Civic Intelligence

Confluence Health

EIN 45-4789950 • 501(c)3 • Wenatchee, WA

Profile

Improving health by providing high-quality care in a compassionate and cost-effective manner.

1201 South Miller StreetWenatchee, WA 98801

www.confluencehealth.org

Siviq Scores

Precomputed percentiles relative to similar nonprofits. These scores are descriptive rather than judgmental.

Liabilities / Assets

Score unavailable

No value available

Liabilities-to-assets requires both liabilities and assets on the latest valid filing.

Source year 2023

Liabilities / Revenue

4th percentile

0.00x

Tied with the lowest-debt nonprofits in its peer group.

501(c)3 • $100M-$250M nonprofits • Source year 2023

Net Margin

31st percentile

-0.3%

Higher net margin than 31% of similar nonprofits.

501(c)3 • $100M-$250M nonprofits • Source year 2023

Top Officer Pay

5th percentile

$0

Higher top officer pay than 5% of similar nonprofits.

Top officer pay equals 0.0% of source-year revenue.

501(c)3 • $100M-$250M nonprofits • Source year 2023

Asset Growth

1st percentile

-100%

Faster asset growth than 1% of similar nonprofits.

501(c)3 • $100M-$250M nonprofits • Annualized from 2022 to 2023

Revenue Growth

3rd percentile

-51%

Faster revenue growth than 3% of similar nonprofits.

501(c)3 • $100M-$250M nonprofits • Annualized from 2022 to 2023

Assets

Up

$117,607,659

Up $35,298,502 (+43%) from 2020

Liabilities

Up

$113,268,117

Up $49,633,200 (+78%) from 2020

Net Assets

Down

$4,339,542

Down $14,334,698 (-77%) from 2020

Revenue

Down

$240,323,017

Down $907,361 (-0.4%) from 2020

Expenses

Up

$254,690,118

Up $29,859,816 (+13%) from 2020

Net Income

Down

-$14,367,101

Down $30,767,177 (-188%) from 2020

Trend Graphs

Balance Sheet Trend

Grouped bars show assets, liabilities, and net assets across loaded filings.

$150M$100M$50M$0-$50MAssets 2012: $3,500,000Liabilities 2012: $3,500,000Net Assets 2012: $02012Assets 2013: $15,076,032Liabilities 2013: $14,101,865Net Assets 2013: $974,1672013Assets 2014: $29,893,527Liabilities 2014: $29,720,035Net Assets 2014: $173,4922014Assets 2015: $25,432,435Liabilities 2015: $27,289,801Net Assets 2015: -$1,857,3662015Assets 2016: $59,729,197Liabilities 2016: $63,237,405Net Assets 2016: -$3,508,2082016Assets 2017: $47,295,073Liabilities 2017: $53,923,456Net Assets 2017: -$6,628,3832017Assets 2018: $51,171,129Liabilities 2018: $51,206,935Net Assets 2018: -$35,8062018Assets 2019: $54,431,988Liabilities 2019: $52,151,090Net Assets 2019: $2,280,8982019Assets 2020: $82,309,157Liabilities 2020: $63,634,917Net Assets 2020: $18,674,2402020Assets 2021: $117,607,659Liabilities 2021: $113,268,117Net Assets 2021: $4,339,5422021

Highlighted filing

2021

Assets$117,607,659
Liabilities$113,268,117
Net Assets$4,339,542

Operations Trend

Revenue, expenses, and net income by year, with the latest filing highlighted.

