Form 990 for tax year 2023

Revenue

Part VIII, the statement of revenue.

• 1d · Related organizations

  $12,902,566

• 2a · Program service revenue: INSTITUTIONAL SUPPORT

  total $165,708,394 · related or exempt $165,708,394

• 2b · Program service revenue: MEDICAID REVENUE

  total $72,874,649 · related or exempt $72,874,649

• 2c · Program service revenue: NET PHYSICIAN REVENUE

  total $39,238,701 · related or exempt $39,238,701

• 2d · Program service revenue: OTHER GOVT AGENCY REV

  total $3,223,715 · related or exempt $3,223,715

• 2e · Program service revenue: BILLING SERVICES

  total $87,934 · related or exempt $87,934

• 3 · Investment income

  total $605,201 · excluded $605,201

• 7a · Gross sales of assets other than inventory

  securities $4,725,148

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

  securities $5,093,885

• 7c · Gain or loss

  securities -$368,737

• 7d · Net gain or loss

  total -$368,737 · excluded -$368,737

Functional expenses

Part IX, the statement of functional expenses.

• 5 · Compensation of officers, directors and key employees

  total $7,410,468 · program services $7,410,468

• 6 · Compensation of disqualified persons

  total $1,048,212 · program services $1,048,212

• 7 · Other salaries and wages

  total $236,389,081 · program services $236,389,081

• 8 · Pension plan contributions

  total $8,952,544 · program services $8,952,544

• 9 · Other employee benefits

  total $3,509,252 · program services $3,509,252

• 10 · Payroll taxes

  total $5,779,938 · program services $5,779,938

• 11b · Fees: legal

  total $260,120 · management and general $260,120

• 11c · Fees: accounting

  total $173,574 · management and general $173,574

• 11f · Fees: investment management

  total $157,894 · management and general $157,894

• 11g · Fees: other

  total $11,659,862 · management and general $11,659,862

• 13 · Office expenses

  total $42,264 · management and general $42,264

• 16 · Occupancy

  total $86,131 · management and general $86,131

• 20 · Interest

  total $18,335 · management and general $18,335

• 22 · Depreciation, depletion and amortization

  total $1,538 · management and general $1,538

• 23 · Insurance

  total $13,156,317 · program services $13,077,435 · management and general $78,882

• 24a · Other expenses: CITY & STATE BUS. TAXES

  total $5,175,419 · program services $5,175,419

• 24b · Other expenses: CLINIC DEVELOPMENT

  total $1,857,430 · program services $1,857,430

Balance sheet

Part X, book values.

• 2 · Savings and temporary cash investments

  beginning of year $10,554,391 · end of year $17,665,540

• 4 · Accounts receivable

  beginning of year $22,357,822 · end of year $24,305,723

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

  $188,488

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

  $180,798

• 10c · Land, buildings and equipment, net

  beginning of year $0 · end of year $7,690

• 11 · Investments: publicly traded securities

  beginning of year $16,629,986 · end of year $18,281,743

• 15 · Other assets

  beginning of year $805,157 · end of year $339,876

• 17 · Accounts payable and accrued expenses

  beginning of year $18,137,540 · end of year $18,194,524

• 25 · Other liabilities

  beginning of year $32,147,926 · end of year $42,344,158

• 27 · Net assets without donor restrictions

  beginning of year $61,890 · end of year $61,890

The filer's explanations (Part III)

PART I, LINE 3

COMPENSATION OF THE CUMG EXECUTIVE DIRECTOR IS REVIEWED BY REPRESENTATIVES OF THE UNIVERSITY OF WASHINGTON SCHOOL OF MEDICINE AND SEATTLE CHILDREN'S HOSPITAL. THE REVIEW RELIES ON COMPARISON OF COMPENSATION TO SIMILARLY SITUATED INDIVIDUALS, IN LIKE-SIZED ORGANIZATIONS ENGAGED IN SIMILAR ACTIVITIES. THE COMPARISON IS PERFORMED BY AN INDEPENDENT CONTRACTOR CONSULTANT WITH EXPERIENCE AND EXPERTISE IN EXECUTIVE COMPENSATION OF ACADEMIC MEDICAL CENTER PERSONNEL. THE COMPENSATION COMPARISON DATA IS REVIEWED BY DISINTERESTED EMPLOYEES OF UW MEDICINE AND SEATTLE CHILDREN'S HOSPITAL. FOR SEATTLE CHILDREN'S HOSPITAL, THIS IS PART OF AN OVERALL REVIEW OF COMPENSATION FOR SIMILARLY SITUATED INDIVIDUALS IN OTHER COMPONENTS OF SEATTLE CHILDREN'S HOSPITAL. THE REVIEW IS PERFORMED REGULARLY, AND DOCUMENTATION IS MAINTAINED BY SEATTLE CHILDREN'S HOSPITAL.

