2025-07-10T16:40:58+00:00 2024-08-31 346565596 ERNST & YOUNG US LLP 155 N WACKER DRIVE CHICAGO IL 60606 990 2023-09-01 363279680 Pediatric Faculty Foundation Inc PEDI 3122277133 225 E CHICAGO AVE BOX 282 CHICAGO IL 606112991 ALEX P MILLER SVP, CHIEF FINANCIAL OFFICER 3122277133 2025-07-10 true true Emily Upstrom P01765498 3128792000 2025-07-08 2023 2025-03-06 01:10:19Z ESTELLA ALONSO MD 225 E CHICAGO AVE BOX 282 CHICAGO IL 606112991 267533084 false X WWW.LURIECHILDRENS.ORG X 1984 IL SEE SCHEDULE O. 5 3 693 3 0 0 64839908 60214300 204198938 207318784 0 0 269038846 267533084 0 0 190105750 204730706 0 0 60451390 58729227 250557140 263459933 18481706 4073151 26312850 26998201 32027843 28640043 -5714993 -1641842 WE VALUE EXCELLENCE AND INNOVATION IN CLINICAL AND BASIC RESEARCH, COORDINATED AND COMPREHENSIVE PATIENT CARE, ONGOING PHYSICIAN EDUCATION, AND EVIDENCE-BASED CHILD ADVOCACY. 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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 Through 12/14/23 1.0 2.0 X 0 0 0 Thomas P Shanley MD Ex-Officio Director/President & CEO LCH 1.0 46.0 X 0 1901209 631672 Alex P Miller SVP, Chief Financial Officer 1.0 46.0 X 0 701490 43308 Fatema Zanzi EVP, Chief Admin & Legal Officer, Corp Sec (begin 01/09/24) 1.0 46.0 X 0 726640 149202 Annette M Wagner MD Physician 40.0 0 X 640374 0 71534 Derek S Wheeler MD EVP, Chief Operating Officer (Begin 01/09/24) 40.0 1.0 X 864411 0 185178 Jeffrey L Loughead MD Physician/Medical Director 40.0 0 X 596161 0 72779 Kenneth M Brady MD Physician Through 12/1/23 40.0 0 X 603670 0 71233 Patrick Seed MD PhD Physician 40.0 1.0 X 567594 0 71534 Brenda Davis Former Interim Chief Financial Officer Through 2/6/23 0.0 41.0 X 0 370034 32383 4256145 3699373 1400908 525 false true false 0 0 0 0 60214300 0 0 0 60214300 PATIENT SERVICE REVENUE 621111 108437422 108437422 PHYS CONTRACT REVENUE 621111 31842589 31842589 MEDICARE/MEDICAID PYMTS 621111 29068302 29068302 MED ADMIN AND EDUCATION 621111 15058856 15058856 PROF SVCS TO RSCH 621111 22911615 22911615 0 0 0 0 207318784 0 0 0 0 0 0 0 0 0 267533084 207318784 0 0 674202 674202 167621102 164557059 3064043 36435402 36435402 0 0 43906 13906 30000 366402 252659 113743 0 12620 12620 106668 106668 44532 38315 6217 4819652 4819652 393303 381607 11696 1142897 1142480 417 14803417 14803417 PATIENT EXPENSES 12220967 12220967 BILLING & COLLECTION 10515148 10515148 BAD DEBT EXPENSE 6733283 6733283 PLAN TAX 5631211 5631211 1895221 1851113 44108 0 263459933 260189709 3270224 0 26310045 26908254 0 0 0 0 2805 89947 0 0 0 0 0 0 0 0 26312850 26998201 32027843 28640043 0 0 0 0 32027843 28640043 X -5714993 -1641842 -5714993 -1641842 26312850 26998201 4073151 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 48679869 48279971 28048179 64839908 60214300 250062227 155068202 175940716 186336911 204198938 207318784 928863551 0 0 0 203748071 224220687 214385090 269038846 267533084 1178925778 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1178925778 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 203748071 224220687 214385090 269038846 267533084 1178925778 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 Estella Alonso MD Ex-Officio Director Begin 10/13/23/Interim Chair 411133 0 68460 0 1058 0 33000 0 6085 0 519736 0 0 0 Matthew Davis MD Ex-Officio Director Through 