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 363279680 Pediatric Faculty Foundation Inc % BRENDA DAVIS PEDI 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 MATTHEW DAVIS MD 225 E CHICAGO AVE BOX 282 Chicago IL 606112991 224220687 false X www.luriechildrens.org X 1984 IL Pediatric faculty fndation,Inc., employs pediatric medicine specialists & subspecialists who practice at Lurie Children's & provide quality health care to children in the community. 5 3 798 3 0 0 48679869 48279971 155068202 175940716 0 0 0 0 203748071 224220687 0 0 0 0 168137670 168436697 0 0 0 43985351 49995756 212123021 218432453 -8374950 5788234 15387107 23071460 16472319 18368438 -1085212 4703022 X WE VALUE EXCELLENCE AND INNOVATION IN CLINICAL AND BASIC RESEARCH, COORDINATED AND COMPREHENSIVE PATIENT CARE, ONGOING PHYSICIAN EDUCATION, AND SOUNDLY-BASED CHILD ADVOCACY. OUR GOAL IS TO PROVIDE LEADERSHIP IN ENDEAVORS THAT PROMOTE THE HEALTH OF CHILDREN LOCALLY, NATIONALLY, AND INTERNATIONALLY. false false 215133486 0 175940716 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 ("PARENT") (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 EMPLOYS PEDIATRIC MEDICINE SPECIALISTS, SUBSPECIALISTS AND HOSPITALISTS WHO PROVIDE SPECIALTY SERVICES TO PATIENTS OF LURIE CHILDREN'S IN THE AREAS OF ALLERGY, CARDIOLOGY, IMMUNOLOGY, NEONATOLOGY, NEUROLOGY, DERMATOLOGY, EMERGENCY MEDICINE, ENDOCRINOLOGY, GASTROENTEROLOGY, GENERAL ACADEMIC PEDIATRICS, GENETICS, HEMATOLOGY AND ONCOLOGY, HOSPITAL-BASED MEDICINE, INFECTIOUS DISEASES, 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. ALMOST 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. 0 0 0 215133486 true true false 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 0 798 true false false false false false false false false false false true 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 BRENDA DAVIS 3122277133 225 ECHICAGO AVE Chicago IL 606112991 X Thomas P Shanley MD Ex-Officio Dir/Chair PFF 1.0 45.0 X X 66823 1242160 255824 Michael D Kelleher MD Physican 40.0 3.0 X 995056 0 5094 Ron Blaustein Chief Financial Officer 1.0 46.0 X 0 683008 173903 MATTHEW DAVIS MD EX-OFF DIR/PRES/CHR OF PEDIATR 40.0 5.0 X X 682661 0 135002 Fatema Zanzi SENIOR VP, CHF LEGAL OFFICER 1.0 46.0 X 0 501385 68569 Bradley S Marino MD Physician 40.0 0.0 X 499327 0 65040 Stewart Goldman MD Physician until 03/26/21 40.0 1.0 X 485438 0 64890 Stuart Berger MD Physician 40.0 0.0 X 486551 0 51004 Aaron Hamvas MD Physician 40.0 0.0 X 492788 0 44517 Kirk B Johnson Director until 12/3/20 1.0 1.0 X 0 0 0 Donald M Lloyd-Jones MD SCM Director until 7/1/21 1.0 0.0 X 0 0 0 Elizabeth Mcnally MD Phd Director 1.0 0.0 X 0 0 0 Douglas Vaughan MD Director 1.0 0.0 X 0 0 0 John J Greisch Director begn 12/3/20 1.0 2.0 X X 0 0 0 3708644 2426553 863843 492 false true false CONIFER PHYSICIAN SERVICES INC 8151 183rd St TINLEY PARK IL 60487 BILLING SERVICES 4811040 NORTHWESTERN MEMORIAL 541 N FAIRBANKS COURT STE 1600 CHICAGO IL 60611 PHYSICIAN SERVICES 2832424 WELL CARE NEONATOLOGISTS SC 36W128 SILVER GLEN COURT ST CHARLES IL 60175 PHYSICIAN SERVICES 1751701 MEDPARTNERS LOCUM TENENS LLC 3701 FAU Blvd Ste 300 BOCA RATON FL 33431 Temp labor 289435 NORTHWESTERN MEDICAL GROUP 676 N ST CLAIR CHICAGO IL 60611 PHYSICIAN SERVICES 119527 5 46939432 1340539 48279971 PATIENT SERVICE REVENUE 621111 101778655 101778655 PHYS CONTRACT REVENUE 621111 23648984 23648984 MEDICARE/MEDICAID PYMTS 621111 21864925 21864925 MED ADMIN AND EDUCATION 621111 15514565 15514565 PROF SVCS TO RSCH 621111 13133587 13133587 175940716 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 224220687 175940716 0 0 0 0 0 668083 657049 11034 0 138560971 136272557 2288414 10056709 9831513 225196 11550438 11103014 447424 7600496 7451240 149256 0 28674 15000 13674 0 0 0 0 1693632 1574577 119055 0 83695 83695 71480 70731 749 0 5734669 5734669 13151 12939 212 0 944858 936446 8412 0 0 0 15571196 15537749 33447 BAD DEBT EXPENSE 5833733 5833733 PLAN TAX 5215183 5215183 PATIENT EXPENSES 5142530 5142530 BILLING & COLLECTION 8714346 8714346 