2017-11-10T04:10:01-00:00 2016-12-31 KPMG LLP 1918 8th Avenue Suite 2900 Seattle WA 98101 990 2016-01-01 910565539 Virginia Mason Medical Center VIRG 2062236600 1100 Ninth Avenue Seattle WA 98101 Gary Kaplan MD Chairman and CEO 2017-11-10 true Jayson Miller 2069134000 204.147.223.1 2017-11-11 06:33:34 PS P 3583005D7428F592DDBE4235A0F9C55007128F9F 3583005D7428F592DDBE4235A0F9C55007128F9F 2016 2017-02-10 21:41:12Z Gary Kaplan MD 1100 Ninth Avenue Seattle WA 98101 1195104067 false X www.virginiamason.org X 1934 WA Virginia Mason 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. 16 14 6136 457 27735225 13417738 6915333 6696602 1022264133 940092603 32186123 35098808 8064268 8525879 1069429857 990413892 7313046 8501417 0 560249573 541442911 0 0 457549925 434368593 1025112544 984312921 44317313 6100971 1141667609 1127061112 696392315 673959782 445275294 453101330 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. false false 818120332 939711577 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 2016, the Medical Center recorded 10,874 hospital inpatient admissions, 22,194 emergency room visits and 861,294 clinic visits. The Medical Center provided charity care and unreimbursed Medicaid services to a total of 5,979 patients. Continued on Schedule O. 24459687 4000000 241819 Education and Research. The Medical Center is an independent academic medical center with a graduate medical education program that trains over 120 residents and fellows in nine accredited programs in anesthesiology, internal medicine, general surgery, diagnostic radiology, preliminary surgery, transitional year, urology, Pain Management and Female Pelvic Medicine/Reconstructive Surgery. The Medical Center is also affiliated with the University of Washington for training of subspecialties in the areas of anesthesiology, orthopedics, obstetrics, gynecology and urology. The Medical Center also provides training in clinical nursing education, allied health fields, and continuing medical education. In addition, the Medical Center conducts medical research through its affiliate Benaroya Research Institute at Virginia Mason, a scientific research institute qualified under Section 501c3 of the Internal Revenue code. Continued on Schedule O. 274216 139207 Community Health Education and Services. The Medical Center contributes to 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 2016, the Medical Center provided 1,000 toward support of the Buse Diabetes Teaching Center. Continued on Schedule O. 4501417 4501417 847355652 true true false true false false false false false true true false false false true true false true false false true false false false false false true true true false true true false false false false false false false true true true false false false false true true false false false false true 607 0 true 6136 true true true false false false false false false false false false X 16 14 true false true false true true true true true false true true true true true true true true true true false GA OR X MaryAnne Olmstead 2066257371 1100 Olive Way Suite 605 Seattle WA 98101 Joshua Jay Green III Director 002.00 002.00 X 0 0 0 Tod Hamachek Director, Chair-elect 002.00 002.00 X X 0 0 0 Robert Bob Lemon Director, Treasurer 002.00 004.00 X X 0 0 0 Alfred Al E Lopus Director 002.00 002.00 X 0 0 0 Dorothy H Mann PhD Director, Secretary 002.00 002.00 X X 0 0 0 James Jamie Orlikoff Director, Vice Chair 002.00 004.00 X X 0 0 0 Jane Blodgett Director 002.00 002.00 X 0 0 0 Lewis Lonnie Edelheit PhD Director 002.00 002.00 X 0 0 0 James Jim Young Director, Chair 002.00 004.00 X X 0 0 0 Julie Morath RN Director 002.00 002.00 X 0 0 0 Kristi Pangrazio Director 002.00 003.00 X 0 0 0 Carolyn Corvi Director 002.00 004.00 X 0 0 0 Mary McWilliams Director 002.00 002.00 X 0 0 0 Michelle Griffin Director 002.00 002.00 X 0 0 0 Gregg Meyer MD Director 002.00 002.00 X 0 0 0 John Oppenheimer Director 002.00 002.00 X 0 0 0 Craig Goodrich Senior Vice President, CFO 050.00 X X 411739 0 64100 Gary Kaplan MD Chairman, CEO 050.00 005.00 X 11562939 0 154309 Suzanne Anderson President 050.00 004.00 X 772642 0 124092 Katerie Chapman Senior Vice President, Patient Care Services 050.00 X 449043 0 43010 Lucy Glenn MD Chief of Radiology 050.00 X 744640 0 34234 Michael Glenn MD Chief Medical Officer 050.00 X 888502 0 183929 Fred Govier MD Chief of Surgery 050.00 X 833090 0 47558 Joyce Lammert MD Medical Director, Hospital 050.00 001.00 X 829016 0 98004 William Poppy Senior Vice President, CTO 050.00 X 522796 0 53787 Steve Rupp MD Medical Director, Perioperative Services and Anesthesia 050.00 X 484194 0 36298 Donna Smith MD Medical Director, Clinic 050.00 X 587207 0 118937 Shelly Powell Vice President, Patient Care Services 050.00 X 293138 0 36882 Michael Gluck MD Chief of Medicine 050.00 X 958739 0 100186 Denise Dubuque Vice President, Patient Care Services 050.00 X 263209 0 34150 Cindy Rockfield Vice President, Patient Care Services 050.00 X 225859 0 28800 Santokh Gill Vice President, Patient Care Services 050.00 X 226820 0 45020 Ingrid Gerbino MD Chief, Primary Care 050.00 X 337759 0 44849 Christopher L Fellows MD Physician 050.00 X 1315842 0 49647 Richard A Kozarek MD Physician 050.00 X 1003315 0 87087 Ravi Kirshnan MD Physician 050.00 X 954849 0 43031 Edwin Rhim MD Physician 050.00 X 930641 0 43195 Rajiv Sethi MD Physician 050.00 X 1183097 0 27396 Sarah Patterson Executive Sensei, Former Key Employee 050.00 004.00 X 582336 0 133308 Charleen Tachibana RN Senior Vice President, Quality and Safety, Former Key Employee 050.00 X 545357 0 88163 Catherine Potts MD Physician, Former Key Employee 050.00 X 375829 0 39773 27282598 1759745 1266 true true false Crothall Healthcare Inc 955 Chesterbrook Blvd Suite 300 Wayne PA 19087 Staffing Services 13473410 AMN Healthcare Inc PO Box 281939 Atlanta GA 30384 Staffing Services 3673324 Turner Construction Company 830 4th Ave S Seattle WA 98134 Construction Services 3040880 Vera Whole Health Inc 605 Fifth Ave S Suite 150 Seattle WA 98104 Healthcare Services 2775634 First Choice Health PO Box 94041 MS 310170 Seattle WA 98124 Third Party Administrator Services 2773975 47 6696602 6696602 Net Patient revenues 561499 584510985 584510985 Retail Services 561499 13014960 13014960 Pharmacy 561499 18898400 18898400 Medicare/Medicaid Payments 621300 323668258 323668258 940092603 21354821 14026697 7328124 192831 192831 1473678 2081444 -607766 -607766 -541479 -66287 215080696 201529540 13551156 13551156 13551156 1966206 1079191 887015 887015 Cafeteria 722100 3493784 3493784 Parking 721110 4423204 348032 4075172 Medical Records 561499 315140 315140 14502 14502 8246630 990413892 927077643 27735225 28904422 8501417 8501417 0 0 0 22955480 8491864 14463616 0 443960074 386239626 57720448 24962148 21716752 3245396 21119098 18373347 2745751 28446111 24747755 3698356 1645471 1431539 213932 1931723 1931723 516499 516499 173688 173688 0 50945082 44321574 6623508 5730832 4985751 745081 203294251 176863416 26430835 15080664 13119986 1960678 0 27480637 23907805 3572832 2698383 2347559 350824 0 477480 415401 62079 24551702 21359669 3192033 0 43193449 37578866 5614583 11680476 10161866 1518610 Taxes 27894490 27894490 Medical Purchased Services 626463 545015 81448 Dues and subscriptions 2594681 2257340 337341 Bad Debt Expense 330800 330800 13521822 11763814 1758008 984312921 847355652 136957269 0 36693580 29859041 53924422 20372506 108761492 110928926 17286237 17329093 4565121 6757348 1080404977 514243520 583332325 566161457 286346658 325532983 50757774 50119758 1141667609 1127061112 125147574 110669791 69848 89303 310105008 309091104 136511339 136534519 124558546 117575065 696392315 673959782 X 426428035 431922000 14000186 16152666 4847073 5026664 445275294 453101330 1141667609 1127061112 X 6100971 -2010789 3735854 X false true X true true true X 0.00000 0.00000 0.00000 RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED X 121040 163134 52648 112648 173688 275782 984139233 1503935718 984312921 1504211500 1000000 1000000 250000 250000 1000000 1000000 1000000 1000000 4000000 6000000 122035 138835 154766 275782 691418 250000 250000 250000 250000 1000000 1500000 114035 119335 108173 163134 504677 II-A A 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 the Medical Center made the election under Section 501h. The election was not revoked before the start of the tax year ending December 31, 2016. The Medical Center pays membership dues to Washington State Hospital Association, a portion of which was used for legislative and lobbying activities. The Medical Center also pays membership dues to other professional health care organizations, a portion of which may be used for legislative and lobbying activities. II-A A continued Virginia Mason Institute, EIN 26-3763656, 1100 Ninth Avenue, Seattle, WA 98101. Non-electing member. 