2014-04-25T12:10:38-05:00 2013-06-30 CROWE HORWATH LLP 70 West Madison Street Suite 700 Chicago IL 606024903 990 2012-07-01 363513954 EDWARD HEALTH SERVICES CORPORATION EDWA 6305273000 801 South Washington Street Naperville IL 60540 VINCENT E PRYOR 2014-04-23 true John V Woodhull P01305268 3128997000 2012 2015-11-30 17:44:51Z PAMELA MEYER DAVIS 801 South Washington Street Naperville IL 60540 92595284 false X WWW.EDWARD.ORG X 1987 IL TO SUPPORT AND ENCOURAGE HEALTHCARE AND RELATED SERVICES THROUGH PROVIDING FINANCIAL MANAGEMENT AND OTHER ASSISTANCE TO EDWARD HOSPITAL AND ITS AFFILIATES. 14 12 471 23 405840 -8209 0 0 64203398 69700665 2122138 3648147 3257338 7161102 69582874 80509914 0 0 0 0 34490476 37871517 0 0 0 28939059 34511511 63429535 72383028 6153339 8126886 130496812 141181831 11474090 12797334 119022722 128384497 TO SUPPORT HEALTH AND STRENGTHEN COMMUNITIES BY PROVIDING OUTSTANDING HEALTH CARE SERVICES. false false 55713798 69667374 EDWARD HEALTH SERVICES CORPORATION SUPPORTS AND ENCOURAGES HEALTHCARE AND RELATED SERVICES BY PROVIDING FINANCIAL AND MANAGEMENT ASSISTANCE TO ITS EXEMPT AFFILIATES, INCLUDING EDWARD HOSPITAL, EDWARD HEALTH VENTURES, EDWARD HEALTH AND FITNESS CENTER, AND EDWARD FOUNDATION. THE SERVICES INCLUDE PROVIDING TOP LEVEL MANAGEMENT SERVICES AS WELL AS ADMINISTRATIVE SUPPORT. 55713798 true false false true false false false false false false false true 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 79 0 true 471 true true true true CJ false false false false false false false false false X 14 12 false false false false false false false true true false false true true true true true true true true false IL X Vince Pryor 6305273035 801 S Washington St Naperville IL 60540 MARY KAY LADONE 1.00 1.00 X X 0 0 0 PAMELA M DAVIS 35.00 5.00 X X 1196045 0 229566 RONALD SCHUBEL 1.00 1.00 X X 0 0 0 ALISON BALLEW SMITH 1.00 1.00 X 0 0 0 DAVID DELGADO 1.00 1.00 X 0 0 0 GARY CIANCI MD 1.00 1.00 X 0 0 0 GREG EWERT MD 1.00 1.00 X 8000 0 0 JOSEPH BEATTY 1.00 1.00 X 0 0 0 JOSEPH DEPAULO 1.00 1.00 X 0 0 0 ROBERT PASCIAK 1.00 1.00 X 0 0 0 ROCCO MARTINO 1.00 1.00 X 0 0 0 RONALD NYBERG 1.00 2.00 X 0 0 0 TIMOTHY RIVELLI 1.00 3.00 X 0 0 0 WILLIAM WHEELER 1.00 1.00 X 0 0 0 ANNETTE KENNEY 36.00 4.00 X 281474 0 71434 BARBARA P BYRNE MD 35.00 5.00 X 367263 0 56771 BRENT E SMITH DO 38.00 2.00 X 404487 0 80049 BRIAN P DAVIS 35.00 5.00 X 269263 0 32538 CHRIS J MOLLET 35.00 5.00 X 113785 0 8388 DENNISE VAUGHN 35.00 5.00 X 291521 0 23322 MARIANNE SPENCER 39.00 1.00 X 466391 0 38021 MARY L MASTRO 36.00 4.00 X 480529 0 36627 PATTI LUDWIG-BEYMER 1.00 39.00 X 271326 25777 45292 VINCENT E PRYOR 35.00 5.00 X 575150 0 125626 WILLIAM G KOTTMANN 37.00 3.00 X 538662 0 34854 BRYANT E HAMMIG 40.00 0 X 255705 0 19857 DIANA K STUMP 40.00 0 X 173539 0 16043 JEFFREY D FRIANT 40.00 0 X 193085 0 25730 LAURA C MORGAN 40.00 0 X 172683 0 8523 SHANNON A FOX-FRASER 40.00 0 X 176733 0 15676 6235640 25777 868318 55 false true false MCKESSON SPECIALTY DISTRIB ONE POST STREET SAN FRANCISCO CA 94104 CLINICAL AND BUSINESS SUPPORT 717443 OLANDER INC 628 COLUMBUST ST SUITE 408 