2011-11-15T08:19:38-00:00 2010-12-31 990 2010-01-01 910565539 Virginia Mason Medical Center VIRG 2062236600 1100 Ninth Avenue Seattle WA 98101 Gary Kaplan 2011-11-11 true 2069134000 2010 2016-03-07 17:11:31Z Gary Kaplan 1100 Ninth Avenue Seattle WA 98101 941203590 false X www.virginiamason.org X 1934 WA Medical Center's 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. 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 12 5803 2172 12532106 5217822 7802755 9336367 789943130 819224526 9920676 12563826 7098864 7427010 814765425 848551729 5364987 8085581 0 457117541 478076595 0 0 303605772 330371114 766088300 816533290 48677125 32018439 846953582 882192273 589236659 574734401 257716923 307457872 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 375 physicians, offering both primary and specialized care, through a regional network of neighborhood clinics and ambulatory surgery centers. false false 684136357 825918705 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 2010, the Medical Center recorded 15,343 hospital inpatient admissions, 22,722 emergency room visits and 834,406 clinic visits. The Medical Center provided charity care and unreimbursed medicaid services to a total of 5,217 patients. Continued on Schedule O 22362371 4118624 183020 Education and Research The Medical Center is an independent academic medical center with a graduate medical education program that trains over 110 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 supports 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 805556 549811 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 2010, the Medical Center provided 84,000 of support for the Teaching Center. Continued on Schedule O 4370609 3966957 711674893 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 false true false false false false false true true false false false false true 1925 0 true 5803 true true true false false false false false false false false false false X 13 12 true false false 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 1342302 0 886936 Suzanne Anderson 050.00 X 581265 0 69910 Katerie Chapman 050.00 X 251530 0 34694 Lucy Glenn MD 050.00 X 697401 0 70451 Michael Glenn MD 050.00 X 749663 0 95284 Fred Govier MD 050.00 X 710564 0 47933 Kate Reed 050.00 X 419648 0 53812 Andrew Jacobs MD 050.00 X 581130 0 107291 Joyce Lammert MD 050.00 X 519384 0 43250 Brian McDonald MD 050.00 X 393530 0 44270 Julie Morath RN 002.00 X 0 0 0 Sarah Patterson 050.00 X 590158 0 109661 William Poppy 050.00 X 505102 0 58075 Steve Rupp MD 050.00 X 618418 0 80032 Donna Smith MD 050.00 X 503669 0 86973 Charleen Tachibana RN 050.00 X 442482 0 63938 Christopher L Fellows MD 050.00 X 1080213 0 125374 Ulrike I Ochs MD 050.00 X 875250 0 45362 Richard A Kozarek MD 050.00 X 883224 0 136443 Paul B Griggs MD 050.00 X 735151 0 42928 Edwin Rhim M D 050.00 X 730590 0 35380 James P Cote 050.00 X 230678 0 13578 Robert Mecklenburg MD 050.00 X 420544 0 32601 Michael P Ondracek 050.00 X 238736 0 19637 Craig Goodrich 050.00 X 390495 0 39529 14491127 2343342 937 true true false Pitney Bowes Management Svc P O Box 840851 Dallas TX 75284 Mail Management Services 1567821 Skanska USA Building Inc 221 Yale Ave N Suite 400 Seattle WA 98109 Construction Services 61283156 Crothall Services Group Inc 955 Chesterbrook Bld Ste 300 Wayne PA 19087 Staffing Services 12225513 AMN Healthcare Inc 12400 High Bluff Drive San Diego CA 92130 Staffing Services 2060205 NBBJ Group 223 Yale Ave N Seattle WA 98109 Construction Services 1552353 46 9336367 9336367 Operating Revenues 561499 1012988780 1006213534 6775246 Medicare/Medicaid payments 621300 118717296 118717296 819224526 9010322 19083 5522026 3469213 48706 48706 1256130 838880 417250 417250 178127 239123 95182098 122649 91666332 133617 3515766 -10968 3504798 -3054 3507852 12638 13032 -394 -394 Cafeteria 722100 3131366 3131366 Parking 721110 3629706 60155 3569551 Medical Records 561499 195804 195804 53278 53278 7010154 848551729 812468363 12532106 14214893 8085581 8085581 0 0 0 10584477 6556585 4027892 0 395666585 345011682 50654903 23621795 20597633 3024162 23864602 20809356 3055246 24339136 21223137 3115999 913078 796182 116896 1584348 1584348 385060 385060 211772 211772 0 44689375 38968053 5721322 5972191 5207606 764585 147075457 128246238 18829219 24072618 20990740 3081878 0 18544209 16170101 2374108 2815127 2454723 360404 0 498448 434635 63813 5284027 4607544 676483 0 28930448 25212559 3717889 5722212 4989631 732581 Taxes 16863576 16863576 Medical Purchase Services 547098 477056 70042 Dues and Subscriptions 2022250 1763353 258897 Bad Debt