0 Lobbying Expenditures, 0 Excess Lobbying Expenditures. 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. 42,094 Grassroots Expenditures 60,000 Direct Lobbying Expenditures. Excess Lobbying Expenditures 0. false 13913976 230872 1031493 552931 14623410 14366911 541000 -427461 566474 13913976 14515607 61150 350255 560101 14366911 13453135 1797810 735338 14515607 12043176 100706 1800839 491586 13453135 0.56000 0.31000 0.13000 true false 40817679 40817679 610167962 193750806 416417156 21978565 13906326 8072239 395113216 305660032 89453184 12327555 926356 11401199 566161457 Financial derivatives and other financial products Closely-held equity interests Federal income taxes Due to affiliates 3659751 Third Party Payor 12409571 Professional Liability 19833500 Accrued Retirement Expenses 77265762 Asbestos Abatement 452602 Deferred Rent Credits 3953879 117575065 X 1001388452 -2010789 14260463 12249674 989138778 1275114 1275114 990413892 990138420 7100613 7100613 983037807 1275114 1275114 984312921 V 4 Support health care mission of the Medical Center and research mission of Benaroya Research Institute at Virginia Mason. X 2 U.S. GAAP require management to evaluate tax positions taken by the Medical Center and recognize a tax liability or asset if the Medical Center 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 Medical Center 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 financial statements. The Medical Center is subject to routine audits by taxing jurisdictions however, there are currently no audits for any tax periods in progress. The Medical Centers management believes it is no longer subject to income tax examinations for years prior to 2013. XI 2d Donated Capital 1,400 Additional Pension Adjustment 3,734,454 Virginia Mason Institute Revenues 10,524,609 XI 4b Rental expenses 2,081,444 Financial reclasses 18,815 Cost of Goods Sold 1,079,191 Non-operating expenses 6,453,208 Rebate transfers 507,285 Donation Transfers 2,543,559 XII 2d Virginia Mason Institute Expenses 7,100,613 XII 4b Rental expenses 2,081,444 Financial reclasses 18,815 Cost of Goods Sold 1,079,191 Non-operating expenses 6,453,208 Rebate transfers 507,285 Donation Transfers 2,543,559 East Asia and the Pacific Program Services Education 1902 Europe Including Iceland and Greenland Program Services Education 48160 North America Program Services Education 23070 Central America and the Caribbean Program Services Education 6866 South America Program Services Education 6766 South Asia Program Services Education 1766 88530 88530 false false false false false false Part I Line 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 0000000300.000000000000 false true true true false true true 5979 6903747 6903747 0.00700 11548 65191451 41058588 24132863 0.02450 17527 72095198 41058588 31036610 0.03150 2 352 599779 139207 460572 0.00050 16 1190 11678166 7201699 4476467 0.00450 4710196 4710196 0.00480 18 1542 16988141 7340906 9647235 0.00980 18 19069 89083339 48399494 40683845 0.04130 true 4330591 176435945 209976979 -33541034 X true true 1 1 Virginia Mason Medical Center 1100 Ninth Avenue Seattle WA 98101 virginiamason.org HAC.FS.00000010 X X X X A A 1 false false true X X X X X X X X X 16 true true false true X virginiamason.org X true 16 true virginiamason.org false true X 0000000300.000000000000 X X true true X X X true X virginiamason.org/FinancialAssistance X Virginiamason.org/FinancialAssistance X virginiamason.org/FinancialAssistance X X X X X X true X false X X true X false false Group Virginia Mason Medical Center Line Part V, Section B, Line 5 Through Public Health - Seattle King County, the Medical Center conducted key informant interviews with community coalitions and organizations, education and government agencies about assets and resources that help their communities thrive, as well as concerns and health needs within their communities full list of organizations in CHNA summary. Group Virginia Mason Medical Center Line Part V, Section B, Line 6a The Medical Center worked with the following other hospital facilities in working on the current CHNA 1 EvergreenHealth 2 CHI Franciscan Health 3 GroupHealth 4 MultiCare 5 Overlake Medical Center 7 Seattle Cancer Care Alliance 8 Seattle Childrens 9 Snoqualmie Valley Hospital District 10 Swedish and 11 University of Washington Medicine. Group Virginia Mason Medical Center Line Part V, Section B, Line 11 Access to dental care was identified as a health need, but the Medical Center lacks the personnel to address this issue and it is being addressed by other organizations, such as NeighborCare. 8 Virginia Mason Federal Way 33501 First Way S Federal Way WA 98003 Outpatient Medical Center Virginia Mason Lynnwood 19116 33rd Ave W Lynnwood WA 98036 Outpatient Medical Center Virginia Mason Issaquah 100 NE Gilman Blvd Issaquah WA 98027 Outpatient Medical Center Virginia Mason Kirkland 11800 NE 128th St Suite 300 Kirkland WA 98034 Outpatient Medical Center Virginia Mason Bellevue 222 112th Ave NE Bellevue WA 98004 Outpatient Medical Center Virginia Mason University Village 2671 NE 46th St Seattle WA 98105 Outpatient Medical Center Virginia Mason Bainbridge Island 380 Winslow Way E Bainbridge Island WA 98110 Outpatient Medical Center Bailey Boushay House 2720 East Madison Seattle WA 98112 Skilled Nursing Facility Part I Line 3c Full or partial discounts may be provided to patients who are not otherwise eligible for Charity Care, i.e., with gross family incomes above three hundred percent 300 of the federal poverty guidelines adjusted for family size. Such discounts may be provided to patients with catastrophic costs or conditions when circumstances as determined by the Medical Center indicate that full payment may cause extraordinary financial hardship to the patient or the patients family. The Medical Center shall determine, on a case by case basis, whether a patient qualifies as Medically Indigent pursuant to its policy and shall, through Patient Financial Services, determine the amount of the discount, if any. Determinations shall be made expeditiously after submission of financial information by the patient, but shall not be subject to any appeal rights. Part I Line 7 The Medical Center used the direct expenses and revenues of the hospital to calculate the cost-to-charges ratio for the amounts included in the table reflected in Part I. The cost-to-charge ratio used was derived using Worksheet 2, Ratio of Patient Care Cost-to-Charge ratio per the instructions. Part III Line 2 The Medical Center calculates the bad debt expense based on the actual write-offs for bad debt expense incurred during the year. The bad debt write-offs as a percentage of total write-offs is allocated to the total deductions from revenue recorded for the year. Part III Line 4 The Medical Center provides an allowance for potential uncollectible patient accounts receivable whereby such receivables are reduced to their estimated net realizable value. For accounts receivable associated with patients who have insurance coverage, the Medical Center analyzes contractually due amounts based on historical collection experience and provides an allowance for uncollectible accounts based on aging and other relevant factors, if necessary. For accounts receivable associated with self pay patients, the Medical Center records an allowance for uncollectible accounts in the period of service based on aging, historical collection experience, and other relevant factors. There are various factors that can impact the collectiion trends, such as changes in the economy, which in turn have an impact on unemployment rates and the number of uninsured and underinsured patients, the increased burden of co-payments to be made by patients with insurance, and business practices related to collection efforts. These factors continuously change and can have an impact on collection