Return of Organization Exempt From Income Tax

Transcription

1 For 990 Departent of the Treasury Interna, Revenue Service Return of Organization Exept Fro Incoe Tax Under section 501, 527, or 4947(1) of the Internal Revenue Code (except private foundations) A For the 2016 calendar year, or tax year beginning B Check if applicable: Address change Nae change Initi alreturn Terinated Aended return Application pending C Nae of organization SUTTER Doing Business As HEALTH Do not enter Social Security nubers on this for as it ay be ade public. Inforation about For 990 and its instructions is at Nuber and street (or P.O. box if ail is not delivered to street address) 2200 RIVER PLAZA DRIVE City or town, state or province, country, and ZIP or foreign postal code SACRAMENTO, CA Nae and address of principal officer; SAME AS C ABOVE SARAH KREVANS, 2016, and ending Roo/sulte I Tax-exept status: 501(3) 501 ( ) < (insert no.) 4947(1) or 527 J Website: 20 D Eployer Identification nuber E Telephone nuber (916) OMB No Open to Public iiinspectionon G Gross receipts $ H Is this a group return for I Yes subordinates? No H Are all subordinates included? If "No," attach a list, (see instructions) H Group exeption nuber K For of organization; Corporation Trust Association Other L Year of foration: M State of legal doicile: CA Part I Suary 1 Briefly describe the organization's ission or ost significant activities: SEE SCHEDUALE Activities & Governance Revenue Expenses Net Assets or Fund Balances 2 Check this box I I if the organization discontinued its operations or disposed of ore than 25% of its net assets 3 Nuber of voting ebers of the governing body (Part Vi, line 1a)... 4 Nuber of independent voting ebers of the governing body (Part VI, line 1b), t Total nuber of individuals eployed in calendar year 2016 (Part V, line 2a) , Total nuber of volunteers (estiate if necessary) a Total unrelated business revenue fro Part VIII, colun (C), line 12., a 22,806,364. b Net unrelated business taxable incoe fro For 990-T, line b 5,366,496 8 Contributions and grants (Part VIII, line 1h),,..... COPY FOR 9 Progra service revenue (Part VIII, line 2g)...PUBLIC INSPECTION 10 Investent incoe (Part VIII, colun (AT lines and 7d)... Prior Year Current Year 4,795,481. 2,417,603 1,195,942,343. 1,256,472,123 68,684, ,674, Other revenue (Part VIII, colun (A), lines 5, 6d, 8c, 9c, 10c, and 11e)... 5,078, ,291, Total revenue - add lines 8 throuoh 11 fust equal Part VIII. colun (A), line 12)... 1,274,500,314. 1,322,855, Grants and siilar aounts paid (Part I, colun (A), lines 1-3)... 1,796,58 1,175, Benefits paid to or for ebers (Part I, colun (A), line 4) Salaries, other copensation, eployee benefits (Part I, colun (A), lines 5-10)... 16a Professional fundraising fees (Part I, colun (A), line 11e)... b Total fundraising expenses (Part I, colun (D), line 25) 0_. 17 Other expenses (Part I, colun (A), lines 11 a-11d, 11f-24e) Total expenses. Add lines (ust equal Part I, colun (A), line 25} Revenue less expenses. Subtract line 18 fro line ,640, ,829, ,611, ,637,115. 1,366,04 8,444. 1,486,642, ,548,13-163,786,83 Beginning of Current Year End of Year 20 Total assets (Part, line 16) t... 4,433,603,374. 4,975,409, Total liabilities (Part, line 26) ,449,852,079. 1,652,143, Net assets or fund balances. Subtract line 21 fro line ,983,751,295. 3,323,266,141. Part II Signature Block Under penalties of perjury, I declare that 1 have exained this return, including accopanying schedules and stateents, and to the best of y knowledge and belief, it is true, correct, and coplete. Declaration of preparer (other than officer) is based on ail inforation of which preparer has any knowledge. Sign Here k Signatrue of officer Type or print nae and title 11/2/2017 Date Print/Type preparer's nae Preparers signature _ Date Check LJ if Paid Preparer Use Only DEBRA HEISKALA Fir's nae ERNST & YOUNG U.S. LLP 10/31/17 self-eployed P Fir's EIN Fir's address 4370 lajollavillagedr., ste500 san diego, ca Phone no May the IRS discuss this return with the preparer shown above? (see instructions) For Paperwork Reduction Act Notice, see the separate instructions. For 990 (2016) 6E

2 For 990 (2016) Page 2 Part III Stateent of Progra Service Accoplishents Check if Schedule O contains a response or note to any line in this Part III 1 Briefly describe the organization's ission: SEE SCHEDULE O 2 Did the organization undertake any significant progra services during the year which were not listed on the prior For 990 or 990-EZ? Yes No If "Yes," describe these new services on Schedule O. 3 Did the organization cease conducting, or ake significant changes in how it conducts, any progra services? Yes No If "Yes," describe these changes on Schedule O. 4 Describe the organization's progra service accoplishents for each of its three largest progra services, as easured by expenses. Section 501(3) and 501(4) organizations are required to report the aount of grants and allocations to others, the total expenses, and revenue, if any, for each progra service reported. 4a (Code: ) (Expenses $ 1,430,244,411. including grants of $ 1,175,90 ) (Revenue $ 1,256,472,123. ) SEE SCHEDULE O 4b (Code: ) (Expenses $ including grants of $ ) (Revenue $ ) 4c (Code: ) (Expenses $ including grants of $ ) (Revenue $ ) 4d Other progra services (Describe in Schedule O.) (Expenses $ including grants of $ ) (Revenue $ ) 4e Total progra service expenses 1,430,244,411. 6E I For 990 (2016)

