Inova Health System Foundation

“With the exception of the duties and responsibilities that are reserved to the board of trustees as required by law, the executive committee is appointed by the board to support the board of trustees in the performance of its duties and responsibilities that are time-sensitive and must be addressed before the next regularly scheduled meeting of the full board.”

“The form 990 is prepared and provided to the corporate controller and external tax consultants for initial review. After the review it is given to the cfo of inova health system for review and comment. The form 990 is presented to the executive committee of the board of trustees for their review. Upon completion of the executive committee review, it is provided to the full board of trustees.”

“Annually the organization distributes the conflict of interest policy to all directors, officers, trustees, and key employees. The organization requires that each director, officer, trustee, and key employee acknowledge that they have read, understood, and will abide by the policy. Each director, officer, trustee, and key employee is required to complete and submit an annual conflict of interest disclosure. These disclosures are broad and require that the individual list any business relationships or personal relationships with other directors, officers, trustees, and key employees, as well as any relationships with competitors, or current or potential vendors or contractors. Disclosure statements are reviewed by senior management and any potential conflicts are discussed with governing body chairman to ensure that any member who may have a conflict discloses their potential conflict, and is dismissed from related discussions and recused from participation in applicable decisions.”

“The compensation of all senior management positions is evaluated annually in consideration of each manager's job content, scope and complexity. Compensation levels for executives are reviewed by an independent external consultant to ensure that remuneration is consistent with the organization's compensation philosophy and objectives and competitive with other large complex health systems. The independent compensation consultant maintains national benchmark compensation databases and surveys and also reviews forms 990 of comparable healthcare systems to determine market levels of compensation. In addition, the inova health system's ceo's compensation is reviewed along with certain other senior executives and approved annually by an independent governing board. The job requirements and complexity of all other management positions are evaluated annually using nationally recognized third-party salary surveys to assure that the compensation for such positions is consistent with external market compensation comparisons. Salary ranges are developed for each management position classification to ensure that the compensation levels for these positions are consistent with the organization's compensation philosophy and with competitive market comparisons. Compensation for employed physicians is reviewed and approved by the provider contracts committee. The committee is comprised of executive management of the clinical enterprise and physician services group. The fair market value (fmv) compensation is based on four nationally recognized industry physician compensation benchmark surveys (mgma, amga, sullivan & cotter, gallagher (formerly integrated)). The committee also utilizes independent consultants to provide fmv opinions for positions that are not readily available in the four published benchmark surveys. The consultants' opinions and compensation survey data are presented to the provider contracts committee for review and approval.”

“Inova health system makes certain information publicly available. Inova's consolidated financial statements are posted on the electronic municipal market access's (emma) website on a quarterly basis. Inova's governing documents are not currently publicly available. While the conflict of interest policy is not specifically publicly disclosed, inova's code of conduct is on the public website. Section ii of the code of conduct describes what can constitute a conflict and requires that potential conflicts be reported to management or the chief compliance officer and/or inova's legal department. The code of conduct contains the conflict of interest principles, is part of inova's orientation and annual compliance training, and is available to team members and physicians on inova's intranet website.”

“The innovation health holdings, llc form k-1 does not include the earnings from two 100% owned corporate entities: innovation health insurance company innovation health plan, inc. The net income related to these two entities has been recorded on this line and as a fund balance adjustment.”

“The organization files its forms 1099 under a subsidiary entity and does not report any employee compensation under its own ein. The organization falls under a master pay agent and does not file any payroll returns under its own ein, however all required returns have been filed on time.”

“Equity earnings in subs 5,633,551. Transfers 772. Innovation partnership net income -102,040. Innovation health net income -9,543,721. Lorton surgery partnership net loss 1,024,318. Net asset reclassification -13,530. Pledge accounting differences -5,141,152. Restricted investment income -4,190,302.”

“The company is part of the inova health system, a not-for-profit integrated health care delivery system serving northern virginia and surrounding areas. The company's financial statements are consolidated in the inova health system consolidated financial statements. Inova health system is audited on an annual basis by a "big four" independent public accounting firm. In addition, the accounting frim is responsible for the issuance of a management letter encompassing each member of the consolidated group. The finance and audit committee of the board of trustees of inova health system is responsible for the oversight of the audit, including the hiring of the audit firm, review and approval of audited financial statements and communication with the external auditors at least twice a year without the presence of internal management.”

“The company is a part of the inova health system (ihs), a not-for-profit integrated health care delivery system serving northern virginia and surrounding areas. Ihs receives various federal grants. These grants and awards are audited as part of the consolidated inova health system uniform guidance compliance audit. The inova health system's federal grants are audited on an annual basis by a "big four" independent public accounting firm and a "report of independent auditors on compliance for each major program; report on internal control over compliance and report on schedule of expenditures of federal awards required by the uniform guidance" is issued on a consolidated basis. The finance and audit committee of the board of trustees of inova health system is responsible for the oversight of the uniform guidance audit, including the hiring of the audit firm, review and approval of audited financial statements and communications with the external auditors during the year without the presence of internal management.”