2015-05-15T07:39:48-05:00 2014-06-30 KPMG LLP 1676 International Drive McLean VA 22102 990 2013-07-01 541278830 CHILDREN'S HEALTH SYSTEM INC % DENNIS RYAN CHIL 7576688565 601 Childrens Lane Suite Norfolk VA 23507 DENNIS RYAN CFO/ASST SEC/ASST TREASURER 7032868000 2015-05-08 true raymond ly KPMG LLP P01205643 7032868000 2013 2016-02-25 16:41:14Z JAMES DAHLING 601 CHILDRENS LANE NORFOLK VA 23507 24114527 false X www.chkd.org X 1984 VA Children's Health System is a multi- specialty health system serving southeastern virginia and northeastern north carolina. SEE SCHEDULE O. 22 18 41 0 0 0 0 12239824 12295809 196301 2696116 280955 275579 12717080 15267504 0 0 0 0 8279922 8003088 0 0 481182 4240087 4568302 12520009 12571390 197071 2696114 56342812 70249784 18264857 30600814 38077955 39648970 CHILDREN'S HEALTH SYSTEM IS A MULTI-SPECIALTY HEALTH SYSTEM SERVING SOUTHEASTERN VIRGINIA AND NORTHEASTERN NORTH CAROLINA OFFERING COMPREHENSIVE PEDIATRIC CARE FOR CHILDREN FROM BIRTH TO AGE 21. false false 7483728 12571388 The Health System provided long range planning, management and support services for its subsidiaries in furtherance of their missions. 1177 Continuing medical education programs for community physicians and support services for its subsidiary corporations in the furtherance of their missions. 7484905 true false false true false false false false false false true false false true true true false true false false true false false false false false false false false true false false false false false false false false false false false false false true true true false false true 26 0 true 41 true false true BD false false false false false false false false X 22 18 false false false false true true true true true false false true true true true true true true true false X DENNIS RYAN 7576687000 601 CHILDRENS LANE NORFOLK VA 23507 X ELIZABETH M WELLER TREASURER/DIRECTOR 2.0 2.0 X X 0 0 0 BUFFY BAREFOOT DIRECTOR 1.0 1.0 X 0 0 0 SARAH BISHOP DIRECTOR 1.0 1.0 X 0 0 0 EDWARD A HEIDT JR DIRECTOR 1.0 1.0 X 0 0 0 CHRISTINE NEIKIRK DIRECTOR 1.0 1.0 X 0 0 0 KEVIN RACK ESQ DIRECTOR THRU 07/16/13 1.0 1.0 X 0 0 0 PAMELA COMBS M ED DIRECTOR 1.0 1.0 X 0 0 0 ELIZABETH D LANOUE MD DIRECTOR 1.0 1.0 X 0 0 0 J CHRISTOPHER PERRY DIRECTOR 1.0 1.0 X 0 0 0 KAREN PRIEST DIRECTOR 1.0 1.0 X 0 0 0 BRIAN SKINNER DIRECTOR 1.0 1.0 X 0 0 0 BETH JOHNSON VICE CHAIRMAN/DIRECTOR 1.0 1.0 X X 0 0 0 CONRAD M HALL SECRETARY/DIRECTOR 2.0 2.0 X X 0 0 0 MARK R WARDEN DIRECTOR 1.0 1.0 X 0 0 0 ROLF WILLIAMS DIRECTOR 1.0 1.0 X 0 0 0 HAROLD J COBB JR DD DIRECTOR THRU 07/16/13 1.0 1.0 X 0 0 0 CYNTHIA S KELLY MD DIRECTOR 1.0 1.0 X 0 0 0 LLOYD U NOLAND III DIRECTOR THRU 09/18/13 1.0 1.0 X 0 0 0 MICHELLE BRENNER MD DIRECTOR 1.0 41.0 X 0 197482 22109 JOHN R LAWSON II CHAIMAN/DIRECTOR 3.0 1.0 X X 0 0 0 JAMES D DAHLING PRESIDENT/DIRECTOR 41.0 2.0 X X 961820 0 790796 DONALD NUSS MB CH B DIRECTOR 1.0 1.0 X 0 0 0 ROBERT OBERMEYER MD DIRECTOR 1.0 41.0 X 0 580794 32351 BLAIR WIMBUSH DIRECTOR 1.0 1.0 X 0 0 0 DOUGLAS D ELLIS SR DIRECTOR 1.0 1.0 X 0 0 0 DENNIS RYAN CFO/ASSIST TREAS/ASSIST SECT 41.0 2.0 X 482796 0 374394 AMY SAMPSON VP PUBLIC RELATIONS/MKTING 40.0 X 316108 0 170574 SHERRI MATSON VP GENERAL COUNSEL 40.0 X 356334 0 277273 KATHRYN ABSHIRE VP FINANCE 40.0 X 210847 0 71868 DEBBIE BARNES VP - IS OPERATIONS 40.0 X 322266 0 230024 GREGORY JONES DIRECTOR - CNTRACT DEVELOPMENT 40.0 X 154766 0 24941 STEPHANIE CALLIOTT SENIOR VP, COMMUNITY RELATIONS 40.0 X 360599 0 118360 TINA ALLEN DIR. COMPLIANCE & INTERNAL AUD 40.0 X 154760 0 21616 3320296 778276 2134306 11 false true false DAVIS COMPANY 1705 BALTIC AVE VIRGINIA BEACH VA 23455 ADVERTISING 975965 WILCOX SAVAGE ONE COMMERICAL PLACE NORFOLK VA 23510 