2016-07-12T11:39:22-05:00 2015-08-31 ERNST & YOUNG US LLP 155 N Wacker Drive Chicago IL 60606 990 2014-09-01 363357004 Childrens Hospital of Chicago Medical Center % RON BLAUSTEIN CHIL 3122277133 225 E Chicago Ave PR Dept BOX 269 Chicago IL 606112991 RON BLAUSTEIN CFO 3122277133 2016-07-11 true Tamara Tarazi P01266026 3128792000 2014 2016-09-27 15:27:22Z Patrick M Magoon 225 E CHICAGO AVE BOX 269 Chicago IL 606112991 25687555 false X www.luriechildrens.org X 1984 IL ESTABLISH, DEVELOP, PROMOTE & Conduct EDucat'l PRGMS, SCI RERCH, HEALTHCARE FACILITIES & other charitable & EDUCAT'L ACTIVITIES DEVOTED TO HEALTH & welfare to infants & children. 111 103 87 106 0 3725026 3759810 20019617 21927745 0 0 0 0 23744643 25687555 0 335350 0 0 17082556 18673314 0 0 0 5614197 8311903 22696753 27320567 1047890 -1633012 8325082 7016740 4428268 4749934 3896814 2266806 X WE ARE DEDICATED TO THE HEALTH AND WELL-BEING OF ALL CHILDREN. AS THE PEDIATRIC TEACHING FACILITY FOR NORTHWESTERN UNIVERSITY'S FEINBERG SCHOOL OF MEDICINE, THIS COMMITMENT DRIVES US TO BE A LEADER IN: - PEDIATRIC HEALTH CARE DELIVERY - RESEARCH INTO THE PREVENTION, CAUSES AND TREATMENT OF DISEASES THAT AFFECT CHILDREN - EDUCATION FOR PHYSICIANS, NURSES AND ALLIED HEALTH PROFESSIONALS - ADVOCACY FOR CHILDREN AS A CHARITABLE ORGANIZATION, WE SERVE CHILDREN AND THEIR FAMILIES TO THE BEST OF OUR ABILITIES AND TO THE LIMITS OF OUR RESOURCES. false false 25403155 335350 21927745 The Children's Hospital of Chicago Medical Center ("Medical Center"), an Illinois not-for-profit corporation, engages in budget approval, asset management, resource allocation, investment oversight and strategic planning for Affiliates. Affiliates include organizations for which the Medical Center is a controlling member. Currently, the Medical Center has the following affiliates: Ann & Robert H. Lurie Children's Hospital of Chicago, Ann & Robert H. Lurie Children's Hospital of Chicago Foundation, Ann & Robert H. Lurie Children's Hospital of Chicago Research Center, Lurie Children's Medical Group, LLC and Pediatric Faculty Foundation, Inc, Lurie Children's Health Partners Care Coordination, LLC, Almost Home Kids and Lurie Children's Health Partners Clinically Integrated Network LLC. Lurie Children's Medical Group, LLC ("Medical Group") is an Illinois limited liability company whose sole member is the Medical Center. By virtue of the Medical Center's tax-exempt status, the Medical Group is considered to be an organization described under Section 501(c)(3) of the Code. The Medical Group employs pathologists, radiologists, psychiatrists and dentists who practice at Ann & Robert H. Lurie Children's Hospital of Chicago ("Lurie Children's"). The Medical Group's pathologists comprise the Lurie Children's Department of Pathology and Laboratory Medicine which provides comprehensive services in both Anatomic and Clinical Pathology, utilizing extensive expertise and state-of-the-art technology. Consultative services are provided across the country in collaboration and coordination with Lurie Children's medical, surgical and ancillary departments. The children encompass a cross-section of diagnoses and the department assists in the diagnosis and management of acute and chronic diseases. The Medical Group psychiatrists practice within Lurie Children's Department of Child and Adolescent Psychiatry which offers children and their families specialized services in pediatric mental health. Clinicians in the department provide state of the art psychiatric and psychological services, education, and advocacy. The Medical Group psychiatrists provide national leadership in the education of mental health care professionals and advancement of knowledge through research. The Medical Group psychiatrists treat children of all ages and from every socioeconomic background for a wide variety of problems including adjustment disorders, emotional problems related to pediatric disorders, psychoses, mood disorders, anxiety, developmental delays, behavior disorders, ADHD, autism spectrum disorders, and learning disabilities. The Medical Group dentists provide