2014-04-25T12:52:24-05:00 2013-06-30 CROWE HORWATH LLP 70 West Madison Street Suite 700 Chicago IL 606024903 990 2012-07-01 363297173 EDWARD HOSPITAL 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 604780209 false X WWW.EDWARD.ORG X 1984 IL THE MISSION OF EDWARD HOSPITAL IS TO SUPPORT HEALTH AND STRENGTHEN COMMUNITIES BY PROVIDING OUTSTANDING HEALTH CARE SERVICES. EDWARD HOSPITAL PROVIDED $17,805,000 IN CHARITY CARE DURING THE FISCAL YEAR. 14 12 3463 814 1074426 62647 3104299 3261793 524283202 488901235 2741990 24866474 237168 160759 530366659 517190261 658000 683000 0 0 193768439 200762021 0 0 0 305703604 263392314 500130043 464837335 30236616 52352926 743368141 820360576 470416384 470983586 272951757 349376990 X THE MISSION OF EDWARD HOSPITAL IS TO SUPPORT HEALTH AND STRENGTHEN COMMUNITIES BY PROVIDING OUTSTANDING HEALTH CARE SERVICES. false false 343766113 683000 487683910 EDWARD HOSPITAL IS A FULL-SERVICE, REGIONAL HEALTHCARE PROVIDER OFFERING ACCESS TO COMPLEX MEDICAL SPECIALTIES AND INNOVATIVE PROGRAMMING. EDWARD HOSPITAL HAS 309 PRIVATE PATIENT ROOMS AND 4,700 EMPLOYEES, INCLUDING 1,350 NURSES AND A MEDICAL STAFF OF NEARLY 1,050 PHYSICIANS COMPRISED OF INDEPENDENT MEMBERS OF THE MEDICAL STAFF, EMPLOYED PHYSICIANS AND INDEPENDENT CONTRACTORS. THE PHYSICIANS REPRESENT 75 MEDICAL AND SURGICAL SPECIALTIES AND SUBSPECIALTIES WITH 98% BOARD CERTIFIED IN THEIR SPECIALTY -- A DESIGNATION AWARDED ONLY TO PHYSICIANS WHO COMPLETE RIGOROUS POST-MEDICAL SCHOOL TRAINING AND PASS AN EXTENSIVE CERTIFICATION TEST. EDWARD SERVES THE RESIDENTS OF CHICAGO'S WEST AND SOUTHWEST SUBURBS, INCLUDING NAPERVILLE, AURORA, BOLINGBROOK, DOWNERS GROVE, HOMER GLEN, JOLIET, LEMONT, LISLE, LOCKPORT, MINOOKA, OSWEGO, PLAINFIELD, ROMEOVILLE, SHOREWOOD, WARRENVILLE, WHEATON, WOODRIDGE AND YORKVILLE. (CONTINUED IN SCHEDULE O) 343766113 true true false true false false false false true true false false false true true false true false false false false false false false false true true true false true true false false false false false false false false true false false false false false false true true true false false true 176 0 true 3463 true true true false false false false false false false false false X 14 12 false false false false true true true true true false false true true true true true true true true true true IL X Vince Pryor 6305273035 801 S Washington Street Naperville IL 60540 MARY KAY LADONE 1.00 1.00 X X 0 0 0 PAMELA M DAVIS 1.00 39.00 X X 0 1196045 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 0 8000 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 1.00 39.00 X 0 281474 71434 BARBARA P BYRNE MD 1.00 39.00 X 0 367263 56771 BRENT E SMITH DO 1.00 39.00 X 0 404487 80049 BRIAN P DAVIS 1.00 39.00 X 0 269263 32538 CHRIS J MOLLET 1.00 39.00 X 0 113785 8388 DENNISE VAUGHN 1.00 39.00 X 0 291521 23322 MARIANNE SPENCER 1.00 39.00 X 0 466391 38021 MARY L MASTRO 1.00 39.00 X 0 480529 36627 PATTI LUDWIG-BEYMER 37.00 3.00 X 25777 271326 45292 VINCENT E PRYOR 1.00 39.00 X 0 575150 125626 WILLIAM G KOTTMANN 1.00 39.00 X 0 538662 34854 KIMBERLY J STACHE 40.00 0 X 205486 0 11549 LINDA DEVEE 40.00 0 X 163653 0 16508 LYNN L COCHRAN 40.00 0 X 181690 0 24915 YVETTE M SABA 40.00 0 X 208921 0 26202 JOHN S LEE 40.00 0 X 419149 0 36053 PETER T SCHUBEL MD 40.00 0 X 433101 0 31153 RALPH P HOOVER MD 40.00 0 X 436653 0 35816 RYAN SNITOWSKY 40.00 0 X 408798 0 26619 THOMAS A SCALETTA MD 40.00 0 X 434073 0 30653 2917300 5263895 1021956 139 false true false EDWARD HEALTH SERVICES CORPORATION 801 S WASHINGTON ST NAPERVILLE IL 60540 MANAGEMENT FEES 65219788 POWER CONSTRUCTION CO LLC 2360 PALMER DR SCHAUMBURG IL 601733819 CONSTRUCTION SERVICES 16420766 EPIC SYSTEMS CORPORATION 1979 MILKY WAY VERONA WI 53593 SOFTWARE IMPLEMENTATION/CONSULT 4015000 MIDWEST HEART SPECIALISTS 1901 S MEYERS RD SUITE 350 OAK BROOK TERRACE IL 601815207 PHYSICIAN SERVICES 2544780 MATTHEI & COLIN ASSOCIATES 332 S MICHIGAN AVENUE SUTIE 614 CHICAGO IL 60604 ARCHITECTURAL SERVICES 2213315 59 2829877 51571 380345 3261793 PATIENT SERVICE REVENUE 621990 344784093 344784093 RENTAL INCOME 532000 766492 766492 HEALTH SCREEN & AMBULATORY 623990 734228 734228 MEDICARE/MEDICAID PAYMENTS 532000 132717164 132717164 REFERENCE LAB 621500 1820829 746403 1074426 8078429 8078429 0 0 488901235 12880828 12880828 296 296 0 0 0 0 99242154 142899 87113905 12128249 142899 11985350 -142899 12128249 0 0 351004 190245 160759 160759 0 0 0 0 0 0 0 0 517190261 487683910 1074426 25170132 683000 683000 0 0 0 582532 582532 464254 464254 157261913 129679771 27582142 7525943 6214697 1311246 23798900 19652415 4146485 11128479 9189563 1938916 65131164 65131164 0 0 37847 37847 0 562253 562253 24844747 16448110 8396637 0 806010 800078 5932 94748047 93301680 1446367 0 0 9851384 9232579 618805 107193 45074 62119 0 143416 78827 64589 5729821 4684721 1045100 0 28703339 25833005 2870334 1441801 1441801 MEDICARE PROVIDER TAX 12596160 12596160 REPAIRS & MAINTENANCE 11245619 9986614 1259005 MEDICAL FEES/PHYSICIAN 6673330 6673330 COLLECTION FEES 4057267 4057267 -3287084 -3822098 535014 0 464837335 343766113 121071222 0 X 0 984611 -269111 77414712 83115572 0 0 8887729 9188572 3528234 2379341 692537628 361821294 271171849 330716334 336035833 350123992 0 0 6102504 5259765 28239795 28239795 11002874 11606316 743368141 820360576 51132399 65506455 272186755 266873280 0 147097230 138603851 470416384 470983586 X 271782585 348143372 856710 921156 312462 312462 272951757 349376990 743368141 820360576 X 52352926 16937595 7134712 X false true X true false X RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED false false false false false false false false true 37847 37847 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 EXMPTION STATUS. A PORTION OF PROFESSIONAL ASSOCIATION DUES WERE RELATED TO LOBBYING ACTIVITIES. 