2014-11-11T15:39:50-06:00 2013-12-31 911194016 CLARK NUBER PS 10900 NE 4TH STREET SUITE 1700 BELLEVUE WA 98004 990 2013-01-01 562290878 PACMED CLINICS PACM 2066214203 1200 12TH AVENUE S SEATTLE WA 98144 SCOTT COMBS CHIEF FINANCIAL OFFICER 2066217203 2014-11-05 1 JANE M SEARING P00000565 4254544919 2014-11-05 2013 2015-11-30 17:44:51Z PACIFIC MEDICAL CENTERS HARVEY SMITH 1200 12TH AVENUE S SEATTLE WA 98144 236804093 0 X WWW.PACIFICMEDICALCENTERS.ORG X 2003 WA TO PROVIDE RESPECTFUL, HIGH-QUALITY, PATIENT-FOCUSED HEALTHCARE TO EACH PERSON AND TO THE COMMUNITIES WE SERVE, FROM THE WELL INSURED TO THOSE WHO CANNOT AFFORD HEALTHCARE. 11 11 1004 11 0 0 15152 0 190365075 183647156 1712372 895550 275891 262244 192368490 184804950 57000 82250 0 0 77353993 74758515 0 0 0 109848429 117966047 187259422 192806812 5109068 -8001862 130255410 119947273 42277221 40142684 87978189 79804589 X OUR MISSION IS TO PROVIDE RESPECTFUL, HIGH-QUALITY, PATIENT-FOCUSED HEALTHCARE TO EACH PERSON AND TO THE COMMUNITIES WE SERVE. WE ARE AN ORGANIZATION THAT WELCOMES PATIENTS FROM THE WELL INSURED TO THOSE WHO CANNOT AFFORD HEALTHCARE. 0 0 161651721 82250 183629775 PACIFIC MEDICAL CENTERS HAS A MISSION TO PROVIDE CARE FOR THOSE WHO ARE MEDICALLY UNDERSERVED OR UNABLE TO PAY FOR HEALTHCARE SERVICES. IN 2013, THESE INDIVIDUALS ACCOUNTED FOR 7% OF OUR TOTAL PATIENT VISITS.WE SERVE THIS POPULATION IN MANY WAYS:- WE HAVE A LONG-TERM PARTNERSHIP TO PROVIDE SPECIALTY CARE FOR PATIENTS OF KING COUNTY COMMUNITY-BASED CLINICS. IN 2013, GREATER THAN 9% OF OUR OTOLARYNGOLOGY, RHEUMATOLOGY, NEUROLOGY, NEPHROLOGY, ONCOLOGY AND ENDOCRINOLOGY SERVICES WENT TO UNDERINSURED INDIVIDUALS.- AS A FOUNDING MEMBER OF PROJECT ACCESS NORTHWEST, WE HAVE HELPED TO DEVELOP ADDITIONAL NETWORKS IN THE COMMUNITY IN ORDER TO EXPAND ACCESS TO THE MEDICALLY UNDERSERVED IN OUR COMMUNITY.- WITH MANY AREA PHYSICIANS CLOSING THEIR DOORS TO NEW MEDICARE, MEDICAID AND BASIC HEALTH PATIENTS, THE NEED FOR CARE IS GREAT - AND PACIFIC MEDICAL CENTERS IS PROUD OF ITS TRACK RECORD IN PROVIDING FOR THOSE IN NEED AND SUPPORTING COMMUNITY EFFORTS TO EXPAND ACCESS.- AT PACIFIC MEDICAL CENTERS WE ARE COMMITTED TO MEDICAL EDUCATIONINCLUDING THE TRAINING OF THE NEXT GENERATION OF PHYSICIANS AND ALLIED HEALTH PROFESSIONALS SUCH AS NURSE PRACTITIONERS AND PHYSICIAN ASSISTANTS. WE ALSO PARTICIPATE IN EXTERN PROGRAMS FOR MEDICAL ASSISTANT AND MEDICAL TECHNICIAN PROGRAMS. THE MEDICAL TEACHING PROGRAM AT PACMED IS A TEAM EFFORT AND DEMONSTRATES OUR BELIEF IN SERVICE TO OUR COMMUNITY, EXCELLENCE AND CONTINUOUS LEARNING, AND STEWARDSHIP OF OUR RESOURCES. 