comprehensive and preventive oral health care for infants, children, adolescents, and patients of Lurie Children's with special health care needs. Lurie Children's dentistry service provides a child-centered environment and a comprehensive program emphasizing total health and prevention. The Medical Group dentists provide care related to infant oral healthcare with parent education; nursing and baby bottle caries; dental caries; oral trauma, anxious child; comprehensive oral healthcare for patients of the Lurie Children's medical specialties (including hematology, oncology, infectious disease, allergy, cardiology, neurology and services to address cleft lip and palate); and services requiring sedation and general anesthesia. Radiologists employed by the Medical Group staff the Lurie Children's Department of Medical Imaging which serves pediatric patients in a manner aimed to help minimize radiation dose used during each procedure. The Department performs more than 115,000 procedures each year, helping Lurie Children's specialists care for their patients with the best imaging procedures possible. All of the radiologists are board certified with subspecialty training in pediatric radiology, interventional radiology and/or neuroradiology. The Medical Group's physicians are members of the faculty practice plan at Lurie Children's, which represents the largest provider of pediatric Medicaid services in Illinois. Medicaid represents over 39% of its payor mix. In FY 2015, Medicaid reimbursement for physician services for care to children treated by the Medical Group physicians was approximately $1.9 million less than the costs associated with providing such services. The Medical Center through its management and the Medical Group's services assists Lurie Children's, which, owns and operates the only full-service, independent, freestanding pediatric hospital in Illinois, with 288 licensed beds as well as a full range of inpatient and outpatient care and related ancillary services. This not-for-profit, tertiary care hospital, founded in 1882, provides patient care 24 hours-per-day, 7 days-per-week and provides more pediatric healthcare than any other hospital provider in Illinois in nearly every pediatric medical and surgical specialty. As a major academic tertiary care medical center, Lurie Children's has served patients from 50 states, and 57 countries. Lurie Children's is a designated Level I pediatric trauma center for the City of Chicago, with a Level III neonatal nursery that serves as a regional referral center in the State of Illinois Perinatal Network. Lurie Children's ability to treat the most critically ill infants in its neonatal intensive care unit ("NICU") is demonstrated by statistics for fiscal year 2015 which show that 53% of all transports into its NICU were from other Level III nurseries in metropolitan Chicago. In 2015, Lurie Children's has been ranked as the 11th best children's hospital in the country by U.S. News & World Report. In addition, Lurie Children's is the only pediatric hospital in Illinois to be ranked by U.S. News & World Report in all 10 pediatric specialties. Lurie Children's is the home to the world's first pediatric center for autonomic medicine and was the first pediatric hospital in Illinois to perform the Berlin Heart procedure, a breakthrough technology that helps children awaiting heart transplants. In FY 2015, Lurie Children's, through more than 620,000 patient visits, served more than 178,000 children who came from all over the State of Illinois and beyond to access the more than 70 specialties offered by the Lurie Children's. During this period there were 535,972 outpatient visits including 353,473 visits in Lincoln Park (including 5,935 observation cases) including 57,902 emergency room visits and 119,326 outpatient visits at the satellite facilities. 