2014-11-14T10:34:17-06:00 2013-12-31 KPMG LLP 1918 Eighth Avenue Suite 2900 Seattle WA 98101 990 2013-01-01 910511770 GROUP HEALTH COOPERATIVE % MARTIN R DOPPS GROU 2064484683 320 WESTLAKE AVE N Suite 100 SEATTLE WA 981095233 BARBARA BELT-LLOYD VP, CHIEF ACCOUNTING OFFICER 2064484683 2014-11-13 true SUE ROBISON P00560072 2064484683 2014-10-28 2013 2015-11-30 17:44:51Z SCOTT ARMSTRONG 320 WESTLAKE AVE N STE 100 SEATTLE WA 981095233 3327200218 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 8734 417 967870 -4855 46749715 46303086 2653434840 2810399564 25436484 34635703 99186151 94937486 2824807190 2986275839 0 0 0 0 674726988 661764835 0 0 0 2161251730 2206320139 2835978718 2868084974 -11171528 118190865 1466981065 1720534659 835358094 750153219 631622971 970381440 X GROUP HEALTH COOPERATIVE ("GROUP HEALTH") IS ONE OF THE NATION'S LARGEST CONSUMER GOVERNED HEALH 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 PHSYICIANS, NURSES, AND OTHER HEALTH CARE PRACTITIONERS. THE SALARIED PHSYICIANS ARE EMPLOYED BY GROUP HEA false false 2185720829 2840412996 GROUP HEALTH COOPERATIVE ("GROUP HEALTH") PROVIDED HEALTH CARE COVERAGE AND/OR SERVICES TO APPROXIMATELY 385,000 COMMERCIAL GROUP, MEDICARE, MEDICAID, BASIC HEALTH PLAN, AND INDIVIDUAL ENROLLEES IN WASHINGTON AND NORTH IDAHO. MANY MEDICARE AND MEDICAID PATIENTS RECEIVE SUCH SERVICES UNDER CAPITATION CONTRACTS BETWEEN GROUP HEALTH AND GOVERNMENT AGENCIES. PLEASE REFER TO A DESCRIPTION OF THE PROGRAM'S OBJECTIVES IN SCHEDULE H, PART VI.2 AND PART VI.5. 51897393 17774443 CARE AND COVERAGE TO 24,514 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. 61550583 46181741 HEALTH RESEARCH AND EDUCATION FOR 320 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. 1330405 Healthy Communities 1330405 2300499210 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 6858 0 true 8734 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 STE 100 SEATTLE WA 981095233 X PORSCHE EVERSON CHAIR, TRUSTEE 7.5 0.25 X X 25886 1000 0 KATHERINE BELL TRUSTEE 6.5 0.2 X 12750 1000 0 SUSAN JOY BYINGTON VICE CHAIR, TRUSTEE 7.5 0.2 X 22136 1000 0 RUTA ELMA FANNING TRUSTEE 6.5 0.2 X 12750 1000 0 LEO FRANCIS GREENAWALT JR TRUSTEE 6.5 0.2 X 12750 1000 0 HARRY HARRISON JR TRUSTEE 6.5 0.2 X 18386 1000 0 PHILLIP JEFFREY HAAS TRUSTEE 6.5 0.2 X 18386 1000 0 JENNIFER ANN JOLY TRUSTEE 6.5 0.2 X 12750 1000 0 ROBERT JOEL MARGULIS TRUSTEE 6.5 0.2 X 18386 1000 0 DOROTHY ANNE RUZICKI TRUSTEE 6.5 0.2 X 18386 1000 0 ROBERT ALEXANDER WATT TRUSTEE 6.5 0.2 X 18386 750 0 SCOTT ELLIOT ARMSTRONG CEO & PRESIDENT 39.0 1.0 X 1416476 0 -19266 BARBARA ANN BELT-LLOYD CONTROLLER & EXEC DIR; FIN OPS 40.0 0.0 X 240189 0 36499 SCOTT BOYD VP; FINANCE 40.0 0.0 X 606528 0 9649 BRETON CLARK MYERS ASST TREASURER 40.0 0.0 X 266325 0 11813 RICK DALE WOODS EVP & GENERAL COUNSEL 40.0 0.0 X 660377 0 218716 SARAH BARIAN YATES VP & DEPUTY GENERAL COUNSEL 40.0 0.0 X 418655 0 24085 ELLEN SUZANNE DALY VP; NTWRK SVC & PROVDR RELTNS 40.0 0.0 X 355619 0 29702 CYNTHIA JOHNSON EVP; HR 40.0 0.0 X 531687 0 13306 LAURA MCMILLAN VP; STRAGIC PLANNING & DEPLO 40.0 0.0 X 322505 0 -38488 ROBERT O'BRIEN EVP; HEALTH PLAN DIVISION 40.0 0.0 X 1095533 0 21128 MARK SZALWINSKI EVP; GROUP PRACTICE DIVISION 40.0 0.0 X 894105 0 29702 RANDY BARKER VP; APPLE DIVISION 40.0 0.0 X 414301 0 11143 DEBORAH HUNTINGTON VP; SALES 40.0 0.0 X 375848 0 24085 ERIC LARSON VP; GROUP HEALTH RESEARCH INST 39.0 1.0 X 454299 0 14436 ERIN LEFF VP; CONSULT SPEC & AC SVCS 40.0 0.0 X 411968 0 13306 LAURA REHRMANN VP; COMMUNITY RESPONSIBILITY 20.0 20.0 X 379951 0 10690 RICHARD EDWARD MAGNUSON EVP; CHIEF FINL & ADM OFFICER 39.0 1.0 X 287157 0 0 9322475 10750 410506 1157 true true false VIRGINIA MASON PO BOX 91046 SEATTLE WA 98111 Hospital Services 97332229 OVERLAKE HOSPITAL 1035 116TH AVE NE BELLEVUE WA 98004 Hospital Services 71398677 St JOSEPH FRANCISCAN HEALTH SYSTEM PO BOX 34936 SEATTLE WA 98124 Hospital Services 58666829 PROVIDENCE HEALTH SERVICES PO BOX 34439 SEATTLE WA 98124 Hospital Services 90895653 GROUP HEALTH PERMANENTE 