2025-11-06T04:16:02-07:00 2024-12-31 135565207 KPMG LLP 500 W 5th Street Ste 800 Winston Salem NC 27101 990 2024-01-01 463160718 NEMOURS NEW JERSEY PHYSICIAN PRACTICE PC NEMO 9046974100 1801 Rockland Road Wilmington DE 19803 William W Higginbotham II Treasurer 9046974100 2025-11-10 1 1 Brian Kearns P02061479 3364337102 2025-11-05 2024 2025-03-06 01:10:19Z Meg Frizzola DO 1801 Rockland Road Wilmington DE 19803 18612256 0 8516 X www.nemours.org X 2014 NJ Nemours New Jersey Physician Practice PC (NJPP) purpose is to provide services to restore and improve the health of children in the State of New Jersey, with one high standard of quality and regardless of the recipient's financial status. 1 0 0 3 0 0 0 0 9568596 10118601 -529617 -94717 5441574 8493655 14480553 18517539 2500 0 0 0 14621268 13492024 0 0 0 2277777 4310246 16901545 17802270 -2420992 715269 2872915 2783297 39834500 1846597 -36961585 936700 NJPP's mission is to provide services to restore and improve the health of children in the State of New Jersey, with one high standard of quality and regardless of the recipient's financial status. 0 0 17773531 0 18612256 To engage in activities relating to the aforementioned purposes; and to invest in, receive, hold, use and dispose of all property real or personal, as may be necessary or desirable to carry into effect the aforementioned purposes. Specifically, NJPP is organized and shall at all times be operated exclusively to support and further the mission of its sole member, (The Nemours Foundation, EIN 59-0634433, ("Nemours"), an IRC section 501(c)(3) charitable IRC section 170(b)(1)(A)(iii) health care organization), through the provision of health care to the community. 0 0 0 17773531 1 0 0 0 0 0 0 0 0 0 1 0 0 0 0 1 0 1 0 0 0 0 0 0 0 0 0 0 0 1 0 0 0 0 0 0 0 0 0 0 0 0 0 1 0 0 0 1 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 X 1 0 1 1 0 0 1 1 1 1 1 0 0 1 1 1 1 1 1 1 1 0 NJ X William W Higginbotham II 9046974100 10140 Centurion Parkway North Jacksonville FL 32256 Meg Frizzola DO President and Director 1 40 X X 0 815018 90074 Laura Kowal Secretary (End Apr '20) 0 44 X 0 792211 109543 William W Higginbotham II Treasurer 1 47 X 0 552507 97924 Mary Lee MD President & Director (End Apr '23) 0 0 X 0 640758 0 Meghan Livingston Secretary 1 40 X 0 342248 28373 0 3142742 325914 0 1 1 0 0 0 0 0 0 0 0 0 0 Gross Patient Revenue 621110 64528944 64528944 0 0 Patient deductions 621110 -54047042 -54047042 0 0 Provision for bad debts 621110 -363301 -363301 0 0 0 0 0 0 10118601 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 94717 0 -94717 -94717 0 0 -94717 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Specialized services 900099 3112959 3112959 0 0 5380696 5380696 0 0 8493655 18517539 18612256 0 -94717 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 11405575 11405575 0 0 591170 591170 0 0 853567 853567 0 0 641712 641712 0 0 0 0 0 0 5450 5450 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 58320 52975 5345 0 0 0 0 0 136287 136287 0 0 14247 10847 3400 0 0 0 0 0 61105 61105 0 0 26252 26252 0 0 0 0 0 0 20635 20635 0 0 0 0 0 0 0 0 0 0 60319 60319 0 0 1254067 1254067 0 0 Shared Services 2636973 2636973 0 0 36591 16597 19994 0 17802270 17773531 28739 0 300 300 0 0 8342 8171 2511655 2519766 0 0 0 0 0 0 0 0 0 0 1659391 1404331 197783 255060 0 0 0 0 0 0 0 0 154835 0 2872915 2783297 2491284 1838426 0 0 8171 8171 0 0 0 0 0 0 0 0 0 0 37335045 0 39834500 1846597 X -36961585 936700 0 0 -36961585 936700 2872915 2783297 X 715269 0 0 0 0 37183016 X X 0 1 X 1 0 X 241530 0 1990028 0 0 2231558 6172922 7669887 9560753 15010170 18612256 57025988 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 6414452 7669887 11550781 15010170 18612256 59257546 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 59257546 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 6414452 7669887 11550781 15010170 18612256 59257546 1 1 0 0 X 0 0 0 0 0 0 0 0 0 0 0 0 1659391 1404331 255060 0 0 0 0 255060 0 0 X Schedule D, Part X, Line 2 Per the Nemours consolidated audited financial statements footnote 2(q), Nemours, Nemours New Jersey Physician Practice PC (NJPP), Pediatric Medical Services of Florida Inc (PMSI), Delaware Children's Health Network (DCHN), and Cruden Bay Retention Group (CBRRG) are exempt from federal income taxes on related income under Section 501(a) of the Internal Revenue Code as organizations described in Section 501(c)(3), and are also exempt from state income taxes. Dornoch-Sutherland Assurance, Ltd. (DSAL) is exempted through 2042 from all local income, profit or capital gains taxes under the Cayman Islands Tax Concessions Law. Management believes that