2015-05-11T15:05:09-05:00 2014-06-30 990 2013-07-01 910939479 PEACEHEALTH PEAC 3607291000 1115 SE 164TH AVENUE VANCOUVER WA 98683 KEVIN WALSTROM SVP CFO 3607291000 2015-05-11 2013 2016-02-25 16:41:14Z BETH O'BRIEN 1115 SE 164TH AVENUE VANCOUVER WA 98683 2389647201 0 X WWW.PEACEHEALTH.ORG X 1976 WA WE CARRY ON THE HEALING MISSION OF JESUS CHRIST BY PROMOTING PERSONAL AND COMMUNITY HEALTH, RELIEVING PAIN AND SUFFERING, AND TREATING EACH PERSON IN A LOVING AND CARING WAY. 14 14 17776 2000 45873492 -8724828 6454937 8399457 1765254486 2083955081 66520313 100226939 60281141 57296419 1898510877 2249877896 1842740 2131464 0 0 1000445251 1241652923 0 0 3204829 823899874 891545158 1826187865 2135329545 72323012 114548351 3058150430 3466898309 1468534450 1713511288 1589615980 1753387021 X WE CARRY ON THE HEALING MISSION OF JESUS CHRIST BY PROMOTING PERSONAL AND COMMUNITY HEALTH, RELIEVING PAIN AND SUFFERING, AND TREATING EACH PERSON IN A LOVING AND CARING WAY. 0 0 1891886817 2131464 2083955081 HOSPITALS, CLINICS, MEDICAL GROUPS, AND LABORATORIES:FOUNDED BY THE SISTERS OF ST. JOSEPH OF PEACE, PEACEHEALTH HAS PROVIDED EXCEPTIONAL MEDICINE AND COMPASSIONATE CARE TO NORTHWEST COMMUNITIES FOR MORE THAN A CENTURY. PEACEHEALTH IS A NOT-FOR-PROFIT HEALTH CARE SYSTEM WITH HOSPITALS, CLINICS, MEDICAL GROUP CLINICS AND LABORATORIES LOCATED IN ALASKA, WASHINGTON AND OREGON. RURAL COMMUNITIES RELY ON THEIR HOSPITALS AS CRITICAL COMPONENTS OF THE COMMUNITIES' ECONOMIC AND SOCIAL FABRIC. THESE HOSPITALS ARE TYPICALLY THE LARGEST OR SECOND LARGEST EMPLOYER IN THE COMMUNITY, AND OFTEN STAND ALONE IN THEIR ABILITY TO OFFER HIGHLY-SKILLED JOBS. CHARITY CARE AND COMMUNITY BENEFITS:PEACEHEALTH PROVIDES FINANCIAL ASSISTANCE TO PATIENTS UNABLE TO PAY FOR SERVICE. BRIDGE ASSISTANCE PATIENTS RECEIVE CARE AT REDUCED COST OR NO CHARGE WHEN IT IS DETERMINED THAT PAYMENT CANNOT BE OBTAINED THROUGH INSURANCE, OUTSIDE AGENCIES, OR PRIVATE MEANS. PEACEHEALTH OFFERS INFORMATION ON AVAILABLE ASSISTANCE PRIOR TO ADMISSION. BRIDGE ASSISTANCE IS ALSO AVAILABLE POST-CARE THROUGH FINANCIAL COUNSELING. OTHER COMMUNITY BENEFIT COSTS INCLUDE THE UNREIMBURSED COST OF MEDICAID AND GOVERNMENT PROGRAMS, HEALTH EDUCATION, AND COMMUNITY HEALTH IMPROVEMENT INITIATIVES.NET COMMUNITY BENEFIT EXPENSE FOR TAX YEAR 2014 WAS $201,994,888. 1891886817 1 1 0 1 0 0 0 0 0 1 1 0 0 0 1 1 0 1 0 1 1 1 0 0 0 0 1 1 1 0 1 1 0 0 0 0 0 0 0 0 0 1 0 0 0 0 1 1 1 0 0 0 1 682 0 1 17776 1 1 1 0 0 0 0 0 0 0 0 0 X 14 14 0 0 1 0 1 1 0 1 1 0 0 1 1 1 1 1 1 1 1 1 1 OR WA AK X SPENCER URBAN TAX ACCOUNTANT 3607291000 1115 SE 164TH AVENUE VANCOUVER WA 98683 SR ANDREA NENZEL CSJP CHAIRMAN 40.00 X X 0 0 0 SR ANNE HAYES CSJP DIRECTOR 2.00 X X 0 0 0 RON PRILL DIRECTOR 2.00 X X 0 0 0 DIETER MORICH MD DIRECTOR 2.00 X 0 0 0 BRETT BRYAN DIRECTOR 2.00 X 0 0 0 GRETCHEN PIERCE DIRECTOR 2.00 X 0 0 0 ROLAND TRENOUTH MD DIRECTOR 2.00 X 0 0 0 LEE KEARNEY DIRECTOR 2.00 X 0 0 0 SR NORAH CLARKE CSJP DIRECTOR 2.00 X 0 0 0 ROBERT DE VITA DIRECTOR 2.00 X 0 0 0 CAROL SHERIDAN DIRECTOR 2.00 X 0 0 0 SR MARGARET DIMOND CSJP DIRECTOR 2.00 X 0 0 0 SR KATHLEEN PRUITT CSJP DIRECTOR 2.00 X 0 0 0 BARNEY SPEIGHT DIRECTOR 2.00 X 0 0 0 ALAN YORDY PRESIDENT & CEO 40.00 X 961223 0 405519 STUART P HENNESSEY SENIOR VP 40.00 X 459819 0 269811 KEVIN WALSTROM SENIOR VP 40.00 X 531732 0 211409 MARK MCCAMPBELL SENIOR VP 40.00 X 240393 0 24942 PETER ADLER SENIOR VP 40.00 X 546406 0 216672 RYAN BALL SENIOR VP 40.00 X 172838 0 17668 NANCY STEIGER SENIOR VP 40.00 X 585469 0 210405 CAROL AARON SENIOR VP 40.00 X 491671 0 179111 ELAINE SVIGEL DUNDA SENIOR VP 40.00 X 427786 0 189131 HOWARD GRAMAN MD SENIOR VP 40.00 X 551636 0 171541 JOSIAH JOHNSON SENIOR VP 40.00 X 387433 0 184917 JOHN HILL SENIOR VP 40.00 X 568199 0 156970 RAN WHITEHEAD CEO - PEACEHEALTH LABS 40.00 X 295517 0 70965 JOSEPH KORTUM SENIOR VP 40.00 X 704372 0 315573 DENNIS GORY MD 40.00 X 845617 0 97655 ERIC HAUCK MD 40.00 X 1216635 0 93968 STEPHEN COOK MD 40.00 X 798843 0 97976 DAVID DUKE MD 40.00 X 817948 0 96256 RAMAKOTA REDDY MD 40.00 X 798564 0 94266 JOHN HAUGHOM SENIOR VP 40.00 X 122449 0 5590 TOD CASEY WOODARD SENIOR VP 40.00 X 142388 0 106956 11666938 0 3217301 1636 1 1 0 NUANCE COMMUNICATIONS INC ONE WAYSIDE ROAD BULINGTON MA 01803 SOFTWARE IMPLEMENTATION 3923244 NURSEFINDERS LLC 524 E LAMAR BLVD SUITE 300 ARLINGTON TX 76011 HEALTH CARE STAFFING SERVICES 3403028 HURON CONSULTING SERVICES LLC 3005 MOMENTUM PLACE CHICAGO IL 60689 CONSULTING 3141372 ARAMARK MANAGEMENT SERVICES 1101 MARKET ST PHILADELPHIA PA 19107 UNIFORM SERVICE 2451139 MCKESSON TECHNOLOGIES INC 5995 WINWARD PARKWAY ALPHARETTA GA 30005 SOFTWARE IMPLEMENTATION 2432525 178 3923667 2345226 2130564 8399457 PATIENT SERVICE REV 621110 2075675107 2075675107 OTHER OPERATING REV 621110 8279974 8279974 2083955081 50036182 50036182 6849416 5137062 1712354 1712354 1712354 182858000 1965000 134097243 535000 48760757 1430000 50190757 50190757 UNRELATED BUSINESS INC 900099 45873492 45873492 CAFETERIA 900099 9710573 9710573 55584065 2249877896 2083955081 45873492 111649866 1858346 1858346 273118 273118 14884239 12873813 2010426 996652292 862033692 132940073 1678527 73183869 63298867 9885002 85664030 74093323 11241320 329387 71268493 61642202 9508428 117863 43563981 37679760 5845955 38266 2408908 2406563 2345 1160911 1067932 92979 445208 445208 160626780 138930796 21305496 390488 2567995 2565069 2926 7591748 7591748 30122969 26054236 4068733 53743872 46484645 7257239 1988 12451339 10769527 1681812 121861 37716 84145 31635205 31635205 133396358 115378408 17970272 47678 36716049 34766430 1949619 MED SUPPLIES & SERVICES 281212261 281212261 OTHER TAX 52856017 52393781 455736 6500 OTHER OPERATING EXPENSE 22065156 19084798 2568621 411737 INTEREST RATE SWAPS 18858540 18858540 2135329545 1891886817 240237899 3204829 70951783 125073770 276979091 424222414 301784791 303464012 12068721 44828232 36580883 40135099 18332493 16815295 2493908788 1169560343 1334971823 1324348445 708298644 1041798780 204241242 35273249 5426517 35137100 88514442 75801913 3058150430 3466898309 269662867 325252039 910333829 1062668024 11566123 11589540 276971631 314001685 1468534450 1713511288 X 1533358073 1695916720 32128656 40303066 24129251 17167235 1589615980 1753387021 3058150430 3466898309 X 114548351 31074067 