Form 990 for tax year 2023

Revenue

Part VIII, the statement of revenue.

• 1d · Related organizations

  $163,602

• 2a · Program service revenue: NET PATIENT REVENUE

  total $476,487,374 · related or exempt $472,621,549 · unrelated business $3,865,825

• 2b · Program service revenue: MOB RENTAL REVENUE

  total $1,297,342 · related or exempt $1,297,342

• 3 · Investment income

  total $120,527 · unrelated business -$24,174 · excluded $144,701

• 7a · Gross sales of assets other than inventory

  securities $6,664,187

• 7b · Less cost or other basis and sales expenses

  securities $0

• 7c · Gain or loss

  securities $6,664,187

• 7d · Net gain or loss

  total $6,664,187 · excluded $6,664,187

• 11a · Other revenue: PHARMACY REVENUE

  total $13,373,525 · related or exempt $13,373,525

• 11b · Other revenue: OTHER ADMIN REVENUE

  total $3,066,775 · related or exempt $3,066,775

• 11c · Other revenue: CAFETERIA REVENUE

  total $3,005,852 · related or exempt $3,005,852

• 11d · All other revenue

  total $5,967,098 · related or exempt $5,967,098

• 11e · Other revenue, total

  $25,413,250

Functional expenses

Part IX, the statement of functional expenses.

• 1 · Grants to domestic organizations and governments

  total $9,958 · program services $9,958

• 7 · Other salaries and wages

  total $141,351,462 · program services $130,855,868 · management and general $10,495,594

• 8 · Pension plan contributions

  total $3,101,214 · program services $2,870,943 · management and general $230,271

• 9 · Other employee benefits

  total $255,167 · program services $236,220 · management and general $18,947

• 10 · Payroll taxes

  total $10,448,414 · program services $9,672,601 · management and general $775,813

• 11b · Fees: legal

  total $450 · program services $417 · management and general $33

• 11g · Fees: other

  total $128,983,346 · program services $119,406,106 · management and general $9,577,240

• 12 · Advertising and promotion

  total $2,142 · program services $1,983 · management and general $159

• 13 · Office expenses

  total $4,594,359 · program services $4,253,220 · management and general $341,139

• 14 · Information technology

  total $19,593 · program services $18,138 · management and general $1,455

• 16 · Occupancy

  total $1,551,614 · program services $1,436,404 · management and general $115,210

• 17 · Travel

  total $320,885 · program services $297,059 · management and general $23,826

• 19 · Conferences, conventions and meetings

  total $1,066 · program services $987 · management and general $79

• 20 · Interest

  total $22,685,002 · program services $21,000,601 · management and general $1,684,401

• 22 · Depreciation, depletion and amortization

  total $18,672,996 · program services $17,286,493 · management and general $1,386,503

• 23 · Insurance

  total -$18,278 · program services -$16,921 · management and general -$1,357

• 24a · Other expenses: SYSTEM COST ALLOCATION

  total $141,123,039 · program services $130,644,406 · management and general $10,478,633

• 24b · Other expenses: MEDICAL SUPPLIES

  total $91,766,884 · program services $91,766,884

• 24c · Other expenses: HOSPITAL FEE

  total $9,967,555 · program services $9,967,555

• 24d · Other expenses: UBI TAXES PAID

  total $508,174 · program services $470,441 · management and general $37,733

• 24e · All other expenses

  total $3,129,686 · program services $2,897,301 · management and general $232,385

Balance sheet

Part X, book values.