10/12/23/President and Chair 502847 0 0 0 437 0 33000 0 0 0 536284 0 0 0 Thomas P Shanley MD Ex-Officio Director/President & CEO LCH 0 1161265 0 573513 0 166431 0 596393 0 35279 0 2532881 0 0 Brenda Davis Former Interim Chief Financial Officer Through 2/6/23 0 305869 0 62909 0 1256 0 15629 0 16754 0 402417 0 0 Fatema Zanzi EVP, Chief Admin & Legal Officer, Corp Sec (begin 01/09/24) 0 512206 0 213651 0 783 0 145228 0 3974 0 875842 0 0 Alex P Miller SVP, Chief Financial Officer 0 480682 0 220304 0 504 0 16500 0 26808 0 744798 0 0 Derek S Wheeler MD EVP, Chief Operating Officer (Begin 01/09/24) 612529 0 251100 0 782 0 156087 0 29091 0 1049589 0 0 0 Kenneth M Brady MD Physician Through 12/1/23 601674 0 1500 0 496 0 33000 0 38233 0 674903 0 0 0 Annette M Wagner MD Physician 369525 0 270057 0 792 0 33000 0 38534 0 711908 0 0 0 Patrick Seed MD PhD Physician 450378 0 116700 0 516 0 33000 0 38534 0 639128 0 0 0 Jeffrey L Loughead MD Physician/Medical Director 544599 0 50038 0 1524 0 33000 0 39779 0 668940 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 INDIVIDUAL PARTICIPATED IN THE DC SERP AND RECEIVED A VESTED PAYMENT DURING 2023 WHICH IS REPORTED IN COLUMN B (III): THOMAS P. SHANLEY, MD $162,149 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 2023) 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 2023 FORM 990 OF LURIE CHILDREN'S, FEIN 36-2170833. ALEX P. MILLER BRENDA DAVIS FATEMA ZANZI 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. 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 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 15 EXECUTIVE COMPENSATION 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 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 OTHER KEY EMPLOYEES 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 THE MEDICAL CENTER BOARD'S NOMINATING AND GOVERNANCE COMMITTEE. BOARD MEMBERS, SENIOR MANAGEMENT, AND KEY EMPLOYEES ARE SUBJECT TO AN APPLICABLE MEDICAL CENTER CONFLICT OF INTEREST POLICY AND TO A CODE OF CONDUCT, WHICH INCLUDES THE ONGOING RESPONSIBILITY TO PROMPTLY DISCLOSE CONFLICTS OF INTERESTS OR DUALITY OF INTERESTS TO A DESIGNATED INDIVIDUAL(S). DISCLOSURES ARE PROVIDED TO THE NOMINATING AND GOVERNANCE COMMITTEE OF THE MEDICAL CENTER BOARD OF DIRECTORS, WHICH CONSIDERS ALL CONFLICT AND DUALITY OF INTERESTS ISSUES. IF THE DISINTERESTED MEMBERS OF THE NOMINATING AND GOVERNANCE COMMITTEE HAVE DETERMINED THAT A POTENTIAL OR ACTUAL CONFLICT OF INTEREST OR DUALITY OF INTEREST EXISTS, THE NOMINATING AND GOVERNANCE COMMITTEE SHALL DETERMINE IF PREPARATION OF CONFLICTS MANAGEMENT GUIDELINES WILL SUFFICIENTLY MITIGATE THE POTENTIAL OR ACTUAL CONFLICT OF INTEREST AND/OR DUALITY OF INTEREST. IF THE NOMINATING AND GOVERNANCE COMMITTEE DETERMINES THAT CONFLICTS MANAGEMENT GUIDELINES WILL SUFFICIENTLY MITIGATE THE POTENTIAL OR ACTUAL CONFLICT OF INTEREST AND/OR DUALITY OF INTEREST, THE CHIEF LEGAL OFFICER WILL PREPARE SAID CONFLICTS MANAGEMENT GUIDELINES REGARDING THE PARTICULAR PERSON'S POTENTIAL OR ACTUAL CONFLICT OF INTEREST AND/OR DUALITY OF INTEREST FOR REVIEW, APPROVAL, AND OVERSIGHT BY THE NOMINATING AND GOVERNANCE COMMITTEE. THE CHIEF LEGAL OFFICER SHARES THE CONFLICT MANAGEMENT GUIDELINES WITH THE APPLICABLE PERSON FOLLOWING APPROVAL BY THE NOMINATING AND GOVERNANCE COMMITTEE. THE CONFLICTS MANAGEMENT GUIDELINES MAY REQUIRE ANY OR ALL OF THE ASPECTS BELOW. 