25403155 true true false false false false false false false false false false false true false false false true false false true false false false false false false true false true false false false false false false false false false false false false true true true true false false true X 0 0 87 true false true CJ false false false false false false false false X 111 103 true false false false false false false true true false false false true true true true true true true true true IL X RON BLAUSTEIN 3122277133 225 E CHICAGO AVE PR DEPT BOX 1 Chicago IL 606112991 Carl S Allegretti Director 1.0 1.0 X 0 0 0 John J Allen Director 1.0 1.0 X 0 0 0 Patrick J Allin Director 1.0 1.0 X 0 0 0 John P Amboian Jr Director 1.0 1.0 X 0 0 0 Sarah Baine Director 1.0 2.0 X 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CLAIR CHICAGO IL 60611 PHYSICIAN SERVICES 1002300 SPI HEALTHCARE 8151 183rd Street TINLEY PARK IL 60487 BILLING SERVICES 841636 Community Health Solutions of Illin 1000 118th Avenue North ST PETERSBURG FL 33716 Care Coord Svcs 234310 3 0 3759810 0 3759810 PATIENT CARE REVENUE 621110 11526238 11526238 0 0 Medical, Admin & Teaching 621110 3168456 3168456 0 0 MISC OPERATING INCOME 621110 3608228 3608228 0 0 Medicaid 621110 3624823 3624823 0 0 21927745 0 0 0 0 0 0 0 0 0 0 0 25687555 21927745 0 0 X 335350 335350 0 0 0 0 0 0 0 0 0 0 0 0 0 0 15238989 14735032 503957 0 0 0 0 0 2736195 2635114 101081 0 698130 676195 21935 0 0 0 0 0 0 0 0 0 13500 0 13500 0 0 0 0 0 0 0 0 0 0 0 4481227 4255276 225951 0 46518 46518 0 0 159011 159011 0 0 0 0 0 0 0 0 0 0 17282 17282 0 0 38153 38153 0 0 0 0 0 0 1040 1040 0 0 0 0 0 0 0 0 0 0 0 0 0 0 800006 800006 0 0 BILLING AND COLLECTION FEES 967923 0 967923 0 Plan tax 1012156 1012156 0 0 Dues and licenses 72581 72581 0 0 Bad debts 552310 552310 0 0 150196 67131 83065 27320567 25403155 1917412 0 0 4780528 4822491 0 0 0 0 2917270 1481195 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 120000 120000 0 0 507284 593054 8325082 7016740 4428268 4749934 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 4428268 4749934 X 3896814 2266806 0 0 0 0 3896814 2266806 8325082 7016740 -1633012 3004 X false true X true false X 743847 1501525 1308418 3725026 3759810 11038626 16817104 18676528 18743907 20019617 21927745 96184901 0 0 0 17560951 20178053 20052325 23744643 25687555 107223527 743847 1501525 1308418 3725026 3759810 11038626 0 743847 1501525 1308418 3725026 3759810 11038626 96184901 0 0 0 0 0 17560951 20178053 20052325 23744643 25687555 107223527 0.89705 0.00000 0.00000 0.00000 X RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED DUE FROM CMMC INSURANCE 76025 NONPATIENT RECEIVABLE 517029 593054 Central America and the Caribbean Program Services INSURANCE 2508884 2508884 2508884 true false true false false false true LURIE CHILDREN'S 225 E CHICAGO AVE CHICAGO IL 60611 362170833 501(c)(3) 335350 PROGRAM SUPPORT 1 Form 990, Schedule I In FY 2015 Medical Center provided assistance to Lurie Children's to support its mission through a $335,350 net asset transfer. It did not provide grants to other organizations. X X X X false true false true false false false false false Mina K Dulcan MD Director /Chief Child Psych 0 317441 0 56748 0 12033 0 13000 0 23791 0 423013 0 0 Patrick M Magoon Ex-Offic Dir/CEO-Med Ctr, Hosp 0 807718 0 483107 0 4356 0 588986 0 22889 0 1907056 0 59423 Thomas P Green MD Ex-Officio Dir/Pres&Chair PFF 0 566776 0 207205 0 1524 0 26000 0 31141 0 832646 0 0 Mary JC Hendrix PhD Ex-Officio Dir/Pres Sci Off 0 554242 0 100764 0 792 0 67028 0 21402 0 744228 0 0 Ron Blaustein Chief Financial Officer 0 303003 0 115200 0 291 0 16166 0 28519 0 463179 0 0 Paula M Noble CFO/TREAS/MED CT&AFF-TERM 5/14 0 191015 0 189830 0 1443572 0 19372 0 8477 0 1852266 0 1388851 Donna S Wetzler GEN CNSL&CORP SEC/MED CTR &AFF 0 134920 0 329295 0 188242 0 19915 0 23264 0 695636 0 185816 Nancy M Borders Gen Counsel & Corp Secretary 0 275704 0 63329 0 1171 0 18106 0 31974 0 390284 0 0 Jessica Strausbaugh Treasurer 0 163048 0 23838 0 128 0 9376 0 14324 0 210714 0 0 Michael D Kelleher MD EX-OFFICIO DIRECTOR/CMO/HOSP. 0 430370 0 157590 0 516 0 26000 0 29728 0 644204 0 0 H William Schnaper MD EX-OFFICIO DIRECTOR/ PFF MD 0 263998 0 45430 0 792 0 26000 0 24450 0 360670 0 0 Elizabeth J Perlman MD CHAIR/DEPT OF PATH & LAB MED 459662 0 81664 0 2085 0 148392 0 23731 0 715534 0 0 0 Richard M Shore MD STAFF