2013-11-12T12:45:14-06:00 2012-12-31 KPMG LLP 1918 Eighth Avenue Suite 2900 Seattle WA 98101 990 2012-01-01 930933975 CAREOREGON INC % TERESA K LEARN CARE 5034161415 315 SW 5TH AVE 9TH FLOOR Suite PORTLAND OR 97204 Teresa Learn 2069134000 2013-11-11 true ROBISON Sue 2069134000 2012 2016-03-07 17:11:31Z Patrick J Curran 315 SW 5th Ave 9th Floor Portland OR 97204 630829069 false X WWW.CAREOREGON.ORG X 1994 OR CAREOREGON IS A COMMUNITY BENEFIT ORGANIZATION WHOSE MISSION IS TO ASSURE VULNERABLE POPULATIONS ACCESS TO HIGH QUALITY HEALTHCARE FROM A STABLE NETWORK BY A WELL-MANAGED, FINANCIALLY SOUND ORGANIZATION. 12 9 395 102 2575779 -256836 50000 362543 568153396 584644518 4358571 4030100 27427 191002 572589394 589228163 9034239 27674325 0 0 25644945 27965109 0 0 0 511551730 537673453 546230914 593312887 26358480 -4084724 208688201 216579544 60367871 67197514 148320330 149382030 X CAREOREGON IS A COMMUNITY BENEFIT ORGANIZATION WHOSE MISSION IS TO ASSURE VULNERABLE POPULATIONS ACCESS TO HIGH 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136450 188599 573088128 573276727 1000000 250000 1000000 1000000 1000000 1000000 4000000 6000000 336159 223836 202052 136450 898497 250000 250000 250000 250000 1000000 1500000 28751 0 52149 80900 Lobbying Activities Part II-A, Line 1 CareOregon participates in lobbying activities that include testifying at public policy hearings, meeting with legislators to discuss Oregon Health Plan related issues, hosting educational sessions and supporting or opposing ballot measures that impact Oregon Health Plan members. CareOregon does not participate or contribute to political candidate campaigns or political parties. false false 2704520 2704520 18466766 4699340 13767426 0 0 8868786 6030017 2838769 8843645 7237375 1606270 20916985 POOLED FUNDS 29808875 F 29808875 INVESTMENT IN SUBSIDIARY 11400000 457(B) PLAN ASSETS 15419 INTERCOMPANY RECEIVABLE 1159957 DEPOSIT RECEIVABLE 26136 12601512 0 CLAIMS PAYABLE 45752301 DMAP RECOUPMENT PAYABLE 1543004 457(B) PLAN LIABILITIES 15419 HOSPITAL REIMBURSEMENT PAYABLE 94329 GRADUATE MEDICAL EDUCATION PAYABLE 146814 PATIENT CENTERED PRIMARY CARE HOME PAYABLE 2559090 PRIMARY CARE RENEWAL PAYABLE 478592 MANAGED CARE TAXES PAYABLE 479553 PREMIUM DEFICIENCY RESERVE 8000000 INTERCOMPANY LIABILITIES 8799 59077901 FIN 48 Footnote: Part X, Line 2 The Internal Revenue Service has recognized CareOregon as exempt from federal income taxes under provisions of Section 501(c)(3) of the Internal Revenue Code. Income taxes arise primarily from the tax effects of the for-profit Health Plan's transactions reported in the financial statements, and consists of taxes currently due plus deferred taxes. The wholly-owned subsidiaries: CareOregon Community Health, LLC; Care Access, LLC; Columbia Pacific CCO, LLC; Jackson Care Connect, LLC; and PrimaryHealth of Josephine County CCO, LLC, are single-member limited liability corporations, working to further CareOregon's exempt purpose. These wholly-owned subsidiary LLCs are treated as disregarded entities for federal tax purposes and are reported with the parent's financial results on its Form 990. The organization recognizes the tax benefit