OTTAWA IL 61350 MARKETING - CREATE PRINT ADVERTISEMENTS 613691 MAXIT HEALTHCARE LLC 705 E MAIN STREET WESTFIELD IN 60171 CONSULTING 420535 NAVIN HAFFTY & ASSOCIATES LLC 200 CORDWAINER DRIVE SUITE 100 NORWELL MA 02061 CONSULTING 355644 VITALIZE CONSULTING SOULUTIONS INC 500 NORTH WALNUT ROAD KENNETT SQUARE PA 19348 CONSULTING 337872 25 0 MANAGEMENT FEE 561439 67756836 67756836 GROUND LEASES 532000 201828 201828 PARTNERSHIP INCOME RELATED TO PROGRAM SERVICES 900099 1142578 1142578 EPIC EHR HOSTING FEE 900099 225142 225142 PARTNERSHIP INCOME UNRELATED TO PROGRAM SERVICES 541900 33291 33291 340990 340990 0 0 69700665 1965587 1965587 0 0 0 0 0 13767930 12085370 1682560 0 1682560 1682560 0 0 0 INSURANCE ADJUSTMENT 900099 6721186 6721186 ANSWERING SERVICE 561000 372549 372549 PARKING 900099 35043 35043 32324 0 0 32324 7161102 80509914 69667374 405840 10436700 0 0 0 0 6373120 5098496 1274624 0 23457364 18765891 4691473 910897 728718 182179 5010416 4008333 1002083 2119720 1695776 423944 0 1283535 1283535 342000 342000 468 468 0 0 9997734 7998562 1999172 0 1055495 844396 211099 3274075 2619260 654815 9488630 7590904 1897726 0 4608151 3686521 921630 137930 110344 27586 0 0 0 0 0 337201 269761 67440 REPAIR AND MAINTENANCE AGREEMENTS 2513336 2010669 502667 DUES AND SUBSCRIPTIONS 389479 389479 EDUCATION 530907 530907 EMPLOYEE RECRUITMENT 188685 188685 363885 286167 77718 0 72383028 55713798 16669230 0 0 136556 -33124 0 0 2423866 2222885 0 0 0 0 44300380 43750598 0 0 57440886 69120338 26195124 26121134 130496812 141181831 11276303 12599547 0 197787 197787 11474090 12797334 X 119022722 128384497 119022722 128384497 130496812 141181831 X 8126886 2410758 -1175869 X false true X true false X X X false false false EDWARD HOSPITAL 363297173 3 true true true 53552103 EDWARD FOUNDATION 363723705 7 true true true 5571 EDWARD HEALTH AND FITNESS CENTER 363555528 9 false true true 33428 NAPERVILLE PSYCHIATRIC VENTURES DBA LINDEN OAKS HOSPITAL 363965251 3 false true true 1247989 4 54839091 DESCRIPTION OF NON-MONETARY SUPPORT, SCHEDULE A, PART I, LINE 11H, EDWARD HOSPITAL: EDWARD HEALTH SERVICES CORPORATION IS THE PARENT ORGANIZATION AND SUPPORTING ORGANIZATION TO THE HEALTH SYSTEM. THE AMOUNTS REPORTED IN SCHEDULE A, PART I, LINE 11H, COLUMN (VII) RELATE TO EXPENSES INCURRED BY THE ORGANIZATION ON BEHALF OF THE SUPPORTED ENTITIES (REIMBURSED IN WHOLE OR IN PART THROUGH MANAGEMENT FEES). NAPERVILLE PSYCHIATRIC VENTURES DBA LINDEN OAKS HOSPITAL: EDWARD HEALTH SERVICES CORPORATION IS THE PARENT ORGANIZATION AND SUPPORTING ORGANIZATION TO THE HEALTH SYSTEM. THE AMOUNTS REPORTED IN SCHEDULE A, PART I, LINE 11H, COLUMN (VII) RELATE TO EXPENSES INCURRED BY THE ORGANIZATION ON BEHALF OF THE SUPPORTED ENTITIES (REIMBURSED IN WHOLE OR IN PART THROUGH MANAGEMENT FEES). EDWARD HEALTH AND FITNESS CENTER: EDWARD HEALTH SERVICES CORPORATION IS THE PARENT ORGANIZATION AND SUPPORTING ORGANIZATION TO THE HEALTH SYSTEM. THE AMOUNTS REPORTED IN SCHEDULE A, PART I, LINE 11H, COLUMN (VII) RELATE TO EXPENSES INCURRED BY THE ORGANIZATION ON BEHALF OF THE SUPPORTED ENTITIES (REIMBURSED IN WHOLE OR