2021-07-14T14:06:41-05:00 2020-08-31 ERNST & YOUNG US LLP 155 N Wacker Drive Chicago IL 60606 990 2019-09-01 831650513 Lurie Children's Surgical Foundation Inc % RON BLAUSTEIN LURI 3122277133 225 E CHICAGO AVE BOX 282 Chicago IL 606112991 RON BLAUSTEIN Sr. VP/CFO 3122277133 2021-07-13 true JESS WAGENER P01622613 3128792000 2019 2022-09-23 18:48:47Z Erik C King MD 225 E CHICAGO AVE BOX 282 CHICAGO IL 606112991 75950609 false X www.luriechildrens.org X 2018 IL PROVIDE PEDIATRIC AND SUBSPECIALTY SURGICAL, RESEARCH, AND EDUCATIONAL SERVICES. 9 2 79 2 0 0 27000019 22311077 36116113 53639532 0 0 0 0 63116132 75950609 0 0 0 0 43380616 65700447 0 0 0 8699911 18238997 52080527 83939444 11035605 -7988835 15900887 9457594 10798137 9320148 5102750 137446 X PROVIDE PEDIATRIC AND SUBSPECIALTY SURGICAL, RESEARCH, AND EDUCATIONAL SERVICES. false false 81675270 0 53639532 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, 2020. 0 0 0 81675270 true true false false false false false false false false false false false false 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 79 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 RON BLAUSTEIN 3122277133 225 E CHICAGO AVE CHICAGO IL 606112991 X Patrick M Magoon Ex-Off/LCH Pres/CEO untl 12/19 1.0 45.0 X 0 2497744 59225 Carl D Backer MD Physician 40.0 0.0 X 1528174 0 0 Joseph M Forbess MD Physician 40.0 0.0 X 1519000 0 0 Fizan Abdullah MD Physician 40.0 0.0 X 1016201 0 100000 Thomas P Shanley MD Ex-Officio Director & LCH CEO 1.0 46.0 X 0 907472 196830 Marleta Reynolds MD Ex-Off Dir/Chf of Surgery,DH 40.0 5.0 X 977810 0 0 Tadanori Tomita MD Physician 40.0 0.0 X 959755 0 2700 Aimen F Shaaban MD Physician 40.0 0.0 X 931400 0 0 Nancy M Borders Gen Counsl/Corp Sec untl 12/19 1.0 46.0 X 0 802521 124548 Ron Blaustein Sr. VP/Chief Financial Officer 1.0 46.0 X 0 675774 164959 John J Grayhack MD Director & Physician 40.0 0.0 X 804018 0 2700 Bruce Lindgren MD Director/Vice Chr/VP/Physician 40.0 0.0 X X 700567 0 2700 Anthony Chin MD Director/Treasurer/Physician 40.0 0.0 X 695265 0 7000 Erik C King MD Director/President/Physician 40.0 3.0 X X 700796 0 0 John Maddalozzo MD Director/Board Secr/Physician 40.0 0.0 X 534446 0 8396 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 Fatema Zanzi Sr. VP/CLO/Corp Sec BEGN 2/20 1.0 46.0 X 0 0 0 10367432 4883511 669058 77 false true false REVENUE INTEGRITY MANAGEMENT SERVIC 737 N MICHIGAN AVE SUITE 1650 CHICAGO IL 60611 BILLING SERVICES 1467190 NORTHWESTERN MEDICAL GROUP 676 N ST CLAIR CHICAGO IL 60611 Physician Services 216630 WOMEN'S HEALTH CONSULTANTS SC 58 E Walton St CHICAGO IL 60612 Physician Services 111254 3 21491637 819440 0 22311077 PATIENT SERVICE REVENUE 621111 42603638 42603638 PHYSICIAN CONTRACT 621111 7032603 7032603 MED ADMIN AND EDUCATION 621111 3834084 3834084 OTHER PROGRAM SERVICE REVENUE 621111 169207 169207 53639532 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 75950609 53639532 0 0 0 0 0 0 9436249 9213513 222736 0 43848804 42813783 