2017-11-10T04:06:04-00:00 2016-12-31 KPMG LLP 1918 8th Avenue Suite 2900 Seattle WA 98101 990 2016-01-01 263763656 Virginia Mason Institute VIRG 2063411600 1100 Ninth Avenue Seattle WA 98101 Gary Kaplan MD Chairman and CEO 2017-11-10 true Sue Robison 2069134000 204.147.223.1 2017-11-11 06:33:34 PS P 3583005D7428F592DDBE4235A0F9C55007128F9F 3583005D7428F592DDBE4235A0F9C55007128F9F 2016 2018-03-14 21:41:22Z Gary Kaplan MD 1100 Ninth Avenue Seattle WA 98101 10524609 false X www.vmmc.org/vmi X 2008 WA Virginia Mason Institute, a nonprofit education and training organization, has created a vision to become the primary resource and inspiration for those who seek to transform health care and a mission to relentlessly pur 5 3 0 2 0 273 138 8433620 10442611 31978 62109 19716 19751 8485587 10524609 0 0 4299515 4925602 0 0 2226953 2175021 6526468 7100623 1959119 3423986 11791683 16882023 5857985 7524339 5933698 9357684 X Virginia Mason Institute, a nonprofit education and training organization, has created a vision to become the primary resource and inspiration for those who seek to transform health care and a mission to relentlessly pursue the improvement of patient safety, patient experience and the quality and value of health care. false false 1799373 2015580 Education Services Through education services, Virginia Mason Institute delivers learning activities - in Seattle at the Institutes facility and onsite at other health care organizations internationally - that inspire, engage and motivate individuals to transform health care. Using case studies, hands-on exercises, panels featuring lean practitioners and health care providers, medical facility tours that showcase lean processes in action, simulations and coaching, the Institutes education services equip participants with new skills, new ideas and continuing medical education credits. Most significantly, participants learn how Virginia Mason consistently puts the patient first in everything it does, and they leave inspired to create their own patient-centered processes in their daily work with and for patients. In 2016, through education services, the Institute delivered 398 days of training to 1,394 participants. 2577084 8212083 Transformation Services Through the provision of transformation services, Virginia Mason Institute educators work onsite within health care organizations to help them build organizational capability to create and sustain a culture of continuous improvement through the practical application and embedment of the tools and methods of Virginia Masons proprietary lean management method, the Virginia Mason Production System. In 2016, Virginia Mason Institute partnered with and provided transformation services to 23 health care organizations worldwide, with the services directly impacting and influencing employees and patients across all areas of those organizations. 153194 94965 Research and Clinical Value Stream Licensure The Institute researches best practices in evidence-based medicine to develop clinical value streams, which are standardized patient care pathways that offer patients rapid access to evidence-based care for clinical conditions. One method of developing the clinical value streams uses a marketplace collaborative model in which employers, providers and payers work together to redesign the health care delivery for defined conditions, with the specific goals of achieving same-day access to treatment, 100 patient satisfaction, rapid return to function, evidence-based care and affordable costs. Each clinical value stream includes urgent/emergent guidelines, standard work and other tools, patient education resources and evidence-based guidelines for recommended treatment. In 2016, the Institute shared its clinical value stream tools, procedures and knowledge with one health care organization. 526711 119983 5056362 true false false true false false false false false false true false false false true true false true false false true false false false false false false false false true false false false false false false false false false false false false false false false false true false false false false true 0 0 0 false false false false false false false false false false false X 5 3 false true false false true true true true true false false true true true true true true true true false X MaryAnne Olmstead 2066257371 1100 Olive Way Suite 605 Seattle WA 98101 Carolyn Corvi Director 002.00 004.00 X 0 0 0 Gary S Kaplan MD Director, Chairman 002.00 053.00 X X 0 11562939 154309 Robert Lemon Director 002.00 004.00 X 0 0 0 James Orlikoff Director 002.00 004.00 X 0 0 0 James Young Director 002.00 004.00 X 0 0 0 Suzanne Anderson Secretary/Treasurer 002.00 052.00 X 0 772642 124092 Sarah Patterson Vice Chairman 002.00 052.00 X 0 582336 133308 Craig Goodrich Senior Vice President, CFO 002.00 052.00 X 0 411739 64100 Diane Miller Executive Director 040.00 010.00 X 0 378627 24993 Henry Otero MD Faculty Instructor 050.00 X 0 278045 15742 Celeste Derheimer Transformation Sensei 050.00 X 0 150210 29258 Megan McIntyre Faculty Instructor 050.00 X 0 150743 26335 Gordon Sansaver Operations Director 050.00 X 0 163970 25321 Kristen Turner Transformation Director 050.00 X 0 148989 20890 14600240 618348 false true false Amicus Inc 103 Avon Hill Street Cambridge MA 02140 Consulting Services 149744 1 138 138 Education Services 