2017-11-13T18:55:55-06:00 2016-12-31 910189318 Moss Adams LLP 2707 Colby Avenue Suite 801 Everett WA 98201 990 2016-01-01 454789950 Confluence Health CONF 5096621511 1201 South Miller Street Wenatchee WA 98801 PETER D RUTHERFORD MD Chief Executive Officer 5096621511 2017-11-06 1 Robert Grannum P00355876 4252597227 2017-11-06 12.129.7.100 2017-11-06 13:31:08 PS P DA39A3EE5E6B4B0D3255BFEF95601890AFD80709 7ABEDE2D465AB02E671AD8304780CB1E1B9D70B4 2016 2017-02-10 21:41:12Z PETER D RUTHERFORD MD 1201 South Miller Street Wenatchee WA 98801 145373464 0 X www.confluencehealth.org X 2012 WA IMPROVING HEALTH BY PROVIDING HIGH-QUALITY CARE IN A COMPASSIONATE AND COST-EFFECTIVE MANNER. 15 15 752 16 0 0 396482 136146 117982334 145186732 0 26809 25598 23777 118404414 145373464 241336 343128 0 0 45427605 49540988 0 0 0 74766331 97140190 120435272 147024306 -2030858 -1650842 25432435 59729197 27289801 63237405 -1857366 -3508208 X IMPROVING HEALTH BY PROVIDING HIGH-QUALITY CARE IN A COMPASSIONATE AND COST-EFFECTIVE MANNER. 0 0 122805124 343128 145213541 Confluence Health provides the administrative and shared functions for the health system. In addition, the purposes of the System are as follows:A. Maintain the availability and access to high quality, cost effective healthcare services for the North Central Washington (NCW) Community;B. Improve coordination of limited health care resources and maximize the efficiency of the health care system to achieve the most cost effective care that can be delivered;C. Preserve NCW Community control over important care decisions and ensure NCW Community involvement in the development of the medical infrastructure and oversight of the NCW Community healthcare delivery system;D. Enhance the patient-physician relationship and maintain the high quality of care and breadth of services the NCW Community currently enjoys;E. Improve teamwork and integration across the continuum of care and ensure that physicians and other healthcare providers lead clinical designs and clinical decisions;F. Ensure that physicians and administrative leaders have a shared vision regarding the NCW Community health care delivery system;G. Ensure that the NCW Community economy, jobs, and business partners are preserved and can grow with the region in a responsible way;H. Develop a high performing integrated health care delivery system for the NCW Community that could apply for and be successful with contracts from Medicare so that the newly created health system can be identified as an Accountable Care Organization if so desired and position the Health System so that it could contract for the overall system of care and be successful with a newly developed risk contracts being offered by commercial insurers;i. Establish, equip, operate and maintain benevolent and charitable institutions for the giving of medical and surgical care to the sick, wounded, and suffering irrespective of sex, marital status, disability, color, race, religious belief, sexual orientation, economic status, or pecuniary circumstances; andj. Carry on any educational activities, related to the rendering of care to the sick and injured or the promotion of health which, in the opinion of the Board of Directors of the Health System may be justified by the facilities, personnel, funds or other requirements that are or can be made available in accordance with the laws of the State of Washington. 122805124 1 0 0 1 0 0 0 0 0 0 1 0 0 1 0 1 0 1 0 0 0 0 0 0 0 0 0 1 0 1 0 0 0 0 0 0 1 0 0 0 0 0 0 1 1 0 0 1 83 0 1 752 1 0 0 0 0 0 0 0 0 0 0 X 15 15 1 0 0 0 0 0 0 1 1 0 0 1 1 1 1 1 1 1 1 0 X JOHN DOYLE 5096621511 1201 SOUTH MILLER STREET WENATCHEE WA 98801 Kristine S Loomis Chairperson 2.00 2.00 X X 0 0 0 Frank J Kuntz Vice-Chairperson and Treasurer 2.00 2.00 X X 0 0 0 Gary Lammert MD Secretary 2.00 2.00 X X 0 0 0 David Daniel MD Secretary through 02/2016 2.00 2.00 X X 0 0 0 Toby Bond MD Board of Directors 1.00 2.00 X 0 0 0 Jenny Cravens Board of Directors 1.00 2.00 X 0 0 0 D Scott Duncan Board of Directors 1.00 2.00 X 0 0 0 Mitchell A Garrison MD Board of Directors 1.00 2.00 X 0 0 