HEALTHS MISSION AND NATURE AS AN INTEGRATED DELIVERY SYSTEM, ALIGNING COVERAGE AND CARE TO ENGAGE PATIENTS IN THEIR OWN HEALTH. ALTHOUGH THE FOLLOWING HEALTH ISSUES WERE IDENTIFIED IN THE 2013-2015 CHNA, THEY WERE NOT A GROUP HEALTH FOCUS DUE TO LIMITED EXPERTISE, THERE ARE OTHER ORGANIZATIONS ADDRESSING THE NEED, AND/OR GROUP HEALTH RESOURCE CONSTRAINTS PREVENTED EFFECTIVELY ADDRESSING THE NEED. -INJURY PREVENTION: FEEDBACK RECEIVED WAS TO FOCUS GROUP HEALTHS LIMITED RESOURCES ON ITS MOST EFFECTIVE AND EFFICIENT AREAS. THIS WAS NOT ONE OF THOSE AREAS. -TOBACCO CESSATION: THERE ARE OTHER ORGANIZATIONS IN THE COMMUNITY THAT ARE FOCUSED ON THIS HEALTH NEED AND ARE IN A BETTER POSITION TO PROVIDE THIS SERVICE. -MENTAL HEALTH AND SUBSTANCE ABUSE: WHILE GROUP HEALTH HAS A BEHAVIORAL HEALTH UNIT, THIS WAS NOT CONSIDERED EXPERTISE THAT IT COULD LEVERAGE EFFECTIVELY. -ORAL HEALTH: GROUP HEALTH DOES NOT OFFER ORAL HEALTH CARE. THE THREE HEALTH NEEDS CHOSEN FROM THE 2013-2015 CHNA TO BE ADDRESSED BY GROUP HEALTH ARE: 1. ACCESS TO CARE FOR UNDERSERVED POPULATIONS 2. PROMOTION OF PHYSICAL ACTIVITY, IMPROVED FITNESS, AND HEALTHY EATING 3. CHRONIC DISEASE MANAGEMENT AND PREVENTION OF DIABETES AND CARDIOVASCULAR DISEASE THESE NEEDS ARE BEING ADDRESSED BY: ACCESS TO CARE FOR UNDERSERVED POPULATIONS -PROMOTE ENROLLMENT AND PARTICIPATION IN THE HEALTH BENEFIT EXCHANGE AND MEDICAID -CREATE A MORE SYSTEMATIC APPROACH TO PROVIDING ACCESS TO PATIENTS OF SAFETY NET ORGANIZATIONS SERVING COMMUNITIES WITH THE HIGHEST HEALTH NEEDS -PROVIDE DIRECT CARE FOR UNDERSERVED PATIENTS -SHARE CLINICAL AND ORGANIZATIONAL EXPERTISE WITH SAFETY NET ORGANIZATIONS PROMOTION OF PHYSICAL ACTIVITY, IMPROVED FITNESS, AND HEALTHY EATING -COLLABORATE WITH SCHOOLSPARTICULARLY SCHOOL-BASED HEALTH CENTERSTO PROVIDE OPPORTUNITIES FOR YOUTH TO PARTICIPATE IN HEALTH-PROMOTING ACTIVITIES -PARTICIPATE IN KING COUNTY HEALTHY HOSPITAL INITIATIVES -ENSURE YOUTH ACCESS TO HEALTHY FOOD YEAR ROUND. CHRONIC DISEASE MANAGEMENT AND PREVENTION OF DIABETES AND CARDIOVASCULAR DISEASE -COLLABORATE WITH COMMUNITY AND GOVERNMENT PARTNERS TO PROMOTE BICYCLING AND WALKING AS A FORM OF EXERCISE AND TRANSPORTATION -PROMOTE PHYSICAL ACTIVITY AND FITNESS THROUGH PROGRAM SPONSORSHIPS -COLLABORATE WITH COMMUNITY ORGANIZATIONS TO SUPPORT NEWLY DIAGNOSED DIABETICS WITH TOOLS AND INFORMATION TO MANAGE THEIR DISEASE -SHARE CLINICAL AND ORGANIZATIONAL EXPERTISE, INCLUDING RESEARCH FROM THE GROUP HEALTH RESEARCH INSTITUTE, ABOUT THE PREVENTION, DETECTION, AND MANAGEMENT OF DIABETES AND CARDIOVASCULAR DISEASE, INCLUDING BEST PRACTICES AND EVIDENCE-BASED GUIDELINES PART V, LINE 16 GROUP HEALTH COOPERATIVE'S FAP IS WIDELY AVAILABLE AT WWW1.GHC.ORG/HTML/PUBLIC/CUSTOMER-SERVICE/FINANCIAL-ASSISTANCE. PART V, LINE 22D GROUP HEALTH BILLING IS BASED ON USUAL, CUSTOMARY AND REASONABLE (UCR) CHARGES FOR THE GEOGRAPHIC AREA, WITH CONSIDERATION OF ACTUAL AVERAGE COSTS OF CARE PROVIDED BY GROUP HEALTH TO ALL PATIENTS. MAXIMUM CHARGES FOR FAP-ELIGIBLE INDIVIDUALS ARE NO MORE THAN THE AMOUNTS GENERALLY BILLED TO INSURED PATIENTS FOR EMERGENCY OR MEDICALLY NECESSARY CARE. FURTHER, CHARGES TO ELIGIBLE INDIVIDUALS FOR ANY OTHER CARE ARE LESS THAN THE GROSS CHARGES FOR THAT CARE. 48 CAPITOL HILL EAST BUILDING 1600 E JOHN ST SEATTLE WA 981125260 MEDICAL CLINIC CAPITOL HILL NORTH BUILDING 310 15TH AVE E SEATTLE WA 981125260 MEDICAL CLINIC CAPITOL HILL SOUTH BUILDING 125 16TH AVE E SEATTLE WA 981125260 MEDICAL CLINIC CAPITOL HILL WEST BUILDING 201 16TH AVE E SEATTLE WA 981125260 MEDICAL CLINIC CAPITOL HILL ANNEX BUILDING 122 16TH AVE E SEATTLE WA 981125260 MEDICAL CLINIC BELLEVUE MEDICAL CENTER 11511 NE 10TH STREET BELLEVUE WA 98004 MEDICAL CENTER BREMERTON BEHAVIORAL HEALTH SERVICES 555 PACIFIC AVE STE 202 BREMERTON WA 98337 BEHAVIORAL HEALTH CLINIC BREMERTON MEDICAL CENTER 2741 WHEATON WAY SUITE A BREMERTON WA 98310 MEDICAL CENTER EVERETT MEDICAL CENTER 2930 MAPLE STREET EVERETT WA 982014261 MEDICAL CENTER DOWNTOWN SEATTLE MEDICAL CENTER 1420 5TH AVE STE 375 SEATTLE WA 98101 MEDICAL CENTER FACTORIA MEDICAL CENTER 13451 SE 36TH STREET BELLEVUE WA 980061454 MEDICAL CENTER KENT MEDICAL CENTER 26004 104TH AVE SE KENT WA 98031 MEDICAL CENTER LIDGERWOOD MEDICAL CENTER 6002 N LIDGERWOOD SPOKANE WA 99208 MEDICAL CENTER LYNNWOOD MEDICAL CENTER 20200 54TH AVENUE W LYNNWOOD WA 980366389 MEDICAL CENTER NORTHGATE MEDICAL CENTER 9800 4TH AVENUE NE SEATTLE WA 981152158 MEDICAL CENTER NORTHGATE SOUTH BUILDING 9720 4TH AVENUE NE SEATTLE WA 98115 MEDICAL CLINIC NORTHSHORE MEDICAL CENTER 11913 NE 195TH STREET BOTHELL WA 980113147 MEDICAL CENTER OLYMPIA MEDICAL CENTER 700 LILLY ROAD NE OLYMPIA WA 985065196 MEDICAL CENTER PORT ORCHARD MEDICAL CENTER 1400 POTTERY AVENUE PORT ORCHARD WA 983663768 MEDICAL CENTER POULSBO MEDICAL CENTER 19379 7TH AVENUE NE POULSBO WA 98370 MEDICAL CENTER PUYALLUP MEDICAL CENTER 611 31ST AVE SW PUYALLUP WA 98374 MEDICAL CENTER RAINIER MEDICAL CENTER 5316 RAINIER AVE S SEATTLE WA 981182398 MEDICAL CENTER REDMOND MEDICAL CENTER 15809 BEAR CREEK PARKWAY SUITE 10 REDMOND WA 980524370 MEDICAL CENTER RENTON MEDICAL CENTER 275 BRONSON WAY NE RENTON WA 980564099 MEDICAL CENTER BURIEN MEDICAL CENTER 140 SW 146TH STREET BURIEN WA 981661997 MEDICAL CENTER RIVERFRONT MEDICAL CENTER 322 W NORTH RIVER DRIVE SPOKANE WA 99201 MEDICAL CENTER SILVERDALE MEDICAL CENTER 10452 SILVERDALE WAY NW SILVERDALE WA 98383 MEDICAL CENTER SOUTH HILL MEDICAL CENTER 4102 S REGAL STREET SUITE 101 SPOKANE WA 992234733 MEDICAL CENTER SILVERDALE EYE CARE SERVICES 10516 SILVERDALE WAY NW SUITE 104 SILVERDALE WA 983838745 MEDICAL CLINIC TACOMA HEAR CENTERAUDIOLOGY & EYE CARE 5821 S SPRAGUE COURT TACOMA WA 98409 MEDICAL CLINIC ST JOSEPH 1708 S YAKIMA AVENUE TACOMA WA 98405 MEDICAL CLINIC TACOMA MEDICAL CENTER 209 MARTIN LUTHER KING JR WAY TACOMA WA 984054267 MEDICAL CENTER TACOMA SOUTH MEDICAL CENTER 9505 S STEELE ST TACOMA WA 984446858 MEDICAL CENTER VERADALE MEDICAL CENTER 14402 E SPRAGUE AVENUE SPOKANE VALLEY WA 992162167 MEDICAL CENTER METROPOLITAN PARK EAST RESEARCH FACILITY 1730 MINOR AVENUE SEATTLE WA 98101 RESEARCH FACILITY TACOMA BEHAVIORAL HEALTH SERVICES 4301 S PINE STREET TACOMA WA 984097206 MEDICAL CLINIC FEDERAL WAY MEDICAL CENTER 301 SOUTH 320TH STREET FEDERAL WAY WA 980035296 MEDICAL CENTER CMA - SPOKANE BREAST CANCER 105 W 8TH AVE STE 122 SPOKANE WA 99204 MEDICAL CENTER CMA NEUROLOGY 610 S SHERMAN ST STE 208 SPOKANE WA 99202 MEDICAL CENTER CMA 6120 N MAYFAIR ST SPOKANE WA 99208 MEDICAL CENTER ASSOCIATED FAMILY PHYSICIANS-FAIRFIELD 210 MAIN ST FAIRFIELD WA 99012 MEDICAL CENTER ASSOCIATED FAMILY PHYSICIANS-SPOKANE 626 N MULLAN RD STE 16 SPOKANE WA 99206 MEDICAL CENTER SOUTH HILL FAMILY MEDICINE 3010 S SOUTHEAST BLVD STE A SPOKANE WA 992233540 MEDICAL CENTER CMA LIBERTY LAKE FAMILY MEDICINE 1334 N WHITMAN LN STE 200 LIBERTY LAKE WA 99019 MEDICAL CENTER CMA WESTVIEW FAMILY MEDICINE 1111 E WESTVIEW CT STE B SPOKANE WA 99218 MEDICAL CENTER FAMILY HEALTH CENTER 910 W 5TH AVE STE 600 SPOKANE WA 99204 MEDICAL CENTER CMA NORTH FAMILY MEDICINE 9631 N NEVADA ST STE 100 SPOKANE WA 99218 MEDICAL CENTER COLUMBIA DIAGNOSTIC IMAGING SOUTH 3010 S SOUTHEAST BLVD STE D SPOKANE WA 99223 MEDICAL CENTER PART I, LINE 7(F) PERCENT OF TOTAL EXPENSE BAD DEBT EXPENSE IS INCLUDED ON FORM 990, PART IX LINE 25, COLUMN (A), BUT SUBTRACTED FOR PURPOSES OF CALCULATING THE PERCENTAGE FOR PART I, LINE 7, COLUMN (F). PART I, LINE 7 PERCENT OF TOTAL EXPENSE COST TO CHARGE RATIO DERIVED FROM WORKSHEET 2, RATIO OF PATIENT CARE COST TO CHARGES, WAS USED TO REPORT THE FOLLOWING COMMUNITY BENEFIT EXPENSES: CHARITY CARE AT COST UNREIMBURSED COSTS-OTHER-MEANS TESTED GOVERNMENT PROGRAMS (HEALTHCARE ASSISTANCE) GROUP HEALTH UTILIZED THE STATUTORY LINE OF BUSINESS REPORT AND OTHER INTERNAL REPORTS, THAT PROVIDE DETAILED REVENUE