the unrelated business income generated by Nemours is not material to the combined financial statements. X 1 1 1 1 0 0 0 0 0 0 0 Meg Frizzola DO President and Director 0 614043 0 168822 0 32153 0 47769 0 42305 0 905092 0 0 Laura Kowal Secretary (End Apr '20) 0 579031 0 165768 0 47412 0 63603 0 45940 0 901754 0 21203 William W Higginbotham II Treasurer 0 374554 0 127635 0 50318 0 42840 0 55084 0 650431 0 48495 Mary Lee MD President & Director (End Apr '23) 0 0 0 0 0 640758 0 0 0 0 0 640758 0 0 Meghan Livingston Secretary 0 286312 0 50436 0 5500 0 0 0 28373 0 370621 0 0 Schedule J, Part I, Line 1a Nemours has established and NJPP has adopted a policy for the reimbursement of travel and related expenses incurred by its employees. All transportation and travel arrangements shall be the most economical under the circumstances. Excursion or coach fares shall be ordered whenever available. Approval shall be required for any other class of travel. Each department has the right to limit travel expenditures based on budgetary restrictions and may limit coverage to certain categories of travel expense. First class travel may occur in situations for Nemours employees wherein other fares are not available or travel is for a long period of time or overseas. Board members also have the option of traveling first class under certain conditions in accordance with Nemours policy. Schedule J, Part I, Line 4 The following associate received severance payments paid by Nemours in 2024: Mary Lee MD (640,758). The Nemours Foundation maintained a Supplemental Executive Retirement Plan ("SERP") for a select group of management or highly compensated employees as determined by the Board of Directors. The SERP was adopted in order to provide certain key employees with non-qualified deferred compensation benefits subject to IRC section 457(f) in recognition of the services they provide. The Nemours Foundation makes discretionary contributions to the plan and may amend or terminate the plan at any time. Participants receiving distributions in 2024 include: William W. Higginbotham II (48,495) and Laura Kowal (21,203). Form 990, Part VI, Section A, Line 1a Nemours, a Florida nonprofit corporation, dba Nemours Children's Health System, provides world-class pediatric medical care to children in Florida, Delaware, Pennsylvania, and New Jersey. Because the State of New Jersey has a prohibition on the corporate practice of medicine under New Jersey state statutes and guidelines issued by the New Jersey Board of Medical Examiners (See, for e.g., N.J.S.A. 45:9-5.1), NJPP, a separate New Jersey professional corporation wholly controlled by Nemours was incorporated in order to provide pediatric specialty outpatient care to children in New Jersey. The Internal Revenue Service has recognized that professional corporations established in those states with a corporate practice of medicine doctrine, like New Jersey, could qualify as a federal income tax-exempt charitable organization under Section 501(c)(3) of the Internal Revenue Code. See "Corporate Practice of Medicine" by Charles F. Kaiser III and Marvin Friedlander, Internal Revenue Service TE/GE CPE Manual 2000-F ("Manual"). NJPP has received Section 501(c)(3) tax-exempt status as a charitable, educational and scientific organization under the "integral part" doctrine as NJPP is performing an essential function for Nemours, i.e., the provision of specialty outpatient medical services to children in New Jersey which services Nemours would otherwise provide directly, if New Jersey did not have the corporate practice of medicine doctrine. The Certificate of Incorporation of NJPP, on page 1, Article 2, expressly states that the Corporation is organized to engage in the business of rendering professional services to the public that a Doctor of Medicine or Osteopathy is authorized to render and will be organized and operated exclusively for charitable, educational and scientific purposes within the meaning of Section 501(c)(3) of the Internal Revenue Code of 1986, as amended (the "Code") and to further the charitable purposes of Nemours and its divisions, including but not limited to the Nemours and Nemours Children's Hospital, Delaware. The Certificate of Incorporation of NJPP on page 2, Article 4, paragraph (d) also provides for distribution of the assets of NJPP upon dissolution to Nemours and not to any shareholder. NJPP has issued all of its shares of stock (100 common shares as authorized in Section 4 of the Certificate of Incorporation of Nemours NJ) to Meg Frizzola DO, a physician licensed to practice medicine in New Jersey to comply with the