2016-11-15T05:08:15-00:00 2015-12-31 KPMG LLP 1918 8th Avenue Suite 2900 Seattle WA 98101 990 2015-01-01 910565539 Virginia Mason Medical Center VIRG 2062236600 1100 Ninth Avenue Seattle WA 98101 Gary Kaplan MD Chairman and CEO 2016-10-24 true Jayson Miller 2069134000 2016-10-24 2015 2017-02-10 21:41:12Z Gary Kaplan MD 1100 Ninth Avenue Seattle WA 98101 1199915519 false X www.virginiamason.org X 1934 WA 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. 15 14 6200 481 26491485 13612676 5821939 6915333 972025505 1022264133 21488522 32186123 8317230 8064268 1007653196 1069429857 8728556 7313046 0 560157746 560249573 0 0 408339882 457549925 977226184 1025112544 30427012 44317313 1129053390 1141667609 716594082 696392315 412459308 445275294 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 874357493 1021994035 Health Care Services. The Medical Center is a tertiary regional referral center which serves a patient community that includes Seattle and its surrounding surburbs, 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 2015, the Medical Center recorded 15,436 hospital inpatient admissions, 24,976 emergency room visits and 857,926 clinic visits. The Medical Center provided charity care and unreimbursed Medicaid services to a total of 4,530 patients. Continued on Schedule O. 23954491 3502500 180730 Education and Research. The Medical Center is an independent academic medical center with a graduate medical education program that trains over 120 residents in nine accredited programs in anesthesiology, internal medicine, general surgery, diagnostic radiology, preliminary surgery, transitional year, and urology. In addition, the Medical Center trains a number of fellows in areas such as 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, continuing medical education, and grand rounds. In addition, the Medical Center conducts medical research through its affiliate Benaoya Research Institute at Virginia Mason, a scientific research instiute qualified under Section 501c3 of the Internal Revenue code. Continued on Schedule O. 342294 89368 Community Health Education and Services. The Medical Center contributes to improving the health of the community through sponsorship of community health education and services. Community health education includes classes, forums, presentations and other programs held during the day and evening in the Medical Center neighborhood clinic communities and the Seattle main campus. The Buse Diabetes Teaching Center provides a nationally recognized education program which includes classes covering every aspect of diabetes care including how to support long term health lifestyle habits and avoid long-term complications. The education programs are open to everyone with diabetes and their family members. Scholarships are available. In 2015, the Medical Center provided 39,000 toward support of the Buse Diabetes Teaching Center. Continued on Schedule O. 3810546 3810546 902464824 true true false true false false false false false true true false false false true true false false 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 669 0 true 6200 true true true false false false false false false false false false X 15 14 true false false 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 Michelle Burris Director 002.00 002.00 X 0 0 0 Joshua Jay Green III Director 002.00 002.00 X 0 0 0 Tod Hamachek Director 002.00 002.00 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 Richard Rich Martinez 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 Gary Kaplan MD Chairman, CEO 050.00 005.00 X 1463343 0 1123646 Suzanne Anderson Executive Vice President, CIO/CFO 050.00 004.00 X 793097 0 126039 Katerie Chapman Senior Vice President, Hospital Administrator 050.00 X 390218 0 46177 Lucy Glenn MD Chief of Radiology 050.00 X 733384 0 68783 Michael Glenn MD Chief Medical Officer 050.00 X 848188 0 128099 Fred Govier MD Chief of Surgery 050.00 X 793444 0 60850 Joyce Lammert MD Medical Director, Hospital 050.00 001.00 X 575689 0 92758 Sarah Patterson Executive Vice President, COO 050.00 004.00 X 928703 0 131286 William Poppy Senior Vice President, CTO 050.00 X 504483 0 48898 Steve Rupp MD Medical Director, Perioperative Services and Anesthesia 050.00 X 545804 0 37544 Donna Smith MD Medical Director, Clinic 050.00 X 566844 0 152556 Charleen Tachibana RN Senior Vice President, Quality and Safety 050.00 X 516716 0 85873 James P Cote Senior Vice President, Clinic Administrator 050.00 X 356530 0 85034 Michael P Ondracek Vice President, Clinic Operations 050.00 X 218776 0 19946 Caterine Potts MD Chief, Primary Care 050.00 X 417774 0 58633 Shelly Fagerlund Vice President, Clinic Operations 050.00 X 270791 0 36480 Michael Gluck MD Chief of Medicine 050.00 X 931706 0 75482 Denise Dubuque Vice President, Surgical and Procedural