2011-11-15T12:36:32-06:00 2010-12-31 MOSS ADAMS LLP PO BOX 22650 YAKIMA WA 989072650 990 2010-01-01 910655392 KADLEC REGIONAL MEDICAL CENTER KADL 5099464611 888 SWIFT BLVD RICHLAND WA 993523583 JULIE MEEK 5099464611 2011-11-14 1 CATHY STERBENZ 5092487750 2010 2016-02-24 21:20:13Z JULIE MEEK 888 SWIFT BLVD RICHLAND WA 993523583 282325701 0 X KADLECMED.ORG X 1947 WA THE MISSION OF KADLEC REGIONAL MEDICAL CENTER IS TO PROVIDE QUALITY HEALTH CARE TO EVERY PATIENT. 10 10 2083 500 102745 -44036 6929552 68422 255807660 277410752 706194 2322153 2327837 2358175 265771243 282159502 0 0 0 0 113291680 124648058 0 0 569157 125714120 140042854 239005800 264690912 26765443 17468590 251699356 317985379 114777460 177408729 136921896 140576650 THE MISSION OF KADLEC REGIONAL MEDICAL CENTER IS TO PROVIDE QUALITY HEALTH CARE TO EVERY PATIENT. 0 0 218247250 275676591 THE PURPOSES OF KADLEC REGIONAL MEDICAL CENTER ARE TO OPERATE EXCLUSIVELY FOR CHARITABLE, SCIENTIFIC OR EDUCATIONAL PURPOSES,WITHIN THE MEANING OF SECTION 501(C) (3) OF THE INTERNAL REVENUE CODE OF 1986, AS AMENDED, INCLUDING WITHOUT LIMITATION, TO ENGAGE IN ACTIVITIES RELATING TO THE PROVISION OF HEALTHCARE SERVICES,TO ESTABLISH AND MAINTAIN A HOSPITAL OR HOSPITALS FOR THE CARE OF PERSONS SUFFERING FROM ILLNESSES OR DISABILITIES WHICH REQUIRE THAT THOSE PERSONS RECEIVE HOSPITAL CARE, TO PROMOTE THE HEALTH OF THE COMMUNITY, TO PROMOTE AND CARRY ON SCIENTIFIC RESEARCH RELATING TO THE CARE OF THE SICK AND INJURED, AND TO PROMOTE AND CARRY ON EDUCATIONAL ACTIVITIES RELATED TO RENDERING CARE TO THE SICK AND INJURED OR THE PROMOTION OF HEALTH. 218247250 1 1 0 1 0 0 0 0 0 0 1 0 0 1 1 1 1 0 0 0 0 0 0 0 0 0 1 0 0 0 1 1 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1 0 0 0 0 1 211 0 1 2083 1 1 1 0 0 0 0 0 0 0 0 0 0 0 0 0 0 X 10 10 0 1 0 0 1 1 1 1 1 0 0 1 1 1 1 1 1 1 1 1 1 WA X X JULIE L MEEK 5099464611 888 SWIFT BLVD RICHLAND WA 993523583 VICKY CARWEIN 3.00 X 0 0 0 FRED FOSS MD 3.00 X 0 0 0 WAYNE MARTIN 3.00 X 0 0 0 JAMES MORASCH 3.00 X 0 0 0 DAVIDSON WOOD 3.00 X 0 0 0 SANDY GAMBLE 3.00 X 0 0 0 DAVID MERKLEY MD 3.00 X 0 0 0 MICHELE DICKINSON 3.00 X 0 0 0 WASSIM KHAWANDI MD 3.00 X 0 0 0 DAVID R ROACH 50.00 X 246619 0 18654 JEFFREY A CLARK 50.00 X 233466 0 22717 JULIE L MEEK 50.00 X 322919 0 25121 LARRY J CHRISTENSEN 50.00 X 174862 0 14130 WILLIAM T WINGO 50.00 X 280334 0 19672 KIRK W HARPER 50.00 X 175178 0 13074 WILLIAM C BAKER 50.00 X 261295 0 18682 LANE SAVITCH 50.00 X 340503 0 23830 RAND WORTMAN 50.00 