320 WESTLAKE AVE N SUITE 100 SEATTLE WA 981095233 Medical Professional 352242586 592 1414758 37801858 7086470 4400 46303086 MEDICARE/MEDICAID PAYMENTS 900099 965405650 965405650 FEES AND CONTRACTS FROM GOV'T AGENCIES 900099 691522340 691522340 MEMBER DUES 900099 618590893 618590893 CAPITATION REVENUE 900099 204101993 204101993 NON-COVERED ENROLLEE SVC 900099 127343951 127343951 203434737 203434737 2810399564 31859678 31859678 0 0 0 0 0 338161336 5398461 339766410 1017362 -1605074 4381099 2776025 2776025 0 0 0 140607 -140607 -140607 ADMIN CONTRACT 561000 89863816 89863816 SALES TO MEMBERS 446199 3973840 3973840 GROUP HEALTH RESEARCH INSTITUTE 541700 801832 801832 438605 131960 306645 95078093 2986275839 2904369180 967870 34635703 0 0 0 0 9795312 9795312 0 523876190 296236690 227639500 68437797 38699576 29738221 13333041 7539445 5793596 46322495 26511266 19811229 0 1969483 1969483 947820 947820 785173 785173 0 1295826 1295826 1653165185 1561635777 91529408 3765167 147184 3617983 313239941 289514354 23725587 25273195 106122 25167073 0 48703318 19313925 29389393 2294520 1522713 771807 0 5112061 996986 4115075 10363228 827 10362401 0 57350313 31850800 25499513 16485156 15798007 687149 ADMINISTRATIVE/ACCESS FEES 8098311 7352588 745723 BAD DEBT EXPENSE 15260551 840146 14420405 DUES/LICENSES/PERMITS 3853802 541117 3312685 PREMIUM AND BUSINESS TAX 36850954 1282572 35568382 1506135 609115 897020 2868084974 2300499210 567585764 0 41794036 189536704 31748248 22343469 6790364 8413001 93794184 88172374 0 0 0 0 1768945 823474 17957077 12822894 24491412 19381216 1109478948 686493405 428423038 422985543 622005017 679518111 154449046 199063900 18076182 23065182 0 0 25683516 54408791 1466981065 1720534659 307174879 356057653 160000 150000 27201955 44015890 139903363 129805552 0 0 0 0 0 0 0 0 360917897 220124124 835358094 750153219 X 617868794 953734158 5568486 7349921 8185691 9297361 631622971 970381440 1466981065 1720534659 X 118190865 20606576 199961028 X false true X true true true X RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED 840359 840359 2867244615 2868084974 1000000 250000 1000000 1000000 1000000 1000000 4000000 6000000 887298 811312 935937 840359 3474906 250000 250000 250000 250000 1000000 1500000 28297754 28297754 582730210 298635181 284095029 484290848 387858224 96432624 14160136 14160136 422985543 3503456 C 194923044 C ONE HEALTH PORT 637400 C 199063900 0 SELF INSURANCE 73737483 RETIREE MEDICAL 46001000 PENSION LIABILITY 77645933 DEFERRED COMPENSATION 6310723 LEASES 8234517 RENT DIFFERENTIAL 5465840 SECURITY CARE CLAIMS 2384913 OTHER LIABILITIES 343715 220124124 3023727889 38548034 199842 38747876 2984980013 1295826 1295826 2986275839 2867116288 327140 327140 2866789148 1295826 1295826 2868084974 PART XI LINE 2D OTHER THAN TEMP. IMPAIRED ($20,433) BOOK PARTNERSHIP EARNINGS 84,068 NON-CASH CONTRIBUTION ($4,400) COGS RECLASS $140,607 ------------- TOTAL $199,842 PART XII LINE 2D LOSS ON SALE OF ASSETS $191,648 TAX PARTNERSHIP EARNINGS ($5,115) COGS RECLASS $140,607 ----------- TOTAL $327,140 true true true X true X true false true true 735 891597 891597 0.00030 20237 41810507 15043522 26766985 0.00940 1591 1470603 1470603 0.00050 22563 44172707 15043522 29129185 0.01020 4 2111 823608 823608 0.00030 10 320 10135707 10135707 0.00350 7 1951 7724686 2730921 4993765 0.00170 1 51414876 46181741 5233135 0.00180 2 18792 18792 24 4382 70117669 48912662 21205007 0.00730 24 26945 114290376 63956184 50334192 0.01750 1 406904 406904 0.00010 1 33377 33377 1 20000 20000 1 27723 27723 4 488004 488004 0.00010 false 12115193 678808 1656578 -977770 X true true 1 1 CAPITOL HILL MAIN BUILDING 201 16TH AVE E SEATTLE WA 981125260 WWW.GHC.ORG/LOCATIONS/ X X CAPITOL HILL BUILDING 1 true X X X X X X X X X 13 true false true X WWW1.GHC.ORG/HTML/PUBLIC/ABOUT/COMMUNITY X X X X X false false true true 200. true 250. true X X X X X true true X X X true false X X true X false false 38 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 SEATTE WA 981125260 MEDICAL CLINIC CAPITOL HILL WEST BUILDING 201 16TH AVE E SEATTLE WA 981125260 MEDICAL CLINIC CAPITOL HILL ANNEX BUILDING 112 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 COEUR D'ALENE MEDICAL CENTER 1090 W PARK PLACE COEUR DALENE ID 838142664 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 PART I, LINE 3(C) CHARITY CARE ELIGIBILITY CRITERIA GROUP HEALTH PROVIDES FREE CARE TO LOW INCOME INDIVIDUALS AT 200% OF FEDERAL POVERTY GUIDELINES BUT DOES NOT OFFER DISCOUNTED CARE. 