Services 050.00 X 227008 0 32548 Cindy Rockfield Vice President, Clinic Operations 050.00 X 164841 0 23893 Christopher L Fellows MD Physician 050.00 X 1240938 0 52765 Ulrike I Ochs MD Physician 050.00 X 964985 0 49841 Richard A Kozarek MD Physician 050.00 X 1004654 0 91164 Mark Hill MD Physician 050.00 X 905596 0 101884 Ravi Kirshnan MD Physician 050.00 X 902160 0 47621 Andrew Jacobs MD Physician, Former Key Employee 050.00 X 808318 0 50527 17073990 2828327 1242 true true false Crothall Healthcare Inc 955 Chesterbrook Blvc Suite 300 Wayne PA 19087 Staffing Services 14027128 Skanska USA Building Inc 221 Yale Ave N Suite 400 Seattle WA 98109 Construction Services 6522980 Turner Construction Company 8330 4th Ave S Seattle WA 98134 Construction Services 4205717 Cerner Corporation PO Box 9591556 St Louis MO 63195 Application Services 4329471 LifeCenter Northwest 3650 131st Se SE Ste 200 Bellevue WA 98006 Professional Services 2856800 64 6915333 6915333 Operating Revenues 561499 1051302266 1038000515 13301751 Medicare/Medicaid Payments 621300 327798500 327798500 1022264133 28672648 13184518 15488130 285696 285696 1495389 1924859 -429470 -429470 -486004 56534 131556132 128328353 3227779 3227779 3227779 410853 232450 178403 178403 Cafeteria 722100 3694930 3694930 Parking 721110 4392440 312817 4079623 Medical Records 561499 217827 217827 10138 10138 8315335 1069429857 1008962382 26491485 27060657 7313046 7313046 0 0 0 13266995 11978079 1288916 0 467492637 409495554 57997083 26105351 22866724 3238627 23273351 20386062 2887289 30111239 26375642 3735597 1837815 1609816 227999 1693109 1693109 569656 569656 154765 154765 0 53358120 46738518 6619602 5541581 4854093 687488 208812685 182907407 25905278 28124711 24635563 3489148 0 21947833 19224987 2722846 2810020 2461409 348611 0 405906 355549 50357 24145475 21149990 2995485 0 45158992 39556574 5602418 11222588 9830315 1392273 Taxes 43104167 43104167 Medical Purchased Services 618838 542065 76773 Dues and subscriptions 2208726 1934712 274014 Bad Debt Expense 270004 270004 5564934 4874548 690386 1025112544 902464824 122647720 0 45300738 36693580 72958680 53924422 116762830 108761492 15839121 17286237 4299709 4565121 1054906590 471574265 596390553 583332325 223944398 286346658 53557361 50757774 1129053390 1141667609 133191273 125147574 71245 69848 311118911 310105008 136489470 136511339 135723183 124558546 716594082 696392315 X 395194749 426428035 12933281 14000186 4331278 4847073 412459308 445275294 1129053390 1141667609 X 44317313 -16993028 5491701 X false true X true true true X 0.00000 0.00000 0.00000 RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED X 108173 108173 46593 46593 154766 154766 1024957778 1112971638 1025112544 1113126404 1000000 1000000 250000 250001 1000000 1000000 1000000 1000000 4000000 6000000 133874 122035 138835 154766 549510 250000 250000 250000 250000 1000000 1500000 127874 114035 119335 108173 469417 II-A A Virginia Mason Medical Center, EIN 91-0565539, 1100 Ninth Avenue, Seattle, WA 98101. Electing Member. Grassroots Lobbying Expenditures 46,593 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, 2015. Virginia Mason Medical Center pays membership dues to Washington State Hospital Association, a portion of which was used for legislative and lobbying activities. Virginia Mason Medical Center also pays membership dues to other professional health care organizations, a portion of which may be used for legislative and lobbying activites. 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, 0 Excess Lobbying Expenditures. II-A A continued Benaroya Researach Institute at Virginia Mason, EIN 91-0653422, 1201 Ninth Avenue, Seattle, WA 98101. Non-electing member. 0 Lobbying Expenditures. 0 Excess Lobbying Expendirures. false 14366911 541000 -427461 566474 13913976 14515607 61150 350255 560101 14366911 13453135 1797810 735338 14515607 12043176 100706 1800839 491586 13453135 12672073 -146637 482260 12043176 0.57000 0.31000 0.12000 true false 40817679 40817679 596714352 174785903 421928449 22430010 13355342 9074668 379559530 282608724 96950806 15385019 824296 14560723 583332325 Financial derivatives and other financial products Closely-held equity interests Federal income taxes Due to affiliates 3793542 Third Party Payor 13922408 Professional Liability 13057857 Accrued Retirement Expenses 89146036 Asbestos Abatement 641451 Deferred Rent Credits 3997252 124558546 X 1063981678 -16993028 13976875 -3016153 1066997831 2432026 2432026 1069429857 1029206583 6526065 6526065 1022680518 2432026 2432026 1025112544 V 4 Support health care mission of Virginia Mason 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, 2015, 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 2012. XI 2d Restricted Capital Transfers 6,633 Additional Pension Adjustment 5,485,058 Virginia Mason Institute Revenues 