X 597005 0 124436 GARY H RICHARDSON 50.00 X 155946 0 13124 DARLA J HARLESS 50.00 X 159009 0 13447 JANICE L ROACH 50.00 X 154518 0 12063 DIANE E PIATT 50.00 X 162941 0 9774 SANDRA R HUSTON 50.00 X 156135 0 14190 SUSAN SPOHR 50.00 X 186451 0 1595 3607181 0 344509 122 1 1 0 KADLEC MEDICAL ASSOCIATES LLC 888 SWIFT BOULEVARD RICHLAND WA 993523583 HOSPITALISTS 6222577 BOUTEN CONSTRUCTION N 627 NAPA SPOKANE WA 99220 GENERAL CONTRACTOR 5350035 PREMIER ANESTHESIA OF RICHLAND 3650 MANSELL ROAD ALPHARETTA GA 30022 ANESTHESIOLOGISTS 4972185 EPIC CORP PO BOX 88314 MILWAUKEE WI 532880314 COMPUTER NETWORK SERVICES 2918106 MCKESSON INFORMATION SOLUTIONS PO BOX 98347 CHICAGO IL 60693 COMPUTER NETWORK SERVICES 2220502 201 68422 68422 NET PATIENT REVENUE 621400 274039211 274039211 OTHER OPERATING REVENU 561499 1637380 1637380 CAFETERIA REVENUE 722320 1631416 1631416 CLINICAL ENGINEERING R 811000 102745 102745 277410752 2321902 2321902 615207 166199 449008 449008 449008 251 251 251 251 TC HOME HEALTH 900099 883363 883363 TC CANCER CENTER 900099 377112 377112 TC REGIONAL SURGERY CA 900099 290156 290156 358536 358536 1909167 282159502 277585758 102745 4402577 2836608 2661746 174862 97886439 78866085 18846404 173950 4586220 3606960 963378 15882 12151313 9556736 2552496 42081 7187478 5683779 1481734 21965 495129 495129 78492 78492 27284 27284 17923527 16621867 1301660 852365 852365 55382043 51234761 4114487 32795 2759689 2207378 513894 38417 1391261 598478 780201 12582 302365 302365 4403005 3508166 894839 11875446 9461955 2413491 3177373 3083287 94086 OUTSIDE PURCHASED SERVI 17193203 13712944 3429777 50482 TAXES 6503714 5181940 1321774 BAD DEBTS 5927722 5927722 EQUIPMENT RENTAL/LEASE 3932497 2730995 1201502 DUES,SUBSCRIPTIONS, LIC 3772419 3006565 759713 6141 4045320 3230348 814972 264690912 218247250 45874505 569157 9184726 9338587 2147700 147219 32283283 40536794 1783136 1686311 700179 1220591 245642490 101068357 138507517 144574133 52452424 103343140 14640391 17138604 251699356 317985379 25066097 29269498 77475000 132740000 1724000 1745270 683087 10491093 12992144 114777460 177408729 X 136921896 140576650 136921896 140576650 251699356 317985379 X 17468590 -13813836 X 0 1 1 X 0 X RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED 0 0 0 0 0 1 27284 0 0 0 27284 0 1069518 2824587 3894105 6552822 129492580 32121697 103923705 5081292 2999806 2081486 93379376 64223644 29155732 7242315 1723210 5519105 144574133 INVESTMENTS IN JOINT VENTURES 6552822 DEFERRED FINANCING