2014-04-25T12:49:57-05:00 2013-06-30 CROWE HORWATH LLP 70 West Madison Street Suite 700 Chicago IL 606024903 990 2012-07-01 581672987 EDWARD HEALTH VENTURES EDWA 6305273000 801 S Washington Street Naperville IL 60540 VINCENT E PRYOR 2014-04-23 true John V Woodhull P01305268 3128997000 2012 2015-11-30 17:44:51Z WILLIAM KOTTMAN 801 South Washington Street Naperville IL 60540 73802948 false X WWW.EDWARD.ORG X 1986 IL THE MISSION OF EDWARD HEALTH VENTURES IS TO SUPPORT AND ENCOURAGE HEALTHCARE AND RELATED SERVICES. 6 2 504 3 0 0 0 0 66056126 73041480 237023 60468 0 0 66293149 73101948 0 0 0 0 34981178 42352298 0 0 0 30177393 26465222 65158571 68817520 1134578 4284428 128894231 135785181 33287102 33674123 95607129 102111058 TO SUPPORT HEALTH AND STRENGTHEN COMMUNITIES BY PROVIDING OUTSTANDING HEALTH CARE SERVICES. false false 48157345 45158746 EDWARD HEALTH VENTURES OFFERS PHYSICIAN SERVICES IN PRIMARY CARE, MEDICAL ONCOLOGY, SURGERY, GASTROENTEROLOGY, NEUROSCIENCE, CHILD AND ADULT PSYCHIATRY AND HOSPITALISTS. EDWARD MEDICAL GROUP IS COMPRISED OF 15 PHYSICIAN PRACTICES IN THE WESTERN SUBURBS OF CHICAGO, INCLUDING NAPERVILLE, BOLINGBROOK, PLAINFIELD, LISLE, OSWEGO, SANDWICH AND YORKVILLE. EDWARD HEALTH VENTURES OPERATES TWO QUICK CARE CLINICS IN NAPERVILLE AND ROMEOVILLE. DURING THE FISCAL YEAR ENDED JUNE 30, 2013 EDWARD MEDICAL GROUP HAD 204,000 PATIENT OFFICE VISITS. LINDEN OAKS MEDICAL GROUP, WITH SPECIALISTS IN CHILD AND ADULT PSYCHIATRY, IS COMPRISED OF 5 PHYSICIAN PRACTICE LOCATIONS INCLUDING NAPERVILLE, WOODRIDGE, PLAINFIELD, ST. CHARLES AND YORKVILLE. DURING FISCAL YEAR 2013, LINDEN OAKS MEDICAL GROUP HAD 56,000 VISITS. THE HOSPITALISTS HAD 34,000 VISITS. 8403316 15875836 EDWARD HEALTH VENTURES INVESTS IN OUTPATIENT CLINICS AND SURGERY CENTERS, INCLUDING THE PLAINFIELD SURGERY CENTER. THIS NUMBER ALSO REPRESENTS AN AGGREGATION OF NORMAL BUSINESS OPERATING EXPENSES. 7056680 12006898 EDWARD HEALTH VENTURES PROVIDES ACCESS TO MEDICAL SERVICES AT CONVENIENT LOCATIONS BY OPERATING MEDICAL OFFICE BUILDINGS IN NAPERVILLE, PLAINFIELD, BOLINGBROOK AND OSWEGO. IT HAS APPROXIMATELY 30 MEDICAL OFFICE TENANTS INCLUDING A NUMBER OF EDWARD HOSPITAL PROGRAMS. THE EXPANSION OF THE EDWARD PLAINFIELD CAMPUS INCLUDES OFFERING PHYSICIAN AND OTHER RELATED HEALTH CARE SERVICES INCLUDING MEDICAL ONCOLOGY FROM EDWARD CANCER CENTER, EDWARD PERINATOLOGY CENTER, EDWARD HOSPITAL PHYSICAL THERAPISTS AND BEHAVIORAL HEALTH PROFESSIONALS FROM LINDEN OAKS MEDICAL GROUP AND INDEPENDENT SPECIALISTS, INCLUDING PEDIATRICIANS, CARDIOLOGISTS, OBSTETRICIANS, GYNECOLOGISTS, ALLERGISTS, OPTHALOMOLOGISTS, AND PRIMARY CARE PHYSICIANS. 63617341 true false false true false false false false false true false true false true true 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 true true false false true 118 0 true 504 true false false false false false false false false false false false X 6 2 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 St Naperville IL 60540 DEBRA LELLBACH 1.00 1.00 X X 0 0 0 GEORGE J GULAS 1.00 39.00 X X 0 138475 11262 TIMOTHY RIVELLI 1.00 3.00 X X 0 0 0 PAMELA M DAVIS 1.00 39.00 X 0 1196045 229566 PATTI LUDWIG-BEYMER 1.00 39.00 X 0 297103 45292 WILLIAM G KOTTMANN 1.00 39.00 X 0 538662 34854 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 MARY L MASTRO 1.00 39.00 