2022-07-13T11:43:25-05:00 2021-08-31 ERNST & YOUNG US LLP 155 N Wacker Drive Chicago IL 60606 990 2020-09-01 831650513 Lurie Children's Surgical Foundation Inc % BRENDA DAVIS LURI 3122277133 225 E CHICAGO AVE BOX 282 Chicago IL 606112991 BRENDA DAVIS INTERIM SR. VP/CFO 3122277133 2022-07-12 true BRENDA DAVIS 999009999 JESS WAGENER P01622613 3128792000 2 2020 2022-09-23 18:48:47Z Erik C King MD 225 E CHICAGO AVE BOX 282 CHICAGO IL 606112991 87288545 false X www.luriechildrens.org X 2018 IL PROVIDE PEDIATRIC AND SUBSPECIALTY SURGICAL, RESEARCH, AND EDUCATIONAL SERVICES. 9 2 81 2 0 0 22311077 26084341 53639532 61204204 0 0 0 0 75950609 87288545 0 0 0 0 65700447 68600711 0 0 0 18238997 21084474 83939444 89685185 -7988835 -2396640 9457594 8407357 9320148 8221530 137446 185827 X PROVIDE PEDIATRIC AND SUBSPECIALTY SURGICAL, RESEARCH, AND EDUCATIONAL SERVICES. false false 87333821 0 61204204 LURIE CHILDREN'S SURGICAL FOUNDATION, INC. ("LCSF") IS AN ILLINOIS NOT FOR PROFIT CORPORATION AND AN ORGANIZATION DESCRIBED UNDER SECTION 501(C)(3) OF THE CODE. ON JANUARY 1, 2019, CHILDREN'S HOSPITAL OF CHICAGO MEDICAL CENTER ("PARENT") (FEIN 36-3357004) BECAME THE SOLE CORPORATE MEMBER OF LCSF. LCSF EMPLOYS PEDIATRIC SURGICAL SPECIALISTS AND SUBSPECIALISTS. SUCH PHYSICIANS ARE BASED AND PRACTICE AT ANN & ROBERT H. LURIE CHILDREN'S HOSPITAL OF CHICAGO ("LURIE CHILDREN'S"), ANOTHER AFFILIATED ENTITY OF LCSF, 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. LCSF EMPLOYS PEDIATRIC SURGICAL SPECIALISTS AND SUBSPECIALISTS WHO PROVIDE SURGICAL SERVICES TO PATIENTS OF LURIE CHILDREN'S IN THE AREAS OF CARDIAC SURGERY, FETAL SURGERY, NEUROSURGERY, OPHTHALMOLOGY, ORTHOPAEDICS, OTOLARYNGOLOGY, PEDIATRIC SURGERY, PLASTIC SURGERY, TRANSPLANT SURGERY, AND UROLOGY. LCSF SURGEONS PERFORMED OVER 15,000 SURGICAL PROCEDURES DURING THE TWELVE MONTHS ENDED AUGUST 31, 2021. LCSF 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. 0 0 0 87333821 true true false false false false false false false false false false false true true 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 0 0 81 true false false false false false false false false false false false false X 9 2 false false false false true true true true true false false true true true true true true false false false IL X BRENDA DAVIS 3122277133 225 E CHICAGO AVE CHICAGO IL 606112991 X Joseph M Forbess MD Physician 40.0 0.0 X 1549525 0 37500 Thomas P Shanley MD Ex-Officio Director/LCH CEO 1.0 45.0 X 0 1308983 255824 Fizan Abdullah MD Physician 40.0 0.0 X 1014265 0 137500 Marleta Reynolds MD Ex-Officio Director/Physician 40.0 5.0 X 983705 0 37500 Sandi K Lam MD Physician 40.0 0.0 X 978506 0 37500 Arthur J Di Patri Jr MD Physician 40.0 0.0 X 946809 0 37500 Tord D Alden MD Physician 40.0 0.0 X 945117 0 37500 Ron Blaustein Chief Financial Officer 1.0 46.0 X 0 683008 173903 John J Grayhack MD Director/Physician 40.0 0.0 