$300M$200M$100M$0-$100MRevenue 2012: $0Expenses 2012: $0Net Income 2012: $02012Revenue 2013: $50,692,544Expenses 2013: $49,718,377Net Income 2013: $974,1672013Revenue 2014: $97,467,476Expenses 2014: $98,268,151Net Income 2014: -$800,6752014Revenue 2015: $118,404,414Expenses 2015: $120,435,272Net Income 2015: -$2,030,8582015Revenue 2016: $145,373,464Expenses 2016: $147,024,306Net Income 2016: -$1,650,8422016Revenue 2017: $167,014,723Expenses 2017: $170,357,601Net Income 2017: -$3,342,8782017Revenue 2018: $189,695,886Expenses 2018: $183,251,710Net Income 2018: $6,444,1762018Revenue 2019: $222,550,508Expenses 2019: $220,724,753Net Income 2019: $1,825,7552019Revenue 2020: $241,230,378Expenses 2020: $224,830,302Net Income 2020: $16,400,0762020Revenue 2021: $240,323,017Expenses 2021: $254,690,118Net Income 2021: -$14,367,1012021

Highlighted filing

2021

Revenue$240,323,017
Expenses$254,690,118
Net Income-$14,367,101

Filings

Latest Filing Detail
Jump To
Filing Snapshot
Filing Period
Jan 1, 2021 to Dec 31, 2021
Signed
Oct 31, 2022
Return Version
2021v4.2
Gross Receipts
$240,410,613
Mission and Program Overview

Mission

Improving health by providing high-quality care in a compassionate and cost-effective manner.

Balance Sheet Detail
LineBeginningEndChange
Assets
Accounts Receivable$18,946,007$45,267,781▲ $26,321,774
Land, Buildings, and Equipment, Net$31,659,804$28,018,435▼ $3,641,369
Investments Program Related$20,194$23,141,847▲ $23,121,653
Prepaid Expenses and Deferred Charges$4,631,797$5,506,254▲ $874,457
Cash and Non-Interest-Bearing Accounts$12,564,122$3,052,922▼ $9,511,200
Inventories for Sale or Use$194$194→ $0
Total Assets$82,309,157$117,607,659▲ $35,298,502
Other Assets Total$14,487,039$12,620,226▼ $1,866,813
Liabilities
Accounts Payable and Accrued Expenses$29,848,503$62,574,030▲ $32,725,527
Tax Exempt Bond Liabilities$16,880,000$40,000,000▲ $23,120,000
Mortgage Notes Payable Secured by Investment Property$16,906,414$10,694,087▼ $6,212,327
Total Liabilities$63,634,917$113,268,117▲ $49,633,200
Net Assets / Fund Balance
Net Assets Without Donor Restrictions$18,674,240$4,339,542▼ $14,334,698
Total Net Assets Fund Balance$18,674,240$4,339,542▼ $14,334,698
Total Liabilities and Net Assets / Fund Balance$82,309,157$117,607,659▲ $35,298,502

Asset Categories

AssetBook ValueDepreciationBasis
Other Land Buildings$22,574,110$19,774,164$42,348,274
Equipment$3,642,357$12,821,173$16,463,530
Buildings$1,576,880$639,837$2,216,717
Land$225,088-$225,088
Investment Program Related Org$23,141,847--
Other Assets Org$4,471,876--
Compensation and Service Providers