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 GROUP HEALTH PROVIDES COMMUNITY SUPPORT THROUGH OUR SPONSORSHIPS OF MANY ORGANIZATIONS. ACTIVITIES AND EVENTS HOSTED BY THESE ORGANIZATIONS ENCOURAGE PHYSICAL ACTIVITY FROM A WIDE RANGE OF COMMUNITY MEMBERS SUCH AS THE SEATTLE-TO-PORTLAND BICYCLE CLASSIC, GONZAGA UNIVERSITY'S AND THE SEATTLE STORM'S SUMMER BASKETBALL CAMPS, BLOOMSDAY TRAINING CLINICS, THE SEATTLE SOUNDERS YOUTH SOCCER CAMPS AND YMCA's HEALTHY KIDS DAY. GROUP HEALTH, IN PARTNERSHIP WITH SEVERAL STATE AND FEDERAL AGENCIES, CONTINUES TO PROMOTE ENVIRONMENTAL IMPROVEMENTS THROUGH AN INNOVATIVE PATIENT MEDICATION DISPOSAL PROGRAM WHICH ALLOWS PATIENTS WITH DISCONTINUED OR EXPIRED MEDICATIONS TO DISPOSE OF THEM IN A SAFE AND ENVIRONMENTALLY SOUND MANNER. THIS SYSTEM INVOLVES SECURE, CONVENIENT DROP BOXES LOCATED IN 25 GROUP HEALTH PHARMACIES ACROSS THE STATE TO ALLOW MEMBERS AND PATIENTS TO RECYCLE IN A WAY THAT KEEPS THEM OUT OF LANDFILLS AND WATER SYSTEMS. IN ADDITION TO ENVIRONMENTAL BENEFITS, THIS PROGRAM ALSO HELPS PREVENT RISKS TO THE SAFETY OF PARTICIPANTS SUCH AS ABUSE AND ACCIDENTAL POISONING. IN 2013, GROUP HEALTH DISPOSED OF OVER 19,000 POUNDS OF UNUSED MEDICATIONS. THROUGH SPONSORSHIP OF THE UNITED WAY LOANED EXECUTIVE PROGRAM, GROUP HEALTH CONTRIBUTES TO LEADERSHIP DEVELOPMENT AND TRAINING FOR COMMUNITY MEMBERS. GROUP HEALTH'S SUPPORT MAKES AVAILABLE A LOANED EXECUTIVE IDENTIFIED BY THE UNITED WAY, WHICH EDUCATES CURRENT AND FUTURE DONORS ABOUT HUMAN SERVICE NEEDS IN THE COMMUNITY. GROUP HEALTH ADVOCATES COMMUNITY HEALTH IMPROVEMENT THROUGH A "WALK AND TALK" PROGRAM OPEN TO MEMBERS, EMPLOYEES AND MEMBERS OF THE COMMUNITY. AT SIX GROUP HEALTH CLINICS THROUGHOUT OUR WESTERN WASHINGTON SERVICE AREA, PEOPLE ARE INVITED TO JOIN A MEMBER OF THE HEALTH TEAM TO RECEIVE A QUICK HEALTH TIP AND JOIN OTHER WALKERS FOR A 30-45 MINUTE WALK IN THE AREA OF THE CLINIC. GROUP HEALTH ALSO ORGANIZED AND OPERATED A FITNESS NETWORK THAT ENCOURAGED AND INCENTIVIZED THE COMMUNITY TO PARTICIPATE IN PHYSICAL ACTIVITY AND DEVELOPED AND PILOTED A WEB-BASED PORTAL CALLED NEIGHBORHOOD HEALTH LINK WHICH CONTAINS COMMUNITY PROGRAMS AND ORGANIZATIONS THAT SUPPORT HEALTHY LIVING, SPECIFICALLY PHYSICAL ACTIVITY, HEALTHY EATING, AND CHRONIC DISEASE MANAGEMENT. NEIGHBORHOOD HEALTH LINK IS AVAILABLE IN THE CLINICAL SETTING TO LINK PATIENTS TO THESE RESOURCES AND TO THE COMMUNITY TO LOCATE RESOURCES FOR THEMSELVES AND THEIR FAMILIES. PART III, LINE 2, BAD DEBT EXPENSE METHODOLOGY BAD DEBT IS RECORDED WHEN A PATIENT WHO IS DETERMINED TO HAVE THE FINANCIAL CAPACITY TO PAY FOR SERVICES IS UNWILLING TO SETTLE THE BILL. BAD DEBT ASSIGNMENTS INCLUDE STANDARD: -PATIENTS/GUARANTORS WHO DO NOT PAY FOR LEGITIMATE SERVICES AFTER 3 STATEMENTS 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 ARRANGEMENT THE FOLLOWING IS THE BAD DEBT POLICY: -IF NO PAYMENT IS RECEIVED AFTER THE THIRD STATEMENT, AND THE BALANCE IS AT LEAST 15 DAYS AFTER THE 3RD CYCLE BILL DATE AND NOT MORE THAN 90 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. -AFTER BAD DEBT ASSIGNMENT, SPONSORED CARE IS OFFERED BY AGENCY IF PATIENT CONTACTS THEM AND STATES THEY CANNOT PAY. PART III, LINE 4, BAD DEBT EXPENSE BAD DEBT EXPENSE IS DESCRIBED IN THE AUDITED FINANCIAL STATEMENT FOOTNOTES ON PAGE 9 UNDER SECTION (F) ACCOUNTS RECEIVABLE AND (G) 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 AFTER THREE 30 DAY BILLING CYCLES HAVE PASSED WITHOUT PAYMENT. 