2024-05-13T13:17:40-05:00 2023-06-30 450250958 Eide Bailly LLP 800 Nicollet Mall Ste 1300 Minneapolis MN 554027033 990 2023-01-01 454789950 Confluence Health System CONF 5096644868 1201 S Miller St Wenatchee WA 98801 Thomas Legel Chief Financial Officer 5096644868 2024-05-13 1 Thomas Legel 999009999 1 Kim Hunwardsen CPA P00484560 6122536500 2024-05-13 2 AAL1 IAL1 2023 2023-04-26 12:10:37Z X Thomas Legel 1201 S Miller St Wenatchee WA 98801 139024254 0 X www.confluencehealth.org X 2012 WA Improving health by providing high-quality care in a compassionate and cost-effective manner. X 15 9 0 45 0 0 730716 200489 283375181 138789508 67690 0 -20822 34257 284152765 139024254 790901 420197 0 0 89939920 43273591 0 0 0 187136440 95700882 277867261 139394670 6285504 -370416 80488899 0 74550159 0 5938740 0 X Improving health by providing high-quality care in a compassionate and cost-effective manner. 0 1 99862553 420197 138789508 Confluence Health provides the administrative and shared functions as follows:A. Maintain the availability and access to high quality, cost-effective healthcare services for the North Central Washington (NCW) community;B. Improve coordination of limited health care resources and maximize the efficiency of the health care system to achieve the most cost-effective care that can be delivered;C. Preserve NCW community control over important care decisions and ensure NCW community involvement in the development of the medical infrastructure and oversight of the NCW community healthcare delivery system;Continued on Schedule OD. Enhance the patient-physician relationship and maintain the high quality of care and breadth of services the NCW community currently enjoys;E. Improve teamwork and integration across the continuum of care and ensure that physicians and other healthcare providers lead clinical designs and clinical decisions;F. Ensure that physicians and administrative leaders have a shared vision regarding the NCW community health care delivery system;G. Ensure that the NCW community economy, jobs, and business partners are preserved and can grow with the region in a responsible way;H. Develop a high performing integrated health care delivery system for the NCW community that could apply for and be successful with contracts from Medicare so that the newly created health system can be identified as an accountable care organization if so desired and position the health system so that it could contract for the overall system of care and be successful with a newly developed risk contracts being offered by commercial insurers;I. Establish, equip, operate and maintain benevolent and charitable institutions for the giving of medical and surgical care to the sick, wounded, and suffering irrespective of sex, marital status, disability, color, race, religious belief, sexual orientation, economic status, or pecuniary circumstances; andJ. Carry on any educational activities, related to the rendering of care to the sick and injured or the promotion of health which, in the opinion of the Board of Directors of the health system may be justified by the facilities, personnel, funds or other requirements that are or can be made available in accordance with the laws of the state of Washington. 99862553 1 1 0 1 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1 1 0 0 0 0 0 0 0 1 0 0 0 1 0 0 1 1 1 0 0 1 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 X 15 9 1 0 1 0 0 0 0 1 1 0 0 1 1 1 1 1 1 1 1 0 X Thomas Legel 5096621511 1201 South Miller Street Wenatchee WA 98801 X Doug Shae Chair 2.00 4.00 X X 0 0 0 Cori Bautista Vice Chair 2.00 4.00 X X 0 0 0 Gus Heinicke Treasurer 2.00 4.00 X X 0 0 0 Abe Sorom MD Secretary 2.00 4.00 X X 0 0 0 Dave Balcom Board Member 1.00 3.00 X 0 0 0 Mabel Bodell MD Board Member 1.00 3.00 X 0 0 0 Garn Christensen Board Member 1.00 3.00 X 0 0 0 Jenny Cravens Board Member 1.00 3.00 X 0 0 0 Vanessa Gutierrez Board Member 1.00 3.00 X 0 0 0 Greg Hamilton Board Member 1.00 3.00 X 0 0 0 Jennifer Jorgensen MD Board Member 1.00 3.00 X 0 0 0 James Murray MD Board Member 1.00 3.00 X 0 0 0 Catherine Ridgeway MD Board Member 1.00 3.00 X 0 0 0 Vicky Scharlau Board Member 1.00 3.00 X 0 0 0 Michael Tuggy MD Board Member 1.00 3.00 X 0 0 0 Tom Tuszynski MD Board Member (January) 1.00 3.00 X 0 0 0 Mitchell A Garrison MD Board Member (January) 1.00 3.00 X 0 0 0 Andrew Jones MD Chief Executive Officer 50.00 0.00 X 0 0 0 Thomas J Legel Chief Financial Officer 50.00 0.00 X 0 0 0 Katina Maier Chief People Officer 50.00 0.00 X 0 0 0 Glenn Adams Chief Operations Officer 50.00 0.00 X 0 0 0 Robert J Pageler Chief Information Officer 50.00 0.00 X 0 0 0 Jason Lake MD Chief Medical Officer 50.00 0.00 X 0 0 0 0 0 0 0 0 0 0 0 200489 200489 Managed Care Revenue 541610 74074667 74074667 Management Services 541610 61992299 61992299 Other Operating Income 900099 2722542 2722542 138789508 34257 0 34257 34257 34257 139024254 138789508 0 34257 X 50000 50000 370197 370197 2059139 769307 1289832 307526 307526 29775918 14688085 15087833 1349875 701744 648131 7275949 3729389 3546560 2505184 1284709 1220475 