X 742493 0 37500 Erik C King MD Director/Chair/President/Phys 40.0 3.0 X X 706765 0 37500 Anthony Chin MD Director/Treasurer/Physician 40.0 0.0 X 693314 0 44500 Bruce Lindgren MD Director/Vice Chr/VP/Physician 40.0 0.0 X X 661375 0 37500 Fatema Zanzi SENIOR VP, CHF LEGAL OFFICER 1.0 46.0 X 0 501385 68569 John Maddalozzo MD Director/Board Sec/Physician 40.0 0.0 X 507231 0 37500 John N Hourihane Jr Director 1.0 0.0 X 0 0 0 Andrea Pipitone Beirne Director 1.0 0.0 X 0 0 0 9729105 2493376 1017796 81 false true false REVENUE INTEGRITY MANAGEMENT SERVIC 737 N MICHIGAN AVE SUITE 1650 CHICAGO IL 60611 BILLING SERVICES 2225603 NORTHWESTERN MEMORIAL HOSPITAL 541 N FAIRBANKS COURT STE 1600 CHICAGO IL 60611 Physician Services 643598 NORTHWESTERN MEDICAL GROUP 676 N ST CLAIR CHICAGO IL 60611 Physician Services 563238 WOMEN'S HEALTH CONSULTANTS SC 58 E Walton St CHCIAGO IL 60612 Physician Services 267544 REHABILITATION INSTITUTE 355 E Erie CHICAGO IL 60611 Physician Services 132229 5 25672720 411621 26084341 PATIENT SERVICE REVENUE 621111 50101395 50101395 PHYSICIAN CONTRACT 621111 6568128 6568128 MED ADMIN AND EDUCATION 621111 3847417 3847417 OTHER PROGRAM SERVICE REVENUE 621111 687264 687264 61204204 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 87288545 61204204 0 0 0 0 0 0 4587305 4425349 161956 0 51627557 49804828 1822729 3815136 3785028 30108 6662446 6572519 89927 1908267 1885078 23189 0 0 19200 19200 0 0 0 2985327 2947815 37512 55706 55706 60473 59685 788 31520 31372 148 0 3787709 3670009 117700 57780 54356 3424 0 27374 27374 0 0 0 5806555 5806555 BAD DEBT EXPENSE 3002075 3002075 BILLING COLLECTION FEES 2471088 2471088 PATIENT EXPENSES 1917074 1917074 MEDICAL SUPPLIES 459143 459143 403450 395273 8177 89685185 87333821 2351364 0 0 0 0 0 0 0 9161193 7679761 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 296401 727596 9457594 8407357 2865181 3826448 0 0 0 0 0 0 0 0 0 0 0 0 0 0 6454967 4395082 9320148 8221530 X 137446 185827 0 0 137446 185827 9457594 8407357 X -2396640 2445021 X false true X true false X SUPPLEMENTAL INFORMATION DISCLOSURE FOR NOT FILING SCHEDULE H LCSF DOES NOT FILE A SCHEDULE H EVEN THOUGH THE ENTITY MARKS THE HOSPITAL BOX IN SCHEDULE A BECAUSE IT IS NOT REQUIRED TO BE LICENSED, REGISTERED OR SIMILARLY RECOGNIZED BY THE STATE AS A HOSPITAL. RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED OTHER RECEIVABLES 727596 727596 0 PENSION LIABILITY 4395082 4395082 false true false false true false false false false Marleta Reynolds MD Ex-Officio Director/Physician 983705 0 0 0 0 0 37500 0 0 0 1021205 0 0 0 Anthony Chin MD Director/Treasurer/Physician 693314 0 0 0 0 0 37500 0 7000 0 737814 0 0 0 John J Grayhack MD Director/Physician 742493 0 0 0 0 0 37500 0 0 0 779993 0 0 0 Erik C King MD Director/Chair/President/Phys 706765 0 0 0 0 0 37500 0 0 0 744265 0 0 0 Bruce Lindgren MD Director/Vice Chr/VP/Physician 661375 0 0 0 