2013-11-15T01:39:48-00:00 2012-12-31 KPMG LLP 1918 8th Avenue Suite 2900 Seattle WA 98101 990 2012-01-01 910565539 Virginia Mason Medical Center VIRG 2062236600 1100 Ninth Avenue Seattle WA 98101 Gary Kaplan 2013-10-21 true Sue Robison 2069134000 2013-10-21 2012 2016-03-07 17:11:31Z Gary Kaplan 1100 Ninth Avenue Seattle WA 98101 1024797520 false X www.virginiamason.org X 1934 WA Medical Centers mission is to improve the health and well-being of the patients it serves through the delivery of high quality, cost-effective care to its patients. The Medical Center provides integrated health services through a teaching hospital and multi-specialty group practice, offering both primary and specialized care. 15 13 6229 1458 22420674 12150645 6179104 6373444 863679342 907479662 14803799 21457664 7676040 8250585 892338285 943561355 7846671 9188382 0 506728697 543601628 0 0 348470951 371421754 863046319 924211764 29291966 19349591 917015772 950291534 598645723 599296962 318370049 350994572 X Virginia Mason Medical Centers the Medical Center mission is to improve the health and well-being of the patients it serves through the delivery of high quality, cost-effective care. The Medical Center provides integrated health services through a teaching hospital licensed for 336 beds and multi-specialty group practice of more than full-time 465 physicians. false false 769553152 915016940 Health Care Services The Medical Center is a tertiary regional referral center which serves a patient community that includes Seattle and its surrounding suburbs, Western Washington and Alaska. The main campus located in Seattle includes a hospital, an outpatient clinic, centers of excellence including the Center for Hyperbaric Medicine, Digestive Disease Institute, Floyd Delores Jones Cancer Institute, Heart Institute, Neuroscience Institute and Urology. The Medical Center also operates seven regional clinics, and Bailey-Boushay House, a 35-bed skilled nursing facility. During 2012, the Medical Center recorded 16,402 hospital inpatient admissions, 23,095 emergency room visits and 828,823 clinic visits. The Medical Center provided charity care and unreimbursed Medicaid services to a total of 5,979 patients. Continued on Schedule O 25373509 4975449 346781 Education and Research The Medical Center is an independent academic medical center with a graduate medical education program that trains over 120 residents in five accredited programs in internal medicine, surgery, transitional year, radiology, and anesthesiology. In addition, the Medical Center trains a number of fellows in areas such as Pain Management and Female Pelvic Medicine/Reconstructive Surgery. The Medical Center is also affiliated with the University of Washington for the training of subspecialities in the areas of anesthesiology, orthopedics, obstetrics, gynecology and urology. The Medical Center also provides training in clinical nursing education, allied health fields, continuing medical education and grand rounds. In addition, the Medical Center conducts medical research through its affiliate Benaroya Research Institute at Virginia Mason, a scientific research institute qualified under Section 501c3 of the Internal Revenue Code. Continued on Schedule O 599394 366526 Community Health Education and Services The Medical Center contributes to improving the health of the community through sponsorship of community health education and services. Community health education includes classes, forums, presentations and other programs held during the day and evening in the Medical Center neighborhood clinic communities and the Seattle main campus. The Buse Diabetes Teaching Center provides a nationally recognized education program which includes classes covering every aspect of diabetes care including how to support long term health lifestyle habits and avoid long-term complications. The education programs are open to everyone with diabetes and their family members. Scholarships are available. In 2012, the Medical Center provided 151,000 of support for the Teaching Center. Continued on Schedule O 4446541 4212933 799972596 true true false true false false false false true true false false true true true false true false false true false false false false false true true true false true true false false false false false false false true true true false false false false true true true false false false true 647 0 true 6229 true true true false false false false false false false false false false X 15 13 true false true false true true true true true false true true true true true true true true true true true true OR GA X MaryAnne Olmstead 2066257371 1100 Olive Way Suite 605 Seattle WA 98101 Carolyn Corvi 002.00 004.00 X X 0 0 0 Joshua Jay Green III 002.00 002.00 X 0 0 0 Tod Hamachek 002.00 002.00 X 0 0 0 Robert Bob Lemon 002.00 004.00 X 0 0 0 Alfred Al E Lopus 002.00 002.00 X 0 0 0 Dorothy H Mann PhD 002.00 002.00 X 0 0 0 David Moffett 002.00 002.00 X X 0 0 0 James Jamie Orlikoff 002.00 004.00 X 0 0 0 Jane Blodgett 002.00 002.00 X 0 0 0 Evelyn Cruz Sroufe 002.00 002.00 X X 0 0 0 Lonnie Edelheit PhD 002.00 002.00 X 0 0 0 James Jim Young 002.00 004.00 X X 0 0 0 Julie Morath RN 002.00 002.00 X 0 0 0 Richard Rich Martinez 002.00 002.00 X 0 0 0 Kristi Pangrazio 002.00 003.00 X 0 0 0 Gary Kaplan MD 050.00 005.00 X 1507637 0 2230266 Suzanne Anderson 050.00 004.00 X 669322 0 74812 Katerie Chapman 050.00 X 313402 0 35662 Lucy Glenn MD 050.00 X 696867 0 81990 Michael Glenn MD 050.00 X 795984 0 101409 Fred Govier MD 050.00 X 777150 0 63230 Andrew Jacobs MD 050.00 001.00 X 612928 0 149065 Joyce Lammert MD 050.00 001.00 X 564202 0 48492 Sarah Patterson 050.00 004.00 X 912497 0 157715 William Poppy 050.00 X 504788 0 58642 Steve Rupp MD 050.00 X 614933 0 56147 Donna Smith MD 050.00 X 518011 0 89942 Charleen Tachibana RN 050.00 X 493978 0 72823 James P Cote 050.00 X 419751 0 25962 Michael P Ondracek 050.00 X 279682 0 39447 Catherine Potts 050.00 X 388923 0 63617 Christopher L Fellows MD 050.00 X 1152957 0 63438 Ulrike I Ochs MD 050.00 X 988217 0 103070 Richard A Kozarek MD 050.00 X 950916 0 137458 Keith Paige MD 050.00 X 898360 0 61908 Shayan Irani M D 050.00 X 815870 0 32467 Brian McDonald MD 050.00 X 269478 0 36409 Robert Mecklenburg MD 025.00 025.00 X 422861 0 46624 Craig Goodrich 050.00 001.00 X 402867 0 41318 15971581 3871913 1135 true true false Pitney Bowes Management Svc P O Box 840851 Dallas TX 75284 Mail Management Services 1686344 Skanska USA Building Inc 221 Yale Ave N Suite 400 Seattle WA 98109 Construction Services 7998361 Crothall Healthcare Inc 955 Chesterbrook Bld Ste 300 Wayne PA 19087 Staffing Services 12203580 AMN Healthcare Inc 12400 High Bluff Drive San Diego CA 92130 Staffing Services 2273785 Turner Constuction Company 830 4th Ave S Seattle WA 98134 Construction Services 8074297 42 6373444 6373444 Operating Revenues 