0 Gus Heinicke Board of Directors 1.00 2.00 X 0 0 0 Richard Hourigan MD Board of Directors 1.00 2.00 X 0 0 0 Laura Mounter Board of Directors 1.00 2.00 X 0 0 0 Michael Rossi MD Board of Directors 1.00 2.00 X 0 0 0 Doug Shae Board of Directors 1.00 2.00 X 0 0 0 Julie Smith MD Board of Directors 1.00 2.00 X 0 0 0 Robert Trask Jr Board of Directors 1.00 2.00 X 0 0 0 Patricia Wachtel Board of Directors 1.00 2.00 X 0 0 0 John R Doyle Chief Financial Officer 20.00 20.00 X 410543 0 36139 Peter Rutherford MD Chief Executive Officer 20.00 20.00 X 595571 0 34507 Glenn W Adams SR VP Ancillary Services 20.00 20.00 X 233443 0 35609 Jeanine M Allen SR VP Specialty Care 10.00 30.00 X 218299 0 31542 Jay H Johnson SR VP Network Strategy 20.00 20.00 X 315714 0 39911 Tracey A Kasnic RN SR VP Inpatient & CNO 20.00 20.00 X 314915 0 34635 Peter N Lolos SR VP Facility & Supt Srv 20.00 20.00 X 228221 0 23778 Vikki L Noyes Chief Operating Officer 20.00 20.00 X 385217 0 27452 Robert J Pageler Chief information Officer 20.00 20.00 X 296458 0 33531 James B Wood Chief Admin Officer 20.00 20.00 X 326599 0 35936 Jeanette Wood SR VP Primary Care 20.00 20.00 X 217024 0 27520 STUART D FREED MD Chief Medical Officer 20.00 20.00 X 433104 0 40091 Steven R Jacobs VP of Finance through 05/2016 20.00 20.00 X 224107 0 13713 Jeffrey W Davis VP of Business Development 20.00 20.00 X 223497 0 32314 Kevin Gilbert VP of Perioperative 20.00 20.00 X 208172 0 31945 Cory M Ferari-Zimmerman VP of Finance 20.00 20.00 X 203840 0 19175 Peggi A Amstutz VP of Revenue Cycle 20.00 20.00 X 180025 0 19144 John B Hamilton Former COO of CH 0.00 X 172531 0 226 5187280 0 517168 61 1 1 1 Impact Advisors 400 E Diehl Road Suite 190 Naperville IL 60563 IT Consulting 4020457 Advisory Board Company PO BOX 79461 BALTIMORE MD 21279 Consulting services 971023 Healthcare Resource Group Inc 12610 Mirabeau Pkwy Spokane Valley WA 99216 Consulting services 521722 Moss Adams LLP PO Box 748369 Los Angeles CA 90074 Auditing & Consulting 454597 Davis Arneil Law Firm LLP 617 Washington St Wenatchee WA 98801 Legal Services 450255 34 136146 136146 Management Services 541610 75464337 75464337 Managed Care 541610 67631706 67631706 Other Operating INcome 900099 2090689 2090689 145186732 26809 26809 23777 0 23777 23777 23777 145373464 145213541 0 23777 343128 343128 4375756 3500605 875151 34535873 27628699 6907174 2367278 1893822 473456 4948596 3958877 989719 3313485 2650788 662697 676788 203036 473752 330640 330640 89701 62791 26910 3543056 2480139 1062917 217619 174095 43524 2865437 2292350 573087 7925621 6340497 1585124 1655572 1490015 165557 1066481 959833 106648 2342219 2107997 234222 632409 632409 Managed Care Claim Expe 74275160 65198965 9076195 Taxes and Licenses 1519487 1519487 147024306 122805124 24219182 0 4872379 8606864 0 14154321 4233575 2263409 2498432 2845476 33836240 5977113 9828049 27859127 4000000 4000000 25432435 59729197 27289801 38237405 0 25000000 27289801 63237405 X -1857366 -3508208 -1857366 -3508208 25432435 59729197 -1650842 0 X 0 1 X 1 0 X X X 2 WENATCHEE VALLEY HOSPITAL 455563741 3 1 33897123 0 CENTRAL WASHINGTON HEALTH SERVICES 910171250 3 1 41567214 0 2 75464337 0 1 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1 1 0 X 1 1 PART VI, SECTION E, LINE 3A AND 3B The health system is organized as a non-profit, tax exempt entity under Washington law. The health system is a means to integrate its related hospitals, including Central Washington Hospital and Wenatchee Valley Hospital, that a board of directors of the health system have authorized to be incorporated, of which the health system shall be a sole member and managed organizations under a common governance structure consistent with the goals and objective of the parties. 0 0 0 0 0 0 0 0 1 89701 89701 0 Part II-B, Line 1: $89,701 was provided to Capitol Associates, Inc (CAI) who is a Washington-based bipartisan, lobbying, government relations and public relations firm. The organization's work includes the preparation of congressional testimony and the planning and execution of briefings for members of congress and their staff. 