COSTS-NET 4195651 PROFESSIONAL LIABILITY INSURANCE TRUST-NET 4547460 457B CONTRIBUTIONS 300394 DEPOSITS 601326 ORIGINAL ISSUE DISCOUNT 940951 17138604 INTEREST RATE SWAP CONTRACT 9224622 2006A BOND PREMIUM 328728 457B CONTRIBUTIONS 300394 MALPRACTICE INSURANCE 3138400 12992144 282159502 264690912 17468590 -39209 -13774627 -13813836 3654754 284648069 98307 98307 284549762 -2390260 -2390260 282159502 264690912 0 264690912 0 264690912 PART XI, LINE 8 - OTHER ADJUSTMENTS: MARKET VALUATION ACCOUNT FOR INVESTMENTS 2,390,260. INTEREST RATE SWAP CONTRACT -2,225,333. DISTRIBUTION TO KADLEC HEALTH SYSTEM -14,037,861. BOOK/TAX DIFFERENCE IN JOINT VENTURE INCOME 98,307. PART XII, LINE 2D - OTHER ADJUSTMENTS: BOOK/TAX DIFFERENCE IN JOINT VENTURE INCOME 98,307. PART XII, LINE 4B - OTHER ADJUSTMENTS: MARKET VALUATION ACCOUNT FOR INVESTMENTS -2,390,260. PART X, LINE 2: THE MEDICAL CENTER IS EXEMPT FROM FEDERAL INCOME TAX UNDER SECTION 501(C)(3) OF THE INTERNAL REVENUE CODE EXCEPT TO THE EXTENT OF UNRELATED BUSINESS TAXABLE INCOME AS DEFINED UNDER IRC SECTIONS 511 THROUGH 515. EFFECTIVE JANUARY 1, 2009, THE MEDICAL CENTER ADOPTED ACCOUNTING FOR UNCERTAIN TAX POSITIONS. THE ACCOUNTING STANDARD PRESCRIBES A RECOGNITION THRESHOLD AND MEASUREMENT PROCESS FOR UNCERTAIN TAX POSITIONS. AS OF DECEMBER 31, 2010 AND 2009, THE MEDICAL CENTER HAD NO UNCERTAIN TAX POSITIONS REQUIRING ACCRUAL. 1 1 1 X 1 X 1 1 1 0 1 1 8144 8636886 8636886 0.03260 40732 38239204 20902525 17336679 0.06550 48876 46876090 20902525 25973565 0.09810 203 274191 1334256 24500 1309756 0.00490 73 224288 224288 0.00080 276 274191 1558544 24500 1534044 0.00570 276 323067 48434634 20927025 27507609 0.10380 0 2397364 62434825 104832437 -42397612 X 1 1 1 1 KADLEC REGIONAL MEDICAL CENTER

888 SWIFT BLVD RICHLAND WA 99352

X X X NOT REQUIRED 1 PART II: KADLEC IS QUITE INVOLVED OUTSIDE THE FOUR WALLS OF THE HOSPITAL. THROUGH ITS ACTIVE MEMBERSHIP IN THE BENTON-FRANKLIN SAFE KIDS COALITION, TRI-CITIES COMMUNITY HEALTH ALLIANCE, AND DOZENS OF EDUCATIONAL PROGRAMS AND SUPPORT GROUPS, KADLEC IS A KEY ORGANIZATION IN EDUCATING FAMILIES IN THE PROMOTION OF GOOD HEALTH. PART III, LINE 8: KADLEC REGIONAL MEDICAL CENTER IS NOT COVERING THE COST OF THE CARE PROVIDED. THE COSTING METHODOLOGY OF COST TO CHARGE RATIO IS DIRECTLY FROM THE MEDICARE COST REPORT. PART III, LINE 9B: THE AGENCY WILL BE SENSITIVE TO THE UNINSURED AND/OR FINANCIAL HARDSHIP CASES, AND INFORM THE CONSUMER OF THE HOSPITAL'S FINANCIAL ASSISTANCE