Department of the Treasury Internal Revenue Service
Public Charity Status and Public Support
Complete if the organization is a section 501(c)(3) organization or a section
4947(a)(1) nonexempt charitable trust.
Attach to Form 990 or Form 990-EZ. See separate instructions.
OMB No. 1545-0047
2011
Open to Public Inspection
Name of the organization
Via Christi Health Inc
Employer identification number
48-1172107
Part I
Reason for Public Charity Status
(All organizations must complete this part.) See instructions
The organization is not a private foundation because it is: (For lines 1 through 11, check only one box.)
1
2
3
4
5
section 170(b)(1)(A)(iv). (Complete Part II.)
6
7
8
9
receipts from activities related to its exempt functions—subject to certain exceptions, and (2) no more than 331/3% of
its support from gross investment income and unrelated business taxable income (less section 511 tax) from businesses
acquired by the organization after June 30, 1975. See section 509(a)(2). (Complete Part III.)
10
11
e
By checking this box, I certify that the organization is not controlled directly or indirectly by one or more disqualified persons other than foundation managers and other than one or more publicly supported organizations described in section 509(a)(1) or section 509(a)(2).
f
If the organization received a written determination from the IRS that it is a Type I, Type II or Type III supporting organization, check this box
..................................................
g
Since August 17, 2006, has the organization accepted any gift or contribution from any of the following persons?
(i) a person who directly or indirectly controls, either alone or together with persons described in (ii)
Yes
No
and (iii) below, the governing body of the the supported organization?
................
11g(i)
No
(ii)
a family member of a person described in (i) above?
......................
11g(ii)
No
(iii)
a 35% controlled entity of a person described in (i) or (ii) above?
................
11g(iii)
No
h
Provide the following information about the supported organization(s).
(i) Name of supported organization
(ii) EIN
(iii) Type of organization (described on lines 1- 9 above or IRC section (see instructions))
(iv) Is the organization in col. (i) listed in your governing document?
(v) Did you notify the organization in col. (i) of your support?
(vi) Is the organization in col. (i) organized in the U.S.?
(vii) Amount of support?
Yes
No
Yes
No
Yes
No
(1)
SISTERS OF THE SORROWFUL MOTHER
731215174
01
Yes
Yes
Yes
0
(2)
DAUGHTERS OF CHARITY
430887104
01
Yes
Yes
Yes
0
(3)
CONGREGATION OF THE SISTERS OF ST JOSEPH
830481134
01
Yes
Yes
Yes
0
(4)
SISTERS OF ST JOSEPH OF CARONDELET
431227406
01
Yes
Yes
Yes
0
Total
0
For Paperwork Reduction Act Notice, see the Instructions for Form 990.
Cat. No. 11285F
Schedule A (Form 990 or 990-EZ) 2011
Schedule A (Form 990 or 990-EZ) 2011
Page 2
Part II
Support Schedule for Organizations Described in IRC 170(b)(1)(A)(iv) and 170(b)(1)(A)(vi) (Complete only if you checked the box on line 5, 7, or 8 of Part I or if the
organization failed to qualify under Part III. If the organization fails to
qualify under the tests listed below, please complete Part III.)
Section A. Public Support
Calendar year(or fiscal year beginning in)
(a) 2007
(b) 2008
(c) 2009
(d) 2010
(e) 2011
(f) Total
1
Gifts, grants, contributions, and membership fees received. (Do not include any "unusual grants.") ....
2
Tax revenues levied for the organization's benefit and either paid to or expended on its behalf.......
3
The value of services or facilities furnished by a governmental unit to the organization without charge..
4
Total. Add lines 1 through 3..
5
The portion of total contributions by each person (other than a governmental unit or publicly supported organization) included
on line 1 that exceeds 2% of the amount shown on line 11, column (f)..
6
Public Support. Subtract line 5 from line 4.
Section B. Total Support
Calendar year(or fiscal year beginning in)
(a) 2007
(b) 2008
(c) 2009
(d) 2010
(e) 2011
(f) Total
7
Amounts from line 4..