8,485,184 XI 4b Rental expenses 1,926,058 Financial reclasses 49,410 Cost of Goods Sold 232,450 Non-operating expenses 6,406,571 Rebate transfers 772,653 Donation Transfers 2,638,100 XII 2d Virginia Mason Institute Expenses 6,526,065 XII 4b Rental expense 1,926,058 Financial reclasses 49,410 Cost of Goods Sold 232,450 Non-operating expenses 6,406,571 Rebate transfers 772,653 Donation Transfers 2,638,100 East Asia and the Pacific Program Services Education 16975 Europe Including Iceland and Greenland Program Services Education 13372 North America Program Services Education 26670 Central America and the Caribbean Program Services Education 2258 Middle East and North Africa Program Services Education 9749 South America Program Services Education 4372 South Asia Program Services Education 1392 Sub-Saharan Africa Program Services Education 4826 79614 79614 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 expeditures by the department. true true X true X false true true false true true 4530 5761942 5761942 0.00560 10604 59281920 40538008 18743912 0.01830 15134 65043862 40538008 24505854 0.02390 5 215 660460 89368 571092 0.00060 34 1485 11189664 6348601 4841063 0.00470 1 6039 1598729 1387182 211547 0.00020 4233774 4233774 0.00410 40 7739 17682627 7825151 9857476 0.00960 40 22873 82726489 48363159 34363330 0.03350 1 325255 325255 0.00030 1 325255 325255 0.00030 true 4696514 164854553 208962638 -44108085 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 13 true false false true X virginiamason.org X true 14 true virginiamason.org false false true X 0000000200.000000000000 X true true X X X true X virginiamason.org/FinancialAssistance X virginiamason.org/FinancialAssistance X virginiamason.org/FinancialAssistance X X X true false X X X true X X false false Group Virginia Mason Medical Center Line Part V, Section B, Line 5 Virginia Mason conducted key informant interviews with 10 individuals representing public health, city government, the healthcare safety net, cultural communities, schools, and health advocacy. The findings were also informed by 23 key informal interviews conducted earlier as part of the needs assessment for one of Virginia Masons health care partners. A Public Health and Health care 1 Public Health-Seattle King County 2 Neighborhood Health. B Education 1 Bainbridge Island School District 2 Bellevue School District 3 Edmonds School District 4 Federal Way School District. C Chronic disease prevention. 1 American Diabetes Association. D Government agencies 1 City of Bellevue 2 City of Federal Way. The Virginia Mason CHNA was informed by additional key informant interviews conducted for health care partner Group Health A Public Health and Health Care 1 Public Health-Seattle King County 2 HealthPoint 3 International Community Health Services 4 Sea Mar Community Health Centers 5 Seattle Indian Health Board. B Government agencies 1 City of Renton 2 City of SeaTac. C Cultural communities. 1 Asian Counseling and Referral Services 2 El Centro de la Raza 3 Jewish Family Services Refugee and Immigrant Service Centers 4 Lutheran Community Services International Counseling and Community Services D Organizations supporting healthy lifestyles 1 King County Parks and Recreation 2 Seattle Parks and Recreation 3 YMCA Chronic Disease Prevention 4 YMCA Auburn Valley Y E Youth organizations 1 Boys and Girls Clubs of King County 2 Community for Youth 3 New Futures 4 Renton Area Youth and Family Services. Group Virginia Mason Medical Center Line Part V, Section B, Line 11 Access to dental care was identified as a health need, but Virginia Mason lacks the personnel to address this issue and it is being addressed by other organizations, such as NeighborCare. Group Virginia Mason Medical Center Line Part V, Section B, Line 22d Virginia Mason is a participant in the Washington State Hospital Association Voluntary Effort on billing to the Uninsured. These guidelines developed in 2007 created a statewide standard for financial assistance consistent with Washington state law which provides that patients with gross family incomes at or below three hundred percent 300 of the federal poverty guidelines FPG adjusted for family size are eligible for charity care according to a sliding fee schedule. The maximum amount charged to FAP-eligible individuals for emergency or other medically necessary care is based on a sliding fee scale determined by FPG. Charity Care discounts that are less than 100 will be taken after a 25 uninsured discount is applied to the gross charges. Patients who are between 201 and 250 of FPG receive an additional 50 discount for a total reduction in charges of 67.5. Patients who are between 251 and 300 of FPG receive an additional 30 discount for a total reduction in charges of 52.5. 