18148623 X 0 1 X 1 1 1 X RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED 0 0 0 0 0 0 1 445208 0 0 445208 0 0 0 42466288 175566 4020665 14504243 32158276 25724507 15739128 1178809 176156 42466288 26359503 -301830 333166 25724507 0.16930 0.57700 0.25370 0 1 1 63253430 63253430 1462186382 670076319 792110063 64824211 14539844 50284367 838249986 484944180 353305806 65394779 65394779 1324348445 OBLIGATIONS UNDER CAPITAL LEASES 30453132 INTEREST RATE SWAPS 95460982 ACCRUED PENSION LIABILITY 58473185 SELF-INSURANCE LIABILITY 72619070 OTHER LIABILITIES 56995316 314001685 X PART V, LINE 4: THE REPORTED ENDOWMENT FUNDS BELONG TO THE PEACEHEALTH FOUNDATIONS. THE INTENDED USE OF THE ORGANIZATION'S ENDOWMENT FUNDS ARE FOR: 1) THE PURCHASE OF PROPERTY, PLANT, AND EQUIPMENT 2) SUPPORT FOR HOSPICE AND INDIGENT CARE 3) PATIENT CARE AND OTHER OPERATING ACTIVITIES PART X, LINE 2: PART X, LINE 2 - FIN 48 (ASC 740) FOOTNOTE THE CORPORATION ADOPTED FASB INTERPRETATION NO. 48, ACCOUNTING FOR UNCERTAINTY IN INCOME TAXES, AN INTERPRETATION OF FASB STATEMENT 109 (FIN 48). FIN 48 CLARIFIES THE ACCOUNTING FOR UNCERTAINTY IN INCOME TAXES RECOGNIZED IN AN ENTERPRISE'S FINANCIAL STATEMENTS IN ACCORDANCE WITH FASB STATEMENT NO. 109, ACCOUNTING FOR INCOME TAXES. FIN 48 ALSO PRESCRIBES A RECOGNITION THRESHOLD AND MEASUREMENT STANDARD FOR THE FINANCIAL STATEMENT RECOGNITION AND MEASUREMENT OF AN INCOME TAX POSITION TAKEN OR EXPECTED TO BE TAKEN IN A TAX RETURN. ONLY TAX POSITIONS THAT MEET THE MORE-LIKELY-THAN-NOT RECOGNITION THRESHOLD AT THE EFFECTIVE DATE MAY BE RECOGNIZED OR CONTINUE TO BE RECOGNIZED UPON ADOPTION. IN ADDITION, FIN 48 PROVIDES GUIDANCE ON ECOGNITION, CLASSIFICATION, INTEREST AND PENALTIES, ACCOUNTING IN INTERIM PERIODS, DISCLOSURE, AND TRANSITION. THE ADOPTION OF FIN 48 DID NOT HAVE A SIGNIFICANT IMPACT ON THE CONSOLIDATED FINANCIAL STATEMENTS OF THE CORPORATION. 1 CENTRAL AMERICA/CARIBBEAN 1 1 PROGRAM SERVICES HEALTHCARE 273118 1 1 0 0 1 1 273118 0 273118 CENTRAL AMERICA AND THE CARIBBEAN - ANTIGUA & BARBUDA, ARUBA, BAHAMAS, PROGRAM SERVICES 273118 1 0 0 0 0 0 0 PART I, LINE 2: PEACEHEALTH OPERATES A MEDICAL MISSION PROGRAM IN EL SALVADOR. THIS MISSION USES PEACEHEALTH MEDICAL PROFESSIONALS TO RENDER HEALTHCARE ASSISTANCE TO PEOPLE WITH LIMITED FINANCIAL RESOURCES. THESE ACTIVITIES ARE IN THE PEACEHEALTH BUDGET AND ARE INCLUDED IN THE OPERATING RESULTS OF PEACEHEALTH THE SAME AS OTHER PEACEHEALTH OPERATIONS. THE MISSION PROGRAM IS SUBJECT TO THE SAME MANAGEMENT CONTROL AND OVERSIGHT AS THE ORGANIZATION'S DOMESTIC PROGRAMS. 1 1 X 1 X 1 X 1 1 0 1 1 62541245 11246111 51295134 0.02400 366633833 227246088 139387745 0.06530 429175078 238492199 190682879 0.08930 2524931 756691 1768240 0.00080 7349988 1002224 6347764 0.00300 2358230 2302443 55787 0.00000 301625 158870 142755 0.00010 2997516 53 2997463 0.00140 15532290 4220281 11312009 0.00530 444707368 242712480 201994888 0.09460 0 105027459 57696551 468359050 521945517 -53586467 X 1 1 10 1 PH SACRED HEART MED CTR AT RIVERBEND 3333 RIVERBEND DRIVE SPRINGFIELD OR 97477 X X X A 2 PH SACRED HEART MED CTR UNIV DISTRICT 1255 HILYARD STREET EUGENE OR 97401 X X X A 3 PH ST JOSEPH MEDICAL CENTER 2901 SQUALICUM PARKWAY BELLINGHAM WA 98225 X X X A 4 PH ST JOHN MEDICAL CENTER 1615 DELAWARE STREET LONGVIEW WA 98632 X X X A 5 PH KETCHIKAN MEDICAL CENTER 3100 TONGASS AVENUE KETCHIKAN AK 99901 X X X A 6 PH PEACE HARBOR MEDICAL CENTER 400 9TH STREET FLORENCE OR 97439 X X X A 7 PH COTTAGE GROVE COMMUNITY MED CTR 1515 VILLAGE DRIVE COTTAGE GROVE OR 97424 X X X A 8 PH SOUTHWEST MEDICAL CENTER 400 NE MOTHER JOSEPH PL VANCOUVER WA 98683 X X X A 9 PH PEACE ISLAND MEDICAL CENTER 1117 SPRING STREET FRIDAY HARBOR WA 97401 X X X B 10 PH UNITED GENERAL MEDICAL CENTER 4000 HOSPITAL DRIVE SEDROWOOLLEY WA 98284 X X X B FACILITY REPORTING GROUP A 1 X X X X X X X X X 12 1 1 1 X WWW.PEACEHEALTH.ORG X X X X X X 0 0 1 1 200.000000000000 1 400.000000000000 1 X X X X X 1 1 X X X X X X 1 0 X X X X 1 X 0 0 FACILITY REPORTING GROUP B 0 1 1 200.000000000000 1 400.000000000000 1 X X X X X 1 1 X X X X X X 1 0 X X X X 1 X 0 0 PART V, SECTION B, LINE 1 FOR FACILITY REPORTING GROUP B: THE HOSPITALS FOR FACILITY REPORTING GROUP B WERE ACQUIRED WITHIN THE LAST TWO TAX YEARS. THE HOSPITALS ARE UNDERGOING A COMMUNITY HEALTH NEEDS ASSESSMENT IN TAX YEAR 2014. PART V, SECTION B, LINE 3: FOR FACILITY REPORTING GROUP A:TO OBTAIN CURRENT DATA OR OTHER INFORMATION RELEVANT TO THE HEALTH NEEDS OF THE COMMUNITY SERVED BY THE PEACEHEALTH MEDICAL CENTERS, THE COMMUNITY HEALTH NEEDS ASSESSMENT TOOK INTO ACCOUNT INFORMATION FROM:1) PERSONS WITH SPECIAL KNOWLEDGE OF OR EXPERTISE IN PUBLIC HEALTH.2) FEDERAL, TRIBAL, REGIONAL, STATE, AND LOCAL HEALTH DEPARTMENTS AND AGENCIES.3) LEADERS, REPRESENTATIVES, AND MEMBERS OF MEDICALLY UNDERSERVED, LOW INCOME, AND MINORITY POPULATIONS, AND POPULATIONS WITH CHRONIC DISEASE NEEDS IN THE COMMUNITY SERVED BY THE HOSPITAL FACILITY.4) REVIEW OF AVAILABLE PUBLISHED COMMUNITY HEALTH DATA.5) MEETINGS WITH COMMUNITY GROUPS AND PUBLIC OFFICIALS; PUBLIC FORUMS, FOCUS GROUPS, AND COMMUNITYWIDE HEALTH ASSET SURVEY AND KEY INFORMANT INTERVIEWS.AMONG THE CONSULTED INDIVIDUALS AND GROUPS WERE: PUBLIC HEALTH OFFICIALS OF LOCAL COUNTY PUBLIC HEALTH DISTRICTS, PUBLIC HEALTH EXPERTS OF COMMUNITY GROUPS, LOCAL NON-PROFIT ORGANIZATIONS, AND OTHER COMMUNITY HEALTH EXPERTS. PART V, SECTION B, LINE 4: FOR FACILITY REPORTING GROUP A: THE CHNA WAS CONDUCTED CONCOMITANTLY WITH THE HOSPITALS LISTED IN FACILITY REPORTING GROUP A IN PART V, SECTION A. PART V, SECTION B, LINE 7: FOR FACILITY REPORTING GROUP A: WHILE THE PEACEHEALTH MEDICAL CENTERS STRIVE TO ADDRESSS ALL NEEDS IDENTIFIED IN THE COMMUNITY HEALTH NEEDS ASSESSMENT, CONSTRAINTS ON RESOURCES AND TIME PREVENT COMPLETE ADDRESSING OF ALL COMMUNITY HEALTH NEEDS. PART V, SECTION B, LINE 20D: FOR FACILITY REPORTING GROUP A:EXPLANATION OF OTHER METHODS TO DETERMINE AMOUNT BILLED: IRS REQUIREMENTS FOR CHARITABLE HOSPITALS 501(R)LIMITATION ON CHARGESAN ELIGIBLE INDIVIDUAL UNDER A HOSPITAL FINANCIAL ASSISTANCE POLICY (FAP) WILL NOT BE CHARGED MORE THAN THE AMOUNTS GENERALLY BILLED TO INDIVIDUALS WHO HAVE INSURANCE COVERAGE. TO DETERMINE AMOUNTS GENERALLY BILLED (AGB), THE 'LOOK BACK" METHOD IS APPLIED USING MEDICARE AND INSURED