AND EXPENSE BY LINE OF BUSINESS USING THE INCOME STATEMENT AND COST MANAGEMENT DATA (CMD) EXPENSE AND UTILIZATION INFORMATION. ON A MONTHLY BASIS, ALL GAAP GENERAL LEDGER EXPENSES ARE LOADED INTO THE CMD COSTING SYSTEM AT THE ACCOUNTING UNIT (AU) AND ACCOUNT LEVEL ALONG WITH PATIENT UTILIZATION INFORMATION FROM VARIOUS UTILIZATION SYSTEMS. EACH AU IS CATEGORIZED WITHIN CMD AS ONE OF THREE TYPES OF EXPENSES: 1) DELIVERY SYSTEM REPRESENTING MEDICAL SERVICES PROVIDED TO CONSUMERS; 2) HEALTH PLAN REPRESENTING INSURANCE SERVICES; OR 3) OVERHEAD REPRESENTING ADMINISTRATIVE SUPPORT SERVICES TO BOTH DELIVERY SYSTEM AND HEALTH PLAN. OVERHEAD IS ALLOCATED TO EITHER DELIVERY SYSTEM OR HEALTH PLAN USING A STEP DOWN PROCESS BASED ON RELEVANT STATISTICS SUCH AS NUMBER OF FTES, LABOR COST, SQUARE FEET, ETC. THE OVERHEAD ALLOCATION PERCENTAGE BETWEEN DELIVERY SYSTEM AND HEALTH PLAN ARE DETERMINED AND MAINTAINED BY THE CMD COSTING AND COSTING METHODOLOGY REVIEW TEAM. PART II, COMMUNITY BUILDING IN 2015, GROUP HEALTH MADE SIGNIFICANT CONTRIBUTIONS TO THE COMMUNITY, BOTH FINANCIAL AND THROUGH STAFF VOLUNTEER EFFORTS. GROUP HEALTH PLAYED A KEY ROLE IN THE SEATTLE/KING COUNTY CLINIC WHICH PROVIDED FREE DENTAL, VISION, AND MEDICAL SERVICES TO MORE THAN 4,000 PATIENTS. IN ADDITION TO THE 148 STAFF VOLUNTEERS, GROUP HEALTH PROVIDED NEARLY $128,000 IN LAB SERVICES VALUE FOR THE 4-DAY CLINIC, ALONG WITH 1,700 FLU SHOTS AND MEDICAL SUPPLIES. THROUGHOUT THE YEAR, GROUP HEALTH PROVIDED FREE LAB SERVICES TO THE OLYMPIA FREE CLINIC. CARE PROVIDERS FROM THE CLINIC ARE ABLE TO REFER PATIENTS TO THE NEARBY GROUP HEALTH MEDICAL CENTER IN OLYMPIA FOR LAB DRAWS AND THE RESULTS WERE RETURNED TO THE CLINIC. GROUP HEALTH CONTINUES TO PROVIDE FINANCIAL SUPPORT TO FURTHER THE IMPORTANT WORK OF PUBLIC ORGANIZATIONS IN OUR SERVICE AREA INCLUDING THE PUGET SOUND BLOOD CENTER, SKAGIT COUNTY PUBLIC HEALTH, THE CRISIS CLINIC, KING COUNTY PUBLIC HEALTH, COUNTRY DOCTOR, THE NORTHWEST CENTER, YOUTHCARE, PROJECT ACCESS NW AND PROJECT ACCESS PIERCE COUNTY, THE KING COUNTY SEXUAL ASSAULT RESOURCE CENTER, AND SENIOR SERVICES OF KING AND SNOHOMISH COUNTIES. GROUP HEALTH SUPPORTED ECONOMIC AND WORKFORCE DEVELOPMENT EFFORTS THROUGH SUPPORT FOR THE ECONOMIC OPPORTUNITY INSTITUTE, THE ALLIANCE FOR EDUCATION, THE GREATER SEATTLE BUSINESS ASSOCIATION, THE SEATTLE CHAMBER OF COMMERCE, THE WASHINGTON ROUNDTABLE, THE BELLEVUE DOWNTOWN ASSOCIATION AND THE BELLEVUE COLLEGE FOUNDATION TO HELP FOSTER OPPORTUNITIES FOR EDUCATION. IN THE AREA OF COMMUNITY HEALTH IMPROVEMENT ADVOCACY, GROUP HEALTH SUPPORTED THE HUMAN RIGHTS CAMPAIGN WHICH HELPS PASS LEGISLATION THAT PROMOTES EQUALITY IN THE WORKPLACE. GROUP HEALTH PROVIDES COMMUNITY SUPPORT THROUGH OUR SPONSORSHIPS OF MANY ORGANIZATIONS WHICH HOST ACTIVITIES AND EVENTS THAT SUPPORT HEALTHY LIVING, SPECIFICALLY PHYSICAL ACTIVITY, HEALTHY EATING, AND CHRONIC DISEASE MANAGEMENT. GROUP HEALTH SUPPORTS A WIDE RANGE OF COMMUNITY ORGANIZATIONS AND ACTIVITIES SUCH AS CASCADE BICYCLE CLUB'S SEATTLE-TO-PORTLAND BICYCLE CLASSIC, THE MAJOR TAYLOR YOUTH DEVELOPMENT CYCLING PROGRAM, THE AMERICAN HEART ASSOCIATION DIABETIC COOKING CLASSES, THE SEATTLE STORM'S SUMMER BASKETBALL CAMPS, BLOOMSDAY ROAD RACE TRAINING CLINICS, THE KING COUNTY PARKS DIVISION BIG BACKYARD AND YMCA'S HEALTHY KIDS DAY WHICH PROVIDED OVER 3,000 KIDS BIKE HELMETS FREE OF CHARGE IN 20 DIFFERENT YMCAS ACROSS THE STATE. PART III, LINE 2, BAD DEBT EXPENSE METHODOLOGY BAD DEBT IS RECORDED WHEN A PATIENT DOES NOT SETTLE THE BILL FOR SERVICES AND THE ACCOUNT IS ASSIGNED TO THE EXTERNAL COLLECTION AGENCY. BAD DEBT ASSIGNMENTS INCLUDE: STANDARD: PATIENTS/GUARANTORS WHO DO NOT PAY FOR LEGITIMATE SERVICES AFTER 3 STATEMENTS AND A DELINQUENCY LETTER EXCEPTIONS TO STANDARD: -PATIENTS/GUARANTORS WHOSE MAIL IS RETURNED TO GROUP HEALTH AND WHO CANNOT BE CONTACTED -PATIENTS/GUARANTORS WHO DECLARE BANKRUPTCY -DECEASED PATIENTS/GUARANTORS -PATIENTS/GUARANTORS WHO FAIL TO MEET THE REQUIREMENTS OF A NEGOTIATED PAYMENT ARRANGEMENTS THE FOLLOWING IS THE BAD DEBT POLICY IN PLACE DURING THE 2015 TAX YEAR: IF NO PAYMENT IS RECEIVED, AND THE BALANCE IS AT LEAST 45 DAYS AFTER THE 3RD CYCLE BILL DATE AND NOT MORE THAN 105 DAYS FROM THE FIRST STATEMENT DATE, STANDARD BALANCES ARE SYSTEMATICALLY REFERRED TO THE COLLECTION EXTERNAL AGENCY AND WRITTEN OFF TO BAD DEBT EXPENSE. EXCEPTIONS TO STANDARD BAD DEBT ACCOUNTS, INCLUDING RETURNED MAIL, LAPSED PAYMENT ARRANGEMENTS, DECEASED PATIENTS AND BANKRUPTCIES ARE MANUALLY ASSIGNED TO BAD DEBT EXPENSE AND FORWARDED TO THE COLLECTION AGENCY. COLLECTION AGENCY IS INSTRUCTED TO NOT REPORT ACCOUNTS TO THE CREDIT BUREAUS UNTIL AFTER THE FIRST 3 MONTHS OF COLLECTION ACTIVITY. JUSTIFICATION FOR MANUALLY ASSIGNED (NON STANDARD) BAD DEBT WRITE-OFFS IS RECORDED IN THE PATIENT'S ELECTRONIC BILLING RECORD. STAFF MEMBERS ARE AUTHORIZED TO REVERSE THE DECISION TO REFER AN ACCOUNT TO A COLLECTION AGENCY WHEN A MISTAKE IS DISCOVERED THAT CAUSED THE ASSIGNMENT TO BE MADE IN ERROR OR WHEN NEW INFORMATION ABOUT INSURANCE COVERAGE IS RECEIVED. AT ANY TIME DURING THE BILLING CYCLES, FINANCIAL ASSISTANCE MAY BE OFFERED BY GROUP HEALTH TO ANY PATIENT WHO INDICATES A CONCERN ABOUT SETTLING THE BALANCE. AFTER BAD DEBT ASSIGNMENT, FINANCIAL ASSISTANCE IS OFFERED IF PATIENT STATES THEY CANNOT PAY. PATIENTS MUST SUBMIT REQUIRED DOCUMENTATION OF NEED WHICH WILL BE REVIEWED TO DETERMINE IF THE ELIGIBILITY REQUIREMENTS ARE MET. IF APPROVED, THE APPROPRIATE BALANCES WILL BE TRANSFERRED TO THE GENERAL LEDGER ACCOUNT FOR FINANCIAL ASSISTANCE. PART III, LINE 4, BAD DEBT EXPENSE BAD DEBT EXPENSE IS DESCRIBED IN THE AUDITED FINANCIAL STATEMENT FOOTNOTES ON PAGE 9 UNDER SECTION (G) ACCOUNTS RECEIVABLE AND (H) PROVISION FOR UNCOLLECTIBLE ACCOUNTS AND RETROACTIVITY. PART III, LINE 8, MEDICARE SHORTFALL GROUP HEALTH FILES A LOW VOLUME MEDICARE COST REPORT WHICH INCLUDES ONLY STATISTICAL USAGE INFORMATION. THE LOW VOLUME REPORT DOES NOT INCLUDE THE PAYMENT FROM CMS OR COST INFORMATION FOUND IN FULL COST REPORTS. GROUP HEALTH USES INTERNAL MEDICARE CHARGE AND REVENUE INFORMATION TO COMPUTE A COST TO CHARGE RATIO FOR ITS CENTRAL HOSPITAL MEDICARE COSTS. GROUP HEALTH DOES NOT INCLUDE ANY MEDICARE SHORTFALL AS COMMUNITY BENEFIT. PART III, LINE 9, COLLECTION POLICY BAD DEBT EXPENSE IS RECOGNIZED WHEN A PATIENT WHO IS DETERMINED TO HAVE THE FINANCIAL CAPACITY TO PAY FOR SERVICES IS UNWILLING TO SETTLE THE BILL. STANDARD PRACTICE IS TO REFER ACCOUNTS FOR COLLECTION 45 DAYS AFTER THE THIRD BILLING CYCLE HAS PASSED WITHOUT PAYMENT. DURING EACH MONTH-END CLOSE THE BAD DEBT RESERVE AND EXPENSE ACCOUNTS ARE ADJUSTED UP OR DOWN BASED ON AN ANALYSIS OF THE ACCOUNTS RECEIVABLE AGING. EACH BILLING STATEMENT INCLUDES INFORMATION ON HOW PATIENTS CAN CONTACT GROUP HEALTH'S SPONSORED CARE DEPARTMENT TO INQUIRE ABOUT PAYMENT ASSISTANCE. AT ANY POINT IN THE BILLING PROCESS WHEN THE PATIENT INFORMS GROUP HEALTH THEY ARE UNABLE TO PAY, THEY ARE SCREENED FOR LIKELY ELIGIBILITY FOR FINANCIAL ASSISTANCE AND SENT A FINANCIAL ASSISTANCE APPLICATION, WHICH COLLECTS INCOME AND OTHER FINANCIAL INFORMATION. IF A PATIENT IS ELIGIBLE FOR FREE OR DISCOUNTED CARE, THE CHARGES ARE WRITTEN OFF AS ADJUSTMENTS TO REVENUE AND NOT RECOGNIZED AS BAD DEBT. THE COLLECTIONS PROCESS IS TERMINATED. PART VI, LINE 2, NEEDS ASSESSMENT GROUP HEALTH CONDUCTED A COMMUNITY HEALTH NEEDS ASSESSMENT FOR THE 3-YEAR PERIOD OF 2013-2015. BASED ON THE RESULTS OF THE CHNA, GROUP HEALTH IDENTIFIED THREE HEALTH NEEDS THAT COULD BE MOST EFFECTIVELY ADDRESSED GIVEN OUR RESOURCES AND EXPERTISE: IMPROVING ACCESS TO CARE, INCREASING PHYSICAL ACTIVITY AND HEALTHY EATING AND MANAGING CHRONIC DISEASES, ESPECIALLY DIABETES AND CARDIOVASCULAR DISEASE. THIS IMPLEMENTATION STRATEGY WAS APPROVED BY THE BOARD OF TRUSTEES IN 2013 