2014-01-10T15:03:03-06:00 2013-06-30 Coles Reinstein PLLC Accounting and Consulting Boise ID 83706 990 2012-07-01 237455145 Healthwise Incorporated HEAL 2083451161 PO Box 1989 Boise ID 837011989 A James Balkins III 2083451161 2014-01-08 1 S JASON COLES MBA CPA P00455119 2083452350 2012 2015-11-30 17:44:51Z Donald W Kemper PO Box 1989 Boise ID 837011989 30397080 0 X www.healthwise.org X 1975 ID See Schedule O. 9 7 259 0 0 0 0 0 4875 4875 44101 48221 27403030 28316865 27452006 28369961 0 0 0 0 22996200 23787142 0 0 0 4318335 5184607 27314535 28971749 137471 -601788 22614074 20876089 4634468 3522341 17979606 17353748 X The Healthwise mission is to help people make better health decisions. Healthwise provides high quality consumer health information, educational solutions and tools to individuals through their hospitals, clinics, disease management organizations, government agencies, health portals and book sellers. Healthwise also advocates for policies and practices that encourage and support the active role of individuals in managing their health and promoting their own health. 0 0 24144252 28321740 See Schedule O 24144252 1 0 0 1 0 0 0 0 0 0 1 0 0 0 0 0 1 0 0 1 1 0 0 0 0 0 0 0 0 1 0 0 0 0 0 0 1 0 0 0 0 0 0 0 0 0 0 1 73 0 1 259 1 0 0 0 0 0 0 0 0 0 0 X 9 7 1 0 1 0 0 0 0 1 1 0 0 1 1 1 1 1 1 1 1 0 X Eileen Casal General Counsel 2083451161 2601 N Bogus Basin Road Boise ID 83702 Donald W Kemper 50.00 X X 373973 0 130203 Dr Steven Schneider 2.00 X 14411 0 0 Richard A Skinner 2.00 X X 0 0 0 Edward B Gellert 2.00 X 0 0 0 Archie Clemins 2.00 X 0 0 0 Jim Everett 2.00 X 0 0 0 Dr Ted Epperly 2.00 X 0 0 0 Kristi Saucerman 2.00 X 0 0 0 Daina Middleton 2.00 X 0 0 0 Patricia Raino 2.00 X 0 0 0 Ruth Prince 2.00 X 0 0 0 James V Giuffre 50.00 X 275606 0 100766 Dr Martin Gabica 50.00 X 256493 0 54334 A James Balkins III 41.00 X 216874 0 48603 Neal Benz 50.00 X 208412 0 32211 Eileen Casal 50.00 X 233568 0 37741 Molly Mettler 32.00 X 110627 0 16947 Karen Baker 50.00 X 198888 0 27347 Leslie Kelly-Hall 50.00 X 187571 0 30503 Mitzi Jensen 50.00 X 176898 0 19763 Carol Casler 50.00 X 114095 0 17890 Robert Long 50.00 X 162568 0 20159 Phyllis Royston 50.00 X 128476 0 16693 Jason Burum 50.00 X 208723 0 24416 Kevin Harbauer 50.00 X 146313 0 30009 Miriam Beecham 50.00 X 103191 0 34736 Stephen Arnt 50.00 X 150641 0 29936 Ken Long 50.00 X 130920 0 30356 Christine Calhoun 50.00 X 110195 0 29483 Russell Van Horne 50.00 X 107051 0 13894 Michael Lauber 50.00 X 291006 0 38340 Brigid Runyon 50.00 X 213992 0 16122 Dr Adam Husney 50.00 X 170292 0 28517 Dr Kathleen Romito 50.00 X 153403 0 29948 Debbie Johnson 50.00 X 146960 0 33044 David Mink 50.00 X 146320 0 31745 James Watkins 50.00 X 155098 0 19366 4892565 0 943072 43 0 1 0 Slalom Consulting PO Box 84904 Seattle WA 981246204 Consulting Services 104857 1 Book training/consulti 511130 4875 4875 4875 48221 48221 30326666 2027119 28299547 28299547 Misc. License Fees/Cha 900099 10172 10172 Honoraria 900099 6000 6000 Customer Finance Charg 900099 1009 1009 137 137 17318 28369961 28321740 0 48221 X 4007724 2696373 1311351 15661126 13599273 2061853 935666 813157 122509 1868436 1486214 382222 1314190 1119118 195072 41786 413 41373 28521 28521 5958 5958 1138386 918838 219548 82048 80775 1273 100960 24715 76245 1207296 211 1207085 478178 1853 476325 736136 644833 91303 259047 245576 13471 822216 822216 81330 81330 Publications and Subscr 78587 51372 27215 Memberships and Dues 55471 38152 17319 Staff Procurement 27003 1547 25456 Expendable Furniture an 21457 21457 20227 2421832 -2401605 28971749 24144252 4827497 0 2160112 2706132 3730927 2734681 2749399 3006539 65953 57123 384020 620727 16676996 5966489 11246801 10710507 1924432 894679 352430 145701 22614074 20876089 2616935 2601919 1484075 920422 533458 4634468 3522341 X 17979606 17353748 17979606 17353748 22614074 20876089 -601788 -24070 0 X 0 1 X 1 0 X 225 225 28146995 27224776 28484153 30522297 30341850 144720071 28146995 27225001 28484153 30522297 30341850 144720296 0 12367159 12423914 10921113 11867040 9744392 57323618 12367159 12423914 10921113 11867040 9744392 57323618 87396678 103223 21223 23531 51801 54221 253999 103223 21223 23531 51801 54221 253999 2227 858 623 1009 4717 28252445 27246224 28508542 30574721 30397080 144979012 0.60280 0.57980 0.00180 0.00310 X Schedule A, Part IV, Supplemental Information: Form 990, Schedule A, Part III, Line 12 - Explanation for Other Income: Customer Finance Charges 1995 1995 28971749 28973744 1000000 250000 0 0 1000000 1000000 1000000 1000000 4000000 6000000 737 1995 2732 250000 250000 250000 250000 1000000 1500000 Part IV, Supplemental Information: Part II-A, Line 1f - The nontaxable lobbying amount is determined from the table