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 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 PUGET SOUND HEALTH ALLIANCE, KING COUNTY HOSPITALS FOR HEALTHIER COMMUNITIES, THE BREE COLLABORATIVE, THE COMMUNITY TRANSFORMATION GRANTS STEERING COMMITTEES AND THEIR TEAMS, YOUTHCARE, YMCA, ALLIANCE FOR EDUCATION AND THE WASHINGTON CHILDREN'S ALLIANCE 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 ARE BRINGING 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 HAS TWO FINANCIAL ASSISTANCE PROGRAMS WHICH ARE ADMINISTERED AS THE SPONSORED CARE PROGRAM. 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. 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 GROUP HEATLH INFORMS PATIENTS ABOUT SPONSORED CARE AS FOLLOWS: 1. GROUP HEALTH DISPLAYS POSTERS AT THE MAIN ENTRANCES OF GROUP HEALTH HOSPITAL, AT THE HOSPITAL'S URGENT CARE CENTER AND AT ITS LABOR/DELIVERY UNIT. EACH POSTER INFORMS PATIENTS THAT THEY MAY BE ELIGIBLE FOR FREE CARE IN SEVEN DIFFERENT LANGUAGES. DESK CARDS AT THE RECEPTION AND REGISTRATION AREAS IN THE HOSPITAL REPEAT THE MESSAGE (IN ENGLISH) AND INCLUDE THE FINANCIAL GUIDELINES. 2. GROUP HEALTH HOSPITAL URGENT CARE STAFF PROVIDES FINANCIAL INFORMATION AND ATTESTATION FORMS TO PATIENTS SEEKING CHARITY CARE 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 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. 6. INFORMATION REGARDING GROUP HEALTH FINANCIAL ASSISTANCE IS AVAILABLE ON THE PUBLIC WEBSITE AT https://www1.ghc.org/html/public/customer-service/financial-assistance. PART VI, LINE 4, COMMUNITY INFORMATION GROUP HEALTH'S SERVICE AREAS INCLUDE ALL, OR PARTS OF, 20 COUNTIES IN WASHINGTON AND 2 COUNTIES IN IDAHO. IN THE LAST DECADE, THE MINORITY POPULATION IN WASHINGTON AS A WHOLE GREW FROM 20.6% OF THE STATE POPULATION TO 25.2%. ELEVEN COUNTIES HAVE MINORITY POPULATIONS ABOVE THE STATE AVERAGE. FOR THE COUNTIES IN GROUP HEALTH'S SERVICE AREA, FRANKLIN (51.2%), YAKIMA (45.0%), KING (8.9%), PIERCE (9.2%) AND WALLA WALLA (19.7%) COUNTIES CONSISTENTLY HAVE THE HIGHEST PERCENT OF HISPANIC POPULATIONS. FRANKLIN COUNTY AND YAKIMA COUNTY HAVE THE LARGEST SHARES OF NON-WHITE POPULATIONS. CURRENT DATA INDICATES 49.5% OF WASHINGTON's AFRICAN AMERICAN POPULATION RESIDES IN KING COUNTY AND 22.5% IN PIERCE COUNTY. WITH RESPECT TO THE ASIAN AND PACIFIC ISLANDER POPULATION, 58.6% RESIDE IN KING COUNTY, WITH 9.8% IN PIERCE COUNTY, AND 13.1% IN SNOHOMISH COUNTY. YAKIMA COUNTY'S RANKING AS HOME TO THE SECOND LARGEST CONCENTRATION OF THE AMERICAN INDIAN AND ALASKA NATIVE POPULATION IN 2000 WAS OVERTAKEN BY PIERCE COUNTY IN 2008. GROUP HEALTH SERVES ALL OF THESE COMMUNITIES. THE ETHNIC AND RACIAL MAKEUP OF OUR MEMBERS ARE AS FOLLOWS: CAUCASIAN (80%), AFRICAN AMERICAN/BLACK (3%), ASIAN/PACIFIC ISLANDER (8%), HISPANIC (5%) ALASKA NATIVE/AMERICAN INDIAN (1%) AND OTHER (3%). IN 2013, GROUP HEALTH COOPERATIVE AND ITS WHOLLY-OWNED SUBSIDIARIES, GROUP HEALTH OPTIONS, INC. AND KPS HEALTH PLANS, PROVIDED HEALTH CARE COVERAGE AND SERVICES TO APPROXIMATELY 617,000 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 IN WASHINGTON AND NORTH IDAHO. 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 2013, SPECIFICALLY RELATED TO LOW-INCOME INDIVIDUALS, GROUP HEALTH PROVIDED CARE TO APPROXIMATELY 16,000 HEALTHY OPTIONS (WASHINGTON STATE-MANAGED MEDICAID) PATIENTS AND APPROXIMATELY 4,500 LOW INCOME BASIC HEALTH PATIENTS IN 6 COUNTIES AROUND THE STATE. THIS WAS ACCOMPLISHED THROUGH GROUP HEALTH CONTRACTING TO DELIVER HEALTH CARE SERVICES TO PATIENTS ENROLLED IN MOLINA HEALTHCARE OF WASHINGTON'S HEALTHY OPTIONS AND BASIC HEALTH PLANS. GROUP HEALTH, IN ADDITION, PROVIDED CARE TO MEDICAID FEE-FOR-SERVICE PATIENTS WHO WERE UNABLE TO ACCESS GROUP HEALTH THROUGH THE MANAGED MEDICAID PROGRAM. GROUP HEALTH SERVED APPROXIMATELY 300 OF THESE INDIVIDUALS. IN ADDITION, GROUP HEALTH'S FAMILY BEGINNINGS UNIT (FBU) IN SEATTLE PROVIDES LABOR AND DELIVERY AND NEONATAL INTENSIVE CARE UNIT SERVICES TO MEDICAID PATIENTS, WITH GROUP HEALTH PHYSICIANS AND NURSE MIDWIVES DELIVERING NEWBORNS. CONTRACTS WITH SEVERAL COMMUNITY HEALTH CLINICS AND FEDERALLY QUALIFIED HEALTH CENTERS ALLOW COMMUNITY PROVIDERS TO DELIVER THE PATIENTS OF THESE COMMUNITY CLINICS AT THE FBU, WITH BACK-UP AND SUPPORT PROVIDED BY GROUP HEALTH OB-GYN PHYSICIANS. IN 2013, OVER 1,300 PATIENTS WERE TREATED IN OUR BIRTHING FACILITY, ONE OF THE FEW IN SEATTLE THAT ALLOWS CERTIFIED NURSE MIDWIFE BIRTHING FOR ALL PATIENTS. IN ADDITION, THE FBU WAS AWARDED THE BABY-FRIENDLY HOSPITAL DESIGNATION, ONE OF ONLY TWO CHILDBIRTH CENTERS IN SEATTLE TO RECEIVE THIS ACCOLADE. BABY-FRIENDLY IS A GLOBAL INITIATIVE SPONSORED BY THE WORLD HEALTH ORGANIZATION AND UNICEF. 