561499 975339903 966217499 9122404 Medicare/Medicaid payments 621300 295677435 295677435 907479662 17847831 12916978 4930853 -2727 -2727 1312857 961686 351171 351171 123279 227892 83813885 73154 80247692 26787 3566193 46367 3612560 3612560 Cafeteria 722100 3598601 3598601 Parking 721110 4030825 258013 3772812 Medical Records 561499 257470 257470 12518 12518 7899414 943561355 898357258 22420674 16409979 9188382 9188382 0 0 0 13133240 7085181 6048059 0 449280478 389910343 59370135 26117131 22665885 3451246 26630316 23111255 3519061 28440463 24682200 3758263 1686451 1463595 222856 1635347 1635347 487874 487874 133874 133874 0 48740631 42299804 6440827 4303702 3734990 568712 175988389 152732417 23255972 25579837 22199591 3380246 0 20820779 18069419 2751360 3361281 2917105 444176 0 523285 454136 69149 12475665 10827069 1648596 0 39760808 34468693 5292115 1560727 1354485 206242 Taxes 22491794 22491794 Medical Purchase Services 560930 486806 74124 Dues and Subscriptions 2167051 1880686 286365 Bad Debt Expense 103500 103500 9039829 7845260 1194569 924211764 799972596 124239168 0 46140605 36980257 46018726 39350733 95948616 103217332 13052072 13639506 3940998 4014345 899991516 380047341 505919340 519944175 152031866 179166776 722801 53240748 53978410 917015772 950291534 122772702 127449847 43867 52522 328704983 325757212 30737154 29351564 116387017 116685817 598645723 599296962 X 300177790 333336273 14117580 13451315 4074679 4206984 318370049 350994572 917015772 950291534 X 19349591 11488701 1786231 X false true X true false X 0.00000 0.00000 0.00000 RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED X 127874 127874 6000 6000 133874 133874 924077890 984166099 924211764 984299973 1000000 1000000 250000 250000 1000000 1000000 1000000 1000000 4000000 6000000 269422 270061 222311 133874 895668 250001 250000 250000 250000 1000001 1500002 152146 151772 122311 127874 554103 II-A A Virginia Mason Medical Center, EIN 91-0565539, 1100 Ninth Avenue, Seattle, WA 98101. Election Member. Grassroots Lobbying Expenditures 127,874 Direct Lobbying Expenditures 6,000. Excess Lobbying Expenditures 0. Tax year ending December 31, 1998 was the first year in which Virginia Mason Medical Center made the election under Section 501h. The election was not revoked before the start of the tax year ending December 31, 2012. Virginia Mason Medical Center pays membership dues to Washington State Hospital Association, a portion of which was used for legislative and lobbying activities. Virginia Mason Medical Center also pays membership dues to other professional health care organizations, a portion of which may be used for legislative and lobbying activities. II-A A continued Virginia Mason Institute, EIN 26-3763656, 1100 Ninth Avenue, Seattle, WA 98101. Non-electing member. 0 Lobbying Expenditures. Excess Lobbying Expenditures 0. II-A A continued Virginia Mason Health System, EIN 91-1351110, 1100 Ninth Avenue, Seattle, WA 98101. Non-electing member. 0 Lobbying Expenditures. Excess Lobbying Expenditures 0. II-A A continued Benaroya Research Institute at Virginia Mason, EIN 91-0653422, 1201 Ninth Avenue, Seattle, WA 98101. Non-electing member. 0 Lobbying Expenditures. Excess lobbying expenditures 0. false 12043176 100706 1800839 491586 13453135 12672073 -146637 482260 12043176 11663690 20 1423022 414659 12672073 9444928 230704 2265200 277142 11663690 13624798 500931 -4680801 9444928 0.59850 0.27480 0.12660 true false 36370602 36370602 472643791 130192177 342451614 20887902 10120836 10767066 339996885 239112790 100884095 30092336 621538 29470798 519944175 Financial derivatives and other financial products Closely-held equity interests Funds Held By Trustee 37167102 Interest Receivable Swap 200000 Long Term Receivable 384800 BB Cemetry Plots/Niches Donated Assets 19000 Parking Rights 346926 Winthrop Apartment 227800 Equity Investment-HSCA 213734 Deferred Financing Costs 8402680 Partnership Interest in National Purchasing Partners 235256 Beneficial Interest 2612267 Start Up Costs-Madison 9285 Equity Investment in Administrative Resources 3909560 Network Group Purchasing 250000 53978410 Federal income taxes Due to affiliates 2458333 Estimated Third Party Payor Settlement 8568880 Reserve for Professional Liability Claims 14700507 Accrued Retirement Expenses 86295352 Asbestos Abatement 964540 Deferred Rent Credits 3698205 116685817 X 957291265 11488701 7259330 18748031 938543234 5018121 5018121 943561355 923568931 4375288 4375288 919193643 5018121 5018121 924211764 V 4 Support health care mission of Virginia Mason Medical Center and research mission of Benaroya Research Institute at Virginia Mason. X 2 Accounting principles generally accepted in the United States of America require management to evaluate tax positions taken by the Medical Center and recognize a tax liability or asset if the Corporation has taken an uncertain position that more likely than not would not be sustained upon examination by the IRS. Management has analyzed tax positions taken by the Corporation and has concluded that as of December 31, 2012, there are no uncertain positions taken or expected to be taken that would require recognition of a liability or asset or disclosure in the financial statements. The Medical Center is subject to routine audits by taxing jurisdictions however, there are currently no audits for any tax periods in progress. The Medical Centers management believes it is no longer subject to income tax examinations for years prior to 2009. VIII 2d Donated Capital 1,075 Restricted Capital Transfers 3,313,902 Additional Pension Adjustment 1,526,596 Virginia Mason Institute Revenues 3,679,331 Donation Transfers 1,793,768 XI 4b Non-operating expenses 5,419,197 Financial Reclasses 559,403 Rental expenses 961,686 Loss on disposal of equipment 1,207 XII 2d Donation Transfers 1,793,768 Virginia Mason Instutite Expenses 2,581,520 XII 4b Non-operating expenses 5,419,197 Financial Reclasses 559,403 Rental expenses 961,686 Loss on disposal of equipment 1,207 East Asia and the Pacific Program Services Education 24300 Europe Program Services Education 19280 North America Program Services Education 1428 45008 45008 false false false false false false I 3 Expenditures are actual expenses incurred in the region based on individual expense reports and tracking of expenditures by the department. true true X true X true X true true false true true 5979 11042665 11042665 0.01190 4470 30673487 25398725 5274762 0.00570 10449 41716152 25398725 16317427 0.01760 8 1863 906152 58007 848145 0.00090 27 804 10724870 6701964 4022906 0.00440 2 395 429197 125873 303324 0.00030 5681783 5681783 0.00610 37 3062 17742002 6885844 10856158 0.01170 37 13511 59458154 32284569 27173585 0.02930 3 527007 527007 0.00060 3 527007 527007 0.00060 true 5237346 156946640 176526686 -19580046 X true true 1 1 Virginia Mason Medical Center