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 Bainbridge Island 380 Winslow Way E Bainbridge Island WA 98110 Outpatient Medical Center Virginia Mason University Village 2671 NE 46th St Seattle WA 98105 Outpatient Medical Center Bailey Boushay House 2720 East Madison Seattle WA 98112 Skilled Nursing Facility Part I Line 3c Charity Care discounts that are less than 100 will be taken after any uninsured discounts are applied. Additional full or partial Charity Care may be provided to patients with gross family incomes from 201 to 300 of the federal poverty level when circumstances as determined by the Medical Center indicate that full payment may cause financial hardship so as to significantly harm the patient or patients family. Additional full or partial discounts may be provided to patients who are not otherwise eligible for Charity Care, i.e., with gross family incomes above three hundred percent 300 of the federal poverty guidelines adjusted for family size. Such discounts may be provided to patients with catastrophic costs or conditions when circumstances as determined by the Medical Center indicate that full payment may cause extraordinary financial hardship to the patient or the patients family. 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 II The Medical Center supports community building activities by providing operational support to a daycare program which provides daycare for vulnerable populations. Part III Line 2 The Medical Center calculate 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 Centers financial statement includes the following statement on estimated uncollectible 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 collection trends, such as changes in the economy, which in turn have an impact on unemployment rates and the number of uninsured and underinsured patients, the increased burden of co-payments to be made by patients with insurance, and business practices related to collection efforts. These factors continuously change and can have an impact on collection trends and the estimation process. The difference between the standard or contractual rates 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, 2014 Allowance for uncollectible accounts at beginning of the year 4,287,000 Write-offs of accounts deemed uncollectible 9,737,000 Provision for bad debt 12,990,000 Allowance for uncollectible accounts at the end of the year 7,540,000. For the year ended December 31, 2015 Allowance for uncollectible accounts at the beginning of the year 7,540,000 Write-offs of accounts deemed uncollectible 11,650,000 Provision for bad debt 10,185,000 Allowance for uncollectible accounts at end of the year 6,075,000. Part III Line 8 The Medical Centers calculation of the Medicare shortfall related to Hospital based inpatient and outpatient shortfall is 49,729,204. 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 satellite clinics 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 18 million which is not included in the traditional cost report primarily due to shortfall of Medicare professional fees versus costs. Part III Line 9b Virginia Masons mission is to improve the health and well-being of the patients we serve. To ensure the Medical Center continues to have the resources to fulfill our mission, we must balance the financial needs of our patients with those of the Medical Center. In all instances, we will treat our patients with dignity, compassion and respect. 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. 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, 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. 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 communitys 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 2013. It was developed in partnership with The Center for Community Health and Evaluation CCHE. The Virginia Mason 2013-2015 CHNA includes secondary data from a variety of local, state, and federal agencies, including Public Health-Seattle 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 2013-2015 CHNA Implementation Strategy was also developed and serves as a living document to guide our community benefit programs. In 2013, Virginia Mason partnered with other King County hospitals and Public Health - Seattle King County to form Hospitals for a Healthier Community. This hospital collaborative developed a 2016 CHNA, and is developing collaborative community programs to comprehensively address community health issues. Our community benefit program focuses our resources on the needs of the community and the strengths of Virginia Mason. 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 Virginia Masons 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. 