8
Gross income from interest, dividends, payments received on securities loans, rents, royalties and income from similar sources..
9
Net income from unrelated business activities, whether or not the business is regularly carried on..
10
Other income. (Explain in Part IV.) Do not include gain or loss from the sale of capital assets..
11
Total support (Add lines 7 through 10).
12
Gross receipts from related activities, etc. (See instructions.)
..................
12
13
First Five Years
If the Form 990 is for the organization's first, second, third, fourth, or fifth tax year as a 501(c)(3) organization,
check this box and stop here..........................................
Section C. Computation of Public Support Percentage
14
Public Support Percentage for 2010 (line 6 column (f) divided by line 11 column (f))
.........
14
15
Public Support Percentage for 2009 Schedule A, Part II, line 14
...............
15
16a
33 1/3% support test—2011.
If the organization did not check the box on line 13, and line 14 is 33 1/3% or more, check this box
and stop here. The organization qualifies as a publicly supported organization
......................
b
33 1/3% support test—2010.
If the organization did not check the box on line 13 or 16a, and line 15 is 33 1/3% or more, check this
box and stop here. The organization qualifies as a publicly supported organization
.....................
17a
10%-facts-and-circumstances test—2011.
If the organization did not check a box on line 13, 16a, or 16b and line 14
is 10% or more, and if the organization meets the "facts and circumstances" test, check this box and stop here. Explain
in Part IV how the organization meets the "facts and circumstances" test. The organization qualifies as a publicly supported
organization
..................................................
b
10%-facts-and-circumstances test—2010.
If the organization did not check a box on line 13, 16a, 16b, or 17a and line
15 is 10% or more, and if the organization meets the "facts and circumstances" test, check this box and stop here.
Explain in Part IV how the organization meets the "facts and circumstances" test. The organization qualifies as a publicly supported organization
..............................................
18
Private Foundation
If the organization did not check a box on line 13, 16a, 16b, 17a or 17b, check this box and see
instructions
...................................................
Schedule A (Form 990 or 990-EZ) 2011
Schedule A (Form 990 or 990-EZ) 2011
Page 3
Part III
Support Schedule for Organizations Described in IRC 509(a)(2) (Complete only if you checked the box on line 9 of Part I or if the organization
failed to qualify under Part II. If the organization fails to qualify under
the tests listed below, please complete Part II.)
Section A. Public Support
Calendar year(or fiscal year beginning in)
(a) 2007
(b) 2008
(c) 2009
(d) 2010
(e) 2011
(f) Total
1
Gifts, grants, contributions, and membership fees received. (Do not include any "unusual grants.") .
2
Gross receipts from admissions, merchandise sold or services performed, or facilities furnished in any activity that is related to the organization's tax-exempt purpose......
3
Gross receipts from activities that are not an unrelated trade or business under section 513..
4
Tax revenues levied for the organization's benefit and either paid to or expended on its behalf...
5
The value of services or facilities furnished by a governmental unit to the organization without charge..
6
Total. Add lines 1 through 5.
7a
Amounts included on lines 1, 2, and 3 received from disqualified persons...
b
Amounts included on lines 2 and 3 received from other than disqualified persons that exceed the greater of $5,000 or 1% of the amount on line 13 for the year.
c
Add lines 7a and 7b..
8
Public Support (Subtract line 7c from line 6.)
Section B. Total Support
Calendar year (or fiscal year beginning in)
(a) 2007
(b) 2008
(c) 2009
(d) 2010
(e) 2011
(f) Total
9
Amounts from line 6...
10a
Gross income from interest, dividends, payments received on securities loans, rents, royalties and income from similar sources..
b
Unrelated business taxable income (less section 511 taxes) from businesses acquired after June 30, 1975.
c
Add lines 10a and 10b.
11
Net income from unrelated business activities not included in line 10b, whether or not the business is regularly carried on.
12
Other income. Do not include gain or loss from the sale of capital assets (Explain in Part IV.)
13
Total support (Add lines 9, 10c, 11 and 12.).