784721 784721 79608942 75777278 3831664 544847 23019 521828 932210 85160 847050 1577461 89695 1487766 5019 5019 2363081 154578 2208503 939692 740822 198870 Repairs and Maintenance 7537165 306228 7230937 Taxes and Licenses 1386029 40 1385989 Medical Supplies 21715 55 21660 139394670 99862553 39532117 0 0 0 0 24672 0 0 0 0 0 5751262 0 0 0 22952653 0 0 0 29811727 0 0 21948585 0 80488899 0 25948194 0 39981307 0 1454920 0 7165738 0 74550159 0 X 5938740 0 5938740 0 80488899 0 X -370416 -5568324 X 0 0 0 X X X 2 Wenatchee Valley Hospital 455563741 3 1 16117998 0 Central Washington Health Services 910171250 3 1 45874301 0 2 61992299 0 1 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1 1 1 X 1 1 Part IV, Section D, Line 3: The Health System shares the same board with the supported organizations and as such the board of the Healthsystem oversees all activities of the supported organizations including investment policies and use of the income and assets. Part IV, Section E, Lines 3a and 3b: The Health System is organized as a non-profit, tax exempt entity under Washington law. The Health System was created as a means to integrate its related hospitals, including Central Washington Hospital and Wenatchee Valley Hospital. The Health System is the sole member and manages all the organizations under a common governance structure consistent with the goals and objective of the parties. All the board members serve on all three boards. This entity provides all administrative and oversight functions by virtue of employing all management employees. RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED 0 0 0 0 0 0 0 0 1 35487 35487 0 Part II-B, Line 1: $23,333 was provided to Capitol Associates, Inc (CAI) who is a Washington-Based Bipartisan, Lobbying, Government Relations and Public Relations firm. The organization's work includes the preparation of congressional testimony and the planning and execution of briefings for members of congress and their staff. $12,154 was provided to Daniels-Brown Communications (DBC) who is a Washington-based media relations firm. The organization's work includes federal and state legislative advocacy services, crisis communications planning and management, political campaign consulting, and diplomatic relations with US and Foreign Embassies 1 Wenatchee Valley College 1300 Fifth St Wenatchee WA 98801 910817705 501(c)(3) 50000 0 General Support 1 0 Breast, Cervical, and Colon Cancer Screening Program 601 337710 HIV Prevention and Care Program 85 32487 Part I, Line 2: Outside organizations submit requests to the organization throughout the year. The requests are separated based on the monetary value requested. Each request requires support from the requesting organization as to the purpose/use of the funds and whether the request benefits the community. Two committees review the requests based on the monetary value of the request. Ivy Murray Family Member of Director 55044 Employment 0 Carole Johnson Family Member of Director 32588 Employment 0 Saxton Sykes Family Member of Director 16073 Employment 0 Ashley Garrison Family Member of Director 141205 Employment 0 Malinda Garrison Family Member of Director 62616 Employment 0 Cash and Cash Equivalents 2023-06-30 7526270 General Ledger 910171250 Central Washington Health Services 1201 S Miller St Wenatchee WA 98801 501(c)(3) Receviables 2023-06-30 131238192 General Ledger 910171250 Central Washington Health Services 1201 S Miller St Wenatchee WA 98801 501(c)(3) Prepaid Expenses 2023-06-30 6174925 General Ledger 910171250 Central Washington Health Services 1201 S Miller St Wenatchee WA 98801 501(c)(3) Fixed Assets 2023-06-30 45929543 General Ledger 910171250 Central Washington Health Services 1201 S Miller St Wenatchee WA 98801 501(c)(3) Right of Use Assets 2023-06-30 36711348 General Ledger 910171250 Central Washington Health Services 1201 S Miller St Wenatchee WA 98801 501(c)(3) Investment in Health Alliance NW 2023-06-30 6390819 General Ledger 910171250 Central Washington Health Services 1201 S Miller St Wenatchee WA 98801 501(c)(3) Inventory 2023-06-30 10046 General Ledger 910171250 Central Washington Health Services 1201 S Miller St Wenatchee WA 98801 501(c)(3) Other Assets 2023-06-30 5900929 General Ledger 910171250 Central Washington Health Services 1201 S Miller St Wenatchee WA 98801 501(c)(3) 1 1 0 0 1 1 1 1 1 1 Part I, Line 2e: Explanation of Involvement: The organization and transferee organization share a common list of officers and board members. Part I, Line 6c: The bonds are held by the obligated group and will continue to be held as a liability of Central Washington Health Services. Form 990, Part III, line 3 The organization ceased activities and merged into Central Washington Health Services on June 30, 2023. Form 990, Part VI, Section A, line 1a Any committee, to the extent provided in the resolution of the Board, will have and may exercise any of the powers and authority of the Board, except that committees shall not have any power or authority as to the following: (i) electing, appointing, or removing any