2015-06-30T12:33:37-05:00 2014-08-31 ERNST & YOUNG US LLP 155 N Wacker Drive Chicago IL 60606 990 2013-09-01 363279680 Pediatrics Faculty Foundation Inc % PAULA M NOBLE PEDI 3122277133 225 E CHICAGO AVE PR DEPT BOX 2 Suite CHICAGO IL 606112991 RON H BLAUSTEIN CFO 3122274306 2015-06-29 true Katherine Kurtzman P01236691 3122274306 2013 2016-02-25 16:41:14Z Thomas P Green MD 225 E CHICAGO AVE BOX 269 Chicago IL 606112991 126603845 false X www.luriechildrens.org X 1984 IL Pediatrics faculty fndation,Inc., employs pediatric medicine specialists & subspecialists who practice at Lurie Children's & provide quality health care to children in the community. 4 2 467 0 0 18469675 16724863 102318008 109878982 382 0 0 0 120788065 126603845 0 0 0 0 95302691 100957662 0 0 0 26467349 27269129 121770040 128226791 -981975 -1622946 12591475 10636298 9113777 8781546 3477698 1854752 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 123211734 109878982 Pediatrics 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 462 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 approximately 36 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. PFF's physicians are members of the Faculty Practice Plan at Lurie Children's which is comprised of approximately 625 pediatric sub-specialists and represents the largest provider of pediatric Medicaid services in Illinois. In FY 2014, Lurie Children's faculty physicians had 190,405 combined inpatient and outpatient Medicaid patient encounters for 55,736 pediatric patients. Medicaid represents nearly 43% of its payor mix. 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 FY 2014, Medicaid reimbursement for physician services for specialty care to children treated by PFF physicians was over $20 million less than the costs associated with providing such services. 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 approximately 212 physicians. Almost half are pediatric residents, and the remainder are fellows in various pediatric sub-specialties including cardiology, hematology/oncology and neonatology. The program ranked 19th nationally in the 2014 U.S.News & World Report's "Best Medical Schools Specialty Rankings for Pediatrics." 123211734 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 0 0 467 true false false false false false false false false false false X 4 2 false false false false true true true true true false false false true true true true true true true false IL X PAULA M NOBLE 3122274306 225 ECHICAGO AVEPR DEPTBOX 269 Chicago IL 606112991 THOMAS P GREEN MD EX-OFFICIO DIR/PRES&CHAIR PFF 40.0 4.0 X X 765187 0 57204 KIRK B JOHNSON DIRECTOR 1.0 4.0 X 0 0 0 DONALD LLOYD-JONES DIRECTOR 1.0 0.0 X 0 0 0 PATRICK M MAGOON EX-OFFC DIR/CEO, MED.CNTR/HOSP 1.0 43.0 X 0 1272214 496545 STEVE ROSEN MD AT-LARGE DIRECTOR 1.0 0.0 X 0 0 0 RON BLAUSTEIN CFO/MED. CNTR. & AFFLTS. 1.0 44.0 X 0 348751 42265 PAULA M NOBLE CFO/TREAS/MED CT&AFF-THRU 5/14 1.0 44.0 X 0 592294 223562 DONNA S WETZLER GEN CNSL&CORP SEC/MED.CTR &AFF 1.0 44.0 X 0 598615 44049 JOHN M COSTELLO MD ATTENDING PHYSICIAN 40.0 0.0 X 466713 0 56958 MARY JC HENDRIX PHD PRES & SCIEN OFF/RSCH. CNTR. 40.0 4.0 X 632391 0 87930 MICHAEL D KELLEHER MD DIR/CMO, HOSP 40.0 3.0 X 563573 0 55211 JEFFREY L LOUGHEAD MD ATTENDING PHYSICIAN 40.0 0.0 X 448791 0 50150 ANNETTE WAGNER MD ATTENDING PHYSICIAN 40.0 0.0 X 438535 0 46624 3315190 2811874 1160498 323 false true false SPI HEALTHCARE 8151 W 183RD STREET SUITE B TINLEY PARK IL 60487 BILLING SERVICES 4474152 WELL CARE NEONATOLOGISTS SC 36W128 SILVER GLEN COURT ST CHARLES IL 60175 NEONATAL PHYSICIANS 1660328 NORTHWESTERN MED FACULTY FOUNDATION 676 N ST CLAIR CHICAGO IL 60611 PHYSICIAN SERVICES 117515 MILLENNIUM MEDICAL MANAGEMENT 900 OAKMONT LN STE 100 WESTMONT IL 60559 BILLING SERVICES 117050 HURON CONSULTING GROUP 550 W VAN BUREN ST CHICAGO IL 60607 CONSULTING SERVICES 108247 5 0 16724863 0 16724863 PROGRAM SERVICE REVENUE 621110 66888661 66888661 0 0 MED ADMIN AND EDUCATION 621110 6874548 6874548 0 0 PROF SVCS PROV TO RSCH 621110 5477433 5477433 0 0 OTHER OPERATING REVENUE 621110 11853862 11853862 0 0 MEDICARE/MEDICAID PYMTS 621110 18784478 18784478 0 0 109878982 0 0 0 0 0 0 0 0 0 0 0 126603845 109878982 0 0 0 0 0 0 0 0 0 0 1754603 0 1754603 0 0 0 0 0 81101399 79152888 1948511 0 6498223 6359002 139221 0 7279643 6726996 552647 0 4323794 4115844 207950 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 2173153 1887217 285936 0 0 0 0 0 87916 85192 2724 0 0 0 0 0 0 0 0 0 2939178 2939178 0 0 17385 3853 13532 0 0 0 0 0 829551 771993 57558 0 0 0 0 0 0 0 0 0 0 0 0 0 8521122 8490244 30878 0 BILLING & COLLECTION FEES 5169136 5169136 0 0 PLAN TAX 3901582 3901582 0 0 BAD DEBT 3361899 3361899 0 0 DUES & LICENSES 153237 151617 1620 0 114970 95093 19877 128226791 123211734 5015057 0 0 0 0 0 0 0 0 12018463 10019514 0 0 0 0 0 0 0 0 573012 616784 0 0 0 0 0 0 0 0 0 0 0 0 0 0 12591475 10636298 9113777 8781546 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 9113777 8781546 X 3477698 1854752 0 0 0 0 3477698 1854752 12591475 10636298 -1622946 X false true X true false X X X false false false ANN & ROBERT H LURIE CHILDREN'S HOSPITAL OF CHICAGO 362170833 03 true true true 123211734 1 123211734 RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED false true false true false false false true false THOMAS P GREEN MD EX-OFFICIO DIR/PRES&CHAIR PFF 538805 0 224858 0 1524 0 25500 0 31704 0 822391 0 0 0 PATRICK M MAGOON EX-OFFC DIR/CEO, MED.CNTR/HOSP 0 742070 0 485310 0 44834 0 482009 0 14536 0 1768759 0 59857 RON BLAUSTEIN CFO/MED. CNTR. & AFFLTS. 