PROGRAM. PART VI, LINE 2: KADLEC CONDUCTS A COMMUNITY SURVEY EVERY OTHER YEAR. IN THIS SURVEY, QUESTIONS ARE ASKED RELATED TO: WHAT NEW SERVICES ARE NEEDED, WHAT ARE WE DOING WELL, AND IN WHAT AREAS DO WE NEED IMPROVEMENT. PART VI, LINE 3: KADLEC PROVIDES INFORMATION REGARDING FINANCIAL ASSISTANCE AT TIME OF REGISTRATION TO ALL SELF-PAY (UNINSURED) PATIENTS. FINANCIAL ASSISTANCE INFORMATION IS ALSO AVAILABLE ON OUR WEBSITE AND AGAIN ON OUR PATIENT STATEMENTS. ON-SITE FINANCIAL COUNSELORS ARE AVAILABLE TO ASSIST PATIENTS WITH APPLICATION PROCESS FOR FEDERAL, STATE, AND LOCAL GOVERNMENT PROGRAMS AS WELL AS FOR OUR ORGANIZATION'S FINANCIAL ASSISTANCE PROGRAM. ACCOUNTS RECEIVABLE REPRESENTATIVES ALSO INFORM PATIENTS OF THE PROGRAM AS THEY SPEAK WITH PATIENTS REGARDING THEIR SELF-PAY BALANCES. PART VI, LINE 4: KADLEC SERVES A DIVERSE POPULATION WITHIN ITS PRIMARY SERVICE AREA OF BENTON AND FRANKLIN COUNTIES. THE COMBINED POPULATION OF THESE COUNTIES IS APPROXIMATELY 225,000 PEOPLE. WE TAKE CARE OF PATIENTS OF ALL AGES, WITH A GROWING POPULATION OF YOUNGER FAMILIES. IN ADDITION, OUR ATTRACTIVENESS AS A RETIREMENT COMMUNITY IS ALSO BRINGING A GROWING RETIREMENT-AGE POPULATION. WE ARE UNIQUELY QUALIFIED TO SERVE THIS GROUP THROUGH OUR FREE HEALTHY AGES AFTER 50 PROGRAM. X X 1 1 X X X X 1 0 0 0 0 1 0 0 0 DAVID R ROACH 221960 0 24659 0 0 0 18124 0 530 0 265273 0 0 0 JEFFREY A CLARK 211441 0 22025 0 0 0 18540 0 4177 0 256183 0 0 0 JULIE L MEEK 288177 0 34742 0 0 0 19800 0 5321 0 348040 0 0 0 LARRY J CHRISTENSEN 154582 0 20280 0 0 0 11610 0 2520 0 188992 0 0 0 WILLIAM T WINGO 250526 0 29808 0 0 0 17152 0 2520 0 300006 0 0 0 KIRK W HARPER 175178 0 0 0 0 0 12544 0 530 0 188252 0 0 0 WILLIAM C BAKER 232906 0 28389 0 0 0 16162 0 2520 0 279977 0 0 0 LANE SAVITCH 306922 0 33581 0 0 0 0 0 23830 0 364333 0 0 0 RAND WORTMAN 443333 0 153672 0 0 0 0 0 124436 0 721441 0 0 0 GARY H RICHARDSON 155946 0 0 0 0 0 12403 0 721 0 169070 0 0 0 DARLA J HARLESS 159009 0 0 0 0 0 12403 0 1044 0 172456 0 0 0 JANICE L ROACH 154518 0 0 0 0 0 11533 0 530 0 166581 0 0 0 DIANE E PIATT 162941 0 0 0 0 0 9142 0 632 0 172715 0 0 0 SANDRA R HUSTON 156135 0 0 0 0 0 12403 0 1787 0 170325 0 0 0 SUSAN SPOHR 171627 0 14824 0 0 0 0 0 1595 0 188046 0 0 0 PART I, LINE 1A THE BOARD IS ALLOWED TO TAKE THEIR COMPANION ON THE ANNUAL BOARD RETREAT. THE KRMC PRESIDENT MEADOW SPRINGS COUNTRY CLUB DUES ARE PAID BY THE MEDICAL CENTER. PART I, LINE 6 THE KHS BOARD ESTABLISHED AN INCENTIVE COMPENSATION PROGRAM