| MISSION |
FORM 990, PART I, LINE 1 & PART III, LINE 1 STANFORD HEALTH CARE ("SHC") IS A NON-PROFIT CALIFORNIA PUBLIC BENEFIT CORPORATION OF WHICH THE BOARD OF TRUSTEES OF THE LELAND STANFORD JUNIOR UNIVERSITY (THE "UNIVERSITY") IS THE SOLE MEMBER. THE OBJECTIVE AND THE PURPOSE OF SHC IS TO PROVIDE PATIENT CARE SERVICES, SUPPORT, BENEFIT AND FURTHER THE CHARITABLE, AND SCIENTIFIC AND EDUCATIONAL PURPOSES OF THE UNIVERSITY AND THE UNIVERSITY'S SCHOOL OF MEDICINE. SHC OPERATES A LICENSED ACUTE CARE HOSPITAL, A CANCER CENTER IN PALO ALTO, AN AMBULATORY OUTPATIENT CENTER IN REDWOOD CITY AND NUMEROUS OUTPATIENT PHYSICIAN CLINICS IN THE SAN FRANCISCO BAY AREA, IN COMMUNITY SETTINGS AND IN ASSOCIATION WITH REGIONAL HOSPITALS. STANFORD HEALTH CARE HAS A MISSION TO CARE, TO EDUCATE, AND TO DISCOVER. THEIR VISION STATEMENT IS HEALING HUMANITY THROUGH SCIENCE AND COMPASSION, ONE PATIENT AT A TIME. STATEMENT OF PROGRAM SERVICE ACCOMPLISHMENTS FORM 990, PART III, LINE 4A STANFORD HEALTH CARE ("SHC") IS KNOWN WORLDWIDE FOR ADVANCED PATIENT CARE PROVIDED BY ITS PHYSICIANS AND STAFF, PARTICULARLY IN AREAS SUCH AS CARDIAC CARE, CANCER TREATMENT, NEUROLOGY, NEUROSURGERY, ORTHOPEDICS, SURGERY AND ORGAN TRANSPLANTS. SHC HAD 25,092 PATIENT DISCHARGES. SHC HAD 144,928 PATIENT DAYS INCLUDING ACUTE, BEHAVIORIAL HEALTH, AND SHORT STAY OUTPATIENT. TOTAL OUTPATIENT AND EMERGENCY ROOM VISITS WERE 591,842 FOR THE FISCAL YEAR ENDED AUGUST 31, 2014. SUMMARY OF SHC COMMUNITY BENEFIT ACTIVITIES: INVESTMENTS IN VULNERABLE POPULATIONS SHC'S LARGEST COMMUNITY BENEFIT INVESTMENT WAS IN IMPROVING ACCESS TO HEALTH CARE FOR VULNERABLE COMMUNITY MEMBERS. IN FY 2014, SHC CONTRIBUTED MORE THAN $164 MILLION, OVER 74 PERCENT OF ITS COMMUNITY BENEFIT EXPENDITURES, TO ACTIVITIES SUPPORTING VULNERABLE POPULATIONS (EXCLUDING UNCOMPENSATED MEDICARE). SHC'S UNCOMPENSATED EXPENSE (COST LESS REIMBURSEMENT) FOR MEDI-CAL WAS OVER $146.8 MILLION. CHARITY CARE FOR UNINSURED AND UNDERINSURED PATIENTS TOTALED NEARLY $13.5 MILLION. IN ADDITION TO THE INVESTMENTS IN CHARITY CARE AND UNCOMPENSATED MEDI-CAL, SHC'S CONTRIBUTION TO OTHER COMMUNITY BENEFIT ACTIVITIES FOR VULNERABLE POPULATIONS WAS OVER $4.1 MILLION IN FY 2014. THESE ACTIVITIES PROVIDE ESSENTIAL SERVICES FOR THOSE MOST IN NEED IN OUR COMMUNITIES. SHC SUPPORTED SIX COMMUNITY CLINICS AND A TRANSITIONAL MEDICAL UNIT IN A HOMELESS SHELTER AS PART OF ITS IMPROVE ACCESS TO CARE HEALTH INITIATIVE. COMMUNITY PARTNERS INCLUDE CARDINAL FREE CLINICS (ARBOR AND PACIFIC); RAVENSWOOD FAMILY HEALTH CENTER; MAYVIEW COMMUNITY HEALTH CENTER; SAMARITAN HOUSE REDWOOD CITY FREE CLINIC; PENINSULA HEALTHCARE CONNECTION; AND THE MEDICAL RESPITE CENTER AT HOME FIRST'S BOCCARDO REGIONAL CENTER IN SAN JOSE. THE GOAL OF THIS INITIATIVE IS TO BUILD COMMUNITY CAPACITY TO DELIVER