2024-11-14T16:35:16-06:00 2023-12-31 363168081 SIKICH LLC 17335 GOLF PARKWAY SUITE 500 BROOKFIELD WI 53045 990 2023-01-01 271494977 CHORUS COMMUNITY HEALTH PLANS INC CHOR 4142665420 PO BOX 1997 FINANCE DEPT MILWAUKEE WI 532011997 MARC A CADIEUX TREASURER 4142665420 2024-11-13 1 0 JILL M BOYLE CPA P01246734 2627549400 2024-11-13 2023 2024-10-15 13:58:12Z MARK RAKOWSKI PO BOX 1997 FINANCE DEPT MILWAUKEE WI 532011997 473657865 0 X HTTPS://CHORUSHEALTHPLANS.ORG X 2009 WI TO PROVIDE ACCESS TO QUALITY HEALTH CARE AND SERVICES TO ITS MEMBERS IN WI. 10 8 0 8 0 0 0 0 460810003 466998654 1764379 6578316 29586 33974 462603968 473610944 169745 53500 358408920 393653194 13576648 14222283 0 0 0 66555446 49259622 438710759 457188599 23893209 16422345 253600863 268808395 89569966 87872465 164030897 180935930 X CHORUS COMMUNITY HEALTH PLANS, INC. ("CCHP") IS A HEALTH MAINTENANCE ORGANIZATION DEDICATED TO PROVIDING ACCESS TO THE HIGHEST QUALITY HEALTH CARE AND SERVICES TO MEMBERS. 0 0 289639112 53500 310754500 CCHP'S PURPOSE IS TO PROMOTE ACCESS TO HEALTHCARE SERVICES FOR LOW-INCOME CHILDREN AND CERTAIN OTHER DISADVANTAGED RESIDENTS OF THE STATE OF WISCONSIN, AND TO PROMOTE OR SPONSOR PROGRAMS FURTHERING THE HEALTH OF ITS MEMBERS AND THE LARGER COMMUNITIES SERVED. CCHP IS AN HMO FOR WISCONSIN MEDICAID-ELIGIBLE INDIVIDUALS AND FAMILIES LIVING IN BROWN, CALUMET, DODGE, DOOR, FOND DU LAC, FOREST, GREEN LAKE, JEFFERSON, KENOSHA, KEWAUNEE, LINCOLN, MANITOWOC, MARINETTE, MILWAUKEE, OCONTO, ONEIDA, OUTAGAMIE, OZAUKEE, RACINE, ROCK, SHAWANO, SHEBOYGAN, VILAS, WALWORTH, WASHINGTON, WAUKESHA, WAUPACA, WAUSHARA, AND WINNEBAGO COUNTIES IN WISCONSIN. THE MEDICAID ENROLLMENT AT THE END OF DECEMBER 2023 WAS 136,238 MEMBERS, AND THERE WERE 9,604 INPATIENT ADMISSIONS, 426,504 AMBULATORY ENCOUNTERS, AND 2,352 DELIVERIES IN 2023. THE PLAN ALLOWS MEMBERS TO CHOOSE FROM A LARGE NETWORK OF PROVIDERS, WHICH INCLUDED MORE THAN 11,500 PHYSICIANS, MORE THAN 13,400 NON PHYSICIANS, AND 102 HOSPITALS IN 2023. IN ADDITION, CCHP OFFERS HOME CARE, MEDICAL EQUIPMENT PROVIDERS AND THE CCHP NURSELINE FOR ITS MEMBERS. 