541610 2015580 2015580 Transformation Services 541610 8212083 8212083 Speakers Bureau 541610 119983 119983 Licensure 541610 94965 94965 10442611 62109 62109 19751 19751 10524609 10442611 81860 0 0 0 0 305046 305046 0 3718015 2616063 1101952 0 902541 649835 252706 0 0 1316 1316 0 0 0 26867 21153 5714 119433 118628 805 18482 6198 12284 72635 38725 33910 0 329980 219293 110687 597099 545019 52080 0 0 0 0 164165 109495 54670 0 Direct program costs 601132 493293 107839 Other supplies 5 5 Business licenses/taxes 208227 208227 Minor equipment 11682 7848 3834 23998 22580 1418 7100623 5056362 2044261 0 65045 4101055 7446253 11488060 3183199 359888 1265532 332512 1097186 933020 11791683 16882023 5567944 7300007 290041 224332 5857985 7524339 X 5933698 9357684 5933698 9357684 11791683 16882023 3423986 X false true X true false X 0 0.00000 36 273 138 447 3662851 4218294 5551689 8433620 10442611 32309065 3662851 4218294 5551725 8433893 10442749 32309512 32309512 10778 11839 41046 51694 81860 197217 0 10778 11839 41046 51694 81860 197217 0 0 3673629 4230133 5592771 8485587 10524609 32506729 0.99390 0.99500 0.00610 0.00500 X X 163134 112648 275782 7100623 1503935718 7100623 1504211500 505031 1000000 126258 250000 1000000 1000000 1000000 1000000 4000000 6000000 122035 138835 154766 275782 691418 250000 250000 250000 250000 1000000 1500000 114035 119335 108173 163134 504677 false false false false false false false false false false false II-A A Virginia Mason Institute, EIN 26-3763656, 1100 Ninth Avenue, Seattle, WA 98101. Non-electing member. 0 Lobbying Expenditures, 0 Excess Lobbying Expenditures. II-A A continued Virginia Mason Medical Center, EIN 91-0565539, 1100 Ninth Avenue, Seattle, WA 98101. Electing member. Grassroots Lobbying Expenditures 121,040 Direct Lobbying Expenditures 52,648. 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, 2016. II-A A continued Virginia Mason Health System, EIN 91-1351110, 1100 Ninth Avenue, Seattle, WA 98101. Non-electing member. 0 Lobbying Expenditures. Excess Lobbying Expenditures 0 II-A A continued Benaroya Research Institute at Virginia Mason, EIN 91-0653422, 1201 Ninth Avenue, Seattle, WA 98101. Non-electing member. 0 Lobbying Expenditures. Excess Lobbying Expenditures 0. II-A A continued Yakima Valley Memorial Hospital Association, EIN 91-0567263, 2811 Tieton Drive, Yakima, WA 98902. Non-electing member. Grassroots Lobbying Expenditures 42,094 Direct Lobbying Expenditures 60,000. Excess Lobbying Expenditures 0. false 920562 225186 695376 344970 107326 237644 933020 Financial derivatives and other financial products Closely-held equity interests Federal income taxes X 10462500 10462500 62109 62109 10524609 5875248 5875248 1225375 1225375 7100623 X 2 U.S. GAAP requires management to evaluate tax positions taken by the Institute and recognize a tax liability or asset if the Institute has taken an uncertain position that more likely than not would not be sustained upon examination by the Internal Revenue Service. Management has analyzed tax positions taken by the Institute and has concluded that as of December 31, 2016, there are no uncertain positions taken or expected to be taken that would require recognition of a liability or asset or disclosure in the consolidated financial statements. The Institute is subject to routine audits by taxing jurisdictions however, there are currently no audits for any tax periods in progress. The Institutes management believes it is no longer subject to income tax examinations for years prior to 2013. XI 4b Additional revenues included on Virginia Mason Medical Centers books not reclassified to Virginia Mason Institutes books of 62,109 XII 4b Additional expenses included on Virginia Mason Medical Centers books not reclassified to Virginia Mason Institutes books of 1,225,375. Europe Program services Education 441630 East Asia and the Pacific Program services Education 6755 448385 448385 false false false false false false Part I Line 3 Expenditures were actual expenses incurred for services provided outside of the United States based on individual expense reports and departmental expense tracking. false true false false false false false false false Gary S Kaplan MD Director, Chairman 1066494 441298 10055147 111125 43184 11717248 8352547 Suzanne Anderson Secretary/Treasurer 572548 179514 20580 92096 31996 896734 Sarah Patterson Vice Chairman 382210 181134 18992 102728 30580 715644 Diane Miller Executive Director 284509 71432 22686 14846 10147 403620 Henry Otero MD Faculty Instructor 277143 609 293 15637 105 293787 Celeste Derheimer Transformation Sensei 149237 973 11437 17821 179468 Megan McIntyre Faculty Instructor 134798 15945 12577 13758 177078 Gordon Sansaver Operations Director 146779 17191 11622 13699 189291 Kristen Turner Transformation Director 131556 17433 4001 16889 169879 Craig Goodrich Senior Vice President, CFO 322785 84994 3960 42250 21850 475839 Part I Line 3 The compensation for the Executive Director is paid by Virginia Mason Medical Center, a related organization. The Executive Directors compensation is approved by Virginia Mason Health System Board of Directors Compensation and Benefits Committee. The Committee receives support and advice including appropriate market comparability data from an independent consultant with expertise in the health care industry and access to relevant market data. See Schedule