ACCOUNTS. THE LOWEST AGB FOR ANY OF OUR FACILITIES IS 35%.UPON DETERMINATION THAT THE PATIENT IS ELIGIBLE FOR FINANCIAL ASSISTANCE A SLIDING DISCOUNT IS APPLIED. THERE ARE DIFFERENT DISCOUNTS A SLIDING SCALE DEPENDING ON WHETHER THE PATIENT HAS INSURANCE COVERAGE. FOR PATIENTS WITHOUT INSURANCE, THE DISCOUNTS RANGE FROM 65% TO 100%. FOR PATIENTS WITH INSURANCE THE DISCOUNTS RANGE FROM 20% TO 100%. WHILE THE RATE INSURED PATIENTS ARE ULTIMATELY CHARGED VARIES WITH CONTRACT AND BENEFIT TERMS, WE BELIEVE THAT OUR FAP DISCOUNTS PROVIDE ELIGIBLE INDIVIDUALS WITH BETTER OR SIMILAR DISCOUNTS. WE DO NOT USE GROSS CHARGES WITHOUT DISCOUNTS FOR INDIVIDUALS ELIGIBLE UNDER OUR FAPS.FOR FACILITY REPORTING GROUP B: REFER TO ABOVE EXPLANATION FOR FACILITY REPORTING GROUP A. ALL PEACEHEALTH HOSPITALS HAVE THE SAME FINANCIAL ASSISTANCE POLICIES IN PLACE. PART I, LINE 7: THE COSTING METHOLODOGY USED TO DETERMINE THE AMOUNTS REPORTED ON PART I, LINE 7 IS AS FOLLOWS: COST TO CHARGE RATIOS WERE CALCULATED BY TOTAL BUSINESS UNIT OPERATING EXPENSE DIVIDED BY TOTAL GROSS PATIENT REVENUE. THIS RATIO WAS THEN APPLIED TO THE PATIENT CHARGES BY FINANCIAL CLASS IN THE BUSINESS UNIT TO ESTIMATE COST BY FINANCIAL CLASS. THE COST BY FINANCIAL CLASS WAS THEN OFFSET BY REVENUE, INCLUDING ALLOCATIONS OF REVENUE OUTSIDE OF THE BILLING SYSTEM. THE REVENUE OUTSIDE OF THE BILLING SYSTEM CONSISTS OF PROVIDER TAXES, 3RD PARTY SETTLEMENTS, AND OTHER OFFSETTING REVENUE RECORDED IN THE GENERAL LEDGER. FOR CHARITY CARE, THE COST TO CHARGE RATIO WAS APPLIED ALL CHARITY CARE DEDUCTIONS. PART I, LINE 2 WE APPLY THE SAME FINANCIAL ASSISTANCE POLICY TO ALL HOSPITAL FACILITIES. THE BOARD OF DIRECTORS DETERMINED THAT THIS IS EQUITABLE TO EACH OF OUR COMMUNITIES AND CONSISTENT WITH OUR MISSION TO PROMOTE PERSONAL AND COMMUNITY HEALTH. OUR FINANCIAL ASSISTANCE POLICY INCLUDES DISCOUNTS FOR UP TO 400% OF FEDERAL POVERTY GUIDELINES. PART III, LINE 2: REFER TO PART III, LINE 4 EXPLANATION FOR A DESCRIPTION OF THE METHODOLOGY FOR COMPUTING BAD DEBTS. THE AMOUNTS REPORTED REPRESENT THE PATIENT ACCOUNT BALANCES WRITTEN OFF TO BAD DEBT DURING THE YEAR ALONG WITH THE CHANGE IN THE ESTIMATE IN THE BAD DEBT RESERVES ON OUTSTANDING PATIENT ACCOUNTS RECEIVABLE BALANCES LESS ANY RECOVERIES ON PATIENT ACCOUNTS. PART III, LINE 3: THE ORGANIZATION USED DEMOGRAPHIC DATA REGARDING POPULATION POVERTY LEVELS IN EACH FACILITY'S SERVICE AREA TO DETERMINE THE AMOUNT OF BAD DEBT REASONABLY ATTRIBUTABLE TO PATIENTS WHO WOULD LIKELY QUALIFY FOR THE FACILITY'S FINANCIAL ASSISTANCE POLICY. PART III, LINE 4: 6/30/2014 AUDITED FINANCIAL STATEMENTS - FOOTNOTE (2) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES:THE CORPORATION PROVIDES FOR AN ALLOWANCE AGAINST PATIENT ACCOUNTS RECEIVABLE FOR AMOUNTS THAT COULD BECOME UNCOLLECTIBLE. THE CORPORATION ESTIMATES THIS ALLOWANCE BASED ON THE AGING OF ACCOUNTS RECEIVABLE, HISTORICAL COLLECTION EXPERIENCE BY PAYOR, 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 COPAYMENTS TO BE MADE BY PATIENTS WITH INSURANCE COVERAGE AND BUSINESS PRACTICES RELATED TO COLLECTION EFFORTS. THESE FACTORS CONTINUOUSLY CHANGE AND CAN HAVE AN IMPACT ON COLLECTION TRENDS AND THE ESTIMATION PROCESS USED BY THE CORPORATION. PART III, LINE 8: THE CALCULATION FOR PART III, LINE 8 IS COMPLETED USING MEDICARE COST REPORT DATA. THE MEDICARE AMOUNTS LISTED IN PART III, SECTION B ON LINES 5, 6, AND 7 ARE REPORTED FROM THE MEDICARE COST REPORTS AND DO NOT DO NOT REPRESENT ALL OF THE REVENUES AND COSTS ASSOCIATED WITH PARTICIPATION IN MEDICARE PROGRAMS BY PEACEHEALTH. PART III SECTION B DOES NOT ALLOW FOR A FULL REPORTING OF MEDICARE REVENUES AND COSTS AS THE INSTRUCTIONS TO THE FORM 990 LIMIT MEDICARE REVENUES AND ALLOWABLE COSTS TO THOSE FROM THE MEDICARE COST REPORT. REVENUE AND COSTS FROM MEDICARE PART C PATIENTS, PART B PHYSICIAN SERVICES BILLED BY THE ORGANIZATION, AND CLINICAL LABORATORY SERVICES WERE NOT INCLUDED IN THE MEDICARE COST REPORT. IN ADDITION, HOSPITALS INCUR OTHER COSTS TO PROVIDE CARE THAT MEDICARE DOES NOT ALLOW IN THE COST REPORT. THE TOTAL REVENUES AND COSTS ATTRIBUTABLE TO ALL MEDICARE SERVICES ARE 740,000,798 AND 898,548,871 RESPECTIVELY. THIS RESULTS IN A TOTAL MEDICARE SHORTFALL OF 158,548,073. PART III, LINE 9B: THE COLLECTION POLICIES INVOLVE THE ISSUANCE OF A BILL ON OR SHORTLY AFTER DISCHARGE OR DEATH OF THE BENEFICIARY TO THE PARTY RESPONSIBLE FOR THE PATIENTS PERSONAL FINANCIAL OBLIGATIONS. THESE POLICIES ALSO INCLUDE OTHER ACTIONS SUCH AS SUBSEQUENT BILLINGS, GARNISHMENT OF FUTURE EARNINGS OR WAGES, LIENS ON PATIENT ACCOUNTS, COLLECTION LETTERS AND TELEPHONE CALLS OR PERSONAL CONTACTS WITH THIS PARTY WHICH CONSTITUTE A GENUINE, RATHER THAN A TOKEN, COLLECTION EFFORT. COLLECTION EFFORTS MAY INCLUDE USING OR THREATENING TO USE COURT ACTION TO OBTAIN PAYMENT. PART VI, LINE 2: THE COMMUNITY HEALTH NEEDS ASSESSMENT IS CUSTOMIZED TO THE LOCAL COMMUNITY. EACH PEACEHEALTH HOSPITAL CONDUCTS ITS OWN COMMUNITY HEALTH NEEDS ASSESSMENT OR PARTNERS WITH OTHER PEACEHEALTH HOSPITALS TO CONDUCT THE COMMUNITY HEALTH NEEDS ASSESSMENT.PEACEHEALTH PARTNERS WITH A DIVERSE GROUP OF COMMUNITY ORGANIZATIONS, INCLUDING MEDICAL PROFESSIONALS, OTHER NOT-FOR-PROFIT ORGANIZATIONS, AND STATE AND LOCAL GOVERNMENT AGENCIES TO IDENTIFY AND ASSESS THE SPECIFIC NEEDS OF THE COMMUNITIES IN WHICH IT SERVES.IN ORDER TO DETERMINE AND ACT ON THE HEALTH CARE NEEDS OF THE COMMUNITY PEACEHEALTH WILL ENGAGE COMMITTEES OF STAFF, BOARD MEMBERS AND VOLUNTEERS TO REVIEW AND ACT ON FUNDING REQUESTS FROM COMMUNITY-BASED ORGANIZATIONS. IN MAKING THE CASE FOR FUNDING, APPLICANTS MUST THOROUGHLY EXPLAIN THE NEED, THE POPULATION SERVED, THE EFFECTIVENESS OF THEIR PROGRAMS, AND THE DESIRED OUTCOME. IN ADDITION TO HELPING BOARD COMMITTEES MAKE WISE STRATEGIC INVESTMENT IN PROGRAMS THAT EFFECTIVELY ADDRESS COMMUNITY NEEDS, THIS PROCESS ALSO KEEPS STAFF AND BOARD MEMBERS ATTUNED TO CHANGES IN THE COMMUNITY. WHEN PEACEHEALTH EVALUATES A COMMUNITY'S NEED FOR A PARTICULAR SERVICE, A HOST OF FACTORS ARE ASSESSED, INCLUDING:-ALTERNATIVE WAYS TO ACCESS CARE-THE ABILITY TO PROVIDE THE NECESSARY STAFF, EQUIPMENT AND SPACE-THE EFFECT ON THE COMMUNITY AND PATIENTS IF PEACEHEALTH DID NOT PROVIDE THE SERVICE-THE COMMUNITY'S BEST INTEREST-THE RESULTS OF AN ETHICAL DISCERNMENT ON THE OVERALL IMPACT TO THE COMMUNITY.ADDITIONAL WAYS PEACEHEALTH STAYS IN TOUCH WITH THE COMMUNITY:- PATIENT COUNCILS: COMMUNITY MEMBERS PROVIDE INPUT AND FEEDBACK ON THE PATIENT EXPERIENCE, ISSUES, CONCERNS AND IDEAS.