IN PART THROUGH MANAGEMENT FEES). EDWARD FOUNDATION: EDWARD HEALTH SERVICES CORPORATION IS THE PARENT ORGANIZATION AND SUPPORTING ORGANIZATION TO THE HEALTH SYSTEM. THE AMOUNTS REPORTED IN SCHEDULE A, PART I, LINE 11H, COLUMN (VII) RELATE TO EXPENSES INCURRED BY THE ORGANIZATION ON BEHALF OF THE SUPPORTED ENTITIES (REIMBURSED IN WHOLE OR IN PART THROUGH MANAGEMENT FEES). , false true false false false false false false true 468 468 false Description of the activities reported on Lines 1a through 1i Schedule C, Part II-B, Line 1 EXPENSES RELATED TO GAINING SUPPORT FOR ALLOWING HOSPITALS TO KEEP PROPERTY TAX EXEMPTION STATUS. A PORTION OF PROFESSIONAL DUES WERE RELATED TO LOBBYING ACTIVITIES 0 0 0 0 0 0 INVESTMENT IN LINDEN OAKS 240744 F INVESTMENT IN CAPTIVE 68585366 F INVESTMENT IN PREMIER 244228 F INVESTMENT IN ILLINOIS HEALTH PARTNERS 50000 F 69120338 DUE FROM AFFILIATES 24303119 DUE FROM OTHERS 75298 OTHER RECEIVABLES 387893 TENANT RECEIVABLES 5961 DEFERRED COMPENSATION - SERP 1348863 26121134 0 PROFESSIONAL AND GENERAL LIABILITY 197787 197787 X 75023617 2410759 -7897056 -5486297 80509914 0 0 80509914 65661841 0 0 65661841 6721187 6721187 72383028 FIN 48 (ASC 740) footnote Schedule D, Part X, Line 2 THE CORPORATION, THE HOSPITAL, EHV, EHFC, THE FOUNDATION, AND LINDEN OAKS ARE EXEMPT FROM FEDERAL INCOME TAXES UNDER SECTION 501(C)(3) OF THE INTERNAL REVENUE CODE ON INCOME RELATED TO THEIR EXEMPT PURPOSES. ACCORDINGLY, THERE IS NO MATERIAL PROVISION FOR INCOME TAX FOR THESE ENTITIES. Other revenues in audited financial statements not in form 990 Schedule D, Part XI, Line 2d RETROSPECTIVE PREMIUM ADJUSTMENT - -6721187; PREMIER PURCHASING PARTNERS ORDINARY INCOME - -1142578; PREMIER PURCHASING PARTNERS UBI - -33291; Other expenses in form 990 not in audited financial statements Schedule D, Part XII, Line 4b RETROSPECTIVE PREMIUM ADJUSTMENT - 6721187; CENTRAL AMERICA AND THE CARIBBEAN 0 0 PROGRAM SERVICES INSURANCE 10684431 0 0 10684431 false false true false false false Method used to account for expenditures on organization's financial statements Schedule F, Part I, Line 3 CENTRAL AMERICA AND THE CARIBBEAN: ACCRUAL Method used to account for expenditures on organization's financial statements Schedule F, Part I, Line 3 CENTRAL AMERICA AND THE CARIBBEAN: ACCRUAL X true true X X X X false true false false false false false true false ANNETTE KENNEY 219730 0 50884 0 10860 0 55557 0 15877 0 352908 0 0 0 BARBARA P BYRNE MD 290087 0 65642 0 11534 0 52536 0 4235 0 424034 0 0 0 BRENT E SMITH DO 326024 0 73943 0 4521 0 72509 0 7541 0 484537 0 0 0 BRIAN P DAVIS 193001 0 45209 0 31053 0 12167 0 20371 0 301800 0 0 0 BRYANT E HAMMIG 228725 0 26122 0 857 0 9385 0 10472 0 275561 0 0 0 DENNISE VAUGHN 216813 0 49573 0 25135 0 15672 0 7650 0 314843 0 0 0 DIANA K STUMP 154754 0 17642 0 1143 0 7958 0 8086 0 189583 0 0 0 JEFFREY D FRIANT 166909 0 18815 0 7361 0 7226 0 18505 0 218815 0 0 0 LAURA C MORGAN 155826 0 16857 0 0 0 7791 0 732 0 181206 0 0 0 MARIANNE SPENCER 282494 0 65127 0 118770 0 17500 0 20521 0 504411 0 0 0 MARY L MASTRO 268556 0 80518 0 131455 0 17500 0 