2012-11-14T18:02:43-00:00 2011-12-31 KPMG LLP 1918 Eighth Avenue Suite 2900 Seattle WA 98101 990 2011-01-01 910565539 Virginia Mason Medical Center VIRG 2062236600 1100 Ninth Avenue Seattle WA 98101 Gary Kaplan 2012-11-12 true Sue W Robison 2069134000 2011 2016-02-24 21:20:13Z Gary Kaplan 1100 Ninth Avenue Seattle WA 98101 961125968 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. 13 11 6147 1339 16411188 8344337 9336367 6179104 819224526 863679342 12563826 14803799 7427010 7676040 848551729 892338285 8085581 7846671 0 478076595 506728697 0 0 330371114 348470951 816533290 863046319 32018439 29291966 882192273 917015772 574734401 598645723 307457872 318370049 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 386 physicians. false false 723676117 203524 870789169 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 2011, the Medical Center recorded 16,335 hospital inpatient admissions, 22,126 emergency room visits and 830,027 clinic visits. The Medical Center provided charity care and unreimbursed Medicaid services to a total of 5,724 patients. Continued on Schedule O 21902664 3450000 277689 Education and Research The Medical Center is an independent academic medical center with a graduate medical education program that trains over 113 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, Regional Anesthesia, Urology, Sports Medicine, Gynecology and Gastroenterology. 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 676820 288524 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 2011, the Medical Center provided 96,000 of support for the Teaching Center. Continued on Schedule O 4550878 4193147 750806479 true true false true false false false false true true true false true true true true true false false true false false false false false true true true false true true false false false false false false false true true true false false false false true true false false false false true 665 0 true 6147 true true true false false false false false false false false false false X 13 11 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 X Carolyn Corvi 002.00 X X 0 0 0 Joshua Jay Green III 002.00 X 0 0 0 Tod Hamachek 002.00 X 0 0 0 Robert Bob Lemon 002.00 X 0 0 0 Alfred Al E Lopus 002.00 X 0 0 0 Dorothy H Mann PhD 002.00 X 0 0 0 David Moffett 002.00 X X 0 0 0 James Jamie Orlikoff 002.00 X 0 0 0 Richard Dick J Robbins 002.00 X 0 0 0 Evelyn Cruz Sroufe 002.00 X X 0 0 0 Lonnie Edelheit PhD 002.00 X 0 0 0 James Jim Young 002.00 X X 0 0 0 Gary Kaplan MD 050.00 X 1296011 0 1732788 Suzanne Anderson 050.00 X 573891 0 71369 Katerie Chapman 050.00 X 269225 0 39239 Lucy Glenn MD 050.00 X 660239 0 43958 Michael Glenn MD 050.00 X 729759 0 140492 Fred Govier MD 050.00 X 704863 0 96739 Kate Reed 050.00 X 322909 0 25396 Andrew Jacobs MD 050.00 X 563639 0 110540 Joyce Lammert MD 050.00 X 505993 0 70721 Brian McDonald MD 050.00 X 298626 0 52127 Julie Morath RN 002.00 X 0 0 0 Sarah Patterson 050.00 X 581750 0 137537 William Poppy 050.00 X 475962 0 75281 Steve Rupp MD 050.00 X 584932 0 50699 Donna Smith MD 050.00 X 480793 0 75723 Charleen Tachibana RN 050.00 X 442496 0 66704 Christopher L Fellows MD 050.00 X 1174565 0 71339 Ulrike I Ochs MD 050.00 X 965255 0 47084 Richard A Kozarek MD 050.00 X 951462 0 178626 Keith Paige MD 050.00 X 803299 0 91151 Edwin Rhim M D 050.00 X 785200 0 38156 James P Cote 050.00 X 272224 0 19097 Robert Mecklenburg MD 050.00 X 420059 0 52631 Michael P Ondracek 050.00 X 252790 0 27159 Craig Goodrich 050.00 X 374763 0 63001 Catherine Potts 050.00 X 318600 0 40311 14809305 3417868 1028 true true false Pitney Bowes Management Svc P O Box 840851 Dallas TX 75284 Mail Management Services 1589822 Skanska USA Building Inc 221 Yale Ave N Suite 400 Seattle WA 98109 Construction Services 16089885 Crothall Services Group Inc 955 Chesterbrook Bld Ste 300 Wayne PA 19087 Staffing Services 12358591 AMN Healthcare Inc 12400 High Bluff Drive San Diego CA 92130 Staffing Services 3456280 NBBJ Group 223 Yale Ave N Seattle WA 98109 Construction Services 623700 46 6179104 6179104 Operating Revenues 561499 1070937553 1063237221 7700332 Medicare/Medicaid payments 621300 118232935 118232935 863679342 12797597 8538962 4258635 55817 55817 1326271 1008475 317796 317796 98423 219375 69334317 393060 67718565 58427 1615752 334633 1950385 1950385 2216 -2216 -2216 Cafeteria 722100 3266965 3266965 Parking 721110 3830206 75687 3754519 Medical Records 561499 215658 215658 47631 47631 7360460 892338285 855979010 16411188 13768985 7846671 7846671 0 0 0 11393876 6547647 4846229 0 426074329 370965681 55108648 22353631 19462402 2891229 25403266 22117596 3285670 21503595 18722310 2781285 741116 645260 95856 1440672 1440672 413669 413669 222311 222311 0 47161599 41061696 6099903 6937237 6039972 897265 161806864 140878690 20928174 26172709 22787519 3385190 0 17913122 15596231 2316891 3153868 2745945 407923 0 636786 554424 82362 7360351 6408360 951991 0 32364841 28178758 4186083 2618976 2280236 338740 Taxes 20494578 20494578 Medical Purchase Services 535692 466405 69287 Dues and Subscriptions 2111165 1838106 273059 Bad Debt Expense 9214481 9214481 7170914 5953511 1217403 863046319 750806479 112239840 0 19383788 46140605 90964109 46018726 77954742 