| FORM 990, PART I, LINE 6: |
SEATTLE CHILDREN'S HOSPITAL HAS A DEDICATED GROUP OF VOLUNTEERS WHO GENEROUSLY GIVE THEIR TIME AND ENERGY TO SUPPORTING THE MISSION OF THE HOSPITAL. IN FISCAL YEAR 2020, 689 VOLUNTEERS, AFTER COMPLETING A THOROUGH INTERVIEW AND TRAINING PROCESS, LOGGED 28,451 HOURS OF SERVICE IN ONE OF THE 70 DIFFERENT DEPARTMENTS, WITH DUTIES RANGING FROM WORKING IN THE HOSPITAL GIFT SHOP, TO ENTERTAINING PATIENTS IN THE PLAYROOM, TO HELPING WITH ADMINISTRATIVE TASKS AT A RECEPTION AREA. IN ADDITION, 22 UNCOMPENSATED TRUSTEES SERVED ON THE SEATTLE CHILDREN'S HOSPITAL BOARD DURING FISCAL YEAR 2020. IN ALL THAT THEY DO, OUR VOLUNTEERS ARE HIGHLY VALUED MEMBERS OF OUR HOSPITAL COMMUNITY. |
| FORM 990, PART VI, SECTION A, LINE 2 |
JEFF SPERRING HAS A BUSINESS RELATIONSHIP WITH DEAN ALLEN, SUZANNE BEITEL, SUSAN BETCHER, JILL BRUBAKER, MICHAEL DELMAN, ROY DIAZ, COLIN FOX, JOEL FRENCH, COLLEEN FUKUI-SKETCHLEY, JUDY HOLDER, CYNTHIA HUFFMAN, DAN LEVITAN, PATRICIA LOERA, CANDY MARSHALL, SUSAN MASK, JEFF NITTA, JUDITH PIERCE, MICHAEL REEVES, NANCY SENSENEY, MICHELE SMITH, CHARLES STEVENS, MOYA VAZQUEZ, AND ALVIN WINTERROTH. SUZANNE BEITEL HAS A BUSINESS RELATIONSHIP WITH DEAN ALLEN, SUSAN BETCHER, JILL BRUBAKER, MICHAEL DELMAN, ROY DIAZ, COLIN FOX, JOEL FRENCH, COLLEEN FUKUI-SKETCHLEY, JUDY HOLDER, CYNTHIA HUFFMAN, DAN LEVITAN, PATRICIA LOERA, CANDY MARSHALL, SUSAN MASK, JEFF NITTA, JUDITH PIERCE, MICHAEL REEVES, NANCY SENSENEY, MICHELE SMITH, CHARLES STEVENS, MOYA VAZQUEZ, AND ALVIN WINTERROTH. |
| FORM 990, PART VI, SECTION A, LINE 4 |
THE BYLAWS WERE REVISED DURING THE YEAR. THE MEMBERSHIP OF THE CREDENTIALS AND MEDICAL STAFF COMMITTEE WAS REVISED TO REMOVE THE BOARD CHAIR AND TO INCLUDE THREE VOTING MEMBERS (INSTEAD OF FIVE) AND ONE TO TWO MEMBERS OF THE ADMINISTRATION APPOINTED BY THE CEO (INSTEAD OF THE CEO OR THEIR DESIGNEE, THE CHIEF NURSING OFFICER OR THEIR DESIGNEE, THE SURGEON-IN-CHIEF, AND THE PEDIATRICIAN-IN-CHIEF). OTHER MEMBERS REMAINED CONSISTENT. THE REVISED BYLAWS ADDITIONALLY STATE THAT THE AUDIT AND COMPLIANCE COMMITTEE OF SEATTLE CHILDREN'S HEALTHCARE SYSTEM SHALL HAVE FINAL DECISION-MAKING AUTHORITY WITH REGARD TO THE EVALUATION AND MANAGEMENT OF CONFLICTS AS SPECIFIED IN THE SCHS BYLAWS AND THE SCHS BOARD-APPROVED CONFLICT OF INTEREST POLICIES. |
| FORM 990, PART VI, SECTION A, LINE 6 |
THE SOLE VOTING MEMBER OF SEATTLE CHILDREN'S HOSPITAL IS SEATTLE CHILDREN'S HEALTHCARE SYSTEM. |
| FORM 990, PART VI, SECTION A, LINE 7A |
SEATTLE CHILDREN'S HEALTHCARE SYSTEM, AS THE SOLE MEMBER OF SEATTLE CHILDREN'S HOSPITAL, ELECTS THE MEMBERS OF THE BOARD OF TRUSTEES (WHICH IS THE GOVERNING BODY) OF SEATTLE CHILDREN'S HOSPITAL. |