• 1 · Cash, non-interest-bearing

  beginning of year $294,058,765 · end of year $255,312,043

• 2 · Savings and temporary cash investments

  beginning of year $144,281,374 · end of year $5,488,331

• 4 · Accounts receivable

  beginning of year $37,848,333 · end of year $81,442,987

• 7 · Other notes and loans receivable

  beginning of year $536,125 · end of year $211,031

• 8 · Inventories for sale or use

  beginning of year $7,961,816 · end of year $8,352,234

• 9 · Prepaid expenses and deferred charges

  beginning of year $49,346 · end of year $29,701,253

• 10a · Land, buildings and equipment: cost or other basis

  $820,431,162

• 10b · Land, buildings and equipment: accumulated depreciation

  $491,736,509

• 10c · Land, buildings and equipment, net

  beginning of year $306,730,824 · end of year $328,694,653

• 11 · Investments: publicly traded securities

  beginning of year $149,501,424 · end of year $159,900,168

• 12 · Investments: other securities

  beginning of year $3,756,412 · end of year $4,912,920

• 14 · Intangible assets

  beginning of year $12,967,667 · end of year $10,304,000

• 15 · Other assets

  beginning of year $13,381,263 · end of year $10,267,052

• 17 · Accounts payable and accrued expenses

  beginning of year $32,263,866 · end of year $25,326,918

• 19 · Deferred revenue

  beginning of year -$2,042,643 · end of year $43,282,258

• 25 · Other liabilities

  beginning of year $546,214,751 · end of year $566,372,509

• 27 · Net assets without donor restrictions

  beginning of year $394,637,150 · end of year $259,604,762

• 28 · Net assets with donor restrictions

  beginning of year $225 · end of year $225

The filer's explanations (Part III)

PART I, LINE 1A

PROVIDENCE EXPENSE REIMBURSEMENT PROCEDURES INCLUDE THE FOLLOWING POLICIES: FIRST CLASS TRAVEL OR CHARTER TRAVEL AIR TRAVEL IS GENERALLY REIMBURSABLE AT THE LEAST EXPENSIVE AIRFARE WHICH PERMITS DEPARTURES AND ARRIVALS AT REASONABLE TIMES AND REASONABLE DISTANCE TRAVELED. EMPLOYEES ARE ENCOURAGED TO PLAN IN ADVANCE TO GET AVAILABLE DISCOUNTS. AIRLINE FREQUENT FLYER UPGRADES WILL NEVER BE REIMBURSED. IN LIMITED SITUATIONS, FIRST CLASS TICKETS AND CHARTER MAY BE REIMBURSED WHEN APPROVED BY A SENIOR LEVEL SUPERVISOR. TAX INDEMNIFICATION AND GROSS-UP PAYMENTS TAX INDEMNIFICATIONS OR GROSS-UP PAYMENTS - RELOCATION PROVIDENCE FOLLOWS THE FEDERAL AND STATE TAXATION LAWS RELATED TO RELOCATION EXPENSES PAID TO THE EMPLOYEE OR TO A THIRD PARTY ON THE EMPLOYEE'S BEHALF. THEY ARE CONSIDERED TAXABLE WAGES AND ARE REPORTED AS SUCH. BASED ON THE WAY PROVIDENCE HAS CHOSEN TO PAY THE RELOCATION EXPENSES, PROVIDENCE REPORTS REIMBURSEMENTS AND PAYMENTS TO VENDORS AS INCOME AND THESE EXPENSE PAYMENTS ARE REFLECTED ON THE EXECUTIVE'S FORM W-2. PROVIDENCE PROVIDES A GROSS-UP FOR THE RELOCATION BENEFITS, SO THAT A PORTION OF THE REIMBURSEMENT DOES NOT HAVE TO BE USED TO PAY TAXES, AND THIS TAX GROSS-UP IS ALSO REPORTED AS TAXABLE INCOME. THE AMOUNTS REPORTED FOR THESE GROSS-UP PAYMENTS ARE INCLUDED ON SCHEDULE J, PART II, COLUMN B (III) - OTHER REPORTABLE COMPENSATION ON THE FORM 990. TAX INDEMNIFICATIONS OR GROSS-UP PAYMENTS - FINANCIAL/RETIREMENT PLANNING PROVIDENCE FOLLOWS THE FEDERAL AND STATE TAXATION LAWS RELATED TO FINANCIAL AND RETIREMENT PLANNING EXPENSES PAID TO THE EMPLOYEE OR TO A THIRD PARTY ON THE EMPLOYEE'S BEHALF. THEY ARE CONSIDERED TAXABLE WAGES AND ARE REPORTED AS SUCH. BASED ON THE WAY PROVIDENCE HAS CHOSEN TO PAY THESE OTHER EXPENSES, PROVIDENCE REPORTS REIMBURSEMENTS AND PAYMENTS TO VENDORS AS INCOME AND THESE EXPENSE PAYMENTS ARE REFLECTED ON THE EXECUTIVE'S FORM W-2. PROVIDENCE PROVIDES A GROSS-UP FOR THIS BENEFIT, SO THAT A PORTION OF THE PAYMENT DOES NOT HAVE TO BE USED TO PAY TAXES, AND THIS TAX GROSS-UP IS ALSO REPORTED AS TAXABLE INCOME. THE AMOUNTS REPORTED FOR THESE GROSS-UP PAYMENTS ARE INCLUDED ON SCHEDULE J, PART II, COLUMN B (III) - OTHER REPORTABLE COMPENSATION ON THE FORM 990. PERSONAL SERVICES PROVIDENCE OFFERS FINANCIAL PLANNING SERVICES AS AN OPTIONAL BENEFIT TO EMPLOYEES AT VICE PRESIDENT LEVEL AND ABOVE. THE AMOUNTS REPORTED FOR THE FINANCIAL PLANNING SERVICES ARE INCLUDED AS TAXABLE INCOME ON SCHEDULE J, PART II, COLUMN B (III) - OTHER REPORTABLE COMPENSATION ON THE FORM 990 FOR THE EMPLOYEES WHO PARTICIPATE.