1169172 408204 246008 97750 1233618 1268175 750545 418012 431536 1169172 1216333 1193261 853697 287722 1268175 3343859 1808329 319197 1216333 3432137 278130 366408 3343859 0.25300 0.74700 false true true 9999826 9999826 375338014 193355623 181982391 0 243687240 161940125 81747115 63512548 6525546 56987002 330716334 0 ESTIMATED THIRD PARTY PAYOR SETTLEMENTS 96016995 INTEREST RATE SWAP 26429931 PROFESSIONAL & GENERAL LIABILITY 8710634 DEFERRED COMPENSATION 5540968 LONG TERM LEASE PAYABLE & OTHER 1905323 138603851 X 543976316 16937595 9251803 26189398 517786918 -596657 -596657 517190261 465433992 0 0 465433992 -596657 -596657 464837335 Intended uses of endowment funds Schedule D, Part V, Line 4 THERE ARE THREE PERMANENT ENDOWMENT FUNDS AND THE INTEREST EARNED ON THE FUNDS IS INTENDED TO BE USED AS FOLLOWS: 1) CARDIOVASCULAR - TO BE USED FOR THE EDWARD HOSPITAL CARDIOVASCULAR PROGRAM; 2) ANIMAL ASSISTED THERAPY - TO BE USED TO SUPPORT THE USE OF DOGS VISITING PATIENTS TO HELP RELIEVE STRESS AND IMPROVE HEALING TIMES; 3) THE BOOK SCHOLARSHIP FUND - TO HELP NURSES EDUCATIONALLY BY SUPPLEMENTING THEIR FURTHER HIGHER EDUCATIONAL EXPENSES. 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 LOSS ON INTEREST RATE SWAPS - 11791445; NET ASSET TRANSFERS FROM EDWARD FOUNDATION - -2539642; Other revenues in form 990 not in audited financial statements Schedule D, Part XI, Line 4b VALUE OF DONATED VOLUNTEER TIME - -968665; COST OF GOODS SOLD - -190245; BOND FEES - 562253; Other expenses in form 990 not in audited financial statements Schedule D, Part XII, Line 4b VALUE OF DONATED VOLUNTEER TIME - -968665; BOND FEES - 562253; COST OF GOODS SOLD - -190245; true true X true X 3 true X 6 true true true false true true 14384437 0 14384437 0.03100 30139681 15235407 14904274 0.03210 0 0 0 0.00000 0 0 44524118 15235407 29288711 0.06310 1470348 200885 1269463 0.00270 1428623 6865 1421758 0.00310 4916972 1344786 3572186 0.00760 867519 78676 788843 0.00170 1516904 891 1516013 0.00330 0 0 10200366 1632103 8568263 0.01840 0 0 54724484 16867510 37856974 0.08150 0 0.00000 20650 20650 0.00000 66191 66191 0.00010 0 0.00000 2847 2847 0.00000 97704 97704 0.00020 131222 131222 0.00020 33213 33213 0.00000 0 0.00000 0 0 351827 0 351827 0.00080 false 5180383 503607 127058177 167071214 -40013037 X true true 2 1 EDWARD HOSPITAL

801 S WASHINGTON ST NAPERVILLE IL 60540

WWW.EDWARD.ORG X X X A 2 PLAINFIELD FREE-STANDING EMERGENCY CTR

24600 W 127TH STREET PLAINFIELD IL 60585

WWW.EDWARD.ORG/EMERGENCYSERVICES X A A 1 true X X X X X X X X X 12 true true true X X X X X X X X X X X true false true true 300 true 600 true X X X X X true true X X X X true false X X true X false false Community benefit report prepared by related organization Schedule H, Part I, Line 6a EDWARD HEALTH SERVICES CORPORATION Costing Methodology used to calculate financial assistance Schedule H, Part I, Line 7 THE COSTS USED IN THE FINANCIAL ASSISTANCE (7A) AND MEDICAID (7B) SECTIONS WERE CALCULATED USING THE MEDICARE COST REPORT COST-TO-CHARGE RATIO. THE COSTS ENTERED IN THE SUBSIDIZED HEALTH SERVICES SECTION (7G) WERE CALCULATED USING A COST ACCOUNTING SYSTEM AND ADDRESSED ALL PATIENT SEGMENTS. THE COSTS ENTERED IN SECTIONS 7E, 7F, 7H AND 7I WERE CALCULATED USING A COMBINATION OF A COST ACCOUNTING SYSTEM AND ACTUAL COSTS. Bad Debt Expense excluded from financial assistance calculation Schedule H, Part I, Line 7, column(f) 0 Community Building Activities Schedule H, Part II EMPLOYEES ARE ENCOURAGED TO SERVE ON COMMUNITY BOARDS AND PARTICIPATE IN PROGRAMS AND COMMITTEES THAT ADDRESS ECONOMIC DEVELOPMENT, TRAINING, COMMUNITY HEALTH NEEDS AND IMPROVEMENT ADVOCACY, AND WORKFORCE DEVELOPMENT. EXAMPLES OF THESE PROGRAMS AND THE BENEFIT THEY PROVIDED ARE HIGHLIGHTED BELOW: ECONOMIC DEVELOPMENT COMMITTEES PROVIDE BUSINESS LEADERSHIP FOR THE BENEFIT OF COMMUNITIES BY PROMOTING ECONOMIC OPPORTUNITIES, ADVOCATING THE INTEREST OF BUSINESS, PROVIDING MEMBERS WITH EDUCATION AND RESOURCES AND ENCOURAGING MUTUAL SUPPORT. EXAMPLES OF COMMITTEES IN WHICH EDWARD EMPLOYEES ARE ACTIVELY INVOLVED INCLUDE NAPERVILLE AREA CHAMBER OF COMMERCE, WILL COUNTY CENTER FOR ECONOMIC DEVELOPMENT, PLAINFIELD ADVISORY TASK FORCE ON ECONOMIC DEVELOPMENT, YORKVILLE ECONOMIC DEVELOPMENT COMMITTEE, NAPERVILLE DEVELOPMENT PARTNERSHIP AND THE DUPAGE REGIONAL ALLIANCE. WORKFORCE DEVELOPMENT INCLUDES PROGRAMS THAT ADDRESS COMMUNITY-WIDE WORKFORCE ISSUES AND INCLUDE PROGRAMS SUCH AS HEALTHCARE CAREER DISCOVERY DAY, IN WHICH ADULTS AND CHILDREN AGES 10 AND OLDER ARE INVITED TO EXPLORE HEALTHCARE CAREERS. ADDITIONALLY, EDWARD'S CHIEF NURSING OFFICER SITS ON THE COLLEGE OF DUPAGE ADVISORY BOARD AND WORKS WITH SEVERAL OTHER LOCAL COLLEGES TO SUPPORT AND GROW THEIR NURSING PROGRAMS, INCLUDING NORTH CENTRAL COLLEGE, BENEDICTINE UNIVERSITY, AURORA UNIVERSITY AND LEWIS UNIVERSITY. COMMUNITY HEALTH IMPROVEMENT ADVOCACY INCLUDES EFFORTS TO SUPPORT POLICIES AND PROGRAMS TO SAFEGUARD OR IMPROVE PUBLIC HEALTH, ACCESS TO HEALTH CARE SERVICES, HOUSING, THE ENVIRONMENT, AND TRANSPORTATION. A