2020-07-14T14:52:30-05:00 2019-08-31 ERNST & YOUNG US LLP 155 N Wacker Drive Chicago IL 60606 990 2018-09-01 363279680 Pediatric Faculty Foundation Inc % RON BLAUSTEIN PEDI 3122277133 225 E CHICAGO AVE BOX 282 CHICAGO IL 606112991 RON BLAUSTEIN CFO 3122277133 2020-07-13 true JESS WAGENER P01622613 3128792000 99.46.67.29 36964520201965000165 2020-07-14 P 01BAD6EA115B3605BA35E275C310E82CC2CC369C 01BAD6EA115B3605BA35E275C310E82CC2CC369C 2018 2020-09-23 17:36:50Z Thomas Shanley MD 225 E CHICAGO AVE BOX 282 Chicago IL 606112991 197951495 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. 6 4 754 4 0 0 35030899 45224733 139946638 152726762 0 0 0 0 174977537 197951495 0 0 0 0 142238389 157741357 0 0 0 32216374 40855254 174454763 198596611 522774 -645116 19803724 21685450 11868870 14395712 7934854 7289738 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 190734278 0 152726762 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'S 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. 0 0 0 190734278 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 0 754 true false false false false false false false false false false false false X 6 4 false false false false true true true true true false false true true true true true true true true false IL X RON BLAUSTEIN 3122277133 225 ECHICAGO AVE Chicago IL 606112991 X Donald M Lloyd-Jones MD SCM Director 1.0 0.0 X 0 0 0 Douglas Vaughan MD Director 1.0 0.0 X 0 0 0 Elizabeth Mcnally MD Phd Director 1.0 0.0 X 0 0 0 Kirk B Johnson Director 1.0 3.0 X 0 0 0 Patrick M Magoon Ex-Offc Dir/Ceo-Med Ctr, Hosp 1.0 46.0 X 0 1653234 93348 Thomas P Shanley MD Ex-Officio Dir/Pres&Chair Pff 40.0 5.0 X X 1007314 0 146716 Nancy M Borders Gen Counsel & Corp Secretary 1.0 46.0 X 0 559969 130710 Ron Blaustein Chief Financial Officer 1.0 46.0 X 0 684157 123936 Aaron Hamvas MD ATTENDING PHYSICIAN 40.0 0.0 X 472812 0 50279 Annette M Wagner MD ATTENDING PHYSICIAN 40.0 0.0 X 478625 0 60971 Bradley S Marino MD ATTENDING PHYSICIAN 40.0 0.0 X 545818 0 57289 Jeffrey L Loughead MD ATTENDING PHYSICIAN 40.0 0.0 X 475178 0 57904 Michael D Kelleher MD EX-OFFICIO DIRECTOR/CMO/HOSP 40.0 4.0 X 757346 0 137900 3737093 2897360 859053 441 false true false SPI HEALTHCARE 8151 W 183RD STREET SUITE B TINLEY PARK IL 60487 BILLING SERVICES 4335673 WELL CARE NEONATOLOGISTS SC 36W128 SILVER GLEN COURT ST CHARLES IL 60175 PHYSICIAN SERVICES 1699324 NORTHWESTERN MEMORIAL 541 N FAIRBANKS COURT STE 1600 CHICAGO IL 60611 PHYSICIAN SERVICES 1595357 NORTHWESTERN MEDICAL GROUP 676 N ST CLAIR CHICAGO IL 60611 PHYSICIAN SERVICES 543483 NORTHWESTERN UNIVERSITY 633 CLARK STREET EVANSTON IL 60208 PHYSICIAN SERVICES 109640 5 45224733 45224733 PATIENT SERVICE REVENUE 621110 91507313 91507313 MED ADMIN AND EDUCATION 621110 14222979 14222979 PROF SVCS PROV TO RSCH 621110 10884833 10884833 PHYS CONTRACT REVENUE 621110 18105244 18105244 MEDICARE/MEDICAID PYMTS 621110 18006393 18006393 152726762 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 197951495 152726762 0 0 0 0 0 0 1007314 959883 47431 0 129268451 123181604 6086847 10094836 9868786 226050 10547042 9829432 717610 6823714 6519994 303720 0 0 0 0 0 0 2848480 2555851 292629 0 408125 403967 4158 85693 85693 0 5290633 5290633 108023 57278 50745 0 1678967 1662583 16384 0 0 0 11651991 11560143 91848 BILLING & COLLECTION 8847344 8847344 PLAN TAX 4812493 4812493 BAD DEBT 4197122 4197122 DUES & LICENSES 280268 264475 15793 646115 636997 9118 198596611 190734278 7862333 0 0 0 0 0 0 0 18998132 20770862 0 0 0 0 0 0 0 0 805592 914588 0 0 0 0 0 0 0 0 0 0 0 0 19803724 21685450 11868870 14395712 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 11868870 14395712 X 7934854 7289738 0 0 0 0 7934854 7289738 19803724 21685450 -645116 X false true X true false X 27995424 31957730 40944647 35030899 45224733 181153433 115079386 121448157 128123672 139946638 152726762 657324615 0 0 0 143074810 153405887 169068319 174977537 197951495 838478048 0 0 0 838478048 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 143074810 153405887 