| FORM 990, PART VI, SECTION A, LINE 7B |
SEATTLE CHILDREN'S HEALTHCARE SYSTEM, AS THE SOLE MEMBER OF SEATTLE CHILDREN'S HOSPITAL, HAS THE AUTHORITY TO MAKE, ALTER, AMEND OR REPEAL THE ARTICLES OF INCORPORATION AND BYLAWS OF SEATTLE CHILDREN'S HOSPITAL. |
| FORM 990, PART VI, SECTION B, LINE 11B |
MANAGEMENT AND INDEPENDENT TAX PROFESSIONALS PRESENT AND REVIEW THE FORM 990 WITH THE AUDIT AND COMPLIANCE COMMITTEE OF THE BOARD OF TRUSTEES OF SEATTLE CHILDREN'S HEALTHCARE SYSTEM (SCHS), A RELATED ORGANIZATION THAT IS THE DIRECT CONTROLLING ENTITY OF SEATTLE CHILDREN'S HOSPITAL. AFTER REVIEW BY THE AUDIT AND COMPLIANCE COMMITTEE AND PRIOR TO FILING THE FORM 990 WITH THE INTERNAL REVENUE SERVICE, THE ENTIRE BOARD OF TRUSTEES RECEIVES A COPY OF THE FORM 990. |
| FORM 990, PART VI, SECTION B, LINE 12C |
THE CONFLICT OF INTEREST POLICY OF SEATTLE CHILDREN'S HOSPITAL REQUIRES AN ANNUAL SURVEY OF ALL BOARD MEMBERS OF SEATTLE CHILDREN'S HOSPITAL, MEMBERS OF THE MEDICAL LEADERSHIP, ALL INDIVIDUALS ENGAGED TO PROVIDE MEDICAL DIRECTION, STAFF MEMBERS OCCUPYING ROLES WITH A DEGREE OF AUTHORITY, MEMBERS OF THE INSTITUTIONAL REVIEW BOARD AND MEMBERS OF THE HOSPITAL'S PHARMACY AND THERAPEUTICS COMMITTEE. THE SENIOR VICE PRESIDENT/CHIEF LEGAL OFFICER OF SEATTLE CHILDREN'S HEALTHCARE SYSTEM, ACTING UNDER THE OVERSIGHT AND BOARD DELEGATED AUTHORITY OF THE AUDIT AND COMPLIANCE COMMITTEE OF THE BOARD OF TRUSTEES, OVERSEES THE REVIEW OF ALL DISCLOSURES AND ESTABLISHES AND OVERSEES ANY NECESSARY MANAGEMENT PLANS RELATED TO THEM. IN GENERAL, WHEN A CONFLICT OF INTEREST EXISTS, THE INDIVIDUAL WITH THE CONFLICT MUST RECUSE THEMSELVES FROM PARTICIPATION IN ANY BOARD DISCUSSION OR OTHER DECISION MAKING REGARDING THE TRANSACTION AND REFRAIN FROM VOTING ON OR DECIDING ANY ISSUES RELATING TO THE CONFLICTING INTEREST. ANY PERSON COVERED BY THE POLICY WHO ENGAGES IN CONDUCT THAT VIOLATES THE POLICY OR PURSUES A TRANSACTION OR EVENT FOLLOWING DISAPPROVAL BY THE AUDIT AND COMPLIANCE COMMITTE OR THE APPROPRIATE OFFICER MAY, IN THE DISCRETION OF THE AUDIT AND COMPLIANCE COMMITTEE OR THE APPROPRIATE OFFICER IN ACCORDANCE WITH THEIR RESPECTIVE AUTHORITY, BE REMOVED IMMEDIATELY FROM THEIR DUTIES WITH SEATTLE CHILDREN'S HOSPITAL AND/OR TERMINATED IN THEIR EMPLOYMENT. |
| FORM 990, PART VI, SECTION B, LINE 15 |