AND OVER THE NEXT 3 YEARS, GROUP HEALTH'S COMMUNITY ENGAGEMENT FOCUSED ON SUPPORT FOR INITIATIVES, PROGRAMS AND SERVICES THAT ADDRESSED THE HEALTH OF OUR COMMUNITIES, PARTICULARLY IN THESE AREAS. IN ADDITION, GROUP HEALTH LEADERS WITH THE SUPPORT OF THE ORGANIZATION CONTINUE TO SERVE ON A NUMBER OF COALITIONS, COLLABORATIVES AND BOARDS TO ASSESS AND IMPROVE THE HEALTH OF THE COMMUNITIES WE SERVE. THESE INCLUDE THE WASHINGTON VACCINE ASSOCIATION, THE HEALTH INNOVATION LEADERSHIP NETWORK, THE PUGET SOUND HEALTH ALLIANCE, KING COUNTY HOSPITALS FOR A HEALTHIER COMMUNITY, THE BREE COLLABORATIVE, HEALTHIER WASHINGTON, VAX NW, U.S. PREVENTIVE SERVICES TASK FORCE, COMMUNITY HEALTH ADVISORY COMMITTEE, BOYS AND GIRLS CLUBS, YMCA, ALLIANCE FOR EDUCATION, AND THE WASHINGTON ACCOUNTABLE COMMUNITIES OF HEALTH (ACH'S) TO NAME A FEW. GROUP HEALTH PARTICIPATES IN THESE POLICY, ADVOCACY AND TRANSFORMATION EFFORTS TO ENSURE GREATER ACCESS TO ADDRESS THE NEEDS OF THE COMMUNITY AND STATE POPULATIONS AND TO ENSURE EQUITY AND ACCESS FOR OUR LOW INCOME POPULATIONS. SOME OF THESE GROUPS BRING TOGETHER DELIVERY SYSTEMS, STATE AND CITY GOVERNMENT AND HOSPITALS AND INSURERS TO ADDRESS ENTRENCHED ISSUES THAT CANNOT BE TACKLED BY ANY ONE ENTITY ALONE. PART VI, LINE 3, PATIENT EDUCATION OF ELIGIBILITY FOR ASSISTANCE GROUP HEALTH'S FINANCIAL ASSISTANCE PROGRAM, ALSO REFERRED TO AS THE CHARITY CARE PROGRAM, IS FOR MEMBERS OR NON-MEMBERS OF GROUP HEALTH. PATIENTS SEEKING HOSPITAL SERVICES AT GROUP HEALTH CENTRAL HOSPITAL OR ANOTHER STATE-LICENSED HOSPITAL WHEN SERVICES ARE DELIVERED BY A GROUP HEALTH PROVIDER, WHO HAVE INCOMES AT OR BELOW 200% OF THE FEDERAL POVERTY LEVEL (FPL) ARE ELIGIBLE FOR CHARITY CARE ASSISTANCE. GROUP HEALTH INFORMS PATIENTS ABOUT SPONSORED CARE AS FOLLOWS: 1. GROUP HEALTH DISPLAYS SIGNS AT ALL OF ITS HOSPITAL SERVICES CHECK-IN DESKS INFORMING PATIENTS THAT THEY MAY BE ELIGIBLE FOR FREE CARE. HARD COPIES OF OUR FINANCIAL ASSISTANCE POLICY ONE-PAGE PLAIN LANGUAGE SUMMARY AND CHARITY CARE APPLICATION FORM ARE AVAILABLE AT EACH HOSPITAL SERVICE LOCATION IN PLAIN SIGHT WITHOUT NEEDING TO ASK STAFF. 2. GROUP HEALTH HOSPITAL URGENT CARE, BUSINESS OFFICE, INFORMATION DESK AND HOSPITAL SERVICES CHECK-IN STAFF PROVIDE FINANCIAL INFORMATION AND APPLICATION FORMS UPON REQUEST TO PATIENTS SEEKING CHARITY CARE OR HEALTH CARE ASSISTANCE AT THE TIME OF REGISTRATION FOR SERVICES. 3. AS PART OF THEIR STANDARD OPERATING PROCEDURES, CLINICAL, CUSTOMER SERVICE AND PATIENT BILLING STAFF THROUGHOUT GROUP HEALTH ARE ABLE TO PROVIDE INFORMATION ABOUT AND ASSISTANCE WITH PATIENT QUALIFICATION FOR SPONSORED CARE PROGRAMS AT THE TIME OF SERVICE OR VIA TELEPHONE. 4. ADMINISTRATIVE AND BILLING OFFICE STAFF AT ALL 25 GROUP HEALTH MEDICAL CENTERS PROVIDE PATIENTS WITH SPONSORED CARE APPLICATIONS AND/OR THE CHARITY CARE FINANCIAL ASSISTANCE POLICY UPON REQUEST AT THE TIME OF SERVICE. 5. THERE IS A STANDARD NOTICE ON ALL GROUP HEALTH BILLS FOR PATIENT CARE WHICH STATES THAT THE PATIENT MAY BE ELIGIBLE FOR FINANCIAL ASSISTANCE AND PROVIDES CONTACT INFORMATION FOR ASSISTANCE. THE HEALTH CARE ASSISTANCE PROGRAM IS FOR ENROLLEES SEEKING ANY MEDICAL CARE OR SERVICE AT A GROUP HEALTH FACILITY AND WHO ARE AT OR BELOW 250% FPL. HEALTH CARE ASSISTANCE IS A SHORT-TERM PROGRAM PROVIDING ASSISTANCE WITH INPATIENT AND OUTPATIENT FEES, COPAYS, PRESCRIPTION COSTS, GLASSES AND HEARING AIDS. IN Q4 2015, GROUP HEALTH COMPLETED WORK AND IMPLEMENTED CHANGES INTRODUCED IN THE CODE OF FEDERAL REGULATIONS 26 CFR 1.501(R). PART VI, LINE 4, COMMUNITY INFORMATION GROUP HEALTH'S SERVICE AREAS INCLUDE ALL OR PART OF 20 COUNTIES IN WASHINGTON AND 2 COUNTIES IN IDAHO. BETWEEN 2010 AND 2015, THE MINORITY POPULATION OF WASHINGTON GREW FROM 27% TO 30%. COUNTIES IN THE GROUP HEALTH SERVICE AREA WITH THE HIGHEST PERCENTAGE OF NONWHITE RESIDENTS ARE FRANKLIN (59%), YAKIMA (56%), KING (46%), AND PIERCE (32%). THE HIGHEST SHARES OF HISPANIC POPULATION ARE IN FRANKLIN COUNTY (65%) AND YAKIMA COUNTY (49%). IN THE GROUP HEALTH SERVICE AREA, THE COUNTIES WITH THE HIGHEST CONCENTRATIONS OF MINORITY POPULATION BY RACE ARE ASIAN: KING (16%), BLACK: PIERCE (7%), AMERICAN INDIAN/ALASKA NATIVE: YAKIMA (6%), NATIVE HAWAIIAN/OTHER PACIFIC ISLANDER: PIERCE (2%). IN 2015, AN ESTIMATED 51% OF WASHINGTON'S BLACK POPULATION AND 59% OF THE ASIAN POPULATION LIVED IN KING COUNTY (THE LARGEST AND MOST URBAN COUNTY IN THE STATE WHERE 12 OF GROUP HEALTH'S 25 MEDICAL CENTERS ARE LOCATED). THE RACIAL AND ETHNIC MAKEUP OF MEMBERS RECEIVING CARE AT GROUP HEALTH CLINICS IS WHITE (76%), ASIAN/PACIFIC ISLANDER (11%), BLACK (5%), AMERICAN INDIAN/ALASKA NATIVE (1%) AND OTHER/UNKNOWN (7%); 5% ARE HISPANIC. IN 2015, GROUP HEALTH COOPERATIVE AND ITS WHOLLY-OWNED SUBSIDIARIES, GROUP HEALTH OPTIONS, INC. AND KPS HEALTH PLANS, PROVIDED HEALTH CARE COVERAGE AND SERVICES TO APPROXIMATELY 593,000 INDIVIDUALS. GROUP HEALTH WAS ABLE TO REACH THESE INDIVIDUALS VIA INDIVIDUAL AND FAMILY, COMMERCIAL GROUP, FEDERAL EMPLOYEE HEALTH BENEFIT PLAN, PUBLIC EMPLOYEE BENEFIT BOARD PLAN (FOR WASHINGTON STATE EMPLOYEES), AND MEDICARE ADVANTAGE PLAN ENROLLEES. GROUP HEALTH EXTENDS ITS HEALTH CARE SERVICES TO THE COMMUNITY, PROVIDING CARE TO PEOPLE IN NEED REGARDLESS OF THEIR ENROLLMENT STATUS OR ABILITY TO PAY. SPECIAL ATTENTION IS DEVOTED TO UNDERSERVED, AT-RISK POPULATIONS. IN 2015, SPECIFICALLY RELATED TO LOW-INCOME INDIVIDUALS, GROUP HEALTH PROVIDED CARE TO APPROXIMATELY 25,000 APPLE HEALTH PLUS (WASHINGTON STATE-MANAGED MEDICAID) PATIENTS IN 6 COUNTIES AROUND THE STATE. THIS WAS ACCOMPLISHED THROUGH GROUP HEALTH CONTRACTING TO DELIVER HEALTH CARE SERVICES IN GROUP HEALTH OWNED AND OPERATED MEDICAL CENTERS TO PATIENTS ENROLLED IN MOLINA HEALTHCARE OF WASHINGTON'S PLAN. GROUP HEALTH, IN ADDITION, PROVIDED CARE TO MEDICAID FEE-FOR-SERVICE PATIENTS WHO WERE UNABLE TO ACCESS GROUP HEALTH THROUGH THE MANAGED MEDICAID PROGRAM. FINALLY, THE GROUP HEALTH TEEN PREGNANCY AND PARENTING CLINIC PROVIDES COMPREHENSIVE SERVICES TO WOMEN, INFANTS AND CHILDREN AND OTHER HEALTH CARE SERVICES TO BOTH ENROLLED GROUP HEALTH MEMBERS AND NON-ENROLLED LOW-INCOME TEENAGERS AND YOUNG ADULTS. IN 2015, THE TOTAL NUMBER OF PATIENT VISITS WAS 482. PART VI, LINE 5, PROMOTION OF COMMUNITY HEALTH GROUP HEALTH'S PRIMARY EXEMPT PURPOSE IS TO PROVIDE COMPREHENSIVE, PREVENTION-ORIENTED HEALTH CARE SERVICES. BENEFICIARIES OF THIS PURPOSE ARE GROUP HEALTH ENROLLEES AND NON-ENROLLED PATIENTS. GROUP HEALTH ALSO PROVIDES HEALTH IMPROVEMENT-RELATED EDUCATION AND INFORMATION, FINANCIAL AND OTHER SUPPORT TO COMMUNITY-BASED ORGANIZATIONS, WITH A FOCUS ON PREVENTION AND WELLNESS, AND CONDUCTS RESEARCH ACTIVITIES THAT BENEFIT THE BROADER COMMUNITY. TO FULFILL ITS PURPOSE, GROUP HEALTH PROVIDES OUTPATIENT PRIMARY AND SPECIALTY CARE AS WELL AS SOME INPATIENT ACUTE AND SUB-ACUTE CARE THROUGH THE SERVICES OF SALARIED PHYSICIANS, NURSES, AND OTHER HEALTH CARE PROVIDERS. THE SALARIED PHYSICIANS ARE EMPLOYED BY GROUP HEALTH PERMANENTE, P.C., AN ORGANIZATION WITH WHOM GROUP HEALTH HAS AN EXCLUSIVE CONTRACT. AS OF YEAR-END 2015, GROUP HEALTH OPERATED ONE HOSPITAL, 25 PRIMARY CARE MEDICAL CENTERS, SIX SPECIALTY CARE UNITS AND SEVEN BEHAVIORAL HEALTH CLINICS. GROUP HEALTH ALSO CONTRACTS WITH COMMUNITY HEALTH CARE PROVIDERS FOR SERVICES WHERE GROUP HEALTH DOES NOT OPERATE ITS OWN FACILITIES AND FOR MEDICAL SERVICES NOT PROVIDED AT GROUP HEALTH FACILITIES. GROUP HEALTH CONDUCTS PRACTICAL, PUBLIC DOMAIN RESEARCH TO IMPROVE HEALTH AND HEALTH CARE THROUGHOUT THE COMMUNITY AND NATION THROUGH THE GROUP HEALTH RESEARCH INSTITUTE (GHRI) INVESTING MORE THAN $45M IN 2015. SINCE GHRI'S INCEPTION IN 1983, GHRI INVESTIGATORS HAVE PUBLISHED MORE THAN 5,000 SCIENTIFIC PAPERS AND HAVE MADE MAJOR CONTRIBUTIONS TO EFFECTIVE CARE OF CHRONIC CONDITIONS SUCH AS