Pacmed Clinics

“The sole Corporate Member is Western HealthConnect, a Washington nonprofit corporation.”

“The following powers are reserved to and exercised exclusively by the Corporate Member: 1) To amend or repeal the Articles of Incorporation or Bylaws. 2) To approve the acquisition of assets, the incurrence of indebtedness or the lease, sale, transfer, assignment or encumbering of the assets. 3) To approve the dissolution, liquidation, consolidation or merger with another corporation or entity with concurrence of the PacMed Community Board. 4) To approve the annual operating and capital budgets. 5) To appoint certified public accountants and receive the annual audit report from such accountants.”

“The Form 990 is prepared internally by experienced Providence Health & Services staff and reviewed by the Tax Director of Providence Health & Services and external tax advisors. The Board of Directors reviewed the Form 990 prior to filing with the IRS.”

“Providence Health & Services and its affiliates maintain a conflict of interest policy that applies to board members and management of all Providence-related organizations. The purpose of the policy is to guide and direct those serving the Providence Health & Services' corporations and other legal entities so they can (1) fulfill their fiduciary responsibilities and exercise stewardship in ways that promote and protect the best interests of Providence and, (2) avoid situations that create a conflict, or the appearance of a conflict, between the interests of an individual associated with Providence and Providence. On an annual basis, each board member and management level employee must complete and submit an updated conflict of interest statement. Conflict of interest disclosures are reviewed by the System Integrity Department working in conjunction with the Department of Legal Affairs. If it is determined that an actual conflict exists, appropriate follow-up action is taken with the individual to rectify the conflict.”

“The PacMed Board, through its compensation committee, established a requirement that any compensation arrangement for any "disqualified persons" (as defined in section 4958 of the internal revenue code of 1986, as amended (the "IRC") be established pursuant to a process that is consistent with the organization's status as an entity described in section 501(c) (3) of the IRC. The process established by the committee requires that compensation paid to such individuals be reasonable, that decisions with respect to such individuals' compensation be determined by disinterested persons based on appropriate comparability data, and that the organization contemporaneously document the basis for such decisions. In addition, certain executives and Key Employees are subject to the compensation policies of Providence Health & Services. 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 ministry 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 officers, including our senior executives. Salaries for senior executives are reviewed by the Providence St. Joseph Health Committee and approved by the full Board of Directors, none of whom is a Providence employee. 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 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. Additionally, Providence's labor market continues to spread across health care and into general industry. Because of this, Providence also takes into consideration general industry for-profit market data, where applicable. Base salaries for Providence executives are generally targeted to the median level of the market, as identified by the independent consultant and reviewed with the Executive Compensation Committee. Performance incentives allow executives to earn additional compensation if they achieve specific organizational goals for furthering Providence operating commitments and strategic objectives. The Board of Directors conducts a thorough 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 organization makes its governing documents and conflict of interest policy available upon request. The financial statements are summarized in the company's community service report which is also available upon request.”