95948616 12923192 13052072 3600429 3940998 848072404 342153064 471064093 505919340 147737870 152031866 300651 722801 58263399 53240748 882192273 917015772 108617613 122772702 43753 43867 331425934 328704983 31906116 30737154 102740985 116387017 574734401 598645723 X 289366423 300177790 14155766 14117580 3935683 4074679 307457872 318370049 882192273 917015772 X 29291966 -18379789 X false true true X false X 0.00000 0.00000 0.00000 RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED X 122311 122311 100000 100000 222311 222311 862824008 917357997 863046319 917580308 1000000 1000000 250000 250000 1000000 1000000 1000000 1000000 4000000 6000000 129287 269422 270061 222311 891081 250000 250001 250000 250000 1000001 1500002 129287 152146 151772 122311 555516 II-A A Virginia Mason Medical Center, EIN 91-0565539, 1100 Ninth Avenue, Seattle, WA 98101. Election Member. Grassroots Lobbying Expenditures 122,311. Direct Lobbying Expenditures 100,000. 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, 2011. II-A A continued 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 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 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 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 12672073 -146637 482260 12043176 11663690 20 1423022 414659 12672073 9444928 230704 2265200 277142 11663690 13624798 500931 -4680801 9444928 0.60190 0.29870 0.09940 true false 36370602 36370602 454440193 115730103 338710090 20507618 9063156 11444462 318698163 216806108 101892055 18055828 553697 17502131 505919340 ARI Investment 722801 C 722801 Funds Held By Trustee 37112287 Interest Receivable Swap 200000 Long Term Receivable 374875 BB Cemetry Plots/Niches Donated Assets 20077 Parking Rights 346926 Winthrop Apartment 227800 Equity Investment-HSCA 254298 Deferred Financing Costs 8887485 Partnership Interest in National Purchasing Partners 1698670 Beneficial Interest 4105949 Start Up Costs-Madison 12381 53240748 Due to affiliates 2489062 Estimated Third Party Payor Settlement 10551078 Reserve for Professional Liability Claims 17655300 Accrued Retirement Expenses 81398733 Asbestos Abatement 1050722 Deferred Rent Credits 3242122 116387017 892338285 863046319 29291966 -7730329 -10398488 -18128817 11163149 872880530 -7730329 -6683371 -14413700 887294230 5044055 5044055 892338285 861717381 3717333 3717333 858000048 5046271 5046271 863046319 V 4 Support health care mission of Virginia Mason Medical Center and research mission of Benaroya Research Institute of Virginia Mason X 2 The Medical Center adopted Financial Accounting Standards Board FASB Interpretation No. 48, Accounting for Uncertainty in Income Taxes FIN 48, included in FASB Accounting Standards Codification ASC Subtopic 740-10 - Income Taxes - Overall. FIN 48 clarifies the accounting for uncertainty in income taxes recognized in an enterprises financial statements in accordance with FASB Statement No. 109, Accounting for Income Taxes. X 2 continued FIN 48 also prescribes a recognition threshold and measurement standard for the financial statement recognition and measurement of an income tax position taken or expected to be taken in a tax return. Only tax positions that meet the more-likely than-not recognition threshold at the effective date may be recognized or continue to be recognized upon adoption. X 2 continued In addition, FIN 48 provides guidance on derecognition, classificatiion, interest and penalties, accounting in interim periods, disclosure and transition. This guidance did not have a significant impact to the consolidated financial statements in 2011 or 2010. XI 8 Additional Pension Adjustment 12,538,464 Restricted Capital Transfers 1,884,686 Virginia Mason Institute Revenues 2,254,289 Virginia Mason Institute Expenses 2,003,316 Donated capital 2,101 Cost of Goods Sold Adjustment 2,216 XII 2d Restricted Capital Transfers 1,884,686 Virginia Mason Institute Revenues 2,254,289 Donated capital 2,101 Additional Pension Adjustment 12,538,464 Donation Transfers 1,714,017 XII 4b Non-operating expenses 5,259,338 Financial reclasses 460,218 Rental Expenses 1,008,475 Loss on Disposal of Equipment 332,974 XIII 2d Donation Transfers 1,714,017 Virginia Mason Institute Expenses 2,003,316 XIII 4b Non-operating expenses 5,259,338 Financial reclasses 460,218 Rental expenses 1,008,475 Loss on Disposal of Equipment 332,974 Cost of Goods Sold Adjustment 2,216 East Asia and the Pacific Program Services Education 2310 Europe Program Services Education 690 North America Program Services Education 20568 Central America and the Caribbean Program Services Education 4818 South America Program Services Education 407 28793 28793 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 true false true true 5724 10359491 10359491 0.01200 4888 29842288 23942288 5900000 0.00680 10612 40201779 23942288 16259491 0.01880 7 465 1466108 66281 1399827 0.00160 16 639 10223025 6198295 4024730 0.00470 2 466 728323 420889 307434 0.00040 4268660 4268660 0.00490 25 1570 16686116 6685465 10000651 0.01160 25 12182 56887895 30627753 26260142 0.03040 2 352579 352579 0.00040 2 352579 352579 0.00040 true 4561168 150130438 157940109 -7809671 X true true 1 1 Virginia Mason Medical Center

