2015-10-20T15:10:50-05:00 2014-12-31 861065772 DELOITTE TAX LLP 655 WEST BROADWAY SUITE 700 SAN DIEGO CA 921018590 990 2014-01-01 264146730 GARY AND MARY WEST HEALTH INSTITUTE GARY 8585357000 10350 NORTH TORREY PINES ROAD LA JOLLA CA 92037 MICHAEL CAPONETTO CFO 8585357000 2015-10-20 1 DIANA J MCCUTCHEN P00545657 6192326500 2014 2016-02-25 16:41:14Z SHELLEY LYFORD 10350 NORTH TORREY PINES ROAD LA JOLLA CA 92037 9374089 0 X WWW.WESTHEALTH.ORG X 2009 DE CONDUCTING MEDICAL RESEARCH WITH HOSPITALS TO REDUCE HEALTHCARE COSTS. 6 4 60 5 0 0 8349543 9029124 0 0 42091 91956 190585 253009 8582219 9374089 0 0 0 0 9970974 8354959 0 0 0 11467669 10560603 21438643 18915562 -12856424 -9541473 26610241 15259994 4867849 2375637 21742392 12884357 X THE GARY AND MARY WEST HEALTH INSTITUTE ("THE INSTITUTE") IS A MEDICAL RESEARCH ORGANIZATION LAUNCHED IN 2009. THE INSTITUTE'S MISSION IS TO PIONEER NEW AND SMARTER TECHNOLOGIES, POLICIES AND PRACTICES TO MAKE HIGH-QUALITY HEALTHCARE MORE ACCESSIBLE AT A LOWER COST TO ALL AMERICANS. THE INSTITUTE PURSUES MEDICAL RESEARCH TO DEVELOP INNOVATIVE SOLUTIONS, AND ENGAGES COLLABORATORS (INCLUDING THE HOSPITALS LISTED IN SCHEDULE A) TO DISRUPT THE PROCESS OF HEALTH CARE DELIVERY TO LOWER THE COST OF PROVIDING HEALTH CARE. THE INSTITUTE'S STRATEGIC FOCUS IS IN THE AREAS OF CARE DELIVERY AND PAYMENT, CARE COORDINATION AND OVERUTILIZATION. 0 0 11937453 IN 2014, THE GARY AND MARY WEST HEALTH INSTITUTE (INSTITUTE) ACTIVELY CONDUCTED MEDICAL RESEARCH, IN CONJUNCTION WITH THE HOSPITALS LISTED ON SCHEDULE A, IN THE FIELD OF BIOMEDICAL ENGINEERING. THIS RESEARCH INVOLVED THE USE OF MEDICALLY-RELATED TECHNOLOGIES, PROCESSES AND PRACTICES TO PIONEER NEW AND SMARTER APPROACHES TO CARE DELIVERY AND PAYMENT AND CARE COORDINATION, AS WELL AS ADDRESSING OVERUTILIZATION, WHICH COMBINED, COST OUR NATION CLOSE TO $500 BILLION A YEAR. THE ULTIMATE OBJECTIVE FOR SUCH RESEARCH IS TO INTRODUCE SAFE, EFFECTIVE AND LESS COSTLY MEANS FOR DELIVERING HIGH-QUALITY HEALTHCARE TO ALL AMERICANS. THE INSTITUTE HAD THE FOLLOWING ACTIVE RESEARCH FOCUS AREAS:1. AUTOMATED, CONNECTED AND COORDINATED CARE, WHICH LOWERS HEALTHCARE COSTS BY DELIVERING CARE AT HOME OR IN THE MOST OPTIMUM SETTING TO PREVENT MORE EXPENSIVE, HOSPITAL-BASED EVENTS; 2. SENIOR CARE, WHICH IS ESSENTIAL TO LOWERING HEALTHCARE COSTS AS THE CHRONIC FRAIL ELDERLY ARE A SIGNIFICANT GROWING POPULATION WITH UNSUSTAINABLE HEALTHCARE EXPENDITURES; AND3. INTEROPERABILITY, WHICH IS A NECESSARY ELEMENT TO LINK ALL POINTS OF CARE, FACILITATE SEAMLESS DATA FLOW AND IMPROVE PATIENT SAFETY.THE FOLLOWING IS AN OVERVIEW OF THE INSTITUTE'S RESEARCH PROJECTS:1. AUTOMATED, CONNECTED AND COORDINATED CAREA) SENSE4BABY DEVICE: RESEARCHED AND DEVELOPED BY THE INSTITUTE IN 2010, SENSE4BABY IS A NON-INVASIVE WIRELESS FETAL AND MATERNAL MONITORING DEVICE THAT CAN BE DEPLOYED ANYWHERE THERE IS A WIRELESS SIGNAL. THE DEVICE HAS THE POTENTIAL TO LOWER THE COST OF CARE THROUGH COST-EFFECTIVE TECHNOLOGIES, EARLY DETECTION OF RISK FOR PRE-TERM LABOR AND OTHER COMPLICATIONS, AND BY TRANSFERRING THE SITE OF CARE FROM THE HOSPITAL TO THE HOME. IN 2013, THE INSTITUTE COMPLETED ITS RESEARCH STUDIES AT SCRIPPS CLINIC AND WITH THE CARLOS SLIM HEALTH INSTITUTE IN MEXICO AND LICENSED THE SENSE4BABY TECHNOLOGY, ON AN EXCLUSIVE BASIS, TO A RELATED ENTITY, SENSE4BABY, INC. IN 2014, AIRSTRIP TECHNOLOGIES ACQUIRED THE ASSETS OF SENSE4BABY, INC. AND THE INSTITUTE ENTERED INTO A NEW LICENSE AGREEMENT WITH THE ACQUIRING ENTITY. THE SENSE4BABY STUDY ANALYSIS, "IMPROVING PERINATAL CARE IN THE RURAL REGIONS WORLDWIDE BY WIRELESS ENABLED ANTEPARTUM FETAL MONITORING - A DEMONSTRATION PROJECT," WRITTEN IN COLLABORATION WITH THE CARLOS SLIM HEALTH INSTITUTE TEAM, WAS ACCEPTED FOR PUBLICATION IN THE