2024-07-11T11:08:34+00:00 2023-08-31 346565596 ERNST & YOUNG US LLP 155 N WACKER DRIVE CHICAGO IL 60606 990 2022-09-01 363279680 Pediatric Faculty Foundation Inc PEDI 3122277133 225 E CHICAGO AVE BOX 282 CHICAGO IL 606112991 ALEX P MILLER SR. VP/CFO 3122277133 2024-07-11 true ALEX MILLER 999009999 Jess Wagener P01622613 3128792000 2024-07-08 2022 2023-04-26 12:10:37Z ESTELLA ALONSO MD 225 E CHICAGO AVE BOX 282 CHICAGO IL 606112991 269038846 false X WWW.LURIECHILDRENS.ORG X 1984 IL SEE SCHEDULE O. 5 3 703 3 0 0 28048179 64839908 186336911 204198938 0 0 0 0 214385090 269038846 0 0 0 176747289 190105750 0 0 0 65564622 60451390 242311911 250557140 -27926821 18481706 16994134 26312850 41190833 32027843 -24196699 -5714993 WE VALUE EXCELLENCE AND INNOVATION IN CLINICAL AND BASIC RESEARCH, COORDINATED AND COMPREHENSIVE PATIENT CARE, ONGOING PHYSICIAN EDUCATION, AND EVIDENCE-BASED CHILD ADVOCACY. OUR GOAL IS TO PROVIDE LEADERSHIP IN ENDEAVORS THAT PROMOTE THE HEALTH OF CHILDREN LOCALLY, NATIONALLY, AND INTERNATIONALLY. false false 247661999 0 204198938 SEE SCHEDULE O. 0 0 0 0 0 0 247661999 true true false false false false false false false false false false false false false false true false false false false false false false false false false false true false false false false false false false false false false false false false true false false false true X 0 0 703 true false false false false false false false false false false false false X 5 3 false false false false true true true true true false false true true true true true true true true false IL X ALEX P MILLER 3122277133 225 ECHICAGO AVE CHICAGO IL 606112991 Matthew Davis MD Ex-Officio Director/President and Chair 40.0 2.0 X X 736902 0 120531 Douglas Vaughan MD Director 1.0 0 X 0 0 0 Elizabeth Mcnally MD Phd Director 1.0 0 X 0 0 0 John J Greisch Director 1.0 2.0 X 0 0 0 Thomas P Shanley MD Ex-Officio Director/President & CEO LCH 1.0 47.0 X 0 2019722 380800 Alex P Miller Chief Financial Officer as of 2/6/23 1.0 46.0 X 0 0 0 Brenda Davis Interim Chief Financial Officer until 2/6/23 1.0 46.0 X 0 429837 30019 Fatema Zanzi Senior VP, Chief Legal Officer, Corporate Secretary 1.0 46.0 X 0 763271 85273 Annette M Wagner MD Physician 40.0 0 X 625076 0 68662 Derek S Wheeler MD Physician 40.0 1.0 X 828874 0 106763 Jeffrey L Loughead MD Physician/Associate Chair of Pediatrics/Medical Director 40.0 0 X 558585 0 66836 Kenneth M Brady MD Physician 40.0 0 X 608624 0 65812 Patrick Seed MD PhD Physician 40.0 1.0 X 555254 0 65812 Ron Blaustein Former Chief Financial Officer until 5/6/22 0.0 0.0 X 0 195697 9996 3913315 3408527 1000505 512 false true false 0 64839908 0 64839908 PATIENT SERVICE REVENUE 621111 109966131 109966131 PHYS CONTRACT REVENUE 621111 26596443 26596443 MEDICARE/MEDICAID PYMTS 621111 31386126 31386126 MED ADMIN AND EDUCATION 621111 14781101 14781101 PROF SVCS TO RSCH 621111 21469137 21469137 0 0 0 0 204198938 0 0 0 0 0 0 0 0 0 269038846 204198938 0 0 1101412 1101412 157224191 154439752 2784439 31780147 31780147 15275 15275 439628 386298 53330 0 30130 30130 113238 113238 96689 96525 164 4997169 4997169 439116 420955 18161 1147284 1146420 864 14476166 14476166 BAD DEBT EXPENSE 6534225 6534225 PLAN TAX 6095277 6095277 PATIENT EXPENSES 13465686 13465686 BILLING & COLLECTION 11281135 11281135 1320372 1297464 22908 0 