1100 Ninth Avenue Seattle WA 98101

X X X X Virginia Mason Federal Way 1 Virginia Mason Issaquah 2 Virginia Mason Kirkland 3 Virginia Mason Lynnwood 4 Virginia Mason Bellevue 5 Bailey Boushay House 6 Virginia Mason Winslow 7 Virginia Mason Sand Point Pediatrics 8 8 Virginia Mason Federal Way

33501 First Way S Federal Way WA 98003

0 Virginia Mason Issaquah

100 NE Gilman Blvd Issaquah WA 98027

Outpatient Clinic Virginia Mason Kirkland

11800 NE 128th St Suite 300 Kirkland WA 98034

Outpatient Clinic Virginia Mason Lynnwood

19116 33rd Ave W Lynnwood WA 98036

Outpatient Clinic Virginia Mason Bellevue

222 112th Ave NE Bellevue WA 98004

Outpatient Clinic Bailey Boushay House

2720 East Madison Seattle WA 98112

Outpatient Clinic Virginia Mason Winslow

380 Winslow Way E Bainbridge Island WA 98110

Skilled Nursing Facility Virginia Mason Sand Point Pediatrics

4575 Sand Point Way NE Suite 108 Seattle WA 98105

Outpatient Clinic 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. Part I line 3c continuedAdditional 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. Part I line 3c continued 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. Part III line 4 Uninsured patients will receive a 25 discount off billed charges for designated services provided by the Medical Center. Management of Patient Financial Services maintains a list of designated services eligible for the discount. Uninsured Patients will not receive the uninsured discount on non-medically necessary care. In addition to the uninsured discount, uninsured patients may apply for charity care. Part III line 4 continued Uninsured patients who do not appear to qualify for charity care through an initial determination conducted by the Medical Center will be required to pay a deposit based on deposit guidelines established by the Medical Center. Underinsured patients are eligible for the uninsured discount. Part III line 4 continued If an account was determined to be eligible for partial charity, it would be reduced at the full service collection agency. If an account was determined to be full charity, the Medical Center would cancel the the account at the full service collection agency and adjust the Medical Centers books to charity. Part III line 4 continued An account is considered bad debt if 1 the Medical Center has no active address and 2 self pay portion is aged beyond 120 days and the Medical Center approved payment arrangements have not been established. Part III line 4 continued If the patient indicates to the Medical Center or the agency that there is a financial hardship, the Medical Center would evaluate them for charity at this point in time. Charity would be applied to an assigned balance. Part III line 4 continued The costing methodology that was used for bad debts was the cost-to-charge ratio of direct expenses and revenue as derived using Worksheet 2, Ratio of Patient Care Cost-to-Charges. Part III line 4 continued 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. The Medical Center estimates this allowance based on the aging of accounts receivable, historical collection experience by payor, and other relevant factors. Part III line 4 continued 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. Part III line 8 The Medical Centers calcuation of the Medicare shortfall related to Hospital based inpatient and outpatient services is 7,809,671. 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. Part III line 8 continued 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. Part III line 8 continued This model shows that 28 million of Medicare revenue is not included in the traditional cost report with related costs of 72 million for a shortfall of 44 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. Part III line 9b continued 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. Part III line 9b continued 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. Part III line 9b continued 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. Part III line 9b continued 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. Part III line 9b continued 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. Part III line 9b continued 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 19 - 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. Part V Line 19 continued - 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. Part V Line 19 continued - 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 At Virginia Mason, we are committed to improving the health and well-being of not only our patients, but also the people who reside in the communities we serve. Virginia Mason is on a three-year cycle for conducting its community health needs assessment. Our next assessment will be completed in 2012. Part VI Line 2 continued In 2009, the Medical Center enhanced its community needs assessment by utilizing data from Public Health - Seattle 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 U. S. Department of Health and Human Services Healthy People 2010 leading health indicators. Part VI Line 2 continued Virginia Masons community is defined as King County and north Kitsap County. Within King County, areas are identified as Seattle, north, south and east. In several instances, the geographic areas are further broken down by city and neighborhood. Part VI Line 2 continued Virginia Masons community health needs assessment serves as the foundatioin for the community benefit program which strives to achieve three basic goals 1 Improve our communitys health status and overall quality of life, 2 Reduce health disparities within the community, and 3 Increase access to preventive services. Part VI Line 2 continued Our community benefit program focuses our resources on the needs of the community and the strengths of Virginia Mason. For example, our support of Bailey-Boushay House assists community