2013-01-29T18:24:26-06:00 2012-06-30 460879716 COLES REINSTEIN PLLC 960 BROADWAY AVE SUITE 415 BOISE ID 83706 990 2011-07-01 237455145 Healthwise Incorporated HEAL 2083451161 PO Box 1989 Boise ID 837011989 A James Balkins III 2083451161 2013-01-29 1 DENNIS R REINSTEIN CPAABV ASA CVA P00025137 2083452350 X 2011 2016-02-25 16:41:14Z Donald W Kemper PO Box 1989 Boise ID 837011989 30574722 0 X www.healthwise.org X 1975 ID See Schedule O. 11 9 238 0 0 0 0 0 4875 4875 17831 44101 25070011 27403030 25092717 27452006 18925 0 0 0 20611209 22996200 0 0 0 4344992 4318335 24975126 27314535 117591 137471 22641568 22614074 4792341 4634468 17849227 17979606 X The Healthwise mission is to help people make better health decisions. Healthwise provides high quality consumer health information, educational solutions and tools to individuals through their hospitals, clinics, disease management organizations, government agencies, health portals and book sellers. Healthwise also advocates for policies and practices that encourage and support the active role of individuals in managing their health and promoting their own health. 0 0 22520296 27407905 See Schedule O. 22520296 1 0 0 1 0 0 0 0 0 0 1 0 0 0 0 0 1 0 0 1 1 0 0 0 0 0 0 0 0 1 1 0 0 0 0 0 0 0 0 1 0 0 0 0 0 0 0 0 0 0 0 1 72 0 1 238 1 0 0 0 0 0 0 0 0 0 0 X 11 9 1 0 1 0 0 0 0 1 1 0 0 1 1 1 1 1 1 1 1 0 X Eileen Casal General Counsel 2083451161 2601 N Bogus Basin Road Boise ID 83702 Donald W Kemper 50.00 X X 826747 0 99092 Dr Steven Schneider 8.00 X 40173 0 0 Richard Skinner 2.00 X 0 0 0 Edward Gellert 2.00 X 0 0 0 Patricia Raino 2.00 X 0 0 0 Archie Clemins 2.00 X 0 0 0 Jim Everett 2.00 X 0 0 0 Cheryl Larabee 2.00 X 0 0 0 Ruth Prince 2.00 X 0 0 0 Kristi Saucerman 2.00 X 0 0 0 Daina Middleton 2.00 X 0 0 0 Ted Epperly 2.00 X 0 0 0 James Giuffre 50.00 X 243858 0 61156 A James Balkins III 50.00 X 238259 0 40540 Dr Martin Gabica 50.00 X 238556 0 41053 Eileen Casal 50.00 X 213390 0 26683 Neal Benz 50.00 X 182621 0 36172 Leslie Kelly-Hall 50.00 X 174634 0 28257 Karen Baker 50.00 X 179133 0 27659 Molly Mettler 30.00 X 119344 0 19786 Jason Burum 50.00 X 185959 0 22575 Carol Casler 50.00 X 105877 0 17320 Mitzi Jensen 50.00 X 155045 0 18534 Ken Long 50.00 X 145945 0 30713 Robert Long 50.00 X 150101 0 19480 Phyllis Royston 50.00 X 119474 0 15991 Ines Vigil 50.00 X 136103 0 7493 Michael Lauber 50.00 X 215952 0 31104 Brigid Runyon 50.00 X 200570 0 11111 Bruce Hedemark 50.00 X 139961 0 16185 Dr Adam Husney 50.00 X 158523 0 27330 Debbie Johnson 50.00 X 157263 0 30106 David Mink 50.00 X 142897 0 26896 Dr Kathleen Romito 50.00 X 141640 0 28424 4612025 0 683660 31 0 1 0 Enlaso 9543 W Emerald St Ste 105 Boise ID 83704 Translation Services 173197 Epic Systems Box 88314 Milwaukee WI 53288 Referral Fees 163013 2 Book training/consulti 511130 4875 4875 4875 44101 44101 30511353 3122716 27388637 27388637 Misc. License Fees/Cha 900099 7700 7700 Honoraria 900099 6000 6000 Customer Finance Charg 900099 623 623 70 70 14393 27452006 27407905 0 44101 X 3760985 2454801 1306184 14964022 12904025 2059997 864158 745923 118235 2169617 1742052 427565 1237418 1050229 187189 38818 20352 18466 29780 29780 5650 5650 490064 373137 116927 126976 126432 544 106023 28593 77430 1094174 1094174 504556 686 503870 623558 537380 86178 210675 206319 4356 862071 862071 70618 70618 Publications and Subscr 51975 46515 5460 Memberships and Dues 37862 28042 9820 Staff Procurement 15902 15902 Bad Debt 14664 14664 34969 2255810 -2220841 27314535 22520296 4794239 0 1366303 2160112 2184400 3730927 4719467 2749399 40557 65953 687348 384020 16794157 5547356 12006850 11246801 1537514 1924432 99129 352430 22641568 22614074 2102205 2616935 18925 1386874 1484075 1284337 533458 4792341 4634468 X 17849227 17979606 17849227 17979606 22641568 22614074 X 137471 -7092 X 0 1 1 X 0 X 225 225 28648885 28146995 27224776 28484153 30522297 143027106 28648885 28146995 27225001 28484153 30522297 143027331 0 12235790 12367159 12423914 10921113 11867040 59815016 12235790 12367159 12423914 10921113 11867040 59815016 83212315 241375 103223 21223 23531 51801 441153 241375 103223 21223 23531 51801 441153 40268 2227 858 623 43976 28930528 28252445 27246224 28508542 30574721 143512460 0.57980 0.56500 0.00310 0.00600 X Schedule A, Part II, Line 12, Explanation of Other Income: Client Finance Charges 27314535 27314535 1000000 250000 0 0 1000000 1000000 1000000 1000000 4000000 6000000 24981 737 0 25718 250000 250000 250000 250000 1000000 1500000 1275909 1275909 11916976 3020531 8896445 3601272 2526825 1074447 11246801 27452006 27314535 137471 -7090 -7090 130381 27444916 -7090 -7090 27452006 0 27452006 27314535 0 27314535 0 27314535 North America 0 31 Program Services Health Info/Tools 99395 Europe 0 1 Program Services Health Info/Tools 18901 Sub-Saharan Africa 0 0 Program Services Health Info/Tools South Asia 0 0 Program Services Health Info/Tools 4257 East Asia & Pacific 0 0 Program Services Health