in section II-A and is based on our "other exempt purpose expenditures" of $28,973,744 as reported on Line 1e. 1275909 1275909 11925230 3365072 8560158 3475857 2601417 874440 10710507 28345891 -24070 -24070 28369961 0 28369961 28971749 0 28971749 0 28971749 North America 0 30 Program Services Health Info/Tools 48878 North America 0 0 Program Services Travel Expenses 9000 Europe 0 1 Program Services Health Info/Tools 785 South Asia 0 0 Program Services Health Info/Tools East Asia & Pacific 0 0 Program Services Health Info/Tools Sub-Saharan Africa 0 0 Program Services Health Info/Tools 0 31 0 0 0 31 58663 0 58663 0 0 0 0 0 0 Method Used to Acccount for Expenditures: Schedule F, Part I, Line 3: Healthwise, as part of its exempt mission, licenses its consumer health information to various organizations and governments in Canada, Western Europe, India, Australia and South Africa. As part of our licensing we have various arrangements (e.g. independent contractors) for medical review and consulting services related to our health content. These expenses are offset by licensing of Healthwise intellectual property, including health information content. From time to time, Healthwise will have employees from the U.S. travel to our clients in Canada and other countries. All amounts listed reflect expenditures only, as we do not have any investments in these regions. X X X X 0 1 0 1 0 0 0 1 0 Donald W Kemper 329620 0 44124 0 229 0 117500 0 12703 0 504176 0 0 0 James V Giuffre 245290 0 30058 0 258 0 82289 0 18477 0 376372 0 0 0 Dr Martin Gabica 241450 0 14647 0 396 0 31854 0 22480 0 310827 0 0 0 A James Balkins III 194071 0 22407 0 396 0 28701 0 19902 0 265477 0 0 0 Neal Benz 190520 0 17496 0 396 0 13735 0 18476 0 240623 0 0 0 Eileen Casal 219572 0 13582 0 414 0 28649 0 9092 0 271309 0 0 0 Karen Baker 181329 0 16767 0 792 0 12235 0 15112 0 226235 0 0 0 Leslie Kelly-Hall 171047 0 15750 0 774 0 12432 0 18071 0 218074 0 0 0 Mitzi Jensen 157057 0 19703 0 138 0 11139 0 8624 0 196661 0 0 0 Robert Long 152858 0 9155 0 555 0 10518 0 9641 0 182727 0 0 0 Jason Burum 157389 0 51172 0 162 0 8109 0 16307 0 233139 0 0 0 Kevin Harbauer 137823 0 8190 0 300 0 7988 0 22021 0 176322 0 0 0 Stephen Arnt 113664 0 36916 0 61 0 8332 0 21604 0 180577 0 0 0 Ken Long 116514 0 14056 0 350 0 8153 0 22203 0 161276 0 0 0 Michael Lauber 62365 0 228221 0 420 0 16143 0 22197 0 329346 0 0 0 Brigid Runyon 89440 0 124408 0 144 0 14983 0 1139 0 230114 0 0 0 Dr Adam Husney 160581 0 9622 0 89 0 10046 0 18471 0 198809 0 0 0 Dr Kathleen Romito 143925 0 9388 0 90 0 10419 0 19529 0 183351 0 0 0 Debbie Johnson 58434 0 88164 0 362 0 10167 0 22877 0 180004 0 0 0 David Mink 60087 0 86053 0 180 0 10529 0 21216 0 178065 0 0 0 James Watkins 117217 0 37742 0 139 0 8346 0 11020 0 174464 0 0 0 Supplemental Information Part III Part I, Line 4b: On May 5, 2011 the Organization entered into a retention agreement with the CEO to provide incentive compensation to further continue his employment with the Organization. Under the terms of the agreement, the Organization will pay the CEO a lump sum of $500,000 provided he remains continuously employed until April 15, 2016. An additional payment of $100,000 will be provided to the CEO based on his continued employment through April 15, 2017. Schedule J, Column C and Part VII, Section A, Form 990 include $100,000 of accrued compensation for the calendar year 2012. On July 22, 2011 the Organization entered into a retention agreement with its President and Chief Operation Officer (COO) to provide incentive compensation to him to continue his employment with the Organization. Under the terms of this agreement, the Organization will pay the COO a lump sum payment of $300,000 provided he remains employed by the Organization through July 15, 2017. Schedule J, Column C and Part VII, Section A, Form 990 include $50,000 of accrued compensation for the calendar year 2012. Part I, Line 5a: In order for Healthwise to meet its mission of maximizing delivery of consumer health information and tools, Healthwise works with a variety of organizations that are active in the field of health education ranging from other nonprofit organizations to for-profit web portals. In order to accomplish this exempt mission, a small number of our employees (less than 5%) are charged with the assignment of enhancing our distribution through building relationships with these organizations. These Healthwise employees' compensation is based partially on the results of their efforts tied to gross revenues received. It should be noted that none of the compensation is paid on net revenue. The setting of these employees' total compensation is reviewed carefully in comparison to market studies