1035021 4057827 3407191 650636 6512943 6417424 95519 1844624 1827670 16954 0 0 11305 11305 0 0 0 3002425 2908933 93492 0 305249 305098 151 48484 47045 1439 0 3607854 3471945 135909 158567 158407 160 0 8195 8195 0 0 0 5493707 5487786 5921 BILLING COLLECTION FEES 2449773 2449773 PATIENT EXPENSES 1659213 1659213 BAD DEBT EXPENSE 678742 678742 MEDICAL SUPPLIES 329511 329511 485972 479736 6236 83939444 81675270 2264174 0 0 0 0 0 0 0 15705298 9161193 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 195589 296401 15900887 9457594 1933066 2865181 0 0 0 0 0 0 0 0 0 0 0 0 0 0 8865071 6454967 10798137 9320148 X 5102750 137446 0 0 5102750 137446 15900887 9457594 X -7988835 3023531 X false true X true false X 0.00000 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 0 PENSION LIABILITY 6454967 6454967 false true false false true false false Patrick M Magoon Ex-Off/LCH Pres/CEO untl 12/19 0 1489362 0 1000000 0 8382 0 35223 0 24002 0 2556969 0 505259 Marleta Reynolds MD Ex-Off Dir/Chf of Surgery,DH 977810 0 0 0 0 0 0 0 0 0 977810 0 0 0 Anthony Chin MD Director/Treasurer/Physician 695265 0 0 0 0 0 0 0 7000 0 702265 0 0 0 John J Grayhack MD Director & Physician 804018 0 0 0 0 0 0 0 2700 0 806718 0 0 0 Erik C King MD Director/President/Physician 700796 0 0 0 0 0 0 0 0 0 700796 0 0 0 Bruce Lindgren MD Director/Vice Chr/VP/Physician 700567 0 0 0 0 0 0 0 2700 0 703267 0 0 0 John Maddalozzo MD Director/Board Secr/Physician 534446 0 0 0 0 0 0 0 8396 0 542842 0 0 0 Ron Blaustein Sr. VP/Chief Financial Officer 0 470753 0 204245 0 776 0 135503 0 29456 0 840733 0 0 Nancy M Borders Gen Counsl/Corp Sec untl 12/19 0 378113 0 215312 0 209096 0 98964 0 25584 0 927069 0 0 Thomas P Shanley MD Ex-Officio Director & LCH CEO 0 640986 0 265970 0 516 0 166674 0 30156 0 1104302 0 0 Joseph M Forbess MD Physician 1519000 0 0 0 0 0 0 0 0 0 1519000 0 0 0 Carl D Backer MD Physician 1528174 0 0 0 0 0 0 0 0 0 1528174 0 0 0 Aimen F Shaaban MD Physician 853400 0 78000 0 0 0 0 0 0 0 931400 0 0 0 Tadanori Tomita MD Physician 959755 0 0 0 0 0 0 0 2700 0 962455 0 0 0 Fizan Abdullah MD Physician 916201 0 0 0 100000 0 0 0 100000 0 1116201 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") AND THE ORGANIZATION, THE GOVERNANCE COMMITTEE OF THE ANN & ROBERT H. LURIE CHILDREN'S HOSPITAL OF CHICAGO ("LURIE CHILDREN'S") AND MEDICAL CENTER, SERVES AS THE COMPENSATION COMMITTEE OF LURIE CHILDREN'S AND THE ORGANIZATION. THE GOVERNANCE COMMITTEE IS CHARGED TO REVIEW AND APPROVE 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 GOVERNANCE 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 GOVERNANCE COMMITTEE HAS ALSO APPROVED THE COMPENSATION PLAN AND COMPENSATION PHILOSOPHY FOR THE ORGANIZATION. THESE COMPENSATION PLANS AND PHILOSOPHIES ARE SUBJECT TO PERIODIC REVIEW BY THE GOVERNANCE 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 GOVERNANCE COMMITTEE CONFIRMED THE TOTAL AMOUNTS TO BE PAID WERE REASONABLE AND COMPARABLE TO AMOUNTS PAID BY SIMILARLY SITUATED