664033 7951 OUR INTERPRETER SERVICES DEPARTMENT FACILITATES COMMUNICATION BETWEEN OUR PROVIDERS AND PATIENTS WHO DO NOT SPEAK ENGLISH OR SPEAK LIMITED ENGLISH. AT PACIFIC MEDICAL CENTERS, WE HAVE USED TECHNOLOGY IN INNOVATIVE WAYS TO CONTINUE TO PROVIDE THIS VALUABLE SERVICE TO PATIENTS. BY THE USE OF TECHNOLOGY, WE HAVE BEEN ABLE TO CONNECT CERTIFIED MEDICAL INTERPRETERS WITH OURPROVIDERS AND PATIENTS IN THE EXAM ROOM THROUGH VIDEO CONFERENCING. IN DOING SO, WE HAVE BECOME MORE EFFICIENT IN THE USE OF OUR RESOURCES SO WE CAN CONTINUE TO PROVIDE THIS VALUABLE SERVICE TO OUR PATIENTS. 315081 9430 OUR PHYSICIANS AND STAFF PROVIDE HEALTH SCREENING EVENTS WITH YOUTH WHO ARE HOMELESS OR IN TRANSITIONAL HOUSING COMMUNITIES. THROUGH THESE PROGRAMS, WE HAVE REACHED OUT TO HUNDREDS OF PEOPLE UNDERSERVED IN OUR REGION AND PROVIDED BASIC MEDICAL CARE AND FLU VACCINATIONS.PACIFIC MEDICAL CENTERS, THE AMERICAN DIABETES ASSOCIATION AND PREMERA BLUE CROSS PARTNERED TO FORM THE LIVING WELL ALLIANCE (LWA) IN 2011. THE PARTNERSHIP PROVIDES COMPLIMENTARY WORKPLACE HEALTH RISK ASSESSMENT SCREENINGS AND EDUCATIONAL PROGRAMS TO CHANGE THE HEALTH OF THE OVERALL COMMUNITY IN THE PUGET SOUND REGION. IN ADDITION TO EDUCATING AND EQUIPPING PARTICIPANTS WITH TOOLS TO IMPROVE THEIR OVERALL HEALTH, THE PROGRAM HAS ALSO SERVED AS A VEHICLE TO EDUCATE EMPLOYERS ON HEALTH ISSUES THAT IMPACT THEIR STAFF. 162630835 1 0 0 1 0 0 0 0 0 0 1 0 0 0 1 0 1 0 0 0 0 0 0 0 0 0 0 1 0 1 0 0 0 0 0 0 0 0 0 0 0 0 0 1 0 0 0 1 688 0 1 1004 1 0 0 0 0 0 0 0 0 0 0 X 11 11 0 0 0 0 1 0 1 1 1 0 0 1 1 1 1 1 1 1 1 0 WA X SCOTT COMBS 2066214203 1200 12TH AVENUE S SEATTLE WA 98144 DOROTHY GRAHAM CHAIR 1.00 0.00 X X 0 0 0 GENE J COLIN VICE CHAIR 1.00 0.00 X X 0 0 0 MICHAL ALLAIRE TREASURER 1.00 0.00 X X 0 0 0 ANNE M REDMAN SECRETARY 1.00 0.00 X X 0 0 0 DR WILLIAM DOWLING DIRECTOR 1.00 0.00 X 0 0 0 KATHY GERSCH DIRECTOR 1.00 0.00 X 0 0 0 CATHERINE E GLEASON DIRECTOR 1.00 0.00 X 0 0 0 KAREN GLOVER DIRECTOR 1.00 0.00 X 0 0 0 DAN M GUY III DIRECTOR 1.00 0.00 X 0 0 0 MICHAEL MCSHERRY DIRECTOR 1.00 0.00 X 0 0 0 STAN ROBERTS DIRECTOR 1.00 0.00 X 0 0 0 CHARLES LARKIN DIRECTOR 1.00 0.00 X 0 0 0 HARVEY W SMITH PRESIDENT & CEO 50.00 0.00 X 899876 0 104925 DR VIKRAM DABHI CMO 50.00 0.00 X 693825 0 98277 SCOTT L COMBS CFO 50.00 0.00 X 327772 0 71865 LINDA A MARZANO COO 50.00 0.00 X 424608 0 74770 PAUL W GOEBEL