as benchmarks for reasonableness. Part I, Line 7: In the course of fulfilling its exempt mission, Healthwise endeavors to measure its mission accomplishment through tracking of mission points. Mission points are not tied to gross or net revenue. Annually, the Board determines if any additional compensation above the employees' base remuneration is to be paid based on mission accomplishment as measured by mission points - the fulfillment of mission efforts through the development of new health information materials and other mission criteria. This compensation is discretionary by the Board and is therefore considered non-fixed. If the mission accomplishment is achieved, then the Board takes into account the financial capabilities of Healthwise to pay such additional compensation so as not to jeopardize its operating ability, as well as reviews total compensation to assure that all compensation falls within the reasonable remuneration factors as a tax-exempt organization. Once the Board establishes if there will be a payment and determines the percentage of base pay used to calculate such payment, then the formula used to determine the payment is applied to all employees, including officers. When paid, the amount of such mission based remuneration is a percentage of the employee's compensation. Certain officers of Healthwise are eligible for this additional compensation based on a multiplier of up to 2.2 times the Board approved percentage. Molly Mettler Officer/Family 110627 Employment 0 Molly Mettler is a family member of Don Kemper, CEO. She is also an officer of the organization. Form 990, Part I, Question 1: The greatest untapped resource in health care is the consumer. Healthwise is helping to tap it over 160 million times a year. We are systematically expanding the role of the patient in health care to do more for themselves and to share with their doctors in developing care plans and making medical decisions. Founded in 1975 with the simple mission "to help people make better health decisions," Healthwise has become the world's most widely used source of unbiased, evidence-based consumer health information. The premise for Healthwise's mission is even more applicable today than it was in 1975. Healthwise has stood true to its objectives and purposes stated in its formation documents, including: To plan, develop, evaluate and promote practical health education programs that can play an important role in helping the individual: 1. To understand his/her health and how to preserve it. 2. To understand the nature of various diseases. 3. To make intelligent use of available health services. 4. To improve his/her behavior regarding health-affecting practices and activities. In 2012 people turned to Healthwise information and tools over 160 million times. Through the use of its books and other print materials, point-of-care patient education, online Healthwise knowledgebase, interactive multimedia virtual-coaching conversations, ongoing behavior change programs, and other materials, Healthwise helps people take a more active role in their health and health care. Healthwise information and tools help people self-manage chronic disease, provide self-care for minor and acute problems, and participate in shared decision-making with their health care providers for critical treatment options. Healthwise works with a broad network of organizations throughout the U.S., Canada and the world. Hospitals, health plans, consumer health portals, disease management companies, clinics, electronic medical records companies, and government agencies provide Healthwise information to their patients, members and the general public. Historically, Healthwise's funding has come from government contracts, foundation grants, donations, and largely, license fees charged to its distribution network of hospitals, clinics, health plans and health websites. All funds are reapplied to the pursuit of the Healthwise health education-focused mission. Nearly all people who access Healthwise information are provided the materials free of charge by the sponsoring organization. Healthwise is a not-for-profit organization based in Boise, Idaho. Healthwise has been nationally recognized not only for the quality of its content, but also for the quality of its workplace culture. Those interested in learning more about Healthwise are invited to visit its web site at www.healthwise.org Form 990, Part III, Question 4a: Everything Healthwise does is in support of our mission to help people make better health decisions. Our focus is on getting the right information and tools to the right person at the right time to help them do three things critical to the improvement of health care in America: 1. To help them provide as much care for themselves as they can do. This includes medical self-care and wellness activities along with navigating the health care system. 