14
First Five Years
If the Form 990 is for the organization's first, second, third, fourth, or fifth tax year as a 501(c)(3) organization,
check this box and stop here.............................................
Section C. Computation of Public Support Percentage
15
Public Support Percentage for 2011 (line 8 column (f) divided by line 13 column (f))
.........
15
16
Public support percentage from 2010 Schedule A, Part III, line 15
...............
16
Section D. Computation of Investment Income Percentage
17
Investment income percentage for 2011 (line 10c column (f) divided by line 13 column (f))
......
17
18
Investment income percentage from 2010 Schedule A, Part III, line 17
.............
18
19a
33 1/3% support tests—2011.
If the organization did not check the box on line 14, and line 15 is more than 33 1/3% and line 17 is not more than 33 1/3%, check this box and stop here. The organization qualifies as a publicly supported organization
..........
b
33 1/3% support tests—2010.
If the organization did not check a box on line 14 or line 19a, and line 16 is more than 33 1/3% and line 18 is not more than 33 1/3%, check this box and stop here. The organization qualifies as a publicly supported organization
....
20
Private Foundation
If the organization did not check a box on line 14, 19a or 19b, check this box and see instructions
.....
Schedule A (Form 990 or 990-EZ) 2011
Schedule A (Form 990 or 990-EZ) 2011
Page 4
Part IV
Supplemental Information.
Supplemental Information. Complete this part to provide the explanation required by Part II, line 10; Part II, line 17a or 17b; or Part III, line 12. Also complete this part for any additional information. (See instructions).
Facts And Circumstances Test
Explanation
Schedule A (Form 990 or 990-EZ) 2011
Additional Data
Software ID:
Software Version:
-
TIN:
SCHEDULE O (Form 990 or 990-EZ)
Department of the Treasury Internal Revenue Service
Supplemental Information to Form 990 or 990-EZ
Complete to provide information for responses to specific questions on
Form 990 or to provide any additional information.
Attach to Form 990 or 990-EZ.
OMB No. 1545-0047
2011
Open to Public Inspection
Name of the organization
Via Christi Health Inc
Employer identification number
48-1172107
Identifier
Return Reference
Explanation
Form 990 Review
PART VI, Section B, QUESTION 11B
A COPY OF FORM 990 IS PROVIDED TO THE BOARD OF DIRECTORS VIA A SECURE EMAIL PRIOR TO FILING WITH THE IRS.
Conflict of Interest Policy
PART VI, SECTION B, QUESTION 12C
THE ORGANIZATION MONITORS AND ENFORCES THE CONFLICT OF INTEREST POLICY AS FOLLOWS: 1) AT TIME OF APPOINTMENT AND ANNUALLY THEREAFTER, ALL INTERESTED PERSONS, INCLUDING BOARD AND COMMITTEE MEMBERS, COMPLETE A DISCLOSURE STATEMENT WHICH ADDRESSES ACTUAL OR POTENTIAL CONFLICTS OF INTEREST. 2) THE DISCLOSURE STATEMENT IS DONE ELECTRONICALLY, AND THE RETURN OF THE COMPLETED STATEMENT IS A CONDITION OF CONTINUED APPOINTMENT, EMPLOYMENT, OR PARTICIPATION WITH THE ORGANIZATION. 3) ALL ACTUAL OR POTENTIAL CONFLICTS ARE REVIEWED, INVESTIGATED, AND RESOLVED BY THE CHIEF GOVERNANCE OFFICER AND THE CORPORATE RESPONSIBILITY OFFICER, WITH THE RESULTS SHARED WITH THE CHIEF EXECUTIVE OF THE ORGANIZATION. 4) PERIODIC REVIEWS ARE CONDUCTED BY GOVERNANCE, COMPLIANCE, AND INTERNAL AUDIT TO ENSURE THE ORGANIZATION IS OPERATING CONSISTENT WITH THE POLICY AND ENFORCING THE POLICY'S TERMS.