- COMMUNITY INVOLVEMENT: HOSPITAL STAFF SERVE ON NUMEROUS BOARDS, COMMITTEES AND TASK FORCES THAT ADDRESS COMMUNITY HEALTH PROBLEMS AND PROMOTE COMMUNITY HEALTH.SPEAKERS BUREAU: HOSPITAL LEADERS AND EXPERTS ARE CALLED UPON TO ADDRESS COMMUNITY GROUPS ON A VARIETY OF HEALTH CARE TOPICS, TAKING FEEDBACK, ANSWERING QUESTIONS AND LISTENING TO CONCERNS AND NEEDS. PART VI, LINE 3: PEACEHEALTH HAS A TIME-HONORED TRADITION OF PROVIDING HEALTH CARE SERVICES TO THE SICK AND AFFLICTED REGARDLESS OF ABILITY TO PAY. THIS CONCEPT IS CENTRAL TO OUR MISSION AND IS REINFORCED THROUGH OUR NEW EMPLOYEE ORIENTATION, TRAINING AND DEVELOPMENT PROGRAMS, LEADERSHIP MEETINGS, AND SPECIAL PROGRAMS SUCH AS LEADERSHIP IN MINISTRY. PEACEHEALTH DELIVERS COST SAVINGS TO NEEDY PATIENTS VIA OUR FINANCIAL ASSISTANCE POLICY (FAP) WHICH CONSISTS OF TWO PARTS: BRIDGE FOR UNINSURED PATIENTS AND PATHWAYS FOR INSURED PATIENTS. THE FAP PROGRAMS PROVIDE FREE OR REDUCED-COST CARE TO LOW-INCOME INDIVIDUALS. IN THE SPIRIT OF OUR CORE VALUE OF "RESPECTING INDIVIDUAL HUMAN DIGNITY AND WORTH," PEACEHEALTH USES THE NAMES "BRIDGE AND PATHWAYS" SO THAT PEOPLE USING THESE PROGRAMS CAN REFER TO THEM WITHOUT DISCOMFORT OR EMBARRASSMENT. QUALIFIED INDIVIDUALS RECEIVE A LETTER WHICH THEY MAY PRESENT JUST AS ONE WOULD AN INSURANCE CARD. MANY INDEPENDENT PROVIDERS IN THE COMMUNITY NOW ACCEPT PEACEHEALTH'S FAP PROGRAMS AS THEIR BENCHMARK FOR PROVIDING SERVICES AT REDUCED OR NO CHARGE. THE NAMES REFER TO BRIDGING THE GAP OF FINANCIAL UNCERTAINTY FOR OUR PATIENTS IN NEED. OUR FAP ASSISTANCE PROVIDES MEDICALLY NECESSARY AND SOME PREVENTATIVE SERVICES AT PEACEHEALTH FACILITIES AT A REDUCED COST OR WITHOUT CHARGE WHEN PAYMENT CANNOT BE OBTAINED THROUGH ALL OTHER AVAILABLE FINANCIAL RESOURCES. THE FAP PROGRAM IS SECONDARY TO ALL OTHER RESOURCES SUCH AS INSURANCE, THIRD PARTY LIABILITY PAYERS, GOVERNMENT PROGRAMS, OUTSIDE AGENCY PROGRAMS, OR PRIVATE MEANS. THE PURPOSE OF THE PROGRAM IS TO HELP MANAGE THE DELICATE BALANCE OF FINANCIAL HEALTH AND WISE STEWARDSHIP WITH OUR MISSION OF PROVIDING COMMUNITY SERVICES IN ALL OF OUR SERVICE AREAS. OUR FAP ENSURES THAT PATIENTS RECEIVE FAIR AND EQUAL FINANCIAL TREATMENT ACROSS PEACEHEALTH, AND IT WORKS TOGETHER WITH OUR FINANCIAL COUNSELING SERVICES TO HELP PEACEHEALTH IDENTIFY PATIENTS WHO CAN BENEFIT FROM BRIDGE OR PATHWAYS ASSISTANCE.HERE IS AN EXAMPLE OF HOW WE WORK WITH OUR LOCAL COMMUNITIES TO ENROLLPEOPLE IN THE PROGRAM: PEACEHEALTH ST. JOSEPH MEDICAL CENTER WORKS CLOSELYWITH THE WHATCOM ALLIANCE AND THE AREA FEDERALLY QUALIFIED HEALTH CENTERS(FQHCS) TO ENSURE THAT ALL ELIGIBLE PATIENTS SEEKING MEDICAL CARE KNOWABOUT THE PEACEHEALTH FINANCIAL ASSISTANCE PROGRAM. ALLIANCE STAFF WORK WITH THE MEDICAL CENTER TO FOLLOW UP ON PATIENTS WHO FREQUENT THE EMERGENCY DEPARTMENT FOR CARE AND INFORM THEM OF AVAILABLE RESOURCES, INCLUDING POSSIBLE BRIDGE OR PATHWAYS ASSISTANCE. PATIENTS REFERRED FROM COMMUNITY HEALTH CENTERS SEEKING ACCESS TO DONATED SPECIALTY CARE ARE ROUTINELY ENROLLED IN FINANCIAL ASSISTANCE AS PART OF THE PROCESS FOR DETERMINING ELIGIBILITY FOR COMMUNITY-WIDE DONATED CARE.COMMUNICATION: ELIGIBLE PATIENTS ARE MADE AWARE OF THIS PROGRAM THROUGH AVARIETY OF COMMUNICATION CHANNELS, INCLUDING:-REFERRALS FROM COMMUNITY PARTNERS, INCLUDING NONPROFIT COMMUNITYCLINICS THAT ARE FREE OR LOW-COST -INFORMATION POSTED ON OUR WEB SITE AT HTTP://WWW.PEACEHEALTH.ORG/ABOUT-PEACEHEALTH/FINANCIAL-SERVICES/PAGES/FINANCIAL-ASSISTANCE.ASPX-SIGNAGE IN OUR WAITING ROOMS*-BROCHURES THROUGHOUT OUR FACILITIES**-FINANCIAL COUNSELING.*AS PART OF OUR BASELINE OUTREACH PLAN, PEACEHEALTH POSTS SIGNS IN THEFOLLOWING AREAS:-REGISTRATION AREAS-RECEPTION AREA-PAY STATIONS**BROCHURES ARE MADE AVAILABLE IN THE FOLLOWING AREAS:-PHYSICIAN OFFICES-COUNTY HEALTH DEPARTMENTS-REGISTRATION BOOTH/DESK-CHECK-IN AREAS (LAB, IMAGING, ETC)-WAITING AREAS-EXISTING BROCHURE DISPLAYS-ADMINISTRATION-PATIENT EXAM ROOMS (PROVIDER OFFICES)-PAY STATIONS PART VI, LINE 4: PEACEHEALTH OPERATES TEN HOSPITALS IN THREE STATES. IN ALASKA, PEACEHEALTH RUNS THE KETCHIKAN MEDICAL CENTER IN KETCHIKAN. IN OREGON, PEACEHEALTH OPERATES SACRED HEART MEDICAL CENTER, UNIVERSITY DISTRICT (EUGENE), SACRED HEART MEDICAL CENTER AT RIVERBEND (SPRINGFIELD), PEACE HARBOR MEDICAL CENTER (FLORENCE), AND COTTAGE GROVE COMMUNITY MEDICAL CENTER (COTTAGE GROVE). IN WASHINGTON, PEACEHEALTH OPERATES SOUTHWEST WASHINGTON MEDICAL CENTER (VANCOUVER), PEACEHEALTH ST. JOHN MEDICAL CENTER (LONGVIEW), PEACEHEALTH ST. JOSEPH MEDICAL CENTER (BELLINGHAM), PEACEHEALTH UNITED GENERAL MEDICAL CENTER (SEDRO-WOOLLEY), AND PEACEHEALTH PEACE ISLAND MEDICAL CENTER (FRIDAY HARBOR).COMMUNITY INFORMATION FOR KETCHIKAN, ALASKA:NEARLY 30% OF THE SERVICE AREAS POPULATION IS AMERICAN INDIAN OR ALASKAN NATIVE WITH 21.5% OF THE MORE POPULOUS KETCHIKAN GATEWAY BOROUGH AND 47.3% OF THE PRINCE OF WALES-HYDER CENSUS AREA BELONGING TO THIS RACE/ETHNICITY GROUP. ALMOST 77% OF KETCHIKAN RESIDENTS ARE WHITE COMPARED TO 57.9% OF PRINCE OF WALES-HYDER AND 73.1% OF ALASKANS OVERALL. ABOUT 10% OF THE POPULATION IS 65 YEARS OF AGE OR OLDER, COMPARED TO 7.7% OF STATE OF ALASKA RESIDENTS AND 13.0% OF UNITED STATES RESIDENTS.COMMUNITY INFORMATION FOR EUGENE, OREGON:THE US CENSUS 2010 PLACED THE POPULATION OF LANE COUNTY AT 351,715 RESIDENTS. EUGENE, HOME TO THE UNIVERSITY OF OREGON, IS THE LARGEST CITY IN THE COUNTY WITH A 2010 POPULATION OF ABOUT 156,000 RESIDENTS, OR NEARLY 45% OF THE COUNTYS POPULATION. THE EUGENE-SPRINGFIELD METRO AREA CONTAINS OVER 60% OF THE COUNTYS POPULATION.OVER 88% OF THE POPULATION IN LANE COUNTY IS WHITE, IN CONTRAST TO OVER 83% IN THE STATE OF OREGON. LANE COUNTY CURRENTLY HAS FEWER RESIDENTS OF HISPANIC ANCESTRY (7.4%) THAN EITHER THE STATE (11.4%) OR THE NATION (16.3%), BUT HISPANICS ARE THE LARGEST AND FASTEST GROWING MINORITY GROUP IN THE COUNTY. SPRINGFIELD HAS A SIGNIFICANTLY HIGHER PERCENTAGE OF HISPANIC RESIDENTS (12.1%) THAN ANY OF THE OTHER CITIES IN LANE COUNTY.THE AGE DEMOGRAPHICS VARY SIGNIFICANTLY BY COMMUNITY. OVERALL, LANE