members with HIV/AIDS, the uninsured, homeless, those with drug addiction and mental health distress - all needs identified in our assessment. Part VI Line 2 continued Likewise, we provide access to care for the uninsured through our partnership with Public Health - Seattle King County Community Health Services Division. This partnership allows our residents to work at the Eastgate Community Clinic and other community clinics, while also supporting our graduate medical education program with a superior learning environment for our residents continuity clinic experience. Part VI Line 2 continued We have expanded our partnership with Project Access Northwest PANW to help uninsured patients receive much needed specialty care in King and Snohomish counties. Now, patients who receive their primary care in the community clinic system are referred to Virginia Mason for specialty care services. Part VI Line 2 continued As the first health care facility to implement a mandatory staff influenza vaccine policy, Virginia Mason is viewed as a leader in protecting patients and staff from this potentially deadly virus. For the past three years, Virginia Masons commitment to reducing influenza in our community has included participating in the King County United Way Community Resource Exchange and delivering free flu shots to Seattles homeless population. Part VI Line 2 continued Virginia Masons community benefit program has also developed a comprehensive bilingual diabetes prevention program in response to the obesity and diabetes data from the needs assessment. Because the Latino population is considered one of the highest risk groups in our community, our program includes education and outreach at the two largest Latino health fairs each year, and interactive presentations six times a month at the Mexican Consulate in Seattle. 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. Part VI Line 3 continued 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. Part VI Line 3 continued 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. Part VI Line 3 continued If financial need or financial hardship is indicated, 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. Part VI Line 3 continued 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 patients expressed concerns either via phone or letter. Part VI Line 3 continued the Medical Centers website also includs information about charity availability and the contact information to initiate an assessment. Part VI Line 4 Virginia Masons community is defined as King County and Kitsap County. Within King County, areas are identified as Seattle, north, south, and east. In several instances, the geographic areas are further broken down by city neighborhood. The Medical Center services a geographic area that is considered both urban and suburban. Part VI Line 4 continued The Medical Centers communities of King County and Pierce County has demographics of 78 White, 5 African American, 8 Asian, Native Hawaiian and other Pacific Islander, 5 Hispanic or Latino, 1 American Indian and Alaskan native, and 3 other races. The average income of these counties is 86,000 with approximately 9 of the population below the federal poverty income guideline. About 14 of the communitys patients are uninsured. Part VI Line 4 continued there are 35 hospitals serving these two counties. King County has 26 hospitals and specialty centers, and Pierce County has 9 hospitals. Part VI Line 4 continued Several of these counties have federally-designated medically underserved areas or population present in the community per the Department of Health data. Pierce County is federally-designated geographically in the communities of Longbranch, Buckley, and Eatonville/Roy. 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 community 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 professionals 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. Part VI Line 5 continued 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. Part VI Line 5 continued In 2011, Virginia Mason provided charity care to 5,724 patients at a cost of 10,359,491. In addition, Virginia Masons unreimbursed Medicaid was provided at a cost of 21,533,275. Part VI Line 5 continued Community Health Improvement Services - Improving health and quality of life extends beyond diagnosis and treatment. It also requires community health education and outreach services. Health improvement and outreach services 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 Part VI Line 5 continued 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 mangement 5 bereavement support through our Separation and Loss Services and 6 leadership roles in several 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 100 residents and fellows annually. VMs GME program is partnered with Public Health - Seattle King County Health Services Division, providing 12 residents for the Eastgate Public Health Center, as well as providing residents at the Carolyn Downs Family Medical Center, Pike Market Medical Clinic and North Public Health Center. Part VI Line 5 continued 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. Part VI Line 5 continued Appoximately 50 percent of patients seen at the clinic do not have insurance or the means to pay, and approximately the same percentage do not speack English and require interpretive services. This resident clinic improves overall health in the community and gives back to our community in a meaningful way. Part VI Line 5 continued 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 Research Institute at Virginia Mason BRI. BRI is a non-profit biomedical research institute that works to unlock the mysteries of the immune system. Its team of world-renowned scientists is focused on identifying causes and cures for devastating diseases including diabetes, arthritis, heart disease and cancer. In 2011, the Medical Center provided 3,450,000 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 resurces of our community. In 2011, we increased our overall recycling tonnage by 22 percent from 2010. Part VI Line 5 continued In 2011, Virginia Mason implemented a new campus-wide mixed recycling program throughout all public garages, contributing to our 22 percent increase in recycling for 2011. 