Compensation Review
PART VI, SECTION B, QUESTIONs 15a & 15b
Via Christi Health, Inc. (VCH) has established a common philosophy, strategy, and processes for executive compensation to be used throughout the health system. Through the oversight of the VCH Executive Compensation Committee, executive compensation is competitively positioned at its stated market position when compared to the compensation paid by relevant organizations (comparably-sized health systems, hospitals, and long-term care providers). VCH recognizes its responsibility to ensure that its executive compensation program is appropriate in view of its mission and tax-exempt status and that its compensation levels and expenditures are reasonable and not excessive. To ensure these ends, the VCH Executive Compensation Committee has established and approved the executive compensation philosophy for VCH and all related entities. It will also approve all changes in the compensation package for VCH executives in advance. On an annual basis, the Committee conducts a comprehensive review of total compensation for all executives. It also reviews and approves "off-cycle" compensation transactions as needed. In their review, the Committee considers the following factors: * Market data from independent compensation surveys and sources that reflect comparable positions in organizations of similar size and scope; * Difficulties in recruiting and retaining executives; * Skills, experience, and performance history of individual executives; * Critical business or strategic issues that the organization may face; and * Market position for total compensation. The adequacy, competitiveness, and cost of the VCH total executive compensation program are reviewed on an ongoing basis and changes are made as the Committee determines appropriate. The executive compensation program will be maintained such that it will fall within the safe harbor guidelines established by the Intermediate Sanctions regulations. The Committee also employs the services of an independent compensation consultant to prepare market analysis to aid and support the Committee's actions, provide documentation of market trends for budget setting purposes, review annual compensation changes to ensure "reasonableness" and provide attestation, and provide consultation on all executive compensation issues. The Committee also relies on third-party validation of performance measures used in the determination of compensation.
Governing Documents
PART VI, SECTION C, QUESTION 19
VIA CHRISTI HEALTH, INC.'S GOVERNING DOCUMENTS AND CONFLICT OF INTEREST POLICY ARE AVAILABLE TO THE PUBLIC UPON REQUEST.
Community Benefit Report
Part III
As a part of Via Christi Health, a Catholic health system, we share this Mission: "Inspired by the Gospel and our Catholic tradition, we serve as a healing presence with special concern for our neighbors who are vulnerable." Via Christi Health's history extends back over 100 years and today, along with our sponsoring congregations - The Sisters of the Sorrowful Mother, Congregation of St Joseph, Sisters of St Joseph of Carondolet and the Daughters of Charity - we continue to respond to community needs in Kansas and northeastern Oklahoma. The obligation to reach out to those in need and improve community health flows directly from our identity as a faith-based healing ministry. As a mission-driven organization, we provide community benefit because we are committed to our core values of: * Human Dignity - we recognize and respect the sacredness of each person * Stewardship - we responsibly care for all