250557140 247661999 2895141 0 16942505 26310045 0 0 0 0 51629 2805 0 0 0 0 0 0 0 0 16994134 26312850 41190833 32027843 0 0 0 0 41190833 32027843 -24196699 -5714993 -24196699 -5714993 16994134 26312850 18481706 0 X false true X true false X 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0.0 45224733 48679869 48279971 28048179 64839908 235072660 152726762 155068202 175940716 186336911 204198938 874271529 0 0 0 197951495 203748071 224220687 214385090 269038846 1109344189 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1109344189 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 197951495 203748071 224220687 214385090 269038846 1109344189 1 1.0 0 0.0 X 0 0 0 0 0 0 RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED false true false false false false false true false Matthew Davis MD Ex-Officio Director/President and Chair 565920 0 170071 0 911 0 81201 0 39330 0 857433 0 0 0 Thomas P Shanley MD Ex-Officio Director/President & CEO LCH 0 1219005 0 689963 0 110755 0 343203 0 37597 0 2400522 0 0 Ron Blaustein Former Chief Financial Officer until 5/6/22 0 113139 0 0 0 82558 0 9996 0 0 0 205693 0 81970 Brenda Davis Interim Chief Financial Officer until 2/6/23 0 352466 0 76250 0 1120 0 15250 0 14769 0 459856 0 0 Fatema Zanzi Senior VP, Chief Legal Officer, Corporate Secretary 0 512241 0 250460 0 570 0 81254 0 4019 0 848544 0 0 Kenneth M Brady MD Physician 587544 0 20735 0 345 0 30500 0 35312 0 674436 0 0 0 Jeffrey L Loughead MD Physician/Associate Chair of Pediatrics/Medical Director 531641 0 25038 0 1905 0 30500 0 36336 0 625421 0 0 0 Patrick Seed MD PhD Physician 423233 0 131677 0 345 0 30500 0 35312 0 621067 0 0 0 Annette M Wagner MD Physician 344476 0 279610 0 990 0 30500 0 38162 0 693738 0 0 0 Derek S Wheeler MD Physician 552038 0 276058 0 778 0 78447 0 28316 0 935637 0 0 0 Schedule J, Part I, Line 3 Arrangement used to establish the top management official's compensation PURSUANT TO THE BYLAWS OF CHILDREN'S HOSPITAL OF CHICAGO MEDICAL CENTER ("MEDICAL CENTER"), THE COMPENSATION COMMITTEE OF THE BOARD OF DIRECTORS OF THE MEDICAL CENTER IS CHARGED WITH REVIEWING AND APPROVING SENIOR EXECUTIVE COMPENSATION FOR THE MEDICAL CENTER AND ITS AFFILIATES AND THE COMPENSATION FOR ANY PHYSICIAN WHO MEETS THE CRITERIA FOR REVIEW AND APPROVAL BY THE COMMITTEE. THE COMPENSATION COMMITTEE HAS ADOPTED A WRITTEN EXECUTIVE COMPENSATION PHILOSOPHY WHICH IT FOLLOWS WHEN IT REVIEWS AND APPROVES THE COMPENSATION AND BENEFITS OF THE ORGANIZATION'S SENIOR MANAGEMENT, INCLUDING THE PRESIDENT. THE COMPENSATION PHILOSOPHY IS SUBJECT TO PERIODIC REVIEW BY THE COMPENSATION COMMITTEE FOR CONTINUED APPROPRIATENESS IN THE CURRENT MARKET. WITH THE ASSISTANCE OF INDEPENDENT COMPENSATION CONSULTANTS AND INFORMATION FROM A VARIETY OF SOURCES (SPECIFIED ON SCHEDULE J), THE COMPENSATION COMMITTEE CONFIRMED THE TOTAL AMOUNTS TO BE PAID TO IDENTIFIED EXECUTIVES AND PHYSICIANS WERE REASONABLE AND COMPARABLE TO AMOUNTS PAID BY SIMILARLY SITUATED ORGANIZATIONS TO INDIVIDUALS IN FUNCTIONALLY SIMILAR POSITIONS. LEGAL COUNSEL PERIODICALLY ADVISES THE COMPENSATION COMMITTEE WITH RESPECT TO FEDERAL TAX REQUIREMENTS IN SETTING COMPENSATION AND THE ESTABLISHMENT OF THE "REBUTTABLE PRESUMPTION OF REASONABLENESS" UNDER THE FEDERAL TAX LAW INTERMEDIATE SANCTIONS RULES. THE PROCESS FOLLOWED BY THE COMPENSATION