FIRST QUARTER OF 2015 IN THE INTERNATIONAL JOURNAL OF TELEMEDICINE AND APPLICATIONS.B) EMMERSIV AUTISM RESEARCH PROJECT: IN 2013, THE INSTITUTE BEGAN DEVELOPMENT OF A SOFTWARE PROTOTYPE, USING THE MICROSOFT KINECT GAMING PLATFORM, TO ASSIST THERAPISTS IN DELIVERING CLINICALLY-PROVEN APPLIED BEHAVIOR ANALYSIS (ABA) THERAPY TO CHILDREN WITH AUTISM. IN 2014, THE INSTITUTE ENTERED A COLLABORATION WITH RADY CHILDREN'S HOSPITAL SAN DIEGO, TO RESEARCH A SUPPLEMENTAL BEHAVIORAL THERAPY SOFTWARE SOLUTION BUILT ON MICROSOFT'S KINECT FOR WINDOWS PLATFORM. USING 'EXERGAMING' TO MOTIVATE BEHAVIORAL THERAPY FOR AUTISM, THE RESEARCH GOAL IS TO DELIVER A LOWER-COST MOTIVATIONAL SOFTWARE SOLUTION THAT CAN BE USED AS PART OF CURRENT STANDARDS OF PRACTICE FOR AUTISM THERAPY. IN 2015, THE RESEARCH TEAM'S ETHNOGRAPHIC STUDY RESEARCH FINDINGS WERE SUBMITTED TO AN AUTISM RESEARCH JOURNAL IN ORDER TO SHARE THE INSTITUTE'S LEARNINGS WITH THE AUTISM RESEARCH COMMUNITY AT-LARGE.C) WESTECH: THE INSTITUTE LAUNCHED THIS RESEARCH PROJECT IN 2013 TO EXPLORE THE FEASIBILITY OF AUTOMATING CARE COORDINATION IN A SAFE, HIGH-QUALITY, AND COST EFFECTIVE MANNER IN COLLABORATION WITH VANDERBILT UNIVERSITY MEDICAL CENTER, A NOT-FOR-PROFIT HOSPITAL, AND WEST CORPORATION, A TELECOMMUNICATIONS COMPANY. CONTINUING THROUGH 2014, THE INSTITUTE RESEARCHED HOW CONTINUOUSLY MONITORING HEALTH STATUS, AND PROVIDING ITERATIVE FEEDBACK TO PATIENTS IN THE FORM OF SUBTLE VARIATIONS IN BEHAVIOR, DOSAGES OF MEDICATIONS OR SPECIFIC TREATMENTS, CAN HELP MANAGE CHRONIC DISEASE WITH AN UNPRECEDENTED LEVEL OF CARE AND AVOID COSTLY HOSPITAL INTERVENTIONS. THIS MEDICAL RESEARCH INVOLVED DEVELOPING A TECHNOLOGY PLATFORM PROTOTYPE, CARE COORDINATION PROTOCOLS AND WORKFLOWS. IN SEPTEMBER 2014, THE WESTECH TECHNOLOGY WAS LICENSED, ON A NON-EXCLUSIVE BASIS, TO A RELATED ENTITY, WESTECH, INC. AFTER CAREFUL REVIEW AND CONSIDERATION, AND PRIMARILY DUE TO THE LEVEL OF START-UP CAPITAL REQUIRED AND THE NEED TO QUICKLY SCALE, THE INSTITUTE DETERMINED THAT A TECHNOLOGY LICENSE TO A NEW COMMERCIAL ENTITY WAS THE BEST WAY TO SERVE THE PUBLIC INTEREST. THE COLLABORATION WITH VANDERBILT CONTINUED WITH THE NEW ENTITY.D) EMERGENCY DEPARTMENT TO HOME: INITIATED IN 2013, THE INSTITUTE LAUNCHED A RESEARCH STUDY IN 2014 WITH THE UNIVERSITY OF CALIFORNIA, SAN DIEGO (UCSD) DEPARTMENT OF EMERGENCY MEDICINE. EARLY ANALYSIS INDICATES A KNOWLEDGE AND WILLINGNESS BY EMERGENCY PHYSICIANS TO DIVERT APPROPRIATE PATIENTS TO HOME HEALTH IF A STREAMLINED PROCESS WERE IN PLACE, THEREBY REDUCING COSTS. INTERVIEWS AND FOCUS GROUPS WERE CONDUCTED WITH VARIOUS STAKEHOLDERS AND AN IMPACT PLAN WAS DEVELOPED. SITE VISITS TO STUDY BEST PRACTICES WERE COMPLETED AT THE CINCINNATI VETERANS' AFFAIRS AND PRESBYTERIAN HEALTH SYSTEM IN ALBUQUERQUE. BASELINE DATA FOR MEASURING EMERGENCY DEPARTMENT TO HOME HEALTH ADOPTION WAS INITIATED VIA MEDICARE CLAIMS DATA AND EMERGENCY PHYSICIAN PRACTICES THROUGH ENGAGEMENT WITH THE AMERICAN COLLEGE OF EMERGENCY PHYSICIANS. THE PRELIMINARY ASSESSMENT FOR THE FEASIBILITY STUDY COMMENCED WITH POTENTIAL COLLABORATORS, INCLUDING UCSD, GEISINGER HEALTH SYSTEM AND PRESBYTERIAN HOSPITAL.2. SENIOR CAREA) HOME-BASED PRIMARY CARE: IN COLLABORATION WITH MEDSTAR WASHINGTON HOSPITAL CENTER, THE INSTITUTE EMBARKED ON MEDICAL RESEARCH TO EXPLORE NEW CARE DELIVERY AND PAYMENT MODELS TO DELIVER HOME-BASED PRIMARY CARE TO COST-CRITICAL POPULATIONS. THE INSTITUTE ALSO EXPLORED A NOVEL CARE DELIVERY MODEL FOR THE FRAIL ELDERLY POPULATION, SPECIFICALLY FOCUSING ON THE TECHNOLOGIES, POLICIES AND PRACTICES NEEDED FOR WIDESPREAD SUSTAINABILITY AND SCALABILITY. 