Form 990 for tax year 2023

Revenue

Part VIII, the statement of revenue.

• 2a · Program service revenue: TRANSFORMATION SERVICE

  total $3,418,028 · related or exempt $3,418,028 · unrelated business $0 · excluded $0

• 2b · Program service revenue: EDUCATION SERVICES

  total $851,156 · related or exempt $851,156 · unrelated business $0 · excluded $0

• 7a · Gross sales of assets other than inventory

  securities $22,082

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

  securities $0

• 7c · Gain or loss

  securities $22,082

• 7d · Net gain or loss

  total $22,082 · excluded $22,082

• 11a · Other revenue: MISC REVENUE

  total $665 · related or exempt $0 · unrelated business $0 · excluded $665

• 11e · Other revenue, total

  $665

Functional expenses

Part IX, the statement of functional expenses.

• 7 · Other salaries and wages

  total $1,546,622 · program services $1,221,831 · management and general $324,791

• 9 · Other employee benefits

  total $401,622 · program services $317,281 · management and general $84,341

• 11b · Fees: legal

  total $23,000 · program services $9,430 · management and general $13,570

• 11g · Fees: other

  total $1,416,467 · program services $793,222 · management and general $623,245

• 12 · Advertising and promotion

  total $118,007 · program services $36,582 · management and general $81,425

• 13 · Office expenses

  total $39,300 · program services $29,082 · management and general $10,218

• 16 · Occupancy

  total $51,339 · program services $15,915 · management and general $35,424

• 17 · Travel

  total $265,226 · program services $204,224 · management and general $61,002

• 19 · Conferences, conventions and meetings

  total $40,235 · program services $30,981 · management and general $9,254

• 22 · Depreciation, depletion and amortization

  total $5,691 · program services $1,764 · management and general $3,927

• 24a · Other expenses: MISCELLANEOUS EXPENSES

  total $141,493 · program services $52,351 · management and general $89,142 · fundraising $0

• 24b · Other expenses: REPAIRS AND MAINTENANCE

  total $83,036 · program services $57,295 · management and general $25,741 · fundraising $0

• 24c · Other expenses: EDUCATION

  total $26,821 · program services $4,291 · management and general $22,530 · fundraising $0

• 24d · Other expenses: OTHER TAXES

  total $4,717 · program services $4,717 · management and general $0 · fundraising $0

• 24e · All other expenses

  total $278 · program services $28 · management and general $250

Balance sheet

Part X, book values.

• 1 · Cash, non-interest-bearing

  beginning of year $1,446,515 · end of year $2,733,337

• 2 · Savings and temporary cash investments

  end of year $1,823,224

• 3 · Pledges and grants receivable

  end of year $0

• 4 · Accounts receivable

  beginning of year $266,014 · end of year $1,163,716

• 5 · Loans and receivables from officers and key people

  end of year $0

• 6 · Loans and receivables from disqualified persons

  end of year $0

• 7 · Other notes and loans receivable

  end of year $0

• 8 · Inventories for sale or use

  end of year $0

• 9 · Prepaid expenses and deferred charges

  beginning of year $22,713 · end of year $0

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

  $199,420

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

  $188,364

• 10c · Land, buildings and equipment, net

  beginning of year $16,747 · end of year $11,056

• 11 · Investments: publicly traded securities

  end of year $0

• 12 · Investments: other securities

  end of year $0

• 13 · Investments: program-related

  end of year $0

• 14 · Intangible assets

  end of year $0

• 15 · Other assets

  beginning of year $12,956,861 · end of year $9,204,760

• 17 · Accounts payable and accrued expenses

  beginning of year $4,672 · end of year $3,519

• 18 · Grants payable

  end of year $0

• 19 · Deferred revenue

  beginning of year $493,386 · end of year $557,190

• 20 · Tax-exempt bond liabilities

  end of year $0

• 21 · Escrow or custodial account liability

  end of year $0

• 22 · Loans and payables to officers and key people

  end of year $0

• 23 · Secured mortgages and notes payable

  end of year $0

• 24 · Unsecured notes and loans payable

  end of year $0

• 25 · Other liabilities

  beginning of year $0 · end of year $36,515

• 27 · Net assets without donor restrictions

  beginning of year $14,210,792 · end of year $14,338,869

• 28 · Net assets with donor restrictions

  end of year $0

The filer's explanations (Part III)

PART I, LINE 3

DURING THE CALENDAR YEAR 2023, COMPENSATION FOR THE TOP MANAGEMENT OFFICIAL WAS ESTABLISHED AND PAID BY VIRGINIA MASON MEDICAL CENTER, A RELATED ORGANIZATION. VIRGINIA MASON MEDICAL CENTER USED ONE OR MORE OF THE METHODS DESCRIBED IN SCHEDULE J, PART I, LINE 3 TO ESTABLISH THE TOP MANAGEMENT OFFICIAL'S COMPENSATION: (1) COMPENSATION COMMITTEE; (2) INDEPENDENT COMPENSATION CONSULTANT; (3) COMPENSATION SURVEY OR STUDY; (4) APPROVAL BY THE BOARD OR COMPENSATION COMMITTEE.

