Form 990 for tax year 2023

Revenue

Part VIII, the statement of revenue.

• 1d · Related organizations

  $22,819,221

• 1e · Government grants (contributions)

  $4,166,489

• 1f · All other contributions, gifts and grants

  $545,386

• 1g · Noncash contributions included above

  $12,055

• 2a · Program service revenue: PATIENT SERVICES

  total $814,945,222 · related or exempt $814,945,222

• 2b · Program service revenue: HOME CARE 340B PROGRAM

  total $11,911,286 · related or exempt $11,911,286

• 2c · Program service revenue: SUPPORT SERVICES

  total $6,607,365 · related or exempt $6,607,365

• 2d · Program service revenue: LAB SERVICES

  total $79,871 · related or exempt $79,871

• 3 · Investment income

  total $42,428,988 · unrelated business -$3,051,050 · excluded $45,480,038

• 4 · Income from investment of tax-exempt bond proceeds

  total $991,791 · excluded $991,791

• 6a · Gross rents

  real property $1,128,900

• 6b · Less rental expenses

  real property $684,982

• 6c · Rental income or loss

  real property $443,918

• 6d · Net rental income or loss

  total $443,918 · excluded $443,918

• 7a · Gross sales of assets other than inventory

  securities $761,518,412 · other assets $212,002

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

  securities $713,629,476 · other assets $160,592

• 7c · Gain or loss

  securities $47,888,936 · other assets $51,410

• 7d · Net gain or loss

  total $47,940,346 · excluded $47,940,346

• 10a · Gross sales of inventory

  $416,820

• 10b · Cost of goods sold

  $269,800

• 10c · Net income from sales of inventory

  total $147,020 · excluded $147,020

• 11a · Other revenue: CAFETERIA REVENUE

  total $2,727,849 · excluded $2,727,849

• 11d · All other revenue

  total $10,662,976 · excluded $10,662,976

• 11e · Other revenue, total

  $13,390,825

Functional expenses

Part IX, the statement of functional expenses.

• 1 · Grants to domestic organizations and governments

  total $1,511,774 · program services $1,511,774

• 2 · Grants to domestic individuals

  total $381,859 · program services $381,859

• 5 · Compensation of officers, directors and key employees

  total $13,756,808 · management and general $13,756,808

• 7 · Other salaries and wages

  total $302,248,035 · program services $229,173,201 · management and general $73,074,834

• 8 · Pension plan contributions

  total $17,696,373 · program services $13,594,426 · management and general $4,101,947

• 9 · Other employee benefits

  total $52,877,143 · program services $37,036,546 · management and general $15,840,597

• 10 · Payroll taxes

  total $22,498,625 · program services $16,443,407 · management and general $6,055,218

• 11a · Fees: management

  total $4,872,384 · management and general $4,872,384

• 11b · Fees: legal

  total $4,272,541 · management and general $4,272,541

• 11c · Fees: accounting

  total $286,324 · management and general $286,324

• 11d · Fees: lobbying

  total $127,500 · management and general $127,500

• 11f · Fees: investment management

  total $6,067,999 · management and general $6,067,999

• 11g · Fees: other

  total $117,575,314 · program services $117,311,708 · management and general $263,606

• 12 · Advertising and promotion

  total $2,010,232 · program services $50,508 · management and general $1,959,724

• 13 · Office expenses

  total $146,265,126 · program services $137,021,921 · management and general $9,243,205

• 14 · Information technology

  total $8,833,093 · program services $6,523,527 · management and general $2,309,566

• 16 · Occupancy

  total $8,734,950 · program services $6,674,658 · management and general $2,060,292

• 17 · Travel

  total $1,009,291 · program services $297,690 · management and general $711,601

• 19 · Conferences, conventions and meetings

  total $379,862 · program services $31,979 · management and general $347,883

• 20 · Interest

  total $10,785,604 · program services $8,252,595 · management and general $2,533,009

• 22 · Depreciation, depletion and amortization

  total $39,890,357 · program services $22,049,014 · management and general $17,841,343

• 23 · Insurance

  total $8,065,453 · management and general $8,065,453

• 24a · Other expenses: HOSPITAL FEE PROGRAM

  total $42,926,883 · program services $42,926,883

• 24b · Other expenses: PURCHASED SERVICES

  total $29,466,811 · program services $13,608,119 · management and general $15,858,692

• 24c · Other expenses: BAD DEBT

  total $13,481,552 · program services $13,481,552

• 24d · Other expenses: UBI TAXES

  total $976,377 · program services $976,377

• 24e · All other expenses

  total $13,999,011 · program services $1,160,212 · management and general $12,838,799

Balance sheet

Part X, book values.