O for further disclosure. Part I Line 4b The Medical Center has a Supplemental Executive Retirement Plan SERP. The SERP is a 457f nonqualified deferred compensation plan pursuant to which plan benefits are subject to a substantial risk of forfeiture. The plan was approved by the Boards Compensation and Benefits Committee, a committee composed of independent board members to whom the Board delegates the authority to approve compensation and benefits for the Medical Centers most senior executives. The Committee receives advice from an independent compensation consultant to ensure that compensation and benefits, including the SERP, are market competitive and reasonable. Supplemental Executive Retirement Plans such as this are customary for senior executives in the health care industry. Part I Line 4b Gary Kaplan, M.D. received a payout of 10,031,813 from a Supplemental Executive Retirement Plan. Suzanne Anderson accrued benefits in a Supplemental Executive Retirement Plan of 77,250. Sarah Patterson accrued benefits in a Supplemental Executive Retirement Plan of 74,007. Gary Kaplan, M.D. accrued benefits of 71,778 in a Supplemental Executive Retirement Plan. Form 990, Part III, Line 1 To realize its goals, the Institute prepares, guides and inspires health leaders, providers and staff to believe that the perfect patient experience is possible and empowers them to dramatically improve their patients lives. This is accomplished by educating other organizations, through the sharing of knowledge and expereince, about the Virginia Mason Production System VMPS, wich is Virginia Mason Medical Centers management methodology that focuses on delivering the highest quality products through the elimination of waste and defects. The Institutes educational activities are delivered by a team of experienced physicians, nurses and other health care leaders rigorously trained in the Virginia Mason Production System. These activities benefit patients and the community when health care providers use their new knowledge to eliminate unncecessary waste from processes, improve health care quallity and reduce the cost of health care delivery to patients locally, nationally and internationally. Form 990, Part VI, Section A, Line 3 Virginia Mason Medical Center VMMC, a Washington nonprofit corporation qualified as tax exempt under Section 501a of the Internal Revenue Code as an organization described in Section 501c3, is the sole member of Virginia Mason Institute VMI. VMI contracts with VMMC pursuant to the terms of a Management Services Agreement for the provision of certain management services including leased personnel and operations support services. VMMC is the sole employer of all leased personnel and retains full control over the terms and conditions of employment. The VMI Executive Director is employed by VMMC as Executive Director and reports to the Chairman and Chief Executive Officer of Virginia Mason Medical Center. The VMI Executive Director is responsible for the overall operations of VMI. Form 990, Part VI, Section A, Line 6,7 Virginia Mason Medical Center VMMC is the sole corporate member of Virginia Mason Institute. VMMC as the sole member has the following approval rights a election or appointment of the Directors and Officers of the Board of Directors b removal of Directors and Officers of the Board of Directors c approval of all long-range plans proposed by the Board of Directors d approval of the annual capital and operating budgets proposed by the Board of Directors e approval of the borrowing of funds where the amount is in excess of Five Hundred Thousand Dollars 500,000 f approval of the sale, lease, exchange, mortgage, pledge or disposal of all or substantially all of the property and assets g approval of all amendments to the Articles of Incorporation or Bylaws and h all other rights and powers as specified in the Washington Nonprofit Corporation Act. Form 990, Part VI, Section B, Line 11b The Audit and Compliance Committee ACC, a committee composed of independent community members of the VMMC Board of Directors is responsible for oversight of the annual VMI Form 990 preparation process including a selection, engagement, and performance of an independent tax preparer b review of the annual draft Form 990 tax return and c recommending the final Form 990 tax return for review to the VMI Board of Directors. At the ACC September meeting, management provides the ACC with an initial draft of the Form 990 and the tax preparer presents an overview of the Form 990 preparation process. In October, a revised draft of the Form 990 is provided to the ACC Chair for further review and comment. The final draft Form 990 is reviewed and approved by the ACC in November, followed by VMI Board review of the final Form 990 prior to filing. The final Form 990 tax return is provided to each member of the VMI Board of Directors via electronic delivery by posting on a secure website which allows online view of Board documents. Form 990, Part VI, Section B, Line 12c VMI has delegated to the Governance Committee of the VMMC Board accountability for oversight of the process for disclosure, evaluation and management of conflict of interest involving any member of the VMI Board, executive leadership or key employees Covered Person. Pursuant to the Conflict of Interest Policy, an annual conflict of interest questionnaire