from uncertain tax positions only if it is more likely than not that the tax position will be sustained on examination by the tax authorities, based on the technical merits of the position. The tax benefit is measured based on the benefit that has a greater than 50% likelihood of being realized upon ultimate settlement. The Organization recognizes interest and penalties related to income tax matters in interest expense and other administrative expenses, respectively. Management regularly assesses the likelihood that deferred tax assets will be recovered from future taxable income, and records a valuation allowance, if necessary, to reduce deferred tax assets to the amounts believed to be realizable. true Albertina Kerr Centers 424 NE 22nd Avenue Portland OR 97232 930386780 501(c)(3) 10179 SERVICE FOR DISABLED CHILDREN Catholic Charities 2740 SE Powell Blvd 1 Portland OR 97202 930386801 501(c)(3) 10000 Event Sponsorship CCO Oregon PO Box 82817 Portland OR 97282 462004054 501(c)(3) 25000 TRANSFORMING CARE 2013 SPONSORSHIP Central City Concern 232 NW Sixth Avenue PORTLAND OR 97209 930728816 501(c)(3) 50629 SPONSORSHIP TO SUPPORT PERSONAL AND COMMUNITY TRANSFORMATION Community Health Advocate of Oregon 310 SW 4th Ave Ste 200 Portland OR 97204 061780181 501(c)(4) 17500 2012 HEALTH FORUM SPONSOR Children First for Oregon PO Box 14914 PORTLAND OR 972930914 943168157 501(c)(3) 20000 CHANGE AGENT SPONSORSHIP EVENTS-KEEPING KIDS HEALTHY Clackamas County Community Health 2051 Kaen Rd Ste 367 OREGON CITY OR 97045 936002286 Clackamas Cnty 20000 TO FULFILL COMMITMENTS MADE IN THE MULTICARE AGREEMENT Community Health Leadership Network 1910 E 4th Ave NE PMB 212 OLYMPIA WA 98502 522305386 501(c)(3) 6500 CONFERENCE CONTRIBUTION FOR SCHOLARSHIPS Oregon's Health CO-OP 315 SW Fifth Ave Ste 900 Portland OR 97204 453321455 501(c)(29) 1000000 CONTRIBUTION TO FUND MARKETING Gladstone Center for Children and Families 17789 Webster Road GLADSTONE OR 97207 931284265 501(c)(3) 25000 SUPPORT HEALTH CARE PROGRAM Health Share of Oregon 208 SW 5th Ste 400 Portland OR 97204 455093195 501(c)(3) 16637704 Set Up CCO Rest. Reserve & Start Up Northwest Health Foundation 221 NW 2nd Suite 300 Portland OR 97209 911854545 501(c)(4) 40000 INVEST IN OREGON ALLIANCE and expansion of releasing time to care program Virginia Garcia PO Box 568 Cornelius OR 97113 930717997 501(c)(3) 27500 SPONSORSHIP OF HEALTHCARE SYMPOSIUM & TO FULFILL COMMITMENTS MADE IN MULTICARE AGREEMENT Yamhill CCO PO Box 40328 Portland OR 972040328 364742731 501(c)(3) 3500000 RESERVES GRANT & TRANSFORMATION FUND UpStream Public Health 240 N Broadway Portland OR 97227 421579435 501(c)(3) 10000 DENTAL HEALTH AWARENESS PROGRAM De Paul Treatment Centers Inc PO Box 3007 Portland OR 97208 930706892 501(c)(3) 23000 SPONSORSHIP TO SUPPORT ORGANIZATIONAL DEVELOPMENT The Oregon Community Foundation 3455 SW US Veterans Hospital Rd Portland OR 97239 200195556 501(c)(3) 20000 PREVENTION & WELLNESS HEALTH DEMONSTRATION PILOT PROJECT Oregon Public Health Institute 315 sw 5TH Ave Ste 202 Portland OR 97204 931259522 501(c)(3) 26500 OPERATIONAL SPONSORSHIP & SUPPORTING SPONSOR OF PUBLIC HEALTH GENIUS AWARDS LUNCHEON