Info/Tools 6663 0 32 0 0 0 32 129216 0 129216 0 0 0 0 0 0 Method Used to Acccount for Expenditures: Schedule F, Part I, Line 3: Healthwise, as part of its exempt mission, licenses its consumer health information to various organizations and governments in Canada, Western Europe, India, Australia and South Africa. As part of our licensing we have various arrangements (e.g. independent contractors) for translation and localization of content, which expenses are offset by licensing of Healthwise intellectual property, including health information content. From time to time Healthwise will have employees from the U.S. travel to our clients in Canada and other countries. All amounts listed reflect expenditures only, as we do not have any investments in these regions. X X X X 0 1 0 1 0 0 0 1 0 Donald W Kemper 316268 0 510073 0 406 0 83817 0 15275 0 925839 0 481647 0 James Giuffre 236390 0 7210 0 258 0 43393 0 17763 0 305014 0 0 0 A James Balkins III 232568 0 5433 0 258 0 20377 0 20163 0 278799 0 0 0 Dr Martin Gabica 234605 0 3555 0 396 0 19326 0 21727 0 279609 0 0 0 Eileen Casal 209816 0 3160 0 414 0 17943 0 8740 0 240073 0 0 0 Neal Benz 178150 0 4213 0 258 0 13209 0 22963 0 218793 0 0 0 Leslie Kelly-Hall 170182 0 4038 0 414 0 12250 0 16007 0 202891 0 0 0 Karen Baker 174594 0 4023 0 516 0 11856 0 15803 0 206792 0 0 0 Jason Burum 150052 0 35745 0 162 0 7688 0 14887 0 208534 0 0 0 Mitzi Jensen 144778 0 10129 0 138 0 10267 0 8267 0 173579 0 0 0 Ken Long 142162 0 3363 0 420 0 9182 0 21531 0 176658 0 0 0 Robert Long 147327 0 2220 0 554 0 10139 0 9341 0 169581 0 0 0 Michael Lauber 62825 0 152707 0 420 0 9901 0 21203 0 247056 0 0 0 Brigid Runyon 89440 0 110986 0 144 0 9972 0 1139 0 211681 0 0 0 Bruce Hedemark 62815 0 77098 0 48 0 7796 0 8389 0 156146 0 0 0 Dr Adam Husney 156149 0 2284 0 90 0 9752 0 17578 0 185853 0 0 0 Debbie Johnson 58894 0 98008 0 361 0 8253 0 21853 0 187369 0 0 0 David Mink 61182 0 81553 0 162 0 7396 0 19500 0 169793 0 0 0 Dr Kathleen Romito 139848 0 1732 0 60 0 9636 0 18788 0 170064 0 0 0 Supplemental Information Part III Part I, Line 4b: The Organization maintained a retention agreement with the Chief Executive Officer (CEO), which provided incentive compensation to continue his employment with the Organization. The retention agreement (which replaced a 1996 termination benefit agreement) was based on the services provided by the CEO and his continued employment with the Organization from February 1996 to April 2011. Under the terms of the agreement, the Organization was obligated to pay the CEO a lump sum payment of $500,000 provided he was continuously employed by the Organization until April 15, 2011 or his employment was terminated prior to that date due to death or disability. The conditions of this agreement were satisfied in April 2011. The amount reported in Column B(ii), Column F and Part VII, Section A, Form 990 reflect the lump sum payment of $500,000 which was ratably accrued over the fifteen year term of the agreement. On May 5, 2011 the organization entered into a new retention agreement with the CEO to provide incentive compensation to futher continue his employment with the Organization. Under the terms of the agreement the Organization will pay the CEO a lump sum of $500,000 provided he remains continuously employed until April 1, 2016. An additional payment of $100,000 will be provided to the CEO based on his continued employment through April 15, 2017. Column C and Part VII, Section A, Form 990 include $66,666.64 of accrued compensation for the calendar year 2011. On July 22, 2011 the Organization entered into a retention agreement with its President and Chief Operation Officer (COO) to provide incentive compensation to him to continue his employment with the Organization. Under the terms of this agreement, the Organization will pay the COO a lump sum payment of $300,000 provided he remains employed by the Organization through July 15, 2017. Column C and Part VII, Section A, Form 990 include $22,916.68 of accrued compensation for the calendar year 2011. Part I, Line 5a: In order for Healthwise to meet its mission of maximizing delivery of consumer health information and tools, Healthwise works with a variety of organizations that are active in the field of health education. These range from other nonprofit organizations to for-profit web portals. In order to accomplish this exempt mission, a small number of employees (less than 5%) are charged with the assignment of enhancing our distribution through building relationships with these organizations. These Healthwise employees' compensation is based partially on the results of their efforts tied to gross revenues received. It should be noted that none of the compensation paid is based on net revenue. The setting of these representatives' total compensation is reviewed carefully in comparison to market studies as benchmarks of reasonableness. Part I, Line 7: In the