225088 225088 1107173 32109 1075064 10306630 5882359 4424271 22197349 62645 22134704 27859127 Investment in Health Alliance NW 4000000 4000000 X Part X, Line 2: The Health System is formed as three separate not-for-profit corporations, which have been recognized as tax exempt pursuant to Section 501(c)(3) of the Internal Revenue Code. The Health System is exempt from federal income tax under Section 501(c)(3) of the Internal Revenue Code except to the extent of unrelated business taxable income as defined under IRC Sections 511 through 515. Any unrelated business income generated is not significant; therefore, no provision for income taxes has been recorded. The Health System has adopted accounting for uncertain tax positions. The accounting standard prescribes a recognition threshold and measurement process for uncertain tax positions. As of December 31, 2016 and 2015, the Health System had no uncertain tax positions requiring accrual. 1 Wenatchee Downtown Association 103 Palouse St Suite 35 Wenatchee WA 98801 910823589 501(c)(3) 60000 Main Street $30k Tax Credit Initiative for 2017 Honoring Choices Pacific NW 2001 Sixth Avenue Suite 2700 Seattle WA 98121 916074463 501(c)(3) 50000 End of Life Care Wellness Place PO Box 1802 wenatchee WA 98807 911891688 501(c)(3) 40000 Third year of 3 year commitment United Way PO Box 488 Wenatchee WA 98807 910657766 501(c)(3) 38128 Employee Match Tonasket Swimming Pool PO Box 1217 Tonasket WA 98855 471892582 501(c)(3) 20000 New community pool Wenatchee Valley College 1300 Fifth St Wenatchee WA 98801 910817705 501(c)(3) 20000 General Support Wenatchee Valley Symphony Orchestra PO Box 3423 Wenatchee WA 98807 237108001 501(c)(3) 15000 Business Partnership to support nutcracker Performance American Cancer Society 103 Palouse St Suite 28 wenatchee WA 98801 131788491 501(c)(3) 15000 Relay for Life Outdoor Discovery Network 1512 Rex Road Wenatchee WA 98801 260691476 501(c)(3) 12500 Website Maintenance Chelan Douglas Land Trust PO Box 4461 wenatchee WA 98807 911331348 501(c)(3) 12000 2016 Annual Campaign NCW Nurses Week PO Box 1822 wenatchee WA 98807 911232106 501(c)(3) 12000 2016 and 2017 Nurses Week Seattle Children's Hospital PO Box 24049 Seattle WA 98124 910564748 501(c)(3) 10000 Safe Gun Storage Giveaway Alatheia Riding Center 2170 Sleepy Hollow Heights wenatchee WA 98801 451552046 501(c)(3) 10000 Therapeutic horseback riding Ease Cancer Foundation PO Box 337 Cashmere WA 98815 208047581 501(c)(3) 8500 Cancer awareness Wenatchee Row & Paddle PO Box 3925 wenatchee WA 98807 911661493 501(c)(3) 7500 Youth on the Columbia ($5 per kid, up to $7,500) YMCA 217 Orondo Avenue Wenatchee WA 98801 910578224 501(c)(3) 7500 Partners with Youth - 3rd of 3 year commitment Wenatchee Rotary Foundation 517 N Mission Ste B wenatchee WA 98801 910390418 501(c)(3) 5000 2017 Communities Auction 17 Part I, Line 2: Outside organizations submit requests to the Organization throughout the year. The requests are separated based on the monetary value requested. Each request requires support from the requesting organization as to the purpose/use of the funds and whether the request benefits the community. Two committees review the requests based on the monetary value of the request. X X X 0 0 0 0 0 1 1 0 0 John R Doyle Chief Financial Officer 382142 0 20843 0 7558 0 17888 0 18251 0 446682 0 0 0 Peter Rutherford MD Chief Executive Officer 565189 0 30382 0 0 0 19875 0 14632 0 630078 0 0 0 Glenn W Adams SR VP Ancillary Services 221240 0 12203 0 0 0 15573 0 20036 0 269052 0 0 0 Jeanine M Allen SR VP Specialty Care 203153 0 11125 0 4021 0 14897 0 16645 0 249841 0 0 0 Jay H Johnson SR VP Network Strategy 293803 0 16085 0 5826 0 19875 0 20036 0 355625 0 0 0 Tracey A Kasnic RN SR VP Inpatient & CNO 287832 0 15706 0 11377 0 17888 0 16747 0 349550 0 0 0 Peter N Lolos SR VP Facility & Supt Srv 209054 0 11125 0 8042 0 16494 0 7284 0 251999 0 0 0 Vikki L Noyes Chief Operating Officer 376103 0 9114 0 0 0 10600 0 16852 0 412669 0 0 0 Robert J Pageler Chief information Officer 270744 0 14914 0 10800 0 15900 0 17631 0 329989 0 0 0 James B Wood