136483257 140606299 CCHP SELLS INDIVIDUAL COMPREHENSIVE INSURANCE PLANS SUBJECT TO THE AFFORDABLE CARE ACT ON THE FEDERALLY FACILITATED MARKETPLACE AND OFF EXCHANGE DIRECTLY TO CONSUMERS. THERE WERE 16,085 MEMBERS ENROLLED AT THE END OF DECEMBER 2023. APPROXIMATELY 79 PERCENT OF THE POLICY HOLDERS RECEIVED AN ADVANCE PREMIUM TAX CREDIT (APTC), AND THESE CREDITS ACCOUNTED FOR 62 PERCENT OF THE PREMIUM REVENUE FROM MEMBERS. ADDITIONALLY, APPROXIMATELY 30 PERCENT OF THE ENROLLMENT MONTHS WERE ON SILVER PLANS THAT QUALIFIED FOR COST SUBSIDY REIMBURSEMENT (CSR), ALTHOUGH CMS NO LONGER PAYS THE SUBSIDY. BEGINNING IN 2022, CCHP ALSO STARTED TO SELL A STAND-ALONE DENTAL INSURANCE PLAN, WHICH HAD 189 MEMBERS ENROLLED AT THE END OF DECEMBER 2023. 15599225 15671829 CCHP RECORDED REVENUE AND EXPENSES FOR CHILDREN'S HOSPITAL AND HEALTH SYSTEM'S (CHHS) FOSTER CARE MEDICAL HOME PROGRAM CALLED CARE4KIDS. CARE4KIDS IS A NON-RISK PREPAID INPATIENT HEALTH PLAN CONTRACT BETWEEN CHHS AND WISCONSIN MEDICAID THAT PROVIDES COMPREHENSIVE HEALTHCARE SERVICES FOR QUALIFYING FOSTER CHILDREN IN SOUTHEASTERN WISCONSIN. CCHP PROVIDES UTILIZATION MANAGEMENT AND A PROVIDER NETWORK, AND PROCESSES CLAIMS FOR THE PARTICIPANTS VIA A SUBCONTRACT AGREEMENT WITH CHHS. THERE WERE 2,778 FOSTER CHILDREN IN CARE4KIDS AT THE END OF DECEMBER 2023. 441721594 1 0 0 1 0 0 0 0 0 0 1 0 0 0 1 1 1 1 0 0 0 0 0 0 0 0 0 1 0 1 0 0 0 0 0 0 0 0 0 0 0 0 0 1 0 0 0 1 X 2433 0 0 0 0 0 0 0 0 0 0 0 0 0 0 X 10 8 0 0 0 0 1 1 1 1 1 0 0 1 1 1 1 1 1 1 1 0 X MS SARAH KAFKA 4142668976 PO BOX 1997 FINANCE DEPT MILWAUKEE WI 532011997 MARGARET TROY DIRECTOR/PRESIDENT AND CEO CHHS 0.00 40.00 X 0 2192619 74552 MARK RAKOWSKI DIRECTOR/PRESIDENT OF CCHP 0.00 40.00 X X 0 640109 163764 JAMES PURKO DIRECTOR/CHAIR 1.00 0.00 X X 0 0 0 DAVID DRURY DIRECTOR 1.00 0.00 X 0 0 0 MARK HOGAN DIRECTOR 1.00 0.00 X 0 0 0 BEN MELSON DIRECTOR 1.00 0.00 X 0 0 0 THOMAS PRECIA DIRECTOR 1.00 0.00 X 0 0 0 MICHAEL SILVER DIRECTOR 1.00 0.00 X 0 0 0 CLARK SLIPHER DIRECTOR 1.00 0.00 X 0 0 0 RALPH WEBER DIRECTOR 1.00 0.00 X 0 0 0 MARC CADIEUX TREASURER/CORP VP & CFO 0.00 40.00 X 0 1036005 132135 LESLIE TECTOR SECRETARY/VP GENERAL COUNSEL 0.00 40.00 X 0 611392 103581 MICHAEL BOEDER VICE PRESIDENT/COO CCHP 40.00 0.00 X 270442 0 46349 JULIE ANTHOLINE DIR HEALTH PLAN OPERATIONS 40.00 0.00 X 164520 0 56676 KELLY HODGES MD ASSOCIATE CMO CCHP 40.00 0.00 X 308502 0 21897 MICHAEL PELYHES HLTH PLAN PHARMACY DIRECTOR 40.00 0.00 X 188337 0 65947 JAMES SLAWSON MD CHIEF MEDICAL OFFICER CCHP 40.00 0.00 X 389491 0 82919 JACQUELINE WHELAN VP QLTY & ANALYTICS 40.00 0.00 X 179329 0 67301 MICHELLE METTNER