Expense 9465185 9465185 Disposal of Equipment 159852 159852 14614783 12743737 1871046 816533290 711674893 104858397 0 19422509 19383788 106402722 90964109 71221903 77954742 12821963 12923192 3495923 3600429 785576517 314512424 394600909 471064093 119738846 147737870 300651 119248807 58263399 846953582 882192273 107353555 108617613 92515 43753 334025218 331425934 32025044 31906116 115740327 102740985 589236659 574734401 X 237225094 289366423 16558901 14155766 3932928 3935683 257716923 307457872 846953582 882192273 X 32018439 17722510 X false true true X false X 0.00000 0.00000 0.00000 RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED X 151772 151772 60000 118289 211772 270061 816321518 864254612 816533290 864524673 1000000 1000000 250000 250000 1000000 1000000 1000000 1000000 4000000 6000000 199415 129287 269422 270061 868185 250000 250000 250001 250000 1000001 1500002 199415 129287 152146 151772 632620 II-A A Virginia Mason Medical Center, EIN 91-0565539, 1100 Ninth Avenue, Seattle, WA 98101. Election Member, Grassroots Lobbying Expenditures 151,772, Direct Lobbying Expenditures 60,000, 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, 2010. II-A A continued Virginia Mason Medical Center pays membership dues to Washington State Hospital Association, a portion of which are 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, 4,674 Direct 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, 53,615 Direct Lobbying Expenditures, Excess Lobbying Expenditure 0. false 11663690 20 1423022 414659 12672073 9444928 230704 2265200 277142 11663690 13624798 500931 -4680801 9444928 0.60510 0.28380 0.11100 true false 36370602 36370602 203848638 106170095 97678543 20180316 7982171 12198145 277408898 199879288 77529610 247768063 480870 247287193 471064093 ARI Investment 300651 C 300651 Funds Held By Trustee 36960982 Interest Receivable Swap 200000 Long Term Receivable 253500 BB Cemetry Plots/Niches Donated Assets 17976 Parking Rights 346926 Winthrop Apartment 227800 Equity Investment-HSCA 347519 Deferred Financing Costs 9383641 Partnership Interest in National Purchasing Partners 4191677 Beneficial Interest 6317901 Start Up Costs-Madison 15477 58263399 Due to affiliates 3468955 Estimated Third Party Payor Settlement 7692477 Reserve for Professional Liability Claims 20500000 Accrued Retirement Expenses 66841259 Asbestos Abatement 1146219 Deferred Rent Credits 3092075 102740985 848551729 816533290 32018439 5907218 12462720 18369938 50388377 866146442 5907218 16570321 22477539 843668903 4882826 4882826 848551729 815758066 4107602 4107602 811650464 4882826 4882826 816533290 V 4 Support health care mission of Virginia Mason Medical Center and research mission of Benaroya Research Institute at 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, classification, interest and penalties, accounting in interim periods, disclosure and transition. This guidance did not have a significant impact to the consolidated financial statements in 2010 or 2009. XI 8 Reconciliation of Change in Net Assets from Form 990 to Audited Financial Statements-Other Adjustments - Additional Pension Adjustment 4,088,345, Restricted Capital Transfers 7,727,203, Virginia Mason Institute Revenues 2,609,257, Virginia Mason Institute Expenses 1,961,829 Donated Capital Adjustment 256 XII 2d Reconciliation of Revenue per Audited Financial Statements with Revenue per Return-Amounts included in Audited Financial Statements not on Form 990, Part VIII, Line 12, Other - Donation Transfers 2,145,772 Virginia Mason Institute Revenues 2,609,257 Donated Capital Adjustment 256 Additional Pension Adjustment 4,088,345 Restricted Capital Transfers 7,727,203 XII 4b Reconciliation of Revenue per Audited Financial Statements with Revenue per Return-Amounts included on Form 990, Part VIII, Line 12 not in Audited Financial Statements line 1, Other - Non-operating expenses 4,954,215 Financial Reclasses 620,671 Rental Expenses 838,880 Loss on Disposal of Equipment 159,852 Inventory Cost of Goods Sold 13,032 XIII 2d Reconciliatioin of Expenses per Audited Financial Statements with Expenses per Return-Amounts included in Audited Financial Statements not on Form 990, Part IX, Line 25, Other - Donation Transfers 2,145,773 Virginia Mason Institute Expenses 1,961,829 XIII 4b Reconciliation of Expenses-Amounts included on Form 990, Part IX, Line 25 not in Audited Financial Statements Line 1, Other - Non-operating expenses 4,954,215 Financial Reclasses 620,671 Rental expenses 838,880 Loss on Disposal of Equipment 159,852 Inventory Cost of Goods Sold 13,032 East Asia and the