VP STRATEGIC DEVELOPMENT 50.00 0.00 X 363772 0 67891 GINA L MARBLE VP PHYSICIAN PRACTICE SUPPORT 50.00 0.00 X 268702 0 62753 ALLEN J SALMIERI VP & CIO 50.00 0.00 X 263928 0 63181 DAVID A ROSS ASSISTANT SECRETARY 50.00 0.00 X 93723 0 5789 CHAD J MARION ORTHOPEDIC SURGEON 50.00 0.00 X 1167888 0 86672 CHRISTOPHER A KUNTZ OPHTHALMOLOGIST 36.00 0.00 X 673337 0 66086 DAVID M WHITE GENERAL SURGEON 40.00 0.00 X 667269 0 36932 THOMAS A LAMPERTI OTOLARYNGOLOGIST 40.00 0.00 X 629672 0 51521 TONY H HUYNH OPHTHALMOLOGIST 40.00 0.00 X 784512 0 67086 KARYN R BECKLEY FORMER VP MARKETING & ADMIN SVC 0.00 0.00 X 261732 0 0 NIRAJ PATEL FORMER OPHTHALMOLOGIST 0.00 0.00 X 162591 0 0 7683207 0 857748 141 1 1 0 INLAND IMAGING INC P O BOX 2813 SPOKANE WA 99220 IMAGING READS 2449572 INLAND IMAGING ASSOCIATES PS P O BOX 2814 SPOKANE WA 99220 IMAGING READS 1708711 INTERMOUNTAIN DRUG CONSULTING PC 1945 SOUTH 800 WEST MAPLETON UT 84664 CONSULTING SERVICES 336480 K & L GATES 925 FOURTH AVE SUITE 2900 SEATTLE WA 981041158 LEGAL SERVICES 235583 STOEL RIVES LLP ONE UNION SQUARE 600 UNIVERSITY ST SEATTLE WA 98101 LEGAL SERVICES 230474 8 MEDICAL GROUP PRACTICE 621110 183629775 183629775 OUTREACH SERVICES 621110 9430 9430 INTERPRETER SERVICES 621110 7951 7951 183647156 775995 775995 363836 101592 262244 262244 262244 51998139 18967 51897551 0 100588 18967 119555 119555 184804950 183647156 0 1157794 X 82250 82250 3885651 792101 3093550 56511765 46322656 10189109 2414485 2006564 407921 8122260 6351840 1770420 3824354 2917263 907091 528000 528000 923708 153389 770319 223856 223856 69231205 64733482 4497723 640982 607643 33339 546956 397192 149764 6553483 5156733 1396750 200516 97208 103308 28577 28577 5465150 2960359 2504791 1900624 789514 1111110 SUPPLIES - DRUGS 22335573 22166335 169238 SUPPLIES - MEDICAL/SURG 1911765 1789143 122622 SOFTWARE 1504384 88159 1416225 REPAIR & MAINTENANCE 1008146 799853 208293 4963122 3891151 1071971 192806812 162630835 30175977 0 28376217 24571062 12608824 7555790 5228242 4790165 161679 2098518 2300483 62678957 39217760 27564029 23461197 49675785 52711700 94955 1092920 4447161 3463956 130255410 119947273 36546108 35043164 211848 263867 5519265 4835653 42277221 40142684 X 87978189 79804589 87978189 79804589 130255410 119947273 -8001862 -171738 0 X 0 1 X 1 0 X 1438769 1817594 1156093 15152 4427608 174950956 183911527 190637742 190465075 183647156 923612456 176389725 185729121 191793835 190480227 183647156 928040064 0 0 0 928040064 1271258 1809632 2182329 1949519 