Employees

NameTitleFull / Part TimeBaseOtherTotal
Peter RutherfordChief Executive OfficerPT$662,498$70,033$732,531
Jason M Lake MdChief Medical Officer - WvmgPT$515,723$69,376$585,099
Thomas J LegelChief Financial OfficerPT$472,895$59,132$532,027
Glenn W AdamsChief Operating OfficerPT$449,582$81,055$530,637
Tracey a KasnicCNO, Hospital Admin - CWHPT$355,185$72,574$427,759
Robert J PagelerChief Information OfficerPT$350,026$64,237$414,263
Jay H JohnsonVP Sr Network StrategyPT$342,153$61,815$403,968
Kris a DeyerleVP General CounselPT$322,065$62,655$384,720
Staci JonesVP Sr Specialty CarePT$235,810$64,544$300,354
Cory M Ferari-zimmermanFormer Interim CFOPT$239,380$57,945$297,325
Joellen ColsonVP Sr Ancillary ServicesPT$244,233$52,419$296,652
Sarah a Battis JohnsonSr VP Qual Care TrnsfrmtnPT$231,819$52,359$284,178
Thomas K ChristensenVP of Human ResourcesPT$236,912$43,835$280,747
Sarah C BrownVP Risk & RegulatoryPT$220,271$48,110$268,381
Joshua D WoodVP Revenue CyclePT$190,692$60,081$250,773
Laurie K BergmanVP Care Transitions/mgtPT$184,776$40,414$225,190
Stuart D Freed MdMed Director Phy Ldrship DevlpPT$144,719$38,926$183,645
Abe Sorom MdSecretary-$8,800-$8,800
Catherine Ridgeway MdBoard of Directors-$8,800-$8,800
James Murray MdBoard of Directors-$8,800-$8,800
Jennifer Jorgensen MdBoard of Directors (from 04/21)-$8,800-$8,800
Tom Tuszynski MdBoard of Directors (from 10/21)-$8,800-$8,800
Corinne a BautistaBoard of Directors-$7,200-$7,200
Douglas J ShaeVice Chair-$6,600-$6,600
Karl Gustave HeinickeTreasurer-$6,600-$6,600
Patricia WachtelChair-$6,600-$6,600
Garn G ChristensenBoard of Directors-$6,600-$6,600
Jennifer CravensBoard of Directors-$6,600-$6,600
Mitchell Garrison MdBoard of Directors-$6,600-$6,600
Robert Trask JrBoard of Directors-$6,600-$6,600
Vicky ScharlauBoard of Directors-$6,600-$6,600
David Scott DuncanBoard of Directors (thru 07/21)-$3,600-$3,600
Robert Greg HamiltonBoard of Directors (from 08/21)-$2,400-$2,400

Board Members and Trustees

NameTitle
Gautam Nayak MdBoard of Directors (thru 02/21)
Dan Brown MdBoard of Directors (thru 09/21)

Highest Paid Contractors

ContractorServicesLocationCompensation
MedefisTraveling Nurse ServicesPO BOX 5066, New York, NY 10087$5,661,408
ArmadaDebt Recovery ServicesPO BOX 709, Wenatchee, WA 98807$648,134
Moss Adams LLPAccounting & Consulting ServicesPO BOX 101822, Pasadena, CA 91189$639,841
Davis Wright Tremaine LLPLegal ServicesPO BOX 2136, Wenatchee, WA 98801$278,458
TegriaHealthcare Technology & ServicesPO BOX 735734, Dallas, TX 75373$255,362
Revenue and Support

Revenue Composition

Contributions and Grants
$1,080,986
Program Service Revenue
$238,917,472
Investment Income
$288,318
Other Revenue
$36,241
All Other Contributions
$211,754
Change in Net Assets
$-14,367,101
Expenses and Functional Allocation

Major Expense Lines

Line ItemAmount
Other Expenses$178,099,438
Salaries, Compensation, and Employee Benefits$76,025,826
Grants and Similar Amounts Paid$564,854
Professional Fundraising Fees$0
Total Fundraising Expense$0

Functional Expense Allocation

Line ItemProgramManagementFundraisingTotal
Other Salaries and Wages$42,609,194$10,652,298-$53,261,492
Information Technology$10,920,758$2,730,189-$13,650,947
Other Employee Benefits$8,231,798$2,057,950-$10,289,748
Office Expenses$4,690,559$1,172,635-$5,863,194
Depreciation Depletion$4,619,984$513,332-$5,133,316
Current Officers, Directors, Trustees, and Key Employees$3,840,888$960,222-$4,801,110
Payroll Taxes$3,542,444$885,611-$4,428,055
Pension Plan Contributions$2,358,477$589,619-$2,948,096
Fees for Services Other$1,847,565$461,891-$2,309,456
Occupancy$1,845,872$205,097-$2,050,969
Insurance-$1,115,711-$1,115,711
Advertising$793,158$198,290-$991,448
Interest$912,479--$912,479
Other Expenses$694,622$11,737,893-$694,622
Fees for Services Legal-$611,878-$611,878
Fees for Services Accounting-$507,771-$507,771
Grants to Domestic Orgs$322,667--$322,667
Comp Disqual Persons$237,860$59,465-$297,325
Grants to Domestic Individuals$242,187--$242,187
Conferences and Meetings$100,616$25,154-$125,770
Total Functional Expenses$220,205,112$34,485,006$0$254,690,118
International Activity