1100 Ninth Avenue Seattle WA 98101

X X X X A A 1 true true 0000000002.000000000000 true 0000000003.000000000000 true X X X X X true true X X X X X X true true true X false true 8 Virginia Mason Federal Way

33501 First Way S Federal Way WA 98003

Outpatient Clinic Virginia Mason Lynnwood

19116 33rd Ave W Lynnwood WA 98036

Outpatient Clinic Virginia Mason Kirkland

11800 NE 128th St Suite 300 Kirkland WA 98034

Outpatient Clinic Virginia Mason Issaquah

100 NE Gilman Blvd Issaquah WA 98027

Outpatient Clinic Virginia Mason Bellevue

222 112th Ave NE Bellevue WA 98004

Outpatient Clinic Virginia Mason Bainbridge Island

380 Winslow Way E Bainbridge Island WA 98110

Outpatient Clinic Virginia Mason Sand Point Pediatrics

4575 Sand Point Way NE Suite 108 Seattle WA 98105

Outpatient Clinic Bailey Boushay House

2720 East Madison Seattle WA 98112

Skilled Nursing Facility Part I Line 3c Charity Care discounts that are less than 100 will be taken after any uninsured discounts are applied. Additional full or partial Charity Care may be provided to patients with gross family incomes from 201 to 300 of the federal poverty level when circumstances as determined by the Medical Center indicate that full payment may cause financial hardship so as to significantly harm the patient or patients family. Additional full or partial discounts may be provided to patients who are not otherwise eligible for Charity Care, i.e., with gross family incomes above three hundred percent 300 of the federal poverty guidelines adjusted for family size. Such discounts may be provided to patients with catastrophic costs or conditions when circumstances as determined by the Medical Center indicate that full payment may cause extraordinary financial hardship to the patient or the patients family. The Medical Center shall determine, on a case by case basis, whether a patient qualifies as Medically Indigent pursuant to its policy and shall, through Patient Financial Services, determine the amount of the discount, if any. Determinations shall be made expeditiously after submission of financial information by the patient, but shall not be subject to any appeal rights. Part I Line 7 The Medical Center used the direct expenses and revenues of the hospital to calculate the cost-to-charges ratio for the amounts included in the table reflected in Part I. The cost-to-charge ratios used was derived using Worksheet 2, Ratio of Patient Care Cost-to-Charge ratio per the instructions. Part II The Medical Center supports community building activities by providing operational support to a daycare program which provides daycare for vulnerable populations. The Medical Center supported a Day of Caring at non-profit organizations through United Way. The Medical Center supported a medical recuperation program for homeless people who need health services but no longer need hospital-level care for King County. Part III Line 4 The Medical Centers financial statement includes the following statement on estimated uncollectibles The Medical Center provides an allowance for potential uncollectible patient accounts receivable whereby such receivables are reduced to their estimated net realizable value. For accounts receivable associated with patients who have insurance coverage, the Medical Center analyzes contractually due amounts based on aging and other relevant factors, if necessary. For accounts receivable associated with self-pay patients, the Medical Center records an allowance for uncollectible accounts in the period of service based on aging, historical collection experience and other relevant factors. There are various factors that can impact the collection trends, such as changes in the economy, which in turn have an impact on unemployment rates and the number of uninsured and underinsured patients, the increased burden of co-payments to be made by patients with insurance, and business practices related to collection efforts. These factors continuously change and can have an impact on collection trends and the estimation process. The difference between the standard or contractual rates and the amounts actually collected after all reasonable collection efforts have been exhausted is charged off against the allowance for uncollectible accounts. The following information summarizes the change in allowance for uncollectible accounts during the year ended December 31, 2011 Allowance for uncollectible accounts at beginning of the year 4,456,000 Write-offs of accounts deemed uncollectible 9,098,000 Provision for bad debt 9,214,000 Allowance for uncollectible accounts at the end of the year 4,572,000. For the year ended December 31, 2012 Allowance for uncollectible accounts at beginning of the year 4,572,000 Write-offs of accounts deemed uncollectible 10,757,000 Provision for bad debt 10,801,000 Allowance for uncollectible accounts at end of year 4,616,000. Part III Line 8 The Medical Centers calcuation of the Medicare shortfall related to Hospital based inpatient and outpatient services is 19,580,046. The Medical Center employs over 400 physicians who provide professional services to patients which is not covered in this number. In addition, the Medical Center operates satellite clinics and ambulatory surgery centers which are not reported in the Medicare cost report. For all of its patient services, the Medical Center utilizes a comprehensive electronic cost reporting package which uses the directly assigned general ledger costs and allocates all overhead costs to operating costs using a model inspired by the Medicare cost report. This model shows that 42 million of Medicare revenue is not included in the traditional cost report with related costs of 80 million for a shortfall of 38 million primarily due to shortfall of Medicare professional fees versus costs. Part III Line 9b Virginia Masons mission is to improve the health and well-being of the patients we serve. To ensure the Medical Center continues to have the resources to fulfill our mission, we must balance the financial needs of our patients with those of the Medical Center. In all instances, we will treat our patients with dignity, compassion and respect. The Medical Center expects payment in full upon receipt of the patients first billing. Patients will receive monthly Medical Center statements upon determination of the patients private responsibility. A Virginia Mason Clinic statement will be sent representing the professional component of services provided. If services were provided or processed at the downtown campus except the Health Resources Building, which is not licensed as part of the hospital, a Hospital statement will also be sent representing the facility/technical component of services. As outstanding balances age, statement messages dunning, collection letters and/or telephone calls may be used at appropriate intervals as determined by the Medical Center. Delinquent accounts may be forwarded to a third party where a series of collection contacts letters and phone calls will be initiated. Delinquent self pay accounts that have not been paid in full or established an approved installment payment plan may be referred to a collection agency. This occurs approximately 130 days from determination of patient responsibility. Patient Financial Services management team has responsibility for determining under what circumstances a balance may be referred for collection agency resolution. The Medical Center recognizes there are occasions when a patient is not financially able to pay their medical bill in full. Those patients who indicate they are experiencing financial hardship will be offered the opportunity to apply for charity care assistance. Collection activity will be suspended pending eligibility determination. If the patients income is greater than 300 of the current years federal poverty guideline FPG, charity is denied and alternative payment arrangement are discussed. If the patients income is less than 300 of the current years FPG, the patient will complete the charity application and send supporting documentation. If charity determination is approved, the charity care discount is applied to the outstanding account balance based on the FPG determination and a confirmatory letter is sent to the patient. If charity is denied, the Medical Center will send a denial letter to the patient. A summary report of collection activities taken will be provided to the Medical Center Board on an annual basis per the Washington State Hospital Association WSHA guidelines. Part V Line 20 - Virginia Mason is a participant in the Washington State Hospital Association Voluntary Effort on billing to the Uninsured. These guidelines developed in 2007 created a statewide standard for financial assistance consistent with Washington state law which provides that patients with gross family incomes at or below three hundred percent 300 of the federal poverty guidelines FPG adjusted for family size are eligible for charity care according to a sliding fee schedule. The maximum amount charged to FAP-eligible individuals for emergency or other medically necessary care is based on a sliding fee scale determined by FPG. Charity Care discounts that are less than 100 will be taken after a 25 uninsured discount is applied to the gross charges. Patients who are between 201 and 250 of FPG receive an additional 50 discount for a total reduction in charges of 67.5. Patients who are between 251 and 300 receive an additional 30 discount for a total reduction in charges of 52.5. Part VI Line 2 Virginia Mason believes in contributing to the communities where patients and staff work and live. We