2019-05-14T12:35:59-05:00 2018-06-30 GRANT THORNTON LLP 171 N CLARK ST SUITE 200 CHICAGO IL 60601 990 2017-07-01 510659139 Verity Business Services % ANDREW FIERRO-PERETTI VERI 4243670711 2040 E Mariposa Avenue El Segundo CA 90245 ANITA CHOU CFO 4243670690 2019-05-15 true BRIDGET T ROCHE P00666837 3128560200 2019-05-15 65.229.28.136 36941220191345000002 2019-05-14 P 9FF02605DDB28011F037B2D6F18B6026DAFD1911 2E60223BD50E62A5C7C46491495F31A050EDCED3 2017 2019-02-21 02:37:17Z Richard Adcock 2300 E Imperial Highway El Segundo CA 90245 36273292 false 6153 X N/A X 2007 CA VBS PROVIDES ESSENTIAL SERVICES FOR THE HOSPITALS OF VHS, INCLUDING PATIENT FINANCIAL SERVICES, ACCOUNTING, PAYROLL, ACCOUNTS PAYABLE AND BUDGETING, AMONG OTHERS. 4 0 297 0 0 0 0 0 13244504 36273292 0 0 0 0 13244504 36273292 0 0 0 0 9590050 21919724 0 0 0 3654454 14353568 13244504 36273292 0 14208217 28294216 12084598 26181500 2123619 2112716 X Verity business services ("VBS") is organized to support the purposes of Verity Health System of California, Inc. ("VHS") by (I) arranging for the provision of healthcare services, including the operation and maintenance of ambulatory care clinics and related facilities, (II) promoting research related to healthcare services, (III) providing healthcare services to all persons without regard to their ability to pay, (IV) promoting the general health of the communities served by VHS and its affiliated healthcare facilities and (V) providing financial and other forms of assistance for the benefit of other healthcare facilities affiliated with VHS. false false 34814789 36273292 VBS PROVIDES ESSENTIAL SERVICES FOR THE AFFILIATED HOSPITALS OF VHS, INCLUDING ST. FRANCIS MEDICAL CENTER, ST. VINCENT MEDICAL CENTER, SAINT LOUISE REGIONAL HOSPITAL, O'CONNOR HOSPITAL, AND SETON MEDICAL CENTER. THESE SERVICES INCLUDE: PATIENT FINANCIAL SERVICES (INCLUDING IMPLEMENTING THE FINANCIAL PROVISIONS OF THE HOSPITALS' CHARITY CARE POLICIES); ACCOUNTING FOR THE FINANCIAL VALUE OF THE COMMUNITY BENEFITS PROVIDED BY THE HOSPITALS; PROVIDING GENERAL ACCOUNTING SUPPORT; PAYROLL; ACCOUNTS PAYABLE; BUDGETING; DECISION SUPPORT AND FINANCIAL ANALYSIS; COST REPORT PREPARATION; AND SIMILAR SERVICES ESSENTIAL TO THE OPERATIONS OF THE HOSPITALS AFFILIATED WITH VHS. 34814789 true false false false false false false false false false true false false true true false false false false false false false false false false false false false false true false false false false false false false false false false false false false true false false false true 11 0 297 true false false false false false false false false false false X 4 0 true true false false true true true true true false false true true true true true true false true false CA X ANDREW FIERRO-PERETTI 6509915428 1500 SOUTHGATE AVE DALY CITY CA 94015 Todd Schroeder CFO 40.0 0.0 X X 0 244182 25302 Ty Conner President, CEO & Chair 40.0 0.0 X X 0 317382 18000 Sarang Tatimatia Secretary 40.0 0.0 X X 0 276615 3780 Andrei Soran Ex-officio (THRU 07/2017) 1.0 44.0 X 0 0 0 Richard Adcock Ex-Officio (BEG 12/2017) 1.0 44.0 X 0 0 0 TINA M CORDERO Financial Reporting Dir & CRO 40.0 0.0 X 163484 0 26537 GARY G TROST VIC LEAN MANAGER 40.0 0.0 X 