COUNTY HAS A LARGER ELDERLY POPULATION THAN EITHER THE STATE OR NATION (ABOUT 15% VS. 14% AND 13%, RESPECTIVELY). THIS FINDING HAS SIGNIFICANT IMPLICATIONS FOR OVERALL HEALTH, AS WELL AS FOR THE NEED FOR HEALTH CARE SERVICES. SPRINGFIELD, EUGENE AND CRESWELL HAVE MUCH SMALLER ELDERLY POPULATIONS, BARELY OVER 10%. STRIKINGLY, MORE THAN A THIRD OF THE POPULATION OF FLORENCE IS 65 YEARS OF AGE OR OLDER. COMMUNITY INFORMATION FOR SPRINGFIELD, OREGON:REFER TO THE PREVIOUSLY LISTED INFORMATION FOR EUGENE, OREGON AND LANE COUNTY. FOR THE PURPOSE OF THIS COMMUNITY HEALTH NEEDS ASSESSMENT, THE SERVICE AREA FOR PEACEHEALTH SACRED HEART AT RIVERBEND WAS DEFINED AS LANE COUNTY. THIS DEFINITION WAS BASED IN PART ON THE FACT THAT MORE THAN 80% OF PEACEHEALTH SACRED HEARTS INPATIENTS IN 2011 WERE RESIDENTS OF LANE COUNTY. IN ADDITION, SACRED HEART AT RIVERBEND SERVES AS THE REGIONAL REFERRAL HOSPITAL FOR OTHER PROVIDERS IN LANE COUNTY.COMMUNITY INFORMATION FOR FLORENCE, OREGON:PEACE HARBORS SERVICE AREA HAS APPROXIMATELY 28,000 RESIDENTS, MOST OF WHOM RESIDE IN FLORENCE. REEDSPORT, WALDPORT AND YACHATS ARE THE ONLY OTHER COMMUNITIES WITH MORE THAN 1,000 RESIDENTS. OVERALL, THE SERVICE AREA IS RURAL AND OVERWHELMINGLY WHITE, RANGING FROM 98% IN SWISSHOME TO 94% IN GARDINER. THE HISPANIC POPULATION COMPRISES 4% OF THE POPULATION, SIGNIFICANTLY LOWER THAN LANE COUNTY, OF WHICH 7.4% OF THE POPULATION IS OF HISPANIC ANCESTRY. THE MOST STRIKING DEMOGRAPHIC FEATURE OF THE SERVICE AREA IS THE LARGE SENIOR CITIZEN POPULATION. SENIOR CITIZENS COMPRISE OVER 15% OF THE POPULATION OF LANE COUNTY, BUT OVER 31% OF RESIDENTS OF THE SERVICE AREA RESIDENTS ARE 65 OR OLDER. AT LEAST 20% OF THE POPULATION IN EACH COMMUNITY IS AT LEAST 65 YEARS OF AGE, AND IN FLORENCE, FULLY 35% OF RESIDENTS ARE 65 OR OLDER. THIS LARGE ELDERLY POPULATION, ALONG WITH TOURISM, HAS BECOME AN IMPORTANT PART OF THE LOCAL ECONOMY AS THE TIMBER AND FISHING INDUSTRIES HAVE DECLINED.COMMUNITY INFORMATION FOR COTTAGE GROVE, OREGON:COTTAGE GROVE OFFERS PROGRAMS TO THE APPROXIMATELY 40,000 RESIDENTS OF THE SERVICE AREA. THE SERVICE AREA IS PREDOMINANTLY WHITE WITH A GROWING HISPANIC POPULATION.AT THE 2010 CENSUS, 5% OF THE POPULATION WAS OF HISPANIC ORIGIN IN COMPARISON TO OVER 7% OF LANE COUNTY. STRIKINGLY, THE SERVICE AREA HAD A MUCH LARGER SENIOR CITIZEN POPULATION IN COMPARISON TO LANE COUNTY. WITH THE EXCEPTION OF CRESWELL AND DEXTER, THE PERCENT OF THE POPULATION THAT IS 65 OR OLDER IS GREATER THAN THAT OF LANE COUNTY AS A WHOLE. MOST STRIKING IS ELKTON WHERE 27% OF THE POPULATION WAS AT LEAST 65 YEARS OLD.COMMUNITY INFORMATION FOR VANCOUVER, WASHINGTON:WITHIN THE FOUR COUNTY PORTLAND METROPOLITAN AREA, CLARK COUNTY IS THE THIRD MOST POPULOUS COUNTY. THE SERVICE AREA ENCOMPASSES 629 SQUARE MILES AND ITS MULTIPLE LARGE SUBURBAN COMMUNITIES HAVE A TOTAL POPULATION OF OVER 425,000. BETWEEN 2000 AND 2010, THE POPULATION GREW BY OVER 23%. THE LARGEST CITY IN THE COUNTY IS VANCOUVER, WHICH HAS 38% OF THE COUNTYS POPULATION. OTHER LARGER CITIES INCLUDE CAMAS, BATTLE GROUND AND WASHOUGAL. AS WITH MANY PRIMARILY SUBURBAN COMMUNITIES, CLARK COUNTY IS FAST-GROWING AND AFFLUENT; COUNTY HEALTH RANKINGS CURRENTLY RANKS CLARK COUNTY THE EIGHTH HEALTHIEST COUNTY IN THE STATE OF WASHINGTON.AT 7.8% CLARK COUNTY HAS A SMALLER HISPANIC POPULATION THAN THE REST OF THE STATE OF WASHINGTON AND THE SMALLEST HISPANIC POPULATION IN THE PORTLAND METRO AREA. WITHIN CLARK COUNTY, THE CITIES OF VANCOUVER AND WOODLAND HAVE RELATIVELY LARGE HISPANIC POPULATIONS. THE PROPORTION OF ELDERLY POPULATION IN CLARK COUNTY (12.0%) IS SIMILAR TO THE STATE OF WASHINGTON (12.7%) AND VARIES BY LOCALE WITHIN CLARK COUNTY. IT IS THE SECOND LARGEST IN THE PORTLAND REGION, WITH ONLY CLACKAMAS COUNTY HAVING A LARGER ELDERLY POPULATION.COMMUNITY INFORMATION FOR LONGVIEW, WASHINGTON:THE US CENSUS 2010 PLACED THE POPULATION OF COWLITZ COUNTY AT 102,410 RESIDENTS. THE LARGEST POPULATION CENTER IS LONGVIEW, HOME TO NEARLY HALF OF ALL COWLITZ COUNTY RESIDENTS. THIS IS FOLLOWED BY THE GEOGRAPHICALLY ADJACENT CITY OF KELSO, WHICH HAS ABOUT A QUARTER OF THE COUNTYS RESIDENTS. RACIALLY, COWLITZ COUNTY IS PREDOMINANTLY WHITE (92.5% OF RESIDENTS); THE SECOND LARGEST RACIAL GROUP IS NATIVE AMERICAN, AT 3.3% OF THE POPULATION. ETHNICALLY, COWLITZ COUNTY IS LESS THAN 8% HISPANIC, WHICH IS SIGNIFICANTLY LOWER THAN THE STATE AVERAGE OF ALMOST 12%.OVERALL, COWLITZ COUNTY HAS A LARGER POPULATION OF RESIDENTS AGE 65 AND OLDER (15.4%) COMPARED TO EITHER THE STATE (12.3%) OR THE NATION (13.0%). THE PROPORTION OF THE COMMUNITY IN THIS AGE GROUP VARIES SIGNIFICANTLY ACROSS THE COUNTY, RANGING FROM OVER 68% OF RESIDENTS IN RYDERWOOD, TO ONLY 12% OF RESIDENTS IN TOUTLE. COMMUNITY INFORMATION FOR BELLINGHAM, WASHINGTON:WHATCOM COUNTY IS THE 12TH LARGEST IN THE STATE OF WASHINGTON IN TERMS OF AREA AND THE NINTH LARGEST IN TERMS OF POPULATION. ACCORDING TO THE 2010 CENSUS, 201,140 PEOPLE LIVE IN WHATCOM COUNTY. MOST (43%) LIVE IN UNINCORPORATED AREAS, AND 40% (80,885) LIVE IN BELLINGHAM. FROM 2000 TO 2010, WHATCOM COUNTYS POPULATION INCREASED 21%, COMPARED TO THE 14% INCREASE IN POPULATION FOR WASHINGTON STATE AS A WHOLE.THE COUNTYS POPULATION IS GETTING OLDER AS THE MEDIAN AGE GREW FROM 34 IN 2000 TO 36.1 IN 2010. DATA FROM THE CENSUSES THOSE TWO YEARS SHOWS THE PROPORTION OF CHILDREN UNDER 5 YEARS OLD FELL FROM 6.1% IN 2010 TO 5.8% WHILE THE PROPORTION OF ADULTS OVER 65 YEARS OLD INCREASED FROM 11.6% TO 12.8%.COMMUNITY INFORMATION FOR FRIDAY HARBOR, WASHINGTON:FRIDAY HARBOR IS A TOWN IN SAN JUAN COUNTY, WASHINGTON, UNITED STATES. THE POPULATION WAS 2,162 AT 2010 CENSUS. LOCATED ON SAN JUAN ISLAND, FRIDAY HARBOR IS THE MAJOR COMMERCIAL CENTER OF THE SAN JUAN ISLANDS ARCHIPELAGO AND IS THE COUNTY SEAT OF SAN JUAN COUNTY.AS OF THE CENSUS OF 2010, THERE WERE 2,162 PEOPLE, 1,015 HOUSEHOLDS, AND 481 FAMILIES RESIDING IN THE TOWN. THE RACIAL MAKEUP OF THE TOWN WAS 83.1% WHITE, 0.3% AFRICAN AMERICAN, 0.5% NATIVE AMERICAN, 2.0% ASIAN, 0.1% PACIFIC ISLANDER, 10.9% FROM OTHER RACES, AND 3.1% FROM TWO OR MORE RACES. HISPANIC OR LATINO OF ANY RACE WERE 15.9% OF THE POPULATION.THERE WERE 1,015 HOUSEHOLDS OF WHICH 27.3% HAD CHILDREN UNDER THE AGE OF 18 LIVING WITH THEM, 30.2% WERE MARRIED COUPLES LIVING TOGETHER, 12.0% HAD A FEMALE HOUSEHOLDER WITH NO HUSBAND PRESENT, 5.1% HAD A MALE HOUSEHOLDER WITH NO WIFE PRESENT, AND 52.6% WERE NON-FAMILIES. 