3. INTEROPERABILITYA) ICU CONSORTIUM RESEARCH FEASIBILITY STUDY: THE INSTITUTE, IN CONJUNCTION WITH BETH-ISRAEL DEACONESS CONSORTIUM (BIDC), COMPLETED A THOROUGH DATA ANALYSIS ON PATIENT SAFETY IN THE BIDC SYSTEM OF HOSPITALS BETWEEN JANUARY 2011 AND JUNE 2014. THIS INCLUDED A REVIEW OF THE ROOT CAUSE ANALYSES IN THE MORE SERIOUS HARM CASES. ALL OF THE CASES WERE EVALUATED TO DETERMINE POTENTIAL PREVENTABILITY OF ADVERSE MEDICAL EVENTS IF INTEROPERABLE DEVICES OR EMR SYSTEMS WERE IN PLACE. THE STUDY'S FINDINGS CONCLUDED THAT THERE IS A GREAT NEED FOR INTEROPERABLE MEDICAL DEVICES THAT ARE INTEGRATED WITH EVOLVED, INTEGRATED EMR SYSTEMS. AS A FOLLOW-UP, THE INSTITUTE COLLABORATED WITH BETH ISRAEL DEACONESS MEDICAL CENTER, INC. TO DETERMINE THE BEST WAY TO ENSURE THAT THE RIGHT MEDICINE IS IN THE INFUSION PUMP, AND THAT IT IS BEING GIVEN AT THE RIGHT DOSE TO THE RIGHT PATIENT. THIS INVOLVES INTEROPERABILITY BETWEEN CLINICAL ORDER, PHARMACY AND THE INFUSION PUMP, WITH A NEEDED CONFIRMATION OF MATCHING BETWEEN THE PATIENT, DRUG AND DOSE AT THE LEVEL OF THE INFUSION PUMP. THIS ALSO INCLUDED EXPLORATION AS TO WHAT TECHNOLOGIES EXIST TO ARRIVE AT A TESTABLE SOLUTION.B) NURSES SURVEY ON INTEROPERABILITY: UNCOORDINATED MEDICAL DEVICES CONSUME AN ENORMOUS AMOUNT OF PRECIOUS CLINICIAN TIME, REQUIRING MANUAL DATA ENTRY OF PATIENT REPORTED INFORMATION, OFTEN WITH SKILLED CLINICIANS FILLING THE ROLE OF SCRIBE. THIS TIME-INTENSIVE WORK INTERRUPTS PATIENT CARE AND CONTRIBUTES TO ALARM FATIGUE. IT CAN ALSO LEAD TO MEDICAL ERRORS - THE THIRD LEADING CAUSE OF DEATH IN THE UNITED STATES. AS PART OF THE INSTITUTE'S EFFORTS TO QUANTIFY THE EFFECT OF THE LACK OF INTEROPERABILITY ON PATIENT SAFETY AND COSTS, THE TEAM WORKED ON FINALIZING A NATIONAL SURVEY OF MORE THAN 500 CRITICAL CARE NURSES. THE RESEARCH TEAM ENGAGED WITH, AND OBTAINED FEEDBACK FROM, KEY CRITICAL CARE NURSES AND NATIONAL NURSING ORGANIZATIONS ON THE CONTENT OF THE SURVEY IN ORDER TO DETERMINE THEIR EXPERIENCES WITH MEDICAL DEVICES AND TECHNOLOGY AND HOW THE LACK OF INTEROPERABILITY IMPACTS THEIR JOBS AND ABILITY TO CARE FOR PATIENTS ON A DAILY BASIS.RESEARCH HYPOTHESIS: SURVEY WILL AFFIRM THE IMPACT OF THE LACK OF MEDICAL DEVICE INTEROPERABILITY ON NURSES' TIME AND ATTENTION AND THEIR PERCEPTION OF RELATED PATIENT HARMS. THE SURVEY LAUNCHED IN EARLY 2015. 409975 TO SUPPLEMENT AND BROADEN THE INSTITUTE'S MEDICAL RESEARCH ACTIVITIES, THE INSTITUTE ALSO PARTICIPATED IN PUBLIC EDUCATION AND THE DISSEMINATION OF RESEARCH FINDINGS TO THOSE INTERESTED IN REDUCING THE COST OF HEALTHCARE SERVICES. THE INSTITUTE HAS PROMOTED THE ACCEPTANCE, APPROVAL AND IMPLEMENTATION OF MEDICAL DEVICE INTEROPERABILITY, HOME HEALTH SERVICES, ETC., THROUGH SEMINARS, PRESENTATIONS AND DIRECT COMMUNICATIONS WITH REGULATORY OFFICIALS. THE INSTITUTE ALSO HAD AN INNOVATOR-IN-RESIDENCE AT THE FEDERAL GOVERNMENT'S DEPT. OF HEALTH AND HUMAN SERVICES AND WORKED CLOSELY WITH THE OFFICE OF THE NATIONAL COORDINATOR FOR HEALTH IT REGARDING SIMILAR INITIATIVES. 12347428 1 1 0 1 0 0 0 0 0 0 1 1 0 0 1 1 1 0 0 0 0 0 0 0 0 0 0 0 0 1 0 1 0 0 0 0 0 1 0 0 0 0 0 1 0 0 0 1 57 0 1 60 1 0 0 0 0 0 0 0 0 0 0 0 X 6 4 1 1 0 0 1 1 1 1 1 0 0 1 1 1 1 1 1 1 1 0 CA DE X SALLY HALLAK 8585357000 10350 NORTH TORREY PINES ROAD LA JOLLA CA 92037 X GARY L WEST DIRECTOR/CHAIRMAN 15.00 5.00 X 0 0 0 MICHAEL JOHNS MD DIRECTOR 10.00 5.00 X 0 0 0 CHARLES SEDERSTROM DIRECTOR 5.00 0.00 X 0 0 0 JAMES HASSON JD DIRECTOR 10.00 5.00 X 0 0 0 NICHOLAS J VALERIANI CHIEF EXECUTIVE OFFICER, DIRECTOR 40.00 10.00 X X 1569076 389000 17443 MARK MCCLELLAN DIRECTOR 10.00 5.00 X 0 0 0 JOSEPH M SMITH PHD FACC CHIEF MEDICAL OFFICER, CSO 40.00 18.00 X 2456009 389000 41029 SHELLEY M LYFORD CHIEF OPERATING OFFICER/SECRETARY 40.00 25.00 X 0 707235 8917 RICHARD DAKERS EVP BUS DEV/CHIEF STRATEGY OFFICER 40.00 10.00 X 0 604265 21482 MICHAEL CAPONETTO CHIEF FINANCIAL OFFICER / TREASURER 