PART I, LINE 3

DESCRIPTION OF PROCESS TO REVIEW COMPENSATION PAID TO TOP MANAGEMENT OFFICIAL THE ORGANIZATION'S CHIEF EXECUTIVE OFFICER/TOP MANAGEMENT OFFICIAL IS PAID BY A RELATED TAX-EXEMPT ORGANIZATION, COVENANT CHILDREN'S HOSPITAL, AND IS DISCLOSED AS A PERSON PAID BY A RELATED ORGANIZATION. SEE SCHEDULE O, PART VI, LINE 15A FOR THE PROCESS USED BY PROVIDENCE.

PART I, LINES 4A-B

THE FOLLOWING INDIVIDUALS RECEIVED SEVERANCE PAYMENTS DURING THE YEAR: JOHN GRIGSON - $388,278 CHRIS LANCASTER - $26,709 ENTITIES WITHIN THE PROVIDENCE SYSTEM SPONSOR NON-QUALIFIED SUPPLEMENTAL EXECUTIVE RETIREMENT PLANS FOR CERTAIN EXECUTIVES. THE PLANS PROVIDE FOR EMPLOYER CONTRIBUTIONS BASED ON A PERCENTAGE OF EXECUTIVE BASE SALARY AND, DEPENDING ON THE PLAN, ARE SUBJECT TO EITHER A THREE YEAR, AGE 59 1/2 OR A FIVE YEAR, AGE 65 VESTING SCHEDULE. UNTIL THE EXECUTIVE PROVIDES THESE SUBSTANTIAL FUTURE SERVICES, THESE SUPPLEMENTAL RETIREMENT CONTRIBUTIONS ARE AT RISK, AND WILL BE FORFEITED IF THE EXECUTIVE LEAVES THE ORGANIZATION BEFORE REACHING HER OR HIS VESTING DATE. THE SUPPLEMENTAL RETIREMENT CONTRIBUTIONS ARE INCLUDED IN COLUMN (C) AS A NONTAXABLE BENEFIT IN THE YEAR THE CONTRIBUTION IS CREDITED TO THE EXECUTIVE'S ACCOUNT, AND ARE INCLUDED AGAIN ON THE FORM 990 IN COLUMN (B)(III) IF AND WHEN THE AMOUNT BECOMES VESTED IN A FUTURE YEAR, AS THE FORM 990 REQUIRES. THE FOLLOWING INDIVIDUALS RECEIVED A PAYOUT DURING THE CURRENT YEAR: RICHARD PARKS - $206,534 WALTER CATHEY - $64,541 JOHN GRIGSON - $56,385 AMY THOMPSON, M.D. - $53,422 JAMES KELLY - $45,298 CHRIS LANCASTER - $35,558 SHELLY HOOK, M.D. - $8,434