179780 0 24000 DANIELLE M MARCH CORP DIR OF REV CYCLE-PAT ACCS 40.0 0.0 X 160711 0 9815 BARBARA MAGGIORA MANAGER, ACCOUNTS PAYABLE 40.0 0.0 X 126043 0 11278 MELINDA R BREEDE VIC LEAN MANAGER 40.0 0.0 X 123341 0 8560 Mee Vang VIC Consultant 40.0 0.0 X 123829 0 16643 877188 838179 143915 14 false true false RANDSTAD F ARANDSTAD NORTH AMERICA PO BOX 894217 LOS ANGELES CA 901894217 Short-Term Staffing 252533 IDEA CONSULTING GROUP INC 8013 CLEMENTINE LANE TAMPA FL 33625 Consult. & Mgmt Fees 161571 WIPFLI LLP PO BOX 3160 MILWAUKEE WI 532013160 Consult. & Mgmt Fees 157698 ACCOUNTEMPS PO BOX 743295 LOS ANGELES CA 900743295 Short-Term Staffing 153428 JEFFER MANGELS BUTLER AND MITCHELL 1801 W OLYMPIC BLVD PASADENA CA 911991263 Legal Services 134136 5 0 SUPPORT SERVICES 900099 36273292 36273292 36273292 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 36273292 36273292 X 0 0 0 0 186113 186113 0 0 0 17889314 17889314 287248 287248 2218003 2218003 1339046 1339046 790301 790301 63 63 0 0 0 0 10816563 10816563 0 542195 406646 135549 51889 38917 12972 0 1666256 1249692 416564 111006 83254 27752 0 44314 44314 1897 1897 0 160354 150733 9621 42464 22931 19533 DUES & SUBSCRIPTIONS 18802 18802 . 0 . 0 . 0 107464 107464 36273292 34814789 1458503 0 X 0 0 104439 146014 0 0 119440 50657 0 0 0 0 0 0 0 0 172608 2000 5247266 3638952 232549 1608314 0 0 0 0 0 0 0 0 13579181 26487231 14208217 28294216 1643100 7199273 0 0 0 0 0 0 0 0 0 0 0 0 0 0 10441498 18982227 12084598 26181500 X 2123619 2112716 0 0 0 0 2123619 2112716 14208217 28294216 X 0 -10903 X false false false X X 5 SETON MEDICAL CENTER 912154441 3 true 6929049 0 O'CONNOR HOSPITAL 912154436 3 true 8611429 0 ST VINCENT MEDICAL CENTER 912154438 3 true 6839060 0 SAINT LOUISE REGIONAL HOSPITAL 912154437 3 true 2325290 0 ST FRANCIS MEDICAL CENTER 912154439 3 true 11568464 0 5 36273292 true false false false false false false false false false false false false false false false SCHEDULE A, PART IV, SECTION C, LINE 1 THE BOARD OF DIRECTORS OF VERITY BUSINESS SERVICES IS APPOINTED BY VERITY HEALTH SYSTEM of California, Inc. ("VHS"), ITS SOLE CORPORATE MEMBER. THE BOARD OF DIRECTORS OF ALL OF THE SUPPORTED ORGANIZATIONS OF VERITY BUSINESS SERVICES (ST. FRANCIS MEDICAL CENTER, ST. VINCENT MEDICAL CENTER, SAINT LOUISE REGIONAL HOSPITAL, O'CONNOR HOSPITAL, and SETON MEDICAL CENTER) ARE ALSO APPOINTED BY VHS, THEIR SOLE CORPORATE MEMBER. 144061 143217 844 1871776 451328 1420448 3231429 3044407 187022 1608314 DUE FROM RELATED ORGANIZATIONS 26365759 DEPOSITS 121472 26487231 0 DUE TO RELATED ORGANIZATIONS 18982227 18982227 X X X X X false false false false false false false false false Todd Schroeder CFO 0 244182 0 0 0 0 0 25302 0 0 0 269484 0 0 Ty Conner President, CEO & Chair 0 301361 0 16021 0 0 0 18000 0 0 0 335382 0 0 Sarang Tatimatia Secretary 0 253618 0 0 0 22997 0 0 0 3780 0 280395 0 0 GARY G TROST VIC LEAN MANAGER 179780 0 0 0 0 0 24000 0 0 0 203780 0 0 0 DANIELLE M MARCH CORP DIR OF REV CYCLE-PAT ACCS 160711 0 0 0 0 0 0 0 9815 0 170526 0 0 0 TINA M CORDERO Financial Reporting Dir & CRO 163484 0 0 0 0 0 0 26537 0 190021 0 0 0 Methods Used to Establish Compensation of CFO by Related Organization SCHEDULE J, PART I, LINE 3 THE