resources entrusted to us * Excellence - we extend ourselves in outstanding service Via Christi Health, Inc. (VCH) provides free or reduced health care services for those individuals who meet the financial guidelines. Discounts are based on established definitions of the Federal Poverty Guidelines, and when patients are eligible to receive government assistance they are strongly encouraged to register for this type of financial assistance. VCH provides health care services to all Medicaid recipients regardless of their ability to pay. This amount represents the cost of the amount of care that was given to Medicaid recipients by VCH providers but was not reimbursed by the government. The financial information in this report was prepared in accordance with the Catholic Health Association's community benefit reporting guidelines. These guidelines recommend the following: * Report charity care at cost, not charges; * Do not include bad debt, contractual allowances, and quick pay discounts as part of charity care expense; * Do not count Medicare shortfall as a community benefit; and * Report the net expense for community benefit services (e.g. the total community benefit expense minus any associated revenue from patients, payers, and other external sources). FOR FISCAL YEAR ENDED SEPTEMBER 30, 2012 COMMUNITY BENEFIT - CORPORATE OFFICE ONLY $375,313 COMMUNITY BENEFIT - VIA CHRISTI HEALTH, INC. Consolidated 1) CHARITY CARE - AT COST $46.8 million 2) GOVERNMENT SPONSORED HEALTH CARE - NET EXPENSE $21.7 million (Includes UNPAID COST OF PUBLIC INDIGENT CARE PROGRAMS (MEDICAID, SCHIP, OTHER SAFETY NET PROGRAMS); DOES NOT INCLUDE MEDICARE SHORTFALL) 3) COMMUNITY BENEFIT PROGRAMS - NET EXPENSE $22.0 million Includes: SUBSIDIZED HEALTH SERVICES, INCLUDING BEHAVIORAL HEALTH $15.4 million FINANCIAL AND IN-KIND DONATIONS $ 2.5 million COMMUNITY HEALTH IMPROVEMENT SERVICES $ 1.9 million COMMUNITY BENEFIT OPERATIONS $ 0.2 million Other COMMUNITY Benefit $ 0.6 million TOTAL QUANTIFIABLE COMMUNITY BENEFIT $90.5 million
Members
PART VI, Section A, QUESTIONs 6, 7a, & 7b
THE SPONSORS HAVE DELEGATED THE GOVERNANCE RESPONSIBILITIES OF VIA CHRISTI HEALTH, INC. (VCH) TO THE MARIAN HEALTH SYSTEM INC., A DELAWARE NOT-FOR- PROFIT CORPORATION AND ASCENSION HEALTH, A MISSOURI NOT-FOR-PROFIT CORPORATION (COLLECTIVELY REFERRED TO AS "MEMBERS"). THE MEMBERS HAVE THE RIGHT TO APPROVE OR TAKE ACTION UPON THE RECOMMENDATION OF THE VIA CHRISTI HEALTH, INC., BOARD ON CERTAIN ACTIONS BEFORE THEY BECOME FINAL OR BINDING ON THE CORPORATION. THE FOLLOWING POWERS ARE RESERVED TO THE MEMBERS OR THEIR DELEGATED REPRESENTATIVES: * DEFINE, APPROVE, CHANGE OR INTERPRET THE MISSION, VALUES, PURPOSE, AND PHILOSOPHY OF THE CORPORATION. * APPROVE THE ARTICLES OF INCORPORATION, THE BYLAWS, AND ANY AMENDMENTS THERETO OF THE CORPORATION. * APPOINT AND REMOVE THE MEMBERS OF THE BOARD OF DIRECTORS OF VCH. * APPOINT AND REMOVE THE PRESIDENT AND CEO OF VIA CHRISTI HEALTH, INC. (VCH). * SUBJECT TO CANONICAL REQUIREMENTS, ESTABLISHE THE OVERALL DEBT LIMIT FOR VCH AND APPROVE THE INCURRENCE OF DEBT IN EXCESS OF THAT LIMIT. * APPROVE THE DISSOLUTION, MERGER, CONSOLIDATION, OR SALE OF ALL OR SUBSTANTIALLY ALL OF THE ASSETS OF VCH. * APPROVE AND REMOVE, WITH OR WITHOUT CAUSE, THE INDEPENDENT AUDITING FIRM FOR VCH. * RECEIVE AND APPROVE OPERATING AND CAPITAL BUDGETS AND FINANCIAL REPORTS OF VCH. * APPROVE FINANCING THROUGH PARTICIPATION IN OBLIGATED GROUPS OF ASCENSION HEALTH OR MARIAN HEALTH SYSTEM. * REVIEW AND APPROVE REAL AND PERSONAL PROPERTY TRANSACTIONS CONSISTENT WITH PROVISION OF CANON LAW.