19127 0 517156 0 0 0 PAMELA M DAVIS 758342 0 255320 0 182383 0 217500 0 12066 0 1425610 0 0 0 PATTI LUDWIG-BEYMER 180512 22951 46676 0 44137 2827 22021 838 19826 2607 313173 29222 0 0 SHANNON A FOX-FRASER 152541 0 15421 0 8770 0 9736 0 5941 0 192409 0 0 0 VINCENT E PRYOR 425528 0 128513 0 21109 0 104500 0 21126 0 700776 0 0 0 WILLIAM G KOTTMANN 280851 0 85270 0 172541 0 17500 0 17354 0 573517 0 0 0 Health or social club dues or initiation fees Schedule J, Part I, Line 1a ALL EDWARD HEALTH SERVICES CORPORATION EMPLOYEES ARE OFFERED A MEMBERSHIP AT THE EDWARD HEALTH & FITNESS CENTER, AN AFFILIATE OF EDWARD HEALTH SERVICES CORPORATION, AS A TAXABLE EMPLOYEE BENEFIT. MEMBERS OF SENIOR MANAGEMENT (THE PRESIDENT AND VICE PRESIDENTS) ARE ALSO PROVIDED THIS BENEFIT FOR THEIR SPOUSE AND CHILDREN, ALSO AS A TAXABLE BENEFIT. THE VALUE OF THIS BENEFIT IS DETERMINED BASED UPON THE FAIR MARKET VALUE OF THESE MEMBERSHIPS, WHICH IS IN TURN DETERMINED BASED UPON THE ACTUAL AMOUNT THAT THE EDWARD HEALTH & FITNESS CENTER CHARGES TO OTHER CORPORATE CUSTOMERS. Arrangement used to establish the top management official's compensation Schedule J, Part I, Line 3 EXECUTIVE COMPENSATION, INCLUDING THE PRESIDENT AND ALL OFFICERS ("SENIOR MANAGEMENT"), IS MANAGED BY THE EDWARD HEALTH SERVICES CORPORATION EXECUTIVE COMMITTEE ("COMMITTEE"), ON BEHALF OF EDWARD HEALTH SERVICES CORPORATION AND ALL OF ITS AFFILIATES. ON AN ANNUAL BASIS, THE COMMITTEE REVIEWS COMPENSATION ARRANGEMENTS, INCLUDING THE COMPENSATION AWARD FOR THE EDWARD HEALTH SERVICES CORPORATION PRESIDENT FOR THE COMING YEAR. THE COMMITTEE CONDUCTS THE REVIEW IN A MANNER THAT WILL QUALIFY FOR THE REBUTTABLE PRESUMPTION OF REASONABLENESS UNDER THE INTERMEDIATE SANCTION RULES OF SECTION 4958 OF THE INTERNAL REVENUE CODE. AS FOR THE PRESIDENT, THIS INDIVIDUAL IS COMPENSATED WITH A COMPETITIVE BASE SALARY, ALONG WITH AN INCENTIVE PLAN WHICH IS REFLECTIVE OF EDWARD'S MARKET, AS DETERMINED BY A REVIEW OF MARKET COMPENSATION SURVEY DATA. AT THE TIME OF HIRE, THE SALARY DETERMINATION IS MADE BY GIVING CONSIDERATION TO EXPERIENCE PERTINENT TO THE ROLE FOR WHICH THE INDIVIDUAL IS TO BE HIRED. ALSO CONSIDERED ARE NICHE SKILLS OR EXPERIENCE THIS PRESIDENT BRINGS TO THE ORGANIZATION. SUPPLY AND DEMAND WILL ALSO PLAY A ROLE IN DETERMINING THE HIRE IN RATE OF PAY. BASED ON THESE FACTORS, EDWARD HEALTH SERVICES CORPORATION HUMAN RESOURCES DEPARTMENT, WHICH SUPPORTS EDWARD HEALTH SERVICES CORPORATION AND ALL OF ITS AFFILIATES, WILL ASSIGN THE PRESIDENT TO AN APPROPRIATE PAY GRADE, AND A RATE OF PAY WILL BE OFFERED WITHIN THAT PAY GRADE. ON AN ANNUAL BASIS, EDWARD HEALTH SERVICES CORPORATION HUMAN RESOURCES WORKS WITH AN INDEPENDENT THIRD PARTY COMPENSATION CONSULTANT TO CONDUCT A THOROUGH MARKET REVIEW OF ALL POSITION WHICH ARE NOT CONSIDERED SENIOR MANAGEMENT. USING A VARIETY OF SOURCES, OUR SALARY RANGES ARE COMPARED TO THE CURRENT MARKET. PAY GRADE ASSIGNMENTS, AND INDIVIDUAL RATES OF PAY, MAY CHANGE BASED ON THE RESULTS OF THIS ANNUAL MARKET REVIEW. IN ADDITION, ANNUAL MERIT INCREASES MAY BE AWARDED BASED ON EDWARD'S BUDGET FOR THE