Pacific Central Coast Health Centers

“Effective february 1, 2019, the organization's sole corporate member is dignity community care, a 501(c)(3) exempt organization.”

“Effective february 1, 2019, 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. Prior to february 1, 2019, dignity health, as the sole corporate member, ratifies the selection of members and the dignity health board approves new board members of the organization.”

“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.”

“The organization's cfo and director of finance worked closely with the related organization's tax department to review the return. The form 990, excluding compensation information, was provided to the organization's board of directors subsequent to filing with the internal revenue service.”

“The organization has adopted dignity health's conflicts of interest policy. During the period july 1, 2019 through june 30, 2020, dignity health was subject to written conflict of interest policies (the "coi policies."). These policies, provide for the disclosure and subsequent review and management of conflicts of interest that may exist for members of dignity health's governing bodies, including its board of directors and board committees, as well as dignity health's officers and executive leaders, key employees, management personnel at the vice president level and above, and any other designated personnel ("covered persons"). All covered persons are required to disclose actual or potential conflicts arising from the business, ownership, financial and personal interests held by such covered persons or their family members. Covered persons are required to disclose to their supervisors or relevant decision makers any interest that may present a conflict of interest, or the appearance of a conflict of interest. Such disclosure is required on a transactional basis at the time such conflicts arise, when an individual becomes a covered person (e.g. Upon hiring or upon promotion), and annually thereafter. As part of the annual disclosure survey conducted pursuant to the coi policies, each covered person is required to certify that he/she: (1) has received a copy of the coi policy or coi policies applicable to his/her position; (2) has read the coi policy and understands said policy; and (3) agrees to comply with all requirements of the coi policy, including completing the conflicts of interest disclosure survey as required by the coi policies. The information from the annual disclosure survey is used to monitor and manage disclosed conflicts of interest and assure decisions are made in the organization's best interests. The procedures for addressing a conflict of interest related to a proposed transaction in the case of governing bodies require that the board shall carefully scrutinize and must in good faith either approve or disapprove any transaction in which dignity health or a dignity health entity is a party and in which the director either: has a material financial interest or is a director or corporate officer of the other party (other than a dignity health-affiliated organization). The board must approve the transaction by majority of the directors on the board, without counting the vote of any individual who has an interest in the transaction. In reviewing such transactions between dignity health or dignity health entities and vendors or other contractors who are, or are affiliated with, directors, the board shall act no more or less favorably than it would in reviewing transactions with unrelated third parties. The transaction will not be approved unless the board determines that the transaction is fair to dignity health or the dignity health entity.”

“For 2019 compensation, the related organization's human resources department conducted an annual review and analysis to provide benchmarking data for the total compensation and benefits package of the top management official, other officers, and key employees. 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 for officers and key executives. The human resources and compensation committee also engages outside legal counsel as necessary and qualified independent compensation and benefits specialists (independent experts) to review, analyze and provide benchmarking data for the total compensation and benefits packages of officers and key executives. Appropriate comparable data is obtained from the independent experts, (e.g., total economic benefits paid by similarly situated organizations, both taxable and tax-exempt, for similar job responsibilities). Key deliberations of the committee are documented in meeting minutes which are approved at the next committee meeting and provided to the board of directors. The documentation of the deliberations includes (a) the terms of the agreement approved and the date approved; (b) the members of the committee who were present during discussion of the approved agreement and those who voted on it; and (c) the comparability data obtained and relied upon by the committee and how 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 health's consolidated financial statements which are available on both commonspirit health's and dignity health's websites and upon request.”

“One or more of the individuals who provide services to the organization as officers or directors are members of a religious congregation. Since all such sisters are subject to vows of poverty, fair market value compensation for their service is paid directly or indirectly to the religious congregation of which they are a member. The non-taxable benefits are paid on behalf of the order.”

“Pacific central coast health centers', sponsored by dignity health and dignity community care, mission is to provide access to cost effective, quality medical services in the northern santa barbara county, san luis obispo county, kern county and ventura county communities regardless of the patients ability to pay for the services.”

“Medical services: program service expenses 3,714,252. Management and general expenses 1,872,073. Fundraising expenses 0. Total expenses 5,586,325. Ps collection agency: program service expenses 1,614,714. Management and general expenses 813,855. Fundraising expenses 0. Total expenses 2,428,569. Administrative services: program service expenses 2,732,067. Management and general expenses 1,377,028. Fundraising expenses 0. Total expenses 4,109,095. Professional fees: program service expenses 388,866. Management and general expenses 195,998. Fundraising expenses 0. Total expenses 584,864. Repairs/maintenance: program service expenses 445,963. Management and general expenses 224,776. Fundraising expenses 0. Total expenses 670,739. Janitorial svcs/landscape/pest control: program service expenses 388,037. Management and general expenses 195,580. Fundraising expenses 0. Total expenses 583,617. Storage/shredding services: program service expenses 86,384. Management and general expenses 43,540. Fundraising expenses 0. Total expenses 129,924. Other purchased services: program service expenses 213,350. Management and general expenses 107,534. Fundraising expenses 0. Total expenses 320,884.”

“Adj of expense & revenue incurred, but booked at related org 1,073,459. True up of fy19 adjust of assets & liabilities, net, to fv pursuant to ac 115,905. Current year change in accounting - asc 842 adjustment -102,850.”

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