2016-11-14T19:30:51-06:00 2015-12-31 910189318 Moss Adams LLP 2707 Colby Avenue Suite 801 Everett WA 98201 990 2015-01-01 454789950 Confluence Health CONF 5096621511 1201 South Miller Street Wenatchee WA 98801 PETER D RUTHERFORD MD Chief Executive Officer 5096621511 2016-11-08 1 Robert Grannum P00355876 4252597227 2016-11-08 2015 2017-02-10 21:41:12Z PETER D RUTHERFORD MD 1201 South Miller Street Wenatchee WA 98801 118404414 0 X www.confluencehealth.org X 2012 WA IMPROVING HEALTH BY PROVIDING HIGH-QUALITY CARE IN A COMPASSIONATE AND COST-EFFECTIVE MANNER. 15 14 668 15 0 0 3188890 396482 94254083 117982334 0 0 24503 25598 97467476 118404414 0 241336 0 0 47350148 45427605 0 0 0 50918003 74766331 98268151 120435272 -800675 -2030858 29893527 25432435 29720035 27289801 173492 -1857366 X IMPROVING HEALTH BY PROVIDING HIGH-QUALITY CARE IN A COMPASSIONATE AND COST-EFFECTIVE MANNER. 0 0 90230552 241336 117054168 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. 90230552 1 1 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 1 0 0 1 51 0 1 668 1 0 0 0 0 0 0 0 0 0 0 X 15 14 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 MARC C HEMINGER Chairperson 2.00 2.00 X X 0 0 0 Kristine S Loomis Vice-Chairperson 2.00 2.00 X X 0 0 0 Frank J Kuntz Treasurer 2.00 2.00 X X 0 0 0 David Daniel MD Secretary 2.00 2.00 X X 0 0 0 Toby Bond MD Board of Directors 1.00 2.00 X 0 0 0 Edwin Carmack MD 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 Karen Jackson Board of Directors 1.00 2.00 X 0 0 0 Robert E Justus 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 David W Parks DMD 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 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 Peter Rutherford MD Chief Executive Officer 20.00 20.00 X 631674 0 54703 John R Doyle Chief Financial Officer 20.00 20.00 X 383545 0 48932 JOHN T EVANS Former CEO of CWH through 3/30/12 0.00 0.00 X 0 391015 0 John B Hamilton Former COO of CH 0.00 0.00 X 183763 0 14300 Richard L Canning Former COO of CH through 4/1/15 3.75 6.25 X 495923 0 23694 James B Wood Chief Administrative Officer 20.00 20.00 X 288285 0 32453 STUART D FREED MD Chief Medical Officer 20.00 20.00 X 410057 0 48668 Robert Pageler Chief information Officer 20.00 20.00 X 276981 0 34042 Tracey A Kasnic RN Chief Nursing Officer 20.00 20.00 X 288566 0 46132 Vikki Noyes Chief Operating Officer 20.00 20.00 X 157136 0 6548 Jay H Johnson Senior VP of Network Strategy 20.00 20.00 X 311347 0 51088 Peter N Lolos Senior VP of Facilities & Support Services 20.00 20.00 X 208730 0 34789 Glenn Adams Senior VP of Ancillary Services 20.00 20.00 X 134260 74339 39716 Jeanine Allen Senior VP of Specialty Care 10.00 30.00 X 88480 76360 33671 Jeanette Wood Senior VP of Primary Care 10.00 30.00 X 86607 85716 24579 Steven R Jacobs VP of Finance 20.00 20.00 X 242201 0 29442 Jeffrey Davis VP of Business Development 20.00 20.00 X 203744 0 33632 Kevin Gilbert VP of Perioperative 20.00 20.00 X 195179 0 36842 Cory Ferari-Zimmerman VP of Finance 20.00 20.00 X 191559 0 19653 Richard S Bennett VP of Quality 20.00 20.00 X 182929 0 43673 4960966 627430 656557 49 1 1 1 Advisory Board Company PO BOX 79461 BALTIMORE MD 21279 Consulting services 813786 Moss