0 236302 0 107868 0 4581 0 19193 0 23072 0 391016 0 0 PAULA M NOBLE CFO/TREAS/MED CT&AFF-THRU 5/14 0 398661 0 190837 0 2796 0 209940 0 13622 0 815856 0 0 DONNA S WETZLER GEN CNSL&CORP SEC/MED.CTR &AFF 0 294847 0 144238 0 159530 0 24079 0 19970 0 642664 0 0 JOHN M COSTELLO MD ATTENDING PHYSICIAN 433954 0 32639 0 120 0 25500 0 31458 0 523671 0 0 0 MARY JC HENDRIX PHD PRES & SCIEN OFF/RSCH. CNTR. 527585 0 104014 0 792 0 66528 0 21402 0 720321 0 0 0 MICHAEL D KELLEHER MD DIR/CMO, HOSP 408793 0 154264 0 516 0 25500 0 29711 0 618784 0 0 0 JEFFREY L LOUGHEAD MD ATTENDING PHYSICIAN 425603 0 22672 0 516 0 25500 0 24650 0 498941 0 0 0 ANNETTE WAGNER MD ATTENDING PHYSICIAN 265322 0 172937 0 276 0 25500 0 21124 0 485159 0 0 0 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 & 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 The following listed individuals have an amount included in Schedule J, Part II, Column (C) for and amount accrued but not vested under THE MEDICAL CENTER supplemental Executive Retirement Plan ("SERP"): Patrick M. Magoon $445,645 Paula M. Noble $182,391 Benefits earned under the 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. Also in response to question 4b, Donna S. Wetzler received vested payments from the supplemental retirement benefits under the SERP, and therefore had SERP benefits included in her taxable income of $157,524. The taxable amount represents the vested amount of benefits for service to the organization, and which became taxable and paid in 2013. Schedule J, Part I, Question 5a Employed physicians are compensated in part 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 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 Pediatrics 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 2013 Form 990 of Lurie Children's, FEIN 36-2170833. Patrick M. Magoon Ron Blaustein Paula M. Noble Donna S. Wetzler DESCRIPTION OF CLASSES OF MEMBERS OR STOCKHOLDERS FORM 990, PART VI, QUESTION 6 Children's Hospital of Chicago Medical Center ("Medical Center") is the organization's sole corporate member. Description of Classes of Persons and the Nature of Their Rights Form 990, Part VI, Question 7a 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. Descr Classes of Persons, Decisions Requiring Appr & Type of Voting Rights Form 990, Part VI, Question 7b 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. Describe the Process used by Management &/or Governing Body to Review 990 Form 990, Part VI, Question 11B A PUBLIC DISCLOSURE COPY OF THE ORGANIZATION'S FISCAL YEAR 2014 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. Description of Process to Monitor Transactions for Conflicts of Interest Form 990, Part VI, Question 12c 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. Offices & Positions for Which Process was Used, & Year Process was Begun Form 990, Part VI, Questions 15a & 15b The authority to review and approve executive compensation has been delegated to the Governance Committee of the Medical Center Board 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 and the other senior managers. The compensation philosophy is subject to periodic review for continued appropriateness by the Governance Committee. With the assistance of an independent compensation consultant and information from a variety of sources, such as compensation surveys, 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. 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 rendered. The Governance Committee was comprised of members of the Medical Center and the Lurie Children's 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. Avail of Gov Docs, Conflict of Interest Policy, & Fin Stmts to Gen Public Form 990, Part VI, Question 19 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. 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) 11 III-FI NA false LURIE CHILDREN'S 225 E CHICAGO AVE Chicago IL 60611 362170833 Hospital IL 501(C)(3) 3 Medical Ctr false CMH Self Insurance Foundation 225 E CHICAGO AVE Chicago IL 60611 366638400 Insurance IL 501(C)(3) 11 III-FI MEDICAL CTR false Almost Home Kids 7 S 721 ROUTE 53 NAPERVILLE IL 60540 363822010 Transition Cr IL 501(C)(3) 9 Medical CTR false Lurie Childrens CIN LLC 225 E CHICAGO AVE Chicago IL 606112991 901025439 Contracting Svcs IL 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 true false false false false true true false false