2013-11-05T11:04:51-06:00 2012-12-31 911194016 CLARK NUBER PS 10900 NE 4TH STREET SUITE 1700 BELLEVUE WA 98004 990 2012-01-01 562290878 PACMED CLINICS PACM 2066214203 1200 12TH AVENUE S SEATTLE WA 98144 SCOTT COMBS 2066217203 2013-11-04 1 JANE M SEARING P00000565 4254544919 2013-10-16 2012 2016-03-07 17:11:31Z PACIFIC MEDICAL CENTERS HARVEY SMITH 1200 12TH AVENUE S SEATTLE WA 98144 261991446 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. 12 12 916 12 0 0 1156093 15152 190637742 190365075 2000844 1712372 249498 275891 194044177 192368490 69600 57000 0 0 75002699 77353993 0 0 0 110693005 109848429 185765304 187259422 8278873 5109068 121913241 130255410 38010310 42277221 83902931 87978189 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 154175982 57000 190274771 PACIFIC MEDICAL CENTERS HAS A MISSION TO PROVIDE CARE FOR THOSE WHO ARE MEDICALLY UNDERSERVED OR UNABLE TO PAY FOR HEALTHCARE SERVICES. IN 2012, THESE INDIVIDUALS ACCOUNTED FOR 9% 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 2012, GREATER THAN 10% 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 FOR SPECIALTY CARE FOR THE UNINSURED AND UNDERINSURED POPULATIONS OF KING AND SNOHOMISH COUNTIES. WE CONTINUE TO WORK CLOSELY WITH PROJECT ACCESS NORTHWEST AS THEY NOW SUPPORT OUR MISSION BY PROVIDING SCREENING AND REFERRAL MANAGEMENT TO ALL UNINSURED PATIENTS WE SEE AT PACIFIC MEDICAL CENTERS.- 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. 924483 90304 OUR INTERPRETER SERVICES DEPARTMENT FACILITATES COMMUNICATION BETWEEN OUR PROVIDERS AND NON-ENGLISH AND LIMITED ENGLISH PATIENTS. 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 OUR PROVIDERS 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. 204079 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), A PARTNERSHIP PROVIDING FREE WORKPLACE DIABETES SCREENING AND EDUCATION 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 EMPLOYEE POPULATIONS. 155304544 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 1 0 0 0 0 0 0 0 0 0 1 0 0 0 1 420 0 1 916 1 0 0 0 0 0 0 0 0 0 0 X 12 12 0 0 0 0 1 0 1 1 1 0 0 1 1 1 1 1 1 1 1 0 WA X PAUL L SHILLAM 2066214203 1200 12TH AVENUE S SEATTLE WA 98144 WILLIAM DOWLING PHD 1.00 0.00 X 0 0 0 DOROTHY GRAHAM 1.00 0.00 X X 0 0 0 MICHAL ANDERSON 1.00 0.00 X X 0 0 0 GENE COLIN 1.00 0.00 X X 0 0 0 CHARLES LARKIN 1.00 0.00 X X 0 0 0 DAN GUY III 1.00 0.00 X 0 0 0 KATHY GERSCH 1.00 0.00 X 0 0 0 STAN ROBERTS 1.00 0.00 X 0 0 0 ANNE REDMAN 1.00 0.00 X 0 0 0 KAREN GLOVER 1.00 0.00 X 0 0 0 CATHERINE GLEASON 1.00 0.00 X 0 0 0 MICHAEL MCSHERRY 1.00 0.00 X 0 0 0 HARVEY W SMITH 48.00 0.00 X 2782916 0 79166 LINDA A MARZANO 48.00 0.00 X 416368 0 80806 SCOTT L COMBS 48.00 0.00 X 320875 0 83214 PAUL GOEBEL 48.00 0.00 X 321384 0 98921 VIKRAM DABHI 48.00 0.00 X 597174 0 89910 GINA L MARBLE 48.00 0.00 X 239637 0 94726 ALLEN J SALMIERI 48.00 0.00 X 264862 0 78075 DAVID ROSS 48.00 0.00 X 93306 0 10463 KARYN R BECKLEY 48.00 0.00 X 