Pacific Program Services Education 37687 Europe Program Services Education 18232 North America Program Services Education 26687 Central America and the Caribbean Program Services Education 1325 South America Program Services Education 3575 Sub-Saharan Africa Program Services Education 3150 90656 90656 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 5217 8437175 8437175 0.01030 5127 25981268 18777069 7204199 0.00880 10344 34418443 18777069 15641374 0.01910 7 790 1408189 123250 1284939 0.00160 6 246 9734683 5851233 3883450 0.00480 3 2334 1125223 841558 283665 0.00030 4768799 4768799 0.00580 16 3370 17036894 6816041 10220853 0.01250 16 13714 51455337 25593110 25862227 0.03160 2 200 374205 374205 0.00050 2 200 374205 374205 0.00050 true 4744897 131264845 143357308 -12092463 X true true National Purchasing Partners Market Group Purchasing Program 0.50000 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 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. Part I line 3c 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 column f Bad Debt expense of 67,850 was included on Form 990, Part IX, line 25 but was subtracted from subsidized health services for purposes of calculating the percentage in Part I, Line 7. 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 I line 7 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 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 not eligible for the uninsured discount. Part III line 4 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 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 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 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 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 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 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 12,092,463. 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 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 This model shows that 39 million of Medicare revenue is not included in the traditional cost report with related costs of 65 million for a shortfall of 27 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 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 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 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 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. Part III line 9b 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 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 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 needs assessment. Part VI Line 2 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 Virginia Masons community is defined as King County, South Snohomish County, Kitsap County and North Pierce County. Within King County, areas are identified as Seattle, north, south and east. In several instances, the geographic areas are futher broken down by city and neighborhood. Part VI Line 2 Virginia Masons Community Needs Assessment serves as the foundation 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 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 Likewise, we provide access to care for the uninsured through our partnership with Eastgate Community Clinic, while also supporting our graduate medical education program with a superior learning environment for our residents continuity clinic experience. Part VI Line 2 As the first healthcare 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. In 2009, Virginia Mason expanded on its commitment to reducing influenza in our community by participating in the King County United Way Community Resource Exchange and delivering free flu shots to Seattles homeless population. Part VI Line 2 Virginia Masons community benefit program is also developing a comprehensive diabetes prevention program in response to the obesity and diabetes data from the needs assessment. 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 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 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 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 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 patient expressed concerns either via phone or letter. Part VI Line 3 The Medical Centers website also includes information about charity availability and the contact information to initiate an assessment. Part VI Line 4 Virginia Masons community is defined as King County, South Snohomish County, Kitsap County, and North Pierce County. Within King County, areas are identified as Seattle, north, south, 