21139831 28352569 1271258 1809632 2182329 1949519 21139831 28352569 1750 5563 7313 1693899 250000 10156 1954055 179356632 187794316 193976164 192439902 204786987 958354001 0.96840 0.98790 0.02960 0.00960 X 0 0 0 0 0 0 1 112274 0 0 112274 0 PART II-B, LINE 1: PACIFIC MEDICAL CENTERS' USFHP IS A TRICARE PRIME PROVIDER, AND IS IN FACT, THE HIGHEST RATED PLAN IN THE MILITARY HEALTH SYSTEM. WE FREQUENTLY MEET WITH OUR WASHINGTON STATE DELEGATES TO UPDATE THEM ON IMPORTANT ISSUES REGARDING PACIFIC MEDICAL CENTERS AND THE USFHP CONTRACT. WE ALSO UPDATE THEM REGARDING STRATEGIES WE ARE TAKING TO CONTINUE OUR PARTNERSHIP WITH THE DEPARTMENT OF DEFENSE TO IMPROVE HEALTHCARE IN THE MILITARY HEALTH SYSTEMS. 2262098 2262098 22578774 12747860 9830914 37696344 26469900 11226444 141741 141741 23461197 PROFESSIONAL LIABILITY RESERVE 2078204 CAPITAL LEASE OBLIGATIONS 485269 OTHER LONG TERM LIABILITIES 2272180 4835653 184056160 1187576 -2080284 -892708 184948868 -143918 -143918 184804950 192229760 1503232 1503232 190726528 2080284 2080284 192806812 PART XI, LINE 2D - OTHER ADJUSTMENTS: BAD DEBT EXPENSES -2,055,284. GRANT EXPENSES -25,000. PART XI, LINE 4B - OTHER ADJUSTMENTS: RENTAL EXPENSES -101,592. NET REALIZED LOSS ON SECURITIES -42,326. PART XII, LINE 2D - OTHER ADJUSTMENTS: RENTAL EXPENSES 101,592. NET UNREALIZED LOSS ON SECURITIES 1,359,314. NET REALIZED LOSS ON SECURITIES 42,326. PART XII, LINE 4B - OTHER ADJUSTMENTS: BAD DEBT EXPENSE 2,055,284. GRANT EXPENSES 25,000. 1 PACIFIC SCIENCE CENTER 200 2ND AVENUE N SEATTLE WA 98109 910750867 501(C)(3) 50000 CONTINUING SUPPORT PRESCRIPTION DRUG ASSISTANCE FOUNDATION 1111 HARVARD AVENUE SEATTLE WA 98122 331134368 501(C)(3) 25000 GENERAL SUPPORT 2 PART I, LINE 2: PACIFIC MEDICAL CENTERS PROVIDES GRANTS AND SUPPORT TO ORGANIZATIONS THAT HAVE A CURRENT 501(C)(3) EXEMPT STATUS AND WHOSE MISSION IS CONSISTENT WITH THE EXEMPT PURPOSE OF PACIFIC MEDICAL CENTERS. X X X X X X 1 1 0 0 0 0 0 0 0 HARVEY W SMITH PRESIDENT & CEO 544916 0 95594 0 259366 0 22934 0 81991 0 1004801 0 0 0 DR VIKRAM DABHI CMO 635578 0 36720 0 21527 0 60744 0 37533 0 792102 0 20847 0 SCOTT L COMBS CFO 276435 0 31204 0 20133 0 43342 0 28523 0 399637 0 19466 0 LINDA A MARZANO COO 361809 0 41155 0 21644 0 48311 0 26459 0 499378 0 17081 0 PAUL W GOEBEL VP STRATEGIC DEVELOPMENT 327762 0 35330 0 680 0 38430 0 29461 0 431663 0 0 0 GINA L MARBLE VP PHYSICIAN PRACTICE SUPPORT 240511 0 24716 0 3475 0 39709 0 23044 0 331455 0 2894 0 ALLEN J SALMIERI VP & CIO 