HIGHLIGHTED PROGRAM IN FY2012 WAS FORWARD, (FIGHTING OBESITY, REACHING HEALTHY WEIGHT AMONG RESIDENTS OF DUPAGE), A DUPAGE COUNTY COLLABORATIVE WHOSE GOAL IS TO IMPROVE THE HEALTH AND WELLBEING OF CHILDREN AND FAMILIES IN DUPAGE COUNTY. COALITION BUILDING INCLUDES PARTICIPATION IN COMMUNITY COALITIONS AND OTHER COLLABORATIVE EFFORTS WITH THE COMMUNITY TO ADDRESS HEALTH AND SAFETY ISSUES. THIS INCLUDES PROGRAMS SUCH AS DUPAGE HEALTH COALITION, IN WHICH A SET OF INTER-CONNECTED ORGANIZATIONS, PROGRAMS, AND FACILITIES WORK TOGETHER TO PROVIDE COORDINATED MEDICAL CARE AND OTHER HEALTH-RELATED SERVICES TO DUPAGE COUNTY'S LOW-INCOME RESIDENTS. LEADERSHIP DEVELOPMENT AND TRAINING FOR COMMUNITY MEMBERS INCLUDES TRAINING IN CONFLICT RESOLUTION; CIVIC, CULTURAL, OR LANGUAGE SKILLS; AND MEDICAL INTERPRETER SKILLS FOR COMMUNITY RESIDENTS. AN EXAMPLE OF INVOLVEMENT IS HUMAN RESOURCES SENIOR STAFF EXECUTIVES PARTNERING WITH ST. JOHN'S EPISCOPAL CHURCH IN AURORA TO TEACH LEADERSHIP SESSION TO APPROXIMATELY 40 HIGH SCHOOL STUDENTS. COMMUNITY SUPPORT INCLUDES CHILD CARE AND MENTORING PROGRAMS FOR VULNERABLE POPULATIONS OR NEIGHBORHOODS, NEIGHBORHOOD SUPPORT GROUPS, VIOLENCE PREVENTION PROGRAMS, AND DISASTER READINESS AND PUBLIC HEALTH EMERGENCY ACTIVITIES, SUCH AS COMMUNITY DISEASE SURVEILLANCE OR READINESS TRAINING BEYOND WHAT IS REQUIRED BY ACCREDITING BODIES OR GOVERNMENT ENTITIES. Bad debt expense - methodology used to estimate amount Schedule H, Part III, Line 2 THE BAD DEBT ALLOWANCES ARE ESTIMATED AND RECORDED ON A MONTHLY BASIS AS PART OF THE BUDGET-TO-ACTUAL REVIEW PROCESS. THE BAD DEBT ALLOWANCES ARE REVIEWED IN CONJUNCTION WITH AN AR RATIOS ANALYSIS COMPARING THE BAD DEBT ALLOWANCES TO HISTORICAL AND CURRENT ACCOUNTS RECEIVABLE BALANCES. A 12 MONTH HINDSIGHT ANALYSIS FOR BAD DEBT IS CONDUCTED AT THE END OF EACH FISCAL YEAR. THE REPORT IS SORTED BY PAYOR AND AGED IN THE SAME MANNER AS THE ACCOUNTS RECEIVABLE AGED TRIAL BALANCE. THE NET AMOUNT OF THE BAD DEBT ACTIVITY ON THE ACCOUNTS, INCLUDING ADDITIONAL WRITEOFFS, RECOVERIES, ADJUSTMENTS, REFUNDS AND DIRECT WRITEOFFS IS THEN ACCUMULATED IN A PIVOT TABLE BY PAYOR AND BY AGING BUCKET. THESE AMOUNTS ARE THEN ENTERED INTO A BAD DEBT MATRIX THAT INCLUDED THE ACCOUNTS RECEIVABLE BY PAYOR FOR THE SAME TIME PERIOD. THE NET BAD DEBT ACTIVITY IS THEN DIVIDED INTO THE ACCOUNTS RECEIVABLE FOR EACH PAYOR AND AGING BUCKET RESULTING IN A BAD DEBT PERCENTAGE. THE COSTING METHODOLOGY IS THE COST TO CHARGE RATIO FROM THE MEDICARE COST REPORT. Bad debt expense - methodology used to estimate amount as community benefit Schedule H, Part III, Line 3 WE USE A SOFTWARE TOOL TO DETERMINE IF OUR PATIENTS ARE ELIGIBLE UNDER OUR FINANCIAL ASSISTANCE POLICY. WE ATTEMPT TO SCREEN ALL PATIENTS BUT SOME DO NOT PROVIDE ALL OF THE NECESSARY INFORMATION TO SCREEN THEM. THOSE THAT ARE NOT SCREENED WOULD BE ELIGIBLE FOR BAD DEBT PLACEMENT AND COULD HAVE QUALIFIED FOR OUR FINANCIAL ASSISTANCE POLICY. WE HAVE THE ABILITY TO REPORT THOSE PATIENTS WHO WERE NOT SCREENED AND WERE PLACED IN BAD DEBT. THE COSTING METHODOLOGY IS THE COST TO CHARGE RATIO FROM THE MEDICARE COST REPORT. MUCH OF HOSPITALS' BAD DEBT IS UNDOCUMENTED CHARITY CARE. WHILE ALL BUSINESSES INCUR BAD DEBT EXPENSES, HOSPITALS ARE DIFFERENT IN THAT THEY CONTINUE TO PROVIDE SERVICES TO PEOPLE WHO CANNOT OR WILL NOT PAY. THEREFORE A PORTION OF BAD DEBT HAS BEEN INCLUDED AS COMMUNITY BENEFIT. WE CALCULATED A PORTION OF OUR BAD DEBT THAT WOULD HAVE QUALIFIED FOR CHARITY IF THE PATIENT HAD APPLIED BY REPORTING ON THE PATIENTS WHO QUALIFIED FOR THE ILLINOIS UNINSURED DISCOUNT PROGRAM. IN ORDER TO BE ELIGIBLE FOR THIS DISCOUNT PATIENTS NEED TO HAVE A FAMILY INCOME BELOW 600% OF FEDERAL POVERTY LEVEL. FOR THOSE THAT QUALIFY THEY ARE ENTITLED TO A DISCOUNT EQUAL TO 135% OF A HOSPITAL'S COST USING THE MOST RECENT MEDICARE COST TO CHARGE RATIO. Bad debt expense - financial statement footnote Schedule H, Part III, Line 4 ACCOUNTS RECEIVABLE ARE CHARGED TO THE ALLOWANCE FOR DOUBTFUL ACCOUNTS WHEN THEY ARE DEEMED UNCOLLECTIBLE. THE CORPORATION EVALUATES THE COLLECTIBILITY OF ITS ACCOUNTS RECEIVABLE BASED ON THE LENGTH OF TIME THE RECEIVABLE IS OUTSTANDING, PAYOR CLASS, AND THE ANTICIPATED FUTURE UNCOLLECTIBLE AMOUNTS BASED ON HISTORICAL EXPERIENCE. ACCOUNTS RECEIVABLE ARE CHARGED TO THE ALLOWANCE FOR DOUBTFUL ACCOUNTS WHEN THEY ARE DEEMED UNCOLLECTIBLE. PATIENT SERVICE REVENUE IS REDUCED BY THE PROVISION FOR BAD DEBTS, AND ACCOUNTS RECEIVABLE ARE REDUCED BY AN ALLOWANCE FOR DOUBTFUL ACCOUNTS. THESE AMOUNTS ARE BASED ON MANAGEMENT'S ASSESSMENT OF HISTORICAL AND EXPECTED NET COLLECTIONS FOR EACH MAJOR PAYOR SOURCE, CONSIDERING BUSINESS AND ECONOMIC CONDITIONS, TRENDS IN HEALTH CARE COVERAGE, AND OTHER COLLECTION INDICATORS. MANAGEMENT REGULARLY REVIEWS DATA ABOUT THESE MAJOR PAYOR SOURCES OF REVENUE IN EVALUATING THE SUFFICIENCY OF THE ALLOWANCE FOR DOUBTFUL ACCOUNTS. ON THE BASIS OF HISTORICAL EXPERIENCE, A SIGNIFICANT PORTION OF THE CORPORATION'S UNINSURED PATIENTS WILL BE UNABLE OR UNWILLING TO PAY FOR THE SERVICES PROVIDED. THUS, THE CORPORATION RECORDS A SIGNIFICANT PROVISION FOR BAD DEBTS IN THE PERIOD SERVICES ARE PROVIDED RELATED TO SELF-PAY PATIENTS, INCLUDING BOTH UNINSURED PATIENTS AND PATIENTS WITH DEDUCTIBLE AND CO-PAYMENT BALANCES DUE FOR WHICH THIRD-PARTY COVERAGE EXISTS FOR A PORTION OF THEIR BALANCE. FOR RECEIVABLES ASSOCIATED WITH PATIENTS WHO HAVE THIRD PARTY