QUALITY PRIMARY AND PREVENTIVE HEALTH CARE. BENEFITS FOR THE LARGER COMMUNITY SHC SUPPORTED A WIDE RANGE OF ACTIVITIES TO BENEFIT THE BROADER COMMUNITY IN FY 2014, CONTRIBUTING NEARLY $3.2 MILLION TO SUPPORT THESE ACTIVITIES. THESE ACTIVITIES INCLUDING THE STANFORD HEALTH LIBRARY, 36 DIFFERENT PROGRAMS TO SUPPORT COMMUNITY MEMBERS FIGHTING CANCER, VARIOUS SUPPORT GROUPS, TRAFFIC AND BICYCLE SAFETY PROGRAMS, CANCER CLINICAL TRIALS INFORMATION AND REFERRAL WEBSITE AND PHONE LINE, STANFORD LIFE FLIGHT AND MEDICAL TRANSPORT SERVICE, AND EMERGENCY PLANNING FOR THE COMMUNITY. HEALTH RESEARCH, EDUCATION AND TRAINING RESEARCH, EDUCATION, AND TRAINING ARE CORE TO SHC'S MISSION. SHC IS THE SETTING FOR TRAINING MEDICAL STUDENTS, RESIDENTS AND FELLOWS FROM THE STANFORD SCHOOL OF MEDICINE AND, AS SUCH, MAKES A SIGNIFICANT CONTRIBUTION TO TRAINING THE NEXT GENERATION OF HEALTHCARE PROVIDERS. IN FY 2014, SHC CONTRIBUTED NEARLY $53.5 MILLION TO SUPPORT HEALTH RESEARCH, EDUCATION, AND TRAINING. OF THIS AMOUNT, $46.5 MILLION WAS SPENT TO TRAIN MEDICAL RESIDENTS AND INTERNS. IN ADDITION TO TRAINING PHYSICIANS, SHC SUPPORTS THE TRAINING OF OTHER HEALTH PROFESSIONALS. IN FY 2014, SHC INVESTED NEARLY $7 MILLION ON THIS TRAINING. HOSPITAL DEPARTMENTS SUCH AS REHABILITATION SERVICES, RESPIRATORY CARE SERVICES, RADIOLOGY, NUCLEAR MEDICINE, NURSING, AND CLINICAL LABS PROVIDED PRECEPTORS AND CLINICAL ROTATIONS FOR STUDENTS FROM LOCAL COLLEGES AND UNIVERSITIES. SHC ALSO PROVIDED A TRAINING GROUND FOR PHARMACY RESIDENTS AND STUDENTS AND PSYCHOLOGY GRADUATE STUDENTS. BENEFITS FOR VULNERABLE POPULATIONS $ 164,439,437 MEDICARE (UNCOMPENSATED EXPENSE) $ 296,440,771 BENEFITS FOR THE LARGER COMMUNITY $ 3,153,304 HEALTH RESEARCH, EDUCATION AND TRAINING $ 53,457,711 TOTAL EXCLUDING UNCOMPENSATED EXPENSE OF MEDICARE $ 221,050,452 TOTAL INCLUDING UNCOMPENSATED EXPENSE OF MEDICARE $ 517,491,223 NUMBER OF EMPLOYEES FORM 990, PART V, LINE 2A IN PRIOR YEARS, THE TOTAL NUMBER REPORTED ON PART V, LINE 2A INCLUDED EMPLOYEES LEASED TO LUCILE PACKARD CHILDREN'S HOSPITAL AT STANFORD (LPCH) UNDER A LEASED EMPLOYEE ARRANGEMENT. IN 2012, THIS ARRANGEMENT WAS TERMINATED AND THESE EMPLOYEES ARE NO LONGER INCLUDED ON SHC'S PAYROLL. EXECUTIVE COMMITTEE FORM 990, PART VI, LINE 1A IF A MATTER NORMALLY REQUIRING ACTION BY THE BOARD OF DIRECTORS ARISES BETWEEN MEETINGS OF THE BOARD AND IS A MATTER WHICH, IN THE OPINION OF ANY FOUR (4) OUT OF SIX (6) OF THE CHAIR OF THE BOARD, THE VICE CHAIR, THE DEAN OF THE STANFORD UNIVERSITY SCHOOL OF MEDICINE, THE PRESIDENT OF THE CORPORATION, THE CHAIR OF THE FINANCE COMMITTEE AND THE CHAIR OF THE AUDIT COMMITTEE, REQUIRES ACTION BY THE BOARD BEFORE THE NEXT REGULAR OR SPECIAL MEETING OF THE BOARD, THEN ANY FOUR (4) OR MORE OUT OF THOSE SIX (6) DIRECTORS ACTING AS A