3 Partnership with Public Health-Seattle 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, Virginia Mason is committed to serving patients who are uninsured, underinsured or otherwise unable to pay for their medical care. C Research Virginia Mason conducts medical research through its affiliate, Benaroya Research Institute at Virginia Mason BRI. Part VI Line 2 continued D Education 1 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 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 CHNAs, 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 our diabetes prevention program at the Mexican Consulate, 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 Healthy cooking demonstrations at Plymouth Housing Group 5 Free health screenings and health fair sponsorships in the community 6 Free flu shots and health screenings for uninsured/underinsured and the homeless 7 United Way - Organizational support and participation in Day of Caring and the Community Resource Exchange 8 Providing supplies to Medical Teams International for local and global programs and 9 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 is also included on patient bills. The Medical Centers Patient Guide to Fees and Billings include information on charity availability and contact information to initiate an assessment. The brochure is available in all patient lobbies for the patient to pick up. The brochure is also sent out by Patient Account Services staff based on 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 in 2012 was 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 organizatioin 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 or reduced-cost medically necessary care after all health insurance has been exhausted is provided to individuals making up to 300 percent of the federal poverty level in keeping with the Washington State Hospital Association voluntary guidelines on billing the uninsured. In 2015, Virginia Mason provided charity care to 4,540 patients at a cost of 5,761,943. In addition, Virginia Masons unreimbursed Mediaid was provided at a cost of 24,340,347. 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 Professions Education. Virginia Mason strongly supports medical education to ensure our patients and the community benefit from advances in medical care. Virginia Mason is a premier teaching hospita 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 ADGME. Virginia Mason trains more than 120 residents and fellows annually. VMs GME program is partnered with Public Health - Seattle King County Health Services Division, providing 12 residents for the Eastgate Public Health Center, as well as providing residents at the Carolyn Downs Family Medical Center, Pike Market Medical Clinic and North Public Health Center. 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 1 Bailey-Boushay House BBH, a nursing residence and Adult Day Health center for people living with HIV/AIDS and 2 Tender Loving Care, a day-care program for mildly ill children. Part VI Line 5 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. In 2013, Virginia Mason hired a full time sustainability director. 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 6 million gallons of water per year. Between 2011 and 2015, Virginia Mason diverted more than 4,439 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 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 739 members on its active hospital staff, including Virginia Mason physicians, 193 Group Health physicians, 23 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 managment of conflict of interest. The voting members of the Governance Committee are independent community members of the Medical Centers board. As a further 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, 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 portiion 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 Benaroya Research Institute at Virginia Mason 1201 Ninth Avenue Seattle WA 98101 910653422 501c3 3502500 Operating Grant Virginia Mason Health System 1100 Ninth Avenue Seattle WA 98101 911351110 501c3 3204166 Operating Grant Project Access Northwest 1111 Harvard Ave Seattle WA 98122 204377921 501c3 81500 General Support Public Health - Seattle & King County 401 5th Ave Ste 1200 Seattle WA 98104 916001327 Washington 81000 General Support JDRF International 1200 Sixth Ave Suite 605 Seattle WA 98101 231907729 501c3 44000 General Support Northwest Healthcare Response Network 7100 Fort Dent Way Ste 210 Tukwila WA 98188 463002271 501c3 35000 General Support American Heart Association 710 Second Ave Ste 900 Seattle WA 98104 135613797 501c3 32107 General Support Kasey Kahne Foundation 130 Infield Court Mooresville NC 28117 251926392 501c3 30000 General Support National Multiple Sclerosis Society 192 Nickerson St Ste 100 Seattle WA 98109 910742424 501c3 27500 General Support Neighborcare Health 1537 Western Ave Seattle WA 98101 910893287 501c3 25000 General Support