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 The Medical Centers communities of King County, Snohomish County, Kitsap County, and Pierce County has a combined population of 3,568,314 per the 2000 US Census. The demographics of these counties are 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. Part VI Line 4 The average income of these four counties is 86,000 with approximately 9 of the population below the federal poverty income guideline. Part VI Line 4 About 14 percent of the communitys patients are uninsured. Part VI Line 4 There are 43 hospitals serving these four counties. King County has 26 hospitals and specialty centers, KItsap County has 2 hospitals, Piece County has 9 hospitals, and Snohomish County has 6 hospitals. Part VI Line 4 Several of these counties have federally-designated medically underserved areas or population present in the community per the Department of Health data. Kitsap County is federally-designated for low income in the Bremerton/Port Orchard communities. Pierce County is federally-designated geographically in the communities of Longbranch, Buckley, and Eatonville/Roy. Part VI Line 4 Snohomish County is federally-designated geographically in the Skykomish, Sultan, Gold Bar, Index, Darrington and Tulalip communities. Snohomish County is also federally-designated for low income and homeless in the North Everett community. 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 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 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 of the federal poverty level in keeping with the Washington State Hospital Association voluntary guidelines on billing the uninsured. In 2010, Virginia Mason provided charity care to 5,217 patients at a cost of 8,437,175. In addition, Virginia Masons unreimbursed Medicaid was provided at a cost of 3,830,043. Part VI Line 5 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 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 several community organizations, which focus on health care. Part VI Line 5 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. Part VI Line 5 Virginia Mason trains more than 100 residents and fellows annually. Virginia Masons 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 Virginia Masons collaboration with the Eastgate Pulic 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 the 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 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. Part VI Line 5 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 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 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 devasting diseases including diabetes, arthritis, heart disease and cancer. In 2010, the Medical Center provided 4,119,000 to support research activities at BRI. Part VI Line 5 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, make 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. Part VI Line 5 For example, Virginia Mason diverted 335 tons of MSW from local landfills and 144 tons of food waste from public sewer systems by avoiding use of garbage disposals. 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 usage by 72 percent. Part VI Line 5 Virginia Mason composts 15 tons of food and material waste per month, saves about 160,000 gallons of water in the hospital kitchen 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 are compostable. Part VI Line 5 In addition, Virginia Mason has invested more than 3 million in energy conservation endeavors, including efficient lighting, advanced chiller plant installations and upgrades, and extensive water and energy and conservation measures. In 2010, Virginia Mason entered into a long-term contract with one our utility vendors to support its new biofuel boilers, reaping the benefits of a significant carbon footprint reduction. Part VI Line 5 Virginia Mason has one of the highest medical center surgery volumes in the region and about 30 percent of the organizations waste could once be traced to 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. Part VI Line 5 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 rooms is recycled. This represents about 800 pounds of recycled material each week. Part VI Line 5 Medical Staff - Virginia Mason has 755 members on its hospital staff, including Virginia Mason physicians, 223 Group Health physicians, 47 Pacific Medical Centers physicians, and 43 other community providers. Part VI Line 5 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 In futherance of its commitment to responsible governance practices, the