Grant and Assistance Recipients

RecipientLocationCategoryPurposeAmount
Community Foundation of North Central WashingtonWenatchee, WA501(c)(3)General Support$300,000
GwataWenatchee, WA501(c)(3)General Support$10,000
United WayWenatchee, WA501(c)(3)General Support$6,667
North Central Washington Nurse WeekWenatchee, WA501(c)(3)General Support$6,000
Fundraising, Events, and Gaming
Fundraising activities
No
Gaming activities
No
Professional fundraiser used
No

Fundraising and Gaming Totals

Line ItemAmount
Professional Fundraising Fees$0
Political and Lobbying Activity
Political campaign activity
No
Lobbying activity
Yes
Subject to proxy tax
No
Insider Transactions and Loans

Interested-Person Transactions

Interested PartyRelationshipDescriptionShared RevenueAmount
Ivy MurrayFamily Member of DirectorEmploymentNo$94,379
Ashley GarrisonFamily Member of DirectorEmploymentNo$82,654
Carole JohnsonFamily Member of Key EmployeeEmploymentNo$58,396
Malinda GarrisonFamily Member of DirectorEmploymentNo$41,237
Saxton SykesFamily Member of Key EmployeeEmploymentNo$19,677
Debt and Bond Financing

Bond Issues

BondIssuerIssuedIssue PricePurpose
AWashington Health Care Facilities Authority2020-02-27$40,000,000Construction/remodel of healthcare facility; medical equipment

Bond Proceeds

BondTotal ProceedsSpentRetiredIssuance Costs
A$40,000,000--$488,031

Bond Financing Compliance

No rebate due
No
Rebate not yet due
Yes
Form 8038-T filed
No
Gross proceeds invested
No
Gross proceeds invested in GIC
No
Exception to rebate
No
Corrective action procedures
Yes
Governance and Compliance

Governance Checklist

Compiled or reviewed by an accountant
No
Annual disclosure for covered persons
Yes
Audit committee
Yes
Backup withholding compliance
Yes
Business relationship with 35% controlled entity
No
Business relationship with family members
Yes
Business relationship with organization members
No
Material changes to governing documents
Yes
Compensation from other sources disclosed
Yes
CEO compensation reviewed
Yes
Other officer compensation reviewed
Yes
Conflict-of-interest policy
Yes
Audited financial statements prepared
Yes
Key decisions subject to board approval
No
Management duties delegated
No

Governance Explanations

Form 990, Part VI, Section A, Line 2

Confluence health and affiliates share the same board as part of the operating structure. As such, all board members serve with each other in a similar capacity on related organizations. Additionally, some board members are minority owners in an entity that has a professional service agreement with the organization.

Form 990, Part VI, Section A, Line 4

The composition of the governing body was updated to reflect the following changes: - officers of the organization now include the chief operating officer and chief information officer. - officers of the organization will no longer include the chief operating officers and chief nursing officers of cwh and wvh. The clinic's governing board requirements were updated to no longer require that two of the six members have established medical practices with patients who reside outside of wenatchee, wa. The organization's board of directors nominating committee shall continue to seek input from the clinic's governing board.

Form 990, Part VI, Section B, Line 11B

A copy of the form 990 and schedule b, if any, is reviewed by the chief financial officer and vice president of finance. Subsequent to this review the form 990 and schedule b is reviewed by the governing board before being filed with the irs.