COMMITTEE, INCLUDING A DESCRIPTION OF THE DATA RELIED UPON AND THE COMPENSATION COMMITTEE'S DECISIONS, WAS THOROUGHLY AND CONTEMPORANEOUSLY DOCUMENTED. THE COMPENSATION COMMITTEE HAS EXPRESSLY REVIEWED THE REASONABLENESS OF COMPENSATION PAID TO IDENTIFIED EXECUTIVES AND PHYSICIANS, AND HAS CONCLUDED, AS THE RESULT OF A PROCESS THAT IS DESIGNED TO QUALIFY FOR THE REBUTTABLE PRESUMPTION OF REASONABLENESS, THAT ALL SUCH AMOUNTS ARE REASONABLE AND DO NOT EXCEED FAIR MARKET VALUE FOR THE SERVICES PROVIDED. THE COMPENSATION COMMITTEE IS COMPRISED OF MEMBERS OF THE MEDICAL CENTER BOARD OF DIRECTORS WHO HAVE BEEN DETERMINED TO BE DISINTERESTED (WHICH MEANS NO COMMITTEE MEMBER HAS A CONFLICT OF INTEREST) FOR THESE PURPOSES. THE COMPENSATION COMMITTEE CONDUCTS AN ONGOING, REGULAR REVIEW OF THE DISINTERESTED STATUS OF ITS MEMBERS, AND WILL TAKE APPROPRIATE ACTION WITH RESPECT TO ANYONE HAVING AN INTEREST WITH RESPECT TO ONE OR MORE EXECUTIVES SO AS TO PRESERVE THE DISINTERESTED STATUS OF THE COMMITTEE AND, AS A RESULT, THE APPLICATION OF THE REBUTTABLE PRESUMPTION OF REASONABLENESS. Schedule J, Part I, Line 4b Supplemental nonqualified retirement plan ANN & ROBERT H. LURIE CHILDREN'S HOSPITAL OF CHICAGO MAINTAINS A DEFINED CONTRIBUTION SUPPLEMENTAL EXECUTIVE RETIREMENT PLAN ("DC SERP"), WHICH WAS ESTABLISHED ON JANUARY 1, 2017 AND IS A NONQUALIFIED DEFERRED COMPENSATION PLAN FOR CERTAIN EMPLOYEES IN EXECUTIVE POSITIONS. THE BENEFITS IN THE DC SERP ARE IN THE FORM OF A FIXED ANNUAL CONTRIBUTION RATE AND AN EARNINGS CREDIT. EACH YEAR'S CONTRIBUTION AND EARNINGS ARE AT RISK AND WILL BECOME FULLY VESTED AND TAXABLE ONLY AFTER FIVE YEARS OF FUTURE EMPLOYMENT SERVICE, OR UPON REACHING AGE 62 WITH AT LEAST THREE YEARS OF SERVICE. SEVERAL LISTED PERSONS IN THIS FORM 990 PARTICIPATE IN THE DC SERP, AND THE UNVESTED CONTRIBUTIONS MADE FOR THEM ARE INCLUDED IN SCHEDULE J, PART II, COLUMN (C). THE FOLLOWING INDIVIDUALS PARTICIPATED IN THE DC SERP AND RECEIVED A VESTED PAYMENT DURING 2022 WHICH IS REPORTED IN COLUMN B (III): RON BLAUSTEIN $81,970 THOMAS P. SHANLEY, MD $107,853 CEO DEFERRED COMPENSATION LISTED INDIVIDUAL THOMAS SHANLEY MD IS THE SOLE PARTICIPANT IN AN ADDITIONAL SUPPLEMENTAL RETIREMENT BENEFIT ARRANGEMENT THAT BEGAN IN 2021. HE IS ELIGIBLE TO EARN A BENEFIT THAT WILL NOT BECOME VESTED FOR SEVERAL YEARS. A PRORATED PORTION OF THE BENEFIT (REPRESENTING THE PORTION EARNED IN 2022) IS REPORTED IN COLUMN (C) AS UNVESTED DEFERRED COMPENSATION, AND WILL BE REPORTED AGAIN AS COMPENSATION IF AND WHEN THE FULL BENEFIT BECOMES VESTED AND IS SUBJECT TO TAX. THE INDEPENDENT COMPENSATION COMMITTEE OF THE CHILDREN'S HOSPITAL OF CHICAGO MEDICAL CENTER BOARD, WHOSE DILIGENT REVIEW AND APPROVAL PROCESS IS DESCRIBED ELSEWHERE IN THESE NARRATIVES, HAS REVIEWED AND APPROVED DR. SHANLEY'S TOTAL COMPENSATION IN A MANNER THAT QUALIFIES FOR THE REBUTTABLE PRESUMPTION OF REASONABLENESS UNDER THE FEDERAL TAX LAW INTERMEDIATE SANCTIONS RULES, AND AS PART OF THIS REVIEW PROCESS TOOK INTO ACCOUNT THE BENEFIT BEING EARNED UNDER THIS ADDITIONAL ARRANGEMENT. Schedule J, Part I, Line 7 Non-fixed payments THE ORGANIZATION PROVIDES ANNUAL INCENTIVE COMPENSATION TO SENIOR MANAGEMENT UNDER A SENIOR MANAGEMENT INCENTIVE COMPENSATION PLAN. THESE AMOUNTS ARE INCLUDED IN SCHEDULE J, PART II, COLUMN B (II). THE PLAN IS