40.00 15.00 X 0 923421 38697 MARY ELLEN CIAFARDINI VICE PRESIDENT, HUMAN RESOURCES 50.00 0.00 X 0 205112 35165 CHRIS COSTA MBA JD GENERAL COUNSEL 50.00 0.00 X 0 359862 36174 DR ZIA AGHA EVP CLINICAL RESEARCH AND MEDICAL INFORMATICS 50.00 0.00 X 319583 0 30017 VALERIE VOLPE SENIOR DIRECTOR, ADVOCACY 50.00 0.00 X 0 375238 15496 NANCY IVES SCHROEDER SENIOR DIRECTOR, COMMUNICATIONS 50.00 0.00 X 0 168505 30373 TIMOTHY LASH VICE PRESIDENT 50.00 0.00 X 0 351082 38355 SCOTT CASSIDY VICE PRESIDENT 50.00 0.00 X 426655 0 24433 RODGER CURRIE VICE PRESIDENT 10.00 50.00 X 0 528746 14156 FREEMAN ROSE VICE PRESIDENT 50.00 0.00 X 282936 0 28680 JAMES TYRRELL-KNOTT VICE PRESIDENT 50.00 0.00 X 277184 0 33154 SUNITHA BASKARAN VICE PRESIDENT 50.00 0.00 X 330829 0 18806 DAVID CANTIN VICE PRESIDENT 50.00 0.00 X 274600 0 27025 STEPHANIE FAGAN-OEY VICE PRESIDENT 50.00 0.00 X 0 223965 19748 CHRISTOPHER CROWLEY SR. SYSTEM ENGINEER, BD 50.00 0.00 X 198562 0 23169 MITUL SHAH SR. DIRECTOR, PROGRAMS & PARTNERSHIPS 50.00 0.00 X 191893 0 34735 RICHARD LANE TECHNICAL DIRECTOR, DATA SCIENCE 50.00 0.00 X 196250 0 27549 AMNON PTASHEK ENGINEERING MNGR, SOFTWARE ARCHITECH 50.00 0.00 X 203969 0 31397 HUGH MOLESWORTH PRINCIPAL SOSTWARE ENGINEER 50.00 0.00 X 167404 0 15017 6894950 5225431 611017 43 0 1 0 TOGORUN LLC PO BOX 775159 ST LOUIS MO 63177 STATEGIC ANALYSIS 517900 WEST DEVELOPMENT LLC 5796 ARMADA DRIVE STE 300 CARLSBAD CA 920084694 IT SUPPORT 186238 O'MELVENY & MYERS LLP PO BOX 894436 LOS ANGELES CA 901894436 LEGAL SERVICE 128744 3 9000000 29124 9029124 91956 91956 9575 9575 181208 0 181208 181208 181208 LICENSE FEES 900099 50000 50000 SPEAKER FEES 900099 12226 12226 62226 9374089 0 0 344965 X 5052721 3871528 1181193 2490112 2490112 108124 123995 -15871 348022 344209 3813 355980 355303 677 4085732 1715927 2369805 125359 55015 70344 39079 39079 166693 166693 2197406 1125999 1071407 22845 5557 17288 465424 104429 360995 1426695 1477431 -50736 293232 192242 100990 40932 34228 6704 1137947 45434 1092513 132954 86174 46780 RECRUITING & RETENTION 143981 28108 115873 TELECOMMUNICATIONS 115670 25118 90552 SUBSCRIPTIONS & PUBLICA 73085 57734 15351 EQUIPMENT AND SUPPLIES 69579 38493 31086 23990 3699 20291 18915562 12347428 6568134 0 156996 332833 9362645 8075189 10299705 0 294618 168802 1006497 1442386 8518703 6696969 2912497 1821734 2410313 3093750 183330 166970 141970 26610241 15259994 3395369 1403037 1472480 972600 4867849 2375637 X 11413563 12884357 10328829 0 0 21742392 12884357 26610241 15259994 -9541473 683438 0 X 0 1 X 1 0 X BETH ISRAEL DEACONESS MEDICAL CENTER BOSTON MA GEISINGER HEALTH SYSTEM DANVILLE PA MASSACHUSETTS GENERAL HOSPITAL BOSTON MA MEDSTAR WASHINGTON HOSPITAL CENTER WASHINGTON DC PRESBYTERIAN HOSPITAL ALBUQUERQUE NM RADY CHILDREN'S HOSPITAL - SAN DIEGO SAN DIEGO CA SCRIPPS CLINICAL RESEARCH SERVICES LA JOLLA CA UC REGENTSUNIVERSITY OF CALIFORNIA SAN DIEGO LA JOLLA CA VANDERBILT UNIVERSITY MEDICAL CENTER NASHVILLE TN RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED 166693 166693 18748869 18915562 1000000 250000 0 0 1000000 1000000 1000000 1000000 4000000 6000000 36000 95000 63034 166693 360727 250000 250000 250000 250000 1000000 1500000 0 5474915 4003585 1471330 1629966 1525411 104555 1413822 1167973 245849 1821734 COMMON STOCK - 93,750 SHARES IN WSTC DONATED IN 2009 3093750 F 3093750 DEFERRED RENT 611843 LEASE INCENTIVE LIABILITY 360757 972600 X 10057527 683438 683438 9374089 0 9374089 18915562 0 18915562 0 18915562 PART X, LINE 2: THE INSTITUTE IS EXEMPT FROM INCOME TAXES UNDER SECTION 501(C)(3) OF THE INTERNAL REVENUE CODE AND THE CORRESPONDING SECTIONS OF THE CALIFORNIA REVENUE AND TAXATION CODE EXCEPT FOR TAXES ON NET UNRELATED BUSINESS INCOME. SINCE THE INSTITUTE HAD NO OBLIGATION FOR UNRELATED BUSINESS