act on this belief by contributing time, energy and money to efforts that benefit the community in the areas of improving health, providing free and subsidized care, and supporting health professionals education and research. Virginia Mason conducts a Community Health Needs Assessment CHNA every three years. In 2009, the Medical Center enhanced its community needs assessment by utilizing data from Public Health - Seattle and King County, United Way of King County, Snohomish County Health District, Kitsap County Health District, Northwest Area Foundation and Washington State Department of Health Local Public Health Indicators, and the United States Department of Health and Human Services Healthy People 2010 leading health indicators. We partnered with The Center for Community Health and Evaluation CCHE in 2012 to begin building our next CHNA, which included gathering secondary data from a variety of local, state, and federal agencies, including Public Health-Seattle and King County, and conducting key informant interviews with individuals representing public health, city government, the healthcare safety net, cultural communities, schools, and health adovacy. Our CHNA drives our community work and serves as a guideline to help us achieve three basic goals 1 Improve the communitys health status and overall quality of life 2 Reduce health disparities within the community and 3 Increase access to preventive services. Our community benefit program focuses our resources on the needs of the community and the strengths of Virginia. Some examples A Subsidized Health Services 1 Bailey-Boushay House BBH is Americas first skilled nursing facility that has planned, funded, built and staffed to meet the needs of people living with AIDS. In 2012, Virginia Mason provided more than 950,000 in community benefit funding to support BBH. 2 Partnership with Public Health - Seattle and King County Health Care for the Homeless Network and other area hospitals to provide The Edward Thomas Respite Care program for homeless adults in King County. 3 Virginia Mason partners with Project Access Northwest PANW to provide specialty medical care for individuals with limited access to health care services. 4 Emergency Department open to all. 5 Tender Loving Care, a subsidized daycare program for mildly ill children. B. Uncompensated Care As a nonprofit organization, Virginia Mason is committed to serving patients who are uninsured, underinsured or otherwise unable to pay for their medical care. C. Research Virginia Mason conducts medical research through its affiliate, Benaroya Research Institute at Virginia Mason BRI. D. Education 1 Virginia Mason is a premier teaching hospital that offers postgraduate education programs through its Graduate Medical Education Department GME. All GME postgraduate training programs are fully approved by the Accreditation Council on Graduate Medical Education ACGME. 2 Virginia Masons GME program partners with Public Health - Seattle and King County Health Services Division, providing 12 residents for the Eastgate Public Health Center. 3 Virginia Mason provides a 0.5 FTE faculty member every fall, winter and spring quarter for undergraduate clinical nursing instruction for the University of Washington School of Nursing. E. Community Partnerships Virginia Mason is a member of the King County Community Health Needs Assessment Collaborative, a partnership that includes all King County hospitals, Public Health-Seattle and King County, and the Washington State Hospital Association. In addition to collaborating on future CHNAs, this partnership is researching and planning collaborative community benefit activities that will have a greater impact on the health of our community. Part VI Line 2 continued F. Community Health Improvement Services 1 Community health education, such as our bilingual community diabetes prevention program, Nutrition and Fitness for Life program and classes in the Buse Diabetes Teaching Center. 2 Free health screenings and health fair sponsorships in the community. 3 Free flu shots and health screenings for the homeless in conjunction with United Way of King Countys Community Resource Exchange. 4 Sponsorship of many professionally facilitated support groups, including brain tumor, Parkinsons disease, breast cancer, gastric bypass surgery and prostate cancer groups. 5 Bereavement support through our Separation and Loss Services. Because our current and future CHNAs indicate diabetes and obesity to be significant health risks, especially with our most vulnerable populations, Virginia Mason has also developed a comprehensive bilingual diabetes prevention program for the Latino community. This program includes education and outreach at the two largest Latino health fairs each year, interactive presentations six times a month at the Mexican Consulate in Seattle and a one-hour Spanish language radio program on El Ray 1360, with outreach to the entire state. Part VI Line 3 The Medical Center informs and educates patients and persons who may be billed for patient care about their eligibility for assistance under federal, state, or local government programs or under the Medical Centers charity care policy at various points beginning with scheduling and continuing through the patient billing process. At scheduling, if a patient indicates they are without insurance and unable to pay for the services, their account is flagged for a Patient Account Specialist to contact them to discuss assistance. At arrival for an appointment, the Medical Centers admissions lobby areas have signage regarding availability of charity care, a copy of the charity care policy and information regarding who to contact for assistance. During the arrival process, the Medical Centers admissions personnel will confirm ability to pay. If financial need or financial hardship is indicated, the Medical Center Financial Counselors will work with the patient to determine whether Medicaid, state program options, or charity care would be appropriate. The Medical Centers charity policy and financial assistance contact information is also included in patient bills. The Medical Centers Patient Guide to Fees and Billings include information on charity availability and contact information to initiate an assessment. The brochure is available in all patient lobbies for the patient to pick up. The brochure is also sent out by Patient Account Services staff based on a patients expressed concerns either via phone or letter. The Medical Centers website also includes information about charity availability and the contact number to initiate an assessment. Part VI Line 4 In 2011, Virginia Mason served over 230,000 individuals in its hospital and outpatient clinics. Virginia Masons service area encompasses the communities where it facilities are located and where 75 percent of its patients reside King County, the southwest region of Snohomish County, and Bainbridge Island in Kitsap County. Residents of Virginia Mason patients 2011 data are 1 Seattle 51,282 2 East King County 48,577 3 South King County 38,902 4 Northshore 23,962 5 Bainbridge Island 9,074 6 Service area total 171,797 7 Other Western Washington 39,192 8 Eastern Washington 6,932 9 Other Pacific Northwest 4,719 10 Other 7,668 for a total of 230,308. Part VI Line 4 continued The service area population in 2010 was 2,188,175. the age and racial/ethnic profile of the total population of the three counties are as follows King County 1 Total population 1,942,600 2 Under 18 years 21 3 Age 18-64 68 4 65 years or older 11 5 White 65 6 Hispanic 9 7 Black 6 8 Asian 14 9 American Indian/Alaska Native 1 10 Native Hawaiian/Pacific Islander 1 11 Two or more races 4. Kitsap County 1 Total population 253,900 2 Under 18 years 23 3 Age 18-64 64 4 65 years or older 13 5 White 79 6 Hispanic 6 7 Black 3 8 Asian 5 9 American Indian/Alaska Native 1 10 Native Hawaiian/Pacific Islander 1 11 Two or more races 5. Snohomish County 1 Total population 717,000 2 Under 18 years 24 3 Age 18-64 65 4 65 years or older 10 5 White 74 6 Hispanic 9 7 Black 2 8 Asian 9 9 American Indian/Alaska Native 1 10 Native Hawaiian/Pacific Islander 0 11 Two or more races 4. Just under a quarter of residents are under age 18, and over 10 percent are 65 or older. The highest proportion of the population that is nonwhite is in King County. According to the Federal Financial Institutions Examination Council, estimated median family income in 2012 in the Seattle-Bellevue-Everett metropolitan area was 88,000. Within King County, median income was lowest for blacks and American Indians/Alaska natives and in urban south King County. In King County, poverty rates are highest in White Center/Boulevard Park, several central and southeast Seattle neighborhoods and Auburn. Enrollment in the free and reduced price meals programs has increased over the past decade and is highest in the Highline, Tukwila and Skykomish school districts. While unemployment has declined from nearly 10 percent in fall 2010 in the Seattle metropolitan area which includes parts of Snohomish County, it is still higher than before the economic downturn - 7.1 percent in May 2012. Part VI Line 5 Virginia Masons community benefit program is designed to improve our communitys health status and overall quality of life, reduce health disparities within the commounity and increase access to preventive services. To accomplish this, our organization contributes time, energy and money in the areas of improving health, providing free and subsidized care, health professional education and research. Part VI Line 5 continued Uncompensated Care. As