DESIGNED TO OFFER OPPORTUNITIES FOR ADDITIONAL COMPENSATION TIED TO PERFORMANCE AGAINST PRE-DETERMINED FINANCIAL, PATIENT SATISFACTION, PATIENT SAFETY AND INDIVIDUAL GOALS APPROVED IN ADVANCE BY THE COMPENSATION COMMITTEE OF THE CHILDREN'S HOSPITAL OF CHICAGO MEDICAL CENTER (MEDICAL CENTER) BOARD OF DIRECTORS, WHICH SERVES AS THE COMPENSATION COMMITTEE OF LURIE CHILDREN'S AND PEDIATRIC FACULTY FOUNDATION, INC. THE COMPENSATION COMMITTEE HAS EXPRESSLY REVIEWED THE REASONABLENESS OF ALL SUCH PAYMENTS AND HAS CONCLUDED, AS THE RESULT OF A PROCESS THAT IS DESIGNED TO QUALIFY FOR THE REBUTTABLE PRESUMPTION OF REASONABLENESS UNDER FEDERAL TAX LAW, THAT ALL SUCH AMOUNTS ARE REASONABLE AND DO NOT EXCEED FAIR MARKET VALUE FOR THE SERVICES PROVIDED. Schedule J, Part II RELATED COMPENSATION THE FOLLOWING INDIVIDUALS ARE NOT COMPENSATED BY THE REPORTING ORGANIZATION FOR HIS OR HER SERVICE AS A DIRECTOR OR OFFICER. RATHER, THE COMPENSATION REPORTED ON FORM 990, PART VII AND ON SCHEDULE J, PART II REFLECTS COMPENSATION PAID BY ANN & ROBERT H. LURIE CHILDREN'S HOSPITAL OF CHICAGO (LURIE CHILDREN'S) FOR THE INDIVIDUAL'S SUBSTANTIAL AND FULL-TIME SERVICES AS AN EMPLOYEE. FOR MORE DETAILS, PLEASE REFER TO THE 2022 FORM 990 OF LURIE CHILDREN'S, FEIN 36-2170833. BRENDA DAVIS FATEMA ZANZI RON BLAUSTEIN THOMAS P. SHANLEY, MD Form 990, Part I, Line 1 ORGANIZATION'S MISSION PEDIATRIC FACULTY FOUNDATION, INC., EMPLOYS PEDIATRIC MEDICINE SPECIALISTS AND SUBSPECIALISTS WHO PRACTICE AT ANN & ROBERT H. LURIE CHILDREN'S HOSPITAL OR A PARTNER SITE AND PROVIDE QUALITY HEALTH CARE TO CHILDREN IN THE COMMUNITY. Form 990, Part III, Line 4a PROGRAM SERVICE DESCRIPTION PEDIATRIC FACULTY FOUNDATION, INC. ("PFF") IS AN ILLINOIS NOT FOR PROFIT CORPORATION AND AN ORGANIZATION DESCRIBED UNDER SECTION 501(C)(3) OF THE CODE WHOSE SOLE CORPORATE MEMBER IS CHILDREN'S HOSPITAL OF CHICAGO MEDICAL CENTER ("MEDICAL CENTER") (FEIN 36-3357004). PFF EMPLOYS PEDIATRIC MEDICINE SPECIALISTS, SUBSPECIALISTS AND HOSPITALISTS. SUCH PHYSICIANS ARE BASED AND PRACTICE AT ANN & ROBERT H. LURIE CHILDREN'S HOSPITAL OF CHICAGO ("LURIE CHILDREN'S"), ANOTHER AFFILIATED ENTITY OF PFF, AND AT THE LURIE CHILDREN'S OUTREACH LOCATIONS. LURIE CHILDREN'S OFFERS OVER 70 TYPES OF PEDIATRIC SUBSPECIALTY CARE, MORE THAN ANY OTHER ILLINOIS HOSPITAL. PFF PROVIDES SPECIALTY SERVICES TO PATIENTS OF LURIE CHILDREN'S IN THE AREAS OF ALLERGY, CARDIOLOGY, IMMUNOLOGY, NEONATOLOGY, NEUROLOGY, DERMATOLOGY, EMERGENCY MEDICINE, ENDOCRINOLOGY, GASTROENTEROLOGY, HEPATOLOGY, GENERAL ACADEMIC PEDIATRICS, GENETICS, HEMATOLOGY AND ONCOLOGY, STEM CELL TRANSPLANT HOSPITAL-BASED MEDICINE, PALLIATIVE CARE, INFECTIOUS DISEASES, RHEUMATOLOGY, NEPHROLOGY AND PULMONARY AND CRITICAL CARE MEDICINE. IN ADDITION, PFF EMPLOYS FULL-TIME RESEARCH FACULTY. CURRENTLY, THE PRESIDENT OF PFF ALSO SERVES AS THE CHAIRMAN OF THE DEPARTMENT OF MEDICINE AT LURIE CHILDREN'S AND THE CHAIRMAN OF THE DEPARTMENT OF PEDIATRICS OF NORTHWESTERN UNIVERSITY FEINBERG SCHOOL OF MEDICINE ("NUFSM"). VIRTUALLY ALL OF THOSE PFF PHYSICIANS WHO ARE THE FULL-TIME HOSPITAL-BASED MEDICAL STAFF (EXCLUDING FELLOWS) HOLD FACULTY APPOINTMENTS AT NUFSM. LURIE CHILDREN'S PEDIATRIC-SPECIALIST PHYSICIANS (WHICH INCLUDE PFF PHYSICIANS) PROVIDE A SUBSTANTIAL PORTION OF THE SPECIALTY CARE TO CHILDREN INSURED BY THE STATE OF