Adams LLP PO Box 748369 Los Angeles CA 90074 Auditing & Consluting 389136 PRESS GANEY ASSOCIATES INC PO BOX 88335 MILWAUKEE WI 53288 consulting services 371569 KRS TECH LLC 1102 BELLEVUE WAY SE APT 3 BELLEVUE WA 98004 IT Consulting 370778 RAPID7 LLC PO BOX 347377 PITTSBURGH PA 15251 IT Services 280820 18 313809 82673 396482 Management Services 541610 62489420 62489420 Managed Care 541610 54990966 54990966 Other Operating INcome 900099 299701 299701 Copy Center Income 900099 202247 202247 117982334 25598 0 25598 25598 25598 118404414 117780087 0 227845 241336 241336 4210277 2947194 1263083 137919 96543 41376 32336843 22635790 9701053 1303006 912104 390902 4592230 3214561 1377669 2847330 1993131 854199 510301 153090 357211 319027 319027 88627 62039 26588 2239607 1567724 671883 301466 211026 90440 2248658 1574061 674597 5564899 3895429 1669470 482456 434210 48246 1182604 1064344 118260 1798892 1619003 179889 691260 691260 Managed Care Claim Expe 57827114 46097547 11729567 State Excise Tax 1511420 1511420 120435272 90230552 30204720 0 7538717 4872379 10700401 4233575 1815747 2498432 12606386 2778337 7838662 9828049 2000000 4000000 29893527 25432435 29720035 27289801 29720035 27289801 X 173492 -1857366 173492 -1857366 29893527 25432435 -2030858 0 X 0 1 X 1 0 X X X 2 WENATCHEE VALLEY HOSPITAL 455563741 3 1 28120239 0 CENTRAL WASHINGTON HEALTH SERVICES 910171250 3 1 34369181 0 2 62489420 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 parties. RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED 0 0 0 0 0 0 0 0 1 88627 88627 0 Part II-B, Line 1: $88,627 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. 370902 45754 325148 8787412 2732583 6054829 3448072 3448072 9828049 Investment in Health Alliance NW 4000000 4000000 X Part X, Line 2: The Health System is formed as three separate not-for-profit corporation 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 taxable 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, 2015 and 2014, the Health System had no uncertain tax positions requiring accrual. 1 United Way PO Box 488 Wenatchee WA 98807 910657766 501(c)(3) 50816 General Support Outdoor Discovery Network 2332 Westview Drive Wenatchee WA 98801 260691476 501(c)(3) 37520 General Support Wenatchee Downtown Association 103 Palouse St Suite 35 Wenatchee WA 98801 910823589 501(c)(3) 30000 General Support Wenatchee Valley College 1300 Fifth St Wenatchee WA 98801 910817705 501(c)(3) 20000 General Support Wenatchee Valley Humane Society 1474 S Wenatchee Ave Wenatchee WA 98801 910838299 501(c)(3) 20000 General Support Wenatchee Valley Symphony Orchestra PO Box 3423 Wenatchee WA 98807 237108001 501(c)(3) 15000 General Support Confluence Health Foundation 518 N Chelan Ave Wenatchee WA 98801 911075950 501(c)(3) 21000 General Support Women's Resource Center PO Box 2051 Wenatchee WA 98807 911109429 501(c)(3) 11000 General Support Wenatchee Museum and Cultural Center 127 S Mission St Wenatchee WA 98801 916054055 501(c)(3) 10000 General Support Chelan Douglas Land Trust 18 N Wenatchee Ave Wenatchee WA 98801 911331348 501(c)(3) 10000 General Support Moses Lake Food Bank PO Box 683 Moses Lake WA 98837 910664984 501(c)(3) 6000 General Support Wenatchee North