46.0% OF ALL HOUSEHOLDS WERE MADE UP OF INDIVIDUALS AND 17.7% HAD SOMEONE LIVING ALONE WHO WAS 65 YEARS OF AGE OR OLDER. COMMUNITY INFORMATION FOR SEDRO-WOOLLEY, WASHINGTON: SEDRO-WOOLLEY IS A CITY IN SKAGIT COUNTY, WASHINGTON, UNITED STATES. THE POPULATION WAS 10,540 AT THE 2010 CENSUS.AS OF THE CENSUS OF 2010, THERE WERE 10,540 PEOPLE, 3,995 HOUSEHOLDS, AND 2,609 FAMILIES RESIDING IN THE CITY. PART VI, LINE 5: PEACEHEALTH IS AN INTEGRATED, NOT-FOR-PROFIT HEALTH SYSTEM THAT OFFERS A FULL CONTINUUM OF HEALTH AND WELLNESS SERVICES IN THE NORTHWEST. PEACEHEALTH CONTRIBUTES TO THE HEALTH OF THE COMMUNITY BY OFFERING A VARIETY OF SERVICES TO ATTEND TO PREVENTATIVE, ACUTE AND CHRONIC HEALTH CARE SERVICES WITHIN THE COMMUNITIES IT SERVES. THE PEACEHEALTH MISSION IS TO CARRY ON THE HEALING MISSION OF JESUS CHRIST BY PROMOTING PERSONAL AND COMMUNITY HEALTH, RELIEVING PAIN AND SUFFERING, AND TREATING EACH PERSON IN A LOVING AND CARING WAY. OUR VISION IS TO ENSURE THAT EVERY PERSON RECEIVES SAFE, COMPASSIONATE CARE; EVERY TIME, EVERY TOUCH. PEACEHEALTH PROVIDES EXCEPTIONAL MEDICINE, AND ENDEAVORS TO ALWAYS SERVE THE MOST VULNERABLE AMONG US. PEACEHEALTH RECOGNIZES THE NEED FOR INDIVIDUALS WHO ARE UNINSURED OR UNDERINSURED TO ACCESS HEALTH CARE AND PEACEHEALTH PROVIDES THOSE SERVICES EQUALLY TO ALL.BASED ON THE AFFORDABLE CARE ACTS CHNA GUIDELINES, EVERY 501(C)3 HOSPITAL MUST CONDUCT ITS OWN UNIQUE CHNA. AS A LARGE HEALTH SYSTEM, PEACEHEALTH HAS COMPLETED A CHNA FOR EACH PEACEHEALTH HOSPITAL REQUIRED TO PROVIDE ONE.THE COMPLETED CHNAS ALLOW FOR DEEPER UNDERSTANDING OF THE HEALTH NEEDS OF OUR COMMUNITIES. OUR BROAD ANALYSIS OF SECONDARY DATA, COMMUNITY FEEDBACK, AND SYSTEMWIDE PEACEHEALTH INPUT REVEALED A REMARKABLE LEVEL OF COMMONALITY IN THE HEALTH CONCERNS OF OUR VARIOUS COMMUNITIES. EACH HOSPITAL HAS IDENTIFIED PLANS TO ADDRESS PRIORITIZED NEEDS AND CONTINUES TO PURSUE OPPORTUNITIES TO ENHANCE THE OVERALL WELLBEING OF THE COMMUNITY.PEACEHEALTH HAS THE WHEREWITHAL TO IMPROVE POPULATION HEALTH IN ALL REGIONS SERVED BY PEACEHEALTH MEDICAL FACILITIES. THROUGH SYSTEMWIDE SHARING OF BEST PRACTICES, PEACEHEALTH IS IMPROVING AND SUPPORTING THE POPULATION HEALTH OF OUR COMMUNITIES ACROSS THE NORTHWEST. PART VI, LINE 7, REPORTS FILED WITH STATES AK,OR,WA 1 SISTERS OF ST JOSEPH OF PEACE 1663 KILLAMEY WAY PO BOX 248 BELLEVUE WA 98009 910567741 501(C)(3) 306600 MISSION SUPPORT WHATCOM ALLIANCE FOR HEALTHCARE ACCESS 800 EAST CHESTNUT LL STE 2 BELLINGHAM WA 98225 810677295 501(C)(3) 215000 COMMUNITY HEALTH NEEDS INTERFAITH COMMUNITY HEALTH CENTER 220 UNITY STREET BELLINGHAM WA 98225 912168190 501(C)(3) 102000 COMMUNITY HEALTH NEEDS AKEELA INC 360 W BENSON BLVD STE 300 ANCHORAGE AK 99503 920046154 100000 519800 FMV DONATION OF BUILDING IN KETCHIKAN, ALASKA. COMMUNITY HEALTH NEEDS FREE CLINIC OF SOUTHWEST WASHINGTON 4100 PLOMONDON ST VANCOUVER WA 98661 911707542 501(C)(3) 75000 COMMUNITY HEALTH NEEDS LANE COMMUNITY COLLEGE 8000 EAST 30TH AVENUE EUGENE OR 97405 930546223 UNIV 72250 EDUCATION SUPPORT LANE COMMUNITY COLLEGE FOUNDATION 4000 EAST 30TH AVE EUGENE OR 97405 237113266 501(C)(3) 68750 EDUCATION SUPPORT UNITED WAY OF LANE COUNTY 3171 GATEWAY LOOP SPRINGFIELD OR 97477 930394142 501(C)(3) 48610 COMMUNITY HEALTH NEEDS WILLAMETTE FAMILY TREATMENT 687 CHESHIRE STREET EUGENE OR 97402 930569684 45000 COMMUNITY HEALTH NEEDS PATHWAYS 2020 1452 HUDSON ST US BANK STE 209 LONGVIEW WA 98632 911954815 36000 COMMUNITY HEALTH NEEDS AMERICAN NATIONAL RED CROSS 2025 E STREET NW WASHINGTON DC 20006 530196605 501(C)(3) 100398 COMMUNITY HEALTH NEEDS CATHOLIC RELIEF SERVICES USCCB 228 W LEXINGTON ST BALTIMORE MD 21201 135563422 501(C)(3) 24088 MISSION SUPPORT BRIGID COLLINS HOUSE 1231 N GARDEN STREET 200 BELLINGHAM WA 98225 943121951 21850 COMMUNITY HEALTH NEEDS LIGHTHOUSE MISSION MINISTRIES 910 W HOLLY STREET BELLINGHAM WA 98225 910659437 501(C)(3) 20000 MISSION SUPPORT THE VOLUNTEERS IN MEDICINE CLINIC 3321 W 11TH AVENUE EUGENE OR 97402 931276816 501(C)(3) 15000 COMMUNITY HEALTH NEEDS FAIRGROUNDS SITE MANAGEMENT GROUP INC DBA CLARK COUNTY EVENTS CENTER 17402 NE DELFEL ROAD RIDGEFIELD WA 98642 202056224 11000 COMMUNITY BENEFIT LANE METRO PARTNERSHIP 1401 WILLAMETTE ST 2ND FLOOR EUGENE OR 97401 930883707 501(C)(3) 10000 COMMUNITY HEALTH NEEDS LANE COUNTY SCHOOL DISTRICT 40 AKA CRESWELL SCHOOL DISTRICT 998 WEST A STREET CRESWELL OR 97426 936000586 GOVT 10000 EDUCATION SUPPORT WHATCOM BUSINESS ALLIANCE 2423 E BAKERVIEW ROAD BELLINGHAM WA 98226 454984520 501(C)(3) 10000 COMMUNITY BENEFIT IDENTITY CLARK COUNTY 915 BROADWAY SUITE 302 VANCOUVER WA 98660 911623724 501(C)(3) 8000 COMMUNITY BENEFIT SILVER STAR SEARCH AND RESCUE 1220 A STREET PO BOX 443 WASHOUGAL WA 98671 237381444 7500 COMMUNITY BENEFIT LOWER COLUMBIA COLLEGE PO BOX 3010 LONGVIEW WA 98632 910823636 UNIV 7000 EDUCATION SUPPORT LONGVIEW EARLY EDITION ROTARY FOUNDATION 950 12TH AVE STE 150 LONGVIEW WA 98632 300474480 501(C)(3) 6500 EDUCATION SUPPORT EUGENE SCHOOL DISTRICT 4J LANE COUNTY 2455 WILLAKENZIE RD EUGENE OR 97401 936000566 GOVT 6000 EDUCATION SUPPORT HIV ALLIANCE 1966 GARDEN AVENUE EUGENE OR 97403 930963546 501(C)(3) 6000 COMMUNITY HEALTH NEEDS BOYS OF SUMMER INC DBA COWLITZ BLACK BEARS 3219 E CAMELBACK ROAD STE 809 PHOENIX AZ 85018 930394142 6000 COMMUNITY BENEFIT 20 26 PART I, LINE 2: PEACEHEALTH PRE-SCREENS APPLICANTS TO DETERMINE THE NEED OF THE ORGANIZATION RECEIVING THE GRANT. GRANTS AND DONTATIONS ARE THEN DETERMINED AND GIVEN TO THOSE ORGANIZATIONS WHOSE MISSION FALLS IN LINE WITH PROMOTING HEALTHCARE OR THE FURTHERANCE OF HEALTHCARE EDUCATION. SINCE EACH GRANT IS CAREFULLY EXAMINED BEFORE IT IS GIVEN AND THE PURPOSE OF THE GRANT IS KNOWN BEFORE IT IS GIVEN, NO FOLLOW UP IS PERFORMED TO FIND OUT HOW THE GRANT WAS USED. X X X X X 1 1 X X X X 1 1 0 1 1 1 1 0 0 ALAN YORDY PRESIDENT & CEO 951642 0 0 0 9581 0 375149 0 30370 0 1366742 0 0 0 STUART P HENNESSEY SENIOR VP 430602 0 20000 0 9217 0 235396 0 34415 0 729630 0 0 0 KEVIN WALSTROM SENIOR VP 518107 0 10000 0 3625 0 181815 0 29594 0 743141 0 0 0 MARK MCCAMPBELL SENIOR VP 217045 0 10000 0 13348 0 4541 0 20401 0 265335 0 0 0 PETER ADLER