Form 990, Part VI, Section B, Line 12C

Board members, executive team members and directors are required to review the current conflict of interest policy and complete an annual questionnaire. The nominating committee of the board reviews questionnaires of existing and new members for potential conflicts of interest. Any potential conflicts of interest are resolved by the nominating committee. The executive team reviews questionnaires submitted by executive team members and directors for potential conflicts of interest. Potential conflicts of interest are resolved by the executive team in collaboration with the corporate compliance officer. Review of all conflict of interest statements is noted within the board minutes.

Form 990, Part VI, Section B, Line 15

The compensation committee of the governing board annually reviews independent salary survey information and recommends a salary and/or a salary increase for the ceo to the governing board. The other officers receive an annual percent increase which non-contractual employees receive unless the ceo awards a different percentage. The amount is, typically, based on current cpi, market and salary survey information.

Form 990, Part VI, Section C, Line 19

Confluence health's governing documents, conflict of interest policy, and financial statements are available on request.

Filing and Contact Details

Filer

Filer Name
Confluence Health
EIN
45-4789950
Phone
5096621511
Address
1201 SOUTH MILLER STREET, WENATCHEE, WA 98801

Signing Officer

Name
Tom Legel
Title
Chief Financial Officer
Phone
5096621511
Signed
2022-10-31
Discuss with paid preparer
Yes

Organization Details

Principal Officer
Tom Legel
Formed
2012
Legal Domicile
Wa
Voting Board Members
15
Independent Board Members
15
Employees
977
Volunteers
40

Preparer

Firm
Moss Adams Llp
Address
2707 COLBY AVENUE SUITE 801, EVERETT, WA 98201
Preparer
Robert Grannum
Phone
4252597227
Supplemental Narrative

Additional Explanations

FORM 990, PART XII, LINE 3B:

Confluence health is in the process of completing the required a-133 audit for the year ended december 31, 2021. The extended due date for completion is september 30, 2022.

Financial Statement Notes

PART X, LINE 2:

The health system is formed as three separate not-for-profit corporations, which have been recognized as tax-exempt pursuant to section 501(c)(3) of the internal revenue code. The health system 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. Any unrelated business income generated is not significant; therefore, no provision for income taxes has been recorded. The health system has adopted accounting for uncertain tax positions. The accounting standard prescribes a recognition threshold and measurement process for uncertain tax positions. As of december 31, 2021 and 2020, the health system had no uncertain tax positions requiring accrual.

Raw XML AppendixShowing 400 of 1,223 raw XML fields

This appendix keeps the raw XML leaves available for debugging and edge-case review. The human report above is the primary experience.