Medical Centers Audit and Compliance Commitee, 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 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 As a futher mechanism for community involvement and leadership, Virginia Mason has established a Board of Governors an advisory body of community representatives. The Board of Governors is involved in forums for in-depth discussion of issues of importance to the Medical Center and the communities it serves. Part VI Line 5 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 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 surplus as a result of ownership or any other insider relationship. Part VI Line 5 The Compensation and Benefits Committee of the Medical Center Board, approves the compensation and benefits of the Medical Centers senior leadership, is composed entirely of community members of the Board who have no conflict of interest, including 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 3355882 Operating Support Benaroya Research Institue at Virginia Mason 1201 Ninth Avenue Seattle WA 98101 910653422 501c3 4118624 Operating Support University of Washington Foundation 1325 4th Ave Ste 2000 Seattle WA 98101 943079432 501c3 133000 General Support JDRF Seattle Guild 1200 Sixth Avenue Suite 605 Seattle WA 98101 161645215 501c3 55000 General Support American Red Cross 1900 25th Ave S Seattle WA 98101 231907729 501c3 25000 General Support Evergreen State Amateur Athletic Council 701 Pike St Ste 800 Seattle WA 98101 911099134 501c3 25000 General Support American Cancer Society 1313 Broadway Ste 100 Tacoma WA 98402 911528577 501c3 18500 General Support The First Tee of Greater Seattle 2340 Broadmoor Dr E Seattle WA 98112 910565555 501c3 18500 General Support American Heart Association 710 Second Ave Ste 900 Seattle WA 98104 131788491 501c3 17000 General Support YWCA of Seattle-KC-Snohomish Cty 1118 Fifth Ave Seattle WA 98101 042178864 501c3 16000 General Support Bellevue Community College 3000 Landerholm Circle SE Bellevue WA 98007 911997626 501c3 15000 General Support Group Health Foundation PO Box 34936 Dept 4194 Seattle WA 98124 131623888 501c3 15000 General Support National Multiple Sclerosis Society 192 Nickerson St Ste 100 Seattle WA 98109 911935159 501c3 15000 General Support Northwest Kidney Center PO Box 3035 Seattle WA 98114 911267597 501c4 15000 General Support United Way of King County 720 Second Ave Seattle WA 98104 910482890 501c3 11250 General Support King County Project Access 200 Broadway Ste 100 Seattle WA 98122 916057438 501c3 10000 General Support Pancreatic Cancer Action Network 2141 Rosecrans Avenue Suite 7000 El Segundo CA 90245 546059304 501c4 10000 General Support American Diabetes Association 1730 Minor Avenue Seattle WA 98101 911246278 501c6 15000 General Support Enterprise Seattle 1301 Fifth Ave Suite 2500 Seattle WA 98101 135563393 501c6 10000 General Support Medical Teams International PO Box 10 Portland OR 97207 916056410 501c6 10000 General Support Peacock Family Services PO Box 11103 Bainbridge Island WA 98110 135613797 501c3 10000 General Support Seafair 2200 Sixth Ave Ste 400 Seattle WA 98121 911419327 501c3 10000 General Support Susan G Komen for the Cure 112 Fifth Ave N Seattle WA 98109 530196605 501c3 10000 General Support The Foundation of the Rotary Club of Mercer Island PO Box 1 Mercer Island WA 98040 911058004 501c3 10000 General Support The Hope Heart Institute 1380 112th Ave NE Ste 200 Bellevue WA 98004 237100868 501c3 10000 General Support Zero 10 G Street NE Ste 601 Washington DC 20002 911030686 501c3 8000 General Support Foundation for Health Care Quality 705 Second Ave Suite 703 Seattle WA 98104 134280980 501c3 7500 General Support American Liver Foundation 1311 Republican St Seattle WA 98109 204377921 501c3 6500 General Support City Club 1333 Fifth Ave Ste 24 Seattle WA 98101 910967255 501c3 5800 General Support Alaska Physicians & Surgeons 4120 Laurel St Ste 206 Anchorage AK 99508 911275815 501c3 5000 General Support ALS Association 19115 68th Ave S Suite H-105 Kent WA 98032 571212537 501c3 5000 General Support Building Changes 2014 E Madison 200 Seattle WA 98122 912065051 501c3 5000 General Support College Success Foundation 1605 NW Sammamish Rd Ste 200 Issaquah WA 98027 330841281 501c3 5000 General Support DESC 515 Third Ave Seattle WA 98104 911558287 501c3 5000 General Support Girls on the Run Puget Sound 8757 15th Ave NW Seattle WA 98117 450505050 501c3 5000 General Support Heart of Seattle Schools PO Box 1724 Seattle WA 98111 208656415 501c3 5000 General Support Island Hospital Foundation 