INCOME TAX FOR THE YEARS ENDED DECEMBER 31, 2014 AND 2013, NO PROVISIONS FOR FEDERAL OR STATE INCOME TAXES HAVE BEEN MADE. IN JULY 2006, THE FINANCIAL ACCOUNTING STANDARDS BOARD ("FASB") ISSUED ACCOUNTING STANDARDS CODIFICATION ("ASC") 740, ACCOUNTING FOR UNCERTAINTY IN INCOME TAXES, WHICH CLARIFIES THE ACCOUNTING FOR UNCERTAINTY IN INCOME TAXES RECOGNIZED IN AN ENTITY'S FINANCIAL STATEMENTS AND PRESCRIBES A THRESHOLD OF MORE-LIKELY THAN-NOT FOR RECOGNITION OF TAX BENEFITS OF UNCERTAIN TAX POSITIONS TAKEN OR EXPECTED TO BE TAKEN IN A TAX RETURN. FASB ASC 740 ALSO PROVIDES RELATED GUIDANCE ON MEASUREMENT, DERECOGNITION, CLASSIFICATION, INTEREST AND PENALTIES, AND DISCLOSURE. THE INSTITUTE HAS APPLIED FASB ASC 740 TO ALL TAX POSITIONS FOR WHICH THE STATUTE OF LIMITATIONS REMAINED OPEN AND DETERMINED THERE WERE NO MATERIAL UNRECOGNIZED TAX BENEFITS. IN ADDITION, THERE HAVE BEEN NO MATERIAL CHANGES IN UNRECOGNIZED BENEFITS SINCE JULY 1, 2008, NOR ARE ANY ANTICIPATED IN THE NEXT TWELVE MONTHS. THERE HAVE BEEN NO RELATED TAX PENALTIES OR INTEREST, WHICH WOULD BE CLASSIFIED AS TAX EXPENSE IN THE STATEMENT OF ACTIVITIES. GENERALLY, THE INSTITUTE'S RETURNS OF ORGANIZATIONS EXEMPT FROM INCOME TAX ARE SUBJECT TO EXAMINATION BY THE INTERNAL REVENUE SERVICE AND STATE TAXING AUTHORITIES FOR THREE TO FOUR YEARS, RESPECTIVELY, AFTER THE RETURNS ARE FILED. THERE ARE NO RETURNS UNDER EXAMINATION AS OF DECEMBER 31, 2014. X 1 1 X X X X X X 1 1 0 0 0 0 0 1 1 1 NICHOLAS J VALERIANI CHIEF EXECUTIVE OFFICER, DIRECTOR 1050028 125000 500000 264000 19048 0 14045 0 3398 0 1586519 389000 0 0 JOSEPH M SMITH PHD FACC CHIEF MEDICAL OFFICER, CSO 751961 125000 1685000 264000 19048 0 13000 0 28029 0 2497038 389000 1500000 0 SHELLEY M LYFORD CHIEF OPERATING OFFICER/SECRETARY 0 525422 0 164000 0 17813 0 8917 0 0 0 716152 0 0 RICHARD DAKERS EVP BUS DEV/CHIEF STRATEGY OFFICER 0 513217 0 72000 0 19048 0 13000 0 8482 0 625747 0 0 MICHAEL CAPONETTO CHIEF FINANCIAL OFFICER / TREASURER 0 533561 0 372000 0 17860 0 13000 0 25697 0 962118 0 0 MARY ELLEN CIAFARDINI VICE PRESIDENT, HUMAN RESOURCES 0 176435 0 28000 0 677 0 10462 0 24703 0 240277 0 0 CHRIS COSTA MBA JD GENERAL COUNSEL 0 309635 0 50000 0 227 0 12187 0 23987 0 396036 0 0 DR ZIA AGHA EVP CLINICAL RESEARCH AND MEDICAL IN 301667 0 0 0 17916 0 11667 0 18350 0 349600 0 0 0 VALERIE VOLPE SENIOR DIRECTOR, ADVOCACY 0 308891 0 65000 0 1347 0 0 0 15496 0 390734 0 0 NANCY IVES SCHROEDER SENIOR DIRECTOR, COMMUNICATIONS 0 150315 0 18000 0 190 0 7320 0 23053 0 198878 0 0 TIMOTHY LASH VICE PRESIDENT 0 275831 0 75000 0 251 0 13845 0 24510 0 389437 0 0 SCOTT CASSIDY VICE PRESIDENT 265976 0 130000 0 30679 0 7150 0 17283 0 451088 0 0 0 RODGER CURRIE VICE PRESIDENT 0 262644 0 135000 0 131102 0 1100 0 13056 0 542902 0 0 FREEMAN ROSE VICE PRESIDENT 214809 0 42500 0 25627 0 13000 0 15680 0 311616 0 0 0 JAMES TYRRELL-KNOTT VICE PRESIDENT 201370 0 40000 0 35814 0 12121 0 21033 0 310338 0 0 0 SUNITHA BASKARAN VICE PRESIDENT 194926 0 24600 0 111303 0 9508 0 9298 0 349635 0 0 0 DAVID CANTIN VICE PRESIDENT 164434 0 18800 0 91366 0 10129 0 16896 0 301625 0 0 0 STEPHANIE FAGAN-OEY VICE PRESIDENT 0 163416 0 57500 0 3049 0 6720 0 13028 0 243713 0 0 CHRISTOPHER CROWLEY SR. SYSTEM ENGINEER, BD 182557 0 15300 0 705 0 8879 0 14290 0 221731 0 0 0 MITUL SHAH SR. DIRECTOR, PROGRAMS & PARTNERSHIP 169737 0 22000 0 156 0 6500 0 28235 0 226628 0 0 0 RICHARD LANE TECHNICAL DIRECTOR, DATA SCIENCE 172695 0 23200 0 355 0 3347 0 24202 0 223799 0 0 0 AMNON PTASHEK ENGINEERING MNGR, SOFTWARE ARCHITECH 145857 0 50000 0 8112 0 8021 0 23376 0 235366 0 0 0 HUGH MOLESWORTH PRINCIPAL SOSTWARE ENGINEER 162507 0 4000 0 897 0 7000 0 8017 0 182421 0 0 0 PART I, LINE 1A THE USE OF BUSINESS CLASS MAY BE AUTHORIZED UNDER THE CIRCUMSTANCES