Northwest Regional Primary Care Assoc 6512 23rd Ave Suite 305 Seattle WA 98117 911252785 501(c)(3) 10000 SPONSORSHIP OF CONFERENCES FOR HEALTH LEADERSHIP North by Northeast 3030 NE Martin Luther King Jrd Blvd Portland OR 97212 721618287 501(c)(3) 20000 SPONSORSHIP TO EXPLORE FEASIbILITY OF COORDINATED CARE RESPONSE TO NEEDS OF AFRICAN AMERICANS IN PORTLAND METRO Neighborhood Health Center 3720 SW 141st Ave Suite 100 Beaverton OR 97005 273524752 501(c)(3) 3627931 OPERATING EXPENSE DONATION & 401K DISCRETIONARY CONTRIBUTION NGrC 7555 SW Hermoso Way 200 Tigard OR 97223 200516601 297425 CCO FORUM CONFERENCE & CCO LECTURE SERIES Multnomah County 421 SW Oak Street 201 Portland OR 97204 936002309 Multnomah Cnty 2075000 TO FULFILL COMMITMENTS MADE IN THE MULTICARE AGREEMENT & SUPPORT EXPANSION OF ACCESS TO PRIMARY CARE SERVICES AT THE COUNTY'S SOUTHEAST HEALTH CENTER Morrison Child and Family Services 11035 NE Sandy Blvd Portland OR 97220 930354176 501(c)(3) 15000 SPONSORSHIP OF CONTEMPORARY FAMILIES 2012 CONFERENCE NW Health Foundation 221 NW Second Ave Suite 300 portland OR 97209 911854545 501(c)(3) 106200 INVEST IN OREGON ALLIANCE CONTRIBUTION 19 6 Grant Monitoring Part I, Line 2 Assistance is provided to organizations in our service area who demonstrate a financial need in regard to improving the delivery of health services in line with our exempt purpose and mission. CareOregon considers each case to verify that the need is documented, legitimate and substantial in nature. Following disbursement of funds, follow-up contact is performed, either verbally or in writing, to verify the appropriate use of the funds, to the extent possible. X true true X X X X false false false false false false false true false David E Ford 308323 0 67856 0 22500 0 22500 0 22360 0 443539 0 0 0 Carolyn J Rankin 252251 0 53779 0 22500 0 22500 0 10725 0 361755 0 0 0 Margaret S Rowland 241045 0 26091 0 22500 0 22500 0 12910 0 325046 0 0 0 David Labby 282928 0 23803 0 22500 0 21866 0 11044 0 362141 0 0 0 Patrick J Curran 143574 0 13615 0 22500 0 15391 0 12603 0 207683 0 0 0 Teresa K Learn 140634 0 13092 0 17000 0 14711 0 11564 0 197001 0 0 0 Martin P Taylor 142934 0 14078 0 3216 0 14474 0 9409 0 184111 0 0 0 REBECCA RAMSAY 144310 0 15450 0 0 0 11570 0 23528 0 194858 0 0 0 STEFANIE CAO 142238 0 0 0 17000 0 14247 0 10747 0 184232 0 0 0 James W Slater 134341 0 14515 0 3198 0 14391 0 24077 0 190522 0 0 0 NON-FIXED PAYMENTS SCHEDULE J, PART I, LINE 7 THE SENIOR MANAGEMENT TEAM IS ELIGIBLE FOR A BONUS DEPENDING ON THE PERFORMANCE AGAINST THE COMPANY'S GOALS. HEALTH CLUB DUES SCHEDULE J, PART I, LINE 1A CAREOREGON REIMBURSED HEALTH CLUB DUES FOR PATRICK CURRAN, CEO, PRESIDENT & BOARD DIRECTOR AND REBECCA RAMSY, DIRECTOR OF COMMUNITY CARE IN THE AMOUNTS OF $420 AND $360, RESPECTIVELY. THIS REIMBURSEMENT WAS INCLUDED AS TAXABLE COMPENSATION TO BOTH PARTIES. SUSAN CLACK MD BOARD DIRECTOR 156401 REFER TO PART V false PHILIP MILLER MD SPOUSE OF BOARD DIRECTOR 104659 REFER TO PART V false Business Transactions Involving Interested Persons Part IV DR. SUSAN CLACK, A CAREOREGON BOARD MEMBER, IS A BOARD MEMBER, CEO AND PROVIDER AT PACIFIC MEDICAL GROUP, WHICH