RADIOLOGIST 363459 0 94339 0 4648 0 27232 0 10747 0 500425 0 0 0 Cynthia K Rigsby MD VICE CHRMN MED IMAGING 351204 0 97101 0 542 0 22271 0 34999 0 506117 0 0 0 Martha C Saker MD STAFF RADIOLOGIST 340647 0 100189 0 778 0 21661 0 8734 0 472009 0 0 0 James S Donaldson MD Chief Radiologist 526692 0 93248 0 3714 0 332643 0 26914 0 983211 0 0 0 Supplemental Compensation Information SCHEDULE J, PART I, LINE 3 Pursuant to the bylaws of Children's Hospital of Chicago Medical Center ("Medical Center"), the Governance Committee of the Medical Center is charged to review and approve senior executive compensation for the Medical Center and its affiliates. 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 and the other senior managers. 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 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 also serves an integral role in advising 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 the Ann and Robert H. Lurie Children's Hospital of Chicago Boards of Directors who were determined to be disinterested 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 application of the rebuttable presumption of reasonableness. Schedule J, Part I, Question 4b Benefits earned under the supplemental executive plan ("SERP") are non-vested forms of deferred compensation that fund the employee's eventual retirement benefit. 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 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 individuals participated in the serp and earned unvested benefits during 2014 which are reported in column (C): James S. Donaldson, MD, Patrick M. Magoon, and Elizabeth J. Perlman, MD. Also in response to question 4b, the following individuals received vested payments from the supplemental retirement benefits under the SERP, and therefore had SERP benefits included in their taxable income: Donna S. Wetzler $185,816, Paula M. Noble $1,388,851. In each case, the taxable amount represents the vested value of benefits earned for service to the organization, and which were taxable and paid in 2014. Schedule J, Part I, Question 5a Employed physicians are compensated on the basis of personal professional productivity that takes into account, in part, the revenues of the organization generated by the physician. Schedule J, Part II The following individuals are not compensated by the reporting organization for his or her service as a director. 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 2014 Form 990 of Pediatric Faculty Foundation, EIN 36-3279680. Thomas P. Green, MD Mary J.C. Hendrix, PhD Michael D. Kelleher, MD H. William Schnaper, 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 the 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 2014 Form 990 of Lurie Children's, FEIN 36-2170833. Patrick M. Magoon Ron Blaustein Paula M. Noble Donna S. Wetzler Mina K. Dulcan, MD 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 CHILDREN'S HOSPITAL OF CHICAGO MEDICAL CENTER. THE ALLOCATION OF THE SALARY COSTS ARE DISCLOSED ON FORM 990, PART IX, STATEMENT OF FUNCTIONAL EXPENSES. FORM 990, PART VI, QUESTION 2 Description of Relationships *Peter Bensinger is the father of Peter Bensinger, Jr. *Peter Bensinger Jr. serves as a director of a company for which Peter Bensinger serves as an officer. *David Bunning has a business relationship with Daniel J. Hennessy. *Bert A. Getz, Jr. has a business relationship with Edward J. Wehmer. *John Challenger serves as an officer for a firm that provides services to the firm of which John P. Amboian serves as an officer. *William Devers, Jr. has a business relationship with Michael W. Ferro, Jr. *Andrew J. McKenna is the father of William J. McKenna. *Adam Kriger has a business relationship with Andrew J. McKenna. *David D. Grumhaus is the father of David D. Grumhaus, Jr. *Mark A. Hoppe has a business relationship with Mitchell Feiger. *Peter Bensinger Jr. has a business relationship with Matthew Brewer. *William Devers Jr. has a business relationship with Andrew J. McKenna. *Thomas Souleles has a business relationship with John Amboian, Jr.. *Carl Allegretti has