2. To help them ask for the care they need. We give the patient plain-language guidelines for when medications, treatments and tests are recommended for specific medical conditions. 3. To help them say "no" to care that is not right for them. It is often up to the patient to determine when the risks of a treatment outweigh the benefits. In the past year Healthwise information and tools were used over 160 million times by people hoping to take an informed role in their own health care and wellness. Our purpose is achieved every time an individual uses our information and tools to make better health and health care decisions. Form 990, Part VI, Section A, line 2 Donald Kemper, Chairman of the Board and CEO, is married to Molly Mettler, Senior Vice President. Dr. Martin Gabica, CMO, and Dr. Steven Schneider, Director, are both partners in Idaho Wellness Partners, a real estate partnership. Ruth Prince (a current Director of Healthwise) works in the Admissions office of Boise State University. Dr. Ted Epperly and Dr. Steven Schneider are Directors of Healthwise. Dr. Ted Epperly is the Program Director and CEO of the Family Medicine Residency of Idaho (FMRI) and Dr. Steven Schneider occasionally works in the FMRI clinic teaching medical residents and supervising their care. Form 990, Part VI, Section A, line 4 On March 25, 2013, the Board of Directors approved an amendment to the Bylaws that created a staggered Board consisting of three (3) classes and also changed the terms of the Directors from a two (2) year term to an initial phased in term of 1-3 years depending upon the initial class of the Director. After the initial terms for each class, Directors will serve a three (3) year term. Form 990, Part VI, Section B, line 11 Prior to filing the Form 990, each member of the Board of Directors is provided a copy of the Form 990 to review. The directors are encouraged to ask any questions regarding the filing and are given the opportunity to contact the CEO, CFO and/or General Counsel. If a regular board meeting is not scheduled prior to the filing, then at the discretion of the board, if they deem it advisable, a special meeting may be called to discuss the Form 990. Form 990, Part VI, Section B, line 12c All board members, officers and key employees are required to annually review the conflict of interest policy and sign a disclosure form. Form 990, Part VI, Section B, line 15 The following procedures are in place for setting and reviewing CEO, officers and key employees' compensation (no director compensation is paid): 1. Compensation is reviewed and approved by the Board-established Audit, Finance and Compensation Committee (AFC Committee) consisting of disinterested persons. Persons with conflicts of interest are not involved in this review or approval for any position that may involve such conflict. 2. Compensation is reviewed and approved using comparable compensation data for similarly qualified persons in functionally comparable positions at similarly situated organizations. The source data used is based on multiple compensation surveys. 3. There is contemporaneous documentation and record keeping with respect to the deliberations and decisions regarding the compensation arrangements. The documentation includes terms of compensation, members of the committee/board present for the decision and discussion, comparable data used and the basis for the decision made. 4. The Board of Directors has access to all AFC Committee decisions regarding the results of this process and, in addition, the Board directly handles the setting of the compensation for the CEO, Donald Kemper, and his spouse, Molly Mettler, who currently holds the position of Senior Vice President. 5. Additionally, the AFC Committee, under the direction of the Board of Directors, engaged an independent compensation consultant in 2011 to review total compensation for the positions of CEO and COO/President. The AFC Committee received a comprehensive executive compensation study based on competitive review and analysis of current total compensation for the CEO and COO/President positions as compared to published survey data and peer group data. The independent compensation consultant also provided an opinion on the reasonableness of the total compensation packages for the CEO and COO/President. Form 990, Part VI, Section C, line 19 All documents, such as the Form 990 and Articles of Incorporation, are available upon request from the CEO, General Counsel or the CFO's office.