trends and the estimation process. The difference between the standard or contractual reates and the amounts actually collected after all reasonable collection efforts have been exhausted is charged off against the allowance for uncollectible accounts. The following information summarizes the changes in allowance for uncollectible accounts during the year ended December 31, 2015 Allowance for uncollectible accounts at beginning of the year 7,540,000 Write-offs of accounts deemed uncollectible 11,650,000 Provision for bad debt 10,185,000 Allownce for uncollectible accounts at the end of the year 6,075,000. For the year ended December 31, 2016 Allowance for uncollectible accounts at the beginning of the year 6,075,000 Write-offs of accounts deemed uncollectible 9,268,000 Provision for bad debt 9,566,000 Allowance for uncollectible accounts at end of the year 6,373,000. Part III Line 8 The Medical Centers calculation of the Medicare shortfall related to Hospital-based inpatient and outpatient shortfall is 33,541,034. The Medical Center employs over 400 physicians who provide professional services to patients which are not covered in this number. In addition, the Medical Center operates regional medical centers and ambulatory surgery centers which are not reported in the Medicare cost report. For all of its patient services, the Medical Center utilizes a comprehensive electronic cost reporting package which uses the directly assigned general ledger costs and allocates all overhead costs to operating costs using a model inspired by the Medicare cost report. This model with the Medical Centers calculation shows a Medicare shortfall of 28 million which is not included in the traditional cost report primarily due to shortfall of Medicare professional fees versus costs. Part III Line 9b The Medical Centers mission is to improve the health and well-being of the patients it serves. To ensure the Medical Center continues to have the resources to fulfill its mission, it must balance the financial needs of its patients with those of the Medical Center. In all instances, the Medical Center will treat our patients with dignity, compassion and respect. The Medical Center expects payment in full upon receipt of the patients first billing. Patients will receive monthly Medical Center statements upon determination of the patients private responsibility. A Virginia Mason Clinic statement will be sent representing the professional component of services provided. If services were provided or processed at the downtown campus except the Health Resources Building, which is not licensed as part of the hospital, a Hospital statement will also be sent representing the facility/technical component of services. As outstanding balances age, statement messages dunning, collection letters and/or telephone calls may be used at appropriate intervals as determined by the Medical Center. Delinquent accounts may be forwarded to a third party where a series of collection contacts letters and phone calls will be initiated. Delinquent self pay accounts that have not been paid in full or established an approved installment payment plan may be referred to a collection agency. This occurs approximately 130 days from determination of patient responsibility. The Patient Financial Services management team has responsibility for determining under what circumstances a balance may be referred for collection agency resolution. The Medical Center recognizes there are occasions when a patient is not financially able to pay their medical bill in full. Those patients who indicate they are experiencing financial hardship will be offered the opportunity to apply for charity care assistance. Collection activity will be suspended pending eligibility determination. If the patients income is greater than 300 of the current years federal poverty guideline FPG and the patient is determined not be be medically indigent, charity is denied and alternative payment arrangements are discussed. If the patients income is less than 300 of the current years FPG, the patient will complete the charity application and send supporting documentation. If charity determination is approved, the charity care discount is applied to the outstanding account balance based on the FPG determination and a confirmatory letter is sent to the patient. If charity is denied, the Medical Center will send a denial letter to the patient with information on the patients appeal rights. 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 Virginia Mason conducts a Community Health Needs Assessment CHNA every three years. The CHNA can be found at VirginiaMason.org/connectingwithourcommunities. Our CHNA drives our community work and serves as a guideline to help us achieve three basic goals 1 Improve the community health status and overall quality of life 2 Reduce health disparities within the community and 3 Increase access to preventive services. The latest CHNA was published in 2016 in partnership with Public Health - Seattle and King County. The Medical Center Mason 2016-2018 CHNA is an updated and expanded version of the collaborative CHNA. It includes secondary data from a variety of local, state, and federal agencies, including Public Health - Seattle and King County. It also includes key informant interviews with individuals representing public health, city government, the healthcare safety net, cultural communities, schools, and health advocacy. A 2016-2018 CHNA Implementation Strategy was also developed and serves as a living document to guide our community benefit programs. Our community benefit program focuses our resources on the needs of the community and the strengths of the Medical Center. Some examples A Subsidized Health Services Every community needs certain health care services that typically cost more to deliver than the provider of the services receives. These subsidized health services are part of the Medical Centers mission because they are needed in the community and otherwise would not be available to meet patient needs. They include 1 Emergency Department open to all 2 Bailey-Boushay House BBH, an inpatient and outpatient center for people living with HIV/AIDS and other complex diseases 3 Partnership with Public Health - Seattle and King County to provide the Edward Thomas House respite program for homeless adults in King County 4 Partnership with Project Access Northwest PANW to provide specialty care services to community clinic patients and premium assistance to low income patients. B Uncompensated Care As a nonprofit organization, the Medical Center is committed to serving patients who are uninsured, underinsured or otherwise unable to pay for their medical care. C Research. The Medical Center conducts medical research through its affiliate, Benaroya Research Institute at Virginia Mason BRI. Part VI Line 2 continued D Education 1 The Medical Center is a premier teaching hospital that offers postgraduate education programs through its Graduate Medical Education Department GME. All GME postgraduate training programs are accredited by the Accreditation Council on Graduate Medical Education ADGME. 2 Virginia Masons GME program partners with Public Health - Seattle King County Health Services Division, providing 12 residents for the Eastgate Public Health Center. E Community Partnerships Virginia Mason is a member of the King County Community Health Needs Assessment Collaborative, a partnership that includes all King County hospitals, Public Health - Seattle King County, and the Washington State Hospital Association. In addition to collaborating on the future CHNA, this partnership has formed Hospitals for a Healthier Community HHC and is researching and planning collaborative community benefit activities that will comprehensively address community health issues. F Community Health Improvement Services 1 Community health education, such as Nutrition and Fitness for Life pediatric program and classes in the Buse Diabetes Teaching Center. 