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-NROLLED LOW-INCOME TEENAGERS AND YOUNG ADULTS. IN 2013, THE TOTAL NUMBER OF PATIENT VISITS WAS 3,092. 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 2013, 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 OVER $51M IN 2013. SINCE GHRI'S INCEPTION IN 1983, GHRI INVESTIGATORS HAVE PUBLISHED MORE THAN 4,000 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 SOME RESEARCH TAKES A LONG TIME TO REACH AND INFLUENCE THE HEALTH CARE SYSTEM ITSELF (I.E. CLINICAL PRACTICE), GHRI INVESTS IN DISSEMINATION AND TRANSLATION ACROSS OUR COMMUNITY. 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 AND EVALUATE GROUP HEALTH'S ADVANCED PRIMARY CARE MEDICAL HOME MODEL, AND IS RESPONSIBLE FOR THE DEVELOPMENT OF THE CHRONIC CARE MODEL. 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. GROUP HEALTH ENGAGES IN A VARIETY OF HEALTH PROMOTION ACTIVITIES. GROUP HEALTH PHYSICIAN AND STAFF VOLUNTEERS PROVIDED NO-COST MEDICAL SUPPORT AT MEDICAL TENTS SET UP AT THE SITES OF SEVERAL ACTIVITIES AND EVENTS WITH WIDE PUBLIC PARTICIPATION. THIS SUPPORT RANGED FROM BASIC FIRST AID TO ADVANCED MEDICAL SUPPORT AND STABILIZATION FOR PARTICIPANTS NEEDING TO BE TRANSFERRED TO A HIGHER LEVEL OF CARE. GROUP HEALTH ALSO ACTIVELY PROMOTES HEALTHY LIFESTYLES BY SPONSORING ACTIVITIES HOSTED BY ORGANIZATIONS SUCH AS THE CASCADE BICYCLE CLUB AND THE YOUTH PROGRAMS OF THE YMCA DESIGNED TO HELP AT-RISK YOUTH AND LOW INCOME COMMUNITIES STAY SAFE AND HEALTHY AND ACCESS RESOURCES TO IMPROVE THEIR HEALTH. 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. THE SCHOOL-BASED CENTERS SERVED APPROXIMATELY 3,700 STUDENTS IN 2013 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 HOSTED TWO CONTINUING MEDICAL EDUCATION CONFERENCES IN 2013 TO LEADERS IN TACOMA ON IMPROVING CLINICAL OUTCOMES AND BETTER MANAGEMENT OF COSTS FOR PATIENTS IN OUR REGION WHO HAVE HYPERTENSION, HYPERLIPIDEMIA AND TYPE 2 DIABETES AND IN SPOKANE ON MANAGING ACUTE INJURY AND CHRONIC PAIN OF THE KNEE. THESE CONFERENCES WERE OPEN TO NON-GROUP HEALTH COMMUNITY HEALTH LEADERS FOR FREE OR REDUCED COST. 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 ORGANIZATION 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 REDUCE PARENTAL HESITANCY RELATED TO CHILDHOOD VACCINATION. GROUP HEALTH COOPERATIVE HAS AN EXCLUSIVE CONTRACT WITH GROUP HEALTH PERMANENTE, P.C., A GROUP PRACTICE WITH OVER 900 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 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. IN ADDITION TO THE ABOVE-MENTIONED PROGRAMS IN WASHINGTON STATE, IN 2013, 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 HAS INNOVATIVE NEW APPROACHES TO CARE AND ITS CLEAR CARE HMO MEDICARE ADVANTAGE PLANS HAVE CONTINUED TO RECEIVE THE HIGHEST RATING FROM CMS (5-STAR RATING) SINCE 2012. THIS HAS INCLUDED BEING A NATIONAL LEADER IN THE WIDESPREAD ADOPTION OF ELECTRONIC MEDICAL RECORDS, FOCUS ON PREVENTION AND 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. 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. GROUP HEALTH IS A LEADER IN THE WASHINGTON STATE HEALTH ALLIANCE, WHICH PUBLICLY AND TRANSPARENTLY REPORTS PROVIDER QUALITY MEASURES THROUGH ITS COMMUNITY CHECKUP. 