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. Part VI Line 5 continued Medical Staff - Virginia Mason has 810 members on its active hospital staff, including Virginia Mason physicians, 238 Group Health physicians, 47 Pacific Medical Center physicians, and 48 other community physicians. 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. Part VI Line 5 continued In furtherance of its committment 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. Part VI Line 5 continued 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. Part VI Line 5 continued 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. Part VI Line 5 continued 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. Part VI Line 5 continued The Compensation and Benefits Committee of the Medical Center Board, which directs the performance review and approves the compensation and benefits of the Medical centers senior leadership, is composed entirely of community members of the Board who have no financial ties to the Medical Center, either directly or through family or business relationships. true Virginia Mason Health System 1100 Ninth Avenue Seattle WA 98101 911351110 501c3 3595171 Operating Support Benaroya Research Institute at VM 1201 Ninth Avenue Seattle WA 98101 910653422 501c3 3450000 Operating Support University of Washington Foundation 1325 4th Ave Ste 2000 Seattle WA 98101 943079432 501c3 134000 General Support JDRF Seattle Guild 1200 Sixth Ave Ste 605 Seattle WA 98101 231907729 501c3 78500 General Support Seafair 2200 Sixth Ave Ste 400 Seattle WA 98121 910557448 501c4 73000 General Support Project Access Northwest 1111 Harvard Ave Seattle WA 98122 204377921 501c3 50000 General Support Evergreen State Amateur Athletic Council 701 Pike St Ste 800 Seattle WA 98101 870715737 501c3 35000 General Support Foundation for Health Care Quality 705 Second Av Ste 703 Seattle WA 98104 911419327 501c3 25000 General Support United Way of King County 720 Second Ave Seattle WA 98104 910565555 501c3 25000 General Support University of Washington 1325 4th Ave Ste 2000 Seattle WA 98101 943079432 501c3 25000 General Support YWCA of Seattle-KC-Snohomish County 1118 Fifth Ave Seattle WA 98101 910482890 501c3 23200 General Support The First Tee of Greater Seattle 2340 Broadmoor Dr E Seattle WA 98112 912116912 501c3 21250 General Support Country Doctor Community Health Centers 2101 E Yesler Way Ste 210 Seattle WA 98122 237100868 501c3 20000 General Support Special Olympics Washington 1809 7th Ave Ste 1509 Seattle WA 98101 910962383 501c3 17000 General Support Bellevue Community College 3000 Landerholm Circle SE Bellevue WA 98007 911051671 501c3 15000 General Support Northwest Kidney Center PO Box 3035 Seattle WA 98114 916057438 501c3 15000 General Support American Jewish Committee 1402 Third Ave Ste 405 Seattle WA 98101 135563393 501c3 12500 General Support USO Puget Sound Area 17801 International Blvd Seattle WA 98159 910573116 501c3 12500 General Support Medic One Foundation 325 9th Ave MS 359747 Seattle WA 98104 916183158 501c3 10600 General Support American Diabetes Association 1730 Minor Ave Seattle WA 98101 131623888 501c3 10000 General Support Enterprise Seattle 1301 Fifth Ave Suite 2500 Seattle WA 98101 911267597 501c4 10000 General Support National MS Society 192 Nickerson St Ste 100 Seattle WA 98109 910742424 501c3 10000 General Support Pancreatic Cancer Action Network 2141 Rosecrans Av Ste 7000 El Segundo CA 90245 330841281 501c3 10000 General Support Susan G Komen for the Cure 112 Fifth Ave N Seattle WA 98109 911624040 501c3 10000 General Support The Hope Heart Institute 1380 112th Ave NE Ste 200 Bellevue WA 98004 911138000 501c3 10000 General Support American Heart Association 710 Second Ave Ste 900 Seattle WA 98104 135613797 501c3 8500 General Support Neighbor Care Health 1537 Western Ave Seattle WA 98101 910893287 501c3 8000 General Support College Success Foundation 1605 NW Sammamish Ste 200 Issaquah WA 98027 912036088 501c3 7500 General Support American Cancer Society 1313 Broadway Ste 100 Tacoma WA 98402 841316555 501c3 7000 General Support Museum of Flight 9404 E Marginal Way S Seattle WA 98108 910785826 501c3 7000 General Support Jewish Family Service 1601 16th Ave Seattle WA 98122 910565537 501c3 6500 General Support Greater Trinity Christian Learning Academy 11229 4th Ave W Everett WA 98201 911872298 501c3 5500 General Support ALS Association 19115 68th Ave S suite H-105 Kent WA 98032 911950869 501c3 5000 General Support American Lung Association 7420 SW Bridgeport Rd Ste 200 Seattle WA 98224 930386887 501c3 5000 General Support American Red Cross 1900 25th Ave S Seattle WA 98224 910565554 501c3 5000 General Support Americans for UNFPA 370 Lexington Ave Suite 720 New York NY 10017 133996346 501c3 5000 General Support City Club 1333 Fifth Ave Ste 24 Seattle WA 98101 911148262 501c3 5000 General Support Downtown Emergency Service Center 515 Third Ave Seattle WA 98104 911275815 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 Hope for Heroism 1201 Third Ave Ste 700 Seattle WA 98101 912105756 501c3 5000 General Support King County Sexual Assault Resource Center 200 Mill Ave S Ste 10 Renton WA 98057 910967255 501c3 5000 General Support National Multiple Sclerosis Society 192 Nickerson St Ste 100 Seattle WA 98109 910742424 501c3 5000 General Support Robert Vasen Foundation 2807 102n Ave SE Bellevue WA 98004 208656415 501c3 5000 General Support Safe Crossings Foundation 6548 51st Ave Seattle WA 98115 752992774 