NET ASSET RECONCILIATION
PART XI, Question 5
Unrealized Gain 17,272,807 Sponsorship Fee ( 634,781) Change in OCI - Pension 2,593,341 Equity Transfer to Related (25,000,000) Beneficial Interest in Subsidiary 10,031,893 Change in Temporarily Restricted Assets ( 2,118,145) Other (includes rounding) 75,000 ------------ TOTAL 2,220,115
Schedule K Supplemental Information
Schedule K, Parts I, II, III, & V
DESCRIPTION OF PURPOSE SCHEDULE K, PART I, COLUMN F, ROWS A, B, & C ROW A - ACQUIRING, CONSTRUCTING, AND EQUIPPING NEW HEALTH CARE FACILITY; CURRENT REFUNDING OF SERIES 1992 BONDS ISSUED 2/1/1992. ROW B - CURRENT REFUNDING OF SERIES 1999 BONDS ISSUED 10/1/1999. Row C - Acquiring, constructing, and equipping certain hospital improvements; CURRENT refunding of series 2001 bonds issued 7/19/2001. ------------------------------------------------------------------- PROCEEDS OF ISSUE SCHEDULE K, PART II, LINE 3, COLUMNS A, B, & C Part II, Line 3 for Columns A, B, and C differ from the issuance price in Part I, Column E by the following: Column A: $74,962 Investment Income Columm B: $ 32 Investment Income Column C: $ 7,834 Investment Income ------------------------------------------------------------------- REFUNDING PRE-2003 ISSUES SCHEDULE K, PART III, COLUMN B VIA CHRISTI HEALTH, INC. IS FOLLOWING THE SPECIAL RULE FOR REFUNDING OF PRE-2003 ISSUES DESCRIBED IN THE SCHEDULE K INSTRUCTIONS. THE SPECIAL RULE EXEMPTS ISSUES REFUNDING PRE-2003 BONDS FROM COMPLETING PART III. ------------------------------------------------------------------- PROCEDURES TO UNDERTAKE CORRECTIVE ACTION SCHEDULE K, PART V During tax year 2011, Via Christi Health, Inc., did not have written procedures to ensure that violations of federal tax requirements are timely identified and corrected through the voluntary closing agreement program if self-remediation is not available under applicable regulations. As of 04/01/2013, Via Christi Health, Inc. became a full member of Ascension Health. As of that date, Via Christi Health, Inc. will follow the written procedures of Ascension Health for all outstanding bond issues. ------------------------------------------------------------------- REPORTING RELATED ORGANIZATIONS SCHEDULE K VIA CHRISTI HOSPITALS WICHITA, INC. (VCHW) ALONG WITH VIA CHRISTI HEALTH, INC. (VCH) AND OTHER HEALTH SYSTEM HOSPITALS (THE "OBLIGATED GROUP"), ENTERED INTO A MASTER TRUST INDENTURE AND AN OBLIGATED GROUP AGREEMENT WHEREBY THEY WERE JOINTLY AND SEVERALLY LIABLE FOR ALL AMOUNTS DUE UNDER ANY AND ALL NOTES AND GUARANTEES ISSUED PURSUANT TO THE MASTER TRUST INDENTURE. THE OBLIGATED GROUP CONSISTS OF THE VIA CHRISTI HEALTH, INC., VIA CHRISTI HOSPITALS WICHITA, INC., VIA CHRISTI REHABILITATION HOSPITAL, INC., VIA CHRISTI HOSPITAL PITTSBURG, INC., AND VIA CHRISTI HOSPITAL WICHITA ST. TERESA, INC. ALL BOND DEBT IS REPORTED ON THE BOOKS OF VIA CHRISTI HEALTH, INC. WITH INTERCOMPANY DEBT REPORTED ON THE RESPECTIVE HOSPITAL MINISTRIES.
Executive Committee
Part VI, Section A, Question 1a
The organization's bylaws provide for an executive committee. This Committee shall consist of the Chairperson, the President and two other directors. The Committee shall have the power to transact all regular business of the Board during the period between meetings of the Board, subject to any prior limitations imposed by the Board.
HOURS DEVOTED FOR RELATED ORGANIZATION
FORM 990 PART VII
NAME:David Hadley TITLE:CFO/Treasurer HOURS:1
HOURS DEVOTED FOR RELATED ORGANIZATION
FORM 990 PART VII
NAME:Gary Knight TITLE:Secretary HOURS:1
HOURS DEVOTED FOR RELATED ORGANIZATION
FORM 990 PART VII
NAME:Roberta Johnson TITLE:Assistant Secretary HOURS:1