COMMITTEE OF THE BOARD OF DIRECTORS, ARE AUTHORIZED JOINTLY TO TAKE WHATEVER ACTION IS NECESSARY TO RESOLVE THE MATTER, AND SUCH ACTION WILL CONSTITUTE AUTHORIZED ACTION OF THE BOARD TO THE SAME EXTENT AS IF IT HAS BEEN ADOPTED AT A MEETING OF THE BOARD; PROVIDED, HOWEVER, THAT AT LEAST ONE (1) OF THE FOUR (4) DIRECTORS ACTING AS A COMMITTEE OF THE BOARD PURSUANT TO THIS SECTION SHALL BE AN "OUTSIDE DIRECTOR," AS DEFINED IN BYLAWS AND PROVIDED, FURTHER, THAT THE DIRECTORS ACTING AS A COMMITTEE OF THE BOARD SHALL NOT IN ANY CASE BE AUTHORIZED BY THIS SECTION TO EXERCISE THOSE POWERS WHICH BY LAW, THE ARTICLES OF INCORPORATION, THESE BYLAWS OR SPECIFIC ACTION BY THE MEMBER, SET FORTH IN A RESOLUTION OF THE MEMBER, MAY BE EXERCISED ONLY BY THE MEMBER OR MAY NOT BE DELEGATED TO A COMMITTEE OF THE BOARD. FAMILY/BUSINESS RELATIONSHIPS FORM 990, PART VI, LINE 2 CHRISTOPHER DAWES IS AN EMPLOYEE, CHIEF EXECUTIVE OFFICER AND A DIRECTOR OF LUCILE SALTER PACKARD CHILDREN'S HOSPITAL. THE FOLLOWING INDIVIDUALS ARE DIRECTORS AT LUCILE SALTER PACKARD CHILDREN'S HOSPITAL: MARY CRANSTON MARIANN BYERWALTER AMIR DAN RUBIN THE FOLLOWING INDIVIDUALS ARE EMPLOYEES OF STANFORD UNIVERSITY: NORMAN RIZK MD JOHN MORGRIDGE ANN WEINACKER MD MARK WELTON MD LLOYD B. MINOR MD THE FOLLOWING INDIVIDUALS ARE TRUSTEES AT STANFORD UNIVERSITY: JOHN GUNN THE FOLLOWING INDIVIDUALS ARE BOARD MEMBERS AT STANFORD PET-CT LLC: AMIR DAN RUBIN JAMES HEREFORD LLOYD B. MINOR MD THE FOLLOWING INDIVIDUALS ARE BOARD MEMBERS AT SUMIT HOLDING INTERNATIONAL, LLC: AMIR DAN RUBIN DANIEL MORISSETTE CHRISTOPHER DAWES NORMAN RIZK MD THE FOLLOWING INDIVIDUALS ARE BOARD MEMBERS AT SUMIT INSURANCE COMPANY, LTD.: AMIR DAN RUBIN DANIEL MORISSETTE CHRISTOPHER DAWES LLOYD B. MINOR MD NORMAN RIZK MD ANN WEINACKER MD THE FOLLOWING INDIVIDUALS ARE CLASS A SUBSCRIBER VOTING MEMBERS AT THE PROFESSIONAL EXCHANGE ASSURANCE COMPANY: AMIR DAN RUBIN DANIEL MORISSETTE CHRISTOPHER DAWES NORMAN RIZK MD Form 990, Part VI, Line 4 The organization amended its Articles of Incorporation and bylaws to change its name from Stanford Hospital and Clinics to Stanford Health Care. This information was provided to the Internal Revenue Service prior to filing this return. |
| MEMBERS |
FORM 990, PART VI, LINE 6 STANFORD UNIVERSITY IS THE SOLE MEMBER OF STANFORD HEALTH CARE ("SHC"). ELECTION BY MEMBERS FORM 990, PART VI, LINE 7A STANFORD UNIVERSITY, AS THE SOLE MEMBER OF SHC, APPOINTS THE SHC BOARD OF DIRECTORS. FORM 990, PART VI, LINE 7B The sole member, Stanford University, may remove an elected Director at any time without cause. REVIEW OF FORM 990 FORM 990, PART VI, LINE 11B THE 990 TAX RETURN IS PREPARED BY THE FINANCE DEPARTMENT OF SHC. THE FINANCIAL DATA IS EXTRACTED FROM THE AUDITED FINANCIAL STATEMENT AND SUPPLEMENTAL INFORMATION