DIABETES, BACK PAIN, CARDIOVASCULAR DISEASE, AND DEPRESSION. GHRI RESEARCHERS DEVELOP AND STUDY WAYS TO HELP THE POPULATION MAKE INFORMED MEDICAL DECISIONS, QUIT SMOKING, AND FIGHT OBESITY. GHRI ALSO SUPPORTS RESEARCH THAT IMPROVES THE SAFETY AND EFFICACY OF MEDICATIONS, IMMUNIZATIONS, MEDICAL IMAGING, AND CANCER SCREENING. WHILE RESEARCH GENERALLY TAKES A LONG TIME TO REACH AND INFLUENCE HEALTH CARE SYSTEMS (I.E. CLINICAL PRACTICE), GHRI PLACES A HIGH PRIORITY ON QUICKLY DISSEMINATING AND TRANSLATING ITS FINDINGS WITHIN GROUP HEALTH AND ACROSS OUR COMMUNITIES LOCALLY AND NATIONALLY. GHRI IS A GLOBALLY RECOGNIZED LEADER IN PREVENTIVE MEDICINE, HEALTHY AGING, WOMEN'S HEALTH, AND CANCER CONTROL, ALL USING CUTTING-EDGE DATA ANALYSIS AND HEALTH INFORMATION TECHNOLOGY. GHRI INVESTIGATORS ARE HELPING DEVELOP, EVALUATE AND DISSEMINATE EFFECTIVE MODELS OF CARE. IN ADDITION, GHRI'S CENTER FOR COMMUNITY HEALTH AND EVALUATION LEADS EVALUATIONS OF HEALTH-RELATED PROGRAMS AND INITIATIVES NATIONALLY, CONTRIBUTING TO IMPROVEMENTS IN HEALTH OUTCOMES FOR THE MYRIAD OF COMMUNITIES IT SERVES. THROUGH A PARTNERSHIP WITH KING COUNTY, GROUP HEALTH ALSO SUPPORTS 6 SCHOOL-BASED HEALTH CENTERS AT MIDDLE AND HIGH SCHOOLS IN THE SEATTLE PUBLIC SCHOOL DISTRICT. THIS INCLUDES HIRING NURSES AND NURSE PRACTITIONERS AND SUPPORTING THEIR CLINIC AND ADMINISTRATIVE NEEDS. THROUGH GRANTS, WE HAVE ALSO PROVIDED WRAP AROUND MENTAL HEALTH CARE IN 3 SCHOOL-BASED HEALTH CENTERS. THE SCHOOL-BASED CENTERS SERVED OVER 2,200 STUDENTS DURING OVER 10,700 VISITS IN 2015 AND ARE A HUGE BOOST TO THE HEALTH AND WELLNESS OF THE STUDENT COMMUNITY. GROUP HEALTH PARTNERS WITH PROJECT ACCESS, AN ORGANIZATION WHICH WORKS WITH MEDICAL PROVIDERS IN HEALTH CARE COMMUNITIES ACROSS THE COUNTRY TO PROVIDE MEDICAL CARE TO INDIVIDUALS THAT MEET COUNTY-SPECIFIC MEDICAL AND FINANCIAL ELIGIBILITY CRITERIA. GROUP HEALTH COORDINATES WITH PROJECT ACCESS TO PROVIDE CARE TO THESE PATIENTS AT DESIGNATED MEDICAL CENTERS AND SPECIALTY DEPARTMENTS. GROUP HEALTH SHARED EXPERTISE IN THE COMMUNITY BY DISSEMINATING INFORMATION ABOUT OUR ONLINE DIABETES MANAGEMENT CONTINUING MEDICAL EDUCATION (CME), HOSTING ONLINE A FREE CME ON THE TOPIC OF COLORECTAL CANCER SCREENING WHICH DREW NEARLY 50 PARTICIPANTS, AND "LIVE WELL, DIE WELL" A FREE COMMUNITY HEALTH PROGRAM IN SPOKANE. PART VI, LINE 6, AFFILIATED HEALTH CARE SYSTEM GROUP HEALTH COOPERATIVE IS ONE OF THE NATION'S LARGEST CONSUMER GOVERNED HEALTH CARE ORGANIZATIONS. GROUP HEALTH IS GOVERNED BY AN INDEPENDENT BOARD OF TRUSTEES COMPRISED OF 11 ENROLLED MEMBERS ALL OF WHOM RESIDE IN THE GROUP HEALTH SERVICE AREA AND ARE ELECTED BY GROUP HEALTH'S VOTING MEMBERSHIP. VOTING MEMBERSHIP IS OPEN TO ALL GROUP HEALTH ENROLLEES OVER THE AGE OF 18. GROUP HEALTH COOPERATIVE HAS A WHOLLY-OWNED SUBSIDIARY, THE GROUP HEALTH FOUNDATION, WHICH IS ALSO A 501(C)(3) ORGANIZATION. THE PURPOSE OF THE GROUP HEALTH FOUNDATION IS TO IMPROVE THE HEALTH OF COMMUNITIES IN PARTNERSHIP WITH GROUP HEALTH COOPERATIVE AND GROUP HEALTH RESEARCH INSTITUTE. GROUP HEALTH FOUNDATION INVESTS IN RESEARCH RELATED TO HEALTH CARE INNOVATION, QUALITY OUTCOMES AND COMMUNITY PARTNERSHIPS AND PROVIDES TECHNICAL ASSISTANCE AND GRANTS, AS WELL AS SPONSORING SPECIFIC PROGRAMS TO PROMOTE CHILDREN'S HEALTH AND FITNESS, PREVENTIVE CARE AND HEALTH EDUCATION AND DIVERSITY. THE GROUP HEALTH FOUNDATION IS CURRENTLY ENGAGED IN A MULTI-YEAR PROGRAM WITH ORGANIZATIONS AND SCHOOL-BASED PARTNERS IN COMMUNITIES ACROSS THE STATE TO ADDRESS THE EFFECTS OF PARENTAL HESITANCY ON LOW VACCINATION RATES OF WASHINGTON'S CHILDREN. THIS INCLUDES PROCURING AND PROVIDING VACCINES TO CHILDREN, AS WELL AS SPONSORING SOCIAL MARKETING AND OTHER ACTIVITIES TO INCREASE VACCINATION RATES IN WASHINGTON STATE. GROUP HEALTH COOPERATIVE HAS AN EXCLUSIVE CONTRACT WITH GROUP HEALTH PERMANENTE, P.C., A GROUP PRACTICE WITH NEARLY 1,000 SALARIED CLINICIANS. GROUP HEALTH PERMANENTE IS NOT UNDER COMMON GOVERNANCE OR CONTROL WITH GROUP HEALTH COOPERATIVE, BUT THE TWO ORGANIZATIONS COLLABORATE TO SERVE THE COMMUNITY. BOTH GROUP HEALTH COOPERATIVE AND GROUP HEALTH PERMANENTE STAFF PARTICIPATE AS FACULTY AND PRECEPTORS FOR RESIDENCY AND HEALTH PROFESSIONALS TRAINING PROGRAMS. IN ADDITION TO THE OPERATION OF A FAMILY PRACTICE RESIDENCY PROGRAM (FOR WHICH GROUP HEALTH PERMANENTE PHYSICIANS SERVE AS FACULTY) AND AN OPTOMETRY RESIDENCY IN 2 MEDICAL CENTER LOCATIONS, GROUP HEALTH COOPERATIVE AND GROUP HEALTH PERMANENTE PARTICIPATE IN THE TRAINING OF OVER A DOZEN MEDICAL SPECIALTIES AND AN ADDITIONAL 20+ MID-LEVEL AND NON-PHYSICIAN TRAINING PROGRAMS, INCLUDING THOSE FOR CRITICAL SHORTAGE PROFESSIONS SUCH AS NURSING, PHYSICAL THERAPY AND PHARMACY. THE RESIDENCY PROGRAM INCLUDES CLINICAL TRAINING AND THE PROVISION OF MEDICAL CARE FOR HOMELESS YOUTH AS WELL AS FOR SOME OF THE FREE CLINICS IN KING COUNTY. IN ADDITION TO THE ABOVE-MENTIONED PROGRAMS IN WASHINGTON STATE, IN 2015, GROUP HEALTH PHYSICIANS AND STAFF VOLUNTEERED MEDICAL SERVICES TO HOMELESS SHELTERS, COMMUNITY CLINICS AND OTHER RELIEF EFFORTS IN THE U.S. AND AROUND THE WORLD. AS AN INTEGRATED CARE ORGANIZATION AND ONE OF THE LARGEST PROVIDERS IN WASHINGTON STATE, GROUP HEALTH COOPERATIVE PURSUES INNOVATIVE NEW APPROACHES TO CARE. THIS HAS INCLUDED BEING A NATIONAL LEADER IN THE WIDESPREAD ADOPTION OF ELECTRONIC MEDICAL RECORDS, FOCUSING ON PREVENTION AND ADOPTING A PATIENT-CENTERED MEDICAL HOME MODEL OF CARE. GROUP HEALTH IS A FOUNDING MEMBER OF THE WASHINGTON HEALTH ALLIANCE WHOSE MISSION IS TO PROMOTE HEALTH AND IMPROVE THE QUALITY AND AFFORDABILITY OF THE HEALTH CARE SYSTEM BY REDUCING OVERUSE, UNDERUSE AND MISUSE OF HEALTH CARE SERVICES. THE ALLIANCE CONDUCTS COMMUNITY CHECKUPS AND ISSUES PUBLIC REPORTS ON PROVIDER QUALITY MEASURES. PHYSICIAN AND NON-PHYSICIAN LEADERS AT GROUP HEALTH ALSO CONTRIBUTE TO THE DISSEMINATION AND COMMUNITY-WIDE PRACTICE OF EVIDENCE-BASED MEDICINE AND OUTCOMES IMPROVEMENT BY SHARING CLINICAL GUIDELINES, QUALITY IMPROVEMENT EFFORTS AND PROTOCOLS RELATED TO SHARED DECISION-MAKING AND OTHER PATIENT ENGAGEMENT TOOLS, LEAN PROCESS IMPROVEMENTS IN CLINICAL CARE, THE MEDICAL HOME TEAM-BASED CARE MODEL, THE CHRONIC CARE MODEL, AND OTHER CARE INNOVATIONS. IN COLLABORATION WITH BARTELL DRUGS, GROUP HEALTH CURRENTLY STAFFS 10 CARECLINICS WITH GROUP HEALTH PHYSICIAN ASSISTANTS AND ADVANCED REGISTERED NURSE PRACTITIONERS. RETAIL-BASED WALK-IN MEDICAL CARE IS AVAILABLE SEVEN DAYS A WEEK FOR ANYONE AGED TWO AND OLDER, NOT JUST GROUP HEALTH MEMBERS. CLINICIANS CAN ASSESS AND ADDRESS A VARIETY OF COMMON AILMENTS, INCLUDING UPPER RESPIRATORY INFECTIONS; WARTS, RASHES AND SKIN ISSUES; PINKEYE OR CONJUNCTIVITIS; EAR INFECTIONS; URINARY TRACT INFECTIONS; AND BRONCHITIS. MOST VISITS ARE COVERED BY INSURANCE PLANS OR AN AFFORDABLE FEE WITHOUT INSURANCE. THE CARECLINIC LOCATIONS ALSO OFFER A VARIETY OF VACCINES AND IMMUNIZATIONS, AS WELL AS SPORT AND CAMP PHYSICALS. PART VI, LINE 7, STATE FILING OF COMMUNITY BENEFIT REPORT THIS QUESTION IS NOT APPLICABLE. X X true true X X X X X true true false false false false false false true true SCOTT ELLIOT ARMSTRONG PRESIDENT & CEO 1089910 0 1216485 0 193301 0 11800 0 26011 0 2537507 0 0 0 SARAH BARIAN YATES EVP & GENERAL COUNSEL 422725 0 165038 0 41497 0 5300 0 21021 0 655581 0 0 0 CHRISTOPHER KNACKSTEDT EVP; CHIEF FINANCIAL OFFICER 710106 0 270000 0 7670 0 69399 0 17717 0 1074892 0 0 0 RICK DALE WOODS EVP; SR ADVSR TO PRES/CEO 632393 0 794251 0 68880 0 27788 0 14345 0 1537657 0 0 0 BRETON CLARK MYERS VP; TREASURY 267943 0 95264 0 3578 0 29107 0 7394 0 403286 0 0 0 SUSAN S KOZIK EVP; CHIEF INFORMATION OFFICER 382835 0 125050 0 11522 0 43474 0 18218 0 581099 0 0 0 ERIN LEFF EVP; GROUP PRACTICE DIVISION 472350 0 122887 0 32182 0 5300 0 9304 0 642023 0 0 0 MARK SZALWINSKI EVP; GROUP PRACTICE DIVISION 