Washington Youth Soccer 500 S 336th St Federal Way WA 98003 237303150 501c3 25000 General Support Group Health Foundation PO Box 34015 Seattle WA 98124 911246278 501c3 15000 General Support Northwest 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 Bainbridge Island Downtown Association 120 Madrone Lane N Ste 203 Bainbridge Island WA 98110 911390519 501c3 10600 General Support Foundation for Health Care Quality 705 Second Ave Suite 703 Seattle WA 98104 911419327 501c3 10000 General Support Crohn's & Colitis 9 Lake Bellevue Dr Suite 203 Seattle WA 98005 136193105 501c3 9500 General Support EvergreenHealth Foundation 12040 NE 128th St Kirkland WA 98034 911519430 501c3 8000 General Support Encompass 1407 Boalch Ave NW North Bend WA 98045 910825232 501c3 7500 General Support Girls on the Run Puget Sound 8757 15th Ave NW Seattle WA 98117 841618574 501c3 7500 General Support Robert Vasen Foundation 2807 102nd Ave SE Bellevue WA 98004 208656415 501c3 7500 General Support Seattle Pacific University 3307 Third Ave Ste 106 Seattle WA 98117 910565553 501c3 6000 General Support American Red Cross 1900 25th Ave S Seattle WA 98144 530196605 501c3 5000 General Support ArtsFund PO Box 19780 Seattle WA 98109 910839644 501c3 5000 General Support Autoimmune Advocacy Alliance - A3 PO Box 3658 Wenatchee WA 98807 454710734 501c3 5000 General Support Bellevue Arts Museum 510 Bellevue Way NE Bellevue WA 98004 916028261 501c3 5000 General Support Community Foundation of NCW 9 S Wenatchee Ave Wenatchee WA 98801 911349486 501c3 5000 General Support Mary's Place 1830 9th Ave Seattle WA 98101 272087950 501c3 5000 General Support National Patient Safety Foundation 268 Summer Street 6th Floor Boston MA 02210 367166993 501c3 5000 General Support Northwest Parkinson's Foundation 400 Mercer Street Ste 502 Seattle WA 98109 911923159 501c3 5000 General Support Robert Chinn Foundation PO Box 14084 Seattle WA 98121 911364167 501c3 5000 General Support Seattle Center Foundation 05 Harrison St 302 Seattle WA 98109 911003385 501c3 5000 General Support The Seattle Foundation 1200 5th Ave Ste 1300 Seattle WA 98101 916013536 501c3 5000 General Support YWCA of Seattle-KC-Snohomish Cty 1118 Fifth Ave Seattle WA 98101 910482890 501c3 5000 General Support 34 Part I Line 2 The funds provided to Virginia Mason Health System and Benaroya research Institute at Virginia Mason are for operational support or specific activities. Assistance provided to other non-profit organizations consisted of donations made to support specific events sponsored by the recipient organizations. X X true true X X X X X false true false false false false false false false Gary Kaplan MD Chairman, CEO 1040152 403531 19660 1081178 42468 2586989 Suzanne Anderson Executive Vice President, CIO/CFO 508403 264934 19760 92181 33858 919136 Katerie Chapman Senior Vice President, Hospital Administrator 315217 69513 5488 14931 31246 436395 Lucy Glenn MD Chief of Radiology 572032 142408 18944 59754 9029 802167 Michael Glenn MD Chief Medical Officer 628399 200674 19114 118239 9861 976287 Fred Govier MD Chief of Surgery 619092 155238 19114 39240 21610 854294 Joyce Lammert MD Medical Director, Hospital 443634 112527 19528 83331 9427 668447 Sarah Patterson Executive Vice President, COO 516256 167328 245119 100626 30660 1059989 171331 William Poppy Senior Vice President, CTO 353815 92382 58286 14931 33967 553381 Steve Rupp MD Medical Director, Perioperative Services and Anesthesia 427591 117099 1114 14931 22613 583348 Donna Smith MD Medical Director, Clinic 436049 112381 18414 119511 33045 719400 Charleen Tachibana RN Senior Vice President, Quality and Safety 397168 98628 20920 74781 11092 602589 James P Cote Senior Vice President, Clinic Administrator 256003 84099 16428 64581 20453 441564 Michael P Ondracek Vice President, Clinic Operations 157813 60333 630 9891 10055 238722 Caterine Potts MD Chief, Primary Care 317172 81411 19191 46224 12409 476407 Shelly Fagerlund Vice President, Clinic Operations 216530 53361 900 14931 21549 307271 Michael Gluck MD Chief of Medicine 728556 183619 19531 41664 33818 1007188 Denise Dubuque Vice President, Surgical and Procedural Services 196833 29835 340 14931 17617 259556 Cindy Rockfield Vice President, Clinic Operations 144257 20315 270 13804 10088 188734 Christopher L Fellows MD Physician 1221884 19054 30465 22300 1293703 Ulrike I Ochs MD Physician 943741 22 21222 19728 30113 1014826 Richard A Kozarek MD Physician 933744 70910 68824 22340 1095818 50000 Mark Hill MD Physician 887326 18270 84021 17863 1007480 Ravi Kirshnan MD Physician 883738 18422 14931 32690 949781 Andrew Jacobs MD Physician, Former Key Employee 264695 119976 423648 21118 29408 858845 392220 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 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. A Washington Health