FORMER SEC/CORP VP GOV & LEGAL AFF. 0.00 40.00 X 0 411893 7319 1500621 4892018 822440 22 1 1 0 DENTAL PROFESSIONALS OF WI 3520 W OKLAHOMA AVE MILWAUKEE WI 53215 DENTAL SERVICES 26653912 DEAN HEALTH PLAN INC 1277 DEMING WAY MADISON WI 53717 CLAIM TPA FEES 14731660 LIBERTY INSURANCE 100 N CORPORATE DR STE 100 BROOKFIELD WI 53045 INSURANCE BROKER 1899015 HERSLOF OPTICAL COMPANY INC 12000 W CARMEN AVE MILWAUKEE WI 53225 CAPITATED VISION SERVICES 1761197 UPMC BENEFIT MANAGEMENT SERVICES INC 600 GRANT ST 12TH FLOOR PITTSBURGH PA 15219 CLAIM AND BILLING TPA FEES 954888 25 PREMIUM REVENUE 524114 451326825 451326825 FOSTER CARE MEDICAL HOME PIHP 524298 15671829 15671829 466998654 6619237 6619237 6000 6304 40617 -304 -40617 -40921 -40921 OTHER REVENUE 900099 33974 33974 33974 473610944 467032628 0 6578316 53500 53500 393653194 393653194 316791 316791 11135679 7904742 3230937 546439 391489 154950 1443093 1006703 436390 780281 553888 226393 3179736 3179736 89727 89727 47980 47980 150333 150333 28369147 24207323 4161824 231878 231878 6671 3889 2782 1486380 88581 1397799 28334 28334 10455 4051 6404 16212 12471 3741 129329 129329 FOSTER CARE MEDICAL HOM 15057034 15057034 STATE INCOME TAX 1488926 1488926 OTHER EXPENSES 1002480 791395 211085 PREMIUM RESERVE DEFICIE -2035000 -2035000 457188599 441721594 15467005 0 283255 507966 161310525 176234454 66226832 65138170 1266182 1274925 664049 439899 394097 224150 22819630 24116212 1300342 1312518 253600863 268808395 82956531 78861954 2108606 1826599 4504829 7183912 89569966 87872465 X 164030897 180935930 164030897 180935930 253600863 268808395 16422345 482688 0 X X 0 1 X 1 0 X 363681065 397955482 426477163 460810003 466998654 2115922367 363681065 397955482 426477163 460810003 466998654 2115922367 0 0 0 2115922367 2040465 719514 273532 1976008 6619237 11628756 2040465 719514 273532 1976008 6619237 11628756 8750 14445 27345 29586 33974 114100 365730280 398689441 426778040 462815597 473651865 2127665223 0.99450 0.99730 0.00550 0.00270 X SCHEDULE A, PART III, SECTION B, LINE 12, COLUMN E: 2016 OTHER REVENUE $ 750 2017 OTHER REVENUE $ 2,239 2018 OTHER REVENUE $ 675 2019 OTHER REVENUE $ 8,750 2020 OTHER REVENUE $14,445 2021 OTHER REVENUE $27,345 2022 OTHER REVENUE $29,586 2023 OTHER REVENUE $33,974 0 0 0 0 0 0 1 0 1 47980 47980 0 PART II-B, LINE 1: SINCE CHORUS COMMUNITY HEALTH PLAN ("CCHP") IS A