X 0 480529 36627 VINCENT E PRYOR 1.00 39.00 X 0 575150 125626 ALEXANDER HANTEL MD 40.00 0 X 573716 0 32317 BARRY E RABIN MD 40.00 0 X 396925 0 25983 MATTHEW M DUNNE 40.00 0 X 363971 0 23103 RICHARD MASON MD 40.00 0 X 373490 0 33553 TIMOTHY J TYRRELL MD 40.00 0 X 397318 0 30183 2105420 4953757 900868 89 true true false NORTHWESTERN MED FACULTY FOUNDATION 676 N ST CLAIR SUITE 2210 CHICAGO IL 60611 CONTRACT FOR NEUROSURGEON SERVICES 3116667 PEAK CONSTRUCTION 10111 E TOUHY AVE SUITE 100 DES PLAINES IL 60116 CONSTRUCTION SERVICES 1682503 POWER CONSTRUCTION CO LLC 2360 PALMER DRVIES SCHAUMBURG IL 60173 CONSTRUCTION SERVICES 1265026 MIDWEST PHYSICIAN ADMIN SV 1100 31ST STREET DOWNERS GROVE IL 60516 PHYSICIAN BILLING SERVICES 582132 LEOPARDO COMPANIES INC 5200 PRAIRIE STONE PKWY HOFFMAN ESTATES IL 60192 CONSTRUCTION SERVICES 573329 23 0 PATIENT SERVICE REVENUE 621990 35962100 35962100 MEDICAL BUILDING RENT REVENUE 900099 12019940 12019940 MANAGEMENT FEE 561439 1729008 1729008 BEHAVORIAL CARE MGMT REVENUE 900099 1092827 1092827 INVESTMENT IN HEALTH CARE VENTURES 900099 9080704 9080704 13156901 13156901 0 0 73041480 146468 146468 0 0 0 0 0 615000 701000 -86000 0 -86000 -86000 0 0 0 0 0 0 0 0 0 0 0 73101948 73041480 0 60468 0 0 0 0 0 0 36001056 34921024 1080032 952888 924302 28587 3377665 3276335 101330 2020689 1960069 60621 1064100 1064100 0 17115 17115 138 138 0 0 10066672 9462801 603871 0 30563 30563 2010601 1950283 60318 0 0 6865077 5903966 961111 46010 9202 36808 0 0 1726827 1485071 241756 0 4745613 4081227 664386 545076 468766 76311 REAL ESTATE TAX -1181430 -1016030 -165400 LICENSES 23066 23066 REPAIR AND MAINTENANCE 171189 147223 23966 DUES AND SUBSCRIPTIONS 62698 12540 50159 271907 0 271907 0 68817520 63617341 5200181 0 0 3145 3680 -3890 -2730 3415995 2654703 0 0 855124 2725941 132770472 42590372 90828879 90180100 -241543 -1255736 0 0 27790442 35788738 3208854 2914095 3037225 2776390 128894231 135785181 7534513 8802570 0 25752589 24871553 33287102 33674123 X 95607129 102111058 95607129 102111058 128894231 135785181 X 4284428 -180499 2400000 X false true X true false X X X false false false EDWARD HOSPITAL 363297173 3 true true true 57379737 NAPERVILLE PSYCHIATRIC VENTURES DBA LINDEN OAKS HOSPITAL 363965251 3 true true true 7525935 EDWARD HEALTH AND FITNESS CENTER 363555528 9 true true true 1840298 3 66745970 DESCRIPTION OF NON-MONETARY SUPPORT, SCHEDULE A, PART I, LINE 11H, EDWARD HOSPITAL: EDWARD HEALTH VENTURES IS A SUPPORTING ORGANIZATION TO EDWARD HOSPITAL. 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 VENTURES IS A SUPPORTING ORGANIZATION TO NAPERVILLE PSYCHIATRIC VENTURES DBA LINDEN OAKS HOSPITAL. 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 VENTURES IS A SUPPORTING ORGANIZATION TO EDWARD HEALTH AND FITNESS CENTER. 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 false false false false false true 138 false false 138 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 30356131 30356131 95863744 39401564 56462180 0 5980147 3188808 2791339 570449 570449 90180100 INV IN LINDEN OAKS 23833676 F INV IN PHYS OFFICE CENTER LP 5292912 F INV IN NORTHERN IL SURGERY CENTER 4331262 F INV IN PLAINFIELD SURGERY CENTER 520149 F INV IN DUPAGE MED GRP SURGERY 1810740 F 35788738 0 RENTAL DEPOSITS 1500 PROFESSIONAL & GENERAL LIABILITY 566934 DUE TO