a non-profit organization, Virginia Mason is committed to serving patients who are uninsured, underinsured or otherwise unable to pay for their medical care. Under Virginia Masons charity care policy, free or reduced-cost medically necessary care after all health insurance has been exhausted is provided to individuals making up to 300 percent of the federal poverty level in keeping with the Washington State Hospital Association voluntary guidelines on billing the uninsured. In 2012, Virginia Mason provided charity care to 5,979 patients at a cost of 11,042,665. In addition, Virginia Masons unreimbursed Medicaid was provided at a cost of 20,432,319. Part VI Line 5 continued Community Health Improvement Services. Improving health and quality of life extends beyond diagnoisis and treatment. It also requires community health education and outreach services. Health improvement and outreach services provided by Virginia Mason include the following 1 community health education, such as classes in the Buse Diabetes Teaching Center 2 free health screenings at community health fairs 3 free flu shots and health screenings for the homeless in conjunction with United Way of King Countys Community Resource Exchange 4 sponsorship of many professionally facilitated support groups, including diabetes prevention and management 5 bereavement support through our Separation and Loss Services and 6 leadership roles in serveral community organizations, which focus on health care. Part VI Line 5 continued Health Professions Education. Virginia Mason strongly supports medical education to ensure our patients and the community benefit from advances in medical care. Virginia Mason is a premier teaching hospital that offers postgraduate education programs through its Graduate Medical Education Department GME. All GME postgraduate training programs are fully approved by the Accreditation Council on Graduate Medical Education ACGME. Virginia Mason trains more than 120 residents and fellows annually. Virginia Masons GME program is partnered with Public Health - Seattle and King County Health Services Division, providing 12 residents for the Eastgate Public Health Center, as well as providing residents at the Carolyn Downs Family Medical Center, Pike Market Medical Clinic and North Public Health Center. Virginia Masons collaboration with the Eastgate Public Health Center combines the Medical Centers commitment to teaching and community benefit through an innovative public-private program which allows residents to be more involved in the care of the underserved and uninsured. The Eastgate clinic is the largest of three county public health clinics in east King County and offers a variety of primary care services to adults and children. Approximately 50 percent of patients seen at the clinic do not have insurance or the means to pay, and approximately the same percentage do not speak English and require interpretive services. This resident clinic improves overall health in the community and gives back to our community in a meaningful way. Virginia Mason serves as an internship site for students in a variety of other health programs, such as nursing, pharmacy, respiratory therapy and laboratory technology. Also, Virginia Mason provides a 0.5 FTE faculty member every fall, winter and spring quarter for undergraduate clinical nursing instruction for the University of Washington School of Nursing. Part VI Line 5 continued Subsidized Health Services. Every community needs certain health care services that typically cost more to deliver than the provider of these services receives. These subsidized health services include 1 Bailey-Boushay House BBH, a nursing residence and Adult Day Health center for people living with HIV/AIDS and 2 Tender Loving Care, a day-care program for mildly ill children. Part VI Line 5 continued Research. Virginia Mason conducts medical research through its affiliate, Benaroya Reserach Institute at Virginia Mason BRI. BRI is a non-profit biomedical research institute that works to unlock the mysteries of the immune sysstem. Its team of world-renowned scientists is focused on identifying causes and cures for devastating diseases including diabetes, arthritis, heart disease and cancer. In 2012, the Medical Center provided 4,976,000 to support research activities at BRI. Part VI Line 5 continued Environmental Improvements. Virginia Masons environmental stewardship initiative, EnviroMason, provides the framework for making unique energy and waste management decisions, such as setting policies on reliability and use, making efficiency improvements, supporting capital planning and infrastructure design, and encouraging employee participation and innovation. The goal of EnviroMason is to reduce waste, recycle and conserve resources of our community. Virginia Mason became the first hospital in the Pacific Northwest to eliminate garbage cans and Styrofoam use and begin composting food waste. The organization was able to reduce kitchen garbage waste by 75 percent and reduce water use by 72 percent. Virginia Mason composts 15 tons of food and material waste per month, saves about 160,000 gallons of water in the hospitals kichen each year, and recycles about 250 pounds of plastic and tin each day. Cardboard recycling has increased by nearly 300 percent. Also, nearly 100 percent of cafeteria product purchases today are compostable. Our recycling results showed 34 percent of all waste generated at Virginia Mason is recycled, saving nearly 680 tons of waste from the environment. In addition, Virginia Mason has invested more than 3 million in energy conservation endeavors, including efficient lighting, advanced chiller plan installation and upgrades, and extensive water and energy and conservation measures. In 2011, Virginia Mason collaborated with a vendor to install three electric vehicle charging stations in one of our parking lots which helps promote this new technology and gives employees, patients and the general public a location to park and charge vehicles. Virginia Mason has one of the highest medical center surgery volumes in the region and about 30 percent of the organizations waste could be traced to the operating rooms. Even though general perceptions are that operating rooms have unique biohazard and blood contamination challenges, only about 15 percent of surgical waste requires special processing. Virginia Mason was the first hospital in the region to recycle in the Operating Room. Team members sort recyclable products from trash before surgeries even begin. About 80 percent of waste, such as clear plastics, blue surgical wrap, aluminum and other materials generated in Virginia Masons operating room is recycled. This represents about 800 pounds of recycled material each week. Part VI Line 5 continued Medical Staff. Virginia Mason has 779 members on its active hospital staff, including Virginia Mason physicians, 227 Group Health physicians, 45 Pacific Medical Center physicians, and 42 other community providers. Part VI Line 5 continued Accountability to the Community. The Medical Center is accountable to the public through its Board, the voting members of which are community members who represent the diverse populations and needs of communities served by the Medical Center. The Medical Center is also accountable to the community through its sole voting member, the Health System whose Board is composed primarily of community members. In futherance of its commitment to responsible governance practices, the Medical Centers Audit and Compliance Committee, composed entirely of community members of the organizations Board , is charged with the overseeing the selection and discharge of the Medical Centers independent financial auditors and oversight of the Medical Centers compliance programs. In addition, the Medical Center has chartered a Governance Committee, responsible for reviewing and evaluating the organizations corporate governance policies and guidelines, and providing oversight of procedures for disclosure and management of conflict of interest. The voting members of the Governance Committee are independent community members of the Medical Centers board. As a further mechanism for community involvement and leadership, Virginia Mason has established a Board of Governors, an advisory body of community representatives. The Board of Governors regularly participates in extensive tours of various areas of the Medical Center facilities and becomes involved in forums for in-depth discussion of issues of importance to these organizations and the communities they serve. Bailey-Boushay House, a division of the Medical Center which provides day health and skilled nursing facility services to individuals living with HIV/AIDS, also has an advisory board comprised primarily of representatives of the community who provide input and guidance on serving the community. Part VI Line 5 continued Use of Financial Surpluses. All financial surpluses from the operation of the Medical Center are used exclusively to further its charitable purposes. No individual receives any portion of the organizations respective surplus as a result of ownership or any other insider relationship. The Compensation and Benefits Committee of the Medical Center Board, which directes the performance review and approves the compensation and benefits of the Medical Center s senior leadership, is composed entirely of community members of the Board who have no financial ties to the Medical Center, either directly or through family or business relationships. true Benaroya Research Institute at Virginia Mason 1201 Ninth Avenue