FOR SENIOR KHS AND KRMC EXECUTIVES TO ENSURE LEADERSHIP WAS FOCUSED ON KHS AND KRMC PRIORITIES; PATIENT SATISFACTION, EMPLOYEE SATISFACTION, QUALITY CARE, STRATEGIC GOALS, AND OPERATING INCOME. PERFORMANCE EXPECTATIONS ARE SET EACH YEAR WITH THE OPERATING BUDGET, CAPITAL BUDGET, AND BUSINESS PLAN. THE INCENTIVE GOALS ARE WEIGHTED ACCORDING TO THE PARTICIPANTS CONTRIBUTION. THE GOALS ARE ALL OR NOTHING AND THE PAYOUT OCCURS AFTER A FINAL REPORT IS PRESENTED TO THE BOARD EXECUTIVE COMMITTEE. WASHINGTON HEALTHCARE FACILITIES AUTHORITY 911108929 93978EC26 2006-09-01 32765000 REFUNDING SERIES 1996 AND 2001 BONDS 0 0 0 WASHINGTON HEALTHCARE FACILITIES AUTHORITY 911108929 93978ED33 2006-09-07 50000000 FINANCING MAJOR ADDITION 0 0 0 WASHINGTON HEALTHCARE FACILITIES AUTHORITY 911108929 93978HAP0 2010-11-01 57055000 FINANCING MAJOR ADDITION 0 0 0 1515000 32765000 2321725 29231482 1193153 2002 1 1 1 1 275000 50000000 3820484 2124658 44252624 2008 0 1 1 1 57055000 5243293 934492 3552721 39506758 2012 0 0 0 0 0 0 0 0 1 1 0 0 0 0 1 1 0 0 0 0 1 1 1 0 0 0 0 0 1 1 1 PIPER JAFFRAY 28.500000000000 0 0 0 0 0 FORM 990, PART VI, SECTION A, LINE 3 THE BOARD OF DIRECTORS HIRED QUORUM HEALTH RESOURCES AS A MANAGEMENT COMPANY TO OVERSEE DAY TO DAY OPERATIONS OF THE MEDICAL CENTER. THE CEO IS AN EMPLOYEE OF QUORUM HEALTH RESOURCES. FORM 990, PART VI, SECTION A, LINE 6 KADLEC HEALTH SYSTEM (KHS) IS THE SOLE VOTING MEMBER OF KADLEC REGIONAL MEDICAL CENTER(KRMC). KHS SHALL HAVE SUCH RIGHTS AND POWERS AS ARE SPECIFIED IN THE WASHINGTON NONPROFIT CORPORATION ACT, THE ARTICLES OF INCORPORATION OF KRMC AND THE BYLAWS. FORM 990, PART VI, SECTION A, LINE 7A THE ANNUAL MEETING OF THE SOLE VOTING MEMBER OF KADLEC REGIONAL MEDICAL CENTER(KRMC) TO RATIFY ELECTION AND RE-ELECTION OF DIRECTORS OF KRMC AND FOR THE TRANSACTION OF SUCH OTHER BUSINESS AS MAY PROPERLY COME BEFORE THE SOLE VOTING MEMBER, SHALL BE HELD EACH YEAR AS SPECIFIED IN THE BYLAWS OF THE SOLE VOTING MEMBER. THE SOLE VOTING MEMBER MAY DELEGATE OR APPOINT AN OFFICER OF KADLEC HEALTH SYSTEM TO EXERCISE ANY OF THE RIGHTS AND POWERS OF THE SOLE VOTING MEMBER. FORM 990, PART VI, SECTION A, LINE 7B THE SOLE VOTING MEMBER HAS THE RIGHT: (1)TO RATIFY THE ELECTION OR APPOINTMENT OF EACH MEMBER OF THE BOARD OF DIRECTORS AND THE ELECTION OF OFFICERS (2) TO REMOVE ANY DIRECTOR (3) TO AMEND THE ARTICLES OF INCORPORATION OR BYLAWS OF KADLEC REGIONAL MEDICAL CENTER, AND TO APPROVE ANY AMENDMENTS TO THE ARTICLES OF INCORPORATION OF