PART I, LINE 7

NON-FIXED PAYMENTS THE PROVIDENCE EXECUTIVE COMPENSATION COMMITTEE (OF THE BOARD) HAS APPROVED AN EXECUTIVE COMPENSATION PHILOSOPHY THAT CLOSELY TIES AN EXECUTIVE'S COMPENSATION TO PERFORMANCE - BOTH THE PERFORMANCE OF THE ORGANIZATION AND THE PERFORMANCE OF THE EXECUTIVE. THERE IS NO GUARANTEE THAT THIS PART OF A LEADER'S COMPENSATION WILL BE PAID - IF THE PERFORMANCE OF THE ORGANIZATION OR OF THE INDIVIDUAL DOES NOT MEET THE PERFORMANCE STANDARDS FOR PAYMENT, NO PERFORMANCE-BASED PAYMENT IS MADE. THIS APPROACH IS REFLECTED IN PROVIDENCE'S LEADERSHIP ANNUAL INCENTIVE PLAN AND LONG-TERM INCENTIVE PLAN, WHICH ARE PERFORMANCE-BASED ANNUAL INCENTIVE PLANS THAT AFFORD PARTICIPATING EXECUTIVES THE OPPORTUNITY TO EARN "AT RISK" COMPENSATION THROUGH PERFORMANCE AGAINST VERY CHALLENGING GOALS. PAYOUTS WILL BE AWARDED BASED ON GOALS RELATED TO STRATEGIC OBJECTIVES, FISCAL STEWARDSHIP AND QUALITY OF CARE - THESE GOALS ARE SET BEFORE THE YEAR BEGINS AND ARE VERY CHALLENGING. THE EXECUTIVE COMPENSATION COMMITTEE REVIEWS AND APPROVES EACH YEAR'S PERFORMANCE GOALS TO MAKE SURE THEY ARE SUFFICIENTLY CHALLENGING, AND TO MAKE SURE THE GOALS ARE DESIGNED TO HELP PROVIDENCE MEET ITS MISSION AND STRATEGIC PURPOSES. EACH YEAR THE PSJH BOARD EXECUTIVE COMPENSATION COMMITTEE REVIEWS THE INCENTIVE PERFORMANCE AND MUST CERTIFY THE ACHIEVEMENT OF PERFORMANCE GOALS BEFORE ANY AWARDS ARE PAID OUT. WHEN REVIEWING AND APPROVING TOTAL COMPENSATION FOR EXECUTIVES, THE EXECUTIVE COMPENSATION COMMITTEE INCLUDES INCENTIVE AWARDS, TO MAKE SURE THAT COMPENSATION IS REASONABLE AND WELL-SUPPORTED BY MARKET DATA. THE COMMITTEE CONSISTS ONLY OF DIRECTORS WHO ARE FREE OF CONFLICTS OF INTEREST, AND THE COMMITTEE RELIES ON MARKET SURVEY DATA GATHERED BY AN INDEPENDENT CONSULTANT. THE COMMITTEE CONDUCTS THIS REVIEW AND APPROVAL PROCESS IN A MANNER THAT IS IN ACCORDANCE WITH IRS REQUIREMENTS FOR COMPENSATION OF TAX-EXEMPT ORGANIZATION LEADERS, AND IN ACCORDANCE WITH THE BEST GOVERNANCE PRACTICES IN THE INDUSTRY.

Related partnerships

Part III: related organizations taxable as a partnership, with the filer's share.

• 20TH STREET SURGERY LLC

  AMBULATORY SURGERY CENTER · CA

• BRIDGEPORT MEDICAL IMAGING LLC (BMI)

  IMAGING - DIAGNOSTICS · OR · general or managing partner

• BROADWAY IMAGING LLC

  MEDICAL IMAGING · MT · general or managing partner

• CANBY MEDICAL CENTER I LLC

  REAL ESTATE - MOB · OR · general or managing partner

• CENTER FOR MEDICAL IMAGING LLC (CMI)