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 CEO & PRESIDENT 968017 0 275684 0 172775 0 -43400 0 24806 0 1397882 0 0 0 BARBARA ANN BELT-LLOYD CONTROLLER & EXEC DIR; FIN OPS 215403 0 24786 0 0 0 20370 0 16736 0 277295 0 0 0 SCOTT BOYD VP; FINANCE 379726 0 117716 0 109086 0 5100 0 4999 0 616627 0 0 0 BRETON CLARK MYERS ASST TREASURER 239462 0 26863 0 0 0 5066 0 6747 0 278138 0 0 0 RICK DALE WOODS EVP & GENERAL COUNSEL 487235 0 123796 0 49346 0 205938 0 13513 0 879828 0 0 0 SARAH BARIAN YATES VP & DEPUTY GENERAL COUNSEL 333121 0 55631 0 29903 0 5100 0 19840 0 443595 0 0 0 ELLEN SUZANNE DALY VP; NTWRK SVC & PROVDR RELTNS 299447 0 52482 0 3690 0 5100 0 25404 0 386123 0 0 0 CYNTHIA JOHNSON EVP; HR 392709 0 92506 0 46472 0 5100 0 9079 0 545866 0 0 0 LAURA MCMILLAN VP; STRAGIC PLANNING & DEPLO 249891 0 44354 0 28260 0 -42206 0 4146 0 284445 0 0 0 ROBERT O'BRIEN EVP; HEALTH PLAN DIVISION 670114 0 170486 0 254933 0 5000 0 17088 0 1117621 0 0 0 MARK SZALWINSKI EVP; GROUP PRACTICE DIVISION 519409 0 363782 0 10914 0 52395 0 25533 0 972033 0 0 0 RANDY BARKER VP; APPLE DIVISION 327451 0 55635 0 31215 0 3037 0 8506 0 425844 0 0 0 DEBORAH HUNTINGTON VP; SALES 288305 0 55618 0 31925 0 5100 0 19657 0 400605 0 0 0 ERIC LARSON VP; GROUP HEALTH RESEARCH INST 341457 0 71911 0 40931 0 5000 0 10309 0 469608 0 0 0 ERIN LEFF VP; CONSULT SPEC & AC SVCS 290693 0 57207 0 64068 0 5100 0 8806 0 425874 0 0 0 LAURA REHRMANN VP; COMMUNITY RESPONSIBILITY 282364 0 55590 0 41997 0 4601 0 7020 0 391572 0 0 0 RICHARD EDWARD MAGNUSON EVP; CHIEF FINL & ADM OFFICER 276000 0 0 0 11157 0 0 0 0 0 287157 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 2013. FIRST CLASS TRAVEL EXPENSE IS NOTE 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 THE PRESIDENT AND CEO'S 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 PURPOSE. SEVERANCE PAYMENT SCHEDULE J, PART 1, LINE 4A THE GROUP HEALTH PRESIDENT AND CEO, THE EXECUTIVE VICE PRESIDENTS, AND THE VICE PRESIDENTS ARE EACH PARTIES TO WRITTEN EMPLOYMENT AGREEMENTS WITH GROUP HEALTH COOPERATIVE THAT PROVIDE FOR SEVERANCE BENEFITS UNDER CERTAIN CONDITIONS. THE PRESIDENT AND CEO'S EMPLOYMENT AGREEMENT IS APPROVED BY THE COMPENSATION COMMITTEE OF THE BOARD OF TRUSTEES. EXECUTIVES WHO ARE TERMINATED FOR CAUSE, OR WHO ELECT TO TERMINATE THEIR EMPLOYMENT RELATIONSHIP WITHOUT CAUSE (MEANING THEY VOLUNTARILY QUIT), ARE NOT ENTITLED TO SEVERANCE BENEFITS. IN THE EVENT THE EXECUTIVE IS ELIGIBLE FOR SEVERANCE BENEFITS, THE SEVERANCE BENEFITS ARE AS FOLLOWS: SEVERANCE PAYMENTS IN THE MAXIMUM, TOTAL AMOUNT OF TWELVE (12) MONTHS OF BASE SALARY, (EIGHTEEN (18) MONTHS FOR THE PRESIDENT AND CEO), PLUS MEDICAL AND DENTAL COVERAGE (AT THE SAME LEVEL PROVIDED TO THE EXECUTIVE AS OF THE DATE OF SEPARATION) FOR A MAXIMUM OF TWELVE (12) MONTHS (EIGHTEEN (18) MONTHS FOR THE PRESIDENT AND CEO). THESE BENEFITS ARE FORFEITED IF THE EXECUTIVE VIOLATES THE TERMS OF THE NON-COMPETITION, NON-SOLICITATION, AND CONFIDENTIALITY COMMITMENTS IN THE EMPLOYMENT AGREEMENT. FURTHER, WITH RESPECT TO THE EXECUTIVE VICE PRESIDENTS AND VICE PRESIDENTS, THE SEVERANCE PAYMENTS (AND MEDICAL AND DENTAL COVERAGE) WILL CEASE AFTER SIX MONTHS OF THE EXECUTIVE'S SEPARATION DATE IN THE EVENT AND AS OF THE DATE THAT THE EXECUTIVE PROVIDES SERVICES, OR ENTERS INTO AN AGREEMENT TO PROVIDE SERVICES, AS AN EMPLOYEE OR INDEPENDENT CONTRACTOR TO GROUP HEALTH, ANY OF ITS SUBSIDIARIES, GROUP HEALTH PERMANENTE, OR ANY OTHER ORGANIZATION IN A COMPARABLE POSITION (MEANING AN EXECUTIVE LEVEL POSITION WITH COMPENSATION THAT IS AT LEAST 80% OF THE EXECUTIVE'S COMPENSATION AS OF THE SEPARATION DATE). LAST, THE PRESIDENT AND CEO'S EMPLOYMENT AGREEMENT ALSO PROVIDES FOR SEVERANCE PAYMENTS IN THE EVENT OF A CHANGE IN CONTROL, WHICH THE EMPLOYMENT AGREEMENT DEFINES AS (1) THE ACQUISITION BY ANOTHER ORGANIZATION OF OWNERSHIP OR CONTROL OF ALL OR SUBSTANTIALLY ALL OF THE ASSETS OR OPERATIONS OF GROUP HEALTH, BY MERGER, CONSOLIDATION, DISSOLUTION, LIQUIDATION, JOINT VENTURE, PARTNERSHIP, AFFILIATION, MANAGEMENT AGREEMENT, SALE OR TRANSFER OF ASSETS, OR OTHERWISE; (2) A CONVERSION OF GROUP HEALTH TO A STOCK-BASED CORPORATION; (3) A FIFTY PERCENT (50%) OR GREATER CHANGE IN THE COMPOSITION OF THE BOARD OF TRUSTEES THAT OCCURS WITHIN ANY SINGLE CALENDAR YEAR; OR (4) ANY OTHER