3 For 990 (2016) Page 3 Part IV a Checklist of Required Schedules Is the organization described in section 501(3) or 4947(1) (other than a private foundation)? If "Yes," coplete Schedule A Is the organization required to coplete Schedule B, Schedule of Contributors (see instructions)? Did the organization engage in direct or indirect political capaign activities on behalf of or in opposition to candidates for public office? If "Yes," coplete Schedule C, Part I Section 501(3) organizations. Did the organization engage in lobbying activities, or have a section 501(h) election in effect during the tax year? If "Yes," coplete Schedule C, Part II Is the organization a section 501(4), 501(5), or 501(6) organization that receives ebership dues, assessents, or siilar aounts as defined in Revenue Procedure 98-19? If "Yes," coplete Schedule C, Part III Did the organization aintain any donor advised funds or any siilar funds or accounts for which donors have the right to provide advice on the distribution or investent of aounts in such funds or accounts? If "Yes," coplete Schedule D, Part I Did the organization receive or hold a conservation easeent, including easeents to preserve open space, the environent, historic land areas, or historic structures? If "Yes," coplete Schedule D, Part II Did the organization aintain collections of works of art, historical treasures, or other siilar assets? If "Yes," coplete Schedule D, Part III Did the organization report an aount in Part, line 21, for escrow or custodial account liability, serve as a custodian for aounts not listed in Part ; or provide credit counseling, debt anageent, credit repair, or debt negotiation services? If "Yes," coplete Schedule D, Part IV Did the organization, directly or through a related organization, hold assets in teporarily restricted endowents, peranent endowents, or quasi-endowents? If "Yes," coplete Schedule D, Part V 11 If the organization s answer to any of the following questions is "Yes," then coplete Schedule D, Parts VI, VII, VIII, I, or as applicable. a Did the organization report an aount for land, buildings, and equipent in Part, line 10? If "Yes," b c d e f b a b coplete Schedule D, Part VI Did the organization report an aount for investents-other securities in Part, line 12 that is 5% or ore of its total assets reported in Part, line 16? If "Yes," coplete Schedule D, Part VII Did the organization report an aount for investents-progra related in Part, line 13 that is 5% or ore of its total assets reported in Part, line 16? If "Yes," coplete Schedule D, Part VIII Did the organization report an aount for other assets in Part, line 15 that is 5% or ore of its total assets reported in Part, line 16? If "Yes," coplete Schedule D, Part I Did the organization report an aount for other liabilities in Part, line 25? If "Yes," coplete Schedule D, Part Did the organization s separate or consolidated financial stateents for the tax year include a footnote that addresses the organization's liability for uncertain tax positions under FIN 48 (ASC 740)? If "Yes," coplete Schedule D, Part Did the organization obtain separate, independent audited financial stateents for the tax year? If "Yes," coplete Schedule D, Parts I and II Was the organization included in consolidated, independent audited financial stateents for the tax year? If "Yes," and if the organization answered "No" to line 12a, then copleting Schedule D, Parts I and II is optional Is the organization a school described in section 170(1)(A)(ii)? If "Yes," coplete Schedule E Did the organization aintain an office, eployees, or agents outside of the United States? Did the organization have aggregate revenues or expenses of ore than $10,000 fro grantaking, fundraising, business, investent, and progra service activities outside the United States, or aggregate foreign investents valued at $100,000 or ore? If "Yes," coplete Schedule F, Parts I and IV Did the organization report on Part I, colun (A), line 3, ore than $5,000 of grants or other assistance to or for any foreign organization? If "Yes," coplete Schedule F, Parts II and IV Did the organization report on Part I, colun (A), line 3, ore than $5,000 of aggregate grants or other assistance to or for foreign individuals? If "Yes," coplete Schedule F, Parts III and IV Did the organization report a total of ore than $15,000 of expenses for professional fundraising services on Part I, colun (A), lines 6 and 11e? If "Yes," coplete Schedule G, Part I (see instructions) Did the organization report ore than $15,000 total of fundraising event gross incoe and contributions on Part VIII, lines 1c and 8a? If "Yes," coplete Schedule G, Part II Did the organization report ore than $15,000 of gross incoe fro gaing activities on Part VIII, line 9a? If "Yes," coplete Schedule G, Part III Yes 1 2 No a 11b 11c 11d 11e 11f 12a 12b 13 14a 14b For 990 (2016) 6E