361947 0 49955 MARSHALL D BEDDER 48.00 0.00 X 696686 0 93069 CHRISTOPHER A KUNTZ 40.00 0.00 X 646161 0 96234 NIRAJ PATEL 48.00 0.00 X 989673 0 35152 CHAD J MARION 48.00 0.00 X 1068516 0 128567 TONY H HUYNH 48.00 0.00 X 703597 0 97644 9503102 0 1115902 146 0 1 0 INLAND IMAGING BUSINESS ASSOCIATES 801 SOUTH STEVENS STREET SPOKANE WA 99204 DIGITAL IMAGE READING 4099376 K&L GATES 925 FOURTH AVENUE SUITE 2900 SEATTLE WA 981041158 LEGAL SERVICES 409569 RANCE HUTCHINGS 1945 SOUTH 800 W MAPLETON UT 84664 CONSULTING 338391 STOEL RIVES LLP 600 UNIVERSITY STREET SUITE 3600 SEATTLE WA 98101 LEGAL SERVICES 312334 MONARCH-KNEIS INSURANCE SERVICES LLC 655 MONTGOMERY STREET SAN FRANCISCO CA 94111 INSURANCE BROKER 267435 10 15152 15152 MEDICAL GROUP PRACTICE 621110 190274771 190274771 INTERPRETER SERVICES 621110 90304 90304 190365075 1582192 1582192 367327 101592 265735 265735 265735 69643154 8390 69521364 0 121790 8390 130180 130180 SETTLEMENT INCOME 900099 10156 10156 10156 192368490 190365075 0 1988263 57000 57000 6063702 687084 5376618 57714789 46692901 11021888 2472319 1892688 579631 7317687 5417949 1899738 3785496 2679493 1106003 528000 528000 817461 293951 523510 134991 134991 61706 61706 3282853 2178444 1104409 653640 541386 112254 573465 368506 204959 6871423 5266677 1604746 224623 83740 140883 52848 52848 5820787 3307695 2513092 3000799 2037934 962865 PURCHASED MEDICAL SVCS 50552782 50552782 SUPPLIES - DRUGS 21171235 21171235 PURCHASE NON-MED SVCS 4358042 2633073 1724969 CONTRACT EMPLOYEES 2840762 2457865 382897 8903012 6456141 2446871 187259422 155304544 31954878 0 30804342 28376217 5435300 12608824 4924631 5228242 138582 161679 2026643 2098518 62932246 35368217 28143761 27564029 48037663 49675785 60169 94955 2342150 4447161 121913241 130255410 32473296 36546108 635929 211848 4901085 5519265 38010310 42277221 X 83802931 87978189 100000 0 83902931 87978189 121913241 130255410 5109068 -1033810 0 X 0 1 X 1 0 X 1565259 1438769 1817594 1156093 15152 5992867 163971975 174950956 183911527 190637742 190465075 903937275 165537234 176389725 185729121 191793835 190480227 909930142 0 0 0 909930142 1631898 1271258 1809632 2182329 1949519 8844636 1631898 1271258 1809632 2182329 1949519 8844636 341226 1750 5563 348539 1693899 250000 10156 1954055 167510358 179356632 187794316 193976164 192439902 921077372 0.98790 0.98660 0.00960 0.01060 X 0 1 0 0 0 0 1 254062 0 0 254062 0 EXPLANATION OF LOBBYING ACTIVITIES: 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 23562855 12509139 11053716 36483763 22859078 13624685 623530 623530 27564029 PROFESSIONAL LIABILITY RESERVE 2201452 CAPITAL LEASE OBLIGATIONS 964568 OTHER LONG TERM LIABILITIES 2353245 5519265 191383360 370077 -1456799 -1086722 192470082 -101592 -101592 192368490 187308102 1505479 1505479 185802623 1456799 1456799 187259422 PART XI, LINE 2D - OTHER ADJUSTMENTS: BAD DEBT EXPENSES -1,456,799. PART XI, LINE 4B - OTHER ADJUSTMENTS: RENTAL EXPENSES -101,592. PART XII, LINE 2D - OTHER ADJUSTMENTS: RENTAL EXPENSES 101,592. NET UNREALIZED LOSS ON SECURITIES 1,403,887. PART XII, LINE 4B - OTHER ADJUSTMENTS: BAD DEBT EXPENSE 1,456,799. 