LEGAL 314678 KPMG LLP 440 MONTICELLO AVENUE SUITE 1900 NORFOLK VA 23510 ACCOUNTING 297245 TRIAGE CONSULTING GROUP 221 MAINSTREET SUITE 1100 SAN FRANCISCO CA 94105 CONSULTING 229323 CHILD HEALTH CORPORATION OF AMERICA 6803 WEST 64TH STREET OVERLAND PARK KS 66202 CONSULTING 216520 8 0 MANAGEMENT FEES FROM SUBSIDIARIES 900099 12295809 12295809 12295809 355301 355301 0 0 0 0 0 11187838 8847023 2340815 2340815 0 2340815 0 0 0 Miscellaneous 900099 275579 275579 275579 15267504 12571388 0 2696116 0 0 0 0 3093558 394811 2698747 0 1583129 274485 974859 333785 2326305 2156018 88579 81708 772055 603638 123230 45187 228041 155490 60149 12402 0 502860 9371 493489 345313 345313 333057 333057 0 0 900387 888603 11784 0 1279789 1279789 15927 13079 2848 0 0 0 70713 51195 11418 8100 0 13643 7544 6099 0 0 25272 22896 2376 1009737 884146 125591 Supplies 16875 16875 0 Other Expenses 54729 48595 6134 12571390 7484905 4605303 481182 3426750 4184186 0 0 0 0 0 0 0 0 0 0 0 0 0 0 251407 191907 520601 310103 235770 210498 10361594 12714919 0 0 0 0 0 0 42067291 52948274 56342812 70249784 1251563 1204037 0 0 0 0 0 0 0 0 0 0 0 0 0 0 17013294 29396777 18264857 30600814 X 38077955 39648970 0 0 0 0 38077955 39648970 56342812 70249784 2696114 -1125099 X false true X true true true X X X false false false CHILDREN'S HOSPITAL OF THE KING'S DAUGHTERS INC 540506321 03 true true true 0 1 0 true true false false false false true 406287 false false 406287 false Part II-B CHILDREN'S HEALTH SYSTEM (CHS) TAKES THE WELFARE OF THE CHILDREN THAT ARE CARED FOR WITHIN THE CHS FAMILY AS A PRIORITY. AS SUCH, THERE ARE MANY LEGISLATIVE ISSUES THAT OUR STATE AND FEDERAL GOVERNMENTS HANDLE THAT COULD AFFECT CHS. CHS RELIES ON VOLUNTEERS FROM THE NORFOLK CITY UNION OF THE KINGS DAUGHTERS, INC. (NCUKD) TO ASSIST IN LETTER-WRITING, EXERCISING THE PERSONAL RIGHTS TO VOTE AND IN SPREADING EDUCATION ON LEGISLATIVE ISSUES AFFECTING THE ORGANIZATION. ADDITIONALLY, CHS HAS PAID STAFF AND MANAGEMENT ALONG WITH MEMBERSHIP IN HEALTHCARE ASSOCIATIONS AND RETENTION OF PROFESSIONAL LOBBYING FIRMS THAT WORK ON LOBBYING ISSUES AND HAVE DIRECT CONTACT WITH LEGISLATORS, GOVERNMENT OFFICIALS AND OTHER MEMBERS OF LEGISLATIVE INFLUENCE. ISSUES THAT ARE ADDRESSED INCLUDE DISPROPORTIONATE SHARE HOSPITAL FUNDING, BECAUSE A HIGH PERCENTAGE OF PATIENTS CARED FOR IN THE CHS FAMILY ARE COVERED BY MEDICAID, CHILDRENS HOSPITALS GRADUATE MEDICAL EDUCATION REAUTHORIZATION, BUDGET AND FUNDING, TRICARE FUNDING FOR CHILDREN'S HEALTH ISSUES, LEGISLATIVE PROPOSAL REGARDING MEDICALLY COMPLEX CARE OF CHILDREN, GOVERNMENT ACCOUNTABILITY OFFICE REPORT ON CHILDREN'S MENTAL HEALTH AND RELEVANT ACTIVITIES IN CONGRESS, PHYSICIAN SUNSHINE PAYMENT RULEMAKING, AND CHARITABLE GIVING TAX REFORM. 6000 6000 103968 34466 69502 410633 275637 134996 210498 INVESTMENT IN JOINT VENTURE 2 CSV OF LIFE INSURANCE 224190 INTERCOMPANY RECEIVABLE 709423 INVESTMENT IN SUBSIDIARIES 41147015 ACCOUNTS RECEIVABLE MISC 69904 INSURANCE RECOVERABLE 6275909 457B/TOPHAT INVESTMENT 4521831 52948274 0 INSURANCE IBNR 417355 EXEC CAP APPREC ACCT (CAA) 689036 SERP (ACCRUED BENEFIT) 16937364 ACCRUED TAIL COVERAGE 555282 IBNE INSURANCE CLAIMS 6275909 457B/TOPHAT LIAB 4521831 29396777 X ASC 740 FOOTNOTE FROM CONSOLIDATED AUDIT REPORT Part X Line 2 CHS recognizes any benefits from an uncertain tax position only if it is more likely than not that the tax position will be sustained upon examination by the taxing authorities, based on the technical merits of the position. If applicable, the tax benefits recognized in the consolidated financial statements from such a position would be measured based on the largest benefit that has a greater than 50% likelihood of being realized upon