2 Nutrition and fitness education at Marys Place, a day shelter for homeless women and children 3 Partnership with Washington Ceasefire to provide educational information to parents regarding firearm safety in homes where their children visit and play 4 Membership and partnership in regional Firearm Tragedy Prevention Network 5 Healthy cooking demonstrations at Plymouth Housing Group 6 Health fair sponsorships in the community 7 Free flu shots and health screenings for uninsured/underinsured and the homeless 8 Partnership with WithinReach to provide health care resources to families 9 Partnership with Washington Green Schools to provide green/sustainable curriculums and training in public schools 10 Partnership with NeighborCare to provide funding for expanded housing and mental health care 11 United Way - Organizational support and participation in Day of Caring and the Community Resource Exchange 12 Providing supplies to Medical Teams International for local and global programs and 13 Bereavement support through our Separation and Loss Services. Part VI Line 3 The Medical Center informs and educates patients and persons who may be billed for patient care about their eligibility for assistance under federal, state, or local government programs or under the Medical Centers charity care policy at various points beginning with scheduling and continuing through the patient billing process. At scheduling, if a patient indicates they are without insurance and unable to pay for the services, their account is flagged for a Patient Account Specialist to contact them to discuss assistance. At arrival for an appointment, the Medical Centers admissions lobby areas have signage regarding availability of charity care, a copy of the charity care policy and information regarding who to contact for assistance. During the arrival process, the Medical Centers admissions personnel will confirm ability to pay. If financial need or financial hardship is indicated, the Medical Center Financial Counselors will work with the patient to determine whether Medicaid, state program options, or charity care would be appropriate. The Medical Centers charity policy and financial assistance contact information are also included on patient bills. The Medical Centers Patient Guide to Fees and Billings includes information on charity availability and contact information to initiate an assessment. The brochure is available in all patient lobbies for the patient to pick up. The brochure is also sent out by Patient Account Services staff based on a patients expressed concerns either via phone or letter. The Medical Centers website also includes information about charity availability and the contact number to initiate an assessment. Part VI Line 4 In 2015, Virginia Mason served over 221,000 individuals in its hospital and medical centers. Virginia Masons service area encompasses the communities where its facilities are located and where 75 percent of its patients reside King County, the southwest region of Snohomish County, and Bainbridge Island in Kitsap County. Residences of Virginia Mason patients 2015 data are 1 Seattle 66,944 2 Seattle Suburbs King County outside of Seattle 78,963 3 Snohomish County 19,605 4 Bainbridge Island 9,017 5 Service area total 174,529 6 Other Washington State 40,298 7 Rest of the Northwest 4,039 8 Rest of United States 2,548 8 Other 256 for a total of 221,670. Part VI Line 4 continued The service area King County population is 1,957,001. The age and racial/ethnic profile of the total population of the three counties was as follows King County 1 Total population 1,947,001 2 Under 18 years 417,529 3 Age 18-64 1,729,710 4 65 years or older 227,291 5 White 1,404,136 6 Hispanic 181,065 7 Black 127,210 8 Asian 294,336 9 American Indian/Alaska Native 20,379 10 Native Hawaiian/Pacific Island 15,838 11 Two or more races 95,101. Just under a quarter of residents are under age 18, and over 10 percent are 65 or older. The highest proportion of the population that is nonwhite is in King County. According to the United States Census Bureau, the median household income for King County 2009-2013 was 71,811 with 11.5 living below the poverty level. Within King county, median income was lowest for blacks and American Indians/Alaska natives and in urban south King County. In King County, poverty rates are highest in White Center/Boulevard Park, several central and Southeast Seattle neighborhoods and Auburn. In March 2014, the unemployment rate in King County was 4.9 percent, down from 5.0 percent in March 2013. Part VI Line 5 Virginia Masons community benefit program is designed to improve our communitys health status and overall quality of life, reduce health disparities within the community and increase access to preventive services. To accomplish this, our organization contributes time, energy and money in the areas of improving health, providing free and subsidized care, health professionals education and research. Part VI Line 5 continued Uncompensated Care. As a non-profit organization, Virginia Mason is committed to serving patients who are uninsured, underinsured or otherwise unable to pay for their medical care. Under Virginia Masons charity care policy, free medically necessary care after all health insurance has been exhausted is provided to individuals making up to 300 percent of the federal proverty level in keeping with the Washington State Hospital Association voluntary guidelines on billing the uninsured. In 2016, Virginia Mason provided charity care to 5,979 patients at a cost of 6,903,746. In addition, Virginia Masons unreimbursed Medicaid was provided at a cost of 29,061,885. Part VI Line 5 continued Community Health Improvement Services. Improving health and quality of life extends beyond diagnosis and treatment. It also requires community health education and outreach services. Health improvement and outreach services provided by Virginia Mason include the following 1 community health education, such as classes in the Buse Diabetes Teaching Center 2 free health screenings at community health fairs 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 continued Health Professional Education. Virginia Mason strongly supports medical education to ensure our patients and the community benefit from advances in medical care. Virginia Mason is a premier teaching hospital that offers postgraduate education programs through its Graduate Medical Education Department GME. All GME postgraduate training programs are fully approved by the Accreditation Council on Graduate Medical Education ACGME. Virginia Mason trains more than 120 residents and fellows annually. VMs GME program is partnered with Public Health - Seattle and King County Health Services Division, providing 12 residents for the Eastgate Public Health Center, as well as providing residents at the Carolyn Downs Family Medical Center, Pike Market Medical Clinic and North Public Health Center. Virginia Masons collaboration with the Eastgate Public Health Center combines the Medical Centers commitment to teaching and community benefit through an innovative public-private program which allows residents to be more involved in the care of the underserved and uninsured. The Eastgate clinic is the largest of three county public health clinics in east King County and offers a variety of primary care services to adults and children. Approximately 50 percent of patients seen at the clinic do not have insurance or the means to pay, and approximately the same percentage do not speak English and require interpretive services. This resident clinic improves overall health in the community and gives back to our community in a meaningful way. Virginia Mason serves as an internship site for students in a variety of other health programs, such as nursing, pharmacy, respiratory therapy and laboratory technology. Part VI Line 5 continued Subsidized Health Services. Every community needs certain health care services that typically cost more to deliver than the provider of these services receives. These subsidized health services include Bailey-Boushay House BBH, a nursing residence and Adult Day Health center for people living with HIV/AIDS. Part VI Line 5 continued Research. Virginia Mason conducts medical research through its affiliate, Benaroya Research Institute at Virginia Mason BRI. BRI is a non-profit biomedical research institute that works to unlock the mysteries of the immune system. Its team of world-renowned scientists is focused on identifying causes and cures for devastating diseases including diabetes, arthritis, heart disease and cancer. In 2016, the Medical Center provided 4,000,000 to support research