4 For 990 (2016) Page 4 Part IV 20 a b a d 25 a a b b c b a b c Checklist of Required Schedules (continued) Did the organization operate one or ore hospital facilities? If "Yes," coplete Schedule H If "Yes" to line 20a, did the organization attach a copy of its audited financial stateents to this return? Did the organization report ore than $5,000 of grants or other assistance to any doestic organization or doestic governent on Part I, colun (A), line 1? If "Yes," coplete Schedule I, Parts I and II Did the organization report ore than $5,000 of grants or other assistance to or for doestic individuals on Part I, colun (A), line 2? If "Yes," coplete Schedule I, Parts I and III Did the organization answer "Yes" to Part VII, Section A, line 3, 4, or 5 about copensation of the organization's current and forer officers, directors, trustees, key eployees, and highest copensated eployees? If "Yes," coplete Schedule J Did the organization have a tax-exept bond issue with an outstanding principal aount of ore than $100,000 as of the last day of the year, that was issued after Deceber 31, 2002? If "Yes," answer lines 24b through 24d and coplete Schedule K. If "No," go to line 25a Did the organization invest any proceeds of tax-exept bonds beyond a teporary period exception? Did the organization aintain an escrow account other than a refunding escrow at any tie during the year to defease any tax-exept bonds? Did the organization act as an "on behalf of" issuer for bonds outstanding at any tie during the year? Section 501(3), 501(4), and 501(29) organizations. Did the organization engage in an excess benefit transaction with a disqualified person during the year? If "Yes," coplete Schedule L, Part I Is the organization aware that it engaged in an excess benefit transaction with a disqualified person in a prior year, and that the transaction has not been reported on any of the organization's prior Fors 990 or 990-EZ? If "Yes," coplete Schedule L, Part I Did the organization report any aount on Part, line 5, 6, or 22 for receivables fro or payables to any current or forer officers, directors, trustees, key eployees, highest copensated eployees, or disqualified persons? If "Yes," coplete Schedule L, Part II Did the organization provide a grant or other assistance to an officer, director, trustee, key eployee, substantial contributor or eployee thereof, a grant selection coittee eber, or to a 35% controlled entity or faily eber of any of these persons? If "Yes," coplete Schedule L, Part III Was the organization a party to a business transaction with one of the following parties (see Schedule L, Part IV instructions for applicable filing thresholds, conditions, and exceptions): A current or forer officer, director, trustee, or key eployee? If "Yes," coplete Schedule L, Part IV A faily eber of a current or forer officer, director, trustee, or key eployee? If "Yes," coplete Schedule L, Part IV An entity of which a current or forer officer, director, trustee, or key eployee (or a faily eber thereof) was an officer, director, trustee, or direct or indirect owner? If "Yes," coplete Schedule L, Part IV Did the organization receive ore than $25,000 in non-cash contributions? If "Yes," coplete Schedule M Did the organization receive contributions of art, historical treasures, or other siilar assets, or qualified conservation contributions? If "Yes," coplete Schedule M Did the organization liquidate, terinate, or dissolve and cease operations? If "Yes," coplete Schedule N, Part I Did the organization sell, exchange, dispose of, or transfer ore than 25% of its net assets? If "Yes," coplete Schedule N, Part II Did the organization own 100% of an entity disregarded as separate fro the organization under Regulations sections and ? If "Yes," coplete Schedule R, Part I Was the organization related to any tax-exept or taxable entity? If "Yes," coplete Schedule R, Part II, III, or IV, and Part V, line 1 Did the organization have a controlled entity within the eaning of section 512(13)? If "Yes" to line 35a, did the organization receive any payent fro or engage in any transaction with a controlled entity within the eaning of section 512(13)? If "Yes," coplete Schedule R, Part V, line 2 Section 501(3) organizations. Did the organization ake any transfers to an exept non-charitable related organization? If "Yes," coplete Schedule R, Part V, line 2 Did the organization conduct ore than 5% of its activities through an entity that is not a related organization and that is treated as a partnership for federal incoe tax purposes? If "Yes," coplete Schedule R, Part VI Did the organization coplete Schedule O and provide explanations in Schedule O for Part VI, lines 11b and 19? Note. All For 990 filers are required to coplete Schedule O. 6E a 20b Yes a 24b 24c 24d 25a 25b a 28b 28c a 35b No 38 For 990 (2016)

5 For 990 (2016) Page 5 Stateents Regarding Other IRS Filings and Tax Copliance Check if Schedule O contains a response or note to any line in this Part V Yes 1a Enter the nuber reported in Box 3 of For Enter -0- if not applicable 1a 1,341 b Enter the nuber of Fors W-2G included in line 1a. Enter -0- if not applicable 1b c Did the organization coply with backup withholding rules for reportable payents to vendors and reportable gaing (gabling) winnings to prize winners? 1c 2a Enter the nuber of eployees reported on For W-3, Transittal of Wage and Tax Stateents, filed for the calendar year ending with or within the year covered by this return 2a 8,347 b If at least one is reported on line 2a, did the organization file all required federal eployent tax returns? 2b Note. If the su of lines 1a and 2a is greater than 250, you ay be required to e-file (see instructions) 3a Did the organization have unrelated business gross incoe of $1,000 or ore during the year? 3a b If "Yes," has it filed a For 990-T for this year? If "No" to line 3b, provide an explanation in Schedule O 3b Part V 4a At any tie during the calendar year, did the organization have an interest in, or a signature or other authority over, a financial account in a foreign country (such as a bank account, securities account, or other financial b If Yes, enter the nae of the foreign country: I See instructions for filing requireents for FinCEN For 114, Report of Foreign Bank and Financial Accounts (FBAR). account)? 5a Was the organization a party to a prohibited tax shelter transaction at any tie during the tax year? b Did any taxable party notify the organization that it was or is a party to a prohibited tax shelter transaction? c If "Yes" to line 5a or 5b, did the organization file For 8886-T? 6a Does the organization have annual gross receipts that are norally greater than $100,000, and did the organization solicit any contributions that were not tax deductible as charitable contributions? b If "Yes," did the organization include with every solicitation an express stateent that such contributions or gifts were not tax deductible? 7 Organizations that ay receive deductible contributions under section 17 a Did the organization receive a payent in excess of $75 ade partly as a contribution and partly for goods and services provided to the payor? 7a b If "Yes," did the organization notify the donor of the value of the goods or services provided? 7b c Did the organization sell, exchange, or otherwise dispose of tangible personal property for which it was required to file For 8282? 7c d If "Yes," indicate the nuber of Fors 8282 filed during the year 7d e Did the organization receive any funds, directly or indirectly, to pay preius on a personal benefit contract? 7e f Did the organization, during the year, pay preius, directly or indirectly, on a personal benefit contract? 7f g If the organization received a contribution of qualified intellectual property, did the organization file For 8899 as required? 7g h If the organization received a contribution of cars, boats, airplanes, or other vehicles, did the organization file a For 1098-C? 7h 8 Sponsoring organizations aintaining donor advised funds. Did a donor advised fund aintained by the sponsoring organization have excess business holdings at any tie during the year? 8 9 Sponsoring organizations aintaining donor advised funds. a Did the sponsoring organization ake any taxable distributions under section 4966? 9a b Did the sponsoring organization ake a distribution to a donor, donor advisor, or related person? 9b 10 Section 501(7) organizations. Enter: a Initiation fees and capital contributions included on Part VIII, line 12 10a b Gross receipts, included on For 990, Part VIII, line 12, for public use of club facilities 10b 11 Section 501(12) organizations. Enter: a Gross incoe fro ebers or shareholders 11a b Gross incoe fro other sources (Do not net aounts due or paid to other sources against aounts due or received fro the.) 11b 12 a Section 4947(1) non-exept charitable trusts. Is the organization filing For 990 in lieu of For 1041? 12a b If "Yes," enter the aount of tax-exept interest received or accrued during the year 13 Section 501(29) qualified nonprofit health insurance issuers. a Is the organization licensed to issue qualified health plans in ore than one state? Note. See the instructions for additional inforation the organization ust report on Schedule O. b Enter the aount of reserves the organization is required to aintain by the states in which the organization is licensed to issue qualified health plans 13b c Enter the aount of reserves on hand 13c 14 a Did the organization receive any payents for indoor tanning services during the tax year? b If "Yes," has it filed a For 720 to report these payents? If "No," provide an explanation in Schedule O 6E b 4a 5a 5b 5c 6a 6b 13a 14a 14b No For 990 (2016)