AFFILIATES 24303119 24871553 X 72921448 -180500 0 -180500 73101948 0 0 73101948 68817520 0 0 68817520 0 0 68817520 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. X true true false true false false false false false true false ALEXANDER HANTEL MD 522041 0 0 0 51675 0 12500 0 19817 0 606032 0 0 0 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 BARRY E RABIN MD 217919 0 0 0 179006 0 15000 0 10983 0 422908 0 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 MARY L MASTRO 0 268556 0 80518 0 131455 0 17500 0 19127 0 517156 0 0 MATTHEW M DUNNE 195166 0 0 0 168805 0 10000 0 13103 0 387073 0 0 0 PAMELA M DAVIS 0 758342 0 255320 0 182383 0 217500 0 12066 0 1425610 0 0 PATTI LUDWIG-BEYMER 0 203463 0 46676 0 46964 0 22859 0 22434 0 342395 0 0 RICHARD MASON MD 359339 0 5050 0 9102 0 15000 0 18553 0 407043 0 0 0 TIMOTHY J TYRRELL MD 298787 0 1000 0 97531 0 17500 0 12683 0 427502 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 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. THE EDWARD HEALTH VENTURES PRESIDENT IS 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 HEALTH VENTURES . ON AN ANNUAL BASIS, THE COMMITTEE REVIEWS COMPENSATION ARRANGEMENTS, INCLUDING THE COMPENSATION AWARD FOR THE EDWARD HEALTH VENTURES 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, INCLUDING EDWARD HEALTH VENTURES , 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 EDWARD HEALTH SERVICES CORPORATION 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 NTIL 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). Classes of members or stockholders Form 990, Part VI, Section A, Line 6 EDWARD HEALTH VENTURES' 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 HEALTH VENTURES' SOLE CORPORATE MEMBER, EDWARD HEALTH SERVICES CORPORATION, MAY ELECT REMOVE AND REPLACE MEMBERS OF THE BOARD OF TRUSTEES OF EDWARD HEALTH VENTURES. Decisions requiring approval by members or stockholders Form 990, Part VI, Section A, Line 7b THE BOARD OF TRUSTEES OF EDWARD HEALTH VENTURES' SOLE CORPORATE MEMBER, EDWARD HEALTH SERVICES CORPORATION ("EHSC"), HAS THE FOLLOWING EXCLUSIVE POWERS OVER EDWARD HEALTH VENTURES ("EHV"): -ELECT, REMOVE, AND REPLACE, TRUSTEES ON THE BOARD OF EHV. -APPROVE AMENDMENTS TO THE ARTICLES OF INCORPORATION PROPOSED BY THE EHV BOARD OF TRUSTEES. -APPROVE A PLAN OF DISSOLUTION OR LIQUIDATION OF EHV OR A PLAN OF MERGER OR CONSOLIDATION OF EHV WITH ANOTHER CORPORATION. IN ADDITION, THE EHV BOARD OF TRUSTEES MAY NOT TAKE ANY OF THE ACTIONS LISTED BELOW, WITHOUT OBTAINING THE PRIOR APPROVAL OF EHSC: -ADOPT, OR PERMIT THE ADOPTION OF, ANY ANNUAL OR LONG-TERM CAPITAL OR OPERATIONAL BUDGET OF EHV OR OF ANY AFFILIATE OR SUBSIDIARY OF EHV; -ADOPT, OR PERMIT THE ADOPTION OF, ANY VARIANCE FROM ANY ANNUAL OR LONG-TERM CAPITAL OR OPERATIONAL BUDGET OF EHV OR OF ANY AFFILIATE OR SUBSIDIARY OF EHV OR OF ANY AFFILIATE OR SUBSIDIARY OF EHV PREVIOUSLY APPROVED BY EHSC WHICH WOULD RESULT IN THE EXPENDITURE OF FUNDS EXCEEDING 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, THE EDWARD HEALTH VENTURES BOARD 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 INCLUDING EDWARD HEALTH VENTURES, 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 EDWARD HEALTH SERVICES CORPORATION EXECUTIVE COMMITTEE ("COMMITTEE"),ON BEHALF OF EDWARD HEALTH SERVICES CORPORATION AND ALL OF