member of any such committee or any Board Member or officer of the Health System; (ii) amending, altering or repealing of the Bylaws; (iii) amending, altering or repealing of the articles of ncorporation; (iv) adopting a plan of merger or adopting a plan of consolidation with another corporation; (v) uthorizing the sale, lease, or exchange of all or substantially all of Confluence's or the Health System's property and assets not in the ordinary course of business; (vi) authorizing Confluence's or the Health System's voluntary dissolution or revoking proceedings therefor; (vii) adopting a plan for the distribution of Confluence's or the Health System's assets; (viii) amending, altering, or repealing any Board resolution which by its terms provides that it shall not be amended, altered, or repealed by such committee; (ix) the fixing of Board Members' compensation; or (x) action on matters committed by the Bylaws or by Board resolution to another Board committee. The standing committees of the Board of Directors (the "Standing Committees") shall include a Finance Committee, a Quality Enhancement and Safety Committee, an Audit and Enterprise Risk Management Committee, a Governance and Strategic Planning Committee, and a Human Capital and Compensation Committee having such powers and duties delegated by the Board that are not inconsistent with Section 3 hereof or any existing delegation of powers to a committee of Board Members. Standing Committees shall have at least one Clinic Member and one Community Member. Form 990, Part VI, Section A, line 2 Confluence Health and Affiliates share the same board as part of the operating structure. As such, all board members serve with each other in a similar capacity on related organizations. Additionally, some board members are minority owners in an entity that has a professional services agreement with Confluence Health. Form 990, Part VI, Section A, line 4 THe Board of Directors approved Articles of Merger effective June 30, 2023. Form 990, Part VI, Section B, line 11b A copy of the Form 990 is reviewed by the Chief Financial Officer and Vice President of Finance. Subsequent to this review the Form 990 is reviewed by the governing board before being filed with the IRS. Form 990, Part VI, Section B, line 12c Board members, executive team members, and directors are required to review the current conflict of interest policy and complete an annual questionnaire. The nominating committee of the board reviews questionnaires of existing and new members for potential conflicts of interest. Any potential conflicts of interest are resolved by the nominating committee. The executive team reviews questionnaires submitted by the executive team members and directors for potential conflicts of interest. Potential conflicts of interest are resolved by the executive team in collaboration with the corporate compliance officer. Review of all conflict of interest statements is noted within the board minutes. Form 990, Part VI, Section B, line 15 The compensation committee of the governing board annually reviews independent salary survey information and recommends a salary and/or a salary increase for the CEO to the governing board. The other officers receive an annual percent increase which non-contractual employees receive unless the CEO awards a different percentage. The amount is, typically, based on current CPI, market and salary survey information. Form 990, Part VI, Section C, line 19 Confluence Health's governing documents, conflict of interest policy, and audited financial statements are available to the public upon request. Form 990, Part IX, line 11g Professional Fees: Program service expenses 908,576. Management and general expenses 0. Fundraising expenses 0. Total expenses 908,576. Professional Fees - Managed Care: Program service expenses 73,739,119. Management and general expenses 0. Fundraising expenses 0. Total expenses 73,739,119. Professional Fees - PSA's: Program service expenses 0. Management and general expenses 54,801. Fundraising expenses 0. Total expenses 54,801. Professional Fees - ACO: Program service expenses 201,190. Management and general expenses 0. Fundraising expenses 0. Total expenses 201,190. Purchased Services: Program service expenses 928,393. Management and general expenses 3,776,863. Fundraising expenses 0. Total expenses 4,705,256. Form 990, Part XI, line 9: Transfer net assets to Central Washington Health Services -16,385,906. Receipt of net assets from Wenatchee Valley Hospital 10,817,582. Central Washington Health Services Association 1201 S Miller St Wenatchee WA 98801 910171250 Hospital WA 501(c)(3) Line 3 Confluence Health 1 Wenatchee Valley Hospital 820 N Chelan Ave Wenatchee WA 98801 455563741 Hospital WA 501(c)(3) Line 3 Confluence Health 1 0 0 0 0 0 0 0 0 0 0 0 1 0 1 1 0 1 1 1 Central Washington Health Services Association L 45874301 Cost Allocation Wenatchee Valley Hospital L 16117998 Cost Allocation Wenatchee Valley Hospital S 10817582 General Ledger Central Washington Health Services Association R 16385906 general Ledger