activities at BRI. Part VI Line 5 continued Environmental Improvements. Virginia Masons environmental stewardship initiative, EnviroMason, provides the framework for making unique energy and waste management decisions, such as setting policies on reliability and use, making efficiency improvements, supporting capital planning and infrastructure design, and encouraging employee participation and innovation. The goal of EnviroMason is to reduce waste, recycle and conserve resources of our community. In 2007, Virginia Mason became the first hospital in the Pacific Northwest to eliminate garbage cans and Styrofoam use and begin composting food waste. Since 2011, our energy conservation projects have saved over 4.5 million kilowatt hours per year. Our water conservation projects in the same period have saved more than 7 million gallons of water per year. Between 2011 and 2016, Virginia Mason diverted more than 5,451 tons of waste from the landfill. We accomplished this by expanding recycling across our facilities improving our electronics recycling providing composting to all lunch and break rooms implementing a construction debris recycling program recycling the fiber from our shredded office paper and reprocessing medical supplies that can be reused. Additionally, Virginia Mason was the first hospital in the region to implement an operating room OR recycling program. Part VI Line 5 continued EnviroMasons team approach extends from strong support from senior leadership to active engagement of our team members. Team engagement is facilitated by the Virginia Mason Production System VMPS, our Green Team and special sustainability events. One of the elements of the VMPS is our Everyday Lean Idea ELI system, which is a tool for every team member to test, implement, and share process improvement ideas. The Green Ideas category of the system enables team members to test sustainability ideas in their department, and to share them across the organization. Our Green Team is a cross-disciplinary group of more than 50 volunteers from across our organization. They meet monthly to share and work on environmental sustainability initiatives and issues. Their goal is to reduce the environmental impact of Virginia Masons operations by educating and empowering team members to make more sustainable choices. EnviroMason special events also help us engage our team members and Green Team with sustainability efforts. We sponsor events such as our farmers market, community supported agriculture CSA program, efficient light bulb giveaways, commuter information days, mercury thermometer exchanges, and a variety of Earth Day events. Virginia Mason signed on to EPAs Food Recovery Challenge and we donate our excess food to local charities, like the Millionair Club. As an organization dedicated to preserving health, Virginia Mason is reducing our carbon footprint in operations through energy conservation commute trip reduction landfill diversion activities, like recycling, composting, and food donation and buying local goods and services. Part VI Line 5 continued Medical Staff. Virginia Mason has 616 members on its active hospital staff, including Virginia Mason physicians, 55 Group Health physicians, 14 Pacific Medical Centers physicians, and other community providers. Part VI Line 5 continued Accountability to the Community. The Medical Center is accountable to the public through its Board, the voting members of which are community members who represent the diverse populations and needs of communities served by the Medical Center. The Medical Center is also accountable to the community through its sole voting member, the Health System whose Board is composed primarily of community members. In furtherance of its commitment to responsible governance practices, the Medical Centers Audit and Compliance Committee, composed entirely of community members of the organizations Board, is charged with overseeing the selection and discharge of the Medical Centers independent financial auditors and oversight of the Medical Centers compliance programs. In addition, the Medical Center has chartered a Governance Committee responsible for reviewing and evaluating the organizations corporate governance policies and guidelines, and providing oversight of procedures for disclosure and management of conflict of interest. The voting members of the Governance Committee are independent community members of the Medical Centers board. As a 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 regularly participates in extensive tours of various areas of the Medical Center facilities and becomes involved in forums for in-depth discussion of issues of importance to these organizations and the communities they serve. Bailey-Boushay House, a division of the Medical Center which provides day health and skilled nursing facility services to individuals living with HIV/AIDS and other complex diseases, also has an advisory board comprised primarily of representatives of the community who provide input and guidance on serving the community. Part VI Line 5 continued Use of Financial Surpluses. All financial surpluses from the operation of the Medical Center are used exclusively to further its charitable purposes. No individual receives any portion of the organizations respective surplus as a result of ownership or any other insider relationship. The Compensation and Benefits Committee of the Medical Center Board, which directs the performance review and approves the compensation and benefits of the Medical Centers senior leadership, is composed entirely of community members of the Board who have no financial ties to the Medical Center, either directly or through family or business relationships. Part VI, Line 7 WA true Virginia Mason Health System 1100 Ninth Avenue Seattle WA 98101 911351110 501c3 3407892 Operating Support Benaroya Research Institute at Virginia Mason 1201 Ninth Avenue Seattle WA 98101 910653422 501c3 4000000 Operating Support Yakima Valley Memorial Hospital Association 2811 Tieton Drive Yakima WA 98902 910567263 501c3 507512 Operating Support American Heart Association 710 Second Ave Ste 900 Seattle WA 98104 135613797 501c3 102500 General Support JDRF International 1215 Fourth Ave Ste 1100 Seattle WA 98161 231907729 501c3 90350 General Support Project Access Northwest 1111 Harvard Ave Seattle WA 98122 204377921 501c3 75000 General Support Northwest Healthcare Response Network 7100 Fort Dent Way Ste 210 Tukwila WA 98188 463002271 501c3 35000 General Support Kasey Kahne Foundation 130 Infield Court Mooresville NC 28117 251926392 501c3 30000 General Support Neighborcare Health 1537 Western Avenue Seattle WA 98101 910893287 501c3 30000 General Support National Multiple Sclerosis Society 192 Nickerson St Ste 100 Seattle WA 98109 910742424 501c3 17500 General Support Within Reach 155 NE 100th St Ste 500 Seattle WA 98125 911443685 501c3 16000 General Support Mary's Place 1830 9th Ave Seattle WA 98101 272087950 501c3 15000 General Support Nothwest Kidney Centers PO Box 3035 Seattle WA 98114 916057438 501c3 15000 General Support Pancreatic Cancer Action Network 1500 Rosecrans Ave Ste 200 Manhattan Beach CA 90266 330841281 501c3 15000 General Support Medic One Foundation 325 9th Ave MS 359747 Seattle WA 98104 916183158 501c3 14250 General Support Girls on the Run Puget Sound 1404 E Yesler Way Ste 201 Seattle WA 98122 841618574 501c3 12500 General Support Washington Poison Center 155 NE 100th St Ste 100 Seattle WA 98125 943214597 501c3 10000 General Support Crohn's & Colitis 9 Lake Bellevue Dr Suite 203 Bellevue WA 98005 136193105 501c3 9500 General Support Robert Vasen Foundation 2807 102nd Ave SE Bellevue WA 98004 208656415 501c3 8000 General Support United Way of King County 720 Second Ave Seattle WA 98104 910565555 501c3 8000 General Support EvergreenHealth Foundation 12040 NE 128th St MS 5 Kirkland WA 98034 911519430 501c3 6000 General Support Northwest Parkinson's Foundation 400 Mercer Street Ste 502 Seattle WA 98109 911923159 501c3 5050 General Support Rave Foundation 159 S Jackson St Ste 200 Seattle WA 98104 463932075 501c3 5000 General Support Seattle Center Foundation 305 Harrison St Ste 302 Seattle WA 98109 911003385 501c3 5000 General Support Seattle CityClub 240 Second Ave S Ste 208 Seattle WA 98104 911148262 501c3 5000 General Support YWCA OF