YEAR. Supplemental nonqualified retirement plan Schedule J, Part I, Line 4b INDIVIDUALS WHO HAVE THE TITLE OF VICE PRESIDENT OR HIGHER ARE ELIGIBLE TO PARTICIPATE IN A SUPPLEMENTAL EXECUTIVE RETIREMENT PLAN (SERP); ANY ELIGIBLE PARTICIPANTS MUST BE APPROVED BY THE EHSC EXECUTIVE COMMITTEE. THE SERP WAS ESTABLISHED TO RECOGNIZE THE VALUABLE CONTRIBUTIONS THAT EACH OF THE PARTICIPANTS MAKES TO THE OPERATIONS OF EDWARD HEALTH SERVICES CORPORATION AND TO REWARD CERTAIN EXECUTIVE EMPLOYEES FOR THEIR LONG-TERM SERVICE AND COMMITMENT TO EDWARD HEALTH SERVICES CORPORATION. THE SERP IS DESIGNED TO PROVIDE A FULL RETIREMENT SUPPLEMENT TO PARTICIPANTS IF THEY REMAIN WITH EDWARD HEALTH SERVICES CORPORATION UNTIL AGE 62. IN EXCHANGE FOR THIS LONG-TERM SERVICE, EHSC WANTS TO SUPPLEMENT THESE PARTICIPANTS' RETIREMENT INCOME WITH ADDITIONAL ANNUAL COMPENSATION THAT IS INVESTED IN AN ANNUITY CONTRACT; CONTRIBUTIONS ARE IMMEDIATELY VESTED. THE FOLLOWING OFFICERS RECEIVED PAYMENTS FROM A SUPPLEMENTAL EXECUTIVE RETIREMENT PLAN BYRNE, BARBARA P. -- 42,535 DAVIS, PAMELA M. -- 200,000 KENNEY, ANNETTE -- 41,589 LUDWIG-BEYMER, PATTI -- 11,761 PRYOR, VINCENT E. -- 94,500 SMITH, BRENT E. -- 60,008 Non-fixed payments Schedule J, Part I, Line 7 SCHEDULE J, PART 1, LINE 7 IS ANSWERED 'YES' BECAUSE CERTAIN INDIVIDUALS, WHOSE SALARY AND BENEFITS ARE PAID BY THE REPORTING ORGANIZATION OR A RELATED ORGANIZATION, RECEIVED A NON-FIXED PAYMENT DURING THE YEAR. THE NON-FIXED PAYMENTS ARE INCLUDED IN SCHEDULE J, PART II, COLUMN B(II). Review of form 990 by governing body Form 990, Part VI, Section B, Line 11b A DRAFT OF THE FULL FORM 990 WAS PROVIDED TO THE EDWARD HEALTH SERVICES CORPORATION AUDIT COMMITTEE, AND WAS REVIEWED WITH THE ASSISTANCE OF CROWE HORWATH. FOLLOWING REVIEW BY THE AUDIT COMMITTEE, AND PRIOR TO FILING, A FINAL COPY OF THE FORM 990 WAS THEN PROVIDED TO THE FULL BOARD OF TRUSTEES, AND KEY COMPONENTS OF THE FORM 990 WERE ALSO REVIEWED. Conflict of interest policy Form 990, Part VI, Section B, Line 12c EDWARD HEALTH SERVICES CORPORATION, ON BEHALF OF ITSELF AND ALL AFFILIATES MONITORS AND ENFORCES COMPLIANCE WITH ITS CONFLICT OF INTEREST POLICY THROUGH ANNUAL REPORTING, AND ONGOING EDUCATION. EACH YEAR, EDWARD HEALTH SERVICES CORPORATION CONDUCTS AN ANNUAL CONFLICT OF INTEREST REVIEW. THIS PROCESS INVOLVES REQUIRING ALL TRUSTEES, OFFICERS, KEY EMPLOYEES, CONTRACTED PHYSICIANS AND PHYSICIANS IN LEADERSHIP ROLES, AND MANAGEMENT LEVEL EMPLOYEES TO COMPLETE AN ELECTRONIC CONFLICT OF INTEREST QUESTIONNAIRE. THE DATA ARE REPORTED BACK TO THE DIRECTOR OF COMPLIANCE AND PRIVACY, WHO ASSESSES THE REPORTED CONFLICTS TO DETERMINE WHETHER THEY REQUIRE ANY FOLLOW-UP ACTION, INCLUDING DIVESTITURE OF ANY BUSINESS INTEREST OR POSSIBLE TERMINATION OF ANY BUSINESS RELATIONSHIP. THE DIRECTOR OF COMPLIANCE AND PRIVACY ENSURES THAT ALL REQUIRED INDIVIDUALS SUBMIT A COMPLETED QUESTIONNAIRE, AND IF NO REPORT IS COMPLETED, THE MATTER IS REPORTED TO THE BOARD OF TRUSTEES. THE BOARD OF TRUSTEES IS ALSO PROVIDED A SUMMARY REPORT OF ALL ACTUAL OR POTENTIAL CONFLICTS OF INTEREST, SO THAT THEY ARE