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 directors to the providence health system - southern california board.”

“The following powers are reserved exclusively to the corporate member: a) to adopt and amend the articles of incorporation and the bylaws of the foundation after consultation with the foundation's board of directors. B) to approve the merger, consolidation, or affiliation of the foundation with another corporation, organization or program, or the dissolution of the foundation. C) to approve any strategic plan of the foundation. D) to approve the annual fundraising plan including special events, annual, capital and planned giving activities. E) to approve the acceptance of any gift that carries conditions or limitations or any gift restricted to services, programs or facilities not currently offered or approved to be offered by the corporate member's board of directors.”

“The form 990 was prepared by the tax department based on information received from various departments of the organization and was reviewed by an officer of the organization. A copy of the form 990 was distributed to all voting members of the board. During the audit committee meeting, management presented and discussed certain disclosures and information included in the form 990. The audit committee chair then provided a summary at the full board meeting.”

“Board members, sponsors, senior leaders and key employees are required to disclose any real or potential conflict of interest in accordance with the psjh coi policy and in connection with that individual satisfying his or her fiduciary obligations to the organization. Disclosures are made annually and/or if at any time an actual, real or potential conflict of interest arises. Psjh chief legal officer and/or the psjh chief risk officer, review all disclosures. Where appropriate, the ceo and/or the board chair consider matters that involve senior leadership or a board member. Psjh chief legal officer and/or chief risk officer review matters where conflict is difficult or cannot be 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 excused from the meeting when action is decided. Where appropriate, the chief risk officer or chief legal officer will provide plan to manage conflicts. Auditing and monitoring of this process is done periodically. All documentation of coi disclosures is retained per organization retention policy.”

“Process used to determine compensation the organization's chief executive officer/president/executive director is paid by its tax exempt parent, providence st. Joseph health, and is disclosed as a person paid by a related organization. It is providence st. Joseph health's intention to make financial information accessible and transparent. Although the filing of form 990 provides insight into how providence st. Joseph health 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 st. Joseph health has a single fiduciary board, with responsibility for financial oversight associated with fulfillment of the providence st. Joseph health mission, developing system policies, protecting the assets entrusted to the organization and overseeing the strategic and operational affairs of providence st. Joseph health's legal entities. Providence st. Joseph health also maintains a network of community entity boards with responsibility for quality of care oversight, community relations, advocacy and community needs assessments. Providence st. Joseph health has a consistent compensation philosophy for all of its officers, including our senior executives. Salaries for senior executives are reviewed by the providence st. Joseph health committee. The board 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 st. Joseph health 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 whose revenue is similar to that of providence st. Joseph health. Additionally, providence st. Joseph health's labor market continues to spread across health care and into general industry. Because of this, providence st. Joseph health also takes into consideration general industry for-profit market data, where applicable. Base salaries for providence st. Joseph health executives are generally targeted to the median level of the market, 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. Performance incentives allow executives to earn additional compensation if they achieve specific organizational goals for furthering providence st. Joseph health 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 executive compensation fully complies with irs standards and mirrors best practices. The process to review compensation was last completed in march 2018.”

“The organization makes its governing documents, conflict of interest policy, and financial statements available to the public upon request. The psjh community benefit reports, financial reports, and philanthropy reports are also available on the psjh internet site. Audited financial statements are attached to form 990.”

“As members of the religious community, each sister has taken a vow of poverty as a compulsory part of her religious life. Any compensation for services of a sister inures only for the benefit of the community, not the individual members. All payments for services are made directly to the religious community.”

“Agency/Contract Labor: Program service expenses 21,837,536. Management and general expenses 1,812,520. Fundraising expenses 15,034. Total expenses 23,665,090. Medical Director & Med Physician Fees: Program service expenses 40,073,541. Management and general expenses 0. Fundraising expenses 0. Total expenses 40,073,541. Repairs & Maintenance: Program service expenses 14,909,365. Management and general expenses 3,985,026. Fundraising expenses 0. Total expenses 18,894,391. Billing & Collections: Program service expenses 0. Management and general expenses 1,009,314. Fundraising expenses 0. Total expenses 1,009,314. Records Management: Program service expenses 392,702. Management and general expenses 13,890. Fundraising expenses 0. Total expenses 406,592. Transcription & Translation Services: Program service expenses 36,803. Management and general expenses 0. Fundraising expenses 0. Total expenses 36,803. Dietary: Program service expenses 604,806. Management and general expenses 600,611. Fundraising expenses 0. Total expenses 1,205,417. Other Patient Services: Program service expenses 77,020,918. Management and general expenses 0. Fundraising expenses 0. Total expenses 77,020,918. Other Administrative Services: Program service expenses 7,922,046. Management and general expenses 25,065,741. Fundraising expenses 4,997. Total expenses 32,992,784. General Consulting Fees: Program service expenses 156,204. Management and general expenses 2,023,294. Fundraising expenses 0. Total expenses 2,179,498.”

“Net asset transfer - high school 114,000. Reclass fin 47 release from expense to change in net assets 5,071,453. Net cla closing entries 2,294,184. Pr change in value of beneficial interest in perpetual trust 52,076. Inventory transfer - independent and other entities 32,371. Rounding 13. Fas 136 - recipient organization adjustment 48,185,973. Net asset transfers to affiliates -794,745,732.”

“The tax-exempt bond liabilities were transferred from providence health system - so. California to its tax-exempt parent, providence st. Joseph health, during the year ended 12/31/17. The tax-exempt bond liability in part x, line 20 has been reclassed as an intercompany liability for tax-exempt bonds in part x, line 25.”