Seattle-KC-Snohomish Cty 1118 Fifth Ave Seattle WA 98101 910482890 501c3 5000 General Support 26 Part I Line 2 The funds provided to Virginia Mason Health System, Benaroya Research Institute at Virginia Mason and Yakima Valley Memorial Hospital Association are for operational support or specific activities. Assistance provided to other non-profit organizations consisted of donations made to support specific events sponsored by the recipient organizations. X X true true X X X X X false true false false false false false false false Gary Kaplan MD Chairman, CEO 1066494 441298 10055147 111125 43184 11717248 8352547 Suzanne Anderson President 572548 179514 20580 92096 31996 896734 Katerie Chapman Senior Vice President, Patient Care Services 356920 85939 6184 14846 28164 492053 Lucy Glenn MD Chief of Radiology 571364 154088 19188 22612 11622 778874 Michael Glenn MD Chief Medical Officer 653256 216058 19188 171997 11932 1072431 Fred Govier MD Chief of Surgery 646280 167622 19188 27106 20452 880648 Joyce Lammert MD Medical Director, Hospital 453400 120892 254724 86449 11555 927020 126000 Sarah Patterson Executive Sensei, Former Key Employee 382210 181134 18992 102728 30580 715644 William Poppy Senior Vice President, CTO 359193 99535 64068 21302 32485 576583 Steve Rupp MD Medical Director, Perioperative Services and Anesthesia 378780 104226 1188 14846 21452 520492 Donna Smith MD Medical Director, Clinic 447528 120905 18774 91088 27849 706144 Charleen Tachibana RN Senior Vice President, Quality and Safety, Former Key Employee 414220 109177 21960 74696 13467 633520 Catherine Potts MD Physician, Former Key Employee 268515 88369 18945 25391 14382 415602 Shelly Powell Vice President, Patient Care Services 233674 58564 900 14846 22036 330020 Michael Gluck MD Chief of Medicine 738544 197509 22686 68384 31802 1058925 Denise Dubuque Vice President, Patient Care Services 218386 42243 2580 14846 19304 297359 Cindy Rockfield Vice President, Patient Care Services 195259 29700 900 13333 15467 254659 Christopher L Fellows MD Physician 1296385 269 19188 28735 20912 1365489 Richard A Kozarek MD Physician 933540 69775 66044 21043 1090402 50000 Ravi Kirshnan MD Physician 936669 18180 14846 28185 997880 Edwin Rhim MD Physician 930371 270 14846 28349 973836 Santokh Gill Vice President, Patient Care Services 206732 20088 14845 30175 271840 Rajiv Sethi MD Physician 957917 225000 180 27396 1210493 Ingrid Gerbino MD Chief, Primary Care 319283 62 18414 35843 9006 382608 Craig Goodrich Senior Vice President, CFO 322785 84994 3960 42250 21850 475839 Part I Line 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. Part I Line 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. 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 Virginia Mason Health System Compensation and Benefits Committee, a committee composed of independent board members, that has 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. Joyce Lammert, M.D. received a payout of 234,438 from a Supplemental Executive Retirement Plan. Richard Kozarek, M.D. received a payout of 47,089 from a Supplemental Executive Retirement Plan. Suzanne Anderson accrued benefits of 77,250 in a Supplemental Executive Retirement Plan. Gary Kaplan, M.D. accrued benefits of 71,778 in a Supplemental Executive Retirement Plan. Sarah Patterson accrued benefits of 74,007 in a Supplemental Executive Retirement Plan. Michael Glenn, M.D. accrued benefits of 95,256 in a Supplemental Executive Retirement Plan. Joyce Lammert, M.D. accrued benefits of 63,000 in a Supplemental Executive Retirement Plan. Donna Smith, M.D. accrued benefits of 67,200 in a Supplemental Executive Retirement Plan. Charleen Tachibana, RN accrued benefits of 59,850 in a Supplemental Executive Retirement Plan. Richard Kozarek, M.D. accrued benefits of 50,000 in a Supplemental Executive Retirement Plan. A Washington Health Care Facilities Authority 911108929 93978EH54 2007-12-03 316302277 Refund/Redeem, acquire, construct, remodel facility purchase equipment false false false A 8900000 324617730 25448022 23923082 86774645 6230082 182241899 2011 true true false true A false false true true false false false true A false false false true false false true Trinity Plus Funding 0000000017.000000000000 true false true A true Part I Line A Column C 93978EG30, 93978EH39, 93978EH47, 93978EH70, 93978EH62, 93978EG48, 93978EG55, 993978EG63 Part I Line A Column F The proceeds of the reoffered 1997B Bonds together with the proceeds of the Series 2007 bonds will be used for the purpose of providing part of the funds necessary to 1 refund, on an advanced and current basis, and to redeem the Authoritys revenue bonds, Series 1997A 2 reissue, refund, on a current basis and replace the Series 1997B Bonds as a variable rate obligation 3 reimburse the Medical Center for, or pay, the costs of acquiring, constructing, remodeling, renovating and equipping certain health care facilities 4 pay interest on the Series 2007 Bonds during construction 5 fund the initial deposits into respective debt service reserves for the Series 2007 bonds 6 pay the cost of credit enhancement, if any, and 7 pay issuance costs. The 1997A bonds were originally issued August 1, 1997. These bonds were issued to 1 refund on a current basis all of the Authoritys outstanding Revenue Bonds, Series 1987, issued in an original aggregate principle amount of 100,395,000 2 fund the initial deposit to the Reserve account for the Bonds 3 pay the premium for the Insurance Policy and 4 pay certain of other costs of issuing the Bonds. The 1997B bonds were originally issued August 1, 1997. The original bond proceeds were used to 1 finance or reimburse the Medical Center for the costs of constructing, remodeling and/or acquiring Health Care Facilities 2 fund the initial deposit to the Reserve Accounts for the Bonds 3 pay the premium for the Insurance Policy and 4 pay certain of the other costs of issuing the Bonds. Part II Line 3 Difference between Part I, column e and Part II, line 3 is investment earnings. Part II Line 7 Difference between Part II, Line 7 and Form 8038, line 24, is due to lower issuance costs than the estimated cost included in the proceeds. Part IV Line 2 The rebate computation was dated December 21, 2012. Joan Lange Sister of Robert Lemon, Director 50246 Employee false Columbia Hospitality Inc Entity more than 35 owned by John Oppenheimer, Director Provision of Services true CHI-VM LLC Entity more than 35 owned by John Oppenheimer, Director 2377091 Provision of Services false Part IV Line 1a Name of Interested Person Joan Lange Part IV Line 1b Relationship Sister of Robert Lemon, director Part IV Line 1c Amount of Transaction 50,246 Part IV Line 1d Description of Transaction Employee of Medical Center Part IV Line 1e Sharing of Revenues No Part IV Line 2a Name of Interested Person Columbia Hospitality, Inc. Part IV Line 2b Relationship Entity more than 35 owned by John Oppenheimer, director Part IV Line 2c Amount of Transaction 0 Part IV Line 2d Description of Transaction Provision of management and hospitality services to Medical Center Part IV Line 2e Sharing of Revenues Yes Part IV Line 3a Name of Interested Person CHI-VM, LLC Part IV Line 3b Relationship Entity more than 35 owned by John Oppenheimer, director Part IV Line 3c Amount of Transaction 2,377,091 Part IV Line 3d Description of Transaction Provision of management services to Medical Center Part IV Line 3e Sharing of Revenues No Form 990, Part III, Line 1 The Medical Center provides integrated health services through a teaching hospital licensed for 336 beds and a multi-specialty group practice of approximately 494 physicians, offering both primary and specialized care, through a regional network of neighborhood clinics and ambulatory surgery centers. 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 120 residents, fellows and medical students each year. In addition, the Medical Center sponsors training programs for pharmacy and a variety of other health services such as nursing, respiratory therapy, physical therapy, speech and language therapy and laboratory technology. Form 990, Part III, Line 4a The Medical Center is committed to subsidizing certain health services due to the demonstrated need for these services in the community. Since 1992, the Medical Center has addressed the treatment of HIV/AIDS by operating Bailey-Boushay House Bailey-Boushay, a 35-bed skilled nursing facility. The first facility in the nation built specifically for the care of people living with AIDS, Bailey-Boushay now also serves other individuals who need intensive nursing care, many of whom are Medicaid recipients. In addition to the care provided to its residential population, Bailey-Boushay provides day health services to 375 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. 