1211 24th St Anacortes WA 98221 910893287 501c3 5000 General Support King County Sexual Assault Resource Center 200 Mill Ave S Suite 10 Renton WA 98057 911143444 501c3 5000 General Support Neighborcare Health 1537 Western Ave Seattle WA 98101 800285920 501c3 5000 General Support Overlake Hospital Auxiliaries 1035 116th Ave NE Bellevue WA 98004 410944493 501c3 5000 General Support Robert Vasen Foundation 2807 102nd Ave SE Bellevue WA 98004 060726487 501c3 5000 General Support 36 5 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 true true X X X X X X false true false false false false false false false Gary Kaplan MD 893606 431422 17274 849924 37012 2229238 Suzanne Anderson 426093 129945 25227 52972 16938 651175 Katerie Chapman 194101 56889 540 15512 19182 286224 Lucy Glenn MD 519474 160653 17274 63443 7008 767852 Michael Glenn MD 559570 172819 17274 87177 8107 844947 Fred Govier MD 527804 165486 17274 22988 24945 758497 Kate Reed 308028 93740 17880 33645 20167 473460 Andrew Jacobs MD 427030 136826 17274 76492 30799 688421 Joyce Lammert MD 375844 126266 17274 32519 10731 562634 Brian McDonald MD 299979 92777 774 27458 16812 437800 Sarah Patterson 453950 132248 3960 88039 21622 699819 William Poppy 353237 111959 39906 29132 28943 563177 Steve Rupp MD 472836 144808 774 62840 17191 698449 Donna Smith MD 366395 121361 15914 86675 297 590642 Charleen Tachibana RN 317512 105926 19044 46891 17047 506420 Christopher L Fellows MD 1079414 25 774 99755 25619 1205587 Ulrike I Ochs MD 874980 270 26843 18519 920612 Richard A Kozarek MD 882036 1188 117268 19175 1019667 Paul B Griggs MD 734696 185 270 25409 17519 778079 Edwin Rhim M D 730387 23 180 15512 19868 765970 James P Cote 178946 34332 17400 13578 244256 Robert Mecklenburg MD 418219 39 2286 15806 16795 453145 Michael P Ondracek 197872 40263 600 19637 258372 Craig Goodrich 280054 91361 19080 22307 17222 430024 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 which 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 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 delegatess 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 true 0.00001 0.00000 0.00001 true false false false true Trinity Plus Funding Company LLC 0000000001.400000000000 true false true Joan Lange Sister of Bob Lemon 79786 Employee false 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 110 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, physicial 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 facillity in the nation built specifically for the care of people living with AIDS, Bailey-Boushay now serves other individuals who need intensive nursing care, many of whom are Medicaid recipents. In addition to the care provided to its residential population, Bailey-Boushay provides day health services to 225 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 regardless 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 applicable 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 8,549,940 during the year, along with 19,472,000 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 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 education opportunities of internal medicine residents. Form 990 Part III 4b continued The Clinical Nursing Education CNE program offered 25 CNE events in 2010 to 1,152 attendees. Participants include nurses primary audience and advanced practice registered nurses CNS, CNL, ARNP, as well as physical, occupational and respiratory therapists, social workers, pharmacists and pharmacy interns, educators, nursing students, dietitians, specialized technicians, medical assistants and physicians. The Medical Center also serves 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. Sucessful 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 2010, the CME department provided 13 courses either full-, half-, or multi-day which was attended by 570 participants, including 391 physicians. Together, these participants were awarded 2,975 AMA PRA Category 1 CreditsTM. In addition to the courses, the CME Program provides continuing education via regularly scheduled series. Form 990 Part III 4b continued During 2010, 37 one-hour Grand Rounds presentations were presented at the Medical Center, with the on-site audience averaging 122 attendees. The Grand Rounds series is also broadcast via videoconference to 32 off-site health care systems througout Alaska and Washington State. In 2010, 3,317 AMA PRA Category 1 CreditsTM were awarded to participants. The CME department also provides seven other Regularly Scheduled Series. In 2010, we also offered a total of 295 Cancer Care conferences, 41 Cardiac Catherization conferences, 47 Neuroscience Imaging conferences, 43 Competencies and Incident conferences, 5 Vascular Surgery conferences, 23 GI Radiology conferences and 15 GI Pathology conferences. In 2010, a total of 295 physicians participated in these series, earning a total of 3,572 AMA PRA Category 1 CreditsTM. Form 990 Part III 4b continued Approximately 20 of our staff have faculty appointments at the University of Washington, including 6 at a 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 or 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. 