CHANGE IN THE MANAGEMENT OR OPERATIONAL CONTROL OF GROUP HEALTH THAT IS DETERMINED BY THE GROUP HEALTH BOARD OF TRUSTEES BY MAJORITY VOTE TO BE A CHANGE IN CONTROL FOR PURPOSES OF THE CEO'S EMPLOYMENT AGREEMENT. EXECUTIVE RECEIVING SEVERANCE PAYMENTS IN 2013: RICHARD EDWARD MAGNUSON, EVP, CHIEF FIN'L & ADM OFFICER 276,000 SCOTT BOYD, VP, FINANCE 82,846 RANDY BARKER, VP, APPLE DIVISION 160,385 LAURA MCMILLAN, VP, STRATEGIC PLANNING & DEPLOYMENT 98,154 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 2013 AS FOLLOWS: SERP DISTRIBUTIONS RICHARD EDWARD MAGNUSON, EVP, CHIEF FIN'L & ADM OFFICER 11,157 SCOTT BOYD,VP, FINANCE 2,353 RANDY BARKER, VP, APPLE DIVISION 2,607 LAURA MCMILLAN, VP, STRATEGIC PLANNING & DEPLOYMENT 1,874 SERP CONTRIBUTIONS - VESTED SCOTT ELLIOT ARMSTRONG, CEO & PRESIDENT 145,814 RICK DALE WOODS, EVP & GENERAL COUNSEL 41,642 SCOTT BOYD, VP, FINANCE 104,458 SARAH BARIAN YATES, VP & DEPUTY GENERAL COUNSEL 25,809 ROBERT O'BRIEN, EVP, HEALTH PLAN DIVISION 242,669 CYNTHIA JOHNSON, EVP, HR 32,172 RANDY BARKER, VP, APPLE DIVISION 24,494 LAURA MCMILLAN, VP, STRATEGIC PLANNING & Deployment 19,835 ERIC LARSON, VP, GROUP HEALTH RESEARCH INSTITUTE 29,956 LAURA REHRMANN, VP, COMMUNITY RESPONSIBILITY 24,992 DEBORAH HUNTINGTON, VP, SALES 25,802 ERIN LEFF, VP, CONSULT SPEC & AC SERVICES 61,593 SERP CONTRIBUTIONS - NONVESTED MARK SZALWINSKI, EVP, GROUP PRACTICE DIVISION 47,295 PAYMENTS SUBJECT TO THE INITIAL CONTRACT EXCEPTION SCHEDULE J, PART I, LINE 8 A PORTION OF THE COMPENSATION REPORTED IN PART VII WAS PAID PURSUANT TO A WRITTEN CONTRACT THAT WAS THE INITIAL CONTRACT (WITHIN THE MEANING OF REGULATIONS SECTION 53.4958.4(A)(3)) BETWEEN GROUP HEALTH COOPERATIVE AND AN INDIVIDUAL, BRETON MYERS, WHO WAS NOT A DISQUALIFIED PERSON (WITHIN THE MEANING OF REGULATIONS SECTION 53.4958.3) IMMEDIATELY BEFORE ENTERING INTO THE CONTRACT. THE ORGANIZATION FOLLOWED THE REBUTTABLE PRESUMPTION PROCEDURE IN ESTABLISHING THAT COMPENSATION. A Washington Health Care Facilities Authority 911108929 97978EE24 2006-11-08 99995662 REVENUE BOND 2006 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 TRINITY PLUS 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 COOPERATIVE HAS AN ORGANIZATION-WIDE CONFLICT OF INTEREST POLICY THAT COVERS TRUSTEES, OFFICERS, AND EMPLOYEES. IT ALSO APPLIES TO CERTAIN INDEPENDENT CONTRACTORS WHEN THEY PERFORM WORK ON BEHALF OF GROUP HEALTH. THE POLICY INCLUDES REQUIRED DISCLOSURE PROCEDURES WHICH ARE APPLIED TO ALL GROUP HEALTH TRUSTEES AND GROUP HEALTH OFFICERS. THE AUDIT AND COMPLIANCE COMMITTEE OF THE BOARD IS RESPONSIBLE FOR APPROVING COMPLIANCE PROCEDURES RELATED TO THIS POLICY FOR TRUSTEES AND GROUP HEALTH OFFICERS AND IS DELEGATED NECESSARY AUTHORITY TO APPROVE SUCH PROCEDURES. THESE PROCEDURES INCLUDE: -TRUSTEES AND COOPERATIVE OFFICERS SHALL 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 EVALUATE THE DECLARATIONS AND PROVIDES A SUMMARY OF DISCLOSURES THAT ARE FORWARDED TO THE AUDIT AND COMPLIANCE COMMITTEE FOR 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 AS DESCRIBED BELOW. -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 THIS 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 SHALL 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 SHALL NOT VOTE, TAKE OTHER ACTION, OR USE HIS/HER PERSONAL INFLUENCE ON THE MATTER BEYOND THAT DESCRIBED BELOW. THE MINUTES OF THE MEETING REFLECTS 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 SHALL RAISE 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 ARE REQUIRED TO 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. ANY GROUP HEALTH OFFICER HAVING AN ACTUAL CONFLICT OF INTEREST, OR THE APPEARANCE OF A CONFLICT OF INTEREST, RELATED TO A MATTER AT ISSUE SHALL NOT PARTICIPATE IN THE MATTER OR USE HIS/HER PERSONAL OR PROFESSIONAL INFLUENCE ON THE MATTER. ANY GROUP HEALTH OFFICER 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 SHALL ABSTAIN 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. 