235695 0 27642 0 591 0 36374 0 26807 0 327109 0 0 0 CHAD J MARION ORTHOPEDIC SURGEON 1132991 0 34217 0 680 0 86672 0 0 0 1254560 0 0 0 CHRISTOPHER A KUNTZ OPHTHALMOLOGIST 609879 0 18695 0 44763 0 66086 0 0 0 739423 0 44084 0 DAVID M WHITE GENERAL SURGEON 664739 0 1850 0 680 0 36932 0 0 0 704201 0 0 0 THOMAS A LAMPERTI OTOLARYNGOLOGIST 612410 0 16582 0 680 0 51521 0 0 0 681193 0 0 0 TONY H HUYNH OPHTHALMOLOGIST 760983 0 22849 0 680 0 67086 0 0 0 851598 0 0 0 KARYN R BECKLEY FORMER VP MARKETING & ADMIN SVC 0 0 27642 0 234090 0 0 0 0 0 261732 0 0 0 NIRAJ PATEL FORMER OPHTHALMOLOGIST 0 0 0 0 162591 0 0 0 0 0 162591 0 0 0 PART I, LINE 4A: THE FOLLOWING INDIVIDUALS RECEIVED A SEVERANCE PAYMENT IN 2013: KARYN R. BECKLEY ($224,183) NIRAJ PATEL ($121,943) PART I, LINE 4B: THE FOLLOWING OFFICERS AND PROVIDERS (MDS) PARTICIPATED IN THE EXECUTIVE AND PROVIDER SUPPLEMENTAL COMPENSATION PLANS (457(F)): VIKRAM DABHI ($40,360) SCOTT L. COMBS ($20,408) LINDA A. MARZANO ($25,377) PAUL W. GOEBEL ($20,596) GINA L. MARBLE ($16,775) ALLEN J. SALMIERI ($18,540) CHAD J. MARION ($68,838) CHRISTOPHER A. KUNTZ ($43,152) DAVID M. WHITE ($19,098) THOMAS A. LAMPERTI ($33,687) TONY H. HUYNH ($49,252) FORM 990, PART I, LINE 6, VOLUNTEERS: VOLUNTEERS PROVIDE ADMINISTRATIVE SERVICES TO CLINICS AND PURCHASING AS WELL AS SERVE TIME PARTICIPATING AS BOARD MEMBERS OF THE ORGANIZATION. FORM 990, PART VI, SECTION A, LINE 6 PER SECTION 2.1 OF THE ORGANIZATION'S BYLAWS, THE ORGANIZATION'S SOLE CORPORATE MEMBER IS PACIFIC HOSPITAL AND PRESERVATION DEVELOPMENT AUTHORITY (PHPDA), A PUBLIC AUTHORITY ORGANIZED PURSUANT TO THE REVISED CODE OF WASHINGTON (THE "RCW") 35.21.660, 35.21.670, AND 35.21.730-.755 AND SEATTLE MUNICIPAL CODE CH. 3.110. PRIOR TO THE ORGANIZATION'S INCEPTION, THE HEALTH CARE ACTIVITIES IT CURRENTLY CARRIES ON WERE UNDERTAKEN BY THE PHPDA. THE PHPDA'S HISTORY DATES BACK TO 1933, WHEN ITS BEACON HILL CAMPUS WAS CONSTRUCTED AS THE FIRST UNITED STATES PUBLIC HEALTH SERVICE HOSPITAL IN THE SEATTLE AREA. OVER THE YEARS, THE REGION'S HEALTH CARE DEMANDS CHANGED AND IN 1981, THE U.S. PUBLIC HEALTH SERVICE HOSPITAL METAMORPHOSED INTO A PUBLIC DEVELOPMENT AUTHORITY. THE PHPDA WAS RECOGNIZED AS EXEMPT FROM TAXATION UNDER SECTION 501(C)(3) OF THE CODE IN 1982. (THE PHPDA'S EIN IS 91-1153993). FORM 990, PART VI, SECTION A, LINE 7B SECTION 2.2 OF THE BYLAWS SETS FORTH THE VOTING RIGHTS OF THE SOLE MEMBER (PHPDA), WHICH FUNCTION AS APPROVAL RIGHTS WITH RESPECT TO THE TRANSACTIONS DESCRIBED IN