PART I, LINE 7

CUMG IS THE PRACTICE PLAN FOR UNIVERSITY OF WASHINGTON (UW) SCHOOL OF MEDICINE FACULTY PHYSICIANS AND HEALTH CARE PRACTITIONERS WHO PROVIDE CLINICAL CARE PRIMARILY TO PEDIATRIC PATIENTS. CUMG BILLS AND COLLECTS REVENUE GENERATED BY THE CLINICAL SERVICES OF THESE PHYSICIAN AND HEALTH CARE PRACTITIONERS (CUMG PROFESSIONAL MEMBERS). ALL REVENUES COLLECTED BY CUMG ARE ALLOCATED IN ACCORDANCE WITH THE ASSOCIATION OF CHRMC AND UNIVERSITY PHYSICIANS D/B/A CHILDREN'S UNIVERSITY MEDICAL GROUP AMENDED AND RESTATED INCOME DISTRIBUTION PLAN (IDP). CUMG MAINTAINS A "MASTER" IDP AND EACH CUMG DEPARTMENT OR DIVISION ALSO MAINTAINS A DEPARTMENTAL (OR DIVISIONAL) IDP THAT PROVIDES MORE DETAIL AS TO HOW ADDITIONAL COMPENSATION (INCENTIVE PAYMENT) IS CALCULATED AND PAID TO PARTICIPATING INDIVIDUALS (THE PHYSICIANS AND HEALTH CARE PRACTITIONERS WITH PRACTICE AGREEMENTS MAKING THEM ELIGIBLE FOR INCENTIVE PAYMENTS). DEPARTMENTS AND DIVISIONS ARE COMPRISED OF THE FACULTY PHYSICIANS AND HEALTHCARE PRACTITIONERS WITHIN EACH SPECIALTY OR PRIMARY CARE AREA OF CLINICAL PRACTICE. THE DEPARTMENTAL AND DIVISIONAL IDPS ALIGN WITH THE CLINICAL DEPARTMENTS OF THE UWSOM. EACH CLINICAL DEPARTMENT OF THE UWSOM HAS A DEPARTMENT CHAIR WHO APPROVES THE IDP FOR THE CUMG DEPARTMENT/DIVISION. THE CUMG DIVISION CHIEF ALSO APPROVES THE IDP FOR THE DIVISION AS DOES THE UW MEDICINE AND SEATTLE CHILDREN'S HOSPITAL CEOS. UNDER ALL IDPS, REVENUES GENERATED BY FACULTY ARE ALLOCATED TO THE FACULTY MEMBER'S DEPARTMENT, AND THE FUNDS FLOW IS SUBJECT TO CERTAIN STANDARDIZED DEDUCTIONS AS FOLLOWS: FIRST, REVENUES ARE USED TO PAY CUMG OPERATING EXPENSES. OF THE REMAINING REVENUES, ELEVEN PERCENT (11%) IS DIVIDED EQUALLY AND ALLOCATED TO THE UWSOM CLINICAL MEDICINE FUND AND SEATTLE CHILDREN'S HOSPITAL CLINICAL MEDICINE FUND, RESPECTIVELY. THE REMAINING REVENUES ARE USED TO PAY DEPARTMENT DIRECT CLINICAL COSTS, THEN PHYSICIAN/PRACTITIONER SALARY AND BENEFITS. THERE IS A PERCENTAGE CONTRIBUTION TO DEPARTMENT (AND DIVISION) OPERATIONS AND RESERVE FUNDS. PAYMENTS FOR SERVICES PROVIDED TO SEATTLE CHILDREN'S HOSPITAL AND SUPPORT FROM UW SCHOOL OF MEDICINE ARE RECEIVED. FINALLY, A POOL IS CREATED FOR ADDITIONAL COMPENSATION. WHILE SOME ADDITIONAL COMPENSATION MAY BE IN THE FORM OF FIXED PAYMENTS FOR A DEFINED PERIOD, EACH DEPARTMENTAL/DIVISIONAL IDP PROVIDES FOR PARTICIPATING INDIVIDUALS TO RECEIVE VARIABLE ADDITIONAL COMPENSATION. THE METRICS FOR CALCULATING ADDITIONAL COMPENSATION GENERALLY ARE BASED ON WORK PERSONALLY PERFORMED BY THE PRACTICE PLAN PHYSICIAN OR HEALTH CARE PROFESSIONAL DURING THE PERIOD OF RECORD. WHERE PERSONAL WORK IS NOT THE METRIC, THE UWSOM CLINICAL DEPARTMENTAL CHAIR ESTABLISHES A PER CAPITA