169068319 174977537 197951495 838478048 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 Nancy M Borders Gen Counsel & Corp Secretary 0 372191 0 185236 0 2542 0 99196 0 31514 0 690679 0 0 Patrick M Magoon Ex-Offc Dir/Ceo-Med Ctr, Hosp 0 937068 0 566118 0 150048 0 52559 0 40789 0 1746582 0 0 Ron Blaustein Chief Financial Officer 0 452355 0 231058 0 744 0 94470 0 29466 0 808093 0 0 Thomas P Shanley MD Ex-Officio Dir/Pres&Chair Pff 887353 0 119445 0 516 0 118545 0 28171 0 1154030 0 0 0 Aaron Hamvas MD ATTENDING PHYSICIAN 472020 0 0 0 792 0 27500 0 22779 0 523091 0 0 0 Annette M Wagner MD ATTENDING PHYSICIAN 478109 0 0 0 516 0 27500 0 33471 0 539596 0 0 0 Bradley S Marino MD ATTENDING PHYSICIAN 545542 0 0 276 0 27500 0 29789 0 603107 0 0 0 Jeffrey L Loughead MD ATTENDING PHYSICIAN 474386 0 0 0 792 0 27500 0 30404 0 533082 0 0 0 Michael D Kelleher MD EX-OFFICIO DIRECTOR/CMO/HOSP 756554 0 0 0 792 0 103022 0 34878 0 895246 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 SERVES IN A SENIOR EXECUTIVE POSITION. 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 THE SUPPLEMENTAL EXECUTIVE PLAN ("SERP") WHICH WAS EFFECTIVE ON JANUARY 1, 2001 IS A DEFERRED COMPENSATION PLAN THAT ASSISTS IN PROVIDING COMPETITIVE TOTAL RETIREMENT BENEFITS TO A VERY LIMITED GROUP OF EXECUTIVE-LEVEL EMPLOYEES OF ANN & ROBERT H. LURIE CHILDREN'S HOSPITAL OF CHICAGO ("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 MANY 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 SERP VEST AT AGE 62, AND ARE FORFEITED IF THE EMPLOYEE LEAVES THE ORGANIZATION VOLUNTARILY BEFORE AGE 62 (EXCEPT UPON THE SOLE DISCRETION OF THE LURIE CHILDRENS 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. THE FOLLOWING INDIVIDUAL PARTICIPATED IN THE SERP AND RECEIVED A VESTED PAYMENT DURING 2018 WHICH IS REPORTED IN COLUMN B(III): PATRICK M. MAGOON $141,666. THE PAYMENT WAS ACCRUED AND RECEIVED IN 2018. AN ADDITIONAL SERP WAS CREATED IN 2017, IN THE FORM OF A NONQUALIFIED DEFERRED COMPENSATION PLAN FOR CERTAIN EMPLOYEES IN LEADERSHIP POSITIONS, AND WHO ARE NOT PARTICIPANTS IN THE 2001 SERP. THE BENEFITS UNDER THE 2017 SERP ARE IN THE FORM OF A FIXED ANNUAL CONTRIBUTION RATE AND AN EARNINGS CREDIT. EACH YEARS CONTRIBUTION AND EARNINGS ARE AT RISK FOR A SUBSTANTIAL PERIOD, AND WILL BECOME FULLY VESTED AND TAXABLE ONLY AFTER FOUR 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 2017 SERP, AND THE UNVESTED CONTRIBUTIONS MADE FOR THEM ARE INCLUDED IN SCHEDULE J, PART II, COLUMN (C). 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 GOVERNANCE COMMITTEE, WHICH SERVES AS THE COMPENSATION COMMITTEE OF ANN & ROBERT H. LURIE CHILDREN'S HOSPITAL OF CHICAGO ("LURIE CHILDREN'S") AND THE ORGANIZATION. 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. 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 GOVERNANCE COMMITTEE OF THE ANN & ROBERT H. LURIE CHILDREN'S HOSPITAL OF CHICAGO (LURIE CHILDREN'S) AND THE CHILDREN'S HOSPITAL OF CHICAGO MEDICAL CENTER (MEDICAL CENTER), WHICH SERVES AS THE COMPENSATION COMMITTEE OF LURIE CHILDREN'S AND PEDIATRIC FACULTY FOUNDATION, INC. 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. 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 2018 FORM 990 OF LURIE CHILDREN'S, FEIN 36-2170833. PATRICK M. MAGOON RON BLAUSTEIN NANCY M. BORDERS. 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. 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 A FULL COPY OF 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. THIS DISCLOSURE SHALL BE PROVIDED TO THE GOVERNANCE COMMITTEE OF THE CORPORATION WHICH SHALL CONSIDER ALL CONFLICTS OF INTEREST ISSUES AND, IF APPROPRIATE, SHALL PROVIDE SUCH WRITTEN DISCLOSURE TO THE DIRECTORS, 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/CHIEF EXECUTIVE OFFICER. 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. 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 2300 CHILDRENS PLAZA STE 114 Chicago IL 60614 831650513 HLTH CRE/RSCH IL 501(C)(3) 10 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