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 (AS DEFINED IN THIS POLICY), AND FOR PROVIDING GENERAL GUIDANCE TO GROUP HEALTH MANAGEMENT AND EMPLOYEES REGARDING COMPLIANCE WITH THIS POLICY. THE OFFICE OF COMPLIANCE AND ETHICS WILL CONSULT WITH GROUP HEALTH EXECUTIVE MANAGEMENT TO ENSURE SUPPORT FOR THE IMPLEMENTATION AND ADMINISTRATION OF THIS POLICY. THE CHIEF COMPLIANCE AND ETHICS OFFICER WILL PROVIDE PERIODIC REPORTS TO THE AUDIT AND COMPLIANCE COMMITTEE ON THE IMPLEMENTATION AND ADMINISTRATION OF THIS POLICY. -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 WHO HAVE A GROUP HEALTH MANAGER ARE REVIEWED BY THE KEY PERSON'S DIRECT MANAGER AND BY THE OFFICE OF COMPLIANCE AND ETHICS TO DETERMINE WHETHER OR TO WHAT EXTENT ANY DISCLOSED ACTIVITY MAY BE UNDERTAKEN. THE DISCLOSURE STATEMENTS OF KEY PERSONS WHO DO NOT HAVE A GROUP HEALTH MANAGER (TRUSTEES, THE PRESIDENT AND CEO) WILL BE REVIEWED BY THE OFFICE OF COMPLIANCE AND ETHICS. NOT EVERY POTENTIAL CONFLICT OF INTEREST SITUATION WILL WARRANT ACTION. -COVERED PERSONS NOT CONSIDERED KEY PERSONS MAY ALSO BE ASKED TO COMPLETE ANNUAL DISCLOSURE STATEMENTS. 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, 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 INDIVIDUAL AND ORGANIZATIONAL 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 2013 OFFICES AND POSITIONS FOR WHICH THE ABOVE-DESCRIBED PROCESS WAS USED TO ESTABLISH COMPENSATION FOR THE PERSONS WHO HELD THESE POSITIONS: PRESIDENT & CEO; VICE PRESIDENT (VP), ADMINISTRATIVE SERVICES DIVISION; VP, FINANCE; INTERIM VP AND CHIEF FINANCIAL OFFICER; EXECUTIVE VICE PRESIDENT (EVP), GROUP PRACTICE DIVISION; VP, NETWORK SERVICES & PROVIDER RELATIONS; EVP, GROUP PRACTICE DIVISION; VP, SALES; EVP, HUMAN RESOURCES; VP, GROUP HEALTH RESEARCH INSTITUTE; VP, CONSULTATIVE SPECIALTY & MARKET DEVELOPMENT; VP, CHIEF TECHNOLOGY OFFICER; VP, PUBLIC AFFAIRS; VP, MARKETING; EVP & CHIEF FINANCIAL OFFICER; VP, STRATEGIC PLANNING, DEPLOYMENT & BUSINESS DEVELOPMENT; EVP, HEALTH PLAN DIVISION; VP, COMMUNITY RESPONSIBILITY; VP, CLINICAL EXCELLENCE & NURSING OPERATIONS; INTERIM VP, PRIMARY CARE & NURSING; VP, PRIMARY CARE, CLINICAL EXCELLENCE & NURSING; VP, EMPLOYEE & LABOR RELATIONS; EVP, CHIEF LEGAL OFFICER & ADMINISTRATIVE SERVICES; VP & GENERAL COUNSEL; VP, DELIVERY SYSTEM SUPPORT SERVICES & CHIEF MEDICAL INFORMATICS OFFICER; 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 HUMAN RESOURCES OPERATIONS; AND VP, HUMAN RESOURCES BUSINESS SOLUTIONS. THIS PROCESS WAS ALSO USED IN 2012. 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 $(51,825) CAPITAL DUES $(69,454) TEMP RESTRICTED $1,781,435 PERM RESTRICTED $1,111,670 OTHER COMPREHENSIVE INCOME $146,627,569 RETAINED EARNINGS $50,561,633 ------------ TOTAL OTHER CHANGES IN NET ASSETS $199,961,028 Columbia Medical Associates LLC 1003 East Trent Suite 150 Spokane WA 99202 200986848 COMP MED CARE WA 19841451 5913969 GHC Columbia Clinic LLC 1003 East Trent Suite 150 Spokane WA 99202 Inactive WA CMA LLC Group Health Foundation 320 Westlake Ave N Ste 100 Seattle WA 98109 911246278 Foundation WA 501(C)(3) 7 GHC true Group Health Northwest 320 Westlake Ave N Ste 100 Seattle WA 98109 911216856 Inactive WA 501(C)(3) 11, TYPE I GHC true Group Health Options Inc 320 Westlake Ave North Suite 100 Seattle WA 981095233 911467158 Insurance WA GHC C Corp 897993307 219372981 1.00000 true KPS Health Plans 400 Warren Ave Bremerton WA 98337 910540525 Insurance WA GHC C Corp 115373711 40798021 1.00000 true Group Health Services Inc 320 Westlake Ave North Suite 100 Seattle WA 981095233 911392222 Inactive WA GHC C Corp 1.00000 true Group Health of Washington 320 Westlake Ave North Suite 100 Seattle WA 981095233 911314907 Inactive WA GHC C Corp 1.00000 true true true true false false false false false false false false true false true false false false false false Group Health Options Inc L 308111449 FMV Group Health Options Inc A 16643 FMV KPS Health Plans L 3048627 FMV Group Health Foundation C 1401479 CASH COLUMBIA MEDICAL ASSOCIATES LLC B 5600000 CASH COLUMBIA MEDICAL ASSOCIATES LLC L 766088 CASH