CEO & CFO OF VBS WERE EMPLOYEES OF VHS, A RELATED ORGANIZATION, FOR THE 2017 CALENDAR YEAR. THE CEO & CFO OF VBS IS PAID THROUGH A COMMON PAYMASTER, VHS. VHS UTILIZES AVAILABLE MARKET DATA ANALYSIS WHICH INCLUDES INDEPENDENT COMPENSATION CONSULTANTS, FORM 990S OF OTHER ORGANIZATIONS, COMPENSATION SURVEYS OR STUDIES, AND RECOMMENDATIONS FROM THE AUTHORIZED COMMITTEE AND APPROVAL BY THE BOARD OF DIRECTORS. BOARD MEMBER RIGHTS FORM 990, PART I, LINE 4 & FORM 990, PART VI, SECTION A, LINE 1B: THE BOARD MEMBERS OF VBS ARE NOT COMPENSATED FOR THEIR SERVICES AS BOARD MEMBERS, BUT ARE FULL-TIME EMPLOYEES OF THE SUPPORTED ORGANIZATIONS (OR THEIR SOLE CORPORATE MEMBER) AND SERVE AS BOARD MEMBERS AS A RESULT OF THEIR POSITIONS. ALL COMPENSATION RELATES TO SERVICES TO THE SUPPORTED ORGANIZATIONS (OR THEIR SOLE CORPORATE MEMBER). BUSINESS RELATIONSHIP FORM 990, PART VI, SECTION A, LINE 2 Richard Adcock Business Relationship Andrei Soran Business Relationship MANAGEMENT DUTIES FORM 990, PART VI, SECTION A, LINE 3: The parent of VBS, Verity Health System of California, Inc. ("VHS"), entered into a management agreement with Integrity Healthcare, LLC, A WHOLLY-OWNED SUBSIDIARY OF BLUEMOUNTAIN CAPITAL MANAGEMENT, LLC (WHICH PROVIDED FINANCING IN EXCHANGE FOR AN OPTION TO PURCHASE THE ASSETS OF VHS), EFFECTIVE ON DECEMBER 14, 2015. THE MANAGEMENT AGREEMENT PROVIDES THAT, SUBJECT TO THE SUPERVISION OF THE BOARD OF DIRECTORS, VHS EXCLUSIVELY DESIGNATES AND APPOINTS INTEGRITY HEALTHCARE, LLC AS ITS SOLE AND EXCLUSIVE AGENT TO PROVIDE AND ASSUME RESPONSIBILITY FOR THE MANAGEMENT AND ADMINISTRATIVE AND SUPPORT SERVICES OF VHS AND ITS AFFILIATES. DURING THE JUNE 30, 2018 FISCAL YEAR, THE POSITION OF CHIEF EXECUTIVE OFFICER OF VHS WAS DESIGNATED PURSUANT TO THE BYLAWS OF VBS AS AN EX-OFFICIO BOARD MEMBER OF VBS. THE INDIVIDUALS SERVING IN THIS POSITION WERE PROVIDED BY INTEGRITY HEALTHCARE, LLC DURING THE FISCAL YEAR. WHILE NEITHER VBS NOR VHS DIRECTLY COMPENSATED THESE INDIVIDUALS (LISTED BELOW), THEY WERE COMPENSATED AS PART OF THE AFOREMENTIONED MANAGEMENT AGREEMENT FOR SERVICES AS OFFICERS OF VHS, WHICH INCLUDED SERVICE AS EX-OFFICIO BOARD MEMBERS OF VBS DURING FY18. RICHard ADCOCK, EX-OFFICIO Board Member OF VBS: $795,699 Andrei Soran, Ex-Officio Board Member of VBS: $7,093,797 MEMBERS OR STOCKHOLDERS FORM 990, PART VI, SECTION A, LINE 6: VBS HAS ONE MEMBER, VHS, a California nonprofit corporation. MEMBERS OR STOCKHOLDERS WITH POWER TO APPOINT FORM 990, PART VI, SECTION A, LINE 7A: VBS'S SOLE MEMBER, VHS, HAS THE AUTHORITY TO APPOINT, ELECT OR APPROVE THE GOVERNING BODY OF VBS. DECISION SUBJECT TO APPROVAL FORM 990, PART VI, SECTION A, LINE 7B: As the sole member of VBS under the California Nonprofit Corporation Law, VHS has all corresponding statutory rights and powers of membership. In addition, VHS has the power to take or approve the following actions: (a) Approve or change the mission, role and purpose of this Corporation; (b) Amend the Bylaws and Articles of Incorporation of this Corporation; (c) Authorize the Board of Directors to amend the bylaws, articles of incorporation or other organizational documents of any Affiliate; (d) Approve the