Providence Health System -So California

“Description of classes of members or stockholders providence health & services is the sole corporate member of providence health system - southern california.”

“Description of classes of persons and the nature of their rights providence health system - southern california has a tiered governance in which the corporate members reserve the right to appoint the providence health system - southern california's governing board. All nominations that come from the providence health system - southern california board as nominations must be approved by providence health & services, as the corporate member.”

“Classes of persons, decisions requiring approval & type of voting rights the following powers reside with the corporate member: 1) to adopt or change the mission, philosophy, and values, including the strategic plan and mission statement. 2) to amend or repeal the articles of incorporation or bylaws. 3) to approve the acquisition of assets, the incurrence of indebtedness or the lease, sale transfer, assignment or encumbering of assets exceeding a specified threshold, or the sale or transfer of any property which may have historical or religious significance. 4) to approve the dissolution or liquidation. 5) to approve the annual operating and capital budgets. 6) to appoint the certified public accountants. 7) to approve the closure of any institution or major entity or work of the corporation.”

“Process to review form 990 the form 990 was prepared based on information received from various departments of the organization including the finance team, human resources, payroll, compliance and the department of legal affairs. The organization engaged an outside accounting firm to prepare the return. The return has been reviewed by an officer of the organization. Management presented the returns to the audit and compliance committee, and discussed key disclosures and information included in the form 990. In addition, a copy of the form 990 was distributed to all voting members of the board prior to filing.”

“Process to monitor transactions for conflicts of interest providence takes the issue of conflicts of interest, and independent unconflicted decision-making, very seriously. Providence has a comprehensive conflict of interest policy and interest disclosure policy, revised in 2023, and carefully and thoroughly administers these policies. Board members, sponsors, senior leaders and key core leaders are required to disclose any actual or potential conflict of interest in accordance with the providence conflict of interest policy, and so that the individual satisfies his or her fiduciary obligations to the organization. Disclosures are made annually, as well as any time an actual or potential conflict of interest arises. Providence chief legal officer and/or providence chief risk officer, and/or providence chief compliance officer, review all disclosures. Where appropriate, the ceo and/or the board chair will review conflict of interest situations that involve senior leadership or a board member other than the chair. Providence chief legal officer and/or chief risk officer review matters where conflict is difficult or cannot be readily resolved and present recommendations to the appropriate board committee or the ceo, for discussion and resolution. When appropriate, the individual with the real/potential conflict that is being reviewed may participate in the discussion but is recused from the meeting, and from any final discussion and vote, when a decision is being made on whether a conflict exists, or when the action giving rise to the conflict of interest is decided. Where appropriate, chief risk officer or chief legal officer will provide a plan to manage conflicts and avoid participation by the conflicted individual in the matter giving rise to the conflict of interest. Auditing and monitoring of this process is done periodically. All documentation of conflict of interest disclosures is retained in accordance with organization retention policy.”

“Process for determining compensation the organization's chief executive officer/president/executive director is paid by a tax exempt organization, providence health & services-washington, and is disclosed as a person paid by a related organization. It is providence's intention to make financial information accessible and transparent. Although the filing of form 990 provides insight into how providence achieves its mission, delivers its programs and stewards its finances, deciphering the information directly from form 990 can be challenging. The following paragraphs provide further information about the process we use to determine compensation for top management, officers and key employees. Providence has a single fiduciary board, with responsibility for financial oversight associated with fulfillment of the providence mission, developing system policies, protecting the assets entrusted to the organization and overseeing the strategic and operational affairs of providence's legal entities. Providence also maintains a network of community entity boards with responsibility for quality of care oversight, community relations, advocacy and community needs assessments. Providence has a consistent compensation philosophy for all of its senior executives, including all officers. Salaries for senior executives are reviewed at least annually by the executive compensation committee, which is a committee of the providence board consisting only of outside, independent directors. The committee makes sure, at each of its meetings, that no member of the committee has a conflict of interest as to any executive whose compensation is reviewed by the committee. The executive compensation committee retains an independent consultant each year to review salaries of those in the most significant leadership roles in the organization. Part of the consultant's role is to review an extensive array of compensation surveys of large, not-for-profit health care systems in the united states. Providence is one of the larger health systems in the country, and as such, the board benchmarks executive compensation against other large, not-for-profit health systems that are substantially similar to providence in size and complexity (such as having a similar amount of annual net revenue). Additionally, because providence often looks to general industry for leaders in certain functional areas, providence also takes into consideration general industry market data in these special situations. Base salaries for providence executives are generally targeted to the "median" level of the market data (where half the salaries in the data are lower and half the salaries in the data are higher), as identified by the independent consultant and reviewed with the executive compensation committee. The president/ceo utilizes the market information provided by the consultant along with formal performance evaluations, to determine salary recommendations for other senior executives. This process includes a rigorous analysis of those recommendations with the executive compensation committee as a part of the review and approval process. Total compensation is tied closely to performance of the organization and the individual. Performance incentives allow executives to earn additional compensation if they help lead providence in achieving specific organizational goals for furthering providence's operating commitments and strategic objectives. The board of directors conducts a thorough review process to ensure performance incentives are aligned with appropriate market practices. The board's process for setting, reviewing and approving executive compensation fully complies with irs standards (to assure that all compensation is considered reasonable) and reflects best governance practices in the industry. The process was last completed in june 2025.”

“The organization makes its governing documents and conflict of interest policy available to the public upon request. The providence community benefit reports, financial reports, consolidated audited financial statements, and philanthropy reports are also available on the providence internet site.”

“In addition, in fy24 the following health equity efforts included grant making to the following non-profits: the lgbtq+ center of long beach and the tiger wood foundation, totaling $900,000 partnership with the tiger woods foundation/youth career mentorship: in fy24, providence funded $800,000 to provide career path mentorship programming. Empowered health by providence and tgr foundation was created to invest in youth by providing meaningful career paths guided by mentors to ensure they have the ability to reach their full potential. Youth and their families also will have easy access to health programs that provide multi-generational care in a trusted, culturally sensitive environment. For more information go to: https://www.providence.org/about/annual-report/reports/southern-californ ia”

“Individuals listed as officers and key employees of the organization that are paid by a related organization are common law employees of the related organization. It is the intention of providence and the filing organization to make information accessible and transparent, reporting those employees of a related organization who have officer and key employee responsibilities to the filing organization. The related organization common law employees are included in the related organizations section 4960 tax analysis and reporting.”

“Providence health system - southern california has updated the following form 990 sections to include amounts related to real property determined to be legally owned by providence health system - southern california. The real property was previously reported on providence health system - southern california's tax-exempt affiliate providence saint john's health center's form 990. - form 990, part x, line 10a - form 990, part x, line 10b - form 990, part x, line 10c - form 990, schedule d, part vi, line 1a - form 990, schedule d, part vi, line 1b - form 990, schedule d, part vi, line 1e”

“Net asset transfers between related tax-exempt organizations -439,976,249. Fas 136 - recipient organization adjustment 17,173,085. Other changes in net assets -49,429,038. Change in investment in joint ventures -3,591,942. Real property transfer (see form 990, part x narrative) 274,114,644. Investment in corporate subsidiaries 58,095,219.”