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 Washington state law, or who have an emergency medical condition. The Medical Center is a participating hospital in the Washington State Medicaid Contracting Program. Charity Care is provided according to a patients gross family income at or below 300 of the Federal poverty guidelines adjusted for family size. Full charity care may be provided to patients with gross family incomes exceeding 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 6,903,746 during the year, along with 29,061,885 of Medicaid contractual allowances. Charity care does not include bad debts which is the amount the Medical Center is not paid by patients deemed able to pay their bills. Form 990, Part III, Line 4b The Medical Centers graduate medical education program maintains education affiliation agreements with community clinics under which the Medical Centers residents provide care to patients at clinics serving low-income and uninsured patients. The Medical Center has an affiliation with Eastgate Public Health Clinic operated by Seattle and King County Public Health to provide a resident clinic 4-days a week under the supervision of Medical Center physicians. This affiliation has expanded access to health care for King County residents and enhanced the educational opportunities of internal medicine residents. The Clinical Nursing Education CNE program offered 44 CNE events in 2016 to 889 attendees. Participants include nurses the primary audience - RNs and LPNs and advanced practice registered nurses CNS, CNL, ARNP, as well as patient care technicians, nursing students, nurse technicians, respiratory therapists, social workers, educators, dietitians, specialized technicians e.g. GI Techs, Donation Techs, Radiation-Oncology Techs, medical assistants, medical technologists, administrative assistants, chaplains, bereavement coordinators and physicians. The Medical Center also serves as an internship site for students in a variety of allied health programs such as nursing, pharmacy, respiratory therapy, physical therapy, occupational therapy, social work, sleep disorders, speech and language therapy, radiology and laboratory technology. Successful relationships have been built with vocational training programs for medical assistants as well. 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 and was last reaccredited in 2016, receiving Accreditation with Commendation. In 2016, the CME department sponsored 37 courses either full-, half-, or multi-day totaling 504.75 hours of instruction. These activities were attended by 1,178 participants, including 546 physicians. In 2013, CME was approved by the American Board of Medical Specialties Portfolio Program, permitting Virginia Mason to endorse and award AMA PRA Category 1 Credit TM for quality improvement projects for physician Maintenance of Certification MOC Part IV credit. In 2016, 6 physicians completed these projects. During 2016, 42 one-hour Grand Round presentations were presented at the Medical Center, with the on-site audience averaging 113 attendees weekly. The Grand Round series is also broadcast via videoconference to the organizations regional medical center locations and to 13 off-site health care systems throughout Alaska and Washington State. The CME department supports 23 additional Regularly Scheduled Series including 13 Cancer Care tumor boards, Clinical Cardiovascular, Imaging, Competencies and Incidents, Vascular Surgery, GI Radiology, GI Pathology, Pharmacy and Therapeutics, and Schwartz Rounds. During the year, 673 hours of instruction were offered through these 23 series. Cumulative participation hours tracked for these 23 series totaled 7,579, of which 6,134 were physician attendance hours. Approximately 12 of our investigators have faculty appointments at the University of Washington, including 7 at the professorship level. The Medical Center also maintains a medical library to support its education and research activities. Form 990, Part III, Line 4c The Medical Center provided support of Separation and Loss which provides services for adults and children ages 7-18 whose loved one has died as the result of a sudden, violent death by criminal act homicide, including terrorism, suicide or other types of violent death. Services available include therapy groups, short-term therapy, psychiatric consultation and medication management, community, workplace, family and school crisis response and professional training. In 2016, the Medical Center provided 134,000 toward support of Separation and Loss. Form 990, Part III, Line 4d The Medical Center provides funds and in-kind services to community organizations which are consistent with the Medical Centers charitable purpose. A list of community donations is included on Schedule I. The following is a description of selected recipients and is not all-inclusive. 1 The Medical Center supported Go Red for Women Heart Awareness and the Annual HealthWalk which benefited the American Heart Association AHA in 2016. AHAs mission is to reduce coronary heart disease, stroke and risk by 25. 2 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. 3 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. 4 The mission of United Way is to improve peoples lives by mobilizing the caring power of communities. The Medical Center provides support to the United Ways fundraising effort through staff donations and through a Virginia Mason contribution in 2016. Form 990, Part VI, Section A, Line 1a The governing body delegates to an Executive Committee comprised of the Chairman, Vice Chairman, Secretary and Treasurer the authority of the Board of Directors in the management of the corporation to act only in time sensitive or emergency situations as determined by the Executive Committee, such authority to be exercised in time periods between regularly scheduled meetings of the Board of Directors. All members of the Executive Committee are members of the governing body of the corporation. The Executive Committee does not have the authority to amend, alter or repeal the Bylaws, elect, appoint or remove any member of the Exeuctive Committee or any director or officer of the corporation amend the articles of incorporation adopt a plan of merger or adopt a plan of consolidation with another corporation authorize the sale, lease or exchange of all or substantially all of the property and assets of the corporation not in the ordinary course of business authorize the voluntary dissolution of the corporation or revoke proceedings therefore adopt a plan for the distribution of the assets of the corporation amend, after or repeal any resolution of the Board which by its terms provides that it shall not be amended, altered or repealed by the Executive Committee or terminate the Chief Executive Officer. The Executive Committee also periodically evaluates the effectiveness of the Medical Centers systems for resolving internal conflicts. The Board also delegates to the Executive Committee the authority of the Board to make all appointments and reappointments to the Medical Staff of the hospital. Form 990, Part VI, Section A, Line 2 Family relationship between key employees Michael Glenn, MD and Lucy Glenn, MD. Form 990, Part VI, Section A, Line 4 By amendment dated December 15, 2015, effective January 1, 2016, the Medical Centers Bylaws were amended to provide that one 1 director shall be a Benaroya Research Institute director the BRI Director, nominated as described in Article 7 of the Bylaws and one 1 director shall be the Chair of the Virginia Mason Foundation Board the Foundation Director. The BRI Director is an individual recommended for appointment to the Virginia Mason Health System VMHS and the Medical Center Boards by the BRI Board, subject to the approval of the VMHS Governance Committee and VMHS Board. By amendment dated March 15, 2016, the