SECTION 2.2: "(A) AMENDMENT OF ARTICLES OF INCORPORATION AND AMENDMENT OF THIS ARTICLE II AND SECTION 10.6 OF THE BYLAWS; (B) ADOPTION OF A PLAN OF MERGER OR CONSOLIDATION WITH ANOTHER CORPORATION; (C) AUTHORIZATION OF THE SALE, LEASE, OR EXCHANGE OF ALL OR SUBSTANTIALLY ALL OF THE PROPERTY OR ASSETS OF THE CORPORATION; (D) AUTHORIZATION OF THE VOLUNTARY DISSOLUTION OF THE CORPORATION OR REVOCATION OF PROCEEDINGS THERFOR; OR (E) ADOPTION OF A PLAN FOR THE DISTRIBUTION OF THE ASSETS OF THE CORPORATION." FORM 990, PART VI, SECTION B, LINE 11 THE BOARD OF DIRECTORS DELEGATES THE REVIEW OF THE FORM 990 TO THE BOARD'S COMPLIANCE AND AUDIT COMMITTEE (C&AC). THE ORGANIZATION'S CONTROLLER WORKS CLOSELY WITH AN OUTSIDE ACCOUNTING FIRM IN PREPARING THE RETURN. THE FINAL DRAFT OF FORM 990 IS ALSO REVIEWED BY THE CONTROLLER AND CHEIF FINANCIAL OFFICER PRIOR TO PROVIDING THIS DRAFT TO THE C&AC. THE C&AC THEN MEETS WITH THE ACCOUNTING FIRM TO DISCUSS THE FORM 990. SUBSEQUENT TO THE C&AC'S REVIEW, THE COMMITTEE DISTRIBUTES COPIES OF THE RETURN TO THE ENTIRE VOTING BOARD BEFORE THE RETURN IS FILED. FORM 990, PART VI, SECTION B, LINE 12C THE COMPLIANCE COMMITTEE OF THE BOARD IS CHARGED WITH MONITORING PROPOSED OR ONGOING TRANSACTIONS FOR CONFLICTS OF INTEREST AND ADDRESSING ANY POTENTIAL OR ACTUAL CONFLICTS. 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 COVERED PERSONS (I.E., BOARD MEMBERS, OFFICERS AND EXECUTIVE LEADERSHIP OR KEY EMPLOYEES). COVERED PERSONS ARE REQUIRED TO DISCLOSE REAL OR POTENTIAL CONFLICTS AT THE TIME WHEN SUCH CONFLICTS ARISE. WHEN SOMEONE BECOMES A COVERED PERSON AND ANNUALLY THEREAFTER, EACH COVERED PERSON IS REQUIRED TO SIGN A STATEMENT AFFIRMING THAT HE/SHE: (1) HAS RECEIVED A COPY OF THE CONFLICTS OR INTEREST POLICY; (2) HAS READ THE POLICY AND UNDERSTANDS SAID POLICY; AND (3) AGREES TO COMPLY WITH ALL REQUIREMENTS OF THE POLICY, INCLUDING COMPLETING THE CONFLICTS OF INTEREST QUESTIONNAIRE. THE COMPLETED QUESTIONNAIRES ARE REVIEWED BY THE COMPLIANCE COMMITTEE AND ANY PERSONS WITH ACTUAL OR POTENTIAL CONFLICTS ARE INFORMED VIA WRITTEN COMMUNICATION. THE PROCEDURES FOR ADDRESSING ANY CONFLICT OF INTEREST INCLUDE, BUT ARE NOT LIMITED TO, THE FOLLOWING: (1) THE CONFLICTING INTEREST IS FULLY DISCLOSED TO THE BOARD; (2) THE INTERESTED PERSON RESPONDS TO FACTUAL QUESTIONS RELATED TO THE SUBSTANCE OF THE TRANSACTION OR ARRANGEMENT BEING CONSIDERED, AFTER WHICH HE/SHE SHALL LEAVE THE MEETING; (3) THE PERSON WITH THE CONFLICT OF INTEREST