Upmc

“SECTION A, LINE 1,2,7 SECTION B, LINE 11, 12C, 15A & B, 16A & b SECTION A, LINE 1 ALTHOUGH THE UPMC BOARD OF DIRECTORS IS INDEPENDENT IN FACT, 3 OF THE BOARD MEMBERS ARE REQUIRED TO BE REPORTED AS NOT INDEPENDENT FOR FORM 990 PURPOSES AS A RESULT OF AFFILIATION WITH COMPANIES PROVIDING SERVICES TO OR PURCHASING HEALTH INSURANCE OR OTHER SERVICES FROM UPMC HEALTH PLAN ON THE SAME TERMS AS THOSE OFFERED TO THE GENERAL PUBLIC. SECTION A, LINE 2 DID ANY OFFICER, TRUSTEE, OR KEY EMPLOYEE HAVE A FAMILY RELATIONSHIP OR BUSINESS RELATIONSHIP WITH ANY OTHER OFFICER, DIRECTOR, TRUSTEE, OR KEY EMPLOYEE? FOR PURPOSES OF PART VI, LINE 2, UPMC HAS OBTAINED AND REPORTED RELEVANT INFORMATION FROM INTERESTED PERSONS INCLUDING DIRECTORS, OFFICERS, AND KEY EMPLOYEES OF UPMC AND OFFICERS AND KEY EMPLOYEES OF ALL GROUP SUBORDINATES, AND DIRECTORS OF GROUP SUBORDINATE ENTITIES WITH DECISION-MAKING BOARD AUTHORITY THAT IS INDEPENDENT FROM THAT OF UPMC PARENT. MULTIPLE UPMC OFFICERS, DIRECTORS, TRUSTEES, AND/OR KEY EMPLOYEES HAVE RELATIONSHIPS BY VIRTUE OF THE FACT THAT THEY ARE ALSO OFFICERS, DIRECTORS, TRUSTEES, AND/OR KEY EMPLOYEES OF UPMC SUBSIDIARIES AND AFFILIATES. THESE RELATIONSHIPS ARE NOT SEPARATELY DISCLOSED BELOW BECAUSE THEY ARE NOT "BUSINESS RELATIONSHIPS" FOR THE PURPOSES OF FORM 990. THE FOLLOWING UPMC OFFICERS, DIRECTORS, TRUSTEES, AND/OR KEY EMPLOYEES HAVE BUSINESS RELATIONSHIPS, AS REQUIRED TO BE DISCLOSED BY FORM 990 PART VI, SECTION A, LINE 2, BY VIRTUE OF THE FACT THAT THEY ARE ALSO OFFICERS, DIRECTORS, TRUSTEES, OR KEY EMPLOYEES OF OTHER UNRELATED TAXABLE ORGANIZATIONS. BOD MEMBER/OFFICER/KEY EMPLOYEE: MCCRADY RELATIONSHIP: BUSINESS ASSOCIATED PERSON: HAMILTON BOD MEMBER/OFFICER/KEY EMPLOYEE: HAMILTON RELATIONSHIP: BUSINESS ASSOCIATED PERSON: MCCRADY BOD MEMBER/OFFICER/KEY EMPLOYEE: MCGUINN RELATIONSHIP: BUSINESS ASSOCIATED PERSON: WADHWANI BOD MEMBER/OFFICER/KEY EMPLOYEE: WADHWANI RELATIONSHIP: BUSINESS ASSOCIATED PERSON: MCGUINN SECTION A, LINE 7 UPMC DOES NOT HAVE MEMBERS OR STOCKHOLDERS. THE UNIVERSITY OF PITTSBURGH HAS THE AUTHORITY TO APPOINT 1/3 OF THE MEMBERS OF THE UPMC BOARD OF DIRECTORS; CERTAIN UPMC HOSPITAL ENTITIES OR ENTITIES AFFILIATED WITH THOSE HOSPTIALS HAVE THE RIGHT TO APPOINT 1/3 OF THE MEMBERS OF THE UPMC BOARD OF DIRECTORS; THE REMAINING 1/3 OF THE BOARD OF DIRECTORS MEMBERS ARE NOMINATED BY A NOMINATING COMMITTEE OF THE BOARD OF DIRECTORS AND ARE ELECTED BY THE BOARD AT LARGE. NO GOVERNANCE DECISIONS OF UPMC ARE RESERVED TO OR SUBJECT TO APPROVAL BY MEMBERS, STOCKHOLDER OR PERSONS OTHER THAN THE BOARD OF DIRECTORS. SECTION B, LINE 11 The completed Form 990 was reviewed by the Chief Financial Officer, members of the Corporate Tax Department, members of the Corporate Legal Department, and other members of UPMC management prior to its filing. Various sections of the 990 were also reviewed by the Chief Executive Officer and committees of the filing organization's Board of Directors, as applicable. For example, the Executive Compensation Committee of the Board reviewed sections related to compensation and related party transactions. In addition, the Board of Directors established a 990 Subcommittee, comprised of the Chairs of the Board, Executive Compensation Committee, Ethics and Compliance Committee, Finance Committee and Audit Committee, which reviewed the entire completed Form 990 prior to filing. Additionally, the Form 990 is reviewed by an outside independent public accounting firm who as part of the process signs the return as Paid Preparer. After this review but prior to filing, the full Board of Directors was notified that the completed Form 990 was available for review on the Board's secure website. Also prior to filing, management provided the opportunity for all board members of the full UPMC board to ask any questions or raise any comments on the full return they were provided. SECTION B, Line 12c: UPMC, as a system-wide practice, requires key employed and non-employed personnel to comply with i”