  IMAGING - DIAGNOSTICS · OR · general or managing partner

• CLACKAMAS RADIATION ONCOLOGY CENTER LLC

  RADIATION ONCOLOGY · OR · general or managing partner

• COMPREHENSIVE IMAGING PARTNERS OF ORANGE COUNTY

  HEALTHCARE · CA · general or managing partner

• COVENANT HIGH PLAINS SURGERY CENTER LLC

  HEALTHCARE · PA · general or managing partner

• COVENANT PARK PHASE I VENTURE LLC

  REAL ESTATE · TX

• CSS JV LLC

  AMBULATORY SURGERY CENTER · OR

• FIRST HILL SURGERY CENTER LLC

  AMBULATORY SURGERY CENTER · WA · general or managing partner

• FULLERTON SURGICAL CENTER LP

  AMBULATORY SURGERY CENTER · CA · general or managing partner

• GREATER VALLEY MEDICAL BUILDING LP

  REAL ESTATE - MOB · CA · general or managing partner

• HERITAGE INVESTMENT GROUP I LLC

  INVESTMENTS · CA

• IMAGING ASSOCIATES LLC

  MEDICAL IMAGING · AK · general or managing partner

• LSC REAL PROPERTY LLC

  REAL ESTATE · TX · general or managing partner

• METHODIST DIAGNOSTIC IMAGING

  HEALTHCARE · TX · general or managing partner

• MISSION VIEJO PARTNERS II LLC

  REAL ESTATE - MOB · CA · general or managing partner

• NORTH OC IMAGING JV HOLDINGS LLC

  HEALTHCARE · CA

• OREGON ADVANCED IMAGING LLC

  MEDICAL IMAGING · OR · general or managing partner

• PAVILION SURGERY CENTER LLC

  AMBULATORY SURGERY CENTER · CA

• PERFORMANCE MEDICAL EQUIPMENT & RESPIRATORY SERVICES LLC

  MEDICAL EQUIPMENT · WA · general or managing partner

• PETCT IMAGING AT SWEDISH CANCER INSTITUTE LLC

  MEDICAL IMAGING · WA · general or managing partner

• PHS INVESTMENT TRUST SHORT TERM INVESTMENT PORTFOLIO

  INVESTMENTS · WA

• PROVIDENCE & SCA OFF-CAMPUS HOLDINGS LLC

  MEDICAL · AL

• PROVIDENCE & SCA ON-CAMPUS HOLDINGS LLC

  MEDICAL · AL · general or managing partner

• PROVIDENCE ALASKA HOUSE I OWNER LP

  SUPPORTIVE HOUSING · AK

• PROVIDENCE HOUSE OAKLAND LP

  SUPPORTIVE HOUSING · CA · general or managing partner

• PROVIDENCE IMAGING CENTER JOINT VENTURE

  MEDICAL IMAGING · AK

• PROVIDENCE ST JOSEPH HEALTH LONG TERM PORTFOLIO

  EXCLUDED · INVESTMENTS · WA · 3.56% owned · share of income $7,937,816 · share of assets $160,452,848

  Directly controlled by PHS WA

• PROVIDENCE SURGERY CENTER LLC

  AMBULATORY SURGERY CENTER · MT

• PROVIDENCEUSP SPOKANE SURGERY CENTERS LLC

  AMBULATORY SURGERY CENTER · WA

• PROVIDENCEUSP SURGERY CTRS LLC

  AMBULATORY SURGERY CENTER · CA

• RADIATION THERAPY INNOVATIONS LLC

  HEALTHCARE · WA · general or managing partner

• RIVERSIDE HEALTHCARE

  HEALTHCARE · MN · general or managing partner

• ST JOSEPH PHYSICIAN VENTURES I LLC

  REAL ESTATE · CA · general or managing partner

• ST JOSEPHSATELLITE DIALYSIS CENTERS LLC

  HEALTHCARE · CA

• ST JUDE SURGICAL CENTERS LLC

  AMBULATORY SURGERY CENTER · CA · general or managing partner

• ST PETER-SOUTH SOUND REGIONAL MRI CENTER

  MEDICAL IMAGING · WA · general or managing partner

• SURGERY CENTER AT TANASBOURNE LLC

  AMBULATORY SURGERY CENTER · KS · general or managing partner

• THE MADISON SPOKANE INN LLC

  HOTEL SERVICES · WA · general or managing partner

• WON-ONC LLC

  REAL ESTATE - MOB · WA · general or managing partner

Related corporations and trusts

Part IV: related organizations taxable as a corporation or trust.