645930 0 306625 0 162609 0 5300 0 0 0 1120464 0 0 0 ROBERT O'BRIEN EVP; HEALTH PLAN DIVISION 727661 0 390874 0 75072 0 0 0 18024 0 1211631 0 0 0 TAMI LAMP EVP; HR 315978 0 60000 0 4979 0 28859 0 16626 0 426442 0 0 0 DIANA BIRKETT RAKOW EVP; MARKETING & PUB. AFFAIRS 318213 0 127033 0 3608 0 34855 0 21090 0 504799 0 0 0 DAWN LOELIGER EVP; STRAT PLANNING & DEPLOY 315752 0 141026 0 5828 0 34187 0 21542 0 518335 0 0 0 GERARD FISHER VP; CLINICAL ANCILLARY SRVCS 307659 0 67570 0 6323 0 33100 0 14397 0 429049 0 0 0 BRIAN O'SHIELDS VP; CHIEF ACTUARY 332303 0 114125 0 3084 0 36052 0 20814 0 506378 0 0 0 DONALD LEWIS VP; CHIEF TECHNOLOGY OFFICER 304447 0 122279 0 132019 0 0 0 9424 0 568169 0 0 0 BARBARA TREHEARNE VP; CLIN EXCL &INT CHIEF NURSE 342678 0 121876 0 40644 0 0 0 15172 0 520370 0 0 0 ERIC LARSON VP; GROUP HEALTH RESEARCH INST 389601 0 111763 0 54377 0 0 0 15374 0 571115 0 0 0 DEBORAH HUNTINGTON VP; SALES 317379 0 122764 0 34814 0 0 0 20786 0 495743 0 0 0 CYNTHIA JOHNSON EVP; HR 323519 0 0 0 0 0 0 0 0 0 323519 0 0 0 BARBARA ANN BELT-LLOYD VP; CHIEF ACCOUNTING OFFICER 258950 0 93057 0 32228 0 0 0 18418 0 402653 0 0 0 FIRST CLASS TRAVEL SCHEDULE J, PART I, LINE 1A PER THE GROUP HEALTH EXPENSE REIMBURSEMENT POLICY, AIR TRAVEL IS TO BE BOOKED AT COACH CLASS UNLESS PRE-AUTHORIZED BY THE APPROVING MANAGER. THE COMPENSATION COMMITTEE OF THE BOARD OF GROUP HEALTH AUTHORIZED FIRST-CLASS TRAVEL FOR THE PRESIDENT/CEO DUE TO EXTENSIVE AMOUNT OF REQUIRED BUSINESS TRAVEL DURING 2015. FIRST CLASS TRAVEL EXPENSE IS NOT REPORTED AS TAXABLE COMPENSATION AS IT IS ONLY REIMBURSED WHEN INCURRED FOR BUSINESS PURPOSES. SOCIAL CLUB DUES SCHEDULE J, PART 1, LINE 1A ALL EMPLOYEES ARE RESPONSIBLE FOR FOLLOWING ALL OF GROUP HEALTH'S EXPENSE REIMBURSEMENT GUIDELINES AND BEING GOOD STEWARDS OF THE COMPANY'S RESOURCES. THE COMPANY WILL PAY FOR CERTAIN EXECUTIVES' SOCIAL CLUB DUES IF THE EXPENSE COMPLIES WITH THE EXPENSE REIMBURSEMENT POLICY AND THE BUSINESS EXPENSES ARE RELATED TO A LEGITIMATE BUSINESS PURPOSE AND ARE REASONABLE FOR THE SITUATION IN WHICH THEY WERE INCURRED. SOCIAL CLUB DUES ARE NOT TREATED AS TAXABLE COMPENSATION WHEN STRICTLY INCURRED FOR BUSINESS PURPOSES. SEVERANCE PAYMENT SCHEDULE J, PART 1, LINE 4A THE GROUP HEALTH PRESIDENT AND CEO IS A PARTY TO A WRITTEN EMPLOYMENT AGREEMENT WITH GROUP HEALTH COOPERATIVE THAT PROVIDES FOR SEVERANCE BENEFITS IN THE EVENT OF TERMINATION OF EMPLOYMENT UNDER CERTAIN CONDITIONS. THE EMPLOYMENT AGREEMENT IS APPROVED BY THE COMPENSATION COMMITTEE OF THE BOARD OF TRUSTEES. THE PRESIDENT AND CEO IS NOT ENTITLED TO SEVERANCE BENEFITS IF HE IS TERMINATED FOR CAUSE, OR IF HE ELECTS TO TERMINATE HIS EMPLOYMENT RELATIONSHIP WITHOUT CAUSE (MEANING HE VOLUNTARILY RESIGNS), EXCEPT FOR A RESIGNATION FOLLOWING CERTAIN CIRCUMSTANCES THAT AFFECT THE TERMS AND CONDITIONS OF HIS EMPLOYMENT AND CONSTITUTE GOOD REASON AS DEFINED IN THE AGREEMENT (SUCH AS CERTAIN REDUCTIONS IN COMPENSATION OR AUTHORITY, CERTAIN CHANGES IN REPORTING STRUCTURES, OR GROUP HEALTHS MATERIAL BREACH OF THE EMPLOYMENT AGREEMENT). EXCEPT IN THE EVENT OF AN ELIGIBLE TERMINATION OF EMPLOYMENT OCCURRING WITHIN TWENTY-FOUR (24) MONTHS AFTER A CHANGE OF CONTROL, MAXIMUM SEVERANCE PAYMENTS TO THE PRESIDENT AND CEO ARE IN A TOTAL AMOUNT EQUIVALENT TO EIGHTEEN (18) MONTHS OF BASE SALARY, PLUS MEDICAL AND DENTAL COVERAGE (AT THE SAME LEVEL PROVIDED AS OF THE DATE OF SEPARATION) FOR A MAXIMUM PERIOD OF EIGHTEEN (18) MONTHS; AND A PAYMENT EQUIVALENT TO THE PRESIDENT AND CEOS TARGET INCENTIVE COMPENSATION UNDER GROUP HEALTHS ANNUAL INCENTIVE COMPENSATION PLAN FOR THE YEAR IN WHICH THE TERMINATION OF EMPLOYMENT OCCURRED, PRO-RATED BASED ON THE PROPORTION OF THE YEAR DURING WHICH THE PRESIDENT AND CEO WAS EMPLOYED. IN THE EVENT OF AN ELIGIBLE TERMINATION OF EMPLOYMENT OCCURRING WITHIN TWENTY-FOUR (24) MONTHS FOLLOWING A CHANGE OF CONTROL OF GROUP HEALTH (AS DEFINED IN THE AGREEMENT), MAXIMUM SEVERANCE PAYMENTS TO THE PRESIDENT AND CEO ARE IN A TOTAL AMOUNT EQUIVALENT TO MONTHLY BASE SALARY PLUS ONE-TWELFTH OF THE PRESIDENT AND CEOS TARGET INCENTIVE COMPENSATION UNDER GROUP HEALTHS ANNUAL INCENTIVE COMPENSATION PLAN, PAYABLE FOR TWENTY-FOUR (24) MONTHS, PLUS MEDICAL AND DENTAL COVERAGE (AT THE SAME LEVEL PROVIDED AS OF THE DATE OF SEPARATION) FOR A MAXIMUM EIGHTEEN (18) MONTHS); A PAYMENT EQUIVALENT TO THE PRESIDENT AND CEOS TARGET INCENTIVE COMPENSATION UNDER GROUP HEALTHS ANNUAL INCENTIVE COMPENSATION PLAN FOR THE YEAR IN WHICH THE TERMINATION OF EMPLOYMENT OCCURRED, PRO-RATED BASED ON THE PROPORTION OF THE YEAR DURING WHICH GROUP HEALTH EMPLOYED THE PRESIDENT AND CEO; AND PAYMENT OF UP TO $20,000 IN OUTPLACEMENT SERVICES EXPENSES INCURRED BY THE PRESIDENT AND CEO. IN ADDITION, THE PRESIDENT AND CEOS EMPLOYMENT AGREEMENT PROVIDES FOR ADDITIONAL SEVERANCE PAYMENTS IN THE FORM OF (1) A PAYMENT OF 15.3 PERCENT OF BASE SALARY EARNED DURING THE YEAR THAT TERMINATION OCCURS (IN LIEU OF A CONTRIBUTION TO GROUP HEALTHS SUPPLEMENTAL EXECUTIVE RETIREMENT PLAN FOR SUCH YEAR); AND (2) A PAYMENT EQUIVALENT TO THE PRESIDENT AND CEOS TARGET INCENTIVE COMPENSATION UNDER THE ORGANIZATIONS LONG-TERM INCENTIVE COMPENSATION PLAN WITH RESPECT TO PERFORMANCE CYCLES UNDER THE PLAN THAT WERE UNCOMPLETED AS OF THE DATE OF TERMINATION, PRO-RATED BASED ON THE PROPORTION OF THE CYCLE(S) DURING WHICH GROUP HEALTH EMPLOYED THE PRESIDENT AND CEO. THE PRESIDENT AND CEO MUST SIGN A RELEASE ACCEPTABLE TO GROUP HEALTH AS A CONDITION OF RECEIVING SEVERANCE BENEFITS. FURTHER, ALL SEVERANCE BENEFITS WILL CEASE IF THE PRESIDENT AND CEO VIOLATES THE TERMS OF THE NON-COMPETITION, NON-SOLICITATION, NON-DISPARAGEMENT, CONFIDENTIALITY OR COOPERATION COMMITMENTS IN HIS EMPLOYMENT AGREEMENT. SEVERANCE BENEFITS ARE PROVIDED TO EXECUTIVE VICE PRESIDENTS AND VICE PRESIDENTS IN THE EVENT OF TERMINATION OF EMPLOYMENT UNDER CERTAIN CONDITIONS PURSUANT TO A WRITTEN EXECUTIVE SEVERANCE PLAN, WHICH IS APPROVED BY THE COMPENSATION COMMITTEE OF THE BOARD OF TRUSTEES. UNDER THE PLAN, EXECUTIVES WHO ARE TERMINATED FOR CAUSE, OR WHO ELECT TO TERMINATE THEIR EMPLOYMENT RELATIONSHIP WITHOUT CAUSE (MEANING THEY VOLUNTARILY RESIGN), ARE NOT ENTITLED TO SEVERANCE BENEFITS EXCEPT FOR RESIGNATIONS THAT OCCUR WITHIN EIGHTEEN (18) MONTHS AFTER A CHANGE OF CONTROL OF GROUP HEALTH (AS DEFINED IN THE PLAN) AND FOLLOW CERTAIN CIRCUMSTANCES AFFECTING TERMS AND CONDITIONS OF THE EXECUTIVES EMPLOYMENT THAT CONSTITUTE GOOD REASON AS DEFINED IN THE PLAN (SUCH AS CERTAIN REDUCTIONS IN COMPENSATION OR AUTHORITY, CERTAIN RELOCATIONS OF THE PRIMARY WORK LOCATION, OR GROUP HEALTHS MATERIAL BREACH OF THE EXECUTIVES EMPLOYMENT AGREEMENT). IN ADDITION, EXECUTIVES ARE NOT ENTITLED TO SEVERANCE BENEFITS IF THEY ARE OFFERED A COMPARABLE POSITION (AS DEFINED BY THE PLAN) BEFORE THE TERMINATION OF THEIR EMPLOYMENT. EXCEPT FOR ELIGIBLE TERMINATIONS OCCURRING WITHIN EIGHTEEN (18) MONTHS AFTER A CHANGE OF CONTROL, MAXIMUM SEVERANCE PAYMENTS TO EXECUTIVE VICE PRESIDENTS AND VICE PRESIDENTS ARE IN A TOTAL AMOUNT EQUIVALENT TO TWELVE (12) MONTHS OF BASE SALARY, PLUS MEDICAL AND DENTAL COVERAGE (AT THE SAME LEVEL PROVIDED AS OF THE DATE OF SEPARATION) FOR A MAXIMUM PERIOD OF TWELVE (12) MONTHS, PLUS PAYMENT OF UP TO $10,000 IN OUTPLACEMENT SERVICES EXPENSES INCURRED BY THE EXECUTIVE. IN THE EVENT OF AN ELIGIBLE TERMINATION OF EMPLOYMENT OCCURRING WITHIN EIGHTEEN (18) MONTHS AFTER A CHANGE OF CONTROL OF GROUP HEALTH (AS DEFINED IN THE PLAN), MAXIMUM SEVERANCE PAYMENTS FOR THE EXECUTIVE VICE PRESIDENTS AND VICE PRESIDENTS ARE IN A TOTAL AMOUNT EQUIVALENT TO THE MONTHLY BASE SALARY PLUS ONE-TWELFTH OF THE EXECUTIVES TARGET INCENTIVE COMPENSATION UNDER GROUP HEALTHS ANNUAL INCENTIVE COMPENSATION PLAN), PAYABLE FOR TWELVE (12) MONTHS FOR VICE PRESIDENTS AND EIGHTEEN (18) MONTHS FOR EXECUTIVE VICE