Chief Admin Officer 303955 0 16622 0 6022 0 15900 0 20036 0 362535 0 0 0 Jeanette Wood SR VP Primary Care 205899 0 11125 0 0 0 14812 0 12708 0 244544 0 0 0 STUART D FREED MD Chief Medical Officer 403195 0 23009 0 6900 0 19875 0 20216 0 473195 0 0 0 Steven R Jacobs VP of Finance through 05/2016 125859 0 4592 0 93656 0 13713 0 0 0 237820 0 0 0 Jeffrey W Davis VP of Business Development 217660 0 5837 0 0 0 13215 0 19099 0 255811 0 0 0 Kevin Gilbert VP of Perioperative 202730 0 5442 0 0 0 15300 0 16645 0 240117 0 0 0 Cory M Ferari-Zimmerman VP of Finance 198415 0 5425 0 0 0 3970 0 15205 0 223015 0 0 0 Peggi A Amstutz VP of Revenue Cycle 175310 0 4715 0 0 0 10372 0 8772 0 199169 0 0 0 John B Hamilton Former COO of CH 0 0 0 0 172531 0 226 0 0 0 172757 0 172531 0 Part I, Line 6 Every pay period, the employer contributes the match percentage per the plan document into the employees' retirement account. Annually, the board determines based on financial results if an additional (or discretionary) amount will be contributed to the employees' accounts. The percentage is based on employee classification and length of service. The decision is based on meeting organizational goals, and one of those goals is the combined operating margin of the three Confluence Health System organizations: Confluence Health, Central Washington Health Services Association, and Wenatchee Valley Hospital. part II: Compensation for dr. Stuart Freed is reviewed, approved, and paid by an unrelated third party, Wenatchee Valley Medical Group, for services performed for Confluence Health. Compensation paid in 2016 was $465,256. Steven Wood Family Member of Jeanette Wood, Sr. VP of Primary Care 82898 Employment 0 Form 990, Part VI, Section A, line 2 CONFLUENCE HEALTH AND AFFILIATES SHARE THE SAME BOARD AS PART OF THE OPERATING STRUCTURE. AS SUCH, ALL BOARD MEMBERS SERVE WITH EACH OTHER IN A SIMILAR CAPACITY ON RELATED ORGANIZATIONS. ADDITIONALLY, some board members are minority owners in an entity that has a professional service agreement with the organization. Form 990, Part VI, Section B, line 11b A COPY OF THE FORM 990 AND SCHEDULE B, if any, IS REVIEWED BY THE CHIEF FINANCIAL OFFICER and VICE PRESIDENT OF FINANCE. SUBSEQUENT TO THIS REVIEW THE FORM 990 AND SCHEDULE B IS REVIEWED BY THE GOVERNING BOARD BEFORE BEING FILED WITH THE IRS. Form 990, Part VI, Section B, line 12c Board members, Executive team members and Directors are required to review the current conflict of interest policy and complete an annual questionnaire. The Nominating Committee of the Board reviews questionnaires of existing and new members for potential conflicts of interest. Any potential conflicts of interest are resolved by the Nominating Committee. The Executive Team reviews questionnaires submitted by Executive team members and Directors for potential conflicts of interest. Potential conflicts of interest are resolved by the Executive Team in collaboration with the Corporate Compliance Officer. Review of all conflict of interest statements is noted within the Board minutes. Form 990, Part VI, Section B, line 15 The Compensation Committee of the Governing Board reviews independent salary survey information and recommends a salary and/or a salary increase for the CEO to the Governing Board. The other Officers receive an annual percent increase which non-contractual employees receive unless the CEO awards a different percentage. The amount is, typically, based on current CPI, market and salary survey information. Form 990, Part VI, Section C, line 19 CONFLUENCE HEALTH'S GOVERNING DOCUMENTS, CONFLICT OF INTEREST POLICY, AND FINANCIAL STATEMENTS ARE AVAILABLE ON REQUEST. WENATCHEE VALLEY HOSPITAL 820 N Chelan Ave WENATCHEE WA 98801 455563741 HOSPITAL WA 501(c)(3) Line 3 CONFLUENCE HEALTH 1 CENTRAL WASHINGTON HEALTH SERVICES ASSOCIATION 1201 S Miller Street WENATCHEE WA 98801 910171250 HOSPITAL WA 501(c)(3) Line 3 CONFLUENCE HEALTH 1 0 0 0 0 0 0 0 0 0 0 0 1 0 0 0 0 1 0 0 Wenatchee Valley Hospital L 33897123 Cost Allocation Central Washington Health Services Association L 41567214 Cost Allocation