WISCONSIN MEDICAID HMO, CERTAIN OFFICERS OF CCHP AND CCHP'S PARENT, CHILDREN'S HOSPITAL AND HEALTH SYSTEM, INC. (CHHS), MEET WITH OFFICIALS FROM THE STATE OF WISCONSIN DEPARTMENT OF HEALTH SERVICES TO DISCUSS THE MEDICAID PROGRAM IN WISCONSIN. THE EXPENSE FOR THE CCHP OFFICERS WAS NOT REPORTED AS LOBBYING ON CCHP'S PART IX. THE AMOUNT REPORTED ON SCHEDULE C PART II-B LINE 1I CONSISTS OF $24,000 PAID TO AN OUTSIDE CONSULTANT WHO IS A REGISTERED LOBBYIST WHO ADVISES CCHP MANAGEMENT. THE REMAINING $23,980 IS THE PORTION OF FEES PAID TO NATIONAL TRADE ASSOCIATIONS THAT WERE ATTRIBUTED TO NON-DEDUCTIBLE LOBBYING ACTIVITIES BY THE TRADE ASSOCIATIONS. 664049 439899 224150 224150 DUE TO AFFILIATES 3640343 OTHER LIABILITIES 3542581 LEASE LIABILITY 988 7183912 X 461311016 3411886 3411886 457899130 6011 15705803 15711814 473610944 444793696 -15800778 -15800778 460594474 6011 -3411886 -3405875 457188599 PART X, LINE 2: FOOTNOTE 2 INCOME TAXES: CHHS EVALUATES ITS UNCERTAIN TAX POSITIONS ON AN ANNUAL BASIS, AND THERE HAVE BEEN NO UNCERTAIN TAX POSITIONS RECORDED FOR THE YEARS ENDED DECEMBER 31, 2023 AND 2022. PART XI, LINE 2D - OTHER ADJUSTMENTS: REINSURANCE PREMIUMS -2,193,792. ADMINISTRATIVE SERVICES PROVIDER SETTELEMENT 5,750,000. BANK FEES -144,322. PART XI, LINE 4B - OTHER ADJUSTMENTS: OTHER REVENUE 33,974. FOSTER CARE MEDICAL HOME PIHP 15,671,829. PART XII, LINE 2D - OTHER ADJUSTMENTS: STATUTORY ACCOUNTING DIFFERENCES -94,975. FOSTER CARE MEDICAL HOME PIHP -15,671,829. OTHER REVENUE -33,974. PART XII, LINE 4B - OTHER ADJUSTMENTS: REINSURANCE PREMIUMS 2,193,792. ADMINISTRATIVE SERVICES PROVIDER SETTELEMENT -5,750,000. BANK FEES 144,322. 1 CHILDREN'S WI FOUNDATION PO BOX 1997 FINANCE DEPT MILWAUKEE WI 532011997 391500074 501(C)(3) 36000 0 ER FOOD INSECURITY SCREENING AND FOLLOW-UP UNITED COMMUNITY CENTER 1028 S 9TH STREET MILWAUKEE WI 53204 391146191 501(C)(3) 10000 0 GENERAL SUPPORT 2 0 PART I, LINE 2: OCCASIONALLY, CCHP WILL MAKE CONTRIBUTIONS TO OTHER NOT-FOR-PROFIT OR GOVERNMENT ORGANIZATIONS. IN ORDER TO MONITOR THE USE OF THE FUNDS, CCHP LEADERSHIP WILL PERIODICALLY TOUCH BASE WITH THESE ORGANIZATIONS AND INQUIRE OR RECEIVE REPORTS ON HOW THE FUNDS WERE UTILIZED. 