formation, merger, dissolution, consolidation, divestiture, closure, change in corporate membership or control and reorganization of each direct Affiliate of controlled by this Corporation; (e) Fix the number, and appoint and remove the Directors of this Corporation; (f) Appoint and remove the Chairperson of the Board and the President and Chief Executive Officer of this Corporation and each direct Affiliate or Subsidiary of this Corporation and of each direct Affiliate or Subsidiary of this Corporation; (g) Approve the merger, consolidation, reorganization, or dissolution of this Corporation and the disposition of the assets of this Corporation upon dissolution; (h) Approve the acquisition, sale, lease, mortgage, transfer or other alienation of real or personal property of this Corporation other than in accordance with the System Authority Matrix; (i) Approve the capital and operating budgets of this Corporation or any Affiliate controlled by this Corporation; (j) Approve the incurrence of debt or guaranties of this Corporation other than in accordance with the System Authority Matrix; (k) Approve general policies concerning quality of care objectives for this Corporation in furtherance of consistency among Verity Affiliates; (l) Establish policy and procedures concerning finance and resources for the Corporation and to approve any such policies or procedures that are inconsistent with such policies or procedures; (m) Establish criteria for the long-range financial and strategic plans of the Corporation and to approve any such plans; (n) Establish an internal auditing program and approve any material element of the internal auditing program for this Corporation that is inconsistent with the internal auditing program established by the Corporate Member; (o) Approve capital expenditures by this Corporation or for any Affiliate controlled by this Corporation other than in accordance with the System Authority Matrix; (p) Approve the transfer of funds, by gift or loan, between this Corporation and one (1) or more other Affiliates of Verity and this Corporation or to any other person or entity other than in accordance with System Authority Matrix; and (q) Approve any other action by this Corporation or for any Affiliate controlled by this Corporation that has been established by resolution of the Corporate Member as requiring its approval, including, but not limited to, any approvals of authority necessary to ensure compliance with any credit agreement, master indenture or loan agreement to which this Corporation or any Affiliate controlled by this Corporation is a party. FORM 990 REVIEW PROCESS FORM 990, PART VI, SECTION B, LINE 11B: The independent tax preparers and finance staff of VHS and its affiliated companies (the "Organization") work to gather the required information necessary to complete the Form 990. The initial draft Form 990 is reviewed by the Organizations finance and legal department. AFTER THE FORM 990 IS REVIEWED, RECOMMENDED CHANGES ARE DISCUSSED AND A FINAL FORM 990 IS PREPARED. PRIOR TO FILING WITH THE INTERNAL REVENUE SERVICE, THE FINAL FORM 990 IS DISTRIBUTED TO VBS'S BOARD OF DIRECTORS FOR REVIEW. CONFLICT OF INTEREST POLICY FORM 990, PART VI, SECTION B, LINE 12C: VHS HAS A CONFLICT OF INTEREST POLICY THAT COVERS VHS AND ALL OF ITS AFFILIATES. THE POLICY PROVIDES FOR A SYSTEMATIC AND ONGOING METHOD OF REQUIRING INDIVIDUALS WHO HAVE DECISION MAKING RESPONSIBILITIES TO DISCLOSE AND ADDRESS POTENTIAL AND ACTUAL CONFLICTS OF INTEREST. COVERED INDIVIDUALS ARE REQUIRED TO COMPLETE AN ANNUAL STATEMENT DISCLOSING ANY CONFLICTS OF INTEREST AND HAVE A DUTY TO UPDATE THE DISCLOSURE FOR ANY POTENTIAL CONFLICTS OF INTEREST THAT ARISE DURING THE YEAR. THE PRESIDENT & CEO OF Each INDIVIDUAL HOSPITAL WITHIN THE HEALTH SYSTEM REPORTs THE CONFLICT OF INTEREST FINDINGS AND RESOLUTIONS TO THEIR RESPECTIVE BOARD OF DIRECTORS. THIS POLICY IS REVIEWED ANNUALLY FOR COMPLIANCE BY VHS' CORPORATE RESPONSIBILITY OFFICER. PROCESS FOR DETERMINING COMPENSATION OTHER THAN TOP MANAGEMENT FORM 990, PART VI, SECTION B 15B: The Board, or any authorized Committee of the Board, shall review and approve the compensation, including benefits, of the President and CEO and the CFO to ensure that each such officers compensation is just and reasonable. Such review and approval shall occur when the officer is initially hired, whenever the officers term of employment is renewed or extended, and when the officers compensation is modified, unless such modification applies to substantially all employees. IN EVALUATING AND FINALIZING ITS DETERMINATION OF BASE PAY AND TOTAL COMPENSATION FOR COMPARABLE POSITIONS AT COMPARABLE ORGANIZATIONS IN COMPARABLE MARKETS, VBS UTILIZES AVAILABLE MARKET DATA ANALYSES WHICH INCLUDES INDEPENDENT COMPENSATION CONSULTANTS, FORM 990S OF OTHER ORGANIZATIONS, COMPENSATION SURVEYS OR STUDIES, AND RECOMMENDATIONS FROM THE authorized COMMITTEE AND APPROVAL BY THE VBS BOARD OF DIRECTORS. Compensation is contemporaneously documented in the minutes. HOW DOCUMENTS ARE MADE AVAILABLE TO THE PUBLIC FORM 990, PART VI, SECTION C, LINE 19: No documents available to the public. CHANGE IN NET ASSETS OR FUND BALANCES Form 990, part xi, line 9 Intercompany net asset transfers ($10,903) FINANCIAL STATEMENTS AND REPORTING FORM 990, PART XII On August 31, 2018, Verity Health System of California, Inc. ("VHS") and 16 of its affiliated companies, including VBS, each filed voluntary petitions for relief under Chapter 11 of the United States Bankruptcy Code. The bankruptcy cases are jointly administered under Case No. 18-20151 in the United States Bankruptcy Court for the Central District of California. Court filings are available at kccllc.net/verityhealth. FORM 990 PART IX LINE 11G DESCRIPTION:COLLECTION AGENCY FEES TOTAL FEES:6289684 FORM 990 PART IX LINE 11G DESCRIPTION:OTHER OUTSOURCED SERVICES TOTAL FEES:3040765 FORM 990 PART IX LINE 11G DESCRIPTION:CONTRACT LABOR TOTAL FEES:1486114 Robert F Kennedy Medical Center Found 2040 E Mariposa Avenue El Segundo CA 90245 953745227 Inactive CA 501(c)(3) 7 VHS false ST FRANCIS MEDICAL CENTER FOUNDATION 3630 E Imperial Highway Lynwood CA 90262 953190773 HOSP SUPPORT CA 501(C)(3) 12-I VHS false ST VINCENT FOUNDATION 2131 W Third Street Los Angeles CA 90057 953922511 HOSP SUPPORT CA 501(C)(3) 12-I VHS false false false false true true false false false false false false true false true true false false false false