ILLINOIS' ALL KIDS PROGRAM. IN ADDITION, LURIE CHILDREN'S IS THE PEDIATRIC TRAINING CENTER OF NUFSM, PROVIDING RESIDENCIES IN BOTH PEDIATRICS AND PEDIATRIC SURGERY. EACH YEAR, LURIE CHILDREN'S DEPARTMENT OF PEDIATRICS, THROUGH THE PFF PHYSICIANS, TRAINS OVER 200 PHYSICIANS. APPROXIMATELY HALF ARE PEDIATRIC RESIDENTS, AND THE REMAINDER ARE FELLOWS IN VARIOUS PEDIATRIC SUB-SPECIALTIES INCLUDING CARDIOLOGY, HEMATOLOGY/ONCOLOGY AND NEONATOLOGY. PFF PROVIDES SERVICES REGARDLESS OF THE PATIENT'S ABILITY TO PAY. IT ACCEPTS PATIENTS COVERED BY MEDICARE AND MEDICAID AND PROVIDES FINANCIAL ASSISTANCE UNDER ITS FINANCIAL ASSISTANCE POLICY. Form 990, Part V, Line 1a FORM 1099/1096 FILING VENDORS FOR THE FILING ORGANIZATION ARE PAID BY ANN & ROBERT H. LURIE CHILDREN'S HOSPITAL OF CHICAGO (EIN 36-2170833). AS SUCH, ALL REQUIRED FORM 1099 AND FORMS 1096 REPORTING IS FILED UNDER THE LURIE CHILDREN'S EIN. Form 990, Part V, Line 2a ALLOCATION OF SALARY EXPENSES PEDIATRIC FACULTY FOUNDATION, INC. ISSUES FORMS W-2 TO EMPLOYEES WHO WORK FOR THE ORGANIZATION. ANN & ROBERT H. LURIE CHILDREN'S HOSPITAL OF CHICAGO ALSO PAYS AND ISSUES FORMS W-2 TO EMPLOYEES WHO WORK FOR PEDIATRIC FACULTY FOUNDATION, INC. THE ALLOCATION OF THE SALARY COSTS ARE DISCLOSED ON FORM 990, PART IX, STATEMENT OF FUNCTIONAL EXPENSES. Form 990, Part VI, Line 6 Classes of members or stockholders CHILDREN'S HOSPITAL OF CHICAGO MEDICAL CENTER IS THE ORGANIZATION'S SOLE CORPORATE MEMBER. Form 990, Part VI, Line 7a Members or stockholders electing members of governing body THE ORGANIZATION'S SOLE CORPORATE MEMBER, CHILDREN'S HOSPITAL OF CHICAGO MEDICAL CENTER ("MEDICAL CENTER"), HAS CERTAIN RESERVED POWERS, INCLUDING THE POWER TO APPOINT AND REMOVE THE MEDICAL CENTER DIRECTOR OF THE PFF BOARD. Form 990, Part VI, Line 7b Decisions requiring approval by members or stockholders CHILDREN'S HOSPITAL OF CHICAGO MEDICAL CENTER, THROUGH ITS BOARD OF DIRECTORS OR DESIGNATED COMMITTEE, AS THE SOLE CORPORATE MEMBER OF THE ORGANIZATION, HAS CERTAIN RESERVED POWERS WITH RESPECT TO APPOINTMENT AND REMOVAL OF CERTAIN DIRECTORS, APPOINTMENT OF CERTAIN OFFICERS, APPROVAL OF AMENDMENTS TO GOVERNING DOCUMENTS, APPROVAL OF FINANCIAL MATTERS, AND APPROVAL OF SIGNIFICANT TRANSACTIONS INCLUDING, BUT NOT LIMITED TO, MERGER, DISSOLUTION, DISPOSITION OF ASSETS OTHER THAN IN THE ORDINARY COURSE OF BUSINESS, AND CREATION OF SUBSIDIARIES. Form 990, Part VI, Line 11b Review of form 990 by governing body THE AUDIT AND COMPLIANCE COMMITTEE IS THE COMMITTEE OF THE MEDICAL CENTER BOARD CHARGED WITH THE OVERSIGHT OF AUDIT, TAX, AND COMPLIANCE MATTERS FOR THE PARENT AND AFFILIATES. DURING A SPECIAL AUDIT AND COMPLIANCE COMMITTEE MEETING, AND BEFORE FORM 990 WAS FILED, THE COMMITTEE WAS PROVIDED A REVIEW OF FORM 990 BY THE CHIEF FINANCIAL OFFICER ("CFO"). THE CFO AND OUTSIDE TAX ADVISOR ALSO RESPONDED TO THE COMMITTEE MEMBERS' QUESTIONS AND AFFORDED THEM THE OPPORTUNITY FOR DETAILED DISCUSSION OF FORM 990, PRIOR TO THE COMMITTEE TAKING ACTION TO APPROVE THE FILING OF FORM 990. A FULL COPY OF THE ORGANIZATION'S FORM 990 WAS PROVIDED TO THE RESPECTIVE FILING ORGANIZATION'S BOARD FOLLOWING THE COMMITTEE'S APPROVAL. AS PART OF ITS ANNUAL RETURN PREPARATION PROCESS, THE ORGANIZATION, ON AN ONGOING BASIS, CONSULTED ITS TAX CONSULTING FIRM AND OUTSIDE TAX LEGAL COUNSEL, BOTH