ORGANIZATIONS. OUTSIDE LEGAL COUNSEL PERIODICALLY ADVISES THE GOVERNANCE 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 GOVERNANCE COMMITTEE, INCLUDING A DESCRIPTION OF THE DATA RELIED UPON AND THE GOVERNANCE COMMITTEE'S DECISIONS, WAS THOROUGHLY AND CONTEMPORANEOUSLY DOCUMENTED. THE GOVERNANCE 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 GOVERNANCE COMMITTEE WAS COMPRISED OF MEMBERS OF THE MEDICAL CENTER AND LURIE CHILDREN'S BOARDS OF DIRECTORS WHO WERE DETERMINED TO BE DISINTERESTED (WHICH MEANS NO COMMITTEE MEMBER HAS A CONFLICT OF INTEREST) FOR THESE PURPOSES. THE GOVERNANCE 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 ANN & ROBERT H. LURIE CHILDREN'S HOSPITAL OF CHICAGO ("LURIE CHILDREN'S") MAINTAINS A DEFINED BENEFIT SUPPLEMENTAL EXECUTIVE RETIREMENT PLAN ("DB SERP"), WHICH WAS EFFECTIVE ON JANUARY 1, 2001, AND IS CLOSED TO NEW PARTICIPANTS. THE DB SERP IS A DEFERRED COMPENSATION PLAN THAT ASSISTS IN PROVIDING COMPETITIVE TOTAL RETIREMENT BENEFITS TO A VERY LIMITED GROUP OF EXECUTIVE-LEVEL EMPLOYEES OF "LURIE CHILDREN'S" (INCLUDING ONE OR MORE PERSONS LISTED IN THIS FORM 990). THESE BENEFITS ARE PROVIDED IN EXCHANGE FOR ALL OF THE EMPLOYEE'S YEARS OF SERVICE TO THE ORGANIZATION, AND THE COST OF THE BENEFITS WILL VARY FROM YEAR TO YEAR BASED ON INTEREST RATES, AGE, AND OTHER FACTORS. THE AMOUNTS ARE AT RISK AND WILL NOT BE PAID UNLESS AND UNTIL THE EMPLOYEE HAS PROVIDED SUBSTANTIAL FUTURE SERVICES TO THE ORGANIZATION. BENEFITS UNDER THE DC SERP VEST AT AGE 62, AND ARE FORFEITED IF THE EMPLOYEE LEAVES THE ORGANIZATION VOLUNTARILY BEFORE AGE 62 (EXCEPT UNDER THE SOLE DISCRETION OF THE LURIE CHILDREN'S BOARD, AND ONLY IF THE PARTICIPANT HAS REACHED AT LEAST AGE 55 WITH AT LEAST 10 YEARS OF SERVICE). PARTICIPANTS WHO VOLUNTARILY LEAVE THE ORGANIZATION BEFORE AGE 55 FORFEIT THEIR ENTIRE SERP BENEFIT UPON TERMINATION. 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, WHO ARE NOT PARTICIPANTS IN THE DB SERP. 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 SERP AND RECEIVED A VESTED PAYMENT DURING 2019 WHICH IS REPORTED IN COLUMN B (III): NANCY M. BORDERS $206,411 THE PAYMENT WAS ACCRUED AND RECEIVED IN 2019. 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 GOVERNANCE COMMITTEE. THE GOVERNANCE 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 PEDIATRIC FACULTY FOUNDATION FOR THE INDIVIDUAL'S SUBSTANTIAL AND FULL-TIME SERVICES AS AN EMPLOYEE. FOR MORE DETAILS, PLEASE REFER TO THE 2019 FORM 990 OF PEDIATRIC FACULTY FOUNDATION, FEIN 36-3279680. 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 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 2019 FORM 990 OF LURIE CHILDREN'S, FEIN 36-2170833. NANCY M. BORDERS PATRICK M. MAGOON RON BLAUSTEIN 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 ALL DIRECTORS OF THE ORGANIZATION. 