0 1 0 0 0 0 0 1 0 MARGARET TROY DIRECTOR/PRESIDENT AND CEO CHHS 0 1284168 0 476756 0 431695 0 24450 0 50102 0 2267171 0 0 MARC CADIEUX TREASURER/CORP VP & CFO 0 677156 0 181050 0 177799 0 130298 0 1837 0 1168140 0 126916 MARK RAKOWSKI DIRECTOR/PRESIDENT OF CCHP 0 424708 0 86394 0 129007 0 99938 0 63826 0 803873 0 81612 LESLIE TECTOR SECRETARY/VP GENERAL COUNSEL 0 533754 0 76396 0 1242 0 81150 0 22431 0 714973 0 0 JAMES SLAWSON MD CHIEF MEDICAL OFFICER CCHP 344150 0 30532 0 14809 0 17850 0 65069 0 472410 0 0 0 MICHELLE METTNER FORMER SEC/CORP VP GOV & LEGAL AFF. 0 316519 0 93526 0 1848 0 0 0 7319 0 419212 0 0 KELLY HODGES MD ASSOCIATE CMO CCHP 272183 0 24795 0 11524 0 17463 0 4434 0 330399 0 0 0 MICHAEL BOEDER VICE PRESIDENT/COO CCHP 243726 0 25180 0 1536 0 19232 0 27117 0 316791 0 0 0 MICHAEL PELYHES HLTH PLAN PHARMACY DIRECTOR 174436 0 13596 0 305 0 7884 0 58063 0 254284 0 0 0 JACQUELINE WHELAN VP QLTY & ANALYTICS 164687 0 14019 0 623 0 7655 0 59646 0 246630 0 0 0 JULIE ANTHOLINE DIR HEALTH PLAN OPERATIONS 151529 0 11646 0 1345 0 13718 0 42958 0 221196 0 0 0 PART I, LINE 3 CCHP RELIED UPON CHILDREN'S HOSPITAL AND HEALTH SYSTEM, INC. ("CHHS"), THE CORPORATE MEMBER OF CCHP, TO ESTABLISH THE COMPENSATION OF CCHP'S PRESIDENT. CHHS USED ITS INDEPENDENT COMPENSATION COMMITTEE, AN INDEPENDENT COMPENSATION CONSULTANT, THE FORM 990 OF OTHER ORGANIZATIONS, A COMPENSATION SURVEY, AND APPROVAL BY THE COMPENSATION COMMITTEE TO DETERMINE THE COMPENSATION. PART I, LINE 4B IN 2023, THERE WAS A CHHS EXECUTIVE FLEXIBLE BENEFIT PLAN IN PLACE WHICH WAS A SUPPLEMENTAL NONQUALIFIED RETIREMENT PLAN (457(F) PLAN). THE CORPORATION CONTRIBUTES 10% OF EACH PARTICIPATING EXECUTIVE'S SALARY. THE AMOUNTS OF EMPLOYER CONTRIBUTIONS TO THIS PLAN FOR PARTICIPATING EXECUTIVES IN 2023 WERE AS FOLLOWS: M. CADIEUX, $105,848; L. TECTOR, $60,000; AND M. RAKOWSKI $72,188. AFTER A VESTING PERIOD, PARTICIPANTS MAY ELECT TO WITHDRAW AMOUNTS PREVIOUSLY CONTRIBUTED AND REPORTED. AMOUNTS WITHDRAWN BY PARTICIPANTS IN 2023 WERE: M. CADIEUX, $126,916, AND M. RAKOWSKI, $81,612. PART I, LINE 7 CERTAIN EXECUTIVES PARTICIPATE IN AN ANNUAL BONUS PLAN THAT PROVIDES COMPENSATION BASED ON ACHIEVING SPECIFIC PRE-DEFINED GOALS. BONUS CRITERIA ARE COMPRISED OF BOTH SYSTEM LEVEL AND EXECUTIVE SPECIFIC COMPONENTS. SUCH CRITERIA PERTAIN TO MATTERS WITHIN THE EXECUTIVE'S AREA OF RESPONSIBILITY, AS WELL AS ACHIEVEMENT OF OVERALL STRATEGIC OBJECTIVES OF THE ORGANIZATION AND ITS AFFILIATES IN ALIGNMENT WITH SYSTEM-WIDE BALANCED MEASURES. FORM 990, PART