Care Facilities Authority 911108929 93978EH54 2007-12-03 316302277 Refund/Redeem, acquire, construct, remodel facility purchase equipment false false false A 7700000 324407027 25474387 23686013 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 os 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 30934 Employee false Form 990, Part III, Line 1 The Medical Center provides integrated health services through a teaching hospital licensed for 336 beds and multi-specialty group practice of approximately 482 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 Center patient care services are integrated with and enhanced by education and research activities which includes 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 327 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 sliding fee scale for patients with gross family incomes at or below 300 of the Federal poverty guidelines adjusted for family size as follows 1 Below the Federal Poverty Level Medicaid and/or 100 discount 2 100 - 200 of Poverty Level 100 Discount 3 201 - 250 of Poverty Level 50 Discount 4 251 - 300 of Poverty Level 30 Discount. Full or partial charity care may be provided to patients with gross family incomes from 201 to 300 of the federal poverty level when circumstances indicate that full payment may cause financial hardship so as to significantly harm the patient or patients family. Patients without health insurance are eligible for a twenty-five percent 25 discount on medically necessary services under the Medical Centers Discounts for Uninsured Patients Policy. Charity care was provided at a cost of 5,761,943 during the year, along with 24,340,347 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 39 CNE events in 2015 to 931 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, customer service representatives, surgery schedulers, patient flow coordinators, 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. The program was last reaccredited in 2010, receiving Accreditation with Commendation, a designation achieved by the top 25 percent of CME programs in the country. In 2015, the CME department sponsored 36 courses either full-, half-, or multi-day totaling 459.5 hours of instructions. These activities were attended by 1,215 participants, including 598 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 2015, 6 physicians completed these projects. During 2015, 43 one-hour Grand round presentations were presented at the Medical Center, with the on-site audience averaging 116 attendees weekly. The Grand Round series is also broadcast via videoconference to the organizations satellites locations and to 13 off-site health care systems throughout Alaska and Washington State. The CME department supports 11 additional Regularly Scheduled Series in including Cancer Care, Clinical Cardiovascular, Neuroscience Imaging, Competencies and Incidents, Vascular Surgery, GI Radiology, GI Pathology, Pharmacy and Therapeutics, and Schwartz Rounds. During the year, 594.0 hours of instruction were offered through these 12 series. Cumulative participation hours tracked for these 12 series totaled 6,576, of which 5,485 were physician attendance hours. Approximately 12 of our investigators have faculty appointments at the University of Washington, including 6 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 2015, the Medical Center provided 135,000 toward support of Separation and Loss. The Medical Center also supports Tender Loving Care TLC which is a day-care program for mildly ill children in King County. The program offers a cost-effective alternative for working parents with children who are mildly ill. TLC is open to the general public for a set fee and to employees of companies that contract for the service as part of their employee benefit package. The staff at TLC includes full-time registered nurses and a team of teachers experienced in early childhood education and child development, as well as infection control and caring for mildly ill children. The Medical Center provided 78,000 toward the operating costs of TLC in 2015. 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 2015. 