AUDITED BY THE INDEPENDENT ACCOUNTING FIRM OF PRICEWATERHOUSECOOPERS (PWC). COMPENSATION DATA IS EXTRACTED FROM PAYROLL RECORDS. OTHER INFORMATION IS PROVIDED BY THE RELEVANT AREAS WITH EXPERTISE IN SHC. UPON COMPLETION, THE RETURN IS REVIEWED BY THE SENIOR MANAGEMENT OF SHC, THE COUNSEL OF SHC, STANFORD UNIVERSITY TAX COMPLIANCE AND EXTERNAL TAX ACCOUNTANT (PWC). THE DRAFT FORM 990 IS REVIEWED AT THE AUDIT AND COMPLIANCE COMMITTEE MEETING. THE FORM 990 IS THEN FORWARDED TO ALL BOARD MEMBERS FOR THEIR REVIEW. THE CFO OF SHC AND PWC AS PAID PREPARER SIGN THE RETURN PRIOR TO FILING WITH IRS. WHEN STANFORD HEALTH CARE RECEIVES CONTRIBUTIONS FROM DONORS WHO WISH TO REMAIN ANONYMOUS BUT OTHERWISE MEET THE SCHEDULE B THRESHOLD REPORTING REQUIREMENTS, THE BOARD REVIEW THE FORM 990 WITHOUT DISCLOSURE OF THESE DONORS' NAME IN ORDER TO PROTECT THE DONORS' ANONYMITY. CONFLICT OF INTEREST POLICY FORM 990, PART VI, LINE 12C OFFICERS, DIRECTORS AND KEY EMPLOYEES ARE REQUIRED TO COMPLETE AN INITIAL CONFLICT-OF-INTEREST DISCLOSURE STATEMENT ("DISCLOSURE STATEMENT") WITHIN 30 DAYS OF BEGINNING SERVICE AT SHC. ADDITIONALLY, AN UPDATED DISCLOSURE STATEMENT IS REQUIRED THEREAFTER ON AN ANNUAL BASIS. FURTHERMORE, OFFICERS, DIRECTORS AND KEY EMPLOYEES ARE REQUIRED TO UPDATE THEIR DISCLOSURE STATEMENT WITHIN TEN (10) BUSINESS DAYS OF A MATERIAL CHANGE IN THEIR SITUATIONS THAT MAY CREATE AN ACTUAL OR PERCEIVED CONFLICT-OF-INTEREST. A DISCLOSURE THAT APPEARS TO BE A CONFLICT WILL BE RESOLVED BY A MUTUAL AGREEABLE PLAN WITH THE VICE PRESIDENT OF HUMAN RESOURCES THAT OUTLINES THE STEPS THE OFFICER, DIRECTOR OR KEY EMPLOYEE MUST TAKE TO RECTIFY THE CONFLICT. IN MATTERS THAT ARE UNCLEAR OR QUESTIONABLE, THE OFFICE OF CHIEF COMPLIANCE OFFICER WILL BE CONSULTED FOR A RULING. IF FURTHER INQUIRY IS NECESSARY THE OFFICE OF THE GENERAL COUNSEL WILL BE CONSULTED FOR A RULING. PROCEDURES FOR DETERMINING COMPENSATION FORM 990, PART VI, LINE 15 THE PROCESS FOR DETERMINING COMPENSATION FOR SHC'S CEO AND OTHER TOP MANAGEMENT REQUIRES COMPENSATION TO BE REVIEWED AND APPROVED BY A COMPENSATION COMMITTEE OF THE BOARD, WHICH IS COMPRISED OF INDEPENDENT PERSONS. THE COMMITTEE ENGAGES AN INDEPENDENT CONSULTANT, WHO PROVIDES THE COMMITTEE WITH COMPARABLE MARKET DATA FROM THE FORMS 990 OF COMPARABLE ORGANIZATIONS SUPPLEMENTED BY PUBLISHED COMPENSATION AND BENEFITS SURVEYS TO BE CONSIDERED IN EVALUATING TOTAL COMPENSATION PACKAGES FOR EACH INDIVIDUAL EXECUTIVE. THE COMMITTEE CONDUCTS A REVIEW OF THIS COMPARABILITY DATA AND DOCUMENTS ITS DELIBERATIONS AND DISCUSSION IN MINUTES THAT ARE RETAINED WITH THE OTHER GOVERNANCE MATERIALS OF SHC. THE VALUE OF EACH PAY ELEMENT AND THE TOTAL PACKAGE ARE REVIEWED EACH SEPTEMBER PRIOR TO ANY PAY ACTIONS BEING APPROVED BY THE COMPENSATION COMMITTEE. SPECIFIC FACTS