Seattle WA 98101 910653422 501c3 4975449 Operating Support Virginia Mason Health System 1100 Ninth Avenue Seattle WA 98101 911351110 501c3 3545633 Operating Support Pacific Science Center 200 2nd Ave N Seattle WA 98109 917540867 501c3 75000 General Support Seafair 2200 Sixth Ave Ste 400 Seattle WA 98121 910557448 501c4 75000 General Support JDRF Seattle Guild 1200 Sixth Avenue Suite 605 Seattle WA 98101 231907729 501c3 61000 General Support Project Access Northwest 1111 Harvard Ave Seattle WA 98122 204377921 501c3 50000 General Support United Way of King County 720 Second Ave Seattle WA 98104 910565555 501c3 42750 General Support Evergreen State Amateur Athletic Council 701 Pike St Ste 800 Seattle WA 98101 870715737 501c3 35000 General Support Group Health Foundation PO Box 34015 Seattle WA 98124 911246278 501c3 30000 General Support American Cancer Society 1313 Broadway Ste 100 Tacoma WA 98402 841316555 501c3 25000 General Support Country Doctor Community Health Centers 2101 E Yesler Way Ste 210 Seattle WA 98122 237100868 501c3 20000 General Support Harrison Foundation 2520 Cherry Ave Bremerton WA 98310 911197626 501c3 20000 General Support American Heart Association 710 Second Ave Ste 900 Seattle WA 98104 135613797 501c3 18500 General Support City Club 1333 Fifth Ave Ste 24 Seattle WA 98101 911148262 501c3 15000 General Support Northwest Kidney Center PO Box 3035 Seattle WA 98114 916057438 501c3 15000 General Support YWCA of Seattle-King County-Snohomish County 1118 Fifth Ave Seattle WA 98101 910482890 501c3 15000 General Support American Red Cross 1900 25th Ave S Seattle WA 98144 530196605 501c3 12500 General Support Hearing Speech & Deafness Center 3130 E Madison Ste 205 Seattle WA 98122 910681207 501c3 6250 General Support Bellevue College 3000 Landerholm Circle SE Bellevue WA 98007 911051671 501c3 10000 General Support Enterprise Seattle 1301 Fifth Ave Suite 2500 Seattle WA 98101 911267597 501c4 10000 General Support Foundation for Health Care Quality 705 Second Ave Suite 703 Seattle WA 98104 911419327 501c3 10000 General Support Zero 515 King St Ste 420 Alexandria VA 22314 593400922 501c3 9000 General Support American Diabetes Association 1730 Minor Ave Seattle WA 98101 131623888 501c3 8000 General Support Neighborcare Health 1537 Western Ave Seattle WA 98101 910893287 501c3 8000 General Support The First Tee of Greater Seattle 2340 Broadmoor Dr E Seattle WA 98112 912116912 501c3 7950 General Support College Success Foundation 1605 NW Sammamish Rd Ste 200 Issaquah WA 98027 912036088 501c3 7500 General Support Robert Vasen Foundation 2807 102nd Ave SE Bellevue WA 98004 208656415 501c3 7500 General Support National Multiple Sclerosis Society 192 Nickerson St Ste 100 Seattle WA 98109 910742424 501c3 6750 General Support Crohn's & Colitis 9 Lake Bellevue Dr Ste 203 Seattle WA 98005 136193105 501c3 5500 General Support Bellevue Community College 3000 Landerholm Circle SE Bellevue WA 98007 911051671 501c3 5000 General Support Chamber Community Foundation 13015 5th Ave Suite 2500 Seattle WA 98101 911648680 501c3 5000 General Support Encompass 1407 Boalch Ave NW North Bend WA 98045 910825232 501c3 5000 General Support Girls on the Run Puget Sound 8757 15th Ave NW Seattle WA 98117 841618574 501c3 5000 General Support King County Sexual Assault Resource Center 200 Mill Ave S Suite 10 Renton WA 98057 910967255 501c3 5000 General Support Special Olympics Washington 1809 7th Ave Ste 1509 Seattle WA 98101 910962383 501c3 5000 General Support 33 2 I 2 The funds provided to the Virginia Mason Health System and Benaroya Research Institute at Virginia Mason are for operational support or specific activities. Assistance provided to other non-profit organizations consisted of donations made to support specific events sponsored by the recipient organizations. X X X true true X X X X X false true false false false false false false false Gary Kaplan MD 1039978 449871 17788 2199932 30334 3737903 Suzanne Anderson 469126 174912 25284 57410 17402 744134 Katerie Chapman 240806 68356 4240 15324 20338 349064 Lucy Glenn MD 519988 159005 17874 65910 16080 778857 Michael Glenn MD 601250 177360 17374 88411 12998 897393 Fred Govier MD 585322 173954 17874 37506 25724 840380 Andrew Jacobs MD 454874 140180 17874 112827 36238 761993 Joyce Lammert MD 422478 123436 18288 34638 13854 612694 Brian McDonald MD 268273 17 1188 15324 21085 305887 Sarah Patterson 481104 178543 252850 131458 26257 1070212 120249 William Poppy 357020 107762 40006 25887 32755 563430 Steve Rupp MD 471900 142259 774 34729 21418 671080 Donna Smith MD 385266 116731 16014 64847 25095 607953 Charleen Tachibana RN 365491 108608 19879 52082 20741 566801 Christopher L Fellows MD 1152166 17 774 40035 23403 1216395 Ulrike I Ochs MD 987809 138 270 79410 23660 1091287 Richard A Kozarek MD 949728 1188 114527 22931 1088374 Keith Paige MD 898090 270 30850 31058 960268 Shayan Irani M D 815666 42 162 10284 22183 848337 James P Cote 293556 108200 17995 10284 15678 445713 Robert Mecklenburg MD 387575 35286 29536 17088 469485 Michael P Ondracek 215129 63853 700 10284 29163 319129 Craig Goodrich 291840 91347 19680 20343 20975 444185 Catherine Potts 285204 85431 18288 48843 14774 452540 I 1a In recognition of her qualifications and prior experience with Virginia Mason Medical Center, the Medical Center entered into an employment agreement with its CIO/CFO. Pursuant to the terms of the agreement she received a cash payment designed to equal the retirement contributions made to employees with similiar experience. To render it tax neutral to the employee, the payment was increased for the anticipated federal income tax liability. The payment will end April 2013. I 1a Social club dues are provided to two members of the senior leadership team who use the club memberships for business purposes. These payments are treated as non-taxable. I 1b The payment to the CIO/CFO referred to above was negotiated as part of an employment agreement which was reviewed and approved by the Medical Centers Board of Directors Compensation and Benefits Committee, a committee composed of independent board members to whom the Board has delegated authority to approve compensation and benefits for executive leaders of the Medical Center. I 1b All invoices for payment of social club dues and associated monthly expenses are paid pursuant to the Medical Center Business Expense Policy and Social Club Dues Policy. I 4b The Medical Center has a Supplemental Executive Retirement Plan SERP. The SERP is a 457f nonqualified deferred compensation plan pursuant to which plan benefits are subject to a substantial risk of forfeiture. The plan was approved by the Boards Compensation and Benefits Committee, a committee composed of independent board members to whom the Board delegates the authority to approve compensation and benefits for the Medical Centers most senior executives. The Committee receives advice from an independent compensation consultant to ensure that compensation and benefits, including the SERP, are market competitive and reasonable. Supplemental Executive Retirement Plans such as this are customary for senior executives in the health care industry. A Washington Health Care Facilities Authority 911108929 93978EH54 2007-12-03 316302277 Refund/Redeem, acquire, construct, remodel facility purchase equipment false false false A 316302277 25471181 22315769 86774645 6230082 175510600 2011 true true false true A false false false false true A false false false true false false true Trinity Plus Funding Company LLC 0000000017.000000000000 true false true A true I A, Column C 93978EG30, 93978EH39, 93978EH47, 93978EH70, 93978EH62, 93978EG48, 93978EG55, 993978EG63 I A, Column F The proceeds of the reoffered 1997B Bonds together with the proceeds of the Series 2007 Bonds will be used for the purpose of providing part of the funds necessary to 1 refund, on an advanced and current basis, and to redeem the Authoritys Revenue Bonds, Series 1997A, 2 reissue, refund, on a current basis, and replace the Series 1997B Bonds as a variable rate obligation, 3 reimburse the Medical Center for, or pay, the costs of acquiring, constructing, remodeling, renovating and equipping certain health care facilities, 4 pay interest on the Series 2007 Bonds during construction, 5 fund the initial deposits into respective debt service reserves for the Series 2007 Bonds, 6 pay the cost of credit enhancement, if any, and 7 pay issuance costs. I A, Column F The 1997A bonds were originally issued August 1, 1997. These bonds were issued to 1 refund on a current basis all of the Authoritys outstanding Revenue bonds, Series 1987, issued in an original aggregate principle amount of 100,395,000 2 fund the initial deposit to the Reserve account for the Bonds 3 pay the premium for the Insurance Policy and 4 pay certain of other costs of issuing the Bonds. The 1997B bonds were originally issued August 1, 1997. The original bond proceeds were used to 1 finance or reimburse the Medical Center for the costs of constructing, remodeling and/or acquiring Health Care Facilities 2 fund the inital deposit to the Reserve Accounts for the Bonds 3 pay the premium for the Insurance Policy and 4 pay certain of the other costs of issuing the Bonds. IV 2 The rebate computation was dated December 21, 2012. Joan Lange Sister of Robert Lemon 81296 Employee false The Seattle Times Tod Hamachek 102846 Goods and Services purchased false IV 2 Tod Hamachek, a director of the Medical Center, is also a compensated director of The Seattle Times. The Medical Center purchased advertising and subscriptions from The Seattle Times. Form 990 Part