ultimate resolution. CHS does not believe its consolidated financial statements include any uncertain tax positions. Central America and the Caribbean Investments 3030331 3030331 3030331 true false true false false false X true true X X X X false true false false false false false true false MICHELLE BRENNER MD DIRECTOR 0 197482 0 0 0 0 0 8111 0 13998 0 219591 0 0 JAMES D DAHLING PRESIDENT/DIRECTOR 853124 0 0 0 108696 0 750817 0 39979 0 1752616 0 57393 0 DENNIS RYAN CFO/ASSIST TREAS/ASSIST SECT 449926 0 0 0 32870 0 331640 0 42754 0 857190 0 18723 0 ROBERT OBERMEYER MD DIRECTOR 0 580794 0 0 0 0 0 10200 0 22151 0 613145 0 0 AMY SAMPSON VP PUBLIC RELATIONS/MKTING 244098 0 36650 0 35360 0 157655 0 12919 0 486682 0 24082 0 SHERRI MATSON VP GENERAL COUNSEL 317181 0 0 0 39153 0 267845 0 9428 0 633607 0 25112 0 KATHRYN ABSHIRE VP FINANCE 193011 0 0 0 17836 0 48265 0 23603 0 282715 0 7632 0 DEBBIE BARNES VP - IS OPERATIONS 291942 0 0 0 30324 0 192986 0 37038 0 552290 0 6528 0 GREGORY JONES DIRECTOR - CNTRACT DEVELOPMENT 126728 0 11426 0 16612 0 5752 0 19189 0 179707 0 0 0 STEPHANIE CALLIOTT SENIOR VP, COMMUNITY RELATIONS 326285 0 0 0 34314 0 94968 0 23392 0 478959 0 23030 0 TINA ALLEN DIR. COMPLIANCE & INTERNAL AUD 122460 0 12862 0 19438 0 5343 0 16273 0 176376 0 0 0 Form Sch J Part I Line 1a In connection with a retirement program, tax gross-up payments are provided to certain directors whose employer funded contributions are immediately taxable, in order to provide them with benefits that are tax-equivalent to benefits of participants whose contributions are not immediately taxable. Form Sch J Part I Line 4b Children's Health System sponsors a supplemental executive retirement plan (the plan). The plan is designed to retain executives in positions essential to the success of Children's Health System. DURING tHE YEAR, THE FOLLOWING INDIVIDUALS WERE PARTICIPANTS IN A SPONSORED SUPPLEMENTAL NONQUALIFIED RETIREMENT PLAN AND RECEIVED THE FOLLOWING PAYMENTS WHICH ARE INCLUDED IN SCHEDULE J PART II COLUMN (C): James Dahling $679,243 Dennis Ryan $300,953 Amy Sampson $122,205 Stephanie Calliott $ 71,681 Sherri Matson $231,312 Kathryn Abshire $ 31,376 Deborah Barnes $178,209 Form Sch J Part I Line 7 Officers and vice presidents may receive additional compensation based on criteria set up by the compensation committee of the board of directors. Department directors may receive additional compensation based on criteria set by management and approved by the board of directors. organization's mission PART I, Line 1 CHILDREN'S HEALTH SYSTEM IS A MULTI-SPECIALTY HEALTH SYSTEM SERVING SOUTHEASTERN VIRGINIA AND NORTHEASTERN NORTH CAROLINA OFFERING COMPREHENSIVE PEDIATRIC CARE FOR CHILDREN FROM BIRTH TO AGE 21. Part VI, Lines 6 & 7 Children's Health System, Inc. has two classes of members: 1) Class A members (i.e., the then current members in good standing of The Norfolk City Union of the King's Daughters, Inc., a Virginia non-stock not-for-profit corporation); and 2) Class B members (i.e., the then current directors on the Board of Directors of Children's Health System, Inc.). Line 7a The Class A members of Children's Health System, Inc. (i.e., the then current members in good standing of The Norfolk City Union of the King's Daughters, Inc., a Virginia non-stock not-for-profit corporation) elect one third of the elected directors of Children's Health System, Inc. The Class B members of Children's Health System, Inc. (i.e., the then current directors on the Board of Directors of Children's Health System, Inc.) elect two thirds of the elected directors of Children's Health System, Inc. Line 7b The following decisions of the Board of Directors of Children's Health