“UPMC's Public Website (www.upmc.com) makes its financial results, conflict of interest process, and various information about governance and oversight available to the public. Additional information may be supplied upon specific request for data not posted to the web site.”

“SECTION A AND SECTION B SECTION A Pursuant to Treasury Regulation Section 1.6033-2(d)(5), UPMC has elected to report compensation and Schedule J other information about officers, directors, trustees, key employees and certain other highly paid employees on a consolidated basis for all of the members of the UPMC Group, including this parent organization which is the sponsor or central organization of the Group, EIN 20-8295721. SECTION B Pursuant to Treasury Regulation Section 1.6033-2(d)(5), UPMC has elected to report certain professional contractors and certain other contractors on a consolidated basis for all of the members of the UPMC Group, including this parent organization which is the sponsor or central organization of the Group, EIN 20-8295721.”

“Line 1 - Contributions and grants: Pursuant to Treasury Regulation Section 1.6033-2(d)(5), UPMC has elected to report information related to its contributions and grants received on a consolidated basis for all of the members of the UPMC Group, including this parent organization, on the return of UPMC Group, EIN 20-8295721.”

“UPMC is the parent organization of a large integrated healthcare delivery system consisting of controlled subsidiaries within the meaning of Section 6033(h). UPMC'S primary mission is the ongoing support of all subsidiaries in order to assist them in accomplishing their exempt educational, healthcare, and research missions. Line 8 - Contributions and grants: Pursuant to Treasury Regulation Section 1.6033-2(d)(5), UPMC has elected to report information related to its contributions and grants received on a consolidated basis for all of the members of the UPMC Group, including this parent organization, on the return of UPMC Group, EIN 20-8295721.”