6 For 990 (2016) SUTTER HEALTH Page 6 Part VI Governance, Manageent, and Disclosure For each "Yes" response to lines 2 through 7b below, and for a "No" response to line 8a, 8b, or 10b below, describe the circustances, processes, or changes in Schedule O. See instructions. Check if Schedule O contains a response or note to any line in this Part VI Section A. Governing Body and Manageent 1 a b a b Enter the nuber of voting ebers of the governing body at the end of the tax year If there are aterial differences in voting rights aong ebers of the governing body, or if the governing body delegated broad authority to an executive coittee or siilar coittee, explain in Schedule O. 1b 13 Did any officer, director, trustee, or key eployee have a faily relationship or a business relationship with Enter the nuber of voting ebers included in line 1a, above, who are independent any other officer, director, trustee, or key eployee? supervision of officers, directors, or trustees, or key eployees to a anageent copany or other person? Did the organization ake any significant changes to its governing docuents since the prior For 990 was filed? Did the organization becoe aware during the year of a significant diversion of the organization's assets? Did the organization have ebers or stockholders? one or ore ebers of the governing body? stockholders, or persons other than the governing body? Did the organization delegate control over anageent duties custoarily perfored by or under the direct Did the organization have ebers, stockholders, or other persons who had the power to elect or appoint Are any governance decisions of the organization reserved to (or subject to approval by) ebers, 8 Did the organization conteporaneously docuent the eetings held or written actions undertaken during the year by the following: a The governing body? b Each coittee with authority to act on behalf of the governing body? 9 Is there any officer, director, trustee, or key eployee listed in Part VII, Section A, who cannot be reached at the organization's ailing address? If "Yes," provide the naes and addresses in Schedule O 9 Section B. Policies (This Section B requests inforation about policies not required by the Internal Revenue Code.) Yes 10 a b c a b 16 a b Did the organization have local chapters, branches, or affiliates? If "Yes," did the organization have written policies and procedures governing the activities of such chapters, affiliates, and branches to ensure their operations are consistent with the organization's exept purposes? Has the organization provided a coplete copy of this For 990 to all ebers of its governing body before filing the for? 11 a b Describe in Schedule O the process, if any, used by the organization to review this For a Did the organization have a written conflict of interest policy? If "No," go to line 13 b Were officers, directors, or trustees, and key eployees required to disclose annually interests that could give rise to conflicts? describe in Schedule O how this was done Did the organization have a written whistleblower policy? Did the organization have a written docuent retention and destruction policy? Did the organization regularly and consistently onitor and enforce copliance with the policy? If "Yes," Did the process for deterining copensation of the following persons include a review and approval by independent persons, coparability data, and conteporaneous substantiation of the deliberation and decision? The organization's CEO, Executive Director, or top anageent official Other officers or key eployees of the organization If "Yes" to line 15a or 15b, describe the process in Schedule O (see instructions). Did the organization invest in, contribute assets to, or participate in a joint venture or siilar arrangeent with a taxable entity during the year? organization's exept status with respect to such arrangeents? I If "Yes," did the organization follow a written policy or procedure requiring the organization to evaluate its participation in joint venture arrangeents under applicable federal tax law, and take steps to safeguard the 16b Section C. Disclosure 17 List the states with which a copy of this For 990 is required to be filed CA, 18 Section 6104 requires an organization to ake its Fors 1023 (or 1024 if applicable), 990, and 990-T (Section 501(3)s only) available for public inspection. Indicate how you ade these available. Check all that apply. Own website Another's website Upon request Other (explain in Schedule O) 19 Describe in Schedule O whether (and if so, how) the organization ade its governing docuents, conflict of interest policy, and 20 financial stateents available to the public during the tax year. State the nae, address, and telephone nuber of the person who possesses the organization's books and records: I CHRIS BOUDREAU 9100 FOOTHILL BLVD ROSEVILLE, CA For 990 (2016) 6E a a 7b 8a 8b 10a 10b 11a 12a 12b 12c a 15b 16a Yes No No