AWARE OF THESE RELATIONSHIPS AS THE BUSINESS OF THE BOARD IS BEING CONDUCTED. IN CASES WHERE AN ACTUAL OR POTENTIAL CONFLICT IS IDENTIFIED, THE CONFLICTED INDIVIDUAL IS EDUCATED ABOUT HOW THEY SHOULD RAISE THIS ISSUE IF THEY ARE EVER IN A POSITION WHERE THEIR CONFLICT MAY BE IMPLICATED. CONFLICTED INDIVIDUALS MUST RECUSE THEMSELVES FROM VOTING, BUT, AT THE DISCRETION OF THE BOARD, MAY BE PERMITTED TO PARTICIPATE IN DISCUSSION ABOUT MATTERS IN WHICH THEY HAVE AN ACTUAL OR APPARENT CONFLICT. IN ADDITION TO THIS ANNUAL REPORTING, ALL INDIVIDUALS NOTED ABOVE ARE ADVISED THAT, PURSUANT TO THE CONFLICTS POLICY, THEY ARE REQUIRED TO REPORT TO THE DIRECTOR OF COMPLIANCE AND PRIVACY ANY ACTUAL OR POTENTIAL CONFLICTS OF INTEREST AS THEY MAY ARISE THROUGHOUT THE COURSE OF THE YEAR. Process used to establish compensation of top management official Form 990, Part VI, Section B, Line 15a EXECUTIVE COMPENSATION, INCLUDING THE CEO AND ALL OFFICERS ("SENIOR MANAGEMENT"), IS MANAGED BY THE EHSC EXECUTIVE COMMITTEE ("COMMITTEE"), ON BEHALF OF EDWARD HEALTH SERVICES CORPORATION AND ALL OF ITS AFFILIATES. ON AN ANNUAL BASIS, THE COMMITTEE REVIEWS COMPENSATION ARRANGEMENTS, AND BASED ON SUCH REVIEW, THE COMMITTEE RECOMMENDS THE COMPENSATION AWARD FOR THE EDWARD HEALTH SERVICES CORPORATION CEO FOR THE COMING YEAR TO THE EDWARD HEALTH SERVICES CORPORATION BOARD FOR APPROVAL. THE COMMITTEE CONDUCTS THE REVIEW IN A MANNER THAT WILL QUALIFY FOR THE REBUTTABLE PRESUMPTION OF REASONABLENESS UNDER THE INTERMEDIATE SANCTION RULES OF SECTION 4958 OF THE INTERNAL REVENUE CODE. TO THAT END: - THE CEO AND ALL OTHER MEMBERS OF SENIOR MANAGEMENT MAY PARTICIPATE IN THIS REVIEW PROCESS AND BE PRESENT AT MEETINGS OF THE COMMITTEE ONLY IF AND TO THE EXTENT NECESSARY TO ANSWER QUESTIONS AND PROVIDE OTHER INFORMATION THE COMMITTEE NEEDS FOR ITS ANALYSIS, ASSESSMENT AND DELIBERATIONS, AND THEY MUST OTHERWISE RECUSE THEMSELVES FROM COMMITTEE MEETINGS DURING COMMITTEE DEBATE AND VOTING ON COMPENSATION ARRANGEMENTS. - THE COMMITTEE CONFIRMS PRIOR TO COMMENCEMENT OF THE ANNUAL REVIEW THAT NO OTHER MEMBER OF THE COMMITTEE HAS A CONFLICT OF INTEREST WITH REGARD TO THE COMPENSATION MATTERS ADDRESSED IN THE REVIEW. ANY MEMBER IDENTIFIED AS HAVING A CONFLICT SHALL PARTICIPATE IN THE PROCESS ONLY TO THE SAME EXTENT AS MEMBERS OF SENIOR MANAGEMENT. - THE COMMITTEE CONDUCTS THE REVIEW WITH THE ASSISTANCE OF AN EXPERIENCED AND INDEPENDENT COMPENSATION FIRM, WHO SHALL SUMMARIZE ITS ANALYSIS AND FINDINGS IN WRITING TO THE EXECUTIVE COMMITTEE. - THE COMMITTEE OBTAINS AND RELIES UPON CURRENT, COMPARABLE MARKET COMPENSATION DATA FOR APPROPRIATE PEER ORGANIZATIONS FOR EACH COMPENSATION COMPONENT PRIOR TO MAKING ITS DETERMINATION. RELEVANT INFORMATION WILL INCLUDE COMPENSATION LEVELS PAID BY SIMILARLY SITUATED ORGANIZATIONS, BOTH TAXABLE AND TAX-EXEMPT, FOR FUNCTIONALLY COMPARABLE POSITIONS; THE AVAILABILITY OF SIMILAR SERVICES IN THE GEOGRAPHIC AREA SERVED BY EHSC; CURRENT COMPENSATION SURVEYS COMPILED BY AN INDEPENDENT FIRM; AND ACTUAL WRITTEN OFFERS FROM SIMILAR ORGANIZATIONS COMPETING FOR THE SERVICES OF