1. THE RELEVANT PERSON SHALL RECUSE THEMSELVES FROM ALL OR A PORTION OF THE MEETING OF THE BOARD OR COMMITTEE ON WHICH THE PERSON SERVES WHILE THE PROPOSED CONTRACT, TRANSACTION, OR ARRANGEMENT GIVING RISE TO THE CONFLICT OF INTEREST AND/OR THE SITUATION GIVING RISE TO A DUALITY OF INTEREST IS DISCUSSED. IN ADDITION, THE PERSON SHALL RECUSE THEMSELVES FROM ALL OR A PORTION OF THE MEETING OF THE BOARD OR COMMITTEE ON WHICH THE PERSON SERVES WHILE THE MATTER IS VOTED ON, AND ONLY DISINTERESTED DIRECTORS OR COMMITTEE MEMBERS, AS THE CASE MAY BE, MAY VOTE TO DETERMINE WHETHER TO APPROVE THE CONTRACT, TRANSACTION, ARRANGEMENT, OR SITUATION GIVING RISE TO THE CONFLICT OF INTEREST OR DUALITY OF INTEREST. IN DETERMINING WHETHER AND WHEN TO REQUIRE THE PERSON TO RECUSE THEMSELVES DURING DISCUSSION OF THE PROPOSED CONTRACT, TRANSACTION, OR ARRANGEMENT GIVING RISE TO THE CONFLICT OF INTEREST AND/OR THE SITUATION GIVING RISE TO A DUALITY OF INTEREST, THE DISINTERESTED BOARD DIRECTORS OR COMMITTEE MEMBERS, AS THE CASE MAY BE, SHALL BALANCE THE NEED TO FACILITATE THE DISCUSSION BY HAVING SUCH PERSON ON HAND TO PROVIDE ADDITIONAL INFORMATION WITH THE NEED TO PRESERVE THE INDEPENDENCE OF THE DETERMINATION PROCESS. 2. WITH RESPECT TO A CONFLICT OF INTEREST OR DUALITY OF INTEREST, THE DISINTERESTED MEMBERS OF THE NOMINATING AND GOVERNANCE COMMITTEE SHALL EXERCISE DUE DILIGENCE TO DETERMINE WHETHER THE CONTRACT, TRANSACTION, OR ARRANGEMENT PRESENTED BY THE CONFLICT OF INTEREST OR DUALITY OF INTEREST IS FAIR AND REASONABLE AND IN THE BEST INTEREST TO THE CORPORATION. IN REACHING SUCH DETERMINATION, THE NOMINATING AND GOVERNANCE COMMITTEE SHALL DETERMINE WHETHER THERE ARE ALTERNATIVES TO THE PROPOSED CONTRACT, TRANSACTION OR ARRANGEMENT THAT WOULD NOT GIVE RISE TO A CONFLICT OF INTEREST OR DUALITY OF INTEREST. IF A MORE ADVANTAGEOUS CONTRACT, TRANSACTION, OR ARRANGEMENT THAT WOULD NOT GIVE RISE TO A CONFLICT OF INTEREST OR DUALITY OF INTEREST IS NOT REASONABLY ATTAINABLE UNDER THE CIRCUMSTANCES, THE DISINTERESTED MEMBERS OF THE NOMINATING AND GOVERNANCE COMMITTEE MUST DETERMINE BY A MAJORITY VOTE THAT THE CONTRACT, TRANSACTION, OR ARRANGEMENT PRESENTED BY THE CONFLICT OF INTEREST OR DUALITY OF INTEREST IS FAIR AND REASONABLE AND IN THE BEST INTEREST TO THE CORPORATION BEFORE SUCH CONTRACT, TRANSACTION, OR ARRANGEMENT MAY BE APPROVED FOR EXECUTION BY THE BOARD OF DIRECTORS OF ITS EXECUTIVE COMMITTEE. IF THE NOMINATING AND GOVERNANCE COMMITTEE DETERMINES THAT CONFLICTS MANAGEMENT GUIDELINES WILL NOT SUFFICIENTLY MITIGATE THE POTENTIAL OR ACTUAL CONFLICT OF INTEREST AND/OR DUALITY OF INTEREST, THE NOMINATING AND GOVERNANCE COMMITTEE SHALL DETERMINE THE APPROPRIATE STEPS. THE CHIEF LEGAL OFFICER SHARES THE NOMINATING AND GOVERNANCE COMMITTEE'S DECISION WITH THE APPLICABLE PERSON FOLLOWING APPROVAL BY THE NOMINATING AND GOVERNANCE COMMITTEE. 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 VIII, Line 2f Other Program Service Revenue - Total Revenue: , Related or Exempt Function Revenue: , Unrelated Business Revenue: , Revenue Excluded from Tax Under Sections 512, 513, or 514: ; 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 false true false false false false false false false true false false false true true false false true