7 For 990 (2016) SUTTER HEALTH Page 7 Part VII Copensation of Officers, Directors, Trustees, Key Eployees, Highest Copensated Eployees, and Independent Contractors Check if Schedule O contains a response or note to any line in this Part VII Section A. Officers, Directors, Trustees, Key Eployees, and Highest Copensated Eployees 1a Coplete this table for all persons required to be listed. Report copensation for the calendar year ending with or within the organization's tax year. % List all of the organization's current officers, directors, trustees (whether individuals or organizations), regardless of aount of copensation. Enter -0- in coluns (D), (E), and (F) if no copensation was paid. List all of the organization's current key eployees, if any. See instructions for definition of "key eployee." % List the organization's five current highest copensated eployees (other than an officer, director, trustee, or key eployee) who received reportable copensation (Box 5 of For W-2 and/or Box 7 of For 1099-MISC) of ore than $100,000 fro the organization % and any related organizations. List all of the organization's forer officers, key eployees, and highest copensated eployees who received ore than $100,000 of reportable copensation fro the organization and any related organizations. % List all of the organization's forer directors or trustees that received, in the capacity as a forer director or trustee of the organization, ore than $10,000 of reportable copensation fro the organization and any related organizations. List persons in the following order: individual trustees or directors; institutional trustees; officers; key eployees; highest copensated eployees; and forer such persons. Check this box if neither the organization nor any related organization copensated any current officer, director, or trustee. (A) Nae and Title (B) Average hours per week (list any hours for related organizations below dotted line) (C) Position (do not check ore than one box, unless person is both an officer and a director/trustee) Individual trustee or director Institutional trustee Officer Key eployee Highest copensated eployee Forer (D) Reportable copensation fro the organization (W-2/1099-MISC) (E) Reportable copensation fro related organizations (W-2/1099-MISC) (F) Estiated aount of other copensation fro the organization and related organizations (1)LISA GEVELBER BOARD MEMBER (2)PETER JACOBI BOARD MEMBER (3)RICHARD LEVY, PHD BOARD MEMBER (4)SHARON MCCOLLAM BOARD MEMBER (5)DAVID NASAW BOARD MEMBER (6)ROBERT PEABODY JR, MD BOARD MEMBER (7)MICHAEL ROOSEVELT BOARD MEMBER (8)CHERYL SCOTT BOARD MEMBER (9)JOAN SMITH-MACLEAN, MD BOARD MEMBER (10)BARRY WILLIAMS BOARD MEMBER (11)PATRICK FRY PRESIDENT & CEO, SH (PT-YR) (12)MICHAEL GAULKE BOARD MEMBER (CHAIR FIN PLAN) (13)JOHN KOSTER, MD BOARD MEMBER (SECRETARY) (14)SARAH KREVANS PRESIDENT & CEO, SUTTER HEALTH 6E , , , , , , , , , ,161,45 9, , , , ,365,948. 1,511,15 For 990 (2016)

8 For 990 (2016) Page 8 Part VII Section A. Officers, Directors, Trustees, Key Eployees, and Highest Copensated Eployees (continued) (A) Nae and title (B) Average hours per week (list any hours for related organizations below dotted ( 15) TODD SMITH, MD BOARD MEMBER (CHAIR) 6.00 ( 16) FLORENCE DI BENEDETTO 400 SVP & GENERAL COUNSEL/ASST SEC 1.00 ( 17) ED ERWIN 400 DIR REAL ESTATE SVCS/ASST SEC ( 18) JEFF SPRAGUE 400 SVP & CFO 4.00 ( 19) PETER ANDERSON 400 CHIEF STRATEGY OFFICER ( 20) ED BERDICK 400 SVP SHARED SVS/CEO SPS (PT-YR) ( 21) JEFF BURNICH, MD 400 SVP SH MEDICAL NETWORK ( 22) JAMES CONFORTI PRESIDENT, SH VALLEY AREA 400 ( 23) JEFF GERARD PRESIDENT, SH BAY AREA 400 ( 24) DAVE MAGGENTI 400 CEO/CFO SPS (PT-YR) ( 25) JONATHAN MANIS 400 SVP & CIO SUTTER HEALTH line) (C) Position (do not check ore than one box, unless person is both an officer and a director/trustee) Individual trustee or director 1b Sub-total c Total fro continuation sheets to Part VII, Section A d Total (add lines 1b and 1c) I Institutional trustee Officer Key eployee Highest copensated eployee Forer I (D) Reportable copensation fro the organization (W-2/1099-MISC) 27,50 1,085, ,109. 1,149,499. 1,036,895. 1,462,735. 1,026,402. 1,164,596. 1,336, ,925. 1,036, ,829, ,880, ,710,034. (E) Reportable copensation fro related organizations (W-2/1099-MISC) 9, ,95 262, Total nuber of individuals (including but not liited to those listed above) who received ore than $100,000 of reportable copensation fro the organization Did the organization list any forer officer, director, or trustee, key eployee, or highest copensated eployee on line 1a? If "Yes," coplete Schedule J for such individual For any individual listed on line 1a, is the su of reportable copensation and other copensation fro the organization and related organizations greater than $150,000? If Yes, coplete Schedule J for such individual (F) Estiated aount of other copensation fro the organization and related organizations 370, , , , , , , , , ,076. 1,790,327. 4,762,117. 6,552, Did any person listed on line 1a receive or accrue copensation fro any unrelated organization or individual for services rendered to the organization? If Yes, coplete Schedule J for such person 5 Section B. Independent Contractors 1 Coplete this table for your five highest copensated independent contractors that received ore than $100,000 of copensation fro the organization. Report copensation for the calendar year ending with or within the organization's tax year. 3 4 Yes No ATTACHMENT 1 (A) Nae and business address (B) Description of services (C) Copensation 2 Total nuber of independent contractors (including but not liited to those listed above) who received ore than $100,000 in copensation fro the organization I 383 6E For 990 (2016)

9 For 990 (2016) Page 8 Part VII Section A. Officers, Directors, Trustees, Key Eployees, and Highest Copensated Eployees (continued) (A) (B) (C) (D) (E) Nae and title Average hours per week (list any hours for related organizations below dotted line) Position (do not check ore than one box, unless person is both an officer and a director/trustee) Individual trustee or director 1b Sub-total c Total fro continuation sheets to Part VII, Section A d Total (add lines 1b and 1c) I Institutional trustee Officer Key eployee Highest copensated eployee Forer I Reportable copensation fro the organization (W-2/1099-MISC) Reportable copensation fro related organizations (W-2/1099-MISC) ( 26) JILL RAGSDALE 400 SVP/CHIEF PEOPLE & CULTURE OFF 761,371. ( 27) CHARLES WIRTH 400 CEO, SPS (PT-YR) 388,341. ( 28) DON L. WREDEN 400 SVP PATIENT EPERIENCE 1,041,338. ( 29) DAVID BRADLEY REGIONAL PRESIDENT, EAST BAY 400 1,652,412. ( 30) WARREN BROWNER CEO, CPMC 400 1,991,764. ( 31) MIKE COHILL CEO, SMCS 400 1,462,782. ( 32) GRANT DAVIES CEO, VALLEY AREA HOSPITALS ,49 ( 33) FRANCIS MARZONI DIVISION PRESIDENT, PAMF 400 1,175,511. ( 34) ROBERT REED FORMER SVP & CFO SH 211,788. ( 35) DAVID BENN REG PRES, CTL VALLEY 400 2,073,834. ( 36) MIKE HELM FORMER SVP HUMAN RESOURCES 706, , Total nuber of individuals (including but not liited to those listed above) who received ore than $100,000 of reportable copensation fro the organization Did the organization list any forer officer, director, or trustee, key eployee, or highest copensated eployee on line 1a? If "Yes," coplete Schedule J for such individual For any individual listed on line 1a, is the su of reportable copensation and other copensation fro the organization and related organizations greater than $150,000? If Yes, coplete Schedule J for such individual (F) Estiated aount of other copensation fro the organization and related organizations 236, , , , , , ,78 57, , Did any person listed on line 1a receive or accrue copensation fro any unrelated organization or individual for services rendered to the organization? If Yes, coplete Schedule J for such person 5 Section B. Independent Contractors 1 Coplete this table for your five highest copensated independent contractors that received ore than $100,000 of copensation fro the organization. Report copensation for the calendar year ending with or within the organization's tax year. 3 4 Yes 485. No (A) Nae and business address (B) Description of services (C) Copensation 2 Total nuber of independent contractors (including but not liited to those listed above) who received ore than $100,000 in copensation fro the organization I 6E For 990 (2016)