RECEIVED PAYMENTS OF $156,401 FOR HEALTH CARE SERVICES AND QUALITY IMPROVEMENTS. CAREOREGON CONSIDERED ALTERNATIVES TO THIS TRANSACTION AND DR. SUSAN CLACK REFRAINED FROM VOTING THE APPROVAL OF THIS TRANSACTION. THE TRANSACTION AMOUNTS PAID WERE NEGOTIATED AT ARMS LENGTH. DR. PHILLIP MILLER, HUSBAND OF CAREOREGON BOARD MEMBER COLLEEN CAIN, WAS EMPLOYED AS A PROVIDER IN ONE OF NEIGHBORHOOD HEALTH CENTER CLINICS WHICH CARECAREGON CONTRIBUTED FUNDS TO COVER OPERATING COSTS. HE RECEIVED $104,659 IN COMPENSATION AND BENEFITS AS AN EMPLOYEE. CAREOREGON CONSIDERED ALTERNATIVES TO THESE TRANSACTIONS AND COLLEEN CAIN DID NOT VOTE ON THE APPROVAL OF THESE TRANSACTIONS. THE TRANSACTION AMOUNTS PAID WERE NEGOTIATED AT ARMS LENGTH. SUPPLEMENTAL INFORMATION TO 2012 FORM 990 FOR CAREOREGON, INC. CAREOREGON, INC. EIN 93-0933975 PART I, LINE 1 TAX-EXEMPT PURPOSE AND MISSION OF CAREOREGON CAREOREGON IS A NON-PROFIT HEALTH SERVICES ORGANIZATION PROVIDING HEALTH PLAN SERVICES, EDUCATION AND COMMUNITY BUILDING SUPPORT TO PARTNER HEALTH PLANS AND THEIR MEMBERS. WE ARE COMMITTED TO CULTIVATING INDIVIDUAL WELL-BEING AND COMMUNITY HEALTH REGARDLESS OF INCOME OR SOCIAL CIRCUMSTANCES, WITH A FOCUS NOT JUST ON HEALTH CARE, BUT ON TOTAL HEALTH THROUGH SHARED LEARNING AND INNOVATION. TEAMING WITH HEALTH PLAN MEMBERS, THEIR FAMILIES AND COMMUNITIES, CAREOREGON HELPS INDIVIDUALS LIVE BETTER LIVES, PREVENT ILLNESS AND RESPOND QUICKLY AND EFFECTIVELY TO HEALTH ISSUES. CAREOREGON PROVIDES CARE SUPPORT AND DISEASE MANAGEMENT SERVICES TO HIGH-RISK MEMBERS, COORDINATES CARE AND PROVIDES UTILIZATION MANAGEMENT SERVICES, OFFERS CONTINUITY OF COVERAGE FOR THOSE ELIGIBLE FOR MEDICAID, MEDICARE OR BOTH. WE SUPPORT AND ACTIVELY WORK WITH PROVIDERS AND MEDICAID COORDINATED CARE ORGANIZATIONS TO IMPLEMENT QUALITY IMPROVEMENT EFFORTS AND PRIMARY CARE REDESIGN. WE CONTRACT WITH PUBLIC AND PRIVATE PROVIDERS AND WORK WITH THE LEGISLATURE AND COMMUNITY-BASED ORGANIZATIONS TO IMPROVE THE HEALTH OF OREGONIANS. PART I, LINE 8-22 CAREOREGON EXPERIENCED AN APPROXIMATE $16.6 MILLION INCREASE IN TOTAL REVENUES AND AN APPROXIMATE $47 MILLION INCREASE IN EXPENSES IN 2012 COMPARED TO 2011. THE INCREASE IN REVENUE WAS PRIMARILY DUE TO AN INCREASE IN MEMBERSHIP RELATED TO THE TRANSITION OF MEMBERS TO COORDINATED CARE ORGANIZATIONS (CCOs) BEGINNING IN SEPTEMBER 2012 AND NEW DENTAL PROGRAM SERVICES. THE INCREASE IN EXPENSES IS MAINLY RELATED TO AN APPROXIMATE $18.6 MILLION INCREASE IN CHARITABLE CONTRIBUTIONS DURING 2012; $23 MILLION INCREASE IN MEDICAL COSTS, DENTAL COSTS, AND PASS-THROUGH REVENUE WHICH INCLUDE HOSPITAL REIMBURSEMENT ADJUSTMENT (HRA), GRADUATE MEDICAL EDUCATION (GME), AND PATIENT CENTERED PRIMARY CARE HOME (PCPCH); A $3 MILLION GAIN SHARE ACCRUAL, AND AN APPROXIMATE $2.3 MILLION INCREASE IN COMPENSATION EXPENSE. CONTRIBUTIONS WERE PRIMARILY USED TO ASSIST IN THE START-UP OF TWO OTHER CCOs UNDER THE OREGON LEGISLATURE'S PLAN TO TRANSFORM THE OREGON HEALTH PLAN (OHP) SYSTEM THROUGH CCOs. THE GAIN SHARE IS AN ARRANGEMENT WHERE GAINS GENERATED ARE INVESTED OR DISTRIBUTED BASED ON INPUT FROM THE CONTRACTED PROVIDERS IN THAT CCO. INCREASES IN COMPENSATION EXPENSE ARE RELATED