Medical Centers Bylaws were amended to provide that a the nominations process previously described in Article 7 would be set forth in the VMHS Governance Committee Charter, b the Medical Center CEO shall no longer serve as an ex-officio non-voting director of Medical Center, c committee descriptions shall be set forth in Committee Charters, and d certain committees shall be restructured to no longer be joint committees with VMHS. By amendment dated December 20, 2016, quorum provisions for the Executive Committee were added providing that two 2 members of the Executive Committee shall constitute a quorum for a duly authorized committee meeting. In a committee meeting at which two 2 or three 3 members are present, the act of two 2 members of the Executive Committee shall be the act of the committee. In a committee meeting at which all four 4 members of the committee are present, the act of three 3 members of the committee shall be the act of the Executive Committee. Form 990, Part VI, Section A, Line 6, 7 VMHS is the sole corporate member of the Medical Center. VMHS as the sole member has the following approval rights 1 election and approval of Directors and Officers of the Board of Directors 2 approval of the appointment of the Chief Executive Officer 3 removal of Directors and Officers of the Board of Directors 4 approval of all long-range plans proposed by the Board of Directors 5 approval of the annual capital and operating budgets proposed by the Board of Directors 6 approval of the borrowing of funds where the amount is in excess of Ten Million Dollars 7 approval of the sale, lease, exchange, mortgage, pledge or disposal of all or substantially all of the property and assets 8 approval of all amendments to the Articles of Incorporation or Bylaws and all other rights and powers as specified in the Washington Nonprofit Corporation Act. Form 990, Part VI, Section B, Line 11b The Audit and Compliance Committee ACC, a committee composed of independent community members of the Medical Center Board of Directors is responsible for oversight of the annual Medical Center Form 990 and 990-T preparation process including 1 selection, engagement, and performance of an independent tax preparer 2 review of the annual draft Form 990 and 990-T tax returns, and 3 recommending the final Form 990 and 990-T tax returns for review to the Board of Directors. At the ACC September meeting, management provided the ACC with an initial draft of the Form 990 and the tax return reviewer presented an overview of the Form 990 preparation process. Following the September meeting, the ACC Chair updates the Medical Center Board on the Form 990 preparation. In October, a revised draft of the Form 990 is provided to the ACC Chair for further review and comment. The final draft Form 990 is reviewed and approved by the ACC in November, and provided to the 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 Board of Directors via electronic delivery by posting on a secure website which allows online viewing of Board documents. Form 990, Part VI, Section B, Line 12c The Governance Committee of the Board has accountability for oversight of the process for disclosure, evaluation and management of conflicts of interest involving any member of the Board, executive leadership or key employees Covered Person. Pursuant to the Conflicts of Interest Policy, an annual conflict of interest questionnaire is distributed to all Covered Persons. In addition, a Covered Person has an on-going duty to disclose the existence of a conflict of interest at any time an actual or potential conflict arises. Each Covered Person is required upon appointment and annually thereafter to attest to a statement that affirms that such person has 1 received a copy of the Conflicts of Interest Policy 2 has read and understands the Policy 3 has agreed to comply with the Policy and 4 understands that the Medical Center 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 the Medical Centers behalf related to the disclosed actual or potential Conflict of Interest unless such activity is permitted by the Conflict of Interest Management Plan or until the Covered Person has undertaken all steps set forth in the Management Plan to manage, reduce or eliminate the conflict. All Covered Persons have a duty to disclose the existence of any actual or potential conflict of interest with respect to meeting agenda items. The Conflicts of Interest Policy requires that copies of the Conflict of Interest Questionnaire completed annually by each Covered Person and any Conflict of Interest Management Plan be maintained. In addition, the minutes of the Board and all committees with board-delegated powers shall document the disclosure and resolution of any actual or potential conflict of interest disclosed at such meeting. Form 990, Part VI, Section B, Line 15 The VMHS Compensation and Benefits Board Committee, a committee composed solely of independent directors of VMHS none of whom has a conflict of interest, is accountable for setting reasonable total compensation packages for each Medical Center executive, including the CEO, officers and key employees Executives consistent with the Medical Centers 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 Medicall Center Executives. The Committee assesses performance against these goals. The Committee selects and engages a qualified independent compensation consultant to review and analyze the total compensation and benefits packages to the Executives. The Committee as part of its analysis obtains from the compensation consultant appropriate comparability data including total compensation paid by similarly situated for-profit and non-profit health care organizations for positions that are functionally comparable to each of the Executives. With respect to those Executives below the level of Chair/Chief Executive Officer, the Committee requests that the Chair/Chief Executive Officer work with the compensation consultant to formulate a compensation recommendation for each such Executive, consistent with VMHSs compensation philosophy and principles. Consistent with VMHSs 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 the Medical Center. 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 whose reports are reflected in the Boards minutes. The Executives that were reviewed in 2016 were Chief Executive Officer, President, Chief Operating Officer and Executive Vice President, Chief Information Officer/Chief Financial Officer and Executive Vice President, Senior Vice Presidents, Vice Presidents, Physician Chiefs, Clinic Medical Director, Hospital Medical Director, and Chief Medical Director. Form 990, Part VI, Section C, Line 19 The organizations Articles, Bylaws, Conflict of Interest Policy, and Financial Statements are made available upon request. Form 990, Part XI, Line 9 Additional Pension Adjustment 3,734,454 Donated Capital 1,400. 1000 Madison LLC 1100 Ninth Avenue Seattle WA 98101 204018216 Real Estate WA 1685454 27116606 VMMC 1005 Spring Street LLC 1100 Ninth Avenue Seattle WA 98101 204816736 Real Estate WA 1926320 3785173 VMMC Health Resource Services LLC 1100 Olive Way Seattle WA 98101 262800994 Group Purchasing WA 11144543 14849354 VMMC Puget Sound High Value Network LLC 1100 Ninth Avenue Seattle WA 98101 472840780 Medical Network WA VMMC Virginia Mason Health System 1100 Ninth Avenue Seattle WA 98101 911351110 Fundraising WA 501c3 7 N/A true Virginia Mason Institute 1100 Ninth Avenue Seattle WA 98101 263763656 Education/Research WA 501c3 10 VMMC true Benaroya Research Institute at Virginia Mason 1201 Ninth Avenue Seattle WA 98101 910653422 Research WA 501c3 4 VMHS false Yakima Valley Memorial Hospital Association 2811 Tieton Drive Yakima WA 98902 910567263 Health Care WA 501c3 3 VMHS false National Purchasing Partners LLC 1100 Olive Way Seattle WA 98101 203470995 Group Purchasing WA N/A Unrelated 14156922 1563471 false 14172200 true 0.50000 false true true false false false false false false true true false false false true true true false false Virginia Mason Medical Center 1100 Ninth Avenue Seattle WA 98101 910565539 X 121040 52648 173688 984139233 984312921 654371 163593 0 0 0 Virginia Mason Institute 1100 Ninth Avenue Seattle WA 98101 263763856 0 0 0 7100623 7100623 4720 1180 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