BYLAWS OF KRMC RECOMMENDED BY THE BOARD OF DIRECTORS (4) TO APPROVE ANY MERGERS OR CONSOLIDATION (5) TO APPROVE THE ANNUAL OPERATING AND CAPITAL BUDGETS AND DEVELOPMENT AND REVISION (6) TO APPROVE THE ENTRY INTO JOINT VENTURES OR PARTNERSHIPS (7) TO APPROVE THE ENCUMBRANCE, LEASE, SALE OR OTHER TRANSFER OF ASSETS WITH A VALUE OF $1,000,000 OR GREATER (8) TO APPROVE THE SELECTION OR REMOVAL KRMC'S INDEPENDENT AUDITOR OR LEGAL COUNSEL (9) TO APPROVE THE INITIATION OF LITIGATION OR SETTLEMENT OF MATERIAL LITIGATION IN WHICH KRMC IS THE PLAINTIFF OR DEFENDANT (10) TO APPROVE THE EXECUTION OF ANY MANAGEMENT AGREEMENT, OR ANY OTHER CONTRACT FORM 990, PART VI, SECTION B, LINE 11 ONCE THE 990 IS PREPARED BY A THIRD PARTY, ACCOUNTING STAFF REVIEWS THE DOCUMENTS TO VERIFY INFORMATION HAS BEEN PROVIDED AND INPUT ACCURATELY. ONCE THIS PROCESS HAS BEEN COMPLETED, THE 990 IS REVIEWED AND APPROVED BY THE EXECUTIVE COMMITTEE OF THE BOARD. FORM 990, PART VI, SECTION B, LINE 12C THE COMPLIANCE PROGRAM IS DIRECTED BY THE COMPLIANCE OFFICER AND THE CORPORATE COMPLIANCE COMMITTEE, WHO ARE CHARGED WITH ENSURING THAT THE HOSPITAL MAINTAINS AN EFFECTIVE COMPLIANCE PROGRAM. FORM 990, PART VI, SECTION B, LINE 15 AN INDEPENDENT THIRD PARTY IS USED TO DETERMINE APPROPRIATE COMPENSATION. FORM 990, PART VI, SECTION C, LINE 19 HARD COPIES OF THE AUDITED FINANCIAL STATEMENTS ARE KEPT IN THE ACCOUNTING DEPARTMENT AND ARE AVAILABLE UPON REQUEST. THE HOSPITAL'S "MISSION, VISION, VALUES" STATEMENT IS DISPLAYED IN NUMEROUS PUBLIC LOCATIONS THROUGHOUT THE FACILITY. CONFLICT OF INTEREST POLICY IS AVAILABLE TO PUBLIC UPON REQUEST. CHANGES IN NET ASSETS OR FUND BALANCES: FORM 990, PART XI, LINE 5: NET UNREALIZED LOSSES ON INVESTMENTS: -39,209. MARKET VALUATION ACCOUNT FOR INVESTMENTS 2,390,260. INTEREST RATE SWAP CONTRACT -2,225,333. DISTRIBUTION TO KADLEC HEALTH SYSTEM -14,037,861. BOOK/TAX DIFFERENCE IN JOINT VENTURE INCOME 98,307. TOTAL TO FORM 990, PART XI, LINE 5: -13,813,836. THE NEUROLOGICAL RESOURCE CENTER 712 SWIFT BLVD SUITE 1 RICHLAND WA 993523583 911266345 EDUCATION ON NEUROLOGICAL DISORDERS WA 501(C)(3) 7 KHS 0 KADLEC HEALTH SYSTEM 888 SWIFT BLVD RICHLAND WA 993523583 911266346 HOSPITAL & PHYSICIAN SERVICES WA 501(C)(3) 3 0 KADLEC FOUNDATION 800 SWIFT BLVD RICHLAND WA 993523583 237005501 FUNDRAISING WA 501(C)(3) 11 (III) KHS 0 0 0 1 1 0 0 0 0 0 0 0 0 0 0 0 0 1 0 KADLEC HEALTH SYSTEM Q 14037861 THE NEUROLOGICAL RESOURCE CENTER Q 226422 FOUNDATION C 68429 FOUNDATION D 2800000