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 2015. Form 990, Part VI, Section A, Line 1a The governing body delegates to an Officers 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 Officers Committee, such authority to be exercised in time periods between regularly scheduled meetings of the Board of Directors. All members of the Officers Committee are members of the governing body of the corporation. The Officers Committee does not have the authority to amend, alter or repeal the Bylaws, elect, appoint or remove any member of the Officers 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 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 Officers Committee or terminate the Chief Executive Officer. The Officers Committee also periodically evaluates the effectiveness of Virginia Mason Medical Centers VMMC systems for resolving internal conflicts. The Board also delegates to the Officers 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 6, 7 Virginia Mason Health System VMHS is the sole corporate member of Virginia Mason 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 VMMC Form 990 and 990-T preparation process including 1 selection, engagement, and performance of an independent tax preparer 2 review of the annual draft Form 990 and 990-T tax returns, and 3 recommending the final Form 990 and 990-T tax returns for review to the VMMC Board of Directors. At the ACC September meeting, management provided the ACC with an initial draft of the Form 990 and the tax return reviewer presented an overview of the Form 990 preparation process. Following the September meeting, the ACC Chair updates the VMMC Board on the Form 990 preparation. In October, a revised draft of the Form 990 is provided to the ACC Chair for further review and comment. The final draft Form 990 is reviewed and approved by the ACC in November, and provided to the VMMC Board for review of the final Form 990 prior to filing. The final Form 990 and 990-T tax returns are provided to each member of the VMMC Board of Directors via electronic delivery by posting on a secure website which allows online viewing of Board documents. Form 990, Part VI, 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 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 Masons behalf related to the disclosed actual or potential Conflict of Interest unless such activity is permitted by the Conflict of Interest Management Plan or until the Covered Person has undertaken all steps set forth in the Management Plan to manage, reduce or eliminate the conflict. All Covered Persons have a duty to disclose the existence of any actual or potential conflict of interest with respect to meeting agenda items. 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 Compensation and Benefits Board Committee, a committee composed solely of independent directors none of whom have a conflict of interest, is accountable for setting reasonable total compensation packages for each executive, including the CEO, officers and key employees Executives consistent with Virginia Masons philosophy and principles. The Board develops and approves annual goals and performance criteria which are used in determining merit increases and variable compensation opportunities for the Virginia Mason Executives. The Committee assesses performance against these goals. The Committee selects and engages a qualified independent compensation consultant to review and analyze the total compensation and benefits packages to the Executives. 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 Virginia Masons compensation philosophy and principles. Consistent with Virginia Masons compensation philosophy and principles, the Committee approves total compensation packages for each of the Executives based on information presented to the Committee, reasonableness and the best interests of Virginia Mason. The Committees decisions regarding compensation for each Executive are documented in written resolutions and minutes of the Committee. The Committee promptly reports its action to the Board whose reports are reflected in the Boards minutes. The Executives that were reviewed in 2015 were Chief Executive Officer, 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 Documents are made available upon request. Form 990, Part XI, Line 9 Additional Pension Adjustment 5,485,058 Capital Transfers - Restricted 6,643. 1000 Madison LLC 1100 Ninth Avenue Seattle WA 98101 204018216 Real Estate WA 1593508 28256521 VMMC 1005 Spring Street LLC 1100 Ninth Avenue Seattle WA 98101 204816736 Real Estate WA 1918784 3971621 VMMC Health Resource Services LLC 1100 Olive Way Seattle WA 98101 262800994 Group Purchasing WA 11084431 25527822 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 9 VMMC true Benaroya Researach Institute at Virginia Mason 1201 Ninth Avenue Seattle WA 98101 910653422 Research WA 501c3 4 VMHS false National Purchasing Partners LLC 1100 Olive Way Seattle WA 98101 203470995 Group Purchasing WA N/A Unrelated 13327462 2096416 false 13326466 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 108173 46593 154766 1024957778 1025112544 920931 230233 0 0 0 Virginia Mason Institute 1100 Ninth Avenue Seattle WA 98101 263763656 0 0 0 6526468 6526468 5863 1466 0 0 0 Virginia Mason Health System 1100 Ninth Avenue Seattle WA 98101 911351110 0 0 0 14005171 14005171 12582 3146 0 0 0 Benaroya Research Institute at Virginia Mason 1100 Ninth Avenue Seattle WA 98101 910653422 0 0 0 67482221 67482221 60624 15156 0 0 0