• 1 · Cash, non-interest-bearing

  beginning of year $812,358 · end of year $840,653

• 2 · Savings and temporary cash investments

  beginning of year $488,908,207 · end of year $561,470,620

• 3 · Pledges and grants receivable

  beginning of year $968,363 · end of year $766,903

• 4 · Accounts receivable

  beginning of year $103,018,092 · end of year $137,465,776

• 5 · Loans and receivables from officers and key people

  beginning of year $58,150,923 · end of year $58,823,805

• 8 · Inventories for sale or use

  beginning of year $14,738,794 · end of year $17,617,644

• 9 · Prepaid expenses and deferred charges

  beginning of year $11,904,486 · end of year $13,365,224

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

  $922,643,854

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

  $473,608,098

• 10c · Land, buildings and equipment, net

  beginning of year $445,055,720 · end of year $449,035,756

• 11 · Investments: publicly traded securities

  beginning of year $536,982,420 · end of year $557,599,978

• 12 · Investments: other securities

  beginning of year $251,771,950 · end of year $374,492,887

• 13 · Investments: program-related

  beginning of year $44,683,956 · end of year $41,233,162

• 15 · Other assets

  beginning of year $184,945,266 · end of year $114,276,688

• 17 · Accounts payable and accrued expenses

  beginning of year $90,954,979 · end of year $93,309,225

• 23 · Secured mortgages and notes payable

  beginning of year $246,977,204 · end of year $238,789,518

• 25 · Other liabilities

  beginning of year $32,279,753 · end of year $28,706,347

• 27 · Net assets without donor restrictions

  beginning of year $1,744,021,434 · end of year $1,931,011,467

• 28 · Net assets with donor restrictions

  beginning of year $27,707,165 · end of year $35,172,539

The filer's explanations (Part III)

PART I, LINE 3

VALLEY CHILDREN'S HOSPITAL RELIED ON A RELATED ORGANIZATION, VALLEY CHILDREN'S HEALTHCARE, TO ESTABLISH THE COMPENSATION AND BENEFITS USING ALL OF THE METHODS INCLUDED ON LINE 3 EXCEPT "FORM 990 OF OTHER ORGANIZATIONS AND "WRITTEN EMPLOYMENT CONTRACT."