Rotary PO Box 1702 Wenatchee WA 98807 237014345 501(c)(3) 5000 General Support Community Foundation of NCW 9 South Wenatchee Ave Wenatchee WA 98801 911349486 501(c)(3) 5000 General Support 13 0 Part I, Line 2: Outside organizations submit request 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 committee's review the requests based on the monetary value of the request. X X X 1 0 0 1 1 0 0 0 0 Peter Rutherford MD Chief Executive Officer 558074 0 73600 0 0 0 28800 0 25903 0 686377 0 0 0 John R Doyle Chief Financial Officer 383495 0 50 0 0 0 24900 0 24032 0 432477 0 0 0 JOHN T EVANS Former CEO of CWH through 3/30/12 0 391015 0 0 0 0 0 0 0 0 0 391015 0 391015 John B Hamilton Former COO of CH 183763 0 0 0 0 0 14300 0 0 0 198063 0 183763 0 Richard L Canning Former COO of CH through 4/1/15 118981 0 20000 0 356942 0 16151 0 7543 0 519617 0 0 0 James B Wood Chief Administrative Officer 288235 0 50 0 0 0 10600 0 21853 0 320738 0 0 0 STUART D FREED MD Chief Medical Officer 410057 0 0 0 0 0 28469 0 20199 0 458725 0 0 0 Robert Pageler Chief information Officer 276931 0 50 0 0 0 10600 0 23442 0 311023 0 0 0 Tracey A Kasnic RN Chief Nursing Officer 288516 0 50 0 0 0 26126 0 20006 0 334698 0 0 0 Vikki Noyes Chief Operating Officer 157086 0 50 0 0 0 0 0 6548 0 163684 0 0 0 Jay H Johnson Senior VP of Network Strategy 311297 0 50 0 0 0 29256 0 21832 0 362435 0 0 0 Peter N Lolos Senior VP of Facilities & Support Se 208680 0 50 0 0 0 23752 0 11037 0 243519 0 0 0 Glenn Adams Senior VP of Ancillary Services 134210 74339 50 0 0 0 16505 3099 11459 8653 162224 86091 0 0 Jeanine Allen Senior VP of Specialty Care 88430 76360 50 0 0 0 13887 3181 6919 9684 109286 89225 0 0 Jeanette Wood Senior VP of Primary Care 86607 85716 0 0 0 0 14892 3513 3975 2199 105474 91428 0 0 Steven R Jacobs VP of Finance 242151 0 50 0 0 0 25351 0 4091 0 271643 0 0 0 Jeffrey Davis VP of Business Development 203694 0 50 0 0 0 8550 0 25082 0 237376 0 0 0 Kevin Gilbert VP of Perioperative 195129 0 50 0 0 0 20739 0 16103 0 232021 0 0 0 Cory Ferari-Zimmerman VP of Finance 191509 0 50 0 0 0 0 0 19653 0 211212 0 0 0 Richard S Bennett VP of Quality 182879 0 50 0 0 0 17720 0 25953 0 226602 0 0 0 Part I, Line 4a Richard L. Canning received $356,942 of severance pay. Part I, Line 5 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) will be contributed to the employee's accounts. The percentage is based on employee classification and length of service. 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 2015 was $458,725. Carolyn Arthur Family Member of Dr. David Daniel, Board Secretary 33427 Employment 0 Steven Wood Family Member of Jeanette Wood, Sr. VP of Primary Care 104492 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 ORGNANIZATIONS. ADDITIONALLY, SOME BOARD MEMBERS ARE ALSO MINORITY OWNERS IN A JOINT VENTURE WITH OWNERSHIP LESS THAN THE REPORTING THRESHOLD. Form 990, Part VI, Section B, line 11 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 In 2015, 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 1 0 1 0 0 0 0 0 0 0 0 1 0 0 0 0 1 0 0 Wenatchee Valley Hospital L 28120239 Cost Allocation Central Washington Health Services L 34369181 Cost Allocation Wenatchee Valley Hospital C 313809 Cash