TO THE INCREASE IN STAFFING DUE TO THE ADDED WORK AROUND THE CCOs. PART III, LINE 2 NEW PROGRAM SERVICES IN 2012, WE STARTED THREE NEW SUBSIDIARY COORDINATED CARE ORGANIZATIONS(CCOs) AND PLAYED A CRITICAL ROLE IN STARTING TWO OTHER INDEPENDENT CCOs. THE CCOs ARE PART OF THE OREGON LEGISLATURE'S PLAN TO MAKE MEDICAID MORE COST EFFECTIVE WHILE ENCOURAGING QUALITY OUTCOMES AND LOCAL ACCOUNTABILITY. THE NEW CCOs EACH HAVE THEIR OWN BOARD OF DIRECTORS REPRESENTING A VARIETY OF STAKEHOLDERS IN THE CCOs' REGION. THROUGH DELEGATION AND MANAGEMENT SERVICES AGREEMENTS, CAREOREGON CONTINUES TO SERVE THE 170,000 OHP MEMBERS AND REMAINS COMMITTED TO ENSURING THEY RECEIVE THE CARE THEY NEED. WE ALSO TOOK ON THE ADMINISTRATION OF MULTICARE DENTAL, NOW CALLED CAREOREGON DENTAL, WHICH PROVIDES THE ORAL HEALTH SERVICES NEEDED FOR 36,000 MEMBERS IN THE METROPOLITAN AREA. PART III, LINE 3 SIGNIFICANT CHANGES CAREOREGON'S PROGRAM SERVICES ARE CONDUCTED THROUGH CCO'S. PLEASE SEE THE PART III, LINE 2 DISCLOSURE ABOVE FOR ADDITIONAL INFORMATION. PART III, LINE 4 STATEMENT OF PROGRAM SERVICE ACCOMPLISHMENTS A. THROUGH THE CCOS, CAREOREGON PROVIDES HEALTH CARE SERVICES TO ITS MEMBERS BY CONTRACTING WITH NETWORKS OF COMMUNITY AND PRIVATE MEDICAL PROVIDERS THROUGHOUT THE STATE OF OREGON. B. ON BEHALF OF HEALTH PLAN OF CAREOREGON, A C CORPORATION RELATED TO CAREOREGON, WE ADMINISTER CAREOREGON ADVANTAGE PLUS, A SPECIAL NEEDS PLAN THAT PROVIDES CONTINUITY OF COVERAGE FOR MEMBERS WHO ARE DUALLY ELIGIBLE FOR MEDICARE AND MEDICAID. THE CONTINUITY BENEFITS BOTH PATIENTS AND PROVIDERS BY ENSURING A COORDINATED AND CONVENIENT MEANS OF RECEIVING AND DELIVERING QUALITY CARE. WE ALSO ADMINISTER CAREOREGON ADVANTAGE STAR, A LOW COST MEDICARE ADVANTAGE PLAN. THE EXPENSES INCURRED BY HEALTH PLAN OF CAREOREGON TO OPERATE THE PLAN TOTAL $101,215,954 WITH RELATED REVENUES OF $105,567,283 C. CAREOREGON CONTRIBUTED $20 MILLION TO THE INDEPENDENT CCOs TO HELP THEM MEET THEIR INITIAL RESERVE REQUIREMENTS AND AN ADDITIONAL $2 MILLION TO FOUR OF THE FIVE CCOs FOR PURPOSES OF FUNDING TRANSFORMATION PROJECTS. WE PROVIDE CONTINUING SUPPORT TO AN INDEPENDENT 501(c)(3), NEIGHBORHOOD HEALTH CENTER, WHICH RUNS CLINIC OPERATIONS AND DENTAL SERVICES TO INCREASE COMMUNITY ACCESS TO COMPREHENSIVE AND PREVENTIVE HEALTH CARE SERVICES AND TO IMPROVE HEALTH CARE STATUS OF VULNERABLE AND UNDERSERVED POPULATIONS. ITS SUCCESSFUL APPLICATION TO BECOME A FEDERALLY QUALIFIED HEALTH CENTER IN CANBY IS A MAJOR ACHIEVEMENT. WE ALSO INVEST IN THE COMMUNITY BY CONTRIBUTING TO OTHER CHARITABLE ORGANIZATIONS THAT ARE STRIVING TO IMPROVE HEALTH CARE IN OREGON. D. THE CCOs WE SUPPORT PROVIDE ACCESS FOR APPROXIMATELY 170,000 LOW-INCOME OREGONIANS. OUR WORK INVOLVES COORDINATING QUALITY HEALTH CARE FOR MEMBERS AND CONTRACTING WITH PUBLIC AND PRIVATE PROVIDERS TO PROVIDE HEALTH CARE SERVICES. WE PROVIDE CUSTOMER SERVICE FUNCTIONS FOR THESE CCOs, ASSIST WITH HEALTH IMPROVEMENT PLANS FOR THE VARIOUS COMMUNITIES AND PROVIDE TECHNICAL SUPPORT FOR INFORMATION SERVICES, COMMUNICATIONS, PROCESS IMPROVEMENT AND OTHER FUNCTIONS. THESE SERVICES RESULT IN ACCESS TO QUALITY HEALTH CARE, LOWER COSTS AND IMPROVED CARE