PRESIDENTS, PLUS MEDICAL AND DENTAL COVERAGE (AT THE SAME LEVEL PROVIDED AS OF THE DATE OF SEPARATION) FOR A MAXIMUM OF TWELVE (12) MONTHS (EIGHTEEN (18) MONTHS FOR EXECUTIVE VICE PRESIDENTS); A PAYMENT EQUIVALENT TO THE EXECUTIVES TARGET INCENTIVE COMPENSATION UNDER GROUP HEALTHS ANNUAL INCENTIVE COMPENSATION PLAN FOR THE YEAR IN WHICH THE TERMINATION OF EMPLOYMENT OCCURRED, PRO-RATED BASED ON THE PROPORTION OF THE YEAR DURING WHICH THE EXECUTIVE WAS EMPLOYED; AND PAYMENT OF UP TO $10,000 IN OUTPLACEMENT SERVICE EXPENSES INCURRED BY THE EXECUTIVE. A VICE PRESIDENT OR EXECUTIVE VICE PRESIDENT MUST SIGN A RELEASE ACCEPTABLE TO GROUP HEALTH AS A CONDITION OF RECEIVING SEVERANCE BENEFITS. FURTHER, ALL SEVERANCE BENEFITS WILL CEASE IF THE EXECUTIVE IS HIRED AS AN EMPLOYEE OF GROUP HEALTH OR A PURCHASER OF GROUP HEALTH (OR AN AFFILIATE OF EITHER) OR GROUP HEALTH PERMANENTE (SUBJECT TO A MINIMUM OF SIX MONTHS SEVERANCE PAYMENTS FOLLOWING A TERMINATION THAT DOES NOT OCCUR WITHIN EIGHTEEN (18) MONTHS AFTER A CHANGE OF CONTROL), OR IF THE EXECUTIVE VIOLATES THE TERMS OF THE NON-COMPETITION, NON-SOLICITATION, NON-DISPARAGEMENT, OR CONFIDENTIALITY PROVISIONS OF THE SEVERANCE PLAN. EXECUTIVES RECEIVING SEVERANCE PAYMENTS IN 2015: CYNTHIA JOHNSON, EVP, HR 323,519 MARK SZALWINSKI, EVP, GROUP PRACTICE DIVISION 398,769 SUPPLEMENTAL NONQUALIFIED RETIREMENT PLAN SCHEDULE J, PART I, LINE 4B THE GROUP HEALTH PRESIDENT AND CEO, THE EXECUTIVE VICE PRESIDENTS, AND THE VICE PRESIDENTS ARE ELIGIBLE TO PARTICIPATE IN A NONQUALIFIED SUPPLEMENTAL EXECUTIVE RETIREMENT PLAN (THE PLAN) APPROVED BY THE GROUP HEALTH COOPERATIVE BOARD OF TRUSTEES COMPENSATION COMMITTEE AND ADMINISTERED BY THE COMPENSATION COMMITTEE. GROUP HEALTH CREDITS TO THE ACCOUNT OF EACH ACTIVE PARTICIPANT AN ANNUAL CONTRIBUTION AMOUNT OF NINE PERCENT OF THE PARTICIPANT'S BASE SALARY (15.3% FOR THE PRESIDENT AND CEO). THE FORMULA FOR THE ANNUAL CONTRIBUTION IS BASED ON THE PARTICIPANT'S BASE SALARY AND EXCLUDES ANY INCENTIVE PLAN OR BONUS PAYMENT AMOUNTS. THE PLAN BALANCES ARE SUBJECT TO SUBSTANTIAL RISK OF FORFEITURE UNTIL THE PARTICIPANT HAS VESTED AND MET OTHER PLAN REQUIREMENTS. VESTING OCCURS EITHER FIVE YEARS AFTER THE DATE ON WHICH A PARTICIPANT ENTERS THE PLAN, OR ON THE DATE ON WHICH A PARTICIPANT COMPLETES TEN CONSECUTIVE YEARS OF EMPLOYMENT WITH GROUP HEALTH COOPERATIVE, WHICHEVER OCCURS FIRST, PROVIDED THAT THE PARTICIPANT DOES NOT EXPERIENCE A SEPARATION FROM SERVICE BEFORE THE VESTING DATE. A PARTICIPANT REMAINS ELIGIBLE TO PARTICIPATE UNTIL HIS OR HER ACCOUNT BALANCE IS EITHER FULLY DISTRIBUTED OR FORFEITED. GROUP HEALTH MADE SERP PLAN CONTRIBUTIONS AND DISTRIBUTIONS IN 2015 AS FOLLOWS: SERP DISTRIBUTIONS MARK SZALWINSKI, EVP, GROUP HEALTH DIVISION 148,441 SERP CONTRIBUTIONS - VESTED SCOTT ELLIOT ARMSTRONG, PRESIDENT & CEO 154,942 RICK DALE WOODS, EVP, SR ADVSR TO THE PRES/CEO 57,579 SARAH BARIAN YATES, EVP & GENERAL COUNSEL 33,681 ROBERT O'BRIEN, EVP, HEALTH PLAN DIVISION 62,342 DONALD LEWIS, VP, CHIEF TECHNOLOGY OFFICER 126,983 ERIC LARSON, VP, GROUP HEALTH RESEARCH INSTITUTE 32,975 ERIN LEFF, EVP, GROUP PRACTICE DIVISION 28,828 BARBARA ANN BELT-LLOYD, VP, CHIEF ACCOUNTING OFFICER 21,945 BARBARA TREHEARNE, VP CLIN EXCEL & INT CHIEF NURSE 29,098 DEBORAH HUNTINGTON, VP, SALES 27,561 SERP CONTRIBUTIONS - NONVESTED BRETON CLARK MYERS, VP, TREASURY 24,227 CHRISTOPHER KNACKSTEDT, EVP, CHIEF FINANCIAL OFFICER 64,468 DAWN LOELIGER, EVP, STRATEGIC PLANNING & DEPLOYMENT 28,887 DIANA BIRKETT RAKOW, EVP, MARKETING & PUBLIC AFFAIRS 29,555 TAMI LAMP, EVP, HR 28,859 SUSAN KOZIK, EVP, CHIEF INFORMATION OFFICER 38,174 GERARD C FISCHER, VP, CLINICAL ANCILLARY SRVCS 27,800 BRIAN O'SHIELDS, VP, CHIEF ACTUARY 30,752 PAYMENTS SUBJECT TO THE INITAL CONTRACT EXCEPTION SCHEDULE J, PART I, LINE 8 A PORTION OF THE COMPENSATION REPORTED IN PART VII WAS PAID PURSUANT TO WRITTEN CONTRACTS THAT WERE THE INITIAL CONTRACT (WITHIN THE MEANING OF REGULATIONS SECTION 53.4958.4(A)(3)) BETWEEN GROUP HEALTH COOPERATIVE AND THE FOLLOWING INDIVIDUALS, WHO WERE NOT DISQUALIFIED PERSONS (WITHIN THE MEANING OF REGULATIONS SECTION 53.4958.3) IMMEDIATELY BEFORE ENTERING INTO THE CONTRACT: GERARD FISCHER, SUSAN KOZIK AND TAMI LAMP. THE ORGANIZATION FOLLOWED THE REBUTTABLE PRESUMPTION PROCEDURE IN ESTABLISHING THAT COMPENSATION. A WASHINGTON HEALTH CARE FACILITIES AUTHORITY 911108929 97978EE24 2006-11-08 99995662 FUND MEDICAL CENTER BUILDING COSTS false false false A 0 0 99995662 8848163 0 0 1999913 0 0 89147586 0 0 2008 false false true true A false false false false 0 false false false true A true false true Citibank NA 30. false false true MassMutual 10. true false false A true ORGANIZATION'S MEMBERSHIP FORM 990, PART VI, SECTION A, LINE 6 GROUP HEALTH COOPERATIVE (GHC) HAS VOTING MEMBERS. THE GHC BYLAWS OUTLINE A NUMBER OF PURPOSES, INCLUDING TO SERVE THE GREATEST POSSIBLE NUMBER OF PEOPLE UNDER CONSUMER COOPERATIVE PRINCIPLES WITHOUT DISCRIMINATION. ELIGIBLE CONSUMERS WHO BELIEVE IN THIS PURPOSE ARE ENCOURAGED TO BECOME VOTING MEMBERS AND PARTICIPATE IN GOVERNING GHC. TO BE ELIGIBLE FOR MEMBERSHIP, A CONSUMER MUST BE EIGHTEEN YEARS OF AGE OR OLDER AND CURRENT IN MONTHLY PREMIUMS. ORGANIZATION'S VOTING MEMBERSHIP FORM 990, PART VI, SECTION A, LINE 7A GHC HAS VOTING MEMBERS. THE RIGHTS OF MEMBERS ARE DELINEATED IN GHC'S BYLAWS AND INCLUDE THE DETERMINATION OF QUALIFICATIONS FOR MEMBERSHIP; THE ELECTION OF MEMBERS OF THE BOARD OF TRUSTEES (GHC'S GOVERNING BODY); THE ELECTION OF THE CHAIR OF THE STANDING NOMINATING COMMITTEE OF THE MEMBERSHIP (WHICH EVALUATES AND NOMINATES CANDIDATES FOR ELECTION TO THE BOARD); ADOPTION OF RESOLUTIONS THAT ARE ADVISORY TO THE BOARD; APPROVAL OF EXTRAORDINARY ACTIONS; AND AMENDMENT OF THE PREAMBLE, MEMBERSHIP, AND MEMBERSHIP RIGHTS SECTIONS OF THE BYLAWS. APPROVAL BY VOTE OF MEMBERS FORM 990, PART VI, SECTION A, LINE 7B GHC BYLAWS PROVIDE THAT THE MERGER OR CONSOLIDATION OF GHC WITH ANOTHER ENTITY, THE VOLUNTARY DISSOLUTION OF GHC, OR THE SALE, LEASE, EXCHANGE, OR OTHER DISPOSITION OF ALL OR SUBSTANTIALLY ALL OF THE PROPERTY AND ASSETS OF GHC MUST BE APPROVED BY VOTE OF THE MEMBERS. THE BOARD OF TRUSTEES PRESENTS A PROPOSED PLAN OF MERGER, CONSOLIDATION, DISSOLUTION, OR SALE, LEASE, EXCHANGE OR OTHER DISPOSITION OF ALL OR SUBSTANTIALLY ALL OF THE PROPERTY AND ASSETS OF GHC TO THE MEMBERS FOR APPROVAL. SUCH RESOLUTION IS FIRST CONSIDERED AT AN ANNUAL OR SPECIAL MEETING. ALSO, AMENDMENTS TO ARTICLE 2 OF THE GHC BYLAWS (ADDRESSING MEMBERSHIP AND MEMBERSHIP RIGHTS) MAY ONLY BE APPROVED BY VOTE OF THE MEMBERS. THE BOARD OF TRUSTEES MAY PROPOSE AMENDMENTS TO ARTICLE 2 BY RESOLUTION. ORGANIZATION'S FORM 990 REVIEW PROCESS FORM 990, PART VI, SECTION A, LINE 11A THE FORM 990 UNDERGOES A ROBUST PREPARATION AND REVIEW PROCESS BEFORE IT IS SIGNED. THE ORGANIZATION'S FINANCE TEAM WORKS CLOSELY WITH THE OUTSIDE ACCOUNTING FIRM IT ENGAGES TO PREPARE THE RETURN AND INVOLVES MANY MEMBERS OF MANAGEMENT IN REVIEW OF THE RETURN. THE FORM 990 IS THEN REVIEWED BY GHC MANAGEMENT FOR ACCURACY AND COMPLETENESS PRIOR TO BEING PRESENTED TO GHC'S AUDIT AND COMPLIANCE COMMITTEE OF THE BOARD OF TRUSTEES (A DULY CONSTITUTED COMMITTEE OF THE BOARD). THE FINAL DRAFT FORM 990 IS PRESENTED TO THE AUDIT AND COMPLIANCE COMMITTEE FOR REVIEW AND DISCUSSION. THE FINAL DRAFT FORM 990 IS ALSO PROVIDED TO THE FULL BOARD OF TRUSTEES FOR REVIEW AND INFORMATION BEFORE THE RETURN IS FILED. ORGANIZATION'S MONITORING AND ENFORCEMENT OF CONFLICT OF INTEREST POLICY FORM 990, PART VI, SECTION B, LINE 12C GROUP HEALTH HAS A CONFLICT OF INTEREST POLICY (BOARD POLICY 100-202, CONFLICT OF INTEREST - BOARD OF TRUSTEES, COOPERATIVE OFFICERS, AND EMPLOYEES) THAT APPLIES TO TRUSTEES, OFFICERS, EMPLOYEES AND GROUP HEALTH PERMANENTE (GHP) MEDICAL AND ADMINISTRATIVE STAFF WHEN