VII, COLUMN E & SCHEDULE J, PART II: SALARIES PAID BY RELATED ORGANIZATIONS: 1. MARGARET TROY, DIRECTOR OF CCHP AND PRESIDENT & CEO OF CHHS, MARC CADIEUX, TREASURER OF CCHP AND TREASURER & CFO OF CHHS, LESLIE TECTOR, VP GENERAL COUNSEL, MICHELLE METTNER, FORMER SECRETARY/CORP VP GOV & LEGAL AFFAIRS, AND MARK RAKOWSKI, PRESIDENT AND DIRECTOR OF CCHP - REPORTABLE COMPENSATION FROM RELATED ORGANIZATIONS AND OTHER COMPENSATION LISTED IN PART VII AND SCHEDULE J WERE PAID FOR SERVICES PROVIDED (40 HOURS PER WEEK) TO CHHS AND ITS AFFILIATES. THESE AMOUNTS WERE PAID BY CHHS. SERVICES BY MS. TROY, AND MR. RAKOWSKI AS MEMBERS OF THE BOARD OF DIRECTORS OF CCHP WERE PROVIDED AS PART OF THEIR POSITIONS OF CHHS. FORM 990, PART V, LINE 2A THE ORGANIZATION DID NOT FILE FORM W-3 DURING THE TAXABLE YEAR. ALTHOUGH THE ORGANIZATION DID RETAIN EMPLOYEES AND REPORTED SALARIES ON PART IX OF THE FORM 990, THE COMPENSATION AMOUNTS PAID TO EMPLOYEES OF CCHP WERE PROCESSED AND PAID BY A RELATED ENTITY, CHIDLREN'S HOSPITAL AND HEALTH SYSTEM, INC. (CHHS), WITH APPROPRIATE INTERCOMPANY ARRANGEMENTS BETWEEN THE ORGANIZATION AND CHHS. THE FORM W-3 WAS ISSUED BY CHHS, AS THE ENTITY THAT PROCESSED AND MADE THE PAYMENTS TO THE EMPLOYEES. FORM 990, PART VI, SECTION A, LINE 6 THE ORGANIZATION HAS A SOLE CORPORATE MEMBER WHICH IS CHILDREN'S HOSPITAL AND HEALTH SYSTEM, INC. (CHHS). FORM 990, PART VI, SECTION A, LINE 7A CHHS, THE SOLE CORPORATE MEMBER OF THE ORGANIZATION, ELECTS THE ORGANIZATION'S GOVERNING BODY. FORM 990, PART VI, SECTION A, LINE 7B THE SOLE CORPORATE MEMBER, CHHS, HAS CERTAIN RESERVE POWERS OVER THE CORPORATION, INCLUDING AMENDMENT OF THE ARTICLES OF INCORPORATION AND BYLAWS; APPROVAL OF MERGER, CONSOLIDATION OR THE CREATION OF ANY SUBSIDIARIES BY THE CORPORATION; APPROVAL OF THE ANNUAL BUDGET AND ANY DEBT; AND SELECTION OF THE PRESIDENT. FORM 990, PART VI, SECTION B, LINE 11B THE FORM 990 WAS REVIEWED BY THE AUDIT AND COMPLIANCE COMMITTEE OF THE CHHS BOARD OF DIRECTORS, AND PRIOR TO FILING, A COPY WAS PROVIDED TO ALL DIRECTORS OF CCHP. FORM 990, PART VI, SECTION B, LINE 12C ANNUALLY, ALL MEMBERS OF THE BOARD OF DIRECTORS, OFFICERS, AND KEY EMPLOYEES ARE REQUESTED TO SUBMIT A CONFLICT OF INTEREST DISCLOSURE TO THE DIRECTOR OF CORPORATE COMPLIANCE. THE COMPLIANCE DEPARTMENT MONITORS AND PERIODICALLY REVIEWS TRANSACTIONS BETWEEN THE ORGANIZATION