THE MEMBERS OF SENIOR MANAGEMENT. - THE EXECUTIVE COMMITTEE ALSO ADEQUATELY AND PROMPTLY DOCUMENTS ITS DECISION. THE DOCUMENTATION STATES THE INTENTION TO QUALIFY FOR THE REBUTTABLE PRESUMPTION OF REASONABLENESS; THE SPECIFIC TERMS OF THE COMPENSATION ARRANGEMENT THAT WERE APPROVED; THE APPROVAL DATE; THE NAMES OF THE INDIVIDUALS PRESENT AND THOSE WHO VOTED; THE SPECIFIC COMPARABILITY DATA OBTAINED AND RELIED UPON; AND AN EXPLANATION AS TO WHY THE APPROVED AMOUNTS ARE CONSIDERED REASONABLE IF THE TERMS OF THE COMPENSATION ARRANGEMENT DIFFER FROM THE COMPARABILITY DATA. IT ALSO REFLECTS THE STEPS TAKEN BY THE COMMITTEE TO CONFIRM THE ABSENCE OF CONFLICTS ON THE PART OF ANY COMMITTEE MEMBER AND TO MEET THE FOREGOING REQUIREMENTS CONCERNING THE NATURE AND EXTENT OF PARTICIPATION OF ANY CONFLICTED COMMITTEE MEMBER OR MEMBERS OF SENIOR MANAGEMENT. IN ADDITION, THE EXECUTIVE COMMITTEE PERIODICALLY REVIEWS THE EXECUTIVE COMPENSATION PLAN, INCLUDING THE PHILOSOPHY, FOR (A) COMPLIANCE WITH APPLICABLE LAWS AND REGULATIONS, AND (B) ALIGNMENT WITH EHSC'S MISSION, CHARITABLE PURPOSES, GOALS AND STRATEGIES. BASED ON THE REVIEW, THE COMMITTEE DEVELOPS AND RECOMMENDS TO THE FULL BOARD FOR ITS APPROVAL CHANGES IN ONE OR MORE COMPONENTS OF THE PLAN OR THE PLAN PHILOSOPHY THAT THE COMMITTEE CONSIDERS NECESSARY AND APPROPRIATE RELATIVE TO ONE OR BOTH OF THESE CRITERIA. OTHER INDIVIDUALS WHO ARE KEY EMPLOYEES OF EDWARD HEALTH SERVICES CORPORATION ARE COMPENSATED WITH A COMPETITIVE BASE SALARY, ALONG WITH AN INCENTIVE PLAN, WHICH IS REFLECTIVE OF EDWARD'S MARKET, AS DETERMINED BY A REVIEW OF INDEPENDENTLY GATHERED MARKET COMPENSATION SURVEY DATA. - AT THE TIME OF HIRE, THE SALARY DETERMINATION IS MADE BY GIVING CONSIDERATION TO EXPERIENCE PERTINENT TO THE ROLE FOR WHICH THE INDIVIDUAL IS TO BE HIRED. ALSO CONSIDERED ARE NICHE SKILLS OR EXPERIENCE THIS KEY EMPLOYEE BRINGS TO THE ORGANIZATION. SUPPLY AND DEMAND WILL ALSO PLAY A ROLE IN DETERMINING THE HIRE IN RATE OF PAY. BASED ON THESE FACTORS, EDWARD HEALTH SERVICES CORPORATION HUMAN RESOURCES DEPARTMENT, WHICH SUPPORTS EDWARD HEALTH CORPORATION AND ALL OF ITS AFFILIATES, WILL ASSIGN THE KEY EMPLOYEE TO AN APPROPRIATE PAY GRADE, AND A RATE OF PAY WILL BE OFFERED WITHIN THAT PAY GRADE. - ON AN ANNUAL BASIS, EDWARD HEALTH CORPORATION HUMAN RESOURCES WORKS WITH AN INDEPENDENT THIRD PARTY COMPENSATION CONSULTANT (SULLIVAN COTTER) TO CONDUCT A THOROUGH MARKET REVIEW OF ALL POSITIONS WHICH ARE NOT CONSIDERED SENIOR MANAGEMENT. USING A VARIETY OF SOURCES, OUR SALARY RANGES ARE COMPARED TO THE CURRENT MARKET. PAY GRADE ASSIGNMENTS, AND INDIVIDUAL RATES OF PAY, MAY CHANGE BASED ON THE RESULTS OF THIS ANNUAL MARKET REVIEW. IN ADDITION, ANNUAL MERIT INCREASES MAY BE AWARDED BASED ON EDWARD'S BUDGET FOR THE YEAR. Process used to establish compensation of other officers/key employees Form 990, Part VI, Section B, Line 15b PLEASE SEE THE NARRATIVE TO FORM 990, PART VI, LINE 15A. Governing documents, conflict of interest policy and financial statements available to the public Form 990, Part VI, Section C, Line 19 CURRENTLY, THE