DISTRIBUTION OF THE POOL TO ALL PARTICIPATING INDIVIDUALS. THE PERCENTAGE OF REVENUES ALLOCATED TO THE DEPARTMENT AND/OR DIVISION OPERATING AND RESERVE FUND IS ESTIMATED BY THE DEPARTMENT AND APPROVED BY THE UW MEDICINE CEO AND THE CHIEF EXECUTIVE OFFICER OF SEATTLE CHILDREN'S HOSPITAL, OR THEIR RESPECTIVE DESIGNEES, IN A BUDGET ESTABLISHED PRIOR TO THE PERIOD OF RECORD. THE PERIOD OF RECORD IS EITHER A 12-MONTH OR 6-MONTH PERIOD DURING WHICH THE REVENUES AND EXPENSES FOR THE PRACTICE PLAN ARE ALLOCATED. THE ACTUAL PERCENTAGE FOR DEPARTMENTAL/DIVISIONAL OPERATIONS AND RESERVE CONTRIBUTION MAY BE MODIFIED FROM THE ORIGINAL ESTIMATE BASED ON THE OPERATIONAL NEEDS OF THE DEPARTMENT OR DIVISION, AND WHEN THAT OCCURS, THE PERCENTAGE IS ADJUSTED RETROACTIVELY BY THE CHAIR OF THE DEPARTMENT AND THE DIVISION HEAD OF THE CUMG DIVISION, UPON APPROVAL BY THE DEAN AND THE CEO. AT THE END OF THE PERIOD OF RECORD, AMOUNTS REMAINING AFTER ALL ALLOCATIONS HAVE BEEN MADE ARE AVAILABLE TO PAY THE ADDITIONAL COMPENSATION TO PARTICIPATING INDIVIDUALS. ADDITIONAL COMPENSATION IS CALCULATED FOR EACH PARTICIPATING INDIVIDUAL AND THE ADDITIONAL COMPENSATION AMOUNT IS PAID APPROXIMATELY THREE MONTHS LATER. ADDITIONAL COMPENSATION PAYMENTS ARE SUBJECT TO THE COMPENSATION CAP POLICY ADOPTED BY CUMG: THE "CUMG METHOD OR STANDARD REGARDING BASIC INDIVIDUAL CAPS UNDER AMENDED INCOME DISTRIBUTION PLAN, AS OF JULY 1, 1999." THIS COMPENSATION CAP POLICY LIMITS THE AMOUNT OF COMPENSATION TO INDIVIDUAL PHYSICIANS AND HEALTH CARE PROFESSIONALS BY COMPARISON TO OBJECTIVE DATA FOR LIKE ACTIVITIES AND LIKE PHYSICIANS OR PRACTITIONERS, INCLUDING SURVEYS SUCH AS THE ASSOCIATION OF AMERICAN COLLEGE (AAMC) AND MEDICAL GROUP MANAGEMENT ASSOCIATION (MGMA) COMPENSATION SURVEYS. FOR THE MOST FREQUENTLY USED MEASURE (AAMC SURVEY), THE MAXIMUM "BASIC INDIVIDUAL CAP" GENERALLY IS 90% OF THE APPLICABLE STANDARD OR MEASURE. IF AAMC DATA IS NOT AVAILABLE OR DOES NOT PROVIDE THE MOST APPROPRIATE COMPARATIVE DATA, THE POLICY ALLOWS FOR OTHER COMPARATORS TO BE USED. IN GENERAL, THE 90TH PERCENTILE IS THE MAXIMUM BASIC INDIVIDUAL CAP IMPOSED UNDER ANY SURVEY OR DATA. IN ALL INSTANCES, COMPENSATION IS LIMITED BY A CAP ESTABLISHED USING A COMPARATIVE SURVEY OR DATA DETERMINED BY THE UWSOM AND SEATTLE CHILDREN'S HOSPITAL PRIOR TO THE PERIOD OF RECORD. BEFORE PAYMENT OF ADDITIONAL COMPENSATION FOLLOWING A PERIOD OF RECORD, CUMG REVIEWS AND, WHERE NECESSARY, LIMITS INDIVIDUAL COMPENSATION PURSUANT TO THE APPLICABLE CAP. THUS, WHILE THE AMOUNT OF ADDITIONAL COMPENSATION MAY NOT BE FIXED, THE TOTAL COMPENSATION, INCLUDING BASE SALARY AND ADDITIONAL COMPENSATION TO INCLUDE CAP, IS SUBJECT TO LIMITS ESTABLISHED BY RELEVANT COMPARATORS.