THEY ARE PERFORMING WORK ON BEHALF OF GROUP HEALTH OR ARE REPRESENTING GROUP HEALTH IN ANY TRANSACTION THAT INVOLVES GROUP HEALTH. UNDER THIS POLICY: -THE GROUP HEALTH OFFICE OF COMPLIANCE AND ETHICS IS RESPONSIBLE FOR DEVELOPING COMPLIANCE PROCEDURES FOR ADMINISTERING THIS POLICY, DEVELOPING PROCEDURES FOR THE DISCLOSURE STATEMENTS TO BE COMPLETED BY KEY PERSONS (FOR THE PURPOSES OF THIS POLICY, KEY PERSONS INCLUDE MANAGERS, INDIVIDUALS HOLDING CERTAIN HIGH-LEVEL POSITIONS, AND THOSE IN SENSITIVE ROLES OR POSITIONS INVOLVING TRANSACTIONS WITH OUTSIDE PARTIES THAT MAY GIVE RISE TO POTENTIAL CONFLICTS OF INTEREST OR THE APPEARANCE OF CONFLICTS), AND FOR PROVIDING GENERAL GUIDANCE TO GROUP HEALTH MANAGEMENT AND EMPLOYEES REGARDING COMPLIANCE WITH THIS POLICY. THE OFFICE OF COMPLIANCE AND ETHICS CONSULTS WITH GROUP HEALTH EXECUTIVE MANAGEMENT TO ENSURE SUPPORT FOR THE IMPLEMENTATION AND ADMINISTRATION OF THIS POLICY. THE CHIEF COMPLIANCE AND ETHICS OFFICER PROVIDES PERIODIC REPORTS TO THE AUDIT AND COMPLIANCE COMMITTEE ON THE IMPLEMENTATION AND ADMINISTRATION OF THIS POLICY. -TRUSTEES AND COOPERATIVE OFFICERS PROVIDE A WRITTEN DECLARATION OF ANY ACTUAL OR POTENTIAL AREAS OF CONFLICT OF INTEREST ON AN ANNUAL BASIS USING FORMS AND PROCEDURES DEVELOPED BY THE OFFICE OF COMPLIANCE AND ETHICS. THESE DECLARATIONS ARE SUBMITTED BY TRUSTEES AND OFFICERS TO THE OFFICE OF COMPLIANCE AND ETHICS FOR REVIEW. THE OFFICE OF COMPLIANCE AND ETHICS EVALUATES THE DECLARATIONS AND PROVIDES A SUMMARY OF DISCLOSURES THAT IS FORWARDED TO THE AUDIT AND COMPLIANCE COMMITTEE FOR ITS CONSIDERATION. ANY APPARENT CONFLICTS OF INTEREST AND/OR OTHER INSTANCES OF NONCOMPLIANCE WITH THIS POLICY ARE REFERRED BY THE AUDIT AND COMPLIANCE COMMITTEE TO THE CHAIR OF THE COOPERATIVE FOR RESOLUTION. -DURING THE YEAR, TRUSTEES AND COOPERATIVE OFFICERS REPORT MATERIAL ADDITIONS OR CHANGES TO THE INFORMATION PROVIDED ON ANNUAL CONFLICT OF INTEREST DECLARATIONS. THESE ADDITIONS OR CHANGES TO THE DECLARATIONS ARE SUBMITTED TO THE OFFICE OF COMPLIANCE AND ETHICS FOR REVIEW. IF THE REVIEW INDICATES THAT THERE IS A CONFLICT OF INTEREST OR THE APPEARANCE OF ONE, A SUMMARY OF THE ADDITIONS OR CHANGES IS FORWARDED TO THE AUDIT AND COMPLIANCE COMMITTEE, FOLLOWING THE PROCESS USED FOR ANNUAL DECLARATIONS. -THE CHAIR OF THE COOPERATIVE COUNSELS ANY TRUSTEE OR OFFICER ABOUT PROHIBITED CONFLICTS OF INTEREST AND OTHER INSTANCES OF NONCOMPLIANCE WITH THE POLICY, INCLUDING APPARENT UNDISCLOSED CONFLICTS OF INTEREST AND, IF NOT RESOLVED TO HIS/HER SATISFACTION, PLACES THE MATTER ON THE AGENDA OF AN EXECUTIVE SESSION. THE CHIEF COMPLIANCE AND ETHICS OFFICER SUPPORTS THE CHAIR OF THE COOPERATIVE IN FULFILLING THIS RESPONSIBILITY. -TRUSTEES DISCLOSE AN ACTUAL CONFLICT OF INTEREST, OR THE APPEARANCE OF SUCH A CONFLICT, WHEN SUCH AN INTEREST BECOMES A MATTER FOR BOARD ACTION. ANY TRUSTEE HAVING AN ACTUAL CONFLICT OF INTEREST, OR THE APPEARANCE OF A CONFLICT OF INTEREST, RELATED TO A MATTER AT ISSUE DOES NOT VOTE, TAKE OTHER ACTION, OR USE HIS/HER PERSONAL INFLUENCE ON THE MATTER BEYOND THAT DESCRIBED BELOW. THE MINUTES OF THE MEETING REFLECT THAT A DISCLOSURE WAS MADE AND THAT THE TRUSTEE ABSTAINED FROM PARTICIPATION IN THE DISCUSSION EXCEPT AS DESCRIBED BELOW. IF ANY TRUSTEE HAS REASON TO BELIEVE S/HE OR ANOTHER TRUSTEE MAY HAVE AN ACTUAL CONFLICT OF INTEREST, OR THE APPEARANCE OF SUCH A CONFLICT, THE TRUSTEE RAISES THE QUESTION FOR CONSIDERATION. IF THERE IS ANY DISAGREEMENT REGARDING THE EXISTENCE OF AN ACTUAL CONFLICT OF INTEREST, OR THE APPEARANCE OF SUCH A CONFLICT, THE CHAIR OF THE COOPERATIVE POLLS OTHER TRUSTEES TO DETERMINE IF THE BOARD CONCLUDES THAT AN ACTUAL CONFLICT OR THE APPEARANCE OF A CONFLICT OF INTEREST EXISTS. IF THE BOARD CONCLUDES THERE IS A CONFLICT OR THE APPEARANCE OF A CONFLICT, THEN THE TRUSTEE ABSTAINS FROM VOTING OR DISCUSSIONS ON THE MATTER. THE REQUIREMENTS OF THIS PARAGRAPH SHOULD NOT BE CONSTRUED AS PREVENTING THE TRUSTEE WITH AN ACTUAL CONFLICT OF INTEREST, OR THE APPEARANCE OF SUCH A CONFLICT, FROM BRIEFLY STATING HIS/HER POSITION IN THE MATTER, NOR FROM ANSWERING PERTINENT QUESTIONS OF OTHER TRUSTEES OR OFFICERS SINCE HIS/HER KNOWLEDGE MAY BE OF ASSISTANCE. -GROUP HEALTH OFFICERS, OTHER EMPLOYEES, AND GHP EMPLOYEES ACTING ON BEHALF OF GROUP HEALTH DISCLOSE AN ACTUAL CONFLICT OF INTEREST, OR THE APPEARANCE OF SUCH A CONFLICT, WHEN SUCH AN INTEREST IS RELEVANT TO A MATTER IN WHICH THEY HAVE A ROLE, EITHER DIRECTLY OR THROUGH SUBORDINATES ACTING AT THEIR DIRECTION. GROUP HEALTH OFFICERS, OTHER EMPLOYEES, OR GHP EMPLOYEES ACTING ON BEHALF OF GROUP HEALTH HAVING AN ACTUAL CONFLICT OF INTEREST, OR THE APPEARANCE OF A CONFLICT OF INTEREST, RELATED TO A MATTER AT ISSUE DO NOT PARTICIPATE IN THE MATTER OR USE HIS/HER PERSONAL OR PROFESSIONAL INFLUENCE ON THE MATTER. ANY GROUP HEALTH OFFICER, OTHER EMPLOYEE, OR GHP EMPLOYEE ACTING ON BEHALF OF GROUP HEALTH WHO BELIEVES HE/SHE MAY HAVE AN ACTUAL CONFLICT OF INTEREST, OR THE APPEARANCE OF SUCH A CONFLICT, IS EXPECTED TO ABSTAIN FROM PARTICIPATION OR STATING HIS/HER POSITION IN THE MATTER, OR MAY ASK HIS/HER DIRECT SUPERVISOR TO DETERMINE IF THE SUPERVISOR BELIEVES THAT AN ACTUAL CONFLICT OR THE APPEARANCE OF A CONFLICT OF INTEREST EXISTS. IF THE SUPERVISOR DETERMINES THAT A CONFLICT OF INTEREST OR THE APPEARANCE OF A CONFLICT EXISTS, THE INDIVIDUAL ABSTAINS FROM PARTICIPATION IN THE MATTER. CONSULTATION WITH THE OFFICE OF COMPLIANCE AND ETHICS IS RECOMMENDED WHEN IT IS DIFFICULT TO DETERMINE WHETHER THE CIRCUMSTANCES CONSTITUTE A CONFLICT OF INTEREST. -ALL KEY PERSONS MUST COMPLETE AN ANNUAL DISCLOSURE STATEMENT TO IDENTIFY ACTUAL CONFLICTS OF INTEREST, OR CIRCUMSTANCES THAT MIGHT GIVE THE APPEARANCE OF A CONFLICT OF INTEREST, OR TO ATTEST THAT NO SUCH CONFLICT EXISTS. DURING THE YEAR, KEY PERSONS REPORT MATERIAL ADDITIONS OR CHANGES TO THE INFORMATION PROVIDED ON ANNUAL CONFLICT OF INTEREST DECLARATIONS. THESE ADDITIONS OR CHANGES TO THE DECLARATIONS ARE SUBMITTED TO THE OFFICE OF COMPLIANCE AND ETHICS, FOLLOWING THE PROCESS USED FOR ANNUAL DECLARATIONS. -ALL DISCLOSURE STATEMENTS OF KEY PERSONS ARE SUBMITTED TO THE OFFICE OF COMPLIANCE AND ETHICS AND ANY DISCLOSURES ARE REVIEWED. NOT EVERY DISCLOSURE WILL WARRANT ACTION. FOR THOSE THAT DO, THE OFFICE OF COMPLIANCE AND ETHICS WORKS WITH MANAGEMENT TO MITIGATE OR CORRECT ANY ACTUAL OR APPARENT CONFLICTS OF INTEREST. ORGANIZATION'S COMPENSATION SETTING PROCESS FORM 990, PART VI, SECTION B, LINE 15 GROUP HEALTH COOPERATIVE (GHC) IS GOVERNED BY AN INDEPENDENT BOARD OF TRUSTEES ("THE BOARD"), COMPRISED OF 11 CONSUMERS ELECTED BY GHC'S VOTING MEMBERS. THE BOARD HAS DELEGATED TO THE COMPENSATION COMMITTEE OF THE BOARD (THE "COMMITTEE") THE RESPONSIBILITY FOR NEGOTIATING AND APPROVING THE EMPLOYMENT AGREEMENT AND COMPENSATION PACKAGE FOR THE GHC PRESIDENT AND CHIEF EXECUTIVE OFFICER ("CEO"); APPROVING THE EXECUTIVE TOTAL COMPENSATION PHILOSOPHY THAT DRIVES ALL EXECUTIVE COMPENSATION DECISIONS; AND APPROVING COMPENSATION FOR THE EXECUTIVE VICE PRESIDENTS AND VICE PRESIDENTS OF GHC (EXCEPT FOR COMPENSATION ESTABLISHED IN THE INITIAL WRITTEN CONTRACTS OFFERED TO CANDIDATES FOR VICE PRESIDENT POSITIONS WHO ARE NOT THEN EMPLOYED BY GHC AND WHO HAVE NOT BEEN DETERMINED TO BE A "DISQUALIFIED PERSON" UNDER APPLICABLE IRS REGULATIONS, AS TO WHOM THE BOARD HAS DELEGATED SUCH AUTHORITY TO THE CEO). THE FIVE MEMBERS OF THE COMMITTEE ARE THE CHAIR OF THE BOARD OF TRUSTEES, THE VICE CHAIR, AND THREE ADDITIONAL TRUSTEES SELECTED BY THE CHAIR. AS ADOPTED BY THE COMMITTEE, THE EXECUTIVE TOTAL COMPENSATION PHILOSOPHY PROVIDES THAT GHC WILL MAINTAIN AN EXECUTIVE TOTAL COMPENSATION PROGRAM DESIGNED TO FACILITATE THE ACHIEVEMENT OF ITS CHARITABLE MISSION, VALUES AND ORGANIZATIONAL GOALS. EXECUTIVE COMPENSATION IS SET AT A LEVEL THAT