10 For 990 (2016) Page 8 Part VII Section A. Officers, Directors, Trustees, Key Eployees, and Highest Copensated Eployees (continued) (A) Nae and title ( 37) GORDON HUNT, MD FORMER SVP & CMO SH ( 38) RICHARD SLAVIN, MD CEO BAY AREA MED FNDS ( 39) JEFFREY SZCZESNY VP, HR, VALLEY AREA (B) Average hours per week (list any hours for related organizations below dotted line) (C) Position (do not check ore than one box, unless person is both an officer and a director/trustee) Individual trustee or director Institutional trustee Officer Key eployee Highest copensated eployee Forer (D) Reportable copensation fro the organization (W-2/1099-MISC) 855,026. 1,333,083. (E) Reportable copensation fro related organizations (W-2/1099-MISC) (F) Estiated aount of other copensation fro the organization and related organizations 47, , ,693. 1b Sub-total c Total fro continuation sheets to Part VII, Section A d Total (add lines 1b and 1c) I 2 Total nuber of individuals (including but not liited to those listed above) who received ore than $100,000 of reportable copensation fro the organization Did the organization list any forer officer, director, or trustee, key eployee, or highest copensated eployee on line 1a? If "Yes," coplete Schedule J for such individual 4 For any individual listed on line 1a, is the su of reportable copensation and other copensation fro the organization and related organizations greater than $150,000? If Yes, coplete Schedule J for such individual 5 Did any person listed on line 1a receive or accrue copensation fro any unrelated organization or individual for services rendered to the organization? If Yes, coplete Schedule J for such person 5 Section B. Independent Contractors 1 Coplete this table for your five highest copensated independent contractors that received ore than $100,000 of copensation fro the organization. Report copensation for the calendar year ending with or within the organization's tax year. I 3 4 Yes No (A) Nae and business address (B) Description of services (C) Copensation 2 Total nuber of independent contractors (including but not liited to those listed above) who received ore than $100,000 in copensation fro the organization I 6E For 990 (2016)

11 For 990 (2016) SUTTER HEALTH Page 9 Part VIII Stateent of Revenue Contributions, Gifts, Grants and Other Siilar Aounts Progra Service Revenue Other Revenue 1a b c d 2a b c d e f g Check if Schedule O contains a response or note to any line in this Part VIII Federated capaigns 1a Mebership dues 1b Fundraising events 1c Related organizations 1d e Governent grants (contributions) 1e f All other contributions, gifts, grants, and siilar aounts not included above 1f g Noncash contributions included in lines 1a-1f: $ h Total. Add lines 1a-1f I 6a b c b Business Code All other progra service revenue Total. Add lines 2a-2f I and other siilar aounts) I Incoe fro investent of tax-exept bond proceeds Royalties II (i) Real (ii) Personal Gross rents 1,597,027. Less: rental expenses 2,058,113. Rental incoe or (loss) -461,086. d Net rental incoe or (loss) I 3 Investent incoe (including dividends, interest, 4 5 7a Gross aount fro sales of (i) Securities (ii) Other assets other than inventory 17,410,085,80 43,403. Less: cost or other basis and sales expenses 17,447,533,507. Gain or (loss) -37,447, ,403. c d Net gain or (loss) 8a of contributions reported on line 1c). See Part IV, line 18 a b Less: direct expenses b c Net incoe or (loss) fro fundraising events I Gross incoe fro gaing activities. See Part IV, line 19 a b Less: direct expenses b c Net incoe or (loss) fro gaing activities I Gross sales of inventory, less returns and allowances a b Less: cost of goods sold b c Net incoe or (loss) fro sales of inventory I 9a 10a Gross incoe fro fundraising events (not including $ Miscellaneous Revenue 1,914, ,725. I Business Code (A) Total revenue 2,417,603. (B) Related or exept function revenue MANAGEMENT SERVICES EEMPT AFFIL ,237,600,847. 1,237,600,847. HEALTHCARE RELATED JV INCOME ,254,633. 7,254,633. GUARANTEED PAYMENTS JV INCOME ,456, ,456,334. AFFILIATE RENTAL INCOME ,160,309. 1,160,309. 1,256,472,123. (C) Unrelated business revenue (D) Revenue excluded fro tax under sections ,127,914. 1,923, ,204, , , , , , ,453, ,453, a b SUTTER PHYSICIAN SERVICES SURGERY CENTER MANAGEMENT ,261,468. 4,425,429. 9,261,468. 4,425,429. c SHARED LAB URINE TOICOLOGY ,448,658. 3,448,658. d All other revenue ,531,09 4,020,996. 2,510,094. e Total. Add lines 11a-11d 23,666, Total revenue. See instructions. I 1,322,855,228. 1,256,472, ,806, ,159,138. For 990 (2016) 6E