LISTED BELOW: (1) INTERNATIONAL TRAVEL; (2) BUSINESS OR FIRST CLASS IS THE ONLY SERVICE OFFERED BETWEEN TWO POINTS; (3) COACH CLASS WOULD BE MORE EXPENSIVE OR TIME CONSUMING, E.G., WHEN, BECAUSE OF SCHEDULING DIFFICULTIES, TRAVELING BY COACH WOULD REQUIRE AN UNNECESSARY HOTEL EXPENSE, CIRCUITOUS ROUTING (2 OR MORE LAYOVERS), OR AN UNDULY LONG LAYOVER WHEN MAKING CONNECTIONS; (4) AN ITINERARY INVOLVES OVERNIGHT TRAVEL WITHOUT THE OPPORTUNITY FOR NORMAL REST BEFORE THE COMMENCEMENT OF WORKING HOURS; OR (5) THE USE OF BUSINESS CLASS IS NECESSARY TO REASONABLY ACCOMMODATE A DISABILITY OR MEDICAL NEED OF A TRAVELER. PART I, LINES 4A-B LINE 4A: CONDITIONS OF SEVERANCE WERE PER SEPARATION AGREEMENTS. RODGER CURRIE $129,625 (ALL PAID IN 2014 RELATED ORGANIZATION); JAMES TYRRELL-KNOTT TOTAL $77,766 (PAID IN 2014 $24,302 FILING ORGANIZATION); SUNITHA BASKARAN $94,600 (ALL PAID IN 2014 FILING ORGANIZATION); DAVID CANTIN $82,233 (ALL PAID IN 2014 FILING ORGANIZATION); THESE EMPLOYEES ALL RECEVIED SEVERANCE IN 2014. LINE 4B: EACH OF THE FOLLOWING EMPLOYEES PARTICIPATED IN THE NONQUALIFIED RETIREMENT PLAN OFFERED BY THE WEST HEALTH INSTITUTE WHEREBY THE WEST HEALTH INSTITUTE WILL MAKE AN ANNUAL CASH CONTRIBUTION FOR EACH EMPLOYEE IN AN AMOUNT EQUAL TO THE APPLICABLE DOLLAR AMOUNT IN EFFECT FOR THAT YEAR. FOR 2014 THIS AMOUNT WAS $17,500. NICHOLAS VALERIANI, JOSEPH SMITH AND ZIA AGHA. EACH OF THE FOLLOWING EMPLOYEES PARTICIPATED IN THE NONQUALIFIED RETIREMENT PLAN OFFERED BY THE WEST MANAGEMENT COMPANY, A RELATED ORGANIZATION, WHEREBY THE WEST MANAGEMENT COMPANY WILL MAKE A CASH CONTRIBUTION EQUAL TO THE APPLICABLE DOLLAR AMOUNT IN EFFECT. FOR 2014 THIS AMOUNT WAS $17,500: MICHAEL CAPONETTO, SHELLEY LYFORD AND RICHARD DAKERS. IN ADDITION, JOSEPH SMITH IS ENTITLED TO AN ADDITIONAL ANNUAL PAYMENT OF $375,000, CREDITED TO A BOOKKEEPING ACCOUNT, FOR EACH YEAR HE REMAINS EMPLOYED BY THE GARY AND MARY WEST HEALTH INSTITUTE, FOR A MAXIMUM OF FOUR YEARS. AT THE END OF HIS FOURTH YEAR OF EMPLOYMENT, THE AGGREGATE AMOUNT WILL BE PAID TO DR. SMITH IN A LUMP SUM WITHIN SIXTY DAYS. THIS FINAL PAYMENT OF $1.5M WAS PROCESSED ON 4/30/14. PART I, LINE 7 EACH OF THE MANAGERS IS ELIGIBLE FOR AN ANNUAL DISCRETIONARY BONUS, SUBJECT TO BOARD APPROVAL, WHICH IS BASED ON INDIVIDUAL PERFORMANCE AND LIMITED TO A MAXIMUM PERCENTAGE OF BASE COMPENSATION. PART I, LINE 8 CERTAIN AMOUNTS REPORTED IN FORM 990, PART VII, REPRESENT FIXED PAYMENTS UNDER INITIAL CONTRACTS AND ARE THEREFORE EXEMPT FROM THE APPLICATION OF IRC SECTION 4958. GARY AND MARY WEST BOARD OF DIRECTORS GIFTED TIFFANY & CO GIFT 1 GARY AND MARY WEST BOARD OF DIRECTORS GIFTED PETER LIK PAINTING 1 0 0 WEST DEVELOPMENT LLC GARY WEST (CHAIRMAN OF THE BOARD) IS A >35% OWNER 135617 PROVISION OF IT SERVICES 0 SCH L, PART I TIFFANY & CO GIFT WAS PRESENTED TO GARY AND MARY WEST AND VALUED AT $289.20 (MARCH 2014). IN ADDITION, A PETER LIK PAINTING WAS GIFTED TO GARY AND MARY WEST, VALUED AT $7,884 (MAY 2014).GARY AND MARY WEST CORRECTED THESE TRANSACTIONS BY REIMBURSING THE INSTITUTE $8,173 WHICH IS THE TOTAL VALUE OF THE 2 GIFTS VIA CHECK ON 9/9/15. SCH L, PART V GARY WEST IS THE CHAIRMAN OF THE WEST HEALTH INSTITUTE AND WAS THE FOUNDER OF WEST CORPORATION, ALONG WITH HIS SPOUSE, MARY. MR. AND MRS. WEST COLLECTIVELY OWN APPROXIMATELY 18.1% OF THE OUTSTANDING SHARE OF WEST CORPORATION. THE SHARES ARE HELD IN VARIOUS CHARITABLE REMAINDER TRUSTS.GARY WEST IS A MEMBER OF THE FOLLOWING ORGANIZATIONS: WEST RB, LLC, WEST INN & SUITES, LLC, AND WEST STEAK SEAFOOD AND SPIRITS. GARY WEST (AND THE LLCS) ARE TREATED AS INTERESTED PERSONS FOR PURPOSES OF SCHEDULE L, PART IV, ADDRESSING BUSINESS TRANSACTIONS INVOLVING INTERESTED PERSONS. THERE WERE BUSINESS TRANSACTIONS BETWEEN THE INSTITUTE AND