SENIOR VP 440544 0 104123 0 1739 0 181876 0 34796 0 763078 0 0 0 RYAN BALL SENIOR VP 162838 0 10000 0 0 0 0 0 17668 0 190506 0 0 0 NANCY STEIGER SENIOR VP 495706 0 82092 0 7671 0 182570 0 27835 0 795874 0 0 0 CAROL AARON SENIOR VP 415187 0 66679 0 9805 0 156357 0 22754 0 670782 0 0 0 ELAINE SVIGEL DUNDA SENIOR VP 391061 0 30000 0 6725 0 165389 0 23742 0 616917 0 0 0 HOWARD GRAMAN MD SENIOR VP 521477 0 25000 0 5159 0 137147 0 34394 0 723177 0 0 0 JOSIAH JOHNSON SENIOR VP 382433 0 5000 0 0 0 151408 0 33509 0 572350 0 0 0 JOHN HILL SENIOR VP 523800 0 35000 0 9399 0 130950 0 26020 0 725169 0 0 0 RAN WHITEHEAD CEO - PEACEHEALTH LABS 293780 0 0 0 1737 0 37368 0 33597 0 366482 0 0 0 JOSEPH KORTUM SENIOR VP 698838 0 0 0 5534 0 291718 0 23855 0 1019945 0 0 0 DENNIS GORY MD 844785 0 0 0 832 0 69154 0 28501 0 943272 0 0 0 ERIC HAUCK MD 1184171 0 32464 0 0 0 52702 0 41266 0 1310603 0 0 0 STEPHEN COOK MD 798843 0 0 0 0 0 62798 0 35178 0 896819 0 0 0 DAVID DUKE MD 710058 0 107024 0 866 0 66178 0 30078 0 914204 0 0 0 RAMAKOTA REDDY MD 798564 0 0 0 0 0 59342 0 34924 0 892830 0 0 0 JOHN HAUGHOM SENIOR VP 0 0 0 0 122449 0 0 0 5590 0 128039 0 0 0 TOD CASEY WOODARD SENIOR VP 142388 0 0 0 0 0 85085 0 21871 0 249344 0 0 0 PART I, LINE 1A THE ORGANIZATION HAS POLICIES REGARDING THE ELIGIBILITY OF EXECUTIVES FOR THESE ITEMS. FOR EXAMPLE, TRAVEL FOR COMPANIONS AND HOUSING ALLOWANCES ARE RELATED TO RELOCATION BENEFITS OR FIRST CLASS TRAVEL FOR FLIGHTS EXCEEDING SIX HOURS IN DURATION. PART I, LINES 4A-B THE ORGANIZATION'S CHIEF EXECUTIVE OFFICER, SENIOR VICE PRESIDENTS, CERTAIN PHYSICIANS, AND OTHER HIGHLY COMPENSATED EMPLOYEES ARE ELIGIBLE TO PARTICIPATE IN VARIOUS NONQUALIFIED RETIREMENT PLANS. CONTRIBUTIONS TO THESE PLANS AND RELATED INVESTMENT RETURNS ARE DISCLOSED ON SCHEDULE J AS DEFERRED COMPENSATION AND AS BONUS COMPENSATION WHEN PAID TO THE INDIVIDUAL. PART I, LINES 5B AND 6B: CERTAIN INDIVIDUALS PARTICIPATE IN INCENTIVE COMPENSATION PLANS BASED ON THE CONSOLIDATED PERFORMANCE OF THE ORGANIZATION AND ITS CONTROLLED AFFILIATES FOR THEIR COLLECTIVE OUTCOMES OF QUALITY, SERVICE, CAREGIVER ENGAGEMENT, AND FINANCIAL PERFORMANCE. ANY INCENTIVES PAID ARE INCLUDED IN BONUS COMPENSATION. OTHER REPORTABLE COMPENSATION INCLUDES RELOCATION (MOVING) ALLOWANCES, SEVERANCE, AND OTHER TAXABLE BENEFITS. ADDITIONAL COMMENTARY WE ARE COMMITTED TO LIVING OUR CORE VALUES OF RESPECT, STEWARDSHIP, COLLABORATION AND SOCIAL JUSTICE. PEACEHEALTH MINISTRIES COMPETE FOR EXECUTIVE TALENT WITH BOTH FOR-PROFIT AND NON-PROFIT HOSPITALS AND HEALTH CARE SYSTEMS THROUGHOUT THE COUNTRY DUE TO THE COMPLEXITY OF THE JOB. COMPETITIVE COMPENSATION PROGRAMS ARE CRITICAL TO ATTRACT AND RETAIN THE BEST EXECUTIVE TALENT. PEACEHEALTH IS COMMITTED TO COMPENSATION PRACTICES THAT ARE BOTH JUST AND COMPETITIVE. PEACEHEALTH USES A SINGLE PROCESS TO DETERMINE COMPENSATION FOR ALL CAREGIVERS, INCLUDING EXECUTIVES. THIS PROCESS INCLUDES REVIEWING THIRD-PARTY SURVEY DATA TO BENCHMARK SALARIES AGAINST SIMILAR JOBS AT OTHER HEALTH CARE SYSTEMS OF COMPARABLE SIZE AND COMPLEXITY. WE ALSO EVALUATE EXECUTIVE PERFORMANCE ON AN ANNUAL BASIS. THE PEACEHEALTH BOARD HAS AN EXECUTIVE COMMITTEE COMPRISED OF DIVERSE INDIVIDUALS WITH MISSION, INDEPENDENT BUSINESS AND HUMAN RESOURCES EXPERTISE. THE COMMITTEE IS CHARGED WITH SETTING EXECUTIVE COMPENSATION, INCLUDING INCENTIVE PAY, BENEFITS AND RELATED POLICIES. IT ESTABLISHES SALARIES FOR PEACEHEALTH EXECUTIVES BASED ON THE MARKET MEDIAN (50TH PERCENTILE). AS PART OF THE TOTAL COMPENSATION PACKAGE, OTHER BENEFITS ARE PROVIDED CONSISTENT WITH THE MEDIAN (MIDDLE) OF THE HEALTH CARE MARKET. BENEFITS ARE DESIGNED TO SUPPORT OUR CULTURE AND VALUES, AND TO ENCOURAGE COMMITMENT AND RETENTION. A STATE OF OREGON 936001787 68608JBR1 2004-10-14 15000000 CONSTRUCT MEDICAL COMPLEX 1 0 0 B WA HEALTHCARE FACILITIES AUTHORITY 911108929 93978EU26 2008-06-26 80650000 REFUND PRIOR BOND ISSUE 0 0 0 C OR FACILITIES AUTHORITY 936001787 68608JJG7 2008-06-26 95495000 REFUND PRIOR BOND ISSUE 0 0 0 D OR FACILITIES AUTHORITY 936001787 68608JJH5 2008-06-26 99175000 REFUND PRIOR BOND ISSUE 0 0 0 A 15000000 388824 14611176 2006 0 0 1 1 B 80650000 385500 80264500 2008 1 0 1 1 C 95495000 461344 95033656 2008 1 0 1 1 D 99175000 447966 98727034 2008 1 0 1 1 A 0 0 1 1 0 0.00000 0.00000 0.00000 0 1 0.01000 1 1 B 0 0 1 1 0 0.00000 0.00000 0.00000 0 1 0.01000 1 1 C 0 0 1 1 0 0.00000 0.00000 0.00000 0 1 0.01000 1 1 D 0 0 1 1 0 0.00000 0.00000 0.00000 0 1 0.01000 1 1 A 0 0 1 0 0 0 0 0 1 B 0 0 1 0 0 0 0 0 1 C 0 0 1 0 1 0 0 0 1 D 0 0 1 0 1 0 0 0 1 A 1 B 1 C 1 D 1 SCHEDULE K, PART III, LINE 4: PERCENTAGE OF BOND FINANCED PROPERTY USED IN PRIVATE BUSINESS: A DE MINIMIS AMOUNT OF PRIVATE USE OCCURS. THE PUBLIC MUNICIPAL AUTHORITY'S BOND COUNSEL HAS REVIEWED AND APPROVED OF PEACEHEALTH'S CONTRACTS AND COMPLIANCE WITH REGARD TO THE PIVATE BUSINESS USE OF BOND FINANCED PROPERTY. SCHEDULE K, PART III, LINES 8A, 8B, AND 8C: DISPOSITIONS OF BOND-FINANCED PROPERTY: IN THE ORDINARY COURSE OF BUSIENSS, PEACEHEALTH ROUTINELY DISPOSES OF PROPERTY. DISPOSALS ARE GENERALLY DUE TO EQUIPMENT OBSOLESCENCE OR A TRADE IN ON NEW EQUIPMENT. IN A DISPOSAL WHERE CASH PROCEEDS ARE RECEIVED, THE PROCEEDS ARE EITHER: A) REINVESTED IN QUALIFIED ASSETS AT A LOCATION COVERED BY A TEFRA NOTICE (TAX EQUITY AND FISCAL RESPONSIBILITY ACT OF 1982), OR B) BONDS ARE CALLED AND REDEEMED WITH THE PROCEEDS. A OR FACILITIES AUTHORITY 936001787 68608JKB6 2009-10-15 100795000 REFUND PRIOR BOND ISSUE 0 0 0 B WA HEALTHCARE FACILITIES AUTHORITY 911108929 93978E5T5 2009-10-15 94835000 REFUND PRIOR BOND ISSUE 0 0 0 C STATE OF OREGON 936001787 68608JPE5 2011-08-11 150000000 REFUND PRIOR BOND ISSUE 0 0 0 D WA HEALTHCARE FACILITIES AUTHORITY 911108929 NONEAVAIL 2013-02-27 53464898 REFUND PRIOR BOND ISSUE 0 0 0 A 104387250 451417 103935833 2008 1 0 1 1 B 99515443 407109 99108334 2008 1 0 1 1 C 150000000 150000000 2011 1 0 1 1 D 53464898 1 0 1 1 A 0 0 1 1 0 0.00000 0.00000 0.00000 0 1 0.01000 1 1 B 0 0 1 1 0 0.00000 0.00000 0.00000 0 1 0.01000 1 1 C 0 0 1 1 0 0.00000 0.00000 0.00000 0 1 0.01000 1 1 D 0 0 1 1 0 0.00000 0.00000 0.00000 0 1 0.01000 1 1 A 0 0 1 0 0 0 0 0 1 B 0 0 1 0 0 0 0 0 1 C 0 0 1 0 1 0 0 0 1 D 0 0 1 0 1 0 0 0 1 A 1 B 1 C 1 D 1 A WA HEALTHCARE FACILITIES AUTHORITY 911108929 