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 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 THE ORGANIZATION'S FORM 990 WAS PROVIDED TO EACH MEMBER OF THE MEDICAL CENTER'S AND LURIE CHILDREN'S AUDIT COMMITTEE (OF THE BOARD) AS WELL AS THE FILING ORGANIZATIONS BOARD. THE AUDIT COMMITTEE IS THE COMMITTEE OF THE MEDICAL CENTER CHARGED WITH THE OVERSIGHT OF AUDIT AND TAX MATTERS FOR THE PARENT AND AFFILIATES. DURING A SPECIAL AUDIT COMMITTEE MEETING, AND BEFORE THE FORM 990 WAS FILED, THE AUDIT COMMITTEE WAS PROVIDED A REVIEW OF THE FORM 990 BY THE CHIEF FINANCIAL OFFICER ("CFO"). THE CFO AND OUTSIDE TAX ADVISOR ALSO RESPONDED TO THE AUDIT COMMITTEE MEMBERS' QUESTIONS AND AFFORDED THE OPPORTUNITY FOR DETAILED DISCUSSION OF THE FORM 990, PRIOR TO THE AUDIT COMMITTEE TAKING ACTION TO APPROVE THE FILING OF THE 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 THE 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 THE FORM 990. PRIOR TO PRESENTING THE FORM 990 TO THE BOARD'S AUDIT COMMITTEE, THE ORGANIZATION'S TEAM, INCLUDING ITS ADVISORS, MET FREQUENTLY TO DISCUSS AND REVIEW DRAFTS OF THE FORM. SUBSEQUENT TO THE AUDIT COMMITTEE REVIEW AND APPROVAL, FORM 990 WAS PROVIDED TO THE FILING ORGANIZATIONS 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 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 GOVERNANCE COMMITTEE. PURSUANT TO THE CONFLICTS OF INTEREST POLICY OF THE MEDICAL CENTER AND AFFILIATES ("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 GENERAL COUNSEL. DISCLOSURES ARE PROVIDED TO THE 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 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 GOVERNANCE COMMITTEE OF CHILDREN'S HOSPITAL OF CHICAGO MEDICAL CENTER AND ANN & ROBERT H. LURIE CHILDREN'S HOSPITAL OF CHICAGO BOARDS OF DIRECTORS ("GOVERNANCE COMMITTEE"). THE GOVERNANCE 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 GOVERNANCE COMMITTEE. WITH THE ASSISTANCE OF A COMPENSATION CONSULTANT AND INFORMATION FROM A VARIETY OF EXTERNAL SOURCES (SPECIFIED ON SCHEDULE J), THE GOVERNANCE COMMITTEE CONFIRMED THE TOTAL AMOUNTS TO BE PAID WERE REASONABLE AND COMPARABLE TO AMOUNTS PAID BY SIMILARLY SITUATED ORGANIZATIONS FOR FUNCTIONALLY SIMILAR POSITIONS. OUTSIDE LEGAL COUNSEL ADVISES THE GOVERNANCE COMMITTEE WITH RESPECT TO FEDERAL TAX REQUIREMENTS IN SETTING COMPENSATION AND THE ESTABLISHMENT OF THE REBUTTABLE PRESUMPTION OF REASONABLENESS. THE PROCESS FOLLOWED BY THE GOVERNANCE COMMITTEE, INCLUDING A DESCRIPTION OF THE DATA RELIED UPON AND THE GOVERNANCE COMMITTEE'S DECISIONS, WAS THOROUGHLY AND CONTEMPORANEOUSLY DOCUMENTED. THE GOVERNANCE 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 GOVERNANCE COMMITTEE WAS COMPRISED OF MEMBERS OF CHILDREN'S HOSPITAL OF CHICAGO MEDICAL CENTER AND ANN & ROBERT H. LURIE CHILDREN'S HOSPITAL OF CHICAGO BOARDS OF DIRECTORS WHO WERE DETERMINED DISINTERESTED FOR THESE PURPOSES. THE GOVERNANCE 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 $3,023,531 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 0 false false true false false false false false false false false false false false false false false false false