a business relationship with Michael Evangelides. *Michael W. Ferro, Jr. has a business relationship with Andrew McKenna. *Michael W. Ferro, Jr. has a business relationship with J. Christopher Reyes. *Michael W. Ferro, Jr. has a business relationship with Lester Crown. *Michael W. Ferro, Jr. has a business relationship with Linda S. Wolf. *Christopher Segal has a business relationship with Roxanne Martino. *Loren Gorter has a business relationship with Roxanne Martino. *Allan Bulley has a business relationship with Gregory Case. *Allan Bulley has a business relationship with Don Edwards. *Allan Bulley has a business relationship with Andrew McKenna. *Allan Bulley has a business relationship with Thomas Souleles. Describe the Process used by Management &/or Governing Body to Review 990 Form 990, Part VI, Question 11B A full COPY OF THE ORGANIZATION'S FISCAL YEAR 2015 FORM 990 WAS PROVIDED TO EACH MEMBER OF THE MEDICAL CENTER AND LURIE CHILDREN'S AUDIT COMMITTEE (OF THE 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 DETAILED 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 AND INTERNAL LEGAL 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. Form 990, Part VI, Question 12c Description of Process to Monitor Transactions for Conflicts of Interest On an annual basis, the Medical Center and its affiliates provide a comprehensive questionnaire to its board members, senior management and purchasing personnel posing questions about actual or potential conflicts of interest. The Medical Center initiates follow up contact to those who do not respond and to clarify responses, where necessary. The Medical Center reviews each disclosure and provides a summary of relevant disclosures for the review and approval of 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 and 15b OFFICES & POSITIONS FOR WHICH PROCESS WAS USED, & YEAR PROCESS WAS BEGUN 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 AND THE OTHER SENIOR MANAGERS. 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 ALSO SERVES AN INTEGRAL ROLE IN ADVISING 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, SCHEDULE A, PART I INFORMATION ABOUT SUPPORTED ORGANIZATION For a description of the manner in which the Medical Center supports Lurie Children's, please see the statement of program accomplishments included in Schedule O. FORM 990 PART IX LINE 11G DESCRIPTION:CARE COORDINATION TOTAL FEES:2969247 FORM 990 PART IX LINE 11G DESCRIPTION:PHYSICIAN SERVICES TOTAL FEES:1136295 FORM 990 PART IX LINE 11G DESCRIPTION:CONSULTING TOTAL FEES:132204 FORM 990 PART IX LINE 11G DESCRIPTION:TEMPORARY LABOR TOTAL FEES:225951 FORM 990 PART IX LINE 11G DESCRIPTION:OTHER SERVICES TOTAL FEES:17530 LURIE CHILDREN'S MEDICAL GROUP LLC 225 E CHICAGO AVE CHICAGO IL 60611 364187449 HEALTH CARE IL 21139838 6387410 MEDICAL CTR Lurie Children's Health Prtnrs Care Crdn 225 E CHICAGO AVENUE BOX 301 CHICAGO IL 60611 352503476 COORDINATD CR IL 0 0 Medical Ctr Stanley Manne Children's Resc Institute 225 E CHICAGO AVE CHICAGO IL 60611 363357005 RESEARCH IL 501(C)(3) 4 Medical Ctr true LURIE CHILDREN'S HOSPITAL OF CHICAGO FDN 225 E CHICAGO AVE CHICAGO IL 60611 363357006 FUNDRAISING IL 501(C)(3) 7 Medical Ctr true PEDIATRIC FACULTY FOUNDATION INC 225 E CHICAGO AVE CHICAGO IL 60611 363279680 HLTH CRE/RSCH IL 501(C)(3) 9 Medical Ctr true LURIE CHILDREN'S 225 E CHICAGO AVE CHICAGO IL 60611 362170833 HOSPITAL IL 501(C)(3) 3 Medical Ctr true CMH Self Insurance Foundation 225 E CHICAGO AVE Chicago IL 60611 366638400 Insurance IL 501(C)(3) 11 III-FI MEDICAL CTR true Almost Home Kids 7 S 721 ROUTE 53 NAPERVILLE IL 60540 363822010 TRANSITION CR IL 501(C)(3) 9 MEDICAL CTR true LC CIN LLC 225 E Chicago Ave Chicago IL 606112991 901025439 CONTRACT IL CMMC INSURANCE CO LTD 225 E CHICAGO AVE CHICAGO IL 60611 981049532 SELF INSURANCE CJ MEDICAL CTR CORPORATION 73693 12899223 1.00000 true false true true false false false false false false false false false false false false true false false true LURIE CHILDREN'S b 335350 COST LURIE CHILDREN'S c 3759810 COST LURIE CHILDREN'S p 11071815 COST CMMC INSURANCE CO LTD s 2508885 COST