0 0 37500 0 0 0 698875 0 0 0 John Maddalozzo MD Director/Board Sec/Physician 507231 0 0 0 0 0 37500 0 0 0 544731 0 0 0 Ron Blaustein Chief Financial Officer 0 469832 0 212417 0 759 0 141231 0 32672 0 856911 0 0 Fatema Zanzi SENIOR VP, CHF LEGAL OFFICER 0 369648 0 131387 0 350 0 66405 0 2164 0 569954 0 0 Thomas P Shanley MD Ex-Officio Director/LCH CEO 0 944298 0 361847 0 2838 0 230296 0 25528 0 1564807 0 0 Joseph M Forbess MD Physician 1549525 0 0 0 0 0 37500 0 0 0 1587025 0 0 0 Sandi K Lam MD Physician 978506 0 0 0 0 0 37500 0 0 0 1016006 0 0 0 Tord D Alden MD Physician 945117 0 0 0 0 0 37500 0 0 0 982617 0 0 0 Arthur J Di Patri Jr MD Physician 946809 0 0 0 0 0 37500 0 0 0 984309 0 0 0 Fizan Abdullah MD Physician 1014265 0 0 0 0 0 37500 0 100000 0 1151765 0 0 0 FORM 990, SCHEDULE J, PART I, LINE 3 PURSUANT TO THE BYLAWS OF CHILDREN'S HOSPITAL OF CHICAGO MEDICAL CENTER ("MEDICAL CENTER"), THE COMPENSATION COMMITTEE 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 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 ALL SUCH PAYMENTS, 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 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. FORM 990, SCHEDULE J, PART I, QUESTION 4B LURIE CHILDREN'S 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). SCHEDULE J, PART I, QUESTION 5B ANN & ROBERT H. LURIE CHILDREN'S HOSPITAL OF CHICAGO ("LURIE CHILDREN'S"), A RELATED ORGANIZATION, ALSO 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 MEDICAL CENTER BOARD'S COMPENSATION COMMITTEE. 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. FORM 990, SCHEDULE J, PART II 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 2020 FORM 990 OF LURIE CHILDREN'S, FEIN 36-2170833. FATEMA ZANZI RON BLAUSTEIN THOMAS P. SHANLEY, MD 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 PEDIATRIC FACULTY FOUNDATION FOR THE INDIVIDUAL'S SUBSTANTIAL AND FULL-TIME SERVICES AS AN EMPLOYEE. FOR MORE DETAILS, PLEASE REFER TO THE 2020 FORM 990 OF PEDIATRIC FACULTY FOUNDATION, FEIN 36-3279680. THOMAS P. SHANLEY, MD FORM 990, PART VI, QUESTION 6 DESCRIPTION OF CLASSES OF MEMBERS OR STOCKHOLDERS CHILDREN'S HOSPITAL OF CHICAGO MEDICAL CENTER ("MEDICAL CENTER") IS THE ORGANIZATION'S SOLE CORPORATE MEMBER. FORM 990, PART VI, QUESTION 7A DESCRIPTION OF CLASSES OF PERSONS AND THE NATURE OF THEIR RIGHTS THE ORGANIZATION'S SOLE CORPORATE MEMBER, THE MEDICAL CENTER, HAS CERTAIN RESERVED POWERS, INCLUDING THE POWER TO APPOINT AND REMOVE PHYSICIAN DIRECTORS OF THE LCSF BOARD. FORM 990, PART VI, QUESTION 7B DESCR CLASSES OF PERSONS, DECISIONS REQUIRING APPR & TYPE OF VOTING RIGHTS THE 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, QUESTION 11B DESCRIPTION OF THE PROCESS USED BY MANAGEMENT OR THE GOVERNING BODY TO REVIEW THE FORM 990 A FULL COPY OF THE ORGANIZATION'S FORM 990 WAS PROVIDED TO EACH MEMBER OF THE MEDICAL CENTER BOARD'S AUDIT AND COMPLIANCE COMMITTEEFOR