Dignity Health Medical Foundation

“Certain reportable individuals have business relationships with the related entities of dignity health medical foundation (including for-profit subsidiaries or joint ventures) as a result of serving as officers or board members of those entities. Board officer membership on the governing bodies of those related entities are as follows. C. Karlin-zysman, l. Blumenthal - business relationship t. Mcginn, r. Quinn, l. Blumenthal - business relationship t. Hylen, t, mcginn, m. Gerdes, r. Wiebe business relationship”

“The organization's sole corporate member is dignity community care, a 501(c)(3) exempt organization. On february 1, 2019, dignity health and catholic health initiatives ("chi"), a colorado nonprofit corporation, effected a business combination. On that date, chi changed its name to commonspirit health ("commonspirit") and became the sole corporate member of dignity health. Commonspirit is a catholic healthcare system sponsored by the public juridic person, catholic health care federation (chcf"). As part of the alignment, on the effective date of february 1, 2019, dignity health caused to transfer non-catholic owned community hospitals, non-catholic subsidiary hospitals, and certain other non-catholic operations to dignity community care, a colorado nonprofit corporation.”

“Dignity community care, as the sole corporate member, ratifies the selection of members and the dignity community care board approves new board members of the organization.”

“The organization is subject to the governance requirements of the commonspirit governance matrix. Thus, many key decisions addressed in the bylaws require the foundation to act by making a "recommendation," which is then formally acted on by the dignity community care board. Examples include amending corporate documents, approving members of governing board, approving removal of members of governing board, approval of dissolution and selling or disposing of assets. Reserved rights of the corporate member include adoption of mission and philosophy statements, amendment or restatement of articles of incorporation and bylaws, dissolution of the corporation, acquisition of another corporation, creation of a new subsidiary, merger or consolidation with another corporation, participation as a general or limited partner in any venture, incurring long-term indebtedness in excess of normal operating requirements, ratification of board member appointments and dismissals, selection and removal of independent auditors, and transactions outside the ordinary course of business.”

“There is a two-level review for the dignity health medical foundation form 990; first the accounting director worked closely with the related organization and an independent accounting firm it engaged to review the form 990, the final review was done by the ceo and cfo. The draft was also received by the board of directors. The draft was complete except it excluded compensation information for directors who are also key executives of dignity health. Compensation by dignity health to those directors was reviewed by the human resources and compensation committee of the commonspirit health board of stewardship trustees.”

“The organization has adopted the related organization, commonspirit's conflicts of interest policy. The conflicts of interest ("coi") policy (the "policy") was put in place to protect the interests of commonspirit in circumstances that may result in a conflict between personal interests of a person and the interests of the organization and those it serves. Commonspirit's coi policy applies to commonspirit, its direct affiliates and subsidiaries and any related entity the governing documents of which require the entity to comply with commonspirit policy (collectively the "system entities"). The following persons are required to disclose actual or potential conflicts of interest at least annually (via a formal system-administered survey) if the person's affiliation with commonspirit continues: - members of corporate and community boards of system entities - members of committees of corporate and community boards of system entities - members of the executive leadership team ("elt") of commonspirit - corporate officers of system entities - employed physicians and advanced practice providers - key employees and highest compensated employees as specified by the internal revenue service for form 990 purposes who are not otherwise included in the categories above - employees of system entities at the vice president level and above - all individuals engaged in research at institutions owned or operated by a system entity - select employees as determined from time to time by leadership disclosure, review, and management of perceived, potential, or actual conflicts of interest are accomplished through a defined coi disclosure review process. Each person is required to promptly and fully disclose any situation or circumstance that may create a conflict of interest as soon as she/he becomes aware of it. In addition, at the inception of an individual's relationship with commonspirit (e.g. Hiring, board appointment), and for certain positions, annually thereafter, written conflict of interest disclosure forms must be completed. A failure to disclose may result in disciplinary or corrective actions. Reported potential or actual conflicts of interest are initially reviewed by legal, corporate responsibility or research integrity staff. If necessary, a conflict of interest management plan is developed, which plan shall be subject to acceptance by the appropriate direct manager, supervisor, medical staff office, board or board committee (for board, board committee, elt or corporate officer conflicts), or other appropriate individual or body. Once accepted, the conflict of interest management plan is communicated to the person with the actual or potential conflict and the individual must conduct themselves in conformity with the plan. In the event that a transactional conflict interest arises in connection with a system entity board meeting, the conflicted individual must disclose that conflict prior to or at the beginning of the meeting in which the matter is to be considered. The conflicted individual is excluded from voting on the transaction and is prohibited from using personal influence with respect to the matter, but is not prohibited from providing input if requested to do so.”

“For 2023 compensation, compensation levels for the organization's top management official were established by the related organization, commonspirit. Commonspirit's board of stewardship trustees appoints a human resources and compensation committee, comprised exclusively of independent directors, who are accountable for setting reasonable compensation practices for the organization. The human resources and compensation committee approves, consistent with the organization's philosophy and principles, the annual performance goals and criteria to be used in determining merit increases and variable compensation criteria. The human resources and compensation committee also engages an independent consultant as necessary and qualified independent compensation and benefits specialists (independent experts) to validate the organization's benchmarking approach for the total compensation and benefits packages for certain executives. Appropriate comparable data is obtained by the commonspirit health compensation department from independent third-party salary surveys, (e.g., total economic benefits paid by similarly situated organizations, both taxable and tax-exempt, for similar job responsibilities). The documentation of compensation decisions includes (a) the decision made and the date approved; and (b) the comparability data obtained and relied upon by the compensation department and the sources from which the data was obtained.”

“Federal tax laws do not mandate that the organization's governing documents, conflict of interest policy and financial statements be made available for public inspection. The organization is included in commonspirit's consolidated financial statements which are available on commonspirit's website and upon request.”

“Dignity health medical foundation's mission is to establish, operate, and maintain a multi-specialty outpatient medical clinic to provide compassionate, high-quality, affordable patient care services and health education. Our clinic is committed to expanding quality health care access to those in need and contributing to the health and well-being of the communities we serve.”

“Medical services: program service expenses 567,435,716. Management and general expenses 1,118,900. Fundraising expenses 0. Total expenses 568,554,616. Management fees: program service expenses 31,750,670. Management and general expenses 18,983,596. Fundraising expenses 0. Total expenses 50,734,266. Admin services: program service expenses 15,994,661. Management and general expenses 9,563,142. Fundraising expenses 0. Total expenses 25,557,803. Professional consulting: program service expenses 1,212,782. Management and general expenses 725,118. Fundraising expenses 0. Total expenses 1,937,900. Maintenance/repairs: program service expenses 4,356,717. Management and general expenses 2,604,863. Fundraising expenses 0. Total expenses 6,961,580. Collection agencies: program service expenses 2,591,352. Management and general expenses 1,549,359. Fundraising expenses 0. Total expenses 4,140,711. Janitorial/landscape/storage and shredding: program service expenses 2,591,341. Management and general expenses 1,549,352. Fundraising expenses 0. Total expenses 4,140,693. Other purchased services: program service expenses 3,460,291. Management and general expenses 2,068,894. Fundraising expenses 0. Total expenses 5,529,185.”

“Gain on adoption of asu 2017-17 3,027,713. Change in ownership interest in a joint venture 85,022. Change in ownership interest on sale in a joint venture 186,747. Change in interest in unconsolidated foundation -35,118.”

“The organization did not change its oversight or selection process during the tax year.”

“The organization's federal awards were included in commonspirit's consolidated uniform guidance audited schedule of federal expenditures for the period of july 1, 2023 to june 30, 2024.”