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IRS990/Desc0CONFLUENCE HEALTH PROVIDES THE ADMINISTRATIVE AND SHARED FUNCTIONS FOR THE HEALTH SYSTEM. IN ADDITION, THE PURPOSES OF THE SYSTEM ARE AS FOLLOWS:A. MAINTAIN THE AVAILABILITY AND ACCESS TO HIGH QUALITY, COST EFFECTIVE HEALTHCARE SERVICES FOR THE NORTH CENTRAL WASHINGTON (NCW) COMMUNITY;B. IMPROVE COORDINATION OF LIMITED HEALTH CARE RESOURCES AND MAXIMIZE THE EFFICIENCY OF THE HEALTH CARE SYSTEM TO ACHIEVE THE MOST COST EFFECTIVE CARE THAT CAN BE DELIVERED;C. PRESERVE NCW COMMUNITY CONTROL OVER IMPORTANT CARE DECISIONS AND ENSURE NCW COMMUNITY INVOLVEMENT IN THE DEVELOPMENT OF THE MEDICAL INFRASTRUCTURE AND OVERSIGHT OF THE NCW COMMUNITY HEALTHCARE DELIVERY SYSTEM;D. ENHANCE THE PATIENT-PHYSICIAN RELATIONSHIP AND MAINTAIN THE HIGH QUALITY OF CARE AND BREADTH OF SERVICES THE NCW COMMUNITY CURRENTLY ENJOYS;E. IMPROVE TEAMWORK AND INTEGRATION ACROSS THE CONTINUUM OF CARE AND ENSURE THAT PHYSICIANS AND OTHER HEALTHCARE PROVIDERS LEAD CLINICAL DESIGNS AND CLINICAL DECISIONS;F. ENSURE THAT PHYSICIANS AND ADMINISTRATIVE LEADERS HAVE A SHARED VISION REGARDING THE NCW COMMUNITY HEALTH CARE DELIVERY SYSTEM;G. ENSURE THAT THE NCW COMMUNITY ECONOMY, JOBS, AND BUSINESS PARTNERS ARE PRESERVED AND CAN GROW WITH THE REGION IN A RESPONSIBLE WAY;H. DEVELOP A HIGH PERFORMING INTEGRATED HEALTH CARE DELIVERY SYSTEM FOR THE NCW COMMUNITY THAT COULD APPLY FOR AND BE SUCCESSFUL WITH CONTRACTS FROM MEDICARE SO THAT THE NEWLY CREATED HEALTH SYSTEM CAN BE IDENTIFIED AS AN ACCOUNTABLE CARE ORGANIZATION IF SO DESIRED AND POSITION THE HEALTH SYSTEM SO THAT IT COULD CONTRACT FOR THE OVERALL SYSTEM OF CARE AND BE SUCCESSFUL WITH A NEWLY DEVELOPED RISK CONTRACTS BEING OFFERED BY COMMERCIAL INSURERS;I. ESTABLISH, EQUIP, OPERATE AND MAINTAIN BENEVOLENT AND CHARITABLE INSTITUTIONS FOR THE GIVING OF MEDICAL AND SURGICAL CARE TO THE SICK, WOUNDED, AND SUFFERING IRRESPECTIVE OF SEX, MARITAL STATUS, DISABILITY, COLOR, RACE, RELIGIOUS BELIEF, SEXUAL ORIENTATION, ECONOMIC STATUS, OR PECUNIARY CIRCUMSTANCES; ANDJ. CARRY ON ANY EDUCATIONAL ACTIVITIES, RELATED TO THE RENDERING OF CARE TO THE SICK AND INJURED OR THE PROMOTION OF HEALTH WHICH, IN THE OPINION OF THE BOARD OF DIRECTORS OF THE HEALTH SYSTEM MAY BE JUSTIFIED BY THE FACILITIES, PERSONNEL, FUNDS OR OTHER REQUIREMENTS THAT ARE OR CAN BE MADE AVAILABLE IN ACCORDANCE WITH THE LAWS OF THE STATE OF WASHINGTON.
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IRS990/Form990PartVIISectionAGrp/TitleTxt10BOARD OF DIRECTORS
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IRS990/Form990PartVIISectionAGrp/TitleTxt12BOARD OF DIRECTORS
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IRS990/Form990PartVIISectionAGrp/TitleTxt15BOARD OF DIRECTORS (FROM 08/21)
IRS990/Form990PartVIISectionAGrp/TitleTxt16BOARD OF DIRECTORS (THRU 02/21)
IRS990/Form990PartVIISectionAGrp/TitleTxt17BOARD OF DIRECTORS (THRU 09/21)
IRS990/Form990PartVIISectionAGrp/TitleTxt18CHIEF EXECUTIVE OFFICER
IRS990/Form990PartVIISectionAGrp/TitleTxt19CHIEF MEDICAL OFFICER - WVMG
IRS990/Form990PartVIISectionAGrp/TitleTxt20CHIEF FINANCIAL OFFICER
IRS990/Form990PartVIISectionAGrp/TitleTxt21CHIEF OPERATING OFFICER
IRS990/Form990PartVIISectionAGrp/TitleTxt22CHIEF INFORMATION OFFICER
IRS990/Form990PartVIISectionAGrp/TitleTxt23MED DIR PHY LDRSHIP DEVLP
IRS990/Form990PartVIISectionAGrp/TitleTxt24CNO, HOSPITAL ADMIN - CWH
IRS990/Form990PartVIISectionAGrp/TitleTxt25VP SR NETWORK STRATEGY

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