REVIEW AND APPROVAL, AS WELL AS THE RESPECTIVE FILING ORGANIZATION'S BOARD FOLLOWING THE COMMITTEE'S APPROVAL. THE AUDIT AND COMPLIANCE COMMITTEE IS THE COMMITTEE OF THE MEDICAL CENTER BOARD CHARGED WITH THE OVERSIGHT OF AUDIT AND TAX MATTERS FOR THE PARENT AND AFFILIATES. DURING A SPECIAL AUDIT AND COMPLIANCE COMMITTEE MEETING, AND BEFORE FORM 990 WAS FILED, THE AUDIT AND COMPLIANCE COMMITTEE WAS PROVIDED A REVIEW OF FORM 990 BY THE CHIEF FINANCIAL OFFICER ("CFO"). THE CFO AND OUTSIDE TAX ADVISOR ALSO RESPONDED TO THE AUDIT AND COMPLAINCE COMMITTEE MEMBERS' QUESTIONS AND AFFORDED THEM THE OPPORTUNITY FOR DETAILED DISCUSSION OF FORM 990, PRIOR TO THE AUDIT AND COMPLIANCE COMMITTEE TAKING ACTION TO APPROVE THE FILING OF FORM 990. 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 FORM 990. 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, QUESTION 12C DESCRIPTION OF THE PROCESS USED TO MONITOR TRANSACTIONS FOR CONFLICTS OF INTEREST ON AN ANNUAL BASIS THE MEDICAL CENTER AND ITS AFFILIATES ("CORPORATION") SUBMIT A COMPREHENSIVE QUESTIONNAIRE TO BOARD MEMBERS, SENIOR MANAGEMENT AND PURCHASING PERSONNEL REQUIRING DISCLOSURE OF ALL INTERESTS THAT COULD GIVE RISE TO ACTUAL OR POTENTIAL CONFLICTS OF INTEREST. THE MEDICAL CENTER INITIATES FOLLOW UP CONTACT WITH 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 NOMINAING GOVERNANCE COMMITTEE OF THE CORPORATION, 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, QUESTIONS 15A & 15B DESCRIPTION OF THE PROCESS BY WHICH THE COMPENSATION OF CERTAIN EXECUTIVES WAS DETERMINED 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 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. THE COMPENSATION COMMITTEE IS COMPRISED OF MEMBERS OF CHILDREN'S HOSPITAL OF CHICAGO MEDICAL CENTER BOARD OF DIRECTORS 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, QUESTION 19 AVAIL OF GOV DOCS, CONFLICT OF INTEREST POLICY, & FIN STMTS TO GEN 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 XI, LINE 9 OTHER CHANGES IN NET ASSETS OR FUND BALANCES PENSION ADJUSTMENT $2,445,021 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 PEDIATRIC FACULTY FOUNDATION INC 225 E CHICAGO AVE Chicago IL 60611 363279680 HLTH CRE/RSCH IL 501(C)(3) 10 Medical Ctr false LURIE CHILDRENS LIABILITY PROTECTION PRG 225 E CHICAGO AVE Chicago IL 60611 366638400 INSURANCE IL 501(C)(3) 12 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 SUPPORTNG ORG IL 501(C)(3) 12 TYPE I MEDICAL CTR false LURIE CHILDREN'S PEDIATRIC ANESTHESIA AS 225 E CHICAGO AVE Chicago IL 60611 371838535 HEALTH CARE IL 501(C)(3) 3 MEDICAL CTR false LURIE CHILDRENS CIN 225 E CHICAGO AVE CHICAGO IL 606112991 901025439 CONTRACTING SVCS IL NA CMMC INSURANCE CO LTD 225 E CHICAGO AVE CHICAGO IL 60611 981049532 SELF INSURANCE CJ NA CORPORATION false false true false false false false false false false false false false false false false false false false