THE LLCS DURING 2014, BUT THE MAGNITUDE OF THE TRANSACTIONS WAS LESS THAN THAT REQUIRING DISCLOSURE ON SCHEDULE L. FORM 990, PART VI, SECTION A, LINE 2 ALMOST ALL OF THE CURRENT DIRECTORS AND OFFICERS HAVE A "BUSINESS RELATIONSHIP" AS DEFINED IN THE FORM 990 INSTRUCTIONS, WITH EACH OF THE OTHER CURRENT OFFICERS AND DIRECTORS BECAUSE OF POSITIONS THEY HOLD WITH AFFILIATED ORGANIZATIONS. FORM 990, PART VI, SECTION A, LINE 3 CERTAIN SUPERVISORY, FINANCIAL AND OTHER MANAGERIAL FUNCTIONS ARE PERFORMED BY EMPLOYEES OF WEST MANAGEMENT COMPANY, A NON-PROFIT, TAXABLE ENTITY THAT PROVIDES SERVICES TO AFFILIATED ORGANIZATIONS. FORM 990, PART VI, SECTION A, LINE 6 THE ORGANIZATION IS A NON-PROFIT, NON-STOCK CORPORATION WITH THREE MEMBERS DURING 2014. FORM 990, PART VI, SECTION A, LINE 7A THE MEMBERS OF THE ORGANIZATION HAVE THE AUTHORITY TO ELECT AND REMOVE MEMBERS OF THE GOVERNING BODY. FORM 990, PART VI, SECTION A, LINE 7B THE FOLLOWING DECISIONS REQUIRE MEMBER APPROVAL: 1. THE DISSOLUTION, LIQUIDATION, MERGER, CONSOLIDATION, RECAPITALIZATION OR OTHER REORGANIZATION OF THE CORPORATION; 2. THE SALE, LEASE OR EXCHANGE OF ALL OR SUBSTANTIALLY ALL OF THE PROPERTY OF THE CORPORATION; AND 3. ANY CHANGES PROPOSED TO BE MADE BY THE CORPORATION'S BOARD OF DIRECTORS TO THE CORPORATION'S CERTIFICATE OF INCORPORATION OR BYLAWS. FORM 990, PART VI, SECTION B, LINE 11 THE FORM 990 INFORMATION WAS COMPILED FROM THE ORGANIZATION'S CORPORATE AND ACCOUNTING RECORDS AND PROVIDED TO THE ORGANIZATION'S OUTSIDE TAX PREPARER. THE COMPLETED FORM 990 WAS REVIEWED BY THE ORGANIZATION'S CONTROLLER, CFO, COO, AND CEO. UPON SATISFACTORY COMPLETION OF THE INTERNAL REVIEW PROCESS, A DRAFT OF THE FORM 990 WAS CIRCULATED TO THE ORGANIZATION'S BOARD OF DIRECTORS FOR REVIEW. THE FORM 990 WAS THEN FILED WITH THE INTERNAL REVENUE SERVICE. FORM 990, PART VI, SECTION B, LINE 12C THE DIRECTORS AND OFFICERS OF THE INSTITUTE MET REGULARLY, OFTEN MONTHLY, THROUGHOUT 2014 AND DISCUSSED ALL ACTUAL AND POTENTIAL CONFLICTS OF INTEREST THAT EXISTED WITH RESPECT TO OTHER NON-PROFIT AND BUSINESS ORGANIZATIONS. THE DIRECTORS AND OFFICERS ALSO COLLECTED ANNUAL WRITTEN CONFLICT OF INTEREST STATEMENTS FROM ALL DIRECTORS AND OFFICERS. NO FAILURES OF COMPLIANCE WITH THE POLICY WERE FOUND. FORM 990, PART VI, SECTION B, LINE 15 THE ORGANIZATION HAS A COMPENSATION APPROVAL PROCESS FOR ITS EMPLOYEES. FOR THOSE PAID IN EXCESS OF $100,000, A BASIC COMPENSATION STUDY IS PERFORMED AND COMPENSATION RANGES ARE REQUIRED TO BE APPROVED BY THE BOARD OF DIRECTORS. FOR THOSE PAID IN EXCESS OF $250,000, SUCH AS THE CEO, AN ENHANCED STUDY OF COMPARABLE COMPENSATION IS PERFORMED AND THE BOARD OF DIRECTORS REVIEWS AND APPROVES COMPENSATION LEVELS. THE ORGANIZATION ALSO RETAINS THE SERVICES OF AN OUTSIDE COMPENSATION CONSULTANT ON A PERIODIC BASIS. FORM 990, PART VI, SECTION C, LINE 19 THE ORGANIZATION MAKES ITS CERTIFICATE OF INCORPORATION AND AUDITED FINANCIAL STATEMENTS AVAILABLE TO THE PUBLIC UPON THE REQUEST FOR SUCH DOCUMENTS. FORM 990, PART VII: THE ORGANIZATION HAS A MANAGEMENT SERVICES AGREEMENT WITH THE GARY AND MARY WEST MANAGEMENT COMPANY, A RELATED NON-PROFIT CORPORATION, WHEREBY THE GARY AND MARY WEST MANAGEMENT COMPANY PROVIDES CERTAIN MANAGERIAL AND ADMINISTRATIVE SUPPORT SERVICES TO THE ORGANIZATION. SUCH SERVICES INCLUDE THAT OF CHIEF FINANCIAL OFFICER, CHIEF OPERATING OFFICER, AND OTHER SENIOR MANAGEMENT ROLES. FORM 990, PART IX, LINE 11G CONSULTANTS: PROGRAM SERVICE EXPENSES 651,158. MANAGEMENT AND GENERAL EXPENSES 439,079. FUNDRAISING EXPENSES 0. TOTAL EXPENSES 1,090,237. ENGINEERING CONSULTING FEES: PROGRAM SERVICE EXPENSES 423,701. MANAGEMENT AND GENERAL EXPENSES 0. FUNDRAISING EXPENSES 0. TOTAL EXPENSES 423,701. STAKEHOLDER COMMUNICATIONS: PROGRAM SERVICE