93978HJM8 2014-03-18 44678262 REFUND PRIOR BOND ISSUE 0 0 0 B OR FACILITIES AUTHORITY 936001787 68608JSB8 2014-03-18 71088211 REFUND PRIOR BOND ISSUE 0 0 0 A 44678262 873262 1 0 1 1 B 71088211 1019562 1 0 1 1 A 0 0 1 1 0 0.00000 0.00000 0.00000 0 1 0.01000 1 1 B 0 0 1 1 0 0.00000 0.00000 0.00000 1 1 0.01000 1 1 A 0 0 1 0 0 0 0 0 1 B 0 0 1 0 0 0 0 0 1 A 1 B 1 SEE PART V DISCLOSURE 0 SCHEDULE L, PART IV PEACEHEALTH HAS FORMED SEVERAL SPLIT INTEREST TRUSTS. THESE ENTITIES ACQUIRED PROPERTY FROM PEACEHEALTH IN SALE LEASE-BACK TRANSACTIONS CREATING A CAPITAL LEASE OBLIGATION. DURING THE YEAR A SERIES OF TRANSACTIONS OCCURRED BETWEEN PEACEHEALTH AND THE SPLIT INTEREST TRUSTS INCLUDING: 1) $2.4 MILLION IN RENT PAYMENTS FROM PEACEHEALTH TO THE SPLIT INTEREST TRUSTS AND 2) SPLIT INTEREST TRUSTS MADE LOAN PAYMENTS OF $2.09 MILLION AND $857,000 IN INTEREST AS PAYMENT ON DEBT TO PEACEHEALTH. AS OF 06/30/14, THE SPLIT INTEREST TRUSTS HAVE A LIABILITY TO THE DONORS OF APPROXIMATELY $14.86 MILLION.CERTAIN INTERESTED PERSONS AND OTHERS ENGAGED IN TRANSACTIONS WITH THE SPLIT INTEREST TRUSTS. DURING THE CURRENT FISCAL YEAR THESE INDIVIDUALS CONTRIBUTED $151,832 TO THE SPLIT INTEREST TRUSTS. THE SPLIT INTEREST TRUSTS PAID IN AGGREGATE TO THESE INDIVIDUALS APPROXIMATELY $24,534. UPON THE DEATH OF THE INDIVIDUAL, AND OR THEIR SUCCESSOR, THEIR OWNERSHIP INTERESTS IN THESE SPLIT INTEREST TRUSTS WILL REVERT BACK TO PEACEHEALTH.NO INDIVIDUALS HAD TRANSACTIONS ABOVE THE REPORTING THRESHOLDS DURING FISCAL YEAR 2014. FORM 990, PART VI, SECTION A, LINE 4 PEACEHEALTH ADOPTED AN AMENDMENT TO ITS BYLAWS WHICH MADE PEACEHEALTH NETWORKS (EIN: 91-1230425), FORMERLY KNOWN AS SOUTHWEST WASHIGNTON HEALTH SYSTEM, THE SOLE CORPORATE MEMBER OF PEACEHEALTH. PEACEHEALTH NETWORKS IS A 501(C)(3) ORGANIZATION. WHEN PEACEHEALTH AFFILIATED WITH SOUTHWEST WASHINGTON HEALTH SYSTEM IN JANUARY 2011, PEACEHEALTH BECAME THE SOLE MEMBER OF SOUTHWEST WASHINGTON HEALTH SYSTEM. EFFECTIVE JANUARY 1, 2014, SOUTHWEST WASHINGTON HEALTH SYSTEM AND PEACEHEALTH WERE REORGANIZED SO THAT THE CORPORATE MEMBERSHIP RELATIONSHIP BETWEEN THEM WAS REVERSED FROM WHAT IT HAD BEEN FOR THE THREE PREVIOUS CALENDAR YEARS. EFFECTIVE JANUARY 1, 2014, SOUTHWEST WASHINGTON HEALTH SYSTEM (NOW KNOWN AS PEACEHEALTH NETWORKS) BECAME THE SOLE MEMBER OF PEACEHEALTH. EFFECTIVE FEBURARY 2014, THE NAME OF SOUTHWEST WASHINGTON HEALTH SYSTEM WAS CHANGED TO PEACEHEALTH NETWORKS. PEACEHEALTH NETWORKS (FORMERLY KNOWN AS SOUTHWEST WASHINGTON HEALTH SYSTEM) AMENDED ITS BYLAWS EFFECTIVE NOVEMBER 22, 2013, RESULTING IN HAVING THE CURRENT PEACEHEALTH NETWORKS BOARD COMPOSITION IDENTICAL TO THE PEACEHEALTH BOARD. THE AMENDED BYLAWS DO ALLOW ADDITIONAL MEMBERS BE APPOINTED TO THE PEACEHEALTH NETWORKS BOARD, BUT NONE HAVE BEEN APPOINTED AS OF THIS FILING. PEACEHEALTH NETWORKS CURRENTLY HAS NO OPERATIONS AND HOLDS NO FINANCIAL ASSETS IN ITS OWN NAME (OTHER THAN SHARES OF STOCK IN COLUMBIA UNITED PROVIDERS, A LICENSEE OF THE WASHINGTON STATE OFFICE OF THE INSURANCE COMMISSIONER). FORM 990, PART VI, SECTION A, LINE 6 REFER TO THE ABOVE EXPLANATION FOR FORM 990, PART VI, SECTION A, LINE 4. FORM 990, PART VI, SECTION A, LINE 7A REFER TO THE ABOVE EXPLANATION FOR FORM 990, PART VI, SECTION A, LINE 4. FORM 990, PART VI, SECTION B, LINE 11 THE ORGANIZATION'S ACCOUNTING DEPARTMENT PREPARES THE RETURN AND WORKS CLOSELY WITH MANAGEMENT TO PREPARE AND REVIEW THE RETURN. THE CFO AND LEGAL DEPARTMENT REVIEW A DRAFT OF THE FORM 990 AND PROVIDE COMMENTS. THE DRAFT IS FORWARDED TO THE STEWARDSHIP COMMITTEE AND TO THE ENTIRE BOARD OF DIRECTORS PRIOR TO FILING THE RETURN. FORM 990, PART VI, SECTION B, LINE 12C PURSUANT TO THE CONFLICTS OF INTEREST POLICY, AN ANNUAL CONFLICT OF INTEREST QUESTIONNAIRE, AIMED AT DETERMINING ANY FAMILY AND BUSINESS RELATIONSHIPS AND TRANSACTIONS OR OTHER TRANSACTIONS THAT MAY POSE A POTENTIAL CONFLICT, IS DISTRIBUTED TO ALL BOARD MEMBERS. BOARD MEMBERS ARE ALSO REQUIRED TO DISCLOSE REAL OR POTENTIAL CONFLICTS AT THE TIME WHEN SUCH CONFLICTS ARISE. OFFICERS AND ANY KEY EMPLOYEES OF PEACEHEALTH MUST AGREE TO THE CONFLICT OF INTEREST POLICY AT THE TIME OF THEIR HIRE. THE CONFLICT OF INTEREST POLICY IS DISCUSSED WITH THE EMPLOYEE AT THEIR ANNUAL PERFORMANCE MEETING AND THE EMPLOYEE MUST SELF-DISCLOSE ANY CONFLICTS AT THIS TIME. HOWEVER, DIRECTORS, OFFICERS AND KEY EMPLOYEES ARE REQUIRED TO CONTINUALLY CONSIDER CONFLICT OF INTEREST PRECEPTS AND SELF-DISCLOSE ANY POTENTIAL CONFLICT AT THE TIME IT ARISES. SHOULD A POTENTIAL CONFLICT OF INTEREST ARISE, THE BOARD MEMBER HAVING A POTENTIAL CONFLICT OF INTEREST SHALL NOT PARTICIPATE IN DISCUSSIONS, USE PERSONAL INFLUENCE OR VOTE ON THE MATTER IN QUESTION. THE CONFLICT OF INTEREST STATEMENTS AND CORRESPONDING POLICIES ARE MONITORED AND DECISIONS ON CONFLICTS ARE MADE BY THE PEACEHEALTH BOARD OF DIRECTORS. FORM 990, PART VI, SECTION B, LINE 15 THE PEACEHEALTH BOARD OF DIRECTORS REVIEWS AND DETERMINES COMPENSATION FOR THE CEO. DURING THIS PROCESS THE HUMAN RESOURCES DEPARTMENT WORKS TOGETHER WITH THE BOARD OF DIRECTORS TO DETERMINE COMPARABILITY DATA ACROSS VARIOUS INDUSTRY AND PROFIT/NOT-FOR-PROFIT STATUSES. THE BOARD OF DIRECTORS REVIEWS MARKET DATA, EVALUATES CEO PERFORMANCE AND REVIEWS THE COMPENSATION OF THE CEO. THE BOARD ALSO USES AN INDEPENDENT COMPENSATION CONSULTANT TO HELP DETERMINE EXECUTIVE COMPENSATION. THE REMAINING KEY EMPLOYEES' AND OFFICERS' COMPENSATION IS DETERMINED BY THE EXECUTIVE COMMITTEE OF THE PEACEHEALTH/PEACEHEALTH NETWORKS BOARD OF DIRECTORS. THE GOVERNANCE COMMITTEE USES MANY OF THE SAME METHODS OF ANALYSIS FOR KEY EMPLOYEES AND OFFICERS AS THEY DO WITH THE CEO DETERMINATION, IN ADDITION TO CONSULTING WITH THE HR DEPARTMENT. DECISIONS ARE MADE DURING A BOARD MEETING AND ARE DOCUMENTED IN THE MINUTES TO THE MEETING. THIS PROCESS WAS LAST UNDERTAKEN IN 2014. FORM 990, PART VI, SECTION C, LINE 19 ALL GOVERNING DOCUMENTS, INCLUDING THE CONFLICT OF INTEREST POLICY, AND FINANCIAL STATEMENTS ARE AVAILABLE ON REQUEST. FORM 990, PART XI, LINE 9: CHANGE IN PENSION LIABILITY -6,227,218. DONATIONS FOR LAND, BUILDINGS AND EQUIPMENT 7,030,680. CHANGE IN INTEREST IN RELATED FOUNDATIONS 5,895,161. AFFILIATION WITH UNITED GENERAL HOSPITAL 11,450,000. 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