is distributed to all Covered Persons. In addition, a Covered Person has an on-going duty to disclose the existence of a conflict of interest at any time an actual or potential conflict arises. Each Covered Person is required upon appointment and annually thereafter to attest to a statement that affirms that such person has a received a copy of the Conflict of Interest Policy b has read and understands the Policy c has agreed to comply with the Policy and d understands that Virginia Mason is a charitable organization and that in order to maintain its federal tax exemption must engage primarily in activities that accomplish its tax-exempt purposes. Written disclosures are reviewed by the Governance Committee to determine if an actual or potential conflict of interest exists and if so, how it should be managed. The Covered Person is informed in writing regarding the determination the Conflict of Interest Management Plan. No Covered Person with an actual or potential conflict of interest shall engage in an activity on Virginia Mason Institutes behalf related to the disclosed actual or potential Conflict of Interest unless such activity is permitted by the Conflict of Interest Management Plan or until the Covered Person has undertaken all steps set forth in the Management Plan to manage, reduce or eliminate the conflict. All Covered Persons have a duty to disclose the existence of any actual or potential conflict of interest with respect to meeting agenda items. The Conflict of Interest Policy requires that copies of the Conflict of Interest Questionnaires completed annually by each Covered Person and by 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 resolutions of any actual or potential conflict of interest disclosed at such meeting. Form 990, Part VI, Section B, Line 15 The Health System Compensation and Benefits Board Committee CBC, a committee composed solely of independent directors none of whom have a conflict of interest, has been delegated responsibility for setting reasonable total compensation packages for each executive, including the VMI Executive Director, officers and key employees Executives consistent with Health Systems philosophy and principles. The Health System Board develops and approves annual goals and performance criteria which are used in determining merit increases and variable compensation opportunities for the Executives. The CBC assesses performance against these goals. The CBC selects and engages a qualified independent compensation consultant to review and analyze the total compensation and benefit packages to the Executives. The CBC as part of its analysis obtains from the compensation consultant appropriate comparability data including total compensation paid by similarly situated for profit and nonprofit organizations for positions that are functionally comparable to each of the Executives. With respect to those Executives below the level of Virginia Mason Medical Center Chair/Chief Executive Officer, the CBC requests that the Chair/Chief Executive Officer work with the compensation consultants to formulate a compensation recommendation for each such Executive, consistent with the Health Systems compensation philosophy and principles. The CBC will consider the significant terms of the agreement with each Executive including the total compensation to be paid and the employees duties and responsibilities. Consistent with the Health Systems compensation philosophy and principles, the CBC approves total compensation packages for each of the Executives based on information presented to the CBC, reasonableness and the best interest of VMI. The CBCs decisions regarding compensation for each Executive are documented in written resolutions and minutes of the CBC. The CBC reports its action to the Board which reports are reflected in the Boards minutes. The Executives that were reviewed in 2016 included the VMI Executive Director, all officers and all key employees. Form 990, Part VI, Section C, Line 19 The organizations Articles, Bylaws, Conflict of Interest Policy, and Financial Statements are made available upon request. Virginia Mason Medical Center 1100 Ninth Avenue Seattle WA 98101 910565539 Health Care WA 501c3 3-Hospital VMHS false Virginia Mason Health System 1100 Ninth Avenue Seattle WA 98101 911351110 Fundraising WA 501c3 7-Support General N/A true Benaroya Research Institute at Virginia Mason 1201 Ninth Avenue Seattle WA 98101 910653422 Research WA 501c3 4-Research VMHS false Yakima Valley Memorial Hospital Association 2811 Tieton Drive Yakima WA 98902 910567263 Health Care WA 501c3 3-Hospital VMHS false false false false false false false false false false false false false false true true false false false false Virginia Mason Institute 1100 Ninth Avenue Seattle WA 98101 263763656 0 0 0 7100623 7100623 4720 1180 0 0 0 Virginia Mason Medical Center 1100 Ninth Avenue Seattle WA 98101 910565539 X 121040 52648 173688 984139233 984312921 654371 163593 0 0 0 Virginia Mason Health System 1100 Ninth Avenue Seattle WA 98101 911351110 0 0 0 21623749 21623749 14375 3594 0 0 0 Benaroya Research Institute at Virginia Mason 1201 Ninth Avenue Seattle WA 98101 910653422 0 0 0 74957334 74957334 49832 12458 0 0 0 Yakima Valley Memorial Hospital Association 2811 Tieton Drive Yakima WA 98902 910567263 42094 60000 102094 416114779 416216873 276701 69175 0 0 0