“UPMC is the premier integrated health system in western Pennsylvania and one of the nation's leading academic medical centers. Its central mission is to provide outstanding, accessible care to the people of this region, while shaping tomorrow's health care through clinical and technological innovation, research, and education. As the largest non-governmental employer in the Commonwealth - with more than 60,000 employees within the various controlled health care entities, UPMC encompasses more than 20 hospitals and more than 500 outpatient sites, physician offices, and retirement and long-term care facilities. By integrating its health care services with a major insurance division that is focused on promoting the health of its members, UPMC has advanced the quality and efficiency of health care, and developed internationally renowned programs in transplantation, cancer, neurosurgery, psychiatry, orthopaedics, and sports medicine, among others. These highly specialized services draw patients from across the nation and around the world. Closely affiliated with its academic partner, the University of Pittsburgh, UPMC regularly ranks as one of "America's Best Hospitals" in U.S. News & World Report's prestigious annual listing. UPMC's largest operating component is its Health Services Division, encompassing a comprehensive array of clinical capabilities. Serving primarily western Pennsylvania, this division includes academic, community, and regional hospitals; pre- and post-acute care capabilities; specialty service lines such as transplantation services, women's health, behavioral health, pediatrics, cancer care, and rehabilitation services; contract services, such as emergency medicine, pharmacy, and laboratory; and nearly 3,600 employed physicians with associated practices. UPMC's organ transplant center is one of the largest and busiest in the world, performing more than 19,000 transplants since 1981. The UPMC Cancer Center network is also one of the largest, with more than 40 locations and more than 2,000 physicians, researchers, and staff. UPMC's expertise in transplantation and oncology is key to the globalization efforts undertaken through its International Division, which promotes the exchange of scientific knowledge worldwide, while generating revenue that is reinvested in western Pennsylvania. In managing its global health enterprise, UPMC has taken a leadership role in good corporate governance practices - voluntarily achieving Sarbanes-Oxley certification for ten years in a row, publicly releasing quarterly financial results within 60 days of each quarter's close, and creating one of the most stringent industry relationship policies to ensure that pharmaceutical and medical device companies do not negatively influence patient care. These business practices set the stage for decision making that is beneficial for UPMC and the communities it serves. High-Quality, Patient-Focused Care By leveraging resources and expertise across its global network, UPMC has achieved significant gains in the delivery of high-quality, patient-focused care. The Donald D. Wolff Center for Quality, Safety, and Innovation (The Wolff Center) at UPMC coordinates and connects quality, safety, care and improvement. It partners with colleagues across UPMC to improve health care delivery for patients and members, and supports the transformation and improvement of patient care delivery and outcomes through the dissemination of best practices and use of advanced technology. The Wolff Center's expertise also includes enterprise wide data quality and analytics, patient experience, infection prevention, regulatory support, emergency preparedness, and pay for performance quality oversight. System-wide quality initiatives in the last fiscal year included implementation of 98 projects across the system aimed at keeping patients safe, enhancing the patient experience, taking care of our caregivers, and propelling quality through robust data analytics. Investme”

“Line 2 - Contributions and grants: Pursuant to Treasury Regulation Section 1.6033-2(d)(5), UPMC has elected to report information related to its contributions and grants on a consolidated basis for all of the members of the UPMC Group, including this parent organization, on the return of UPMC Group, EIN 20-8295721. LINE 12 - AN EXTERNAL AUDIT IS COMPLETED AT A CONSOLIDATED UPMC SYSTEM LEVEL ONLY, INCLUDING UPMC AND ALL TAXABLE AND TAX EXEMPT SUBSIDIARIES. LINE 21 - FOR JUNE 30, 2015 TAX YEAR, UPMC MADE A CASH CONTRIBUTION FOR $3,345,780 TO PITTSBURGH PROMISE, A SECTION 501(C)(3)TAX-EXEMPT ORGANIZATION. THE FISCAL YEAR 2015 CONTRIBUTION IS PART OF A TOTAL $59.5 MILLION COMMITMENT TO THE PITTSBURGH PROMISE. UNDER UPMC'S ACCOUNTING METHODOLGY, THE ENTIRE $59.5 MILLION COMMITMENT WAS REPORTED AS AN EXPENSE ON PART IX OF UPMC'S JUNE 30, 2013 FORM 990. HOWEVER, ONLY THE AMOUNT OF THE CASH CONTRIBUTION FOR FISCAL YEAR 2013, $4,995,639 WAS REPORTED ON UPMC'S JUNE 30, 2013 FORM 990, SCHEDULE I. IN FISCAL YEAR 2014, A CASH CONTRIBUTION OF $4,896,759 WAS MADE AND ONLY REPORTED ON SCHEDULE O. IN FISCAL YEAR 2015, A CASH CONTRIBUTION OF $3,345,780 WAS MADE. HOWEVER, BECAUSE OF SOFTWARE LIMITATIONS, UPMC CANNOT REPORT ON SCHEDULE I THE CASH TRANSFER PORTION OF THE PRIOR EXPENSE RECOGNIZED WITHOUT OVER-REPORTING THE EXPENSE ON PART IX. THEREFORE, UPMC IS DISCLOSING THE CASH CONTRIBUTION IN SCHEDULE O HEREIN INSTEAD OF ON SCHEDULE I TO AVOID SUCH OVER-REPORTING.”

“Line 9 other changes in net assets or fund balances funding of subsidiaries -4,825,751 net transfers from exempt subsidiaries -10,641,082 minimum pension liability adjustment -106,779,745 other changes to fund balance -105,728 return of equity from affiliates 50,000,000 joint venture equity funding 10,500,000 fund balance transfer - investment in affiliate -19,037,546 total other changes in net assets or fund balances -80,889,852”

“Question 2b an external audit is completed at a consolidated system level only, including upmc and all taxable and tax-exempt subsidiaries.”