FOR OUR MEMBERS AND FOR THE COMMUNITIES WE SERVE. IN 2012 WE PROVIDED COMMUNITY OUTREACH, SUPPORT AND CARE COORDINATION SERVICES TO HIGH RISK MEMBERS IN MULTNOMAH, WASHINGTON AND CLACKAMAS COUNTIES UNDER A CENTER FOR MEDICARE AND MEDICAID INNOVATIONS (CMMI) GRANT. THE CMMI GRANT IS A THREE YEAR AWARD AIMED AT DEVELOPING NEW INTEGRATED MODELS OF CARE TO IMPROVE HEALTH OUTCOMES AND REDUCE COSTS FOR THE ADULT MEDICAID POPULATION. APPROXIMATELY 55 NEW FTE, MOST OF WHOM ARE NON-TRADITIONAL HEALTH CARE PROFESSIONALS, HAVE BEEN HIRED, TRAINED AND DEPLOYED TO SERVE THIS POPULATION IN OUR COMMUNITY. ADDITIONALY, THESE NEW CARE MODELS HAVE MADE A SIGNIFICANT DIFFERENCE IN THE LIVES OF OVER 3,000 INDIVIDUALS. WE ENCOURAGE CLINICS TO PROVIDE THE BEST PRIMARY CARE POSSIBLE THROUGH OUR PRIMARY CARE RENEWAL ("PCR") PROGRAM. OUR PCR INITIATIVE FOCUSES ON DEVELOPING PATIENT CENTERED PRIMARY CARE HOMES IN THE PRIMARY CARE SETTING BY BUILDING SYSTEMS AND PROCESSES FOR PROACTIVE PANEL MANAGEMENT, TEAM-BASED CARE, NURSE-LED CASE MANAGEMENT, PATIENT EMPOWERMENT FOR SELF-MANAGEMENT, INTEGRATION OF PHYSICAL AND MENTAL HEALTH CARE, IMMUNIZATION AND DISEASE-SPECIFIC PATIENT REGISTRIES, AND SAME-DAY AND EXTENDED-HOUR MEMBER ACCESS TO THE CARE TEAM. ALL OF THESE IMPROVEMENTS ARE DONE WITH THE GOAL OF COST-EFFECTIVE, CONTINUOUS, COORDINATED CARE. OUR MODEL IS ONE OF LEARNING FOR THE MEMBER; ACTING FOR THE POPULATION. WE PARTICIPATE ACTIVELY IN THE INSTITUTE OF HEALTHCARE IMPROVEMENT'S "TRIPLE AIM", A NATIONAL PROGRAM THAT LOOKS AT MAXIMIZING RESULTS IN THREE AREAS: OUTCOME EXCELLENCE, PATIENT SATISFACTION AND COST EFFECTIVENESS. BY OUR WORK WITH CLINICS TO IMPROVE THEIR PATIENT-CENTERED MEDICAL HOMES IN 2012, MORE THAN 40 PERCENT OF OUR MEMBERS BENEFITTED FROM THIS ENHANCED CARE. BASED ON THAT EXPERIENCE, CAREOREGON EXPANDED THE COLLABORATIVE TO A NEW GROUP OF CLINICS (PATIENT AND POPULATION CENTERED PRIMARY CARE) IN MORE RURAL SETTINGS, TO HELP THEM TRANSFORM THEIR PROCESSES, DATA SYSTEMS, AND WORKFORCE TO IMPROVE PATIENT EXPERIENCE AND OUTCOMES. PART III, LINE 4 Statement OF PROGRAM SERVICE ACCOMPLISHMENTS WE FUND CARE SUPPORT AND SYSTEM INNOVATION ("CSSI") PROJECTS TO HELP OUR PROVIDERS FOCUS ON IMPROVING AND TRANSFORMING DELIVERY SYSTEMS AND QUALITY OF CARE FOR OUR MEMBERS. FOLLOWING THE INSTITUTE FOR HEALTH IMPROVEMENT'S "TRIPLE AIM," CSSI PROJECTS ADDRESS PERFORMANCE ON THE THREE DIMENSIONS OF CARE: 1) THE HEALTH OF THE DEFINED POPULATION; 2) THE EXPERIENCE OF CARE; AND 3) THE COST PER CAPITA OF PROVIDING CARE FOR THIS POPULATION. THE FUNDED PROJECTS TARGET PATIENT ACCESS, PATIENT SAFETY, WORKFLOWS AND REDUCTION OF MEDICAL ERRORS. REDUCING THE LATTER DECREASES RISK TO MEMBERS AND COST FOR TAXPAYERS. THERE WERE 15 PROJECTS FUNDED IN 2012. AT OUR ANNUAL CSSI CONFERENCE, PROVIDERS ARE ENCOURAGED TO SHARE THEIR INNOVATIONS WITH OTHERS IN THE COMMUNITY, FURTHER LEVERAGING IMPROVEMENTS FROM THEIR PROJECTS AND HELPING OTHER HEALTH CARE ORGANIZATIONS TO ADOPT SIMILAR IMPROVEMENTS. WE PROVIDE TRAINING AND DEVELOPMENT SUPPORT FOR OUR CSSI TEAMS BY EDUCATING THEM IN ACCELERATED PROCESS IMPROVEMENT AND LEAN METHODOLOGIES. THIS HELPS CREATE EFFICIENCIES