PART I, LINE 4B

THE MEDICAL CENTER HAS A SUPPLEMENTAL EXECUTIVE RETIREMENT PLAN (SERP). THE SERP IS A 457(F) NONQUALIFIED DEFERRED COMPENSATION PLAN PURSUANT TO WHICH PLAN BENEFITS ARE SUBJECT TO A SUBSTANTIAL RISK OF FORFEITURE. THE PLAN WAS APPROVED BY THE BOARD'S COMPENSATION AND BENEFITS COMMITTEE, A COMMITTEE COMPOSED OF INDEPENDENT BOARD MEMBERS TO WHOM THE BOARD DELEGATES THE AUTHORITY TO APPROVE COMPENSATION AND BENEFITS FOR THE MEDICAL CENTER'S MOST SENIOR EXECUTIVES. THE COMMITTEE RECEIVES ADVICE FROM AN INDEPENDENT COMPENSATION CONSULTANT TO ENSURE THAT COMPENSATION AND BENEFITS, INCLUDING THE SERP, ARE MARKET COMPETITIVE AND REASONABLE. SUPPLEMENTAL EXECUTIVE RETIREMENT PLANS SUCH AS THIS ARE CUSTOMARY FOR SENIOR EXECUTIVES IN THE HEALTH CARE INDUSTRY. DURING THE 2023 CALENDAR YEAR, COMMONSPIRIT HEALTH ("COMMONSPIRIT"), AN UNRELATED ORGANIZATION, MAINTAINED A SUPPLEMENTAL NON-QUALIFIED DEFERRED COMPENSATION PLAN FOR DIVISION CEOS/PRESIDENTS AND OTHER DESIGNATED COMMONSPIRIT EXECUTIVES AT THE LEVEL OF SENIOR VICE PRESIDENT AND ABOVE. DUE TO THE "SUPER" VESTING RULES UNDER THE DEFERRED COMPENSATION PLAN, PARTICIPANTS WHO HAVE MET CERTAIN REQUIREMENTS SUCH AS INVOLUNTARY TERMINATION WITHOUT CAUSE, AGE, AGE AND YEARS OF SERVICE, OR MORE THAN 5 YEARS OF PLAN PARTICIPATION ARE ELIGIBLE TO RECEIVE THEIR 2023 CONTRIBUTIONS IN CASH. DURING 2023, THE FOLLOWING PAYMENTS WERE MADE PURSUANT TO THE SUPER VESTING RULES: KETUL PATEL, $246,662.

PART II:

VIRGINIA MASON INSTITUTE FOLLOWS COMMONSPIRIT'S EXECUTIVE COMPENSATION PHILOSOPHY. COMMONSPIRIT'S EXECUTIVE COMPENSATION PHILOSOPHY IS DESIGNED TO ASSIST COMMONSPIRIT IN ATTRACTING AND RETAINING THE CALIBER OF EXECUTIVES REQUIRED TO ENABLE COMMONSPIRIT TO FULFILL ITS MISSION OF PROVIDING HIGH QUALITY HEALTHCARE FOR ALL PERSONS REGARDLESS OF THEIR ABILITY TO PAY FOR SERVICES, IMPROVING THE QUALITY OF LIFE IN THE COMMUNITIES COMMONSPIRIT SERVES, PROMOTING PATIENT AND EMPLOYEE SATISFACTION, AND ENSURING FINANCIAL STABILITY. A SUBSTANTIAL PORTION OF EXECUTIVE COMPENSATION IS PERFORMANCE BASED AND IS LINKED TO ORGANIZATIONAL GOALS APPROVED IN ADVANCE BY THE HUMAN RESOURCES AND COMPENSATION COMMITTEE. THESE GOALS INCLUDE ATTAINMENT OF ANNUAL AND LONG-TERM FINANCIAL PERFORMANCE, CERTAIN HEALTHCARE QUALITY STANDARDS AND COMMONSPIRIT'S COMMITMENT TO SERVING THE POOR AND DISENFRANCHISED IN THE COMMUNITIES IT SERVES. TOTAL COMPENSATION, WHICH INCLUDES BASE SALARY, ANNUAL, AND LONG-TERM INCENTIVE COMPENSATION, IS ESTABLISHED TO APPROXIMATE THE PREVAILING MARKET CONDITIONS FOR EXECUTIVES OF COMPANIES OF SIMILAR SIZE, REVENUES AND COMPLEXITY. PAYMENTS PURSUANT TO A LONG-TERM FINANCIAL PERFORMANCE GOAL WERE PAID IN CALENDAR YEAR 2023. LIST OF OFFICERS WHO RECEIVED COMPENSATION FROM COMMONSPIRIT HEALTH, AN UNRELATED ORGANIZATION: KETUL PATEL - $2,645,540 LIST OF OFFICERS WHO RECEIVED COMPENSATION FROM FRANCISCAN HEALTH SYSTEM, AN UNRELATED ORGANIZATION: DAVID NOSACKA - $695,640

Related corporations and trusts

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

• VIRGINIA MASON PERFORMANCE IMPROVEMENT EUROPE LTD

  C · SUPPORT · UK · 100% owned · share of income $29,825 · share of assets $1,508,621 · controlled entity

  Directly controlled by VMI