III Line 1 The Medical Center also operates Bailey-Boushay House, a skilled nursing facility and day health center serving the HIV/AIDS community. The Medical Center patient care services are integrated with and enhanced by education and research activities which include a graduate medical education program providing training to over 120 residents, fellows and medical students each year. In addition, the Medical Center sponsors training programs for pharmacy and a variety of other health services such as nursing, respiratory therapy, physical therapy, speech and language therapy and laboratory technology. Form 990 Part III Line 4a The Medical Center is committed to subsidizing certain health services due to the demonstrated need for these services in the community. Since 1992, the Medical Center has addressed the treatment of HIV/AIDS by operating Bailey-Boushay House Bailey-Boushay, a 35-bed skilled nursing facility. The first facility in the nation built specifically for the care of people living with AIDS, Bailey-Boushay now also serves other individuals who need intensive nursing care, many of whom are Medicaid recipients. In addition to the care provided to its residential population, Bailey-Boushay provides day health services to 258 clients annually, allowing them to live independently with HIV/AIDS. The Medical Center also offers emergency services 24 hours a day, 7 days a week. The department is staffed by board-certified emergency physicians, physician assistants and certified emergency nurses. Form 990 Part III Line 4a continued The Medical Center is committed to providing necessary medical services regardless of a patients ability to pay and without discrimination as to race, color, creed, national origin, religion, sex, sexual orientatioin, disability, age, source of income, or any other class protected by federal or Washington state law, or who have an emergency medical condition. The Medical Center is a participating hospital in the Washington State Medicaid Contracting Program. Charity Care is provided according to a sliding fee scale for patients with gross family incomes at or below 300 of the Federal poverty guidelines adjusted for family size as follows 1 Below the Federal Poverty Level Medicaid and/or 100 discount 2 100 - 200 of Poverty Level 100 Discount 3 201 - 250 of Poverty Level 50 Discount 4 251 - 300 of Poverty Level 30 Discount. Full or partial charity care may be provided to patients with gross family incomes from 201 to 300 of the federal poverty level when circumstances indicate that full payment may cause financial hardship so as to significantly harm the patient or patients family. Patients without health insurance are eligible for a twenty-five percent 25 discount on medically necessary services under the Medical Centers Discounts for Uninsured Patients Policy. Charity care was provided at a cost of 11,042,665 during the year, along with 20,432,319 of Medicaid contractual allowances. Charity care does not include bad debts which is the amount the Medical Center is not paid by patients deemed able to pay their bills. Form 990 Part III Line 4b The Medical Centers graduate medical education program maintains education affiliation agreements with community clinics under which the Medical Centers residents provide care to patients at clinics serving low-income and uninsured patients. The Medical Center has an affiliation with Eastgate Public Health Clinic operated by Seattle King County Public Health to provide a resident clinic 4-days a week under the supervision of Medical Center physicians. This affiliation has expanded access to health care for King County residents and enhanced the educational opportunities of internal medicine residents. Form 990 Part III Line 4b continued The Clinical Nursing Education CNE program offered 32 CNE events in 2012 to 1,398 attendees. Particpants include nurses the primary audience - RNs and LPNs and advanced practice registered nurses CNS, CNL, ARNP, as well as patient care technicians, nursing students, nurse technicians, customer service representatives, surgery schedulers, patient flow coordinators, respiratory terapists, social workers, educators, dietitians, specialized technicians e.g. GI Techs, Donation Techns, Radiaton-Oncology Techs, medical assistants, medical technologists, administrative assistants, chaplains, bereavement coordinators and physicians. Form 990 Part III Line 4b continued The Medical Center also serves as an internship site for students in a variety of allied health programs such as nursing, pharmacy, respiratory therapy, physical therapy, occupational therapy, social work, sleep disorders, speech and language therapy, radiology and laboratory technology. Successful relationships have been built with vocational training programs for medical assistants as well. Form 990 Part III Line 4b continued The Medical Center provides strong support for continuing medical education CME. The Medical Centers CME program is accredited by the Accreditation Council for Continuing Medical Education ACCME. The program was last reaccredited in 2010, receiving Accrediation with Commendation a designation achieved by the top 25 percent of CME programs in the country. In 2012, the CME department sponsored 37 courses either full-, half-, or multi-day totalling 220.25 hours of instruction. These activities were attended by 1,206 participants, including 700 physicians. Form 990 Part III Line 4b continued During 2012, 41 one-hour Grand Rounds presentations were presented at the Medical Center, with the on-site audience averaging 145 attendees. The Grand Rounds series is also broadcast via videoconference to the organizations satellite locations and to 12 off-site health care systems throughout Alaska and Washington State. In 2012, 3,680 AMA PRA Category 1 Credits TM were awarded to participants of this series. The CME department supports 9 additional Regularly Scheduled Series in Cancer Care, Cardiac Catherization, Neuroscience Imaging, Competencies and Incidents, Vascular Surgery, GI Radiology, GI Pathology, Nephrology, and Pharmacy and Therapeutics. Form 990 Part III Line 4b continued Approximately 13 of our investigators have faculty appointments at the University of Washington, including 5 at the professorship level. The Medical Center also maintains a medical library to support its education and research activities. Form 990 Part III Line 4c The Medical Center provided support of Separation and Loss which provides services for adults and children ages 7-18 whose loved one has died as the result of a sudden, violent death by criminal act homicide, including terrorism, suicide or other types of violent death. Services available include therapy groups, short-term therapy, psychiatric consultation and medication management, community, workplace, family and school crisis response and professional training. In 2012, the Medical Center provided 59,000 toward support of Separation and Loss. Form 990 Part III Line 4c continued The Medical Center also supports Tender Loving Care TLC which is a day-care program for mildly ill children in King County. The program offers a cost-effective alternative for working parents with children who are mildly ill. TLC is open to the general public for a set fee and to employees of companies that contract for the service as part of their employee benefit package. The staff at TLC includes a full-time registered nurse and a team of teachers experienced in early childhood education and child development, as well as infection control and caring for mildly ill children. The Medical Center provided 77,000 toward the operating costs of TLC in 2012. Form 990 Part III Line 4d The Medical Center provides funds and in-kind services to community organizations which are consistent with the Medical Centers charitable purpose. A list of community donations is included on Schedule I. The following is a description of selected recipients and is not all-inclusive. 1 The Medical Center supported Go Red for Women Heart Awareness and the Annual HeartWalk which benefited the American Heart Association AHA in 2012. AHAs mission is to reduce coronary heart disease, stroke and risk by 25. 2 SEAFAIR and the Medical Center partnered to sponsor the BRI Triathon, benefitting Autoimmune Research. 3 The Medical Center was a sponsor of the JDRF Gala to benefit the Juvenile Diabetes Research Foundation JDRF. The JDRFs mission is to find a cure for diabetes and its complications through the support of research. 4 The Medical Center was a sponsor of Pancreatic Cancer Survivor Gala to benefit Pancreatic Cancer Action Network. Pancreatic Cancer Action Network is a nationwide network of people dedicated to working together to advance research, support patients and create hope for those affected by pancreatic cancer. 