IN THE DELIVERY SYSTEM AND PROVIDES SOME RELIEF FOR THE ONGOING CHALLENGES FACED BY THESE UNDERSERVED POPULATIONS. THE TRAINING TAKES PLACE IN OUR DEDICATED LEARNING SPACE, REFERRED TO AS THE LEARNING COMMONS, ENABLING AN ON-GOING FOCUS ON LEARNING AND IMPROVING THE QUALITY OF HEALTH CARE IN THE COMMUNITY. WE CONTINUE TO EXPAND "RELEASING TIME TO CARE". THIS IMPROVEMENT METHODOLOGY DESIGNED BY NURSES FOR USE IN A HOSPITAL SETTING USES LEAN TECHNIQUES TO ELIMINATE WASTEFUL PROCESSES, EXCESS SUPPLIES AND INTERRUPTIONS SO THAT NURSES CAN SPEND MORE TIME WITH PATIENTS. IN ADDITION TO WORKING WITH THE FOUR OREGON HOSPITALS THAT LAUNCHED THE PROGRAM IN 2010, WE HAVE EXPANDED TO EIGHT MORE HOSPITALS FROM ALASKA, CANADA, OREGON, CALIFORNIA AND MICHIGAN. CAREOREGON HAS BECOME THE NORTH AMERICAN FACILITATOR OF THIS PROGRAM, ORIGINATED BY BRITAIN'S NATIONAL HEALTH SERVICE INSTITUTE FOR INNOVATION AND IMPROVEMENT. WE ALSO LAUNCHED A PILOT PROGRAM FOR SURGICAL TEAMS, THE PRODUCTIVE OPERATING THEATER, ALSO ORGINATED BY THE INSTITUTE OF INNOVATION AND IMPROVEMENT. THE EXPERIENCE FROM THIS ONE-HOSPITAL PILOT WILL INFORM EXPANSION TO OTHERS. WE WORK WITH THE LEGISLATURE AND COMMUNITY BASED ORGANIZATIONS TO EDUCATE OTHERS ON THE NEEDS OF LOW-INCOME OREGONIANS AND TO MOVE BILLS AND MEASURES FORWARD THAT IMPROVE THE HEALTH OF LOW-INCOME OREGONIANS. PART IV, LINE 12/12A FOR THE YEAR ENDED DECEMBER 31, 2012, AN AUDIT WAS PERFORMED ON THE CONSOLIDATED ENTITY WHICH INCLUDES CAREOREGON, HEALTH PLAN OF CAREOREGON, CARE ACCESS, COMMUNITY HEALTH, COLUMBIA PACIFIC, JACKSON CARE CONNECT, AND PRIMARYHEALTH OF JOSEPHINE COUNTY. PART VI, LINE 2 MARGARET S. ROWLAND, MD, CHIEF MEDICAL OFFICER OF CAREOREGON, INC., SERVES AS A MEMBER OF THE BOARD OF DIRECTORS OF ALBERTINA KERR. CHRIS KRENK, CHIEF EXECUTIVE OFFICER OF ALBERTINA KERR, SERVES ON CAREOREGON'S BOARD OF DIRECTORS. PART VI, LINE 11A CAREOREGON'S FORM 990 IS REVIEWED BY THE CFO, FINANCE COMMITTEE AND BOARD OF DIRECTORS BEFORE IT IS FILED. THE FORM 990 IS DISCUSSED IN DETAIL AT THE FINANCE COMMITTEE MEETING PRIOR TO FILING. ALL REVIEWERS ARE GIVEN TIME TO RESPOND WITH ANY REVISIONS. AFTER INCORPORATION OF ALL REVISIONS THE FORM 990 IS REDISTRIBUTED TO THE REVIEWERS PRIOR TO FILING. PART VI, LINE 12C THE CONFLICT OF INTEREST POLICY OF CAREOREGON IS DISTRIBUTED ANNUALLY AND APPLIES TO THE FOLLOWING COVERED PERSONS: ANY DIRECTOR, CEO, COO, CMO, CFO, CONTROLLER, OTHER KEY EMPLOYEE OR ANY OTHER INDIVIDUAL IN A POSITION TO EXERCISE SIGNIFICANT INFLUENCE OVER A DECISION HAVING ECONOMIC IMPLICATIONS FOR CAREOREGON. THE CONFLICT OF INTEREST POLICY IS REVIEWED AND DISCUSSED AT AN ANNUAL BOARD MEETING AND EACH PERSON SIGNS AN AGREEMENT TO FOLLOW THE POLICY. CAREOREGON ANNUALLY CIRCULATES QUESTIONNAIRES TO COVERED PERSONS TO DETERMINE INDEPENDENCE AND DISCOVER FAMILY AND BUSINESS RELATIONSHIPS, AND THE GOVERNANCE COMMITTEE REVIEWS THESE FORMS AND COMPILES AND MAINTAINS A LIST OF POTENTIALLY CONFLICTED ENTITIES AND INDIVIDUALS. THE GOVERNANCE COMMITTEE CONTINUALLY MONITORS PROPOSED OR ONGOING TRANSACTIONS AGAINST THIS LIST AS A MEANS OF IDENTIFYING AND SCREENING FOR POSSIBLE CONFLICTS. THE GOVERNANCE COMMITTEE