COVERAGE, THE CORPORATION ANALYZES CONTRACTUALLY DUE AMOUNTS AND PROVIDES AN ALLOWANCE FOR DOUBTFUL ACCOUNTS AND A PROVISION FOR BAD DEBTS, IF NECESSARY. ACCOUNTS RECEIVABLE ARE WRITTEN OFF AFTER COLLECTION EFFORTS HAVE BEEN FOLLOWED IN ACCORDANCE WITH THE CORPORATION'S POLICIES. THE CORPORATION'S ALLOWANCE FOR DOUBTFUL ACCOUNTS WAS 17.5% AND 19.4% OF TOTAL ACCOUNTS RECEIVABLE AS OF JUNE 30, 2013 AND 2012, RESPECTIVELY. THE CORPORATION'S COMBINED ALLOWANCE FOR DOUBTFUL ACCOUNTS AND CHARITY CARE COVERED 51.0% AND 75.4% OF SELF-PAY ACCOUNTS RECEIVABLE AT JUNE 30, 2013 AND 2012, RESPECTIVELY. THE CORPORATION'S WRITE-OFFS TO THE ALLOWANCE FOR DOUBTFUL ACCOUNTS WERE $29,375 AND $34,817 FOR THE YEARS ENDED JUNE 30, 2013 AND 2012 RESPECTIVELY. THIS DECREASE WAS THE RESULT OF POSITIVE TRENDS EXPERIENCED IN COLLECTING THE AMOUNTS DUE FROM THE PATIENT. THE CORPORATION HAS NOT CHANGED ITS CHARITY CARE OR UNINSURED DISCOUNT POLICIES FROM FISCAL YEAR 2012 TO FISCAL YEAR 2013. IN ADDITION, THE CORPORATION HAS NOT CHANGED ITS PROCESS FOR ESTIMATING THE ALLOWANCE FOR DOUBTFUL ACCOUNTS. Community benefit & methodology for determining medicare costs Schedule H, Part III, Line 8 IF EDWARD HOSPITAL DISCONTINUED UNPROFITABLE SERVICES, IT WOULD BECOME THE RESPONSIBILITY OF THE GOVERNMENT OR ANOTHER PROVIDER TO CARE FOR MEDICARE PATIENTS. THIS WOULD ULTIMATELY RESULT IN ACCESS ISSUES, AS WE ARE SEEING TODAY DUE TO THE LOSSES THAT FACILITIES INCUR FOR PROVIDING CARE TO MEDICARE PATIENTS. THEREFORE THE SHORTFALL INCURRED BY CONTINUING TO PROVIDE THESE SERVICES IS CONSIDERED A COMMUNITY BENEFIT. COSTING METHODOLOGY: THE MEDICARE COST REPORT COST-TO-CHARGE RATIO WAS USED TO ESTIMATE COST. Collection practices for patients eligible for financial assistance Schedule H, Part III, Line 9b IT IS OUR POLICY NOT TO PURSUE COLLECTION PRACTICES AGAINST PATIENTS WHO QUALIFY FOR FINANCIAL ASSISTANCE. IF A PATIENT QUALIFIES FOR FINANCIAL ASSISTANCE DURING THE COLLECTION PROCESS, THE COLLECTION EFFORTS CEASE. Community Served by Needs Assessment Schedule H, Part V Section B, Line 3 (1) EDWARD HOSPITAL - AS PART OF THE COMMUNITY HEALTH ASSESSMENT, TWO FOCUS GROUPS WERE HELD ON JUNE 19 AND JUNE 26, 2012 (ONE FOCUSING ON NEEDS IN DUPAGE COUNTY ONLY, AND ONE FOCUSING ON NEEDS IN BOTH DUPAGE AND WILL COUNTIES). IN ALL, 15 KEY INFORMANTS TOOK PART, INCLUDING: REPRESENTATIVES FROM PUBLIC HEALTH; PHYSICIANS, OTHER HEALTH PROFESSIONALS, SOCIAL SERVICE PROVIDERS, AND OTHER COMMUNITY LEADERS. A LIST OF RECOMMENDED PARTICIPANTS FOR FOCUS GROUPS WERE PROVIDED BY THE SPONSORS. POTENTIAL PARTICIPANTS WERE CHOSEN BECAUSE OF THEIR ABILITY TO IDENTIFY PRIMARY CONCERNS OF THE POPULATIONS WITH WHOM THEY WORK, AS WELL AS OF THE COMMUNITY OVERALL. PARTICIPANTS INCLUDED A REPRESENTATIVE OF PUBLIC HEALTH, AS WELL AS SEVERAL INDIVIDUALS WHO WORK WITH LOW-INCOME, MINORITY OR OTHER MEDICALLY UNDERSERVED POPULATIONS, AND THOSE WHO WORK WITH PERSONS WITH CHRONIC DISEASE CONDITIONS. FOCUS GROUP CANDIDATES WERE FIRST CONTACTED BY LETTER TO REQUEST THEIR PARTICIPATION. FOLLOW-UP PHONE CALLS WERE THEN MADE TO ASCERTAIN WHETHER OR NOT THEY WOULD BE ABLE TO ATTEND. CONFIRMATION CALLS WERE PLACED THE DAY BEFORE THE GROUP WAS SCHEDULED TO INSURE A REASONABLE TURNOUT. ORGANIZATIONS PROVIDING INPUT TO THIS PROCESS THROUGH THE FOCUS GROUPS ARE OUTLINED BELOW: ORGANIZATIONS REPRESENTED 360 YOUTH SERVICES ACCESS DUPAGE DUPAGE COUNTY HEALTH DEPARTMENT DUPAGE HEALTH COALITION LISLE WOODRIDGE FIRE PROTECTION DISTRICT LITTLE FRIENDS, INC. MANORCARE HEALTH SERVICES - NAPERVILLE NAPERVILLE FIRE DEPARTMENT PHYSICIAN ROMEOVILLE FIRE DEPARTMENT WILL COUNTY HEALTH DEPARTMENT WINFIELD SCHOOLS AUDIO FROM THE FOCUS GROUP SESSION WAS RECORDED, FROM WHICH VERBATIM COMMENTS IN THIS REPORT ARE TAKEN. THERE ARE NO NAMES CONNECTED WITH THE COMMENTS, AS PARTICIPANTS WERE ASKED TO SPEAK CANDIDLY AND ASSURED OF CONFIDENTIALITY. ;(2) PLAINFIELD FREE-STANDING EMERGENCY CTR - EDWARD ACTIVELY SEEKS AND ENCOURAGES COLLARBOATION, INFORMATION AND INPUT FROM THE BROAD COMMUNITY. THIS INFORMATION IS A PIVOTAL PART OF THE COMMUNITY BENEFITS PLAN AND INCLUDES INPUT FROM VARIOUS SOURCES, INCLUDING ACCESS DUPAGE, A COMMUNITY BASED PROGRAM THAT PROVIDES ESSENTIAL HEALTH CARE SERVICES TO UNDER AND UN-INSURED RESIDENTS OF DUPAGE COUNTY, AND THE EDWARD PATIENT FAMILY ADVISORY COUNCIL, WHICH CONSISTS OF VOLUNTEER PATIENTS AND/OR FAMILIES OF PATIENTS THAT HAVE RECEIVED EDWARD OR LINDEN OAKS SERVICES, AND THE WILL COUNTY MOBILIZING FOR ACTION THROUGH PLANNING AND PARTNERSHIPS (MAPP) COMMITTEE, WHICH CONSISTS OF NON-PROFIT ORGANIZATIONS THAT PROVIDE SERVICES TO THE WILL COUNTY AREA WITH THE COMMON GOAL OF IMPROVING COMMUNITY HEALTH STATUS. EDWARD AND LINDEN OAKS COLLABORATED WITH THESE COMMUNITY GROUPS ON TOPICS SUCH AS FINANCIAL ASSISTANCE AND CHARITY CARE POLICIES, ACCESS TO CARE FOR THE INDIGENT AND CHRONIC CARE MANAGEMENT. ; Other Hospital Facilities included in Needs Assessment Schedule H, Part V Section B, Line 4 (1) EDWARD HOSPITAL - LINDEN OAKS HOSPITAL;(2) PLAINFIELD FREE-STANDING EMERGENCY CTR - LINDEN OAKS HOSPITAL; Availability of Needs Assessment Schedule H, Part V Section B, Line 5c (1) EDWARD HOSPITAL - THE COMMUNITY HEALTH NEEDS ASSESSMENT IS AVAILABLE TO THE PUBLIC USING THE FOLLOWING URL: HTTP://EDWARD.HEALTHFORECAST.NET. HEALTHFORECAST.NET IS AN INTERACTIVE, DYNAMIC TOOL DESIGNED TO SHARE COMMUNITY HEALTH NEEDS ASSESSMENT DATA WITH