AND CIRCUMSTANCES OF EACH ROLE, INCUMBENT, THEIR PERFORMANCE, SKILLS AND RESPONSIBILITIES ARE REVIEWED AND ASSESSED INDIVIDUALLY. THE COMMITTEE RECEIVES RECOMMENDATIONS FROM THE CEO AS TO PAY ACTIONS FOR EACH INCUMBENT. THESE RECOMMENDATIONS ARE DISCUSSED AND THE RESULTS OF THE DELIBERATIONS ARE DOCUMENTED AS TO THE FINAL PAY ACTION APPROVED ALONG WITH THE RATIONALE FOR THE DECISION. THIS PROCESS OCCURS ANNUALLY AND IN CONJUNCTION WITH ANY PROGRAMMATIC CHANGE THAT COULD POTENTIALLY IMPACT THE PAY OR BENEFITS OF EXECUTIVES. AVAILABILITY OF GOVERNING DOCUMENTS FORM 990, PART VI, LINE 19 COPIES OF THE FINANCIAL STATEMENTS ARE AVAILABLE ON SHC'S WEBSITE. FURTHERMORE, THE STATEMENTS OF OPERATIONS AND BALANCE SHEET ARE PART OF THE UNIVERSITY'S ANNUAL REPORT POSTED ON THE ORGANIZATION'S PUBLIC WEBSITE. COPIES OF THE GOVERNING DOCUMENTS AND THE CONFLICT OF INTEREST POLICY ARE GENERALLY NOT AVAILABLE FOR PUBLIC INSPECTION BUT REQUESTS WILL BE EVALUATED ON A CASE-BY-CASE BASIS. BOARD OF DIRECTORS CHANGES Form 990, Part VII, Section A The following board members retired from the board of directors during FY14 as noted: Susan L Bostrom - until 12/31/2013 Mariann Byerwalter - until 12/31/2013 Bruce Cozadd - until 12/31/2013 Ted Love - until 6/25/2014 Ann Weinacher MD - until 4/30/2014 Scott Wood MD - until 12/31/2013 The following board members were appointed to the board as of during FY14 as noted: Chandler Evans - As of 1/1/2014 Margaret Raffin - As of 1/1/2014 Kathy Renschler - As of 1/1/2014 Mark Welton - As of 5/1/2014 The following board members received the title "Vice Chair" effective 1/1/2014: Ron Johnson John Gunn Board member John Levin received the title of "Chair" effective 1/1/2014. HOURS AT RELATED ORGANIZATIONS FORM 990, PART VII, COLUMN B CHRISTOPHER DAWES IS A DIRECTOR OF SHC. FOR FY14 HE WAS ALSO THE PRESIDENT AND CEO OF THE LUCILE SALTER PACKARD CHILDREN'S HOSPITAL AT STANFORD (LPCH), A RELATED ORGANIZATION. MR. DAWES RECEIVES COMPENSATION FROM LPCH FOR HIS SERVICES AT LPCH. MR DAWES RECEIVED NO COMPENSATION FOR HIS DUTIES AS A DIRECTOR OF SHC. LLOYD B. MINOR MD, JOHN MORGRIDGE, NORMAN RISK MD, ANN WEINACKER MD, AND MARK WELTON MD ARE DIRECTORS OF SHC. FOR FY14 THEY WERE EMPLOYED AT STANFORD UNIVERSITY (SU), A RELATED ORGANIZATION. THESE INDIVIDUALS RECEIVES COMPENSATION FROM SU FOR THEIR SERVICES AT SU. THEY RECEIVED NO COMPENSATION FOR DUTIES AS A DIRECTORS OF SHC. FORM 990, PART XI, LINE 9 OTHER CHANGES IN NET ASSETS OR FUND BALANCES ADDITIONAL MINIMUM PENSION LIABILITY $ 6,650,000 INTEREST RATE SWAP MTM $ (37,532,179) EQUITY TRANSFER $ (51,857,506) PET/CT INCOME BOOK/TAX DIFFERENCE $ (2,067) SEROC INCOME BOOK/TAX DIFFERENCE $ (51,477) ------------- OTHER CHANGES IN NET ASSETS OR FUND BALANCES $ (82,793,229) |
Attach to Form 990 or 990-EZ.