DEALS WITH POTENTIAL OR ACTUAL CONFLICTS, BEFORE, DURING AND/OR AFTER THE TRANSACTION HAS OCCURRED, DEPENDING ON THE CIRCUMSTANCES OF THE CONFLICT. ALL SIGNED CONFLICT OF INTEREST POLICIES AND QUESTIONNAIRES ARE RETAINED AT CAREOREGON'S OFFICE. IN THE EVENT OF A POTENTIAL CONFLICT OF INTEREST, A COVERED PERSON MUST DISCLOSE THE EXISTENCE OF HIS OR HER FINANCIAL INTEREST AND MUST BE GIVEN THE OPPORTUNITY TO DISCLOSE ALL MATERIAL FACTS TO THE BOARD OF DIRECTORS, MEMBERS OF COMMITTEES WITH BOARD DELEGATED POWERS, AND TO EXECUTIVE OFFICERS WHO ARE CONSIDERING THE PROPOSED TRANSACTION OR ARRANGEMENT. FOLLOWING THE DISCLOSURE OF THE FINANCIAL INTEREST AND ALL MATERIAL FACTS, AND AFTER ANY DISCUSSION WITH THE INTERESTED PERSON, HE/SHE LEAVES THE MEETING WHILE THE BOARD OR COMMITTEE INDEPENDENTLY DISCUSSES AND VOTES ON THE MATTER BEFORE IT. IN THE EVENT THAT A CONFLICT IS IDENTIFIED, THE BOARD OR COMMITTEE SHALL APPOINT A DISINTERESTED PERSON OR COMMITTEE TO INVESTIGATE ALTERNATIVES TO THE PROPOSED TRANSACTION OR ARRANGEMENT. AFTER EXERCISING DUE DILIGENCE, THE BOARD OR COMMITTEE SHALL DETERMINE WHETHER CAREOREGON CAN OBTAIN A MORE ADVANTAGEOUS TRANSACTION OR ARRANGEMENT WITH REASONABLE EFFORTS FROM A PERSON OR ENTITY THAT WOULD NOT GIVE RISE TO A CONFLICT OF INTEREST. IF A MORE ADVANTAGEOUS TRANSACTION OR ARRANGEMENT IS NOT REASONABLY ATTAINABLE, THE BOARD OR COMMITTEE SHALL DETERMINE BY MAJORITY VOTE OF THE DISINTERESTED DIRECTORS OR COMMITTEE MEMBERS WHETHER THE TRANSACTION OR ARRANGEMENT IS IN CAREOREGON'S BEST INTEREST. PERSONS WITH A CONFLICT ARE PROHIBITED FROM PARTICIPATING IN THE GOVERNING BODY'S DELIBERATIONS AND DECISIONS ABOUT THE TRANSACTION. PART VI, LINE 15A AND 15B MARKET DATA ON THE TOTAL COMPENSATION PACKAGE FOR EXECUTIVE POSITIONS (CEO, COO, CFO, AND CMO) IS PROVIDED ANNUALLY BY AN OUTSIDE INDEPENDENT COMPENSATION CONSULTANT USING COMPARABLE ORGANIZATIONS BY INDUSTRY, PROFIT/NON-PROFIT STATUS AND REVENUE SIZE. THE COMPENSATION COMMITTEE, CONSISTING OF A MAJORITY OF INDEPENDENT BOARD MEMBERS, REVIEWS MARKET DATA, EVALUATES CEO PERFORMANCE AND REVIEWS CEO RECOMMENDATIONS FOR COMPENSATION FOR OTHER EXECUTIVE OFFICERS. THE COMMITTEE PRESENTS ITS RECOMMENDATIONS FOR CEO TO THE BOARD. DECISIONS ARE MADE IN A BOARD MEETING. THE BOARD APPROVES THE COMPENSATION OF ALL OTHER EMPLOYEES AS PART OF THE BUDGET APPROVAL PROCESS. THE PROCESS OF DETERMINING THE COMPENSATION OF TOP MANAGEMENT OFFICIALS AND KEY OFFICERS INCLUDES A REVIEW OF AN INDEPENDENT CONSULTANT'S REPORT OF COMPARABLE SALARIES OF SIMILAR ORGANIZATIONS AND IS GUIDED BY WRITTEN COMPENSATION PRACTICES. WITH THE CEO AND CFO ABSENT FROM THE MEETINGS, EACH YEAR THE BOARD APPROVES THE SALARY OF THE CEO. THIS PROCESS WAS LAST UNDERTAKEN ON APRIL 13, 2013. PART VI, LINE 18 AND 19 THE TAX RETURN INFORMATION IS AVAILABLE UPON REQUEST. WHILE NO REQUIREMENT TO MAKE ITS GOVERNING DOCUMENTS, CONFLICT OF INTEREST POLICY AND FINANCIAL STATEMENTS AVAILABLE TO THE PUBLIC EXISTS, CAREOREGON WILL CONSIDER ALL REQUESTS FOR THESE DOCUMENTS ON A CASE BY CASE BASIS. CONSIDER ALL REQUESTS FOR THESE DOCUMENTS ON A CASE BY CASE BASIS. 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