501c3 5000 General Support 43 2 I 2 The funds provided to the Virgina Mason Health System and Benaroya Research Institute at Virginia Mason are for operational support or specific activities. Assistance provided to other non-profit organizations consisted of donations made to support specific events sponsored by the recipient organizations. X X true true X X X X X false true false false false false false false false Gary Kaplan MD 935516 331324 29171 1703993 28795 3028799 Suzanne Anderson 447131 103259 23501 55723 15646 645260 Katerie Chapman 219260 45825 4140 15513 23726 308464 Lucy Glenn MD 520668 122297 17274 29549 14409 704197 Michael Glenn MD 580740 131745 17274 127422 13070 870251 Fred Govier MD 560728 126861 17274 68021 28718 801602 Kate Reed 64733 75780 182396 10472 14924 348305 Andrew Jacobs MD 441200 105165 17274 75962 34578 674179 Joyce Lammert MD 398020 90505 17468 58571 12150 576714 Brian McDonald MD 297749 877 32702 19425 350753 Sarah Patterson 472296 105494 3960 110998 26539 719287 William Poppy 352583 83473 39906 43430 31851 551243 Steve Rupp MD 474674 109484 774 30968 19731 635631 Donna Smith MD 377906 86973 15914 64522 11201 556516 Charleen Tachibana RN 345630 77822 19044 49637 17067 509200 Christopher L Fellows MD 1173564 227 774 49613 21726 1245904 Ulrike I Ochs MD 964430 12 813 29105 17979 1012339 Richard A Kozarek MD 950266 8 1188 156720 21906 1130088 Keith Paige MD 803029 270 61988 29163 894450 Edwin Rhim M D 785020 180 15512 22644 823356 James P Cote 208467 46357 17400 4915 14182 291321 Robert Mecklenburg MD 384748 25 35286 33224 19407 472690 Michael P Ondracek 205338 46852 600 598 26561 279949 Craig Goodrich 286359 69324 19080 43700 19301 437764 Catherine Potts 267372 33540 17688 26285 14026 358911 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 similar 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 nonqualifed 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. I 4b continued 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. Washington Health Care Facilities Authority 911108929 93978EH54 2007-12-03 316302277 Refund/Redeem, acquire, construct, remodel facility purchase equipment false false false 316302277 25471181 22315769 86774645 6230082 175510600 2011 true true false true false false false false 0.00001 0.00000 0.00001 true false false false true Trinity Plus Funding Company LLC 0000000017.000000000000 true false true X Joan Lange Sister of Bob Lemon 81150 Employee false The Seattle Times Tod Hamachek 333132 Goods and Services purchased false IV 2 Tod Hamacheck is a compensated director of Seattle Times. Form 990 Part III 1 The Medical Center also operates Bailey-Boushay House, a skilled nursing facility and day health center serving the HIV/AIDS community. The Medical Centers patient care services are integrated with and enhanced by education and research activities which include a graduate medical education program providing training to over 113 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 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 259 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 4a continued The Medical Center is committed to providing necessary medical services regardlesss of a patients ability to pay and without discrimination as to race, color, creed, national origin, religion, sex, sexual orientation, disability, age, source of income, or any other class protected by federal or Washington state law, or who have an emergency medical condition. The Medical Center is a participating hospital in the Washington State Medicaid Contracting Program. Charity Care is provided according to a 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. Form 990 Part III 4a continued 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 10,359,491 during the year, along with 21,533,275 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 4b The Medical Centers graduate medical education program maintains education affiliation agreements with community clinics under which the Medical Centers residents provide care to patients at clinics serving low-income and uninsured patients. The Medical Center has an affiliation with Eastgate Public Health Clinic operated by Seattle and King County Public Health to provide a resident clinic 4-days a week under the supervision of Medical Center physicians. This affiliation has expanded access to health care for King County residents and enhanced the educational opportunities of internal medicine residents. Form 990 Part III 4b continued The Clinical Nursing Education CNE program offered 25 CNE events in 2011 to 1,031 attendees. Participants include nurses primary audience and advanced practice registered nurses CNS, CNL, ARNP, as well as human resources business partners, patient service and relations project managers, customer service representatives, patient flow coordinators, respiratory therapists, social workers, pharmacists and pharmacy interns, educators, nursing students, dietitians, specialized technicians, medical assistants, patient care technicians and physicians. Form 990 Part III 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, medical insurance, 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 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. In 2010, the program was reaccredited, receiving Accreditation with Commendation a designation achieved by the top 20 percent of CME programs in the country. In 2011, the CME department sponsored 14 courses either full-, half-, or multi-day which were attended by 668 participants, including 388 physicians. Together, participants in these activities completed 3,487 hours of continuing education. Form 990 Part III 4b continued During 2011, 37 one-hour Grand Rounds presentations were presented at the Medical Center, with the on-site audience averaging 135 attendees. The Grand Rounds series is also broadcast via