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 mildiy ill children. The Medical Center provided 258,000 toward the operating costs of TLC in 2010. 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 some of the community donations is included on Schedule I. The following is a description of selected recipeints 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 2010. 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 Tiriathon, 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. Form 990 Part III 4d continued 4 The Medical Center was a sponsor of the Winslow Relay for Life, a two-day event that benefits the American Cancer Society. The American Cancer Society is a nationwide community-based voluntary health organization dedicated to eliminating cancer as a major health problem by preventing cancer, saving lives, and diminishing suffering from cancer, through research, education, advocacy, and service, Form 990 Part III 4d continued 5 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. Form 990 Part III 4d continued 6 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 with 161,000 in 2010. The Medical Center also provided free flu shots for the King County homeless population at the United Way Community Resource Exchange in October of 2010. Form 990 Part VI 2 Family relationship between key employees Michael Glenn, MD and Lucy Glenn, MD. 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 Director 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. 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 Committe, 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 990T tax returns, and 3 recommend the final form 990 and 990-T tax returns for approval 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 a 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 sign 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 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 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 analysis obtains from the compensation consultant appropriate comparabillity data including total compensation paid by similarly situated for-profit and non-profit health care organizations for positions that are funtionally 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 2010 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, Informatics Medical Director, Quality Medical Director, Perioperative Services Medical Director, and Graduate Medical Education Physician 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, Paul Griggs 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 continued Ulrike Ochs 0 hours, William Poppy 0 hours. Form 990 Part XI 5 Donated Capital 256 Additonal Pension Adjustment 4,088,345 Restricted Capital Transfers 7,727,203 Unrealized Gain/Loss on Investments 6,443,915 Other-than-temporary impairment 536,697 1000 Madison LLC 1100 Ninth Avenue Seattle WA 98101 204018216 Real Estate WA 1111566 24454540 N/A 1005 Spring Street LLC 1100 Ninth Avenue Seattle WA 98101 204816736 Real Estate WA 1239346 5321850 N/A Health Resource Services LLC 1100 Olive Way Seattle WA 98101 262800944 Group Purchasing WA 7015893 7271013 N/A Virginia Mason Health System 1100 Ninth Avenue Seattle WA 98101 911351110 Fundraising WA 501c3 7 N/A false Virginia Mason Institute 1100 Ninth Avenue Seattle WA 98101 263763656 Education/Research WA 501 c 3 9 N/A false National Purchasing Partners LLC 1100 Olive Way Seattle WA 98101 203470995 Group Purchasing WA N/A Unrelated 5522026 4899398 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 151772 60000 211772 816321518 816533290 944488 236122 0 0 0 Virginia Mason Health System 1100 Ninth Avenue Seattle WA 98101 911351110 0 4674 4674 15283658 15288332 17684 4421 0 0 0 Virginia Mason Institute 1100 Ninth Avenue Seattle WA 98101 263763656 0 0 0 1961828 1961828 2269 567 0 0 0 Benaroya Research Institute at Virginia Mason 1201 Ninth Avenue Seattle WA 98101 910653422 0 53615 53615 30687608 30741223 35559 8890 0 18056 0