12 For 990 (2016) SUTTER HEALTH Page 10 Part I Stateent of Functional Expenses Section 501(3) and 501(4) organizations ust coplete all coluns. All other organizations ust coplete colun (A). Check if Schedule O contains a response or note to any line in this Part I Do not include aounts reported on lines 6b, 7b, 8b, 9b, and 10b of Part VIII. 1 Grants and other assistance to doestic organizations and doestic governents. See Part IV, line 21 individuals. See Part IV, line 22 2 Grants and other assistance to doestic 3 Grants and other assistance to foreign organizations, foreign governents, and foreign individuals. See Part IV, lines 15 and 16 4 Benefits paid to or for ebers 5 Copensation of current officers, directors, trustees, and key eployees 6 Copensation not included above, to disqualified persons (as defined under section 4958(f)(1)) and persons described in section 4958(3)(B) 7 Other salaries and wages 9 Other eployee benefits Payroll taxes Fees for services (non-eployees): a Manageent b Legal c Accounting d Lobbying e Professional fundraising services. See Part IV, line 17 f Investent anageent fees g Other. (If line 11g aount exceeds 10% of line 25, colun (A) aount, list line 11g expenses on Schedule O.) Advertising and prootion Office expenses Inforation technology Royalties Occupancy Travel Pension plan accruals and contributions (include section 401(k) and 403 eployer contributions) Payents of travel or entertainent expenses for any federal, state, or local public officials Conferences, conventions, and eetings Interest Payents to affiliates Depreciation, depletion, and aortization Insurance Other expenses. Iteize expenses not covered above (List iscellaneous expenses in line 24e. If line 24e aount exceeds 10% of line 25, colun (A) aount, list line 24e expenses on Schedule O.) FEDERAL TAES a b PURCHASED SERVICES c REPAIRS & MAINTENANCE d OTHER BAD DEBT e All other expenses 25 Total functional expenses. Add lines 1 through 24e 26 Joint costs. Coplete this line only if the organization reported in colun (B) joint costs fro a cobined educational capaign and fundraising solicitation. Check here I if (A) Total expenses (B) Progra service expenses 1,175,90 1,175,90 following SOP 98-2 (ASC ) (C) Manageent and general expenses 33,587, ,354, ,233,461. 5,936,642. 5,936, ,521, ,521, ,131, ,800,892. 1,330, ,989, ,280,065. 8,709, ,661, ,463,06 198, ,746,56 42,892,491. 2,854, ,240, ,240,315. 2,931,181. 2,931, ,00 295,00 12,964, ,964,375. 2,694,815. 2,472, ,779. 8,440,679. 8,435,141. 5, ,754, ,274, , ,702, ,488, ,90 27,320, ,320,952. 7,223,993. 6,927, ,211. 4,646, ,946. 3,724,772. 4,744,83 4,744,83 135,801, ,801,855. 5,146,644. 4,571, ,36 948, , , ,322, ,194,256. 3,128, ,851, ,798, ,23 15,738, ,738, ,119, ,645,66 5,474,247. 1,486,642,058. 1,430,244, ,397,647. (D) Fundraising expenses For 990 (2016) 6E

13 For 990 (2016) Part Assets Liabilities Net Assets or Fund Balances SUTTER HEALTH Balance Sheet Check if Schedule O contains a response or note to any line in this Part Cash - non-interest-bearing Savings and teporary cash investents Pledges and grants receivable, net Accounts receivable, net Loans and other receivables fro current and forer officers, directors, trustees, key eployees, and highest copensated eployees. Coplete Part II of Schedule L Loans and other receivables fro other disqualified persons (as defined under section 4958(f)(1)), persons described in section 4958(3)(B), and contributing eployers and sponsoring organizations of section 501(9) voluntary eployees' beneficiary organizations (see instructions). Coplete Part II of Schedule L Notes and loans receivable, net Inventories for sale or use Prepaid expenses and deferred charges a Land, buildings, and equipent: cost or other basis. Coplete Part VI of Schedule D 10a b Less: accuulated depreciation 10b Investents - publicly traded securities Investents - other securities. See Part IV, line 11 Investents - progra-related. See Part IV, line 11 Intangible assets Other assets. See Part IV, line 11 Total assets. Add lines 1 through 15 (ust equal line 34) Accounts payable and accrued expenses Grants payable Deferred revenue Tax-exept bond liabilities Escrow or custodial account liability. Coplete Part IV of Schedule D Loans and other payables to current and forer officers, directors, trustees, key eployees, highest copensated eployees, and disqualified persons. Coplete Part II of Schedule L Secured ortgages and notes payable to unrelated third parties Unsecured notes and loans payable to unrelated third parties Other liabilities (including federal incoe tax, payables to related third parties, and other liabilities not included on lines 17-24). Coplete Part of Schedule D Total liabilities. Add lines 17 through 25 Organizations that follow SFAS 117 (ASC 958), check here I and coplete lines 27 through 29, and lines 33 and 34. Unrestricted net assets Teporarily restricted net assets Peranently restricted net assets Organizations that do not follow SFAS 117 (ASC 958), check here I and coplete lines 30 through 34. Capital stock or trust principal, or current funds Paid-in or capital surplus, or land, building, or equipent fund Retained earnings, endowent, accuulated incoe, or other funds Total net assets or fund balances Total liabilities and net assets/fund balances (A) Beginning of year (B) End of year Page ,396,78 2 5,706, ,571, ,886, ,948, ,960, ,972, ,974, c 3,037,104, ,729, ,238,448. 3,677,948, ,379, ,878, ,290,29 4,433,603, ,975,409, ,242, ,361, ,015,609, ,086,782,462. 1,449,852, ,652,143,673. 2,983,365, ,322,309, , , ,983,751, ,323,266,141. 4,433,603, ,975,409,814. For 990 (2016) 6E