COMMUNITY PARTNERS AND THE PUBLIC AT LARGE. THIS SITE: * INFORMS READERS THAT THE COMMUNITY HEALTH NEEDS ASSESSMENT REPORT IS AVAILABLE AND PROVIDES INSTRUCTIONS FOR DOWNLOADING IT; * OFFERS THE COMMUNITY HEALTH NEEDS ASSESSMENT REPORT DOCUMENT IN A FORMAT THAT, WHEN ACCESSED, DOWNLOADED, VIEWED, AND PRINTED IN HARD COPY, EXACTLY REPRODUCES THE IMAGE OF THE REPORT; * GRANTS ACCESS TO DOWNLOAD, VIEW, AND PRINT THE DOCUMENT WITHOUT SPECIAL COMPUTER HARDWARE OR SOFTWARE REQUIRED FOR THAT FORMAT (OTHER THAN SOFTWARE THAT IS READILY AVAILABLE TO MEMBERS OF THE PUBLIC WITHOUT PAYMENT OF ANY FEE) AND WITHOUT PAYMENT OF A FEE TO THE HOSPITAL ORGANIZATION OR FACILITY OR TO ANOTHER ENTITY MAINTAINING THE WEBSITE. LINKS TO THIS DEDICATED SITE ARE ALSO MADE AVAILABLE ON EDWARD'S WEBSITE AT: HTTP://WWW.EDWARD.ORG. EDWARD WILL PROVIDE ANY INDIVIDUAL REQUESTING A COPY OF THE WRITTEN REPORT WITH THE DIRECT WEBSITE ADDRESS, OR URL, WHERE THE DOCUMENT CAN BE ACCESSED. EDWARD WILL ALSO MAINTAIN AT ITS FACILITIES A HARD COPY OF THE COMMUNITY HEALTH NEEDS ASSESSMENT REPORT THAT MAY BE VIEWED BY ANY WHO REQUEST IT. ;(2) PLAINFIELD FREE-STANDING EMERGENCY CTR - EHSC POSTS THE FOLLOWING INSTRUCTIONS ON THE PUBLIC WEBSITE: EHSC ANNUALLY FILES A REPORT OF ITS COMMUNITY BENEFIT PLAN WITH THE ILLINOIS ATTORNEY GENERAL'S OFFICE. THIS REPORT IS PUBLIC INFORMATION AND AVAILABLE TO THE PUBLIC BY CONTACTING: CHARITABLE TRUSTS BUREAU OFFICE OF THE ATTORNEY GENERAL 100 W. RANDOLPH ST. THIRD FLOOR CHICAGO, ILLINOIS 60601-3175 (312) 814-3942; Needs assessment. Schedule H, Part VI, Line 2 PLANNING FOR COMMUNITY BENEFITS IS AN INTEGRAL PART OF THE EDWARD STRATEGIC PLANNING PROCESS, WHICH FOLLOWS A THREE-YEAR CYCLE WITH INTERIM ANNUAL REVIEWS AND UPDATES. THE PROCESS BRINGS TOGETHER DEMOGRAPHICS, PUBLIC HEALTH STATISTICS AND INPUT FROM REPRESENTATIVES FROM THE COMMUNITY, INCLUDING PATIENTS AND PROVIDER AGENCIES. THE OVERARCHING GOAL OF THIS PROCESS IS TO UNDERSTAND THE CRUCIAL HEALTH ISSUES IN THE COMMUNITY IN ORDER TO ENSURE ORGANIZATIONAL RESPONSIVENESS AND APPROPRIATE PRIORITIZATION OF RESOURCES. Patient education of eligibility for assistance. Schedule H, Part VI, Line 3 INFORMING OUR PATIENTS THAT FINANCIAL ASSISTANCE IS AVAILABLE IS AN IMPORTANT PART OF EDWARD HOSPITAL FINANCIAL ASSISTANCE PROGRAM. FINANCIAL ASSISTANCE IS AVAILABLE TO THE UNDER-INSURED AS WELL AS THE UNINSURED. INFORMATION ABOUT OUR FINANCIAL ASSISTANCE PROGRAM AND THE APPLICATION IS AVAILABLE ON EDWARD'S WEBSITE IN ENGLISH AND SPANISH. PATIENT STATEMENTS ALSO INCLUDE THE INFORMATION ON HOW TO OBTAIN A FINANCIAL ASSISTANCE APPLICATION. UNISURED INPATIENTS ARE SCREENED FOR ELIGIBILITY FOR GOVERMENTAL PROGRAMS. PATIENTS WHO DO NOT QUALIFY FOR SUCH PROGRAMS ARE GIVEN A FINANCIAL ASSISTANCE APPLICATION. SIGNAGE IS POSTED AT ALL OUTPATIENT REGISTRATION AREAS INCLUDING THE EMERGENCY DEPARTMENT. ALSO, OUR CUSTOMER SERVICE DEPARTMENT AND FINANCIAL COUNSELORS ARE AVAILABLE TO ASSIST PATIENTS WHO ARE HAVING DIFFICULTY PAYING THEIR BILL AND THE NEED FOR FINANCIAL ASSISTANCE. Community information. Schedule H, Part VI, Line 4 EDWARD HOSPITAL & HEALTH SERVICES (ALSO KNOWN AS EDWARD HEALTH SERVICES CORPORATION AND REFERRED TO AS EDWARD) IS A FULL-SERVICE, REGIONAL HEALTHCARE PROVIDER OFFERING ACCESS TO A FULL RANGE OF HEALTH CARE SERVICES, INCLUDING PRIMARY CARE, COMPLEX MEDICAL SPECIALTIES, AND INNOVATIVE PROGRAMMING FOR RESIDENTS OF CHICAGO'S WEST AND SOUTHWEST SUBURBS. THE STUDY AREA FOR THE SURVEY EFFORT (REFERRED TO AS THE "EDWARD HOSPITAL SERVICE AREA," "EH SERVICE AREA" OR "EHSA" IN THIS REPORT) IS DEFINED AS THE FOLLOWING RESIDENTIAL ZIP CODES IN PORTIONS OF DUPAGE, WILL AND KENDALL COUNTIES, ILLINOIS: 60502; 60504; 60517; 60532; 60540; 60555; 60563; 60565; 60440; 60446; 60490; 60503; 60543; 60544; 60560; 60564; 60585; AND 60586. THIS COMMUNITY DEFINITION WAS DETERMINED BECAUSE 80% OF EDWARD PATIENTS ORIGINATE FROM THIS AREA. OTHER HOSPITALS SERVING THE COMMUNITY EDWARD COLLABORATES WITH A NUMBER OF HOSPITALS TO SERVE THIS COMMUNITY, INCLUDING RUSH-COPLEY MEDICAL CENTER, ADVENTIST BOLINGBROOK HOSPITAL, ADVOCATE GOOD SAMARITAN HOSPITAL, PROVENA SAINT JOSEPH MEDICAL CENTER, CENTRAL DUPAGE HOSPITAL, LINDEN OAKS AT EDWARD, ADVENTIST HINSDALE HOSPITAL, PROVENA MERCY MEDICAL CENTER. RACE AND ETHNICITY THE RACIAL AND ETHNIC COMPOSITION OF EDWARD'S SERVICE AREA IS SUMMARIZED BELOW. EDWARD HAS A SIGNIFICANTLY HIGHER PERCENTAGE OF RESIDENTS WITH ASIAN ETHNICITY (OVER 10 PERCENT) THAN EITHER ILLINOIS OR THE UNITED STATES. FIFTEEN PERCENT (15%) OF AREA RESIDENTS ARE OF HISPANIC/LATINO ETHNICITY, ROUGHLY CONSISTENT WITH THE STATE OF ILLINOIS AND SLIGHTLY LOWER THAN THE NATION AS A WHOLE. *INFORMATION PROVIDED BY US CENSUS (2012 ESTIMATED POPULATION BY SINGLE RACE CLASSIFICATION) POVERTY THE NUMBER AND PERCENTAGE OF LOWER-INCOME RESIDENTS INCREASED IN 2010 ACCORDING TO THE MOST RECENTLY AVAILABLE DATA FROM THE US CENSUS BUREAU. THE PERCENTAGE OF INDIVIDUALS AT OR BELOW THE POVERTY LEVEL IS NOW AT 6.9% IN DUPAGE COUNTY AND 8.5% IN WILL COUNTY. WHILE THIS IS LOWER THAN THE STATE AVERAGE, IT NEVERTHELESS REPRESENTS A SIGNIFICANT NUMBER OF INDIVIDUALS-IN FACT, NEARLY 120,000 -LIVING AT OR BELOW THE POVERTY LEVEL IN DUPAGE AND WILL COUNTIES. THE INCREASE IN POVERTY IS STRAINING THE PUBLIC SYSTEM'S ABILITY TO FUND HEALTH CARE SERVICES FOR THESE VULNERABLE POPULATION. ACCORDING TO THE HEALTH RESOURCE SERVICE ADMINISTRATION (HRSA), WILL COUNTY, AN AREA WHICH 40% OF EDWARD ADMISSIONS WERE FROM, HAS BEEN DESIGNATED AS HAVING MEDICALLY UNDERSERVED POPULATIONS (MUPS) REFLECTING A HIGH NUMBER OF INDIVIDUALS FACING ECONOMIC, CULTURAL OR LINGUISTIC BARRIERS TO HEALTH CARE. Promotion of community health Schedule H, Part VI, Line 5 THE MAJORITY OF THE ORGANIZATION'S GOVERNING BODY IS COMPRISED OF PERSONS WHO RESIDE IN THE PRIMARY SERVICE AREA AND ARE NEITHER EMPLOYEES NOR INDEPENDENT CONTRACTORS OF THE ORGANIZATION, NOR FAMILY MEMBERS THEREOF. THE ORGANIZATION EXTENDS MEDICAL STAFF PRIVILEGES TO ALL QUALIFIED PHYSICIANS IN ITS COMMUNITY FOR ALL DEPARTMENTS. AS A NOT-FOR-PROFIT ORGANIZATION, EDWARD RE-INVESTS EARNINGS IN THE ORGANIZATION TO MAINTAIN AND ENHANCE SERVICES THAT BENEFIT ITS COMMUNITY. THE ORGANIZATION DEVELOPS AND UPDATES A STRATEGIC PLAN ON A REGULAR BASIS TO IDENTIFY NEEDS AND OPPORTUNITIES TO DEPLOY EXCESS FUNDS (REVENUE IN EXCESS OF EXPENDITURES). PROJECTS ARE EVALUATED BASED ON ORGANIZATIONAL OBJECTIVES AND COMMUNITY NEEDS, AND ARE PRIORITIZED BY SENIOR MANAGEMENT AND THE BOARD OF TRUSTEES. Affiliated health care system Schedule H, Part VI, Line 6 EDWARD HOSPITAL AND LINDEN OAKS HOSPITAL ARE PART OF AN AFFILIATED HEALTH SYSTEM, EDWARD HEALTH SERVICES CORPORATION (EHSC). THE COMMUNITY NEED ASSESSMENT AND THE DEVELOPMENT AND MANAGEMENT OF THE COMMUNITY BENEFIT STRATEGIC PLAN IS PROVIDED BY EHSC. BOTH HOSPITALS PLAY A VITAL ROLE IN IMPLEMENTING THE INITIATIVES SET FORTH IN THE STRATEGIC PLAN BY PROVIDING THE COMMUNITY BENEFIT SERVICES THAT ARE QUANTIFIED IN PART I AND PART II OF SCHEDULE H FOR EACH OF THE HOSPITAL TAX FILINGS. State filing of community benefit report Schedule H, Part VI, Line 7 IL true ACCESS DUPAGE 511 THORNHILL DR CAROL STREAM IL 60188 364448208 501(C)(3) 683000 0 N/A N/A PROGRAM SUPPORT 1 0 Procedures for monitoring use of grant funds Schedule I, Part I, Line 2 MONITORING OF THE USE OF GRANT FUNDS IS ACHIEVED THROUGH VARIOUS MEANS, INCLUDING ACTIVE PARTICIPATION IN PROGRAM IMPLEMENTATION, WRITTEN CONTRIBUTION AGREEMENTS, AND/OR PERFORMANCE REPORTS. X true true false true false false false false false true false ANNETTE KENNEY 0 219730 0 50884 0 10860 0 55557 0 15877 0 352908 0 0 BARBARA P BYRNE MD 0 290087 0 65642 0 11534 0 52536 0 4235 0 424034 0 0 BRENT E SMITH DO 0 326024 0 73943 0 4521 0 72509 0 7541 0 484537 0 0 BRIAN P DAVIS 0 193001 0 45209 0 31053 0 12167 0 20371 0 301800 0 0 DENNISE VAUGHN 0 216813 0 49573 0 25135 0 15672 0 7650 0 314843 0 0 JOHN S LEE 290094 0 0 0 129055 0 17500 0 18553 0 455202 0 0 0 KIMBERLY J STACHE 184300 0 20804 0 381 0 9384 0 2164 0 217034 0 0 0 LINDA DEVEE 141594 0 15833 0 6226 0 10360 0 6148 0 180161 0 0 0 LYNN L COCHRAN 155427 0 18252 0 8011 0 11930 0 12986 0 206605 0 0 0 MARIANNE SPENCER 0 282494 0 65127 0 118770 0 17500 0 20521 0 504411 0 0 MARY L MASTRO 0 268556 0 80518 0 131455 0 17500 0 19127 0 517156 0 0 PAMELA M DAVIS 0 758342 0 255320 0 182383 0 217500 0 12066 0 1425610 0 0 PATTI LUDWIG-BEYMER 22951 180512 0 46676 2827 44137 838 22021 2607 19826 29222 313173 0 0 PETER T SCHUBEL MD 333537 0 0 0 99564 0 15000 0 16153 0 464253 0 0 0 RALPH P HOOVER MD 289394 0 0 0 147258 0 17463 0 18353 0 472468 0 0 0 RYAN SNITOWSKY 291658 0 0 0 117139 0 12500 0 14119 0 435417 0 0 0 THOMAS A SCALETTA MD 349700 0 2500 0 81873 0 12500 0 18153 0 464726 0 0 0 VINCENT E PRYOR 0 425528 0 128513 0 21109 0 104500 0 21126 0 700776 0 0 WILLIAM G KOTTMANN 0 280851 0 85270 0 172541 0 17500 0 17354 0 573517 0 0 YVETTE M SABA 175094 0 20358 0 13469 0 11684 0 14518 0 235123 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, INCLUDING EDWARD HOSPITAL. ON AN ANNUAL BASIS, THE COMMITTEE REVIEWS COMPENSATION ARRANGEMENTS, INCLUDING THE COMPENSATION AWARD FOR THE EDWARD HOSPITAL 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 EDWARDS 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, INCLUDING EDWARD HOSPITAL, 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 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, EDWARD HEALTH SERVICES CORPORATION 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). A ILLINOIS FINANCE AUTHORITY SERIES 2008A 861091967 45200FFF1 2008-04-09 85733137 SEE PART VI false false false B ILLINOIS FINANCE AUTHORITY SERIES 2008 B-1 B-2 & C 861091967 45200FFY0 2008-04-30 126220000 SEE PART VI false false false C ILLINOIS FINANCE AUTHORITY SERIES 2009-A 861091967 45200FB65 2009-10-28 43500000 SEE PART VI false false false D ILLINOIS FINANCE AUTHORITY SERIES 2012A 861091967 2012-03-02 26025000 SEE PART VI false false false A 0 0 85733137 0 0 85733137 0 0 0 0 0 0 2008 true false true true B 11675000 0 126220000 0 0 0 344612 0 0 0 125875388 0 2008 true false true true C 305000 0 43500000 0 0 0 707220 0 0 0 42792780 0 2009 true false true true D 2685000 0 26025000 0 0 0 250000 0 0 6344198 19430802 0 2013 true false true true A false false false true false false 0.0000 0.0000 0.0000 false false 0 false true B false false false true false false 0.0000 0.0030 0.0030 false false 0 false true C false false true true false false 0.0000 0.0240 0.0240 false false 0 false true D false false false false false false 0.0000 0.0380 0.0380 false false 0 false true A false false false true false false 0.0 false false false 0.0 false false true B false false false true true true CITIGROUPGOLDMAN SACHDEUTSCHE BANK 33.0 true false false 0.0 false false true C false true false false true true JP MORGAN CHASE 30.0 