AND BOARD MEMBERS OR ENTITIES WITH WHICH THEY ARE AFFILIATED. FORM 990, PART VI, SECTION B, LINE 15 THE COMPENSATION OF THE ORGANIZATION'S PRESIDENT, TREASURER, AND SECRETARY WAS REVIEWED AND APPROVED BY THE INDEPENDENT COMPENSATION COMMITTEE OF CHHS (THE ORGANIZATION'S CORPORATE MEMBER). WITH THE ASSISTANCE OF AN INDEPENDENT COMPENSATION CONSULTANT AND INFORMATION FROM A VARIETY OF EXTERNAL SOURCES (AS INDICATED ON SCHEDULE J), THE COMMITTEE CONFIRMED THAT TOTAL COMPENSATION AMOUNTS TO BE PAID WERE REASONABLE AND COMPARABLE TO AMOUNTS PAID BY SIMILARLY SITUATED ORGANIZATIONS. THE PROCESS FOLLOWED BY THE COMMITTEE, INCLUDING THE DATA RELIED UPON AND THE COMMITTEE'S DECISIONS, WAS THOROUGHLY AND TIMELY DOCUMENTED. COMPENSATION OF THE COO WAS SET BY SUPERVISORY EXECUTIVES IN CONSULTATION WITH CHHS HUMAN RESOURCES LEADERS. THE PROCESS INCLUDED REVIEW BY INDEPENDENT PERSONS WHO, USING A VARIETY OF EXTERNAL SOURCES (AS INDICATED ON SCHEDULE J), CONFIRMED THAT TOTAL COMPENSATION AMOUNTS TO BE PAID WERE REASONABLE AND COMPARABLE TO AMOUNTS PAID BY SIMILARLY SITUATED ORGANIZATIONS. THE PROCESS AND DATA RELIED ON WERE THOROUGHLY AND TIMELY DOCUMENTED. FORM 990, PART VI, SECTION C, LINE 19 THE GOVERNING DOCUMENTS, CONFLICT OF INTEREST POLICY AND FINANCIAL INFORMATION OF CCHP ARE AVAILABLE TO THE PUBLIC UPON REQUEST THROUGH THE CHHS MARKETING AND COMMUNICATION DEPARTMENT. FORM 990, PART XII LINE 2 & PART IV, LINE 12A: CCHP WAS INCLUDED IN THE CONSOLIDATED FINANCIAL STATEMENTS OF CHHS. THE CONSOLIDATED FINANCIAL STATEMENTS OF CHHS WERE PREPARED IN ACCORDANCE WITH ACCOUNTING PRINCIPLES GENERALLY ACCEPTED IN THE UNITED STATES OF AMERICA AND WERE AUDITED BY AN INDEPENDENT ACCOUNTANT. ADDITIONALLY, CCHP WAS REQUIRED TO PREPARE STATUTORY FINANCIAL STATEMENTS IN ACCORDANCE WITH ACCOUNTING PRACTICES PRESCRIBED OR PERMITTED BY THE OFFICE OF THE COMMISSIONER OF INSURANCE OF THE STATE OF WISCONSIN, WHICH IS A BASIS OF ACCOUNTING OTHER THAN ACCOUNTING PRINCIPLES GENERALLY ACCEPTED IN THE UNITED STATES OF AMERICA. THE STATUTORY FINANCIAL STATEMENTS WERE ALSO AUDITED BY AN INDEPENDENT ACCOUNTANT, BUT WERE NOT USED TO PREPARE THE FORM 990. FORM 990, PART I LINE 4 & PART VI LINE 1B: CCHP IS A WISCONSIN NONSTOCK CORPORATION AND IS AN AFFILIATE OF CHHS, A TAX-EXEMPT WISCONSIN CORPORATION SERVING AS THE PARENT ENTITY OF AN INTEGRATED SYSTEM OF PROVIDER