course of fulfilling its exempt mission, Healthwise endeavors to measure its mission accomplishment through tracking of mission points. Mission points are not tied to gross or net income. Annually, the Board determines if any additional compensation above the employees' base remuneration is to be paid based on mission accomplishment as measured by mission points, the fulfillment of mission efforts through the development of new health information materials and other mission criteria. This compensation is discretionary by the Board and, therefore, considered non-fixed. If the mission accomplishment is achieved, then the Board takes into account the financial capabilities of Healthwise to pay such additional compensation so as not to jeopardize its operating ability, as well as reviewing total compensation to assure that all compensation falls within the reasonable remuneration factors as a tax-exempt organization. Once the Board establishes if there will be a payment and the percentage of base pay used to calculate such payment, then the formula used to determine the payments is applied for payment determination to all employees, including officers. When paid, the amount of such mission based remuneration is a percentage of the employee's compensation. Certain officers of Healthwise are eligible for this additional compensation based on a multiplier of (up to 2.2X) the Board approved percentage. Idaho Housing and Finance Association 820302333 2006-01-19 3520000 To fund additional facilities 0 0 0 2986542 3520000 83291 3436709 2006 0 0 1 1 0 0 0 0 0.00000 0.00000 0.00000 1 0 0 0 0 0 0 Molly Mettler Officer/Family 119344 Employment 0 Molly Mettler is a family member of Don Kemper, CEO. She is also an officer of the organization. Form 990, Part 1, Question 1: The greatest untapped resource in health care is the consumer. Healthwise is helping to tap it almost 100 million times a year. We are systematically expanding the role of the patient in health care to do more for themselves and to share with their doctors in developing care plans and making medical decisions. Founded in 1975 with the simple mission "to help people make better health decisions," Healthwise has become the world's most used source of unbiased, evidence-based consumer health information. The premise for Healthwise's mission is even more applicable today than it was in 1975. Healthwise has stood true to its objectives and purposes stated in its formation documents, including: To plan, develop, evaluate and promote practical health education programs that can plan an important role in helping the individual: I. To understand his/her health and how to preserve it. II. To understand the nature of various diseases. III. To make intelligent use of available health services. IV. To improve his/her behavior regarding health affecting practices and activities. In 2011 people turned to Healthwise information and tools almost 100 millions times. Through the use of its books and other print materials, point-of-care patient education, online Healthwise knowledgebase, interactive multimedia virtual-coaching conversations, ongoing healthmastery programs, and other materials, Healthwise helps people take a more active role in their health and health care. Healthwise informaton and tools help people self manage chronic disease, provide self-care for minor and acute problems, and participate in shared decision-making with their health care providers for critical treatment options. Healthwise works with a broad network of organizations throughout the U.S., Canada and the world. Hospitals, health plans, consumer health portals, disease management companies, clinics, electronic medical records companies, and government agencies provide Healthwise information to their patients, members and the general public. Historically, Healthwise's funding comes from government contracts, foundation grants, donations, and largely from license fees charged to its distribution network. All funds are reapplied to the pursuit of the Healthwise health education-focused mission. Nearly all people who access Healthwise information are provided the materials free of charge by the sponsoring organization. Healthwise is a not-for-profit organization based in Boise, Idaho. Healthwise has been nationally recognized not only for the quality of its content, but also for the quality of its workplace culture. Those interested in learning more about Healthwise are invited to visit its website at www.healthwise.org. Form 990, Part III, Question 4a: Everything Healthwise does is in support of our mission to help people make better health decisions. Our focus is on getting the right information and tools to the right person at the right time to help them do three things critical to the improvement of health care in America: 1. To help them provide as much care for themselves as they can do. This includes medical self-care and wellness activities along with navigating the health care system. 