corporate practice of medicine doctrine. Dr. Frizzola is the sole Director and President of NJPP and the Chief Medical Officer for Delaware Valley. Under New Jersey's corporate practice of medicine prohibition, only New Jersey licensed physicians can serve as shareholders and directors of the professional corporation which is providing medical services. Accordingly, NJPP only has one Board member and one Voting Board member. However, safeguards have been put in place in the corporate documents and policies of NJPP and in the Stock Succession and Transfer Agreement (described below) and Management Services Agreement (described below) to ensure control of NJPP by Nemours. Form 990, Part VI, Section A, Line 2 Dr. Frizzola, Mr. Higginbotham, and Ms. Livingston have a shared business relationship. All are employees of Nemours. Form 990, Part VI, Section A, Line 3 Nemours is an IRC section 501(c)(3) charitable organization recognized by the IRS as a hospital under IRC section 170(b)(1)(A)(iii). Nemours provides comprehensive management services, administrative personnel, office space, equipment, supplies and non-professional services to NJPP under the Management Services Agreement between NJPP and Nemours, as manager. Nemours conducts all of the administrative and business functions for the NJPP at all locations operated by NJPP. By the provisions of the Management Services Agreement, Nemours has effective control over the operations of NJPP. Form 990, Part VI, Section A, Line 6 NJPP has a close connection with Nemours and Nemours has control over NJPP. The Certificate of Incorporation of NJPP expressly states that the Corporation is organized to engage in the business of rendering professional services to the public that a Doctor of Medicine or Osteopathy is authorized to render and will be organized and operated exclusively for charitable, educational and scientific purposes within the meaning of Section 501(c)(3) of the Internal Revenue Code of 1986, as amended (the "Code") and to further the charitable purposes of Nemours and its divisions, including but not limited to the Nemours and Nemours Children's Hospital, Delaware. The inclusion of the Section 501(c)(3) language in the Certificate of Incorporation is not contrary to or incompatible with the language of or the intent of the New Jersey Professional Service Corporation Act, N.J.S.A. §14A-17.1 et seq. The Certificate of lncorporation of NJPP also provides for distribution of the assets of NJPP upon dissolution to Nemours and not to any shareholder. Dr. Frizzola is the sole Director and President of NJPP and the Chief Medical Officer for Delaware Valley. Under New Jersey's corporate practice of medicine prohibition, only New Jersey licensed physicians can serve as shareholders and directors of the professional corporation which is providing medical services. However, several safeguards have been put in place in the corporate documents and policies of NJPP and in the Stock Succession and Transfer Agreement and Management Services Agreement to assure control of NJPP by Nemours. Form 990, Part VI, Section A, Line 7a See explanation under Form 990, Part VI, Section A, Line 6. Form 990, Part VI, Section A, Line 7b See explanation under Form 990, Part VI, Section A, Line 6. Form 990, Part VI, Section B, Line 11b Nemours management reviewed a draft of the Form 990 prior to filing. Upon finalization of the return, Management provided a final copy of the return, via email, to the sole director prior to filing with the IRS. Form 990, Part VI, Section B, Line 12c NJPP has reviewed and adopted the conflict of interest policy established by Nemours. Nemours is committed to the belief that sound business practices start with an absolute commitment from each employee to act ethically in carrying out Nemours business, and to comply with the laws and regulations that impact its business, thus Nemours' employees must avoid participating in activities that create or appear to create a conflict of interest. Nemours has specifically identified the following areas in its policy to be potential conflicts of interest: financial interest, outside employment, paid faculty arrangements, consultant or research contracts, acceptance of gifts, gratuities, business courtesies, travel, lodging and entertainment, misuse of resources or assets, personal gain using undue influence, direct dealings with vendors, use of confidential information, and an individual's support of political causes. Nemours' policy requires certain individuals to disclose participation in activities or circumstances that may present a conflict of interest on an