false false false 0.0 false false true D false true false false false false 0.0 false false false 0.0 false false true A true B true C true D true DESCRIPTION OF PURPOSE SCHEDULE K, PART I, COLUMN (F) THE PURPOSE OF THE ISSUANCE OF THE BONDS REPORTED IN SCHEDULE K ARE AS FOLLOWS: ILLINOIS FINANCE AUTHORITY SERIES 2008A THESE REVENUE BONDS WERE USED TO REFUND THE 7/1/1998 BOND ISSUE. ILLINOIS FINANCE AUTHORITY SERIES 2008 B-1, B-2, & C THESE REVENUE REFUNDING BONDS WERE USED TO REFUND THE 3/7/2007 BOND ISSUE. ILLINOIS FINANCE AUTHORITY SERIES 2009-A THESE REVENUE REFUNDING BONDS WERE USED TO REFUND THE 4/4/2001 AND THE 7/1/2005 BOND ISSUES. ILLINOIS FINANCE AUTHORITY SERIES 2012-A THESE BONDS WERE USED TO FINANCE VARIOUS CONSTRUCTION PROJECTS AND REFUND THE 4/4/2001 BOND ISSUE. ISSUER NAME: Illinois Finance Authority Series 2008A: No Rebate Due. Schedule K, Part IV, Line 2c THE CALCULATION FOR COMPUTING NO REBATE DUE WAS PERFORMED ON FEBRUARY 15, 2013. ISSUER NAME: Illinois Finance Authority Series 2008 B-1, B-2, & C: No Rebate Due. Schedule K, Part IV, Line 2c THE CALCULATION FOR COMPUTING NO REBATE DUE WAS PERFORMED ON FEBRUARY 15, 2013. PETER SCHUBEL MD FAMILY MEMBER OF RONALD SCHUBEL, CHAIRMAN/TRUSTEE 464254 EMPLOYMENT AS EMERGENCY DEPARTMENT PHYSICIAN false VOLUNTEERS FORM 990, PART I, LINE 6 OUR VOLUNTEERS WORK IN A LARGE MAJORITY OF AREAS THROUGHOUT THE ORGANIZATION. THE RESPONSIBILITY THE VOLUNTEER HAS VARIES, DEPENDENT ON THE AREA THEY ARE VOLUNTEERING IN AND THE PROJECTS TO BE COMPLETED. VOLUNTEERS HAVE ASSISTED WITH CLERICAL WORK, DATA ENTRY, MEETING AND GREETING, FRIENDLY VISITS, ESCORTING AND PROVIDING GENERAL INFORMATION TO PATIENTS AND VISITORS. WE TRACK OUR VOLUNTEER HOURS MONTHLY. ALL OF THE VOLUNTEERS SIGN IN AND OUT EACH SHIFT THEY COME IN AND WE COLLECT THE SIGN IN SHEETS AT THE END OF THE MONTH. THROUGHOUT THE ORGANIZATION, FOR THE FISCAL YEAR ENDED JUNE 30, 2013 OUR VOLUNTEERS GAVE 89,000 HOURS OF SERVICE. PROGRAM SERVICE DESCRIPTION FORM 990, PART III, LINE 4A ACCREDITED BY THE JOINT COMMISSION, EDWARD HAS EARNED A REPUTATION AS A LEADER IN COMPLEX MEDICAL SPECIALTIES AND INNOVATIVE PROGRAMMING, INCLUDING, BUT NOT LIMITED TO THE FOLLOWING: -- MOST UP-TO-DATE SURGICAL SUITES, INCLUDING SIX STATE-OF-THE-ART OPERATING ROOMS FOR MINIMALLY INVASIVE SURGICAL PROCEDURES AND THE DA VINCI SI ROBOTIC SURGICAL SYSTEM. -- COMPREHENSIVE, ADVANCED CARDIAC CARE IN ONE LOCATION THROUGH EDWARD HEART HOSPITAL (THE FIRST SUCH FACILITY IN ILLINOIS, OPENED IN 2002). -- HEARTAWARE, AN ONLINE TEST SO PEOPLE CAN DETERMINE THEIR RISK FOR HEART DISEASE AND AN INITIATIVE TO ENHANCE AND PROMOTE THE PREVENTION OF HEART DISEASE. -- EDWARD PROVIDES WORLD CLASS STROKE CARE THROUGH THE EDWARD NEUROSCIENCES INSTITUTE IN AFFILIATION WITH THE NORTHWESTERN MEDICAL FACULTY FOUNDATION. THE INSTITUTE FEATURES THE MOST ADVANCED INTERVENTIONAL NEUROSURGERY TECHNIQUES AND DRUG THERAPIES TO TREAT STROKES AND OTHER NEUROLOGICAL DISORDERS. -- EDWARD CANCER CENTER HAS OPENED A NUMBER OF MULTIDISCIPLINARY ONCOLOGY CLINICS, INCLUDING A MULTIDISCIPLINARY THORACIC ONCOLOGY CLINIC, THE FIRST OF ITS KIND IN DUPAGE, WILL AND KANE COUNTIES, FOR COORDINATED, FASTER, MORE EFFICIENT TREATMENT OF LUNG CANCER AND OTHER MALIGNANCIES AND ABNORMALITIES OF THE CHEST; A NEURO-ONCOLOGY MULTIDISCIPLINARY CENTER, THE ONLY ONE IN THE AREA TO TREAT BRAIN AND SPINAL CORD TUMORS AND A BREAST CANCER CONFERENCE, A MULTIDISCIPLINARY TEAM THAT MEETS WEEKLY TO DETERMINE THE BEST TREATMENT PLAN FOR NEWLY DIAGNOSED BREAST CANCER PATIENTS. -- EDWARD WAS RE-DESIGNATED A MAGNET HOSPITAL FOR NURSING EXCELLENCE IN 2010 AFTER RECEIVING ITS ORIGINAL DESIGNATION IN 2005. EDWARD IS ONE OF ONLY THREE HOSPITALS IN DUPAGE COUNTY AND THE ONLY ONE SERVING WILL COUNTY TO HAVE EARNED THE PRESTIGIOUS RECOGNITION. -- CARE FOR THE MOST CRITICALLY ILL NEWBORNS IN ITS LEVEL III NEWBORN INTENSIVE CARE UNIT (NICU) -- EXPERT EMERGENCY SERVICES FOR ADULTS AND PEDIATRIC PATIENTS IN ITS LEVEL II EMERGENCY DEPARTMENT AND PEDIATRIC EMERGENCY DEPARTMENT. -- STATE-OF-THE-ART IMAGING TECHNOLOGY AT NUMEROUS LOCATIONS THROUGHOUT THE REGION. -- ACCESS TO THE LATEST CLINICAL TRIALS FOR CANCER AND HEART DISEASE. -- FIRST IN THE REGION TO OFFER ANIMAL-ASSISTED THERAPY, MUSIC THERAPY AND ART THERAPY THROUGH ITS HEALING ARTS PROGRAM. DURING THE FISCAL YEAR ENDED JUNE 30, 2013, EDWARD HOSPITAL PROVIDED NEARLY $93.7 MILLION IN COMMUNITY BENEFITS AND $17.8 MILLION IN CHARITY CARE, A 325% INCREASE SINCE FY 2006. FOR FISCAL YEAR 2013, EDWARD HOSPITAL HAD 87,140 PATIENT DAYS AND 91,663 EMERGENCY ROOM VISITS. FOR MORE INFORMATION ABOUT EDWARD HOSPITAL, VISIT WWW.EDWARD.ORG. Classes of members or stockholders Form 990, Part VI, Section A, Line 6 EDWARD HOSPITAL'S SOLE CORPORATE MEMBER IS EDWARD HEALTH SERVICES CORPORATION, AN ILLINOIS NOT-FOR-PROFIT AND SECTION 501(C)(3) TAX EXEMPT CORPORATION. Members or stockholders electing members of governing body Form 990, Part VI, Section A, Line 7a EDWARD HOSPITAL'S SOLE CORPORATE MEMBER, EDWARD HEALTH SERVICES CORPORATION, MAY ELECT, REMOVE AND REPLACE MEMBERS OF THE BOARD OF TRUSTEES OF EDWARD HOSPITAL. THE EHSC BOARD OF TRUSTEES CONSISTS OF THE INDIVIDUALS WHO CONCURRENTLY SERVE ON THE EH BOARD OF TRUSTEES. Decisions requiring approval by members or stockholders Form 990, Part VI, Section A, Line 7b THE BOARD OF TRUSTEES OF EDWARD HOSPITAL'S SOLE CORPORATE MEMBER, EDWARD HEALTH SERVICES CORPORATION (EHSC), HAS THE FOLLOWING EXCLUSIVE POWERS OVER EDWARD HOSPITAL (EH): -ELECT, REMOVE AND REPLACE MEMBERS OF THE BOARD OF TRUSTEES OF EDWARD HOSPITAL (EH BOARD OF TRUSTEES). -APPROVE, BEFORE THEY MAY BECOME EFFECTIVE, ALL AMENDMENTS TO THE ARTICLES OF INCORPORATION OF EH PROPOSED BY THE EH BOARD OF TRUSTEES AND ENACT OR AMEND ARTICLES OF INCORPORATION FOR EH IN THE DISCRETION OF EHSC. -APPROVE A PLAN OF DISSOLUTION OR LIQUIDATION OF EH OR A PLAN OF MERGER OR CONSOLIDATION OF EH WITH ANOTHER CORPORATION. -ADOPT, OR PERMIT THE ADOPTION OF, ANY ANNUAL OR LONG-TERM CAPITAL OR OPERATIONAL BUDGET OF EH OR OF ANY AFFILIATE OR SUBSIDIARY OF EH. -APPROVE, OR PERMIT THE APPROVAL OF, ANY LONG-TERM BORROWING OF MONEY FOR CAPITAL NEEDS BY EH OR BY ANY AFFILIATE OR SUBSIDIARY OF EH. -APPROVE, BEFORE IT MAY BECOME EFFECTIVE, THE CREATION OF ANY TAXABLE OR TAX-EXEMPT SUBSIDIARY ORGANIZATION OF EH. -ADOPT POLICIES WHICH MAY IMPOSE OBLIGATIONS UPON THE EH BOARD OF TRUSTEES OR LIMITATIONS ON THE POWERS OF THE EH BOARD OF TRUSTEES WHICH SHALL BE CONSISTENT WITH THE BYLAWS AND THE ARTICLES OF INCORPORATION OF EH, PROVIDED THAT THE POLICIES SHALL FIRST BE SUBMITTED TO THE EH BOARD OF TRUSTEES FOR COMMENT UPON NO LESS THAN THIRTY (30) DAYS PRIOR WRITTEN NOTICE. ANY POLICIES AS DESCRIBED ABOVE WHICH ARE ADOPTED BY THE EHSC BOARD OF TRUSTEES SHALL BE DELIVERED TO THE CHAIRMAN, PRESIDENT OR SECRETARY OF EH, SIGNED BY AN AUTHORIZED OFFICER OF EHSC, AND SHALL BE EFFECTIVE AS OF THE DATE OF DELIVERY. THE EHSC BOARD OF TRUSTEES CONSISTS OF THE INDIVIDUALS WHO CONCURRENTLY SERVE ON THE EH BOARD OF TRUSTEES. 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 OF EDWARD HOSPITAL, 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 INCLUDING EDWARD HOSPITAL, MONITORS AND ENFORCES COMPLIANCE WITH ITS CONFLICT OF INTEREST POLICY THROUGH ANNUAL REPORTING, AND ONGOING EDUCATION. EACH YEAR, EHSC 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 EHSC 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 EHSC CEO FOR THE COMING YEAR TO THE EHSC 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 HUMAN RESOURCES DEPARTMENT, WHICH SUPPORTS EDWARD HOSPITAL 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 SERVICES HUMAN RESOURCES WORKS WITH AN INDEPENDENT THIRD PARTY COMPENSATION CONSULTANT 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. JOINT VENTURE ARRANGEMENTS FORM 990, PART VI, LINE 16B CURRENTLY, IT IS THE POLICY OF EDWARD HEALTH SERVICES CORPORATION AND EDWARD HOSPITAL THAT PARTICIPATION BY THE HOSPITAL, OR ANY EDWARD AFFILIATE, IN A JOINT VENTURE REQUIRES REVIEW BY THE EDWARD HEALTH SERVICES CORPORATION FINANCE COMMITTEE (REGARDLESS OF THE DOLLAR AMOUNT OF THE INVESTMENT) AND APPROVAL BY THE EDWARD HEALTH SERVICES CORPORATION BOARD OF TRUSTEES. REGARDLESS OF THE PERCENTAGE OWNERSHIP THAT ANY EDWARD ENTITY MAY HAVE IN THE JOINT VENTURE, THE VENTURE'S GOVERNING DOCUMENTS MUST INCLUDE THE FOLLOWING PROVISIONS RELATED TO THE ENTITY: (1) IT IS TO BE OPERATED IN A MANNER CONSISTENT WITH EDWARD'S CHARITABLE MISSION, (2) THERE IS A COMMITMENT TO PROVIDE FREE OR UNCOMPENSATED CARE, TREAT MEDICAID AND MEDICARE PATIENTS AND MAINTAIN HEALTH CARE AND EDUCATION PROGRAMS FOR THE BENEFIT OF THE COMMUNITY, (3) THE ACTIVITIES OF SHOULD RESULT IN SIGNIFICANT COMMUNITY BENEFITS SUCH AS: (A) THE CREATION OF A NEW PROVIDER OF HEALTHCARE SERVICES, (B) THE EXPANSION OF COMMUNITY HEALTHCARE RESOURCES, (C) THE IMPROVEMENT IN TREATMENT MODALITY, (D) THE REDUCTION IN HEALTHCARE COSTS, OR (E) THE IMPROVEMENT IN PATIENT CONVENIENCE AND ACCESS TO PHYSICIANS, AND (4) HEALTHCARE SERVICES MUST BE PROVIDED IN A NON-DISCRIMINATORY MANNER. 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 changes in net assets or fund balances Form 990 , Part XI, Line 9 GAINS ON INTEREST RATE SWAPS - 11791445; NET ASSETS RELEASED FROM RESTRICTIONS FROM EDWARD FOUNDATION - -343758; CHANGE IN TEMPORAIRILY RESTRICTED NET ASSETS OF EDWARD FOUNDATION - 408204; CASH SETTLEMENTS ON INTEREST RATE SWAPS - -4721179; EDWARD HEALTH SERVICES CORPORATION 801 SOUTH WASHINGTON STREET NAPERVILLE IL 60540 PARENT IL 501(C)(3) 11 - Type II NA false 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 false EDWARD FOUNDATION 801 SOUTH WASHINGTON STREET NAPERVILLE IL 60540 FUNDRAISING IL 501(C)(3) 7 EHSC false EDWARD HEALTH & FITNESS CENTER 801 SOUTH WASHINGTON STREET NAPERVILLE IL 60540 HEALTH CARE IL 501(C)(3) 9 EHV false EDWARD AMBULANCE SERVICES LLC 801 SOUTH WASHINGTON STREET NAPERVILLE IL 60540 HEALTH CARE IL 501(C)(3) 9 EH true EDWARD PHYSICIAN OFFICE CENTER 801 S WASHINGTON ST NAPERVILLE IL 60540 363524485 HEALTH CARE IL EHV RELATED 411716 4112671 false false 0.3564 THE CENTER FOR SURGERY LP 801 S WASHINGTON ST NAPERVILLE IL 60540 363776424 HEALTH CARE IL NO N/A EDWARD MANAGEMENT CORPORATION 801 SOUTH WASHINGTON STREET NAPERVILLE IL 60540 363833311 MANAGEMENT CORP IL NA C CORPORATION NAPERVILLE HEALTH CARE ASSOC LTD 801 SOUTH WASHINGTON STREET NAPERVILLE IL 60540 363651180 HEALTH CARE IL EH C CORPORATION 12148 5248314 1 true EHSC CAYMAN SEGREGATED PORTFOLIO 1ST CARRIBEAN HSE 3RD FL 10 MAIN ST GEORGE TOWN CJ 000000000 INSURANCE CJ NA C CORPORATION ILLINOIS HEALTH PARTNERS LLC 801 SOUTH WASHINGTON NAPERVILLE IL 60540 452389060 HEALTH CARE IL NA C CORPORATION true false true true false false false false false false true true true true true false true false true EDWARD AMBULANCE SERVICES LLC A 9532 ACTUAL COST