IS EXCLUDED FROM THE DISCUSSION AND APPROVAL OF SUCH TRANSACTION; (4) ALTERNATIVES TO THE PROPOSED TRANSACTION ARE INVESTIGATED, COMPETITIVE BIDS OR COMPARABLE VALUATIONS ARE OBTAINED; (5) ANY CONFLICTING ISSUES DURING THE COURSE OF A BOARD MEETING WHICH CANNOT BE RESOLVED IS REFERRED TO THE GOVERNANCE COMMITTEE; AND (6) THE TRANSACTION OR ACTION MUST BE APPROVED BY A MAJORITY OF DISINTERESTED PERSONS. FORM 990, PART VI, SECTION B, LINE 15 THE BOARD, THROUGH ITS COMPENSATION COMMITTEE CHARTER ADOPTED APRIL 27, 2006, ESTABLISHES A REQUIREMENT THAT ANY COMPENSATION ARRANGEMENT FOR THE CEO OR ANY OTHER "DISQUALIFIED PERSONS" (AS DEFINED IN SECTION 4958 OF THE INTERNAL REVENUE CODE OF 1986, AS AMENDED (THE "IRC")) BE ESTABLISHED PURSUANT TO A PROCESS THAT IS CONSISTENT WITH THE ORGANIZATION'S STATUS AS AN ENTITY DESCRIBED IN SECTION 501(C)(3) OF THE IRC. THE PROCESS ESTABLISHED BY THE COMMITTEE REQUIRES THAT COMPENSATION PAID TO SUCH INDIVIDUALS BE REASONABLE, THAT DECISIONS WITH RESPECT TO SUCH INDIVIDUALS' COMPENSATION BE DETERMINED BY DISINTERESTED PERSONS BASED ON APPROPRIATE COMPARABILITY DATA, AND THAT THE ORGANIZATION CONTEMPORANEOUSLY DOCUMENT THE BASIS FOR SUCH DECISIONS. FORM 990, PART VI, SECTION C, LINE 19 WHILE FEDERAL TAX LAWS DO NOT MANDATE THAT THE ORGANIZATION'S GOVERNING DOCUMENTS, CONFLICT OF INTEREST POLICY, OR FINANCIAL STATEMENTS BE MADE AVAILABLE FOR PUBLIC INSPECTION, THE ORGANIZATION MAKES ITS GOVERNING DOCUMENTS AND CONFLICT OF INTEREST POLICY AVAILABLE UPON REQUEST. THE FINANCIAL STATEMENTS ARE SUMMARIZED IN THE COMPANY'S COMMUNITY SERVICE REPORT WHICH IS ALSO AVAILABLE UPON REQUEST. FORM 990, PART IX, LINE 11G CONSULTANTS: PROGRAM SERVICE EXPENSES 2,192,143. MANAGEMENT AND GENERAL EXPENSES 1,285,037. FUNDRAISING EXPENSES 0. TOTAL EXPENSES 3,477,180. PURCHASED SERVICES - MEDICAL: PROGRAM SERVICE EXPENSES 57,460,429. MANAGEMENT AND GENERAL EXPENSES 0. FUNDRAISING EXPENSES 0. TOTAL EXPENSES 57,460,429. PURCHASED SERVICES - NON-MEDICAL: PROGRAM SERVICE EXPENSES 2,886,529. MANAGEMENT AND GENERAL EXPENSES 2,516,793. FUNDRAISING EXPENSES 0. TOTAL EXPENSES 5,403,322. CONTRACT STAFF: PROGRAM SERVICE EXPENSES 2,194,381. MANAGEMENT AND GENERAL EXPENSES 695,893. FUNDRAISING EXPENSES 0. TOTAL EXPENSES 2,890,274. PACIFIC HOSPITAL PRESERVATION & DEVELOPMENT AUTHORITY 1200 12TH AVE S Q2 SEATTLE WA 98144 911153993 CHAMPION EFFECTIVE HEALTH CARE FOR THE VULNERABLE AND DISADVANTAGED WA 501(C)(3) LINE 6 N/A 0 0 0 0 0 0 0 0 0 0 0 1 1 0 0 0 0 1 0 0