videoconference to 15 off-site health care systems throughout Alaska and Washington State. In 2011, 3,484 AMA PRA Category 1 Credits TM were awarded to participants in this series. The CME department also supports Regularly Scheduled Series in Cancer Care, Cardiac Catherization, Neuroscience Imaging, Competencies and Incidents, Vascular Surgery, GI Radiology, GI Pathology, and Pharmacy and Therapeutics. Form 990 Part III 4b continued Approximately 15 of our physicians 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 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 2011, the Medical Center provided 83,000 toward support of Separation and Loss. Form 990 Part III 4c continued The Medical Center also supports Tender Loving Care TLC 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 261,000 toward the operating costs of TLC in 2011. Form 990 Part III 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 2011. AHAs mission is to reduce coronary heart disease, stroke and risk by 25 by 2010. 2 SEAFAIR and the Medical Center partnered to sponsor the BRI Triathon, benefitting Autoimmune Research. 3 The Medical Center was a sponosor of the JDRF Gala to benefit the Juvenille Diabetes Research Foundation JDRF. The JDRFs mission is to find a cure for diabetes and its complications through the support of research. Form 990 Part III 4d continued 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 provided support to the United Ways fundraising effort of 199,000 in 2011. Form 990 Part III 4d continued 6 The Medical Center health care providers and staff donated free prostate cancer screenings to 350 men in the Puget Sound region, in partnership with zerocancer.org, an organization that ...leads the fight to end prostate cancer, the most commonly diagnosed cancer among men. By promoting greater awareness of the need for early detection and leveraging public resources for life-saving research and new treatments for those with advanced disease... Form 990 Part VI 2 Family relationship between key employees Michael Glenn, MD and Lucy Glenn, MD. Form 990 Part VI 4 The organization created a position of Board Chair-Elect. The Chair-Elect is expected after a one 1 year term to assume the position of Chairman of the Board. The purpose of the Chair-Elect position is to provide an opportunity for the Chair-Elect to be appropriately oriented to the role and responsibilities of the Chairman of the Board, ensuring a smooth transition of the Board Chair position. The Chair-Elect shall be an independent director, as determined by the Board of Directors in accordance with the corporations policy regarding director independence. The Chair-Elect shall serve as an ex officio member of the Officers Committee without voting rights. The Chair-Elects responsibilities are in addition to any applicable responsibilities or voting rights of such individual as a board member, Committee Chair or officer. Form 990 Part VI 4 continued The Bylaws were also amended to explicitly state that the Chairman shall be an independent director, as determined by the Board of Directors in accordance with the corporations policy regarding director independence. Form 990 Part VI 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 asssets 8 Aprroval of all amendments to the Articles of Incorporation or Bylaws. Form 990 Part VI 6,7 continued All other rights and powers as specified in the Washington Nonprofit Corporation Act. Form 990 Part VI 11b The Audit and Compliance Committee, a committee composed of independent community members of the Medical Center Board of Directors ACC 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 preparer 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. Form 990 Part VI 11b continued 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 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. Form 990 Part VI 12c continued 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. Form 990 Part VI 12c continued 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 Governance Committee informs the Covered Person 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. Form 990 Part VI 12c continued 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 Managaement 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 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. Form 990 Part VI 15 continued The Committee as part of its anlaysis 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. Form 990 Part VI 15 continued 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. Form 990 Part VI 15 continued The Executives that were reviewed in 2011 were Chief Executive Officer, Chief Operating Officer and Executive Vice President, Chief Information Officer/Chief Financial Officer and Senior Vice President, Senior Vice Presidents, Vice Presidents, Physician Chiefs, Clinic Medical Director, Hospital Medical Director. Form 990 Part VI 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 VII 1a Column B The estimated average hours per week devoted to a related organization are Alfred Lopus 2 hours, Andrew Jacobs 2 hours, Brian McDonald 0 hours, Carolyn Corvi 4 hours, Charleen Tachibana 0 hours, Christopher Fellows 0 hours, Craig Goodrich 1 hour, David Moffett 2 hours, Donna Smith 0 hours, Dorothy Mann 2 hours, Edwin Rhim 0 hours, Evelyn Cruz Sroufe 2 hours, Fred Govier 0 hours, Gary Kaplan 5 hours, James Cote 0 hours, James Orlikoff 4 hours, James Young 4 hours, Joshua Green 2 hours, Joyce Lammert 0 hours, Julie Morath 2 hours, Kate Reed 0 hours, Katerie Chapman 0 hours, Lonnie Edelheit 2 hours, Lucy Glenn 0 hours, Michael Glenn 0 hours, Michael Ondracek 0 hours, Keith Paige 0 hours, Richard Kozarek 0 hours, Richard Robbins 2 hours, Robert Lemon 5 hours, Robert Mecklenburg 25 hours, Sarah Patterson 4 hours, Steve Rupp 0 hours, Suzanne Anderson 4 hours, Tod Hamachek 2 hours Form 990 Part VII 1a Column B Ulrike