14 For 990 (2016) Page 12 Part I Part II 1 2a b c 3 a b Reconciliation of Net Assets Check if Schedule O contains a response or note to any line in this Part I Total revenue (ust equal Part VIII, colun (A), line 12) Total expenses (ust equal Part I, colun (A), line 25) Revenue less expenses. Subtract line 2 fro line 1 Net assets or fund balances at beginning of year (ust equal Part, line 33, colun (A)) Net unrealized gains (losses) on investents Donated services and use of facilities Investent expenses Prior period adjustents Other changes in net assets or fund balances (explain in Schedule O) Net assets or fund balances at end of year. Cobine lines 3 through 9 (ust equal Part, line 33, colun (B)) 10 Financial Stateents and Reporting Check if Schedule O contains a response or note to any line in this Part II Accounting ethod used to prepare the For 990: Cash Accrual Other If the organization changed its ethod of accounting fro a prior year or checked "Other," explain in Schedule O. Were the organization's financial stateents copiled or reviewed by an independent accountant? If "Yes," check a box below to indicate whether the financial stateents for the year were copiled or reviewed on a separate basis, consolidated basis, or both: Separate basis Consolidated basis Both consolidated and separate basis Were the organization's financial stateents audited by an independent accountant? If "Yes," check a box below to indicate whether the financial stateents for the year were audited on a separate basis, consolidated basis, or both: Separate basis Consolidated basis Both consolidated and separate basis If "Yes" to line 2a or 2b, does the organization have a coittee that assues responsibility for oversight of the audit, review, or copilation of its financial stateents and selection of an independent accountant? If the organization changed either its oversight process or selection process during the tax year, explain in Schedule O. As a result of a federal award, was the organization required to undergo an audit or audits as set forth in the Single Audit Act and OMB Circular A-133? If "Yes," did the organization undergo the required audit or audits? If the organization did not undergo the required audit or audits, explain why in Schedule O and describe any steps taken to undergo such audits. 1 1,322,855, ,486,642, ,786,83 4 2,983,751, ,360, ,941,396. 3,323,266,141. 2a 2b 2c 3a 3b Yes No For 990 (2016) 6E

15 SCHEDULE A (For 990 or 990-EZ) Departent of the Treasury Internal Revenue Service Nae of the organization Public Charity Status and Public Support Coplete if the organization is a section 501(3) organization or a section 4947(1) nonexept charitable trust. I Attach to For 990 or For 990-EZ. Inforation about Schedule A (For 990 or 990-EZ) and its instructions is at I Eployer identification nuber OMB No À¾µº Open to Public Inspection SUTTER HEALTH Part I Reason for Public Charity Status (All organizations ust coplete this part.) See instructions. The organization is not a private foundation because it is: (For lines 1 through 12, check only one box.) 1 A church, convention of churches, or association of churches described in section 170(1)(A)(i). 2 A school described in section 170(1)(A)(ii). (Attach Schedule E (For 990 or 990-EZ).) 3 A hospital or a cooperative hospital service organization described in section 170(1)(A)(iii). 4 A edical research organization operated in conjunction with a hospital described in section 170(1)(A)(iii). Enter the hospital's nae, city, and state: 5 An organization operated for the benefit of a college or university owned or operated by a governental unit described in section 170(1)(A)(iv). (Coplete Part II.) 6 A federal, state, or local governent or governental unit described in section 170(1)(A)(v). 7 An organization that norally receives a substantial part of its support fro a governental unit or fro the general public described in section 170(1)(A)(vi). (Coplete Part II.) 8 A counity trust described in section 170(1)(A)(vi). (Coplete Part II.) 9 An agricultural research organization described in section 170(1)(A)(ix) operated in conjunction with a land-grant college or university or a non-land-grant college of agriculture (see instructions). Enter the nae, city, and state of the college or university: 10 An organization that norally receives: (1) ore than 331/3 % of its support fro contributions, ebership fees, and gross receipts fro activities related to its exept functions - subject to certain exceptions, and (2) no ore than 331/3 %of its support fro gross investent incoe and unrelated business taxable incoe (less section 511 tax) fro businesses acquired by the organization after June 30, See section 509(2). (Coplete Part III.) 11 An organization organized and operated exclusively to test for public safety. See section 509(4). 12 An organization organized and operated exclusively for the benefit of, to perfor the functions of, or to carry out the purposes of one or ore publicly supported organizations described in section 509(1) or section 509(2). See section 509(3). Check the box in lines 12a through 12d that describes the type of supporting organization and coplete lines 12e, 12f, and 12g. a Type I. A supporting organization operated, supervised, or controlled by its supported organization(s), typically by giving the supported organization(s) the power to regularly appoint or elect a ajority of the directors or trustees of the supporting organization. You ust coplete Part IV, Sections A and B. b Type II. A supporting organization supervised or controlled in connection with its supported organization(s), by having control or anageent of the supporting organization vested in the sae persons that control or anage the supported organization(s). You ust coplete Part IV, Sections A and C. c Type III functionally integrated. A supporting organization operated in connection with, and functionally integrated with, its supported organization(s) (see instructions). You ust coplete Part IV, Sections A, D, and E. d Type III non-functionally integrated. A supporting organization operated in connection with its supported organization(s) that is not functionally integrated. The organization generally ust satisfy a distribution requireent and an attentiveness requireent (see instructions). You ust coplete Part IV, Sections A and D, and Part V. e Check this box if the organization received a written deterination fro the IRS that it is a Type I, Type II, Type III functionally integrated, or Type III non-functionally integrated supporting organization. f Enter the nuber of supported organizations 17 g Provide the following inforation about the supported organization(s). (A) (i) Nae of supported organization ATTACHMENT 1 (ii) EIN (iii) Type of organization (described on lines 1-10 above (see instructions)) (iv) Is the organization listed in your governing docuent? (v) Aount of onetary support (see instructions) (vi) Aount of other support (see instructions) (B) (C) (D) (E) Total 1,604,302,239. For Paperwork Reduction Act Notice, see the Instructions for For 990 or 990-EZ. Schedule A (For 990 or 990-EZ) E