“Richard Blair - 1801 Lind Avenue SW, Renton, WA 98057. Dave Olsen - 1801 Lind Avenue SW, Renton, WA 98057. Dick P. Allen - 1801 Lind Avenue SW, Renton, WA 98057. Isiaah Crawford - 1801 Lind Avenue SW, Renton, WA 98057. Sister Lucille Dean, SP - 1801 Lind Avenue SW, Renton, WA 98057. Sister Diane Hejna, CSJ, RN - 1801 Lind Avenue SW, Renton, WA 98057. Michael Holcomb - 1801 Lind Avenue SW, Renton, WA 98057. Phyllis Hughes, RSM - 1801 Lind Avenue SW, Renton, WA 98057. Sallye Liner - 1801 Lind Avenue SW, Renton, WA 98057. Mary Lyons, Ph.D. - 1801 Lind Avenue SW, Renton, WA 98057. Walter Noce, Jr. - 1801 Lind Avenue SW, Renton, WA 98057. Carolina Reyes, MD - 1801 Lind Avenue SW, Renton, WA 98057. Phoebe Yang - 1801 Lind Avenue SW, Renton, WA 98057. Fr. Tom Kopfensteiner - 1801 Lind Avenue SW, Renton, WA 98057. Chauncey Boyle, SP - 1801 Lind Avenue SW, Renton, WA 98057. Marian Schubert, CSJ - 1801 Lind Avenue SW, Renton, WA 98057. Michael A. Stein - 1801 Lind Avenue SW, Renton, WA 98057. Eugene "Al" Parrish - 1801 Lind Avenue SW, Renton, WA 98057. Bob Wilson - 1801 Lind Avenue SW, Renton, WA 98057. Martha Diaz Aszkenazy - 1801 Lind Avenue SW, Renton, WA 98057. Kirby McDonald - 1801 Lind Avenue SW, Renton, WA 98057. Charles (Chuck) Watts - 1801 Lind Avenue SW, Renton, WA 98057. Joel Gilbertson - 1801 Lind Avenue SW, Renton, WA 98057. Dan Harris - 1801 Lind Avenue SW, Renton, WA 98057. Cindy Strauss - 1801 Lind Avenue SW, Renton, WA 98057. Mike Butler - 1801 Lind Avenue SW, Renton, WA 98057. Jo Ann Escasa-Haigh - 1801 Lind Avenue SW, Renton, WA 98057. Debra Canales - 1801 Lind Avenue SW, Renton, WA 98057. Janice Newell - 1801 Lind Avenue SW, Renton, WA 98057. Orest Holubec - 1801 Lind Avenue SW, Renton, WA 98057. Greg Till - 1801 Lind Avenue SW, Renton, WA 98057. Sharon Toncray - 1801 Lind Avenue SW, Renton, WA 98057. Paul Stoddart - Thru 9/16 - 1801 Lind Avenue SW, Renton, WA 98057. Mark Gargett - 1801 Lind Avenue SW, Renton, WA 98057. Dave Hunter - Thru 6/16 - 1801 Lind Avenue SW, Renton, WA 98057. Gary Flaming - 1801 Lind Avenue SW, Renton, WA 98057. David Brown - 1801 Lind Avenue SW, Renton, WA 98057. Debbie Burton - 1801 Lind Avenue SW, Renton, WA 98057. Mary Cranstoun - 1801 Lind Avenue SW, Renton, WA 98057. Aaron Martin - 1801 Lind Avenue SW, Renton, WA 98057. Amy Compton-Phillips - 1801 Lind Avenue SW, Renton, WA 98057. Tom McDonagh - 1801 Lind Avenue SW, Renton, WA 98057. Rhonda Medows, MD - 1801 Lind Avenue SW, Renton, WA 98057. Harvey Smith - 1801 Lind Avenue SW, Renton, WA 98057. Lisa Vance - 1801 Lind Avenue SW, Renton, WA 98057. Mike Waters - 1801 Lind Avenue SW, Renton, WA 98057. Jack Friedman -Former - 1801 Lind Avenue SW, Renton, WA 98057. Randy Axelrod, MD - Former - 1801 Lind Avenue SW, Renton, WA 98057. Craig Wright, MD - 1801 Lind Avenue SW, Renton, WA 98057.”

“Purchased Services - Non Medical: Program service expenses 2,420,192. Management and general expenses 2,786,174. Fundraising expenses 0. Total expenses 5,206,366. Purchased Services - Medical: Program service expenses 69,845,160. Management and general expenses 0. Fundraising expenses 0. Total expenses 69,845,160. Transcription & Translations: Program service expenses 291,899. Management and general expenses 2,374. Fundraising expenses 0. Total expenses 294,273. Agency/Contract Labor: Program service expenses 2,668,073. Management and general expenses 1,055,066. Fundraising expenses 0. Total expenses 3,723,139. Professional Services/Consultants: Program service expenses 3,430,576. Management and general expenses 350,244. Fundraising expenses 0. Total expenses 3,780,820. Repairs & Maintenance: Program service expenses 1,024,172. Management and general expenses 842,736. Fundraising expenses 0. Total expenses 1,866,908. Physician Fees: Program service expenses 252,445. Management and general expenses 0. Fundraising expenses 0. Total expenses 252,445.”

“Rounding -2.”

“As a result of the Affiliation with Providence Health & Services, the financial information for Pacific Medical Center was included in the consolidated financial statements of the Providence Health System and under the supervision of the Audit & Compliance Committee. The Providence Health & Services Audit and Compliance Committee assists the Board of Directors with the oversight of the integrity of the System's consolidated financial statements and reporting, the audit process and the System's internal financial controls and policies; compliance with ethical, legal and regulatory standards and requirements; the independence, qualifications and performance of the System's internal and external auditors; the System's investment committee; and informs the Board of Directors of critical risk areas and recommended mitigation.”

“AFFILIATION AGREEMENTS Effective April 1, 2016, the Health System (Providence Health & Services) entered into a business combination agreement with the Institute for Systems Biology (ISB). The transaction was accounted for as an acquisition under ASC 958-805. On July 1, 2016, Providence Health & Services (PHS) and St. Joseph Health System (SJHS) entered into a business combination agreement, the purpose of which was to better serve both organizations' communities, maintain strong traditions of Catholic healthcare, and provide greater affordability and access to healthcare services. As part of the business combination, PHS and SJHS aligned under a single parent corporation, Providence St. Joseph Health, with a consolidated board of directors and cosponsorship from the public juridic persons Providence Ministries and St. Joseph Health Ministry. SJHS provides a full range of care facilities including 16 acute care hospitals, home health agencies, hospice care, outpatient services, skilled nursing facilities, community clinics, and physician groups spanning California, west Texas, and eastern New Mexico. The results of operations of these entities have been included in the combined statements of operations of the Health System since July 1, 2016, the effective date of the business combination.”