OF WHICH POSSESS EXPERTISE IN HEALTH CARE AND TAX-EXEMPT RETURN PREPARATION, TO ADVISE AND ASSIST IN THE PREPARATION OF FORM 990. THESE ADVISORS WORKED CLOSELY WITH THE ORGANIZATION'S FINANCE PERSONNEL AND OTHER MEMBERS OF THE ORGANIZATION'S TEAM ASSEMBLED TO PARTICIPATE IN THE PREPARATION OF FORM 990. PRIOR TO PRESENTING FORM 990 TO THE MEDICAL CENTER BOARD'S AUDIT AND COMPLIANCE COMMITTEE, THE ORGANIZATION'S TEAM, INCLUDING ITS ADVISORS, MET FREQUENTLY TO DISCUSS AND REVIEW DRAFTS OF THE FORM. SUBSEQUENT TO THE AUDIT AND COMPLIANCE COMMITTEE REVIEW AND APPROVAL, FORM 990 WAS PROVIDED TO THE RESPECTIVE FILING ORGANIZATION'S BOARD OF DIRECTORS. Form 990, Part VI, Line 12c Conflict of interest policy ON AN ANNUAL BASIS, CHILDREN'S HOSPITAL OF CHICAGO MEDICAL CENTER (THE "MEDICAL CENTER") AND ITS AFFILIATES (COLLECTIVELY THE "CORPORATION") PROVIDE A COMPREHENSIVE QUESTIONNAIRE TO ITS BOARD MEMBERS, SENIOR MANAGEMENT AND PURCHASING PERSONNEL POSING QUESTIONS ABOUT ACTUAL OR POTENTIAL CONFLICTS OF INTEREST. THE MEDICAL CENTER INITIATES FOLLOW UP CONTACT TO THOSE WHO DO NOT RESPOND AND TO CLARIFY RESPONSES, WHERE NECESSARY. THE MEDICAL CENTER REVIEWS EACH DISCLOSURE AND PROVIDES A SUMMARY OF RELEVANT DISCLOSURES FOR THE REVIEW AND APPROVAL OF ITS NOMINATING AND GOVERNANCE COMMITTEE. PURSUANT TO THE CONFLICTS OF INTEREST POLICY OF THE CORPORATION, DIRECTORS, OFFICERS, PHYSICIAN LEADERS, AND OTHERS WHO ARE SUBJECT TO THE POLICY ARE REQUIRED TO PROMPTLY AND FULLY DISCLOSE IN WRITING ANY ACTUAL, APPARENT OR POTENTIAL CONFLICT OF INTEREST TO THE PRESIDENT OF THE CORPORATION AND CHIEF LEGAL OFFICER. DISCLOSURES ARE PROVIDED TO THE NOMINATING AND GOVERNANCE COMMITTEE OF THE MEDICAL CENTER BOARD OF DIRECTORS, WHICH CONSIDERS ALL CONFLICTS OF INTEREST ISSUES AND, IF APPROPRIATE, PROVIDES SUCH WRITTEN DISCLOSURE TO THE DIRECTORS AND/OR BOARD COMMITTEES CONSIDERING THE PROPOSED TRANSACTION OR OTHER APPROPRIATE PARTIES. IN ADDITION, ON AN ANNUAL BASIS, THE CORPORATION SURVEYS EACH INDIVIDUAL SUBJECT TO THE POLICY AS TO THE EXISTENCE OF ACTUAL OR POTENTIAL CONFLICTS OF INTEREST. THE CORPORATION WILL NOT ENTER INTO AN AGREEMENT, TRANSACTION OR OTHER ARRANGEMENT INVOLVING A CONFLICT OF INTEREST UNLESS THE DISINTERESTED MEMBERS OF THE NOMINATING AND GOVERNANCE COMMITTEE OF THE CORPORATION'S BOARD OF DIRECTORS DETERMINE BY A MAJORITY VOTE THAT APPROPRIATE SAFEGUARDS TO PROTECT THE CHARITABLE MISSION OF THE CORPORATION HAVE BEEN IMPLEMENTED. THE SUBJECT INTERESTED PERSON MAY NOT BE PRESENT WHEN THE VOTE IS TAKEN. IF IT IS DETERMINED THAT A CONFLICT OF INTEREST EXISTS, A DISINTERESTED PERSON OR COMMITTEE OF DISINTERESTED MEMBERS MAY BE ASSIGNED TO INVESTIGATE ALTERNATIVES TO THE PROPOSED TRANSACTION OR ARRANGEMENT. AFTER EXERCISING DUE DILIGENCE, THE BOARD OR COMMITTEE SHALL DETERMINE WHETHER THE CORPORATION CAN OBTAIN A MORE ADVANTAGEOUS TRANSACTION OR ARRANGEMENT, WITH REASONABLE EFFORTS, FROM A PERSON OR ENTITY THAT WOULD NOT GIVE RISE TO A CONFLICT OF INTEREST. IF A MORE ADVANTAGEOUS TRANSACTION OR ARRANGEMENT IS NOT REASONABLY ATTAINABLE UNDER CIRCUMSTANCES THAT WOULD NOT GIVE RISE TO A CONFLICT OF INTEREST, THE BOARD OR COMMITTEE SHALL DETERMINE BY A MAJORITY VOTE OF THE DISINTERESTED DIRECTORS WHETHER THE TRANSACTION IS IN THE CORPORATION'S BEST INTEREST AND FOR ITS OWN BENEFIT AND