PART I, LINES 4A-B

SEVERANCE PAYMENTS TOTALING $393,078 AND $419,557 WERE MADE TO JOEL BROWNELL AND JOLIE LIMON, RESPECTIVELY DURING THE CALENDAR YEAR AND ARE INCLUDED IN PART II, COLUMN B(III). THE SEVERANCE PAYMENTS ARE SUBJECT TO A CONFIDENTIALITY CLAUSE; TERMS AND CONDITIONS OF THE AGREEMENTS WILL BE PROVIDED TO THE IRS UPON REQUEST. SUPPLEMENTAL NONQUALIFIED RETIREMENT PLANS INCLUDE 1) A NONCONTRIBUTORY, NONQUALIFIED DEFERRED COMPENSATION PLAN FOR A SELECT GROUP OF MANAGEMENT CALLED THE DEFINED CONTRIBUTION SUPPLEMENTAL EMPLOYEE RETIREMENT PLAN (DCSERP), 2) A SPLIT DOLLAR LIFE INSURANCE PROGRAM USED AS A RETENTION TOOL FOR CERTAIN KEY EXECUTIVES. PARTICIPANTS OF THIS PROGRAM FORFEIT ELIGIBILITY FOR THE DCSERP (SEE SCHEDULE L PART V FOR A BROADER DESCRIPTION) AND 3) AN ADDITIONAL DEFERRED COMPENSATION PLAN BENEFITTING CERTAIN KEY EXECUTIVES (457F RT). $1,088,761 WAS PAID OUT OF THE DCSERP PLAN DURING THE YEAR. DCSERP PAYOUT AND EMPLOYER ACCRUAL TO THE DCSERP FOR CALENDAR YEAR 2023 ARE AS FOLLOWS: BEVERLY HAYDEN-PUGH - DCSERP PAYOUT $86,760; ACCRUAL $86,737 JESSIE HUDGINS - DCSERP PAYOUT $55,415; ACCRUAL $51,311 JANE WILLSON - DCSERP PAYOUT $72,388; ACCRUAL $72,369 STEPHANIE VANCE - DCSERP PAYOUT $50,747; ACCRUAL $54,851 NATALE PONTICELLO - DCSERP PAYOUT $105,414; ACCRUAL $70,014 KAREN DAHL - DCSERP PAYOUT $65,617; ACCRUAL $70,948 KEVIN SHIMAMOTO - DCSERP PAYOUT $68,057; ACCRUAL $67,982 DANIELLE BARRY - DCSERP PAYOUT $49,185; ACCRUAL $70,041 JOEL BROWNELL - DCSERP PAYOUT $164,011; ACCRUAL $56,377 DAVID HODGE JR - DCSERP PAYOUT $70,399; ACCRUAL $72,675 LYNNE ASHBECK - DCSERP PAYOUT $64,741; ACCRUAL $64,724 JOLIE LIMON - DCSERP PAYOUT $167,863; ACCRUAL $60,221 VICKY TILTON - DCSERP ACCRUAL $37,343 KELLY BEALL - DCSERP ACCRUAL $29,006 JOSEPH EGAN - DCSERP ACCRUAL $36,854 MICHAEL GOLDRING, WILLIAM CHALTRAW, JR, DAVID CHRISTENSEN, TODD SUNTRAPAK, MICHELE WALDRON, DANIELLE BARRY, KELLY BEALL, AND VICKY TILTON PARTICIPATE IN THE SPLIT-DOLLAR LIFE INSURANCE PROGRAM IN LIEU OF THE DCSERP. THE EFFECTIVE DATE OF PARTICIPATION FOR DANIELLE BARRY, VICKY TILTON AND KELLY BEALL WAS MAY 2023, AND THE DC SERP CONTRIBUTIONS WERE SUBSEQUENTLY FORFEITED. BEVERLY HAYDEN-PUGH AND NATALE PONTICELLO PARTICIPATE IN A 457F RT DEFERRED COMPENSATION PLAN. THE FOLLOWING AMOUNTS PAID DURING THE 2023 CALENDAR YEAR: BEVERLY HAYDEN-PUGH - $490,849 NATALE PONTICELLO - $454,332

PART I, LINE 7

AN INCENTIVE PLAN HAS BEEN ESTABLISHED THAT ALLOWS FOR PAYMENT OF INCENTIVES BASED ON NETWORK WIDE GOALS TO QUALIFYING INDIVIDUALS. SUCH GOALS ARE RELATED TO A VARIETY OF METRICS INCLUDING OPERATIONAL AND QUALITY RESULTS OF THE HOSPITAL AND ITS RELATED ENTITIES. THE INCENTIVE PLAN HAS BEEN APPROVED BY THE COMPENSATION COMMITTEE OF THE VALLEY CHILDREN'S HEALTHCARE BOARD OF TRUSTEES. THE COMMITTEE REVIEWS AND APPROVES THE PLAN GOALS AT THE BEGINNING OF THE PLAN YEAR AND ACHIEVEMENT OF THESE GOALS, AND FORECASTED PAYOUTS, AT THE END OF EACH YEAR.

Disregarded entities

Part I: entities that legally are the filer and file no return of their own.

• HERNDON TEMPERANCE LLC

  REAL PROPERTY · CA · income $721,800 · assets $5,828,158

  Directly controlled by VALLEY CHILDREN'S HOSPITAL

Related partnerships

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

• FOWLER BUSINESS & PROFESSIONAL PARK LLC

  RELATED · REAL ESTATE INVESTMENT · CA · 50% owned · share of income $400,722 · share of assets $16,779,198 · general or managing partner

• COMPASS HEALTH ADMINISTRATORS LLC

  BENEFIT ADMIN · CA

Related corporations and trusts

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

• VALLEY CHILDREN'S HOLDINGS I LLC

  C · HEALTHCARE · CA

• FOWLER BUSINESS & PROFESSIONAL PARK PROPERTY OWNERS ASSOCIATION

  C · PROPERTY OWNERS ASSOCIATION · CA · 50% owned · share of assets $8,086

  Directly controlled by FOWLER BUSINESS & PROFESSIONAL PARK LLC