EXECUTIVE COMPENSATION FALLS WITHIN THE PURVIEW OF THE PEOPLE, CULTURE AND EXECUTIVE COMPENSATION COMMITTEE ("PCECC") OF THE BOARD OF TRUSTEES OF SEATTLE CHILDREN'S HEALTHCARE SYSTEM (SCHS), A RELATED ORGANIZATION THAT IS THE SOLE VOTING MEMBER OF SEATTLE CHILDREN'S HOSPITAL. PURSUANT TO THE BOARD-APPROVED PCECC CHARTER, THE PCECC ENGAGES AN INDEPENDENT THIRD-PARTY CONSULTANT EXPERT IN THE COMPENSATION OF EXECUTIVES AND OTHER TOP MANAGERS OF NONPROFIT HOSPITALS AND HEALTH CARE SYSTEMS. WITH APPROPRIATE COMPARABILITY DATA PROVIDED BY ITS CONSULTANT (COMPRISING MARKET DATA REGARDING COMPENSATION PAID FOR COMPARABLE SERVICES IN COMPARABLE ORGANIZATIONS), THE PCECC ENGAGES IN AN ANNUAL REVIEW AND ASSESSMENT OF THE SEATTLE CHILDREN'S HOSPITAL EXECUTIVE COMPENSATION PROGRAM (BASE, INCENTIVE COMPENSATION, AND EMPLOYER-PAID BENEFITS) TO DETERMINE COMPETITIVENESS. BASED ON THIS EXPERT ANALYSIS AND ON RELEVANT PERFORMANCE INFORMATION FOR THE EXECUTIVES IN QUESTION AND THE ORGANIZATION AS A WHOLE, THE PCECC PRESENTS A RECOMMENDATION TO THE SCHS BOARD REGARDING THE TOTAL COMPENSATION PACKAGE FOR EACH OF THE AFFECTED EXECUTIVES, INCLUDING THE CHIEF EXECUTIVE OFFICER, CHIEF FINANCIAL OFFICER, AND KEY EMPLOYEES. THE FULL BOARD REVIEWS THE RECOMMENDATIONS AS WELL AS ALL RELEVANT COMPARABILITY DATA AND THE GOALS OF THE ORGANIZATION IN MAKING ITS FINAL DECISION. IN DOING SO IT RELIES ON THE EXPERT ANALYSIS TO DETERMINE THAT COMPENSATION IS REASONABLE AND WITHIN THE "BOUNDS OF COMPETITIVE PRACTICE". ALL DELIBERATIONS AND DECISIONS OF THE PCECC AND FULL BOARD ARE DOCUMENTED IN THE BOOKS AND RECORDS IN ACCORDANCE WITH GENERAL ADMINISTRATIVE PROVISIONS AND PROCEDURES WITHIN THE BYLAWS. THE PROCESS FOLLOWED BY THE PCECC AND THE FULL BOARD SATISFIES BEST GOVERNANCE PRACTICES AND ALSO MEETS THE REGULATORY REQUIREMENTS NECESSARY TO CREATE A REBUTTABLE PRESUMPTION OF REASONABLENESS WITH RESPECT TO THE BOARD'S DECISION. |
| FORM 990, PART VI, SECTION C, LINE 19 |
SEATTLE CHILDREN'S HOSPITAL MAKES ITS GOVERNING DOCUMENTS, CONFLICT OF INTEREST POLICY, AND FINANCIAL STATEMENTS AVAILABLE TO THE PUBLIC UPON REQUEST. |
| FORM 990, PART VI, LINE 16: |
WHILE THERE IS NO WRITTEN POLICY OR PROCEDURE FOR THE ARRANGEMENT, ANY JOINT VENTURE IS REVIEWED BY LEGAL COUNSEL WHO CONSIDERS THE IMPACTS OF THE TAX-EXEMPT STATUS OF THE ORGANIZATION. |
| FORM 990, PART IX, COLUMN (D): |
ALTHOUGH SEATTLE CHILDREN'S HOSPITAL HAS SUBSTANTIAL CONTRIBUTION REVENUE, IT DOES NOT INCUR FUNDRAISING EXPENSES. ALL FUNDRAISING ACTIVITIES AND CONTRIBUTIONS TO SEATTLE CHILDREN'S HOSPITAL ARE CONDUCTED BY RELATED ORGANIZATIONS. SEE ADDITIONAL DESCRIPTION FOR SCHEDULE M, LINE 32. |
| FORM 990, PART XI, LINE 9: |
CHANGE IN VALUATION OF INTEREST RATE SWAP AGREEMENTS -2,188,912. CHANGE IN BENEFICIAL INTEREST IN SCHS 5,070,254. |
Attach to Form 990 or 990-EZ.