2. To help them ask for the care they need. We give the patient plain language guidelines for when medications, treatments and tests are recommended for specific medical conditions. 3. To help them say "no" to care that is not right for them. It is often up to the patient to determine when the risks of a treatment outweigh the benefits. In the past year Healthwise information and tools were used almost 100 million times by people hoping to take an informed role in their own health care and wellness. Our purpose is achieved everytime an individual uses our information and tools to make better health and health care decisions. Form 990, Part VI, Section A, line 2 Donald Kemper, Chairman of the Board and CEO, is married to Molly Mettler, Senior Vice President. Dr. Martin Gabica, CMO, and Dr. Steve Schneider, Director, are both partners in Idaho Wellness Partners, a real estate partnership. Cheryl Larabee (a Director of Healthwise until January 23, 2012) and Ruth Prince a current Director of Healthwise are employees of Boise State University. Cheryl Larabee is the Associate V.P. for University Advancement and Ruth Prince works in the Admissions office. Ted Epperly and Steven Schneider, MD are Directors of Healthwise. Ted Epperly is the Program Director and CEO of the Family Medicine Residency of Idaho (FMRI) and Steven Schneider, MD, occasionally works in the FMRI clinic teaching medical residents and supervising their care. Form 990, Part VI, Section A, line 4 In December 2011 the Board of Directors approved amendments to Healthwise's bylaws to increase the maximum size of the Healthwise Board from 9 to 11 members and to allow for the separation of the Chairman and CEO positions. Form 990, Part VI, Section B, line 11 Prior to filing the Form 990 each member of the Board of Directors is provided a copy of the Form 990 to review. The directors are encouraged to ask any questions regarding the filing and given the opportunity to contact the CEO, CFO and or General Counsel. If a regular board meeting is not scheduled prior to the filing, then at the discretion of the board, if they deem it advisable, a special meeting may be called to discuss the Form 990. Form 990, Part VI, Section B, line 12c All board members, officers and key employees are required to annually review the conflict of interest policy and sign a disclosure form. Form 990, Part VI, Section B, line 15 The following procedures are in place for setting and reviewing CEO, officers and key employees' compensation (no director compensation is paid): I. Compensation is reviewed and approved by the board established Audit and Executive Compensation Committee (now known as the Audit, Finance and Compensation Committee (AFC Committee)) consisting of disinterested persons. Persons with conflicts of interest are not involved in this review or approval for any position that may involve such conflict. II. Compensation is reviewed and approved using comparable compensation data for similarly qualified persons in functionally comparable positions at similarly situated organizations. The source data used is based on multiple compensation surveys. III. There is contemporaneous documentation and record keeping with respect to the deliberations and decisions regarding the compensation arrangements. The documentation includes terms of compensation, members of the committee/board present for the decision and discussion, comparable data used and the basis for the decision made. IV. The Board of Directors has access to all AFC Committee decisions regarding the results of this process and in addition, the Board directly handles the setting of the compensation for the CEO, Donald Kemper, and his spouse, Molly Mettler, who currently holds the position of Senior Vice President. V. Additionally, the AFC Committee, under the direction of the Board of Directors, engaged an independent compensation consultant in 2011 to review total compensation for the positions of CEO and COO/President. The AFC Committee received a comprehensive executive compensation study based on competitive review and analysis of current total compensation for the CEO and COO/President positions as compared to published survey data and peer group data. The independent compensation consultant also provided an opinion on the reasonableness of the total compensation packages for the CEO and COO/President. Form 990, Part VI, Section C, line 19 Form 990, Part VI, Section C, Line 19: All documents, such as the Form 990 and Articles of Incorporation, are available upon request from the CEO, General Counsel or the CFO's office. Changes in Net Assets or Fund Balances: Form 990, Part XI, line 5: Unrealized loss on short term and long term investments as of June 30 each year (fair market value less cost) and a small rounding adjustment -7,092. Total to Form 990, Part XI, Line 5: -7,092.