Ochs 0 hours, William Poppy 0 hours Form 990 Part XI 5 Donated Capital 2,101 Additional Pension Adjustment 12,538,463 Restricted Capital Transfers 1,884,687 Unrealized Gain and Loss on Investment 4,214,039 Other-than-temporary impairment 3,516,288 Cost of Goods Sold Adjustment 2,213 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 Centers patient care services are integrated with and enhanced by education and research activities which include a graduate medical education program providing training to over 113 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 259 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 regardlesss of a patients ability to pay and without discrimination as to race, color, creed, national origin, religion, sex, sexual orientation, disability, age, source of income, or any other class protected by federal or Washington state law, or who have an emergency medical condition. The Medical Center is a participating hospital in the Washington State Medicaid Contracting Program. Charity Care is provided according to a 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. Form 990 Part III Line 4a continued 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 10,359,491 during the year, along with 21,533,275 of Medicaid contractual allowances. Charity care does not include bad debts which is the amount the Medical Center is not paid by patients deemed able to pay their bills. Form 990 Part III Line 4b The Medical Centers graduate medical education program maintains education affiliation agreements with community clinics under which the Medical Centers residents provide care to patients at clinics serving low-income and uninsured patients. The Medical Center has an affiliation with Eastgate Public Health Clinic operated by Seattle and King County Public Health to provide a resident clinic 4-days a week under the supervision of Medical Center physicians. This affiliation has expanded access to health care for King County residents and enhanced the educational opportunities of internal medicine residents. Form 990 Part III Line 4b continued The Clinical Nursing Education CNE program offered 25 CNE events in 2011 to 1,031 attendees. Participants include nurses primary audience and advanced practice registered nurses CNS, CNL, ARNP, as well as human resources business partners, patient service and relations project managers, customer service representatives, patient flow coordinators, respiratory therapists, social workers, pharmacists and pharmacy interns, educators, nursing students, dietitians, specialized technicians, medical assistants, patient care technicians 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, medical insurance, 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. In 2010, the program was reaccredited, receiving Accreditation with Commendation a designation achieved by the top 20 percent of CME programs in the country. In 2011, the CME department sponsored 14 courses either full-, half-, or multi-day which were attended by 668 participants, including 388 physicians. Together, participants in these activities completed 3,487 hours of continuing education. Form 990 Part III Line 4b continued During 2011, 37 one-hour Grand Rounds presentations were presented at the Medical Center, with the on-site audience averaging 135 attendees. The Grand Rounds series is also broadcast via videoconference to 15 off-site health care systems throughout Alaska and Washington State. In 2011, 3,484 AMA PRA Category 1 Credits TM were awarded to participants in this series. The CME department also supports Regularly Scheduled Series in Cancer Care, Cardiac Catherization, Neuroscience Imaging, Competencies and Incidents, Vascular Surgery, GI Radiology, GI Pathology, and Pharmacy and Therapeutics. Form 990 Part III Line 4b continued Approximately 15 of our physicians 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 2011, the Medical Center provided 83,000 toward support of Separation and Loss. Form 990 Part III Line 4c continued The Medical Center also supports Tender Loving Care TLC 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 261,000 toward the operating costs of TLC in 2011. 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 2011. AHAs mission is to reduce coronary heart disease, stroke and risk by 25 by 2010. 2 SEAFAIR and the Medical Center partnered to sponsor the BRI Triathon, benefitting Autoimmune Research. 3 The Medical Center was a sponosor of the JDRF Gala to benefit the Juvenille Diabetes Research Foundation JDRF. The JDRFs mission is to find a cure for diabetes and its complications through the support of research. Form 990 Part III Line 4d continued 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 provided support to the United Ways fu 1000 Madison LLC 1100 Ninth Avenue Seattle WA 98101 204018216 Real Estate WA 1180735 24108126 Virginia Mason Medical Center 1005 Spring Street LLC 1100 Ninth Avenue Seattle WA 98101 204816736 Real Estate WA 1374987 4910369 Virginia Mason Medical Center Health Resource Services LLC 1100 Olive Way Seattle WA 98101 262800944 Group Purchasing WA 7912296 10370156 Virginia Mason Medical Center 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 Virginia Mason Medical Center false Natl Purchasing Ptns LLC 1100 Olive Wy Seattle WA 98101 203470995 Group Purchasing WA N/A Unrelated 8538962 2581956 false true 0.50000 false true true 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 122311 100000 222311 862824008 863046319 940568 235142 0 0 0 Virginia Mason Health System 1100 Ninth Avenue Seattle WA 98101 911351110 0 0 0 14369012 14369012 15660 3915 0 0 0 Virginia Mason Institute 1100 Ninth Avenue Seattle WA 98101 263763656 0 0 0 2003316 2003316 2183 546 0 0 0 Benaroya Research Institute at Virginia Mason 1201 Ninth Avenue Seattle WA 98101 910653422 0 0 0 38161661 38161661 41589 10397 0 0 0