948609 946515 2094 218432453 215133486 3298967 0 0 0 0 0 0 0 15313542 22131174 0 0 0 0 0 0 0 0 73565 940286 0 0 0 0 0 0 0 0 0 0 0 0 15387107 23071460 16472319 18368438 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 16472319 18368438 X -1085212 4703022 0 0 -1085212 4703022 15387107 23071460 5788234 X false true X true true true X 40944647 35030899 45224733 48679869 48279971 218160119 128123672 139946638 152726762 155068202 175940716 751805990 0 0 0 169068319 174977537 197951495 203748071 224220687 969966109 0 0 0 969966109 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 169068319 174977537 197951495 203748071 224220687 969966109 1.00000 1.00000 0.00000 0.00000 X RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED false true false true true false false true false Thomas P Shanley MD Ex-Officio Dir/Chair PFF 66823 877475 0 361847 0 2838 0 230296 0 25528 66823 1497984 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 Stewart Goldman MD Physician until 03/26/21 448425 0 36497 0 516 0 25930 0 38960 0 550328 0 0 0 Bradley S Marino MD Physician 498585 0 200 0 542 0 26000 0 39040 0 564367 0 0 0 Aaron Hamvas MD Physician 491946 0 50 0 792 0 26336 0 18181 0 537305 0 0 0 Stuart Berger MD Physician 485027 0 0 0 1524 0 26125 0 24879 0 537555 0 0 0 Michael D Kelleher MD Physican 806989 0 0 0 188067 0 0 0 5094 0 1000150 0 188067 0 MATTHEW DAVIS MD EX-OFF DIR/PRES/CHR OF PEDIATR 682385 0 0 276 0 95963 0 39039 0 817663 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 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 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 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. 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). THE FOLLOWING INDIVIDUALS PARTICIPATED IN THE DC SERP AND RECEIVED A VESTED PAYMENT (EARNED OVER MANY YEARS OF EMPLOYMENT) DURING 2020 WHICH IS REPORTED IN COLUMN B (III): MICHAEL D. KELLEHER, MD $188,067 SCHEDULE J, PART I, QUESTION 5A EMPLOYED PHYSICIANS, INCLUDING THOSE WHO SERVE AS OFFICERS OR DIRECTORS OF THE ORGANIZATION AND PHYSICIANS WHO ARE AMONG THE HIGHEST COMPENSATED EMPLOYEES OF THE ORGANIZATION, ARE COMPENSATED IN PART ON THE BASIS OF REVENUE GENERATED BY THE PHYSICIAN'S PERSONALLY PERFORMED PROFESSIONAL SERVICES. THE FORMULA FOR THIS COMPONENT OF COMPENSATION IS DEFINED IN A COMPENSATION PLAN THAT IS APPROVED BY THE COMPENSATION COMMITTEE. SCHEDULE J, PART I, QUESTION 5B ANN & ROBERT H. LURIE CHILDREN'S HOSPITAL OF CHICAGO ("LURIE CHILDREN'S"), A RELATED ORGANIZATION TO THE 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 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. SCHEDULE J, PART I, QUESTION 7 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 THE FOLLOWING INDIVIDUAL IS 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 FORM 990, PART V, QUESTION 1A FORM 1099/1096 FILING VENDORS FOR THE FILING ORGANIZATION ARE PAID BY LURIE CHILDREN'S (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, QUESTION 2A ALLOCATION OF SALARY EXPENSES LURIE CHILDREN'S 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, 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 THE MEDICAL CENTER DIRECTOR OF THE PFF 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 COMMITTEE FOR 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 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. 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, 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 NOMINATING AND 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 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, 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. 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) 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 HEALTH CARE 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 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 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 MEDICAL CTR CORPORATION 0 0 false false true false false false false false false false true false false false false true true false true