annual basis or if at any time such individual becomes aware of circumstances that may present a conflict of interest. These disclosures are reviewed by the Nemours Finance, Audit, and Compliance Committee, as necessary. Form 990, Part VI, Section B, Line 15 Nemours Board of Directors designated the People, Engagement and Compensation Committee (the Committee) to serve as the board committee responsible for establishing compensation practices to assure that executive compensation is reasonable and does not violate the private inurement prohibition. The practices and processes are designed to provide market-competitive compensation, to enable the board to exercise good governance oversight, and to use a review and approval process that will qualify for the rebuttable presumption of reasonableness under the federal tax law rules. The Committee annually reviews, in consultation with an independent executive compensation consulting firm specializing in healthcare and the not-for-profit industry, independently sourced benchmark market data to establish the compensation of officers, senior leadership and key employees and to align compensation with the compensation practices of organizations similar to Nemours. The Committee has established, and reference, a compensation philosophy statement for senior leaders that articulates the goals of the executive compensation program, the peer group used for compensation decisions, and the targeted market position. The Board of Directors determined and approves the compensation for the CEO using the same IRS-approved rebuttable presumption process as The Committee. To indicate alignment with the compensation practices of organizations similar to Nemours, the compensation philosophy targets the market median for executives, including officers, senior leadership and key employees. Total cash compensation is also generally targeted to be at the median of Nemours' peers. Form 990, Part VI, Section C, Line 19 NJPP's governing documents and conflict of interest policy are included in NJPP's Form 1023, which is available for public disclosure. Form 990, Part XI, Line 9 Other changes in net assets includes a payable to Nemours of $37,183,016. Form 990, Part XII, Line 2c NJPP is consolidated in the Nemours audited financial statements. The Nemours Finance, Audit, and Compliance Committee is responsible for the selection of the independent auditors and has oversight of the audit. The Nemours Foundation (Nemours) 10140 Centurion Parkway North Jacksonville FL 32256 590634433 Healthcare FL 501(c)(3) 170(b)(1)(A)(iii) N/A 0 Cruden Bay Risk Retention Group 135 Allen Brook Lane Suite 101 Williston VT 05495 270057453 Risk Retention VT 501(c)(3) 509(a)(3) - Type 1 The Nemours Foundation 0 Pediatric Medical Services of Florida Inc 10140 Centurion Parkway North Jacksonville FL 32256 453584225 Healthcare FL 501(c)(3) 509(a)(2) The Nemours Foundation 0 Alfred I duPont Charitable Trust 510 Alfred Dupont Place Jacksonville FL 32202 590226560 Charitable Trust FL 501(c)(3) 509(a)(3) N/A 0 Alfred I duPont Trust UA 510 Alfred duPont Place Jacksonville FL 32202 596122734 Foundation FL 501(c)(3) PF Alfred I duPont Charitable Trust 0 JMK MK Side Car LP 20 Fernwood Rd Summit NJ 07901 832986453 Investments NY Alfred I duPont Charitable Trust Excluded 0 0 0 0 0 0 Sprints Capital Flint LP East Wing Trafalgar Court Les Banques St Peter Port GK GYI 3PP Investments GK Alfred I duPont Charitable Trust Excluded 0 0 0 0 0 0 Blue Owl AIF Co-Investment Fund 399 Park Ave 37th Fl New York NY 10022 932752137 Investments NY Alfred I duPont Charitable Trust Excluded 0 0 0 0 0 0 Dendur Opportunity Fund II LP 250 W 55th St 26th Fl New York NY 10019 874598922 Investments NY Alfred I duPont Charitable Trust Excluded 0 0 0 0 0 0 Parsifal Co-Invest I LP 1 Fawcett Pl Ste 120 Greenwich CT 06830 861249891 Investments CT Alfred I duPont Charitable Trust Excluded 0 0 0 0 0 0 Sabal Fund LP 75 State St 31St Fl Boston MA 02109 820646769 Investments MA Alfred I duPont Charitable Fund Excluded 0 0 0 0 0 0 Neuberger Berman Short Duration Emerging Market Debt Fund LLC 190 South LaSalle Street Ste 2400 Chicago IL 60603 472100194 Investments IL The Nemours Foundation Excluded 0 0 0 0 0 0 Dornoch Sutherland Assurance LTD PO BOX 1085 GT Grand Cayman CJ KY1-1102 980404800 Captive Insurance CJ The Nemours Foundation C 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1 0 1 The return is being filed on a timely basis. The organization filed extension on a timely basis. Accordingly, the return was properly extended and is now being filed timely by its extended due date of November 17, 2025.