EXPENSES 51,140. MANAGEMENT AND GENERAL EXPENSES 609,793. FUNDRAISING EXPENSES 0. TOTAL EXPENSES 660,933. ADMINISTRATION GENERAL: PROGRAM SERVICE EXPENSES 0. MANAGEMENT AND GENERAL EXPENSES 22,535. FUNDRAISING EXPENSES 0. TOTAL EXPENSES 22,535. GARY AND MARY WEST HEALTH ENDOWMENT INC 1603 ORRINGTON AVE SUITE 810 EVANSTON IL 60201 272953865 FINANCIAL SUPPORT DE 501(C)(3) LINE 11, TYPE II N/A 0 GARY AND MARY WEST HEALTH POLICY CENTER INC 1909 K STREET NW SUITE 730 WASHINGTON DC 20006 275388874 SEE SCH R, PART VII DE 501(C)(3) PRIVATE FOUNDATION N/A 0 CENTER FOR MEDICAL INTEROPERABILITY INC 618 CHURCH STREET SUITE 220 NASHVILLE TN 37219 453191908 SEE SCH R, PART VII DE 501(C)(3) LINE 7 N/A 0 GARY AND MARY WEST MANAGEMENT COMPANY INC 5796 ARMADA DRIVE SUITE 300 CARLSBAD CA 92008 454040871 MANAGEMENT SERVICES DE N/A C 0 WEST HEALTH INCUBATOR 10350 NORTH TORREY PINES ROAD LA JOLLA CA 92037 453576551 SEE SCH R, PART VII DE N/A C 0 REFLEXION HEALTH INC 225 BROADWAY SUITE 650 SAN DIEGO CA 92101 455417842 SEE SCH R, PART VII DE N/A C 0 SENSE4BABY INC 10350 NORTH TORREY PINES ROAD LA JOLLA CA 92037 320378023 SEE SCH R, PART VII DE N/A C 0 WESTECH INC 10350 NORTH TORREY PINES ROAD LA JOLLA CA 92037 471589216 SEE SCH R, PART VII DE N/A C 0 0 0 1 0 0 0 0 0 0 0 1 0 1 1 1 1 1 0 0 GARY AND MARY WEST HEALTH POLICY CENTER INC Q 613399 SEE SCH R, PART VII GARY AND MARY WEST HEALTH ENDOWMENT INC C 9000000 CASH - GRANT AGREEMENT GARY AND MARY WEST MANAGEMENT COMPANY INC M 4114924 SEE SCH R, PART VII WESTECH INC K 64000 CASH - FACILITY USE AGREEMENT REFLEXION HEALTH INC Q 55367 SEE SCH R, PART VII CENTER FOR MEDICAL INTEROPERABILITY INC Q 92529 SEE SCH R, PART VII CENTER FOR MEDICAL INTEROPERABILITY INC K 117058 CASH - FACILITY USE AGREEMENT PART II: IDENTIFICATION OF RELATED TAX-EXEMPT ORGANIZATIONS: NAME OF RELATED ORGANIZATION: GARY AND MARY WEST HEALTH POLICY CENTER, INC. PRIMARY ACTIVITY: ANALYZE, DISCUSS AND EDUCATE ON HEALTH POLICY ISSUES; SUPPORT POLICIES AND PRACTICES THAT REDUCES HEALTHCARE COSTS. PART II: IDENTIFICATION OF RELATED TAX-EXEMPT ORGANIZATIONS: NAME OF RELATED ORGANIZATION: CENTER FOR MEDICAL INTEROPERABILITY, INC. PRIMARY ACTIVITY: ADVANCEMENT OF INTEROPERABILITY OF MEDICAL DEVICES AND INFORMATION SYSTEMS, TO LOWER THE COST OF HEALTH CARE IN THE UNITED STATES PART IV: IDENTIFICATION OF RELATED ORGANIZATIONS TAXABLE AS A CORPORATION: NAME OF RELATED ORGANIZATION: WEST HEALTH INCUBATOR, INC. PRIMARY ACTIVITY: PROVIDES A FACILITY AND ACCESS TO SERVICES TO EARLY STAGE COMPANIES OFFERING SOLUTIONS TO LOWER THE COST OF HEALTH CARE. PART IV: IDENTIFICATION OF RELATED ORGANIZATIONS TAXABLE AS A CORPORATION: NAME OF RELATED ORGANIZATION: REFLEXION HEALTH INC. PRIMARY ACTIVITY: DEVELOPING SOFTWARE TO BE USED BY PHYSICAL THERAPISTS AND PATIENTS IN PHYSICAL REHABILITATION TO LOWER THE COST OF HEALTH CARE. PART IV: IDENTIFICATION OF RELATED ORGANIZATIONS TAXABLE AS A CORPORATION: NAME OF RELATED ORGANIZATION: SENSE4BABY, INC. PRIMARY ACTIVITY: MANUFACTURES AND SELLS A NON-INVASIVE MATERNAL FETAL MONITORING DEVICE TO LOWER THE COST OF HEALTH CARE. PART IV: IDENTIFICATION OF RELATED ORGANIZATIONS TAXABLE AS CORPORATION: NAME OF RELATED ORGANIZATION: WESTECH, INC. PRIMARY ACTIVITY: AUTOMATE AND DEVELOP CLOUD-BASED, VIRTUAL CARE MANAGER SOFTWARE SOLUTIONS. PART IV, IDENTIFICATION OF RELATED ORGANIZATIONS TAXABLE AS CORP., COL (E): NAME OF RELATED ORGANIZATION: GARY AND MARY WEST MANAGEMENT COMPANY, INC. TYPE OF ENTITY: GARY AND MARY WEST MANAGEMENT COMPANY, INC. IS A NON-STOCK, NON-PROFIT CORPORATION TAXED AS A C-CORPORATION. SCHEDULE R, PART V, COLUMN D: THE PERCENTAGE OF ALLOCATION TO AFFILIATED COMPANIES IS DETERMINED BASED ON ACTUAL TIME SPENT PLUS A PREDETERMINED ALLOCATED PERCENTAGE OF GENERAL TIME WORKED.