1 PACFIC SCIENCE CENTER 200 2ND AVENUE N SEATTLE WA 98109 910750867 501(C)(3) 50000 0 CONTINUING SUPPORT 1 PROCEDURE FOR MONITORING GRANTS IN THE U.S.: PART I, LINE 2: SCHEDULE I, 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 1 1 X X X X X X 0 1 0 0 0 0 0 0 0 HARVEY W SMITH 484462 0 114693 0 2183761 0 22546 0 56620 0 2862082 0 2183081 0 LINDA A MARZANO 344209 0 51176 0 20983 0 47095 0 33711 0 497174 0 17179 0 SCOTT L COMBS 271014 0 38789 0 11072 0 41805 0 41409 0 404089 0 10417 0 PAUL GOEBEL 280604 0 40100 0 680 0 0 0 98921 0 420305 0 0 0 VIKRAM DABHI 554502 0 21476 0 21196 0 60406 0 29504 0 687084 0 20516 0 GINA L MARBLE 212716 0 26352 0 569 0 35394 0 59332 0 334363 0 0 0 ALLEN J SALMIERI 231071 0 33210 0 581 0 34727 0 43348 0 342937 0 0 0 KARYN R BECKLEY 231653 0 33210 0 97084 0 40098 0 9857 0 411902 0 97084 0 MARSHALL D BEDDER 678721 0 15823 0 2142 0 66211 0 26858 0 789755 0 0 0 CHRISTOPHER A KUNTZ 598719 0 20204 0 27238 0 65912 0 30322 0 742395 0 26558 0 NIRAJ PATEL 929870 0 29926 0 29877 0 0 0 35152 0 1024825 0 29877 0 CHAD J MARION 1039738 0 27320 0 1458 0 92287 0 36280 0 1197083 0 0 0 TONY H HUYNH 682850 0 20067 0 680 0 66797 0 30847 0 801241 0 0 0 PART I, LINE 1A THE ORGANIZATION PROVIDED FIRST CLASS TRAVEL FOR THE PRESIDENT/CEO ONLY WHEN IT IS THE ONLY AVAILABLE TICKET OR IT WAS THE BEST, APPROPRIATE MEANS DUE TO THE NEED TO MAKE AN EXTENDED FLIGHT. THE ORGANIZATION ALSO PROVIDED COMPANION TRAVEL FOR THE CHAIR AND THE ASSISTANT SECRETARY. THIS TRAVEL WAS CONSIDERED BUSINESS RELATED UNDER THE BOARD TRAVEL POLICY AS IT SERVED THE BUSINESS PURPOSE OF THE ORGANIZATION. SUPPLEMENTAL INFORMATION PART III PART I, LINE 4B: HARVEY SMITH RECEIVED LIQUIDATION PAYMENT FROM HIS SUPPLEMENTAL EMPLOYEE RETIREMENT PLAN IN THE AMOUNT OF $2,183,081 IN DECEMBER 2012. ADDITIONALLY, THE FOLLOWING OFFICERS AND PROVIDERS (MDS) PARTICIPATED IN THE EXECUTIVE AND PROVIDER SUPPLEMENTAL COMPENSATION PLANS (457(F)): CHAD J. MARION ($74,742) TONY H. HUYNH ($49,252) MARSHALL D. BEDDER ($48,666) CHRISTOPHER A. KUNTZ ($43,366) VIK DABHI ($40,360) LINDA A. MARZANO ($24,549) KARYN R. BECKLEY ($17,552) SCOTT L. COMBS ($19,259) ALLEN J. SALMIERI ($17,181) GINA L. MARBLE ($13,992) HARVEY SMITH PRESIDENT/CEO OF ORGANIZATION NON-RECOURSE SPLIT DOLLAR LOAN X 0 161679 0 1 1 161679 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 CHIEF FINANCIAL OFFICER WORKS CLOSELY WITH AN OUTSIDE ACCOUNTING FIRM IN PREPARING THE RETURN AND THE FINAL DRAFT OF FORM 990 ALSO IS REVIEWED BY THE CONTROLLER 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. PACIFIC HOSPITAL PRESERVATION & DEVELOPMENT AUTHORITY 1200 12TH AVE S Q2 SEATTLE WA 98144 911153993 PRESERVATION WA 501(C)(3) LINE 6 N/A 0 0 0 0 0 0 0 0 0 0 0 1 1 1 0 0 1 0 0 0