WHETHER THE TRANSACTION IS FAIR AND REASONABLE TO THE CORPORATION, AND SHALL MAKE ITS DECISION AS TO WHETHER TO ENTER INTO THE TRANSACTION OR ARRANGEMENT. Form 990, Part VI, Line 15a Process to establish compensation of top management official THE AUTHORITY TO REVIEW AND APPROVE EXECUTIVE COMPENSATION HAS BEEN DELEGATED TO THE COMPENSATION COMMITTEE OF CHILDREN'S HOSPITAL OF CHICAGO MEDICAL CENTER BOARD OF DIRECTORS ("COMPENSATION COMMITTEE"). THE COMPENSATION COMMITTEE HAS ADOPTED A WRITTEN EXECUTIVE COMPENSATION PHILOSOPHY, WHICH IT FOLLOWS WHEN IT REVIEWS AND APPROVES THE COMPENSATION AND BENEFITS OF THE ORGANIZATION'S SENIOR MANAGEMENT, INCLUDING THE PRESIDENT. THE COMPENSATION PHILOSOPHY IS SUBJECT TO PERIODIC REVIEW FOR CONTINUED APPROPRIATENESS BY THE COMPENSATION COMMITTEE. WITH THE ASSISTANCE OF A COMPENSATION CONSULTANT AND INFORMATION FROM A VARIETY OF EXTERNAL SOURCES (SPECIFIED ON SCHEDULE J), THE COMPENSATION COMMITTEE CONFIRMED THE TOTAL AMOUNTS TO BE PAID WERE REASONABLE AND COMPARABLE TO AMOUNTS PAID BY SIMILARLY SITUATED ORGANIZATIONS FOR FUNCTIONALLY SIMILAR POSITIONS. LEGAL COUNSEL ADVISES THE COMPENSATION COMMITTEE WITH RESPECT TO FEDERAL TAX REQUIREMENTS IN SETTING COMPENSATION AND THE ESTABLISHMENT OF THE REBUTTABLE PRESUMPTION OF REASONABLENESS. THE PROCESS FOLLOWED BY THE COMPENSATION COMMITTEE, INCLUDING A DESCRIPTION OF THE DATA RELIED UPON AND THE COMPENSATION COMMITTEE'S DECISIONS, WAS THOROUGHLY AND CONTEMPORANEOUSLY DOCUMENTED. THE COMPENSATION COMMITTEE HAS EXPRESSLY REVIEWED THE REASONABLENESS OF COMPENSATION PAID TO IDENTIFIED EXECUTIVES, AND HAS CONCLUDED, AS THE RESULT OF A PROCESS THAT IS DESIGNED TO QUALIFY FOR THE REBUTTABLE PRESUMPTION OF REASONABLENESS UNDER FEDERAL TAX LAW, THAT ALL SUCH AMOUNTS ARE REASONABLE AND DO NOT EXCEED FAIR MARKET VALUE FOR THE SERVICES PROVIDED. THE COMPENSATION COMMITTEE IS COMPRISED OF MEMBERS OF CHILDREN'S HOSPITAL OF CHICAGO MEDICAL CENTER BOARD OF DIRECTORS WHO HAVE BEEN DETERMINED TO BE DISINTERESTED FOR THESE PURPOSES. THE COMPENSATION COMMITTEE CONDUCTS AN ONGOING AND PERIODIC REVIEW OF THE DISINTERESTED STATUS OF ITS MEMBERS, AND WILL TAKE APPROPRIATE ACTION WITH RESPECT TO ANYONE HAVING AN INTEREST WITH RESPECT TO ONE OR MORE EXECUTIVES SO AS TO PRESERVE THE APPLICATION OF THE REBUTTABLE PRESUMPTION OF REASONABLENESS. Form 990, Part VI, Line 15b Process to establish compensation of other employees THE AUTHORITY TO REVIEW AND APPROVE EXECUTIVE COMPENSATION HAS BEEN DELEGATED TO THE COMPENSATION COMMITTEE OF CHILDREN'S HOSPITAL OF CHICAGO MEDICAL CENTER BOARD OF DIRECTORS ("COMPENSATION COMMITTEE"). THE COMPENSATION COMMITTEE HAS ADOPTED A WRITTEN EXECUTIVE COMPENSATION PHILOSOPHY, WHICH IT FOLLOWS WHEN IT REVIEWS AND APPROVES THE COMPENSATION AND BENEFITS OF THE ORGANIZATION'S SENIOR MANAGEMENT, INCLUDING THE PRESIDENT. THE COMPENSATION PHILOSOPHY IS SUBJECT TO PERIODIC REVIEW FOR CONTINUED APPROPRIATENESS BY THE COMPENSATION COMMITTEE. WITH THE ASSISTANCE OF A COMPENSATION CONSULTANT AND INFORMATION FROM A VARIETY OF EXTERNAL SOURCES (SPECIFIED ON SCHEDULE J), THE COMPENSATION COMMITTEE CONFIRMED THE TOTAL AMOUNTS TO BE PAID WERE REASONABLE AND COMPARABLE TO AMOUNTS PAID BY SIMILARLY SITUATED ORGANIZATIONS FOR FUNCTIONALLY SIMILAR POSITIONS. LEGAL COUNSEL ADVISES THE COMPENSATION COMMITTEE WITH