ORGANIZATIONS ADDRESSING THE HEALTH CARE NEEDS OF CHILDREN IN SOUTHEASTERN WISCONSIN, NORTHEASTERN WISCONSIN, AND SURROUNDING AREAS. AS THE CORPORATE MEMBER OF CCHP, CHHS HOLDS VARIOUS RESERVE POWERS IN RELATION TO CCHP, INCLUDING AUTHORITY TO APPOINT CCHP'S BOARD OF DIRECTORS. THE BOARD OF DIRECTORS OF CCHP CONSISTS OF REPRESENTATIVES OF CHHS'S EXECUTIVE LEADERSHIP IN ADDITION TO EIGHT EXTERNAL DIRECTORS. THESE EMPLOYED DIRECTORS MAY NOT BE CONSIDERED "INDEPENDENT" FOR PURPOSES OF FORM 990. HOWEVER, AS ACKNOWLEDGED BY THE IRS IN ITS CPE TEXT FOR FISCAL YEAR 1997, IN A MULTI-ENTITY HOSPITAL SYSTEM, THE BOARD OF A SUBSIDIARY NON-PROFIT HEALTH CARE ORGANIZATION IS CONSIDERED TO BE COMPRISED OF INDEPENDENT COMMUNITY MEMBERS IF IT IS CONTROLLED BY AN EXEMPT ORGANIZATION WHOSE BOARD IS COMPRISED OF A MAJORITY OF VOTING MEMBERS WHO ARE INDEPENDENT COMMUNITY MEMBERS. CCHP MEETS THIS STANDARD BECAUSE IT IS A CONTROLLED SUBSIDIARY OF CHHS, AND CHHS'S GOVERNING BOARD INCLUDES INDEPENDENT COMMUNITY MEMBERS AS A MAJORITY THEREOF. CHILDREN'S HOSPITAL & HEALTH SYSTEM INC PO BOX 1997 FINANCE DEPT MILWAUKEE WI 532011997 391500074 AMBULATORY SURGERY CTR, URGENT CARE, & OPERATIONAL SUPPT SVCS WI 501(C)(3) LINE 3 N/A 0 CHILDREN'S HOSPITAL OF WISCONSIN INC PO BOX 1997 FINANCE DEPT MILWAUKEE WI 532011997 390812532 PEDIATRIC HOSPITAL WI 501(C)(3) LINE 3 CHILDREN'S HOSPITAL & HEALTH SYSTEM INC 0 CHILDREN'S HOSPITAL OF WISCONSIN FOUNDATION INC PO BOX 1997 FINANCE DEPT MILWAUKEE WI 532011997 391500075 FUND DEVELOPMENT WI 501(C)(3) LINE 7 CHILDREN'S HOSPITAL & HEALTH SYSTEM INC 0 CHILDREN'S MEDICAL GROUP INC PO BOX 1997 FINANCE DEPT MILWAUKEE WI 532011997 391789197 PEDIATRIC PHYSICIAN SERVICES WI 501(C)(3) LINE 3 CHILDREN'S HOSPITAL & HEALTH SYSTEM INC 0 CHILDREN'S SERVICE SOCIETY OF WISCONSIN PO BOX 1997 FINANCE DEPT MILWAUKEE WI 532011997 390806380 CHILD WELFARE SERVICES WI 501(C)(3) LINE 7 CHILDREN'S HOSPITAL & HEALTH SYSTEM INC 0 CHILDREN'S SPECIALTY GROUP INC PO BOX 1997 FINANCE DEPT MILWAUKEE WI 532011997 391990012 PEDIATRIC PHYSICIAN SERVICES WI 501(C)(3) LINE 12A, I N/A 0 WEST ALLIS PRESCRIPTION CENTER INC 6737 W WASHINGTON ST STE 1100 WEST ALLIS WI 53214 463421597 PHARMACY WI N/A C 0 WAUWATOSA PRESCRIPTION CENTER INC SKYWALK PHARMACY 9000 W WISCONSIN AVE WAUWATOSA WI 53226 061654484 PHARMACY WI N/A C 0 0 1 0 0 0 0 0 0 0 0 0 1 1 0 0 1 0 1 0