ENABLES THE ORGANIZATION TO ATTRACT, RETAIN, MOTIVATE AND REWARD THE HIGHEST CALIBER EXECUTIVES AT A COST THAT IS CONSISTENT WITH OUR PERFORMANCE AND CHARITABLE MISSION. BASED UPON THOSE PRINCIPLES, THE PHILOSOPHY CONFIRMS THAT COMPENSATION WILL BE COMPARED TO COMPARABLE ORGANIZATIONS (HMOS AND MANAGED CARE, HEALTH CARE, AND HEALTH INSURANCE ORGANIZATIONS), AND THAT BASE SALARY RANGES WILL BE BUILT AROUND 50TH PERCENTILE MARKET BASE PAY LEVELS (WITH FLEXIBILITY TO RECOGNIZE INDIVIDUAL SKILLS, EXPERIENCE AND CONTRIBUTIONS) , ANNUAL AND LONG-TERM INCENTIVES WILL BE TARGETED AT THE 50TH PERCENTILE (WITH AN OPPORTUNITY TO EARN ABOVE THAT LEVEL BASED ON PERFORMANCE), AND BENEFITS AND PERQUISITES WILL BE ESTABLISHED CONSISTENT WITH MARKET PRACTICES. A SIGNIFICANT PORTION OF EXECUTIVES' TOTAL COMPENSATION IS CONTINGENT ON ORGANIZATIONAL AND INDIVIDUAL PERFORMANCE. CONSISTENT WITH GHC'S PHILOSOPHY, THE COMMITTEE REVIEWS AND APPROVES THE ANNUAL PERFORMANCE GOALS AND CRITERIA TO BE USED IN DETERMINING SALARY INCREASES AND INCENTIVE COMPENSATION CRITERIA FOR THE GHC CEO, EXECUTIVE VICE PRESIDENTS AND VICE PRESIDENTS (WHICH GROUP INCLUDES ALL GHC KEY EMPLOYEES AND GHC OFFICERS, EXCLUDING THE CHAIR OF THE BOARD AND THE VICE CHAIR, WHO ARE NOT EMPLOYED BY GHC). THE COMMITTEE ALSO HIRES A QUALIFIED INDEPENDENT COMPENSATION CONSULTANT (AN INDEPENDENT EXPERT) TO REVIEW, ANALYZE AND PROVIDE BENCHMARKING DATA FOR THE TOTAL COMPENSATION AND BENEFITS PACKAGES OF THE CEO, EXECUTIVE VICE PRESIDENTS AND VICE PRESIDENTS. APPROPRIATE COMPARABILITY DATA IS OBTAINED FROM THE INDEPENDENT EXPERT, I.E., COMPENSATION PAID BY SIMILARLY SITUATED ORGANIZATIONS (BOTH TAXABLE AND TAX- EXEMPT, OF SIMILAR SIZE AND IN THE SAME INDUSTRY) FOR SIMILAR JOB RESPONSIBILITIES. THE COMMITTEE'S WRITTEN RECORDS AND MINUTES INCLUDE THE (1) TERMS OF THE ARRANGEMENT WITH THE DISQUALIFIED PERSON (INCLUDING THE DATE THE ARRANGEMENT WAS APPROVED); (2) A LIST OF MEMBERS PRESENT DURING THE DEBATE ON THE TRANSACTION (AND HOW THE MEMBERS VOTED WHEN IT WAS APPROVED); AND (3) A DESCRIPTION OF THE COMPARABLE DATA RELIED ON BY THE COMMITTEE. KEY DELIBERATIONS OF THE COMMITTEE ARE ALSO DOCUMENTED IN MINUTES WHICH ARE APPROVED AT THE NEXT COMMITTEE MEETING. THE COMMITTEE'S COMPENSATION DECISIONS ARE SHARED WITH THE BOARD. THE FOLLOWING ARE THE OFFICES AND POSITIONS FOR WHICH THE ABOVE-DESCRIBED PROCESS WAS USED IN 2015 TO ESTABLISH COMPENSATION FOR THE PERSONS WHO HELD THESE POSITIONS: PRESIDENT & CHIEF EXECUTIVE OFFICER (CEO); VICE PRESIDENT (VP), ADMINISTRATIVE SERVICES DIVISION; EXECUTIVE VICE PRESIDENT (EVP), GROUP PRACTICE DIVISION; EVP & SENIOR ADVISOR TO THE PRESIDENT & CEO; VP, NETWORK SERVICES & PROVIDER RELATIONS; VP, SALES; EVP, HUMAN RESOURCES; VP, GROUP HEALTH RESEARCH INSTITUTE; VP, CHIEF TECHNOLOGY OFFICER; EVP & CHIEF INFORMATION OFFICER; EVP, MARKETING & PUBLIC AFFAIRS; EVP & CHIEF FINANCIAL OFFICER; EVP, STRATEGIC PLANNING & DEPLOYMENT; EVP, HEALTH PLAN DIVISION; VP, HEALTH PLAN ADMINISTRATION; VP, CLINICAL EXCELLENCE & INTEGRATION, CHIEF NURSE; VP, EMPLOYEE & LABOR RELATIONS; EVP & GENERAL COUNSEL; VP & DEPUTY GENERAL COUNSEL; VP, ANALYTICS & CHIEF MEDICAL INFORMATION OFFICER; VP, MARKET DEVELOPMENT; VP, CHIEF ACTUARY; VP, FINANCIAL PLANNING & ANALYSIS; VP, TREASURY; VP & CHIEF ACCOUNTING OFFICER; VP, INNOVATION, DEVELOPMENT & BUSINESS SERVICES; VP, CLINICAL ANCILLARY SERVICES; VP, LINES OF BUSINESS & PRODUCT MANAGEMENT; VP, HUMAN RESOURCES SERVICES & SYSTEMS; VP, HEALTH PLAN INFORMATION TECHNOLOGY; AND VP, CLINICAL OPERATIONS & MARKET INTEGRATION. THIS PROCESS WAS ALSO USED IN 2014. ORGANIZATION'S DOCUMENTS AVAILABLE TO THE PUBLIC FORM 990, PART VI, SECTION C, LINE 19 BYLAWS, CONSOLIDATED AUDITED FINANCIAL STATEMENTS, AND THE FORM 990 AND 990-T ARE MADE AVAILABLE TO THE GENERAL PUBLIC THROUGH GHC'S WEBSITE AND BY PROVIDING PAPER COPIES UPON REQUEST. COPIES OF THE CONFLICT OF INTEREST POLICY ARE MADE AVAILABLE UPON REQUEST. RECONCILIATION OF NET ASSETS PART XI, LINE 9 MEMBERSHIP $(50,100) CAPITAL DUES $(66,800) TEMP RESTRICTED $(990,174) PERM RESTRICTED $161,392 OTHER COMPREHENSIVE INCOME $955,745 CMA ADJUSTMENT $6,249,680 RETAINED EARNINGS $(17,069,868) --------------- TOTAL OTHER CHANGES IN NET ASSETS $(10,810,125) FORM 990, PART III, LINE 1 - ORGANIZATION'S MISSION GROUP HEALTH COOPERATIVE ("GROUP HEALTH") IS ONE OF THE NATION'S LARGEST CONSUMER GOVERNED HEALTH CARE ORGANIZATIONS. GROUP HEALTH IS GOVERNED BY AN INDEPENDENT BOARD OF TRUSTEES COMPRISED OF 11 CONSUMERS ELECTED BY GROUP HEALTH'S VOTING MEMBERSHIP. ANY PERSON 18 YEARS AND OLDER WHO IS ENROLLED IN A PREPAID HEALTH PLAN OFFERED BY GROUP HEALTH OR A DESIGNATED AFFILIATE OR A SUBSIDIARY ("ENROLLEE") IS ELIGIBLE TO BE A VOTING MEMBER. GROUP HEALTH'S PRIMARY EXEMPT PURPOSE IS TO PROVIDE COMPREHENSIVE, PREVENTION-ORIENTED HEALTH CARE SERVICES TO ITS ENROLLEES AND OTHER PATIENTS IN A MANNER THAT REDUCES COST AS A BARRIER TO CARE AND TO PROVIDE HEALTH-RELATED EDUCATION AND RESEARCH ACTIVITIES THAT BENEFIT THE BROADER COMMUNITY. TO FULFILL THIS PURPOSE, GROUP HEALTH PROVIDES OUTPATIENT PRIMARY AND SPECIALTY CARE AS WELL AS INPATIENT ACUTE AND SUB-ACUTE CARE, THROUGH THE SERVICES OF SALARIED PHYSICIANS, NURSES, AND OTHER HEALTH CARE PRACTITIONERS. THE SALARIED PHYSICIANS ARE EMPLOYED BY GROUP HEALTH PERMANENTE, P.C., AN ORGANIZATION WITH WHOM GROUP HEALTH HAS AN EXCLUSIVE CONTRACT. IN 2015, GROUP HEALTH OPERATED ONE HOSPITAL, 25 PRIMARY CARE MEDICAL CENTERS, SIX SPECIALTY CARE UNITS, SEVEN BEHAVIORAL HEALTH CLINICS, 13 EYE CARE CLINICS, FIVE AUDIOLOGY/HEAR CENTERS, AND EIGHT SPEECH, LANGUAGE AND LEARNING CLINICS. GROUP HEALTH ALSO CONTRACTS WITH COMMUNITY HEALTH CARE PROVIDERS FOR SERVICES WHERE GROUP HEALTH DOES NOT OPERATE ITS OWN FACILITIES AND FOR SUB-SPECIALTY MEDICAL SERVICES NOT PROVIDED AT GROUP HEALTH FACILITIES. FORM 990 PART IX LINE 11G DESCRIPTION:O/S Labor TOTAL FEES:4240607 FORM 990 PART IX LINE 11G DESCRIPTION:Inpatient Services TOTAL FEES:XXX-XX-XXXX FORM 990 PART IX LINE 11G DESCRIPTION:Hospice Services TOTAL FEES:4080216 FORM 990 PART IX LINE 11G DESCRIPTION:Outpatient Services TOTAL FEES:XXX-XX-XXXX FORM 990 PART IX LINE 11G DESCRIPTION:Home Care Services TOTAL FEES:9829947 FORM 990 PART IX LINE 11G DESCRIPTION:GH Perm Med Services TOTAL FEES:XXX-XX-XXXX FORM 990 PART IX LINE 11G DESCRIPTION:Facility Support Services TOTAL FEES:XXX-XX-XXXX FORM 990 PART IX LINE 11G DESCRIPTION:Pharmacy TOTAL FEES:72430980 FORM 990 PART IX LINE 11G DESCRIPTION:Other Fees TOTAL FEES:-37310881 COLUMBIA MEDICAL ASSOCIATES LLC 1003 EAST TRENT SUITE 150 SPOKANE WA 99202 200986848 COMP MED CARE WA 18449818 5659895 GHC COLUMBIA CLINIC LLC 1003 EAST TRENT SUITE 150 SPOKANE WA 99202 INACTIVE WA 0 0 CMA LLC GROUP HEALTH FOUNDATION 320 WESTLAKE AVE N STE 100 SEATTLE WA 981095233 911246278 FOUNDATION WA 501(c)(3) 7 GHC true GROUP HEALTH NORTHWEST 320 WESTLAKE AVE N STE 100 SEATTLE WA 981095233 911216856 INACTIVE WA 501(c)(3) 11,TYPE I GHC true GROUP HEALTH OPTIONS INC 320 WESTLAKE AVE N STE 100 SEATTLE WA 981095233 911467158 INSURANCE WA GHC C Corp 547198329 292251206 1.00000 KPS HEALTH PLANS 400 WARRAN AVENUE BREMERTON WA 98337 910540525 INSURANCE WA GHC C Corp 0 0 1.00000 GROUP HEALTH SERVICES INC 320 WESTLAKE AVE N STE 100 SEATTLE WA 981095233 911392222 INACTIVE WA GHC C CORP 0 0 1.00000 GROUP HEALTH OF WASHINGTON 320 WESTLAKE AVE N STE 100 SEATTLE WA 981095233 911314907 INACTIVE WA GHC C CORP 0 0 1.00000 true true true false false false false false false false false true true true false false false false false GROUP HEALTH OPTIONS INC l 163426965 FMV GROUP HEALTH OPTIONS INC m 69622 FMV GROUP HEALTH OPTIONS INC a(iv) 1186 FMV KPS HEALTH PLANS l 2602198 FMV KPS HEALTH PLANS m -264823 FMV KPS HEALTH PLANS a(iv) 26507 FMV GROUP HEALTH FOUNDATION c 2116557 CASH