RESPECT TO FEDERAL TAX REQUIREMENTS IN SETTING COMPENSATION AND THE ESTABLISHMENT OF THE REBUTTABLE PRESUMPTION OF REASONABLENESS. THE PROCESS FOLLOWED BY THE COMPENSATION COMMITTEE, INCLUDING A DESCRIPTION OF THE DATA RELIED UPON AND THE COMPENSATION COMMITTEE'S DECISIONS, WAS THOROUGHLY AND CONTEMPORANEOUSLY DOCUMENTED. THE COMPENSATION COMMITTEE HAS EXPRESSLY REVIEWED THE REASONABLENESS OF COMPENSATION PAID TO IDENTIFIED EXECUTIVES, AND HAS CONCLUDED, AS THE RESULT OF A PROCESS THAT IS DESIGNED TO QUALIFY FOR THE REBUTTABLE PRESUMPTION OF REASONABLENESS UNDER FEDERAL TAX LAW, THAT ALL SUCH AMOUNTS ARE REASONABLE AND DO NOT EXCEED FAIR MARKET VALUE FOR THE SERVICES PROVIDED. THE COMPENSATION COMMITTEE IS COMPRISED OF MEMBERS OF CHILDREN'S HOSPITAL OF CHICAGO MEDICAL CENTER BOARD OF DIRECTORS WHO HAVE BEEN DETERMINED TO BE DISINTERESTED FOR THESE PURPOSES. THE COMPENSATION COMMITTEE CONDUCTS AN ONGOING AND PERIODIC REVIEW OF THE DISINTERESTED STATUS OF ITS MEMBERS, AND WILL TAKE APPROPRIATE ACTION WITH RESPECT TO ANYONE HAVING AN INTEREST WITH RESPECT TO ONE OR MORE EXECUTIVES SO AS TO PRESERVE THE APPLICATION OF THE REBUTTABLE PRESUMPTION OF REASONABLENESS. Form 990, Part VI, Line 19 Required documents available to the public THE ORGANIZATION'S FINANCIAL STATEMENTS ARE PUBLICLY AVAILABLE ONLINE AT WWW.DACBOND.COM. THE ORGANIZATION'S ARTICLES OF INCORPORATION AND ANNUAL REPORTS ARE AVAILABLE THROUGH THE ILLINOIS SECRETARY OF STATE. THE ORGANIZATION ALSO MAKES ITS GENERAL GOVERNING DOCUMENTS AVAILABLE TO THE GENERAL PUBLIC UPON REQUEST. Form 990, Part VII, Section B, Line 1 INDEPENDENT CONTRACTORS VENDORS FOR THE FILING ORGANIZATION ARE PAID BY ANN & ROBERT H. LURIE CHILDREN'S HOSPITAL OF CHICAGO ("LURIE CHILDREN'S"). AS SUCH, THE FIVE HIGHEST COMPENSATED INDEPENDENT CONTRACTORS ARE REPORTED ON THE FORM 990 FOR LURIE CHILDREN'S (EIN 36-2170833). ALMOST HOME KIDS 7 S 721 ROUTE 53 NAPERVILLE IL 60540 363822010 TRANSITION CR IL 501(c)(3) 10 MEDICAL CTR false STANLEY MANNE CHILDREN'S RESC INSTITUTE 225 E CHICAGO AVE CHICAGO IL 60611 363357005 RESEARCH IL 501(c)(3) 4 MEDICAL CTR false LURIE CHILDREN'S HOSPITAL OF CHICAGO FDN 225 E CHICAGO AVE CHICAGO IL 60611 363357006 FUNDRAISING IL 501(c)(3) 7 MEDICAL CTR false CHILDREN'S HOSPITAL OF CHICAGO MED CTR 225 E CHICAGO AVE CHICAGO IL 60611 363357004 HEALTH CARE IL 501(c)(3) 10 NA false LURIE CHILDRENS LIABILITY PROTECTION PRG 225 E CHICAGO AVE CHICAGO IL 60611 366638400 INSURANCE IL 501(c)(3) Type III-FI MEDICAL CTR false LURIE CHILDREN'S 225 E CHICAGO AVE CHICAGO IL 60611 362170833 HOSPITAL IL 501(c)(3) 3 MEDICAL CTR false CHILDREN'S HOSPITAL OF CHICAGO FPP 737 NORTH MICHIGAN AVE 2040 CHICAGO IL 60611 363393780 SUPPORTING ORG IL 501(c)(3) Type I MEDICAL CTR false LURIE CHILDREN'S PEDIATRIC ANESTHESIA ASSOCIATES 225 E CHICAGO AVE CHICAGO IL 60611 371838535 HEALTH CARE IL 501(c)(3) 3 MEDICAL CTR false LURIE CHILDREN'S SURGICAL FOUNDATION INC 225 E CHICAGO AVE CHICAGO IL 60611 831650513 HLTH CRE/RSCH IL 501(c)(3) 3 MEDICAL CTR false LURIE CHILDRENS CIN LLC 225 E CHICAGO AVE CHICAGO IL 60611 901025439 CONTRACTING SVCS IL NA CMMC INSURANCE CO LTD 225 E CHICAGO AVE CHICAGO IL 60611 981049532 SELF INSURANCE CJ NA C Corporation false false true false false false false false false false true false false false true true false false true