• 1221 MADISON STREET OWNERS ASSOC

  C · OWNERS' ASSOCIATION · WA

• ADVATA INC (FKA KENSCI INC)

  C · HEALTHCARE · WA

• AMERICAN UNITY GROUP LTD

  C · CAPTIVE INSURANCE · BD

• AYIN HEALTH HOLDINGS INC

  C · HEALTHCARE · DE

• AYIN HEALTH SOLUTIONS INC

  C · HEALTHCARE · OR

• BOURGET HEALTH SERVICES INC

  C · CLINICAL/MEDICAL LAB · WA

• CARON CORPORATION

  C · MEDICAL PHYSICIAN SERVICE · MT

• CLOUD 21 LIMITED

  C · HEALTHCARE · UK

• ENDOSCOPY CENTER OF SOUTHERN CALIFORNIA

  S · HEALTHCARE · CA

• HCSA PROPERTIES LLC

  C · REAL ESTATE RENTAL · WA

• KENSCI ASIA PACIFIC PTE LTD

  C · HEALTHCARE · SN

• KENSCI TECH INDIA PRIVATE LIMITED

  C · HEALTHCARE · IN

• LUBBOCK METHODIST HOSP PRACTICE MGMT

  C · INACTIVE · TX

• LUBBOCK METHODIST HOSPITAL SVCS

  C · HEALTHCARE · TX

• MEDICAL SPECIALTIES MANAGERS INC

  C · HEALTHCARE · WA

• MISSION VIEJO MEDICAL VENTURES INC

  C · HEALTHCARE · CA

• PHN HOLDINGS

  C · STRATEGIC PLANNING SERVICES · CA

• PRAIA HEALTH INC

  C · HEALTHCARE · DE

• PROVIDENCE GLOBAL CENTER LLP

  C · IT SVCS · IN

• PROVIDENCE HEALTH CARE VENTURES INC

  C · CLINICAL/MEDICAL LAB · WA

• PROVIDENCE HEALTH NETWORK

  C · PREPAID HEALTHCARE · CA

• PROVIDENCE PARTNERS HOLDINGS INC

  C · INVESTMENT · DE

• PROVIDENCE PHYSICIAN SERVICES CO

  C · HEALTHCARE · WA

• PROVIDENCE ST JOSEPH HEALTH NETWORK

  C · HEALTHCARE · CA

• PROVSOURCE

  C · HEALTHCARE · DE

• ST JOSEPH HEALTH

  C · HOLDING COMPANY · CA

• ST JOSEPH HEALTH SOURCE INC

  C · HEALTHCARE · CA

• ST JOSEPH MEDICAL PLAZA ASSOCIATION

  C · CONDO ASSOCIATION · CA

• ST JOSEPH PROF SVCS ENTERPRSES INC

  C · HEALTHCARE · CA

• TEGRIA HOLDINGS LLC (FKA GRADY BLOCKER LLC)

  C · HOLDING COMPANY · DE

• TEGRIA INSIGHTS GROUP HOLDINGS INC

  C · HOLDING COMPANY · WA

• TEGRIA INSIGHTS GROUP INC

  C · HEALTHCARE · WA

• TEGRIA PRODUCTS GROUP INC

  C · HOLDING COMPANY · DE

• TEGRIA RCM GROUP US INC

  C · HOLDING COMPANY · DE

• TEGRIA RCM GROUP INC (FKA PROV RCM GROUP INC)

  C · HOLDING COMPANY · DE

• TEGRIA SERVICES GROUP INC (FKA PROVIDENCE SERVICES GROUP)

  C · HOLDING COMPANY · DE

• TEGRIA SERVICES GROUP-CAN INC

  C · HEALTHCARE · CA

• TEGRIA SERVICES GROUP-US INC (FKA BLUETREE NETWORK INC)

  C · HEALTHCARE · WI

• TRUSANA INC

  C · HEALTHCARE · DE

• VINSERRA INC

  C · INVESTMENT · CA

• WEIGHT LOSS INC (FKA HMR WEIGHT MANAGEMENT SERVICES CORP)

  C · HEALTHCARE · WA