Seattle Children'S Healthcare System

“Warren hewitt has a business relationship with loren alhadeff, suzanne beitel, susan betcher, jill brubaker, marcus east, ken denman, colin fox, joel french, troy hutson, dan levitan, susan mullaney, mark okerstrom, judith pierce, racquel russell, john schoettler, kurt shintaffer, jeff sperring, moya vazquez, and conan viernes.”

“The board of trustees of seattle children's healthcare system approved the following significant changes to the bylaws: - elected trustees may serve no more than three (reduced from four) consecutive three year terms. Exceptions are permitted for a trustee serving as board chair or as a committee chair, which may serve one additional year. - the board shall include not less than ten (reduced from 15) and not more than 20 (reduced from 30) voting trustees.”

“Management reviews the form 990 with the governance, audit and compliance committee of the board of trustees. After review by the governance, audit and compliance committee and prior to filing the form 990 with the internal revenue service, the entire board of trustees receives a copy of the form 990.”

“The conflict of interest policy of seattle children's healthcare system (schs) requires an annual survey of all officers, board members and members of schs board committees, members of medical leadership, all individuals engaged to provide medical direction, staff members occupying roles with a degree of authority, members of the institutional review board, and members of seattle children's hospital's pharmacy and therapeutics committee. The senior vice president/chief legal officer of schs, acting under the oversight and board delegated authority of the schs governance, audit and compliance committee, oversees the review of all disclosures and establishes and oversees any necessary management plans related to them. In general, when a conflict of interest exists, the individual with the conflict must recuse themselves from participation in any board or committee discussion or other decision making regarding the transaction and refrain from voting on or deciding any issues relating to the conflicting interest. Any person covered by the policy who engages in conduct that violates the policy or pursues a transaction or event following disapproval by the governance, audit and compliance committee or the appropriate officer may, in the discretion of the governance, audit and compliance committee or the appropriate officer in accordance with their respective authority, be removed immediately from their duties with schs and/or terminated in their employment.”

“Executive compensation falls within the purview of the people, culture and executive compensation committee ("pcecc") of the board of trustees. Pursuant to the board-approved pcecc charter, the pcecc engages an independent third-party consultant with experience in the compensation of executives and other top managers of nonprofit hospitals and health care systems. With appropriate comparability data provided by its consultant (comprising market data regarding compensation paid for comparable services in comparable organizations), the pcecc engages in an annual review and assessment of the seattle children's healthcare system executive compensation program (base, incentive compensation, and employer-paid benefits) to determine competitiveness. Based on this analysis and on relevant performance information for the executives in question and the organization as a whole, the pcecc presents a recommendation to the board regarding the total compensation package for each of the affected executives, including the chief executive officer, chief financial officer, and key employees. The full board reviews the recommendations as well as all relevant comparability data and the goals of the organization in making its final decision. In doing so it relies on the consultant's analysis to determine that compensation is reasonable and within the "bounds of competitive practice." all deliberations and decisions of the pcecc and full board are documented in the books and records in accordance with general administrative provisions and procedures within the bylaws. The process followed by the pcecc and the full board satisfies best governance practices and also meets the requirements necessary to create a rebuttable presumption of reasonableness within the meaning of irc section 4958 and the treasury regulations thereunder with respect to the board's decision.”

“Seattle children's healthcare system makes its governing documents, conflict of interest policy, and financial statements available to the public upon request.”

“17 members of the board of trustees perform their duties uncompensated.”

“Strategic consulting: program service expenses 2,037,694. Management and general expenses 889,864. Fundraising expenses 0. Total expenses 2,927,558. Other purchased services: program service expenses 32,733. Management and general expenses 12,782. Fundraising expenses 0. Total expenses 45,515. Other consulting: program service expenses 26,667. Management and general expenses 11,646. Fundraising expenses 0. Total expenses 38,313. Physican purchased services: program service expenses 5,991. Management and general expenses 2,616. Fundraising expenses 0. Total expenses 8,607. Food and catering: program service expenses 3,682. Management and general expenses 1,608. Fundraising expenses 0. Total expenses 5,290.”

“Although seattle children's healthcare system has substantial contribution revenue, it does not incur fundraising expenses. All fundraising activities and contributions to seattle children's healthcare system are conducted by related organizations. See additional description for schedule m, line 32.”