ORGANIZATION'S GOVERNING DOCUMENTS, CONFLICT OF INTEREST POLICY AND AUDITED FINANCIAL STATEMENTS ARE AVAILABLE UPON REQUEST. IF A REQUEST IS RECEIVED FOR THIS INFORMATION, IT IS FORWARDED ON TO EITHER THE LEGAL DEPARTMENT OR THE FINANCE DEPARTMENT, AND THE MATERIALS WOULD THEN BE PROVIDED TO THE REQUESTOR. Other Expenses Form 990, Part IX, Line 11g CONSULTING - TOTAL EXPENSE: 5354656, PROGRAM SERVICE EXPENSE: 4283725, MANAGEMENT AND GENERAL EXPENSES: 1070931, FUNDRAISING EXPENSES: ; FIRE SAFETY - TOTAL EXPENSE: 112036, PROGRAM SERVICE EXPENSE: 89629, MANAGEMENT AND GENERAL EXPENSES: 22407, FUNDRAISING EXPENSES: ; SNOW PLOW/LANDSCAPING - TOTAL EXPENSE: 322942, PROGRAM SERVICE EXPENSE: 258354, MANAGEMENT AND GENERAL EXPENSES: 64588, FUNDRAISING EXPENSES: ; PHYSICIANS - TOTAL EXPENSE: 400070, PROGRAM SERVICE EXPENSE: 320056, MANAGEMENT AND GENERAL EXPENSES: 80014, FUNDRAISING EXPENSES: ; OTHER FEES - TOTAL EXPENSE: 3808030, PROGRAM SERVICE EXPENSE: 3046798, MANAGEMENT AND GENERAL EXPENSES: 761232, FUNDRAISING EXPENSES: ; Other changes in net assets or fund balances Form 990 , Part XI, Line 9 PREMIER PURCHASING PARTNERS ORDINARY INCOME - -1142578; PREMIER PURCHASING PARTNERS UBI - -33291; NAPERVILLE PSYCHIATRIC VENTURES 801 SOUTH WASHINGTON STREET NAPERVILLE IL 60540 HOSPITAL IL 501(C)(3) 3 EHV false EDWARD HEALTH VENTURES 801 SOUTH WASHINGTON STREET NAPERVILLE IL 60540 SUPPORTING ORG IL 501(C)(3) 11 - Type II EHSC true EDWARD FOUNDATION 801 SOUTH WASHINGTON STREET NAPERVILLE IL 60540 FUNDRAISING IL 501(C)(3) 7 EHSC true EDWARD HEALTH & FITNESS CENTER 801 SOUTH WASHINGTON STREET NAPERVILLE IL 60540 HEALTH CARE IL 501(C)(3) 9 EHV false EDWARD HOSPITAL 801 SOUTH WASHINGTON STREET NAPERVILLE IL 60540 HOSPITAL IL 501(C)(3) 3 EHSC true EDWARD AMBULANCE SERVICES LLC 801 SOUTH WASHINGTON NAPERVILLE IL 60540 HEALTH CARE IL 501(C)(3) 9 EH false EDWARD PHYSICIAN OFFICE CENTER 801 S WASHINGTON ST NAPERVILLE IL 60540 363524485 HEALTH CARE IL NA N/A THE CENTER FOR SURGERY LP 801 S WASHINGTON ST NAPERVILLE IL 60540 363776424 HEALTH CARE IL NA N/A EDWARD MANAGEMENT CORPORATION 801 SOUTH WASHINGTON STREET NAPERVILLE IL 60540 363833311 MANAGEMENT CORP IL EHV C CORPORATION 38902 89861 1 NAPERVILLE HEALTH CARE ASSOC LTD 801 SOUTH WASHINGTON STREET NAPERVILLE IL 60540 363651180 HEALTH CARE IL EH C CORPORATION 12148 5248314 1 EHSC CAYMAN SEGREGATED PORTFOLIO 801 SOUTH WASHINGTON STREET NAPERVILLE IL 60540 INSURANCE CJ EHSC C CORPORATION 10407074 113452718 1 true ILLINOIS HEALTH PARTNERS LLC 801 SOUTH WASHINGTON NAPERVILLE IL 60540 452389060 HEALTH CARE IL EHSC C CORPORATION 0 10122080 0.5 true false false false false false false false false false true true true true true false false true false EDWARD HOSPITAL L 65131164 EHSC MANAGEMENT FEE NAPERVILLE PSYCHIATRIC VENTURES L 2072640 EHSC MANAGEMENT FEE EDWARD HEALTH VENTURES L 1064100 EHSC MANAGEMENT FEE EDWARD HEALTH VENTURES A 1726827 ACTUAL COST EHSC CAYMAN SEGREGATED PORTFOLIO Q 10684431 ACTUAL COST EDWARD HEALTH VENTURES J 1518365 RENT CHARGED TO ENTITY EDWARD HEALTH & FITNESS CENTER L 620712 MANAGEMENT FEE CHARGED TO ENTITY