5 The mission of United Way is to improve peoples lives by mobilizing the caring power of communities. The Medical Center provides support to the United Ways fundraising effort of 191,000 in 2012. Form 990 Part IV Section A Line 1a The governing body delegates to an Officers Committee comprised of the Chairman, Vice Chairman, Secretary and Treasurer the authority of the Board of Directors in the management of the corporation as may be deemed by such Officers Committee to be appropriate, to be exercised in time periods between regularly scheduled meetings of the Board of Directors. All members of the Officers Committee are members of the governing body of the corporation. The Officers Committee does not have the authority to amend, alter or repeal the Bylaws elect, appoint or remove any member of the Officers Committee or any director or officer of the corporation amend the articles of incorporation adopt a plan of merger or adopt a plan of consolidation with another corporation authorize the sale, lease or exchange of all or substantially all the property and assets of the corporation not in the ordinary course of business authorize the voluntary dissolution of the corporation or revoke proceedings therefore adopt a plan for the distribution of the assets of the corporation or amend, alter or repeal any resolution of the Board which by its terms provides that it shall not be amended, altered or repealed by the Officers Committee. The Officers Committee also periodically evaluates the effectiveness of VMMCs systems for resolving internal conflicts. The Board also delegates to the Officers Committee the authority of the Board to make all appointments and reappointments to the Medical Staff of the hospital. Form 990 Part VI Section A Line 2 Family relationship between key employees Michael Glenn, MD and Lucy Glenn, MD. Form 990 Part VI Section A Line 4 The organization amended its Bylaws to delete a requirement that the Finance Committee Chair serve as an ex officio member of the Audit and Compliance Committee. No change was made to the requirement that all Audit and Compliance Committee member be independent nor to the minimium number of members three. Form 990 Part VI Section A Line 6, 7 Virginia Mason Health System VMHS is the sole corporate member of Virginia Mason Medical Center. VMHS as the sole voting member has the following approval rights 1 Election and approval of Directors and Officers of the Board of Directors 2 Approval of the appointment of the Chief Executive Officer 3 Removal of Directors and Officers of the Board of Directors 4 Approval of all long-range plans proposed by the Board of Directors 5 Approval of the annual capital and operating budgets proposed by the Board of Directors 6 Approval of the borrowing of funds where the amount is in excess of Ten Million Dollars 7 Approval of the sale, lease, exchange, mortgage, pledge or disposal of all or substantially all of the property and assets 8 Approval of all amendments to the Articles of Incorporation or Bylaws. All other rights and powers as specified in the Washington Nonprofit Corporation Act. Form 990 Part VI Section B Line 11b The Audit and Compliance Committee ACC, a committee composed of independent community members of the Medical Center Board of Directors is responsible for oversight of the annual VMMC Form 990 and 990-T preparation process including 1 selection, engagement, and performance of an independent tax preparer 2 review of the annual draft Form 990 and 990-T tax returns, and 3 recommending the final Form 990 and 990-T tax returns for review to the VMMC Board of Directors. At the ACC September meeting, management provided the ACC with an initial draft of the Form 990 and the tax return reviewer presented an overview of the Form 990 preparation process. Following the September meeting, the ACC Chair updates the VMMC Board on the Form 990 preparation. In October, a revised draft of the Form 990 is provided to the ACC Chair for further review and comment. The final draft Form 990 is reviewed and approved by the ACC in November, and provided to the VMMC Board for review of the final Form 990 prior to filing. The final Form 990 and 990-T tax returns are provided to each member of the VMMC Board of Directors via electronic delivery by posting on a secure website which allows online viewing of Board documents. Form 990 Part VI Section B Line 12c The Governance Committee of the Board has accountability for oversight of the process for disclosure, evaluation and management of conflicts of interest involving any member of the Board, executive leadership or key employees Covered Person. Pursuant to the Conflicts of Interest Policy, an annual conflict of interest questionnaire is distributed to all Covered Persons. In addition, a Covered Person has an on-going duty to disclose the existence of a conflict of interest at any time an actual or potential conflict arises. Each Covered Person is required upon appointment and annually thereafter to attest to a statement that affirms that such person has 1 received a copy of the Conflicts of Interest Policy 2 has read and understands the Policy 3 has agreed to comply with the Policy and 4 understands that Virginia Mason is a charitable organization and that in order to maintain its federal tax exemption must engage primarily in activities that accomplish its tax-exempt purposes. Written disclosures are reviewed by the Governance Committee to determine if an actual or potential conflict of interest exists and if so, how it should be managed. The Covered Person is informed in writing regarding the determination the Conflict of Interest Management Plan. No Covered Person with an actual or potential conflict of interest shall engage in an activity on Virginia Masons behalf related to the disclosed actual or potential Conflict of Interest unless such activity is permitted by the Conflict of Interest Management Plan or until the Covered Person has undertaken all steps set forth in the Management Plan to manage, reduce or eliminate the conflict. All Covered Persons have a duty to disclose the existence of any actual or potential conflict of interest with respect to meeting agenda items. The Conflicts of Interest Policy requires that copies of the Conflict of Interest Questionnaires completed annually by each Covered Person and any Conflict of Interest Management Plan be maintained. In addition, the minutes of the board and all committees with board-delegated powers shall document the disclosure and resolution of any actual or potential conflict of interest disclosed at such meeting. Form 990 Part VI Section B Line 15 The Compensation and Benefits Board Committee, a committee composed solely of independent directors none of whom have a conflict of interest, is accountable for setting reasonable total compensation packages for each executive, including the CEO, officers and key employees Executives consistent with Virginia Masons philosophy and principles. The Board develops and approves annual goals and performance criteria which are used in determining merit increases and variable compensation opportunities for the Virginia Mason Executives. The Committee assesses performance against these goals. The Committee selects and engages a qualified independent compensation consultant to review and analyze the total compensation and benefits packages to the Executives. The Committee as part of its analysis obtains from the compensation consultant appropriate comparability data including total compensation paid by similarly situated for-profit and non-profit health care organizations for positions that are functionally comparable to each of the Executives. With respect to those Executives below the level of Chair/Chief Executive Officer, the Committee requests that the Chair/Chief Executive Officer work with the compensation consultant to formulate a compensation recommendation for each such Executive, consistent with Virginia Masons compensation philosophy and principles. Consistent with Virginia Masons compensation philosophy and principles, the Committee approves total compensation packages for each of the Executives based on information presented to the Committee, reasonableness and the best interests of Virginia Mason. The Committees decisions regarding compensation for each Executive are documented in written resolutions and minutes of the Committee. The Committee promptly reports its action to the Board which reports are reflected in the Boards minutes. The Executives that were reviewed in 2012 were Chief Executive Officer, Chief Operating Officer and Executive Vice President, Chief Information Officer/Chief Financial Officer and Executive Vice President, Senior Vice Presidents, Vice Presidents, Physician Chiefs, Clinic Medical Director, and Hospital Medical Director. Form 990 Part VI Section C Line 19 The organizations Articles, Bylaws and Conflicts of Interest Policy are made available on its public web site. Financial statements are made available upon request. Form 990 Part XI Line 9 Donated Capital 1,075, Additional Pension Adjustment 1,526,596, Capital Transfers - Restricted 3,313,902 1000 Madison LLC 1100 Ninth Avenue Seattle WA 98101 204018216 Real Estate WA 1331415 23900604 VMMC 1005 Spring Street LLC 1100 Ninth Avenue Seattle WA 98101 204816736 Real Estate WA 1423103 4580784 VMMC Health Resource Services LLC 1100 Olive Way Seattle WA 98101 262800944 Group Purchasing WA 9246250 14384882 VMMC Virginia Mason Health System 1100 Ninth Avenue Seattle WA 98101 911351110 Fundraising WA 501c3 7 N/A true Virginia Mason Institute 1100 Ninth Avenue Seattle WA 98101 263763656 Education/Research WA 501 c 3 9 VMMC false Natl Purchasing Ptns LLC 1100 Olive Wy Seattle WA 98101 203470995 Group Purchasing WA N/A Unrelated 12893106 1600205 false 12919572 true 0.50000 false true true false false false false false false true true false false false false true true false false Virginia Mason Medical Center 1100 Ninth Avenue Seattle WA 98101 910565539 X 127874 6000 133874 924077890 924211764 938953 234738 0 0 0 Virginia Mason Institute 1100 Ninth Avenue Seattle WA 98101 263763656 0 0 0 2575820 2575820 2617 654 0 0 0 Virginia Mason Health System 1100 Ninth Avenue Seattle WA 98101 911351110 0 0 0 13866754 13866754 14088 3522 0 0 0 Benaroya Research Institute at Virginia Mason 1201 Ninth Avenue Seattle WA 98101 910653422 0 0 0 43645635 43645635 44342 11086 0 0 0