System, Inc. are subject to approval by the Class A and Class B members of Children's Health System, Inc.: 1) any amendments to the Articles of Incorporation of the corporation; and 2) any proposed merger or consolidation of the corporation, or any sale, lease, exchange, mortgage, pledge or other disposition of all, or substantially all, of the property and assets of the corporation. Part VI, LINE 11 The 990 is prepared using the annual financial statements that are reviewed by the board and audited annually as a part of the consolidated financial statements of Children's Health System, Inc. Upon completion of the draft of the return, a detail review is performed by several members of staff and management. Prior to filing with the IRS, the board is provided a copy to review. Policies and Disclosure Items Part VI, Section B, Line 12a Conflict Policy Considerations CHS conflict of interest policy includes officers, members of the Board of Directors and Board Committees, key employees, all other employees, Professional Staff and substantial donors. Annually, a questionnaire is distributed and collected from officers, members of the Board of Directors and Board committees and key employees. Responses to the questionnaires are reviewed by the Legal and Finance Departments. For known conflicts, the person involved recuses himself or herself from deliberations regarding the transaction. Violations of the Conflicts of Interest Policy are reported to the CHS Board Chair or the CHS Compliance Officer, as applicable, and may require corrective action up to and including termination of employment. Part VI, Section B, Line 15a & 15b Compensation Process Considerations An Independent compensation consultant approved and retained by the Compensation Committee of the Board annually, usually in April, provides education and presents to the full Board comparative salaries and salary ranges from a database comprised of Children's Hospitals and other applicable hospitals for officers & executives for the Board to review. The Compensation Committee with the aid of the consultant reviews and makes decisions as to executive salaries of CHS and its subsidiaries. Those salary changes and approvals are contemporaneously documented by minutes maintained by the Compensation Committee and signed by the Chairman of the Board. Part VI, C, Line 19 Financial statements (part of the consolidated financial statements of Children's Health System, Inc.) along with governing documents of the organization including the conflict of interest policy are available to the public through direct inquiry and request. CHILDREN'S HSPITAL OF THE KING'S DAUGHT 601 CHILDRENS LANE NORFOLK VA 23507 540506321 HEALTHCARE VA 501(C)(3) 3 NA true CHILDREN'S HEALTH FOUNDATION INC 601 CHILDRENS LANE NORFOLK VA 23507 541278865 FUNDRAISING VA 501(C)(3) 11A NA true CHILDREN'S SURGICAL SPECIALTY GROUP INC 601 CHILDRENS LANE NORFOLK VA 23507 311610834 HEALTHCARE VA NA C CORP 14205081 3008527 1.00000 true CHILDREN'S MEDICAL GROUP INC 601 CHILDRENS LANE NORFOLK VA 23507 541778786 HEALTHCARE VA NA C CORP 68687547 21946117 1.00000 true CMG OF NORTH CARLOINA INC 601 CHILDRENS LANE NORFOLK VA 23507 561960102 HEALTHCARE NC NA C CORP 3242232 1349848 1.00000 true CHILDREN'S HEALTH SYSTEM INSURANCE LTD 4TH FLOOR 41 CEDAR AVENUE HAMILTON BD HM12 INSURANCE BD NA C CORP 637191 4110087 1.00000 true false false false true false false false false false true false false false false false false true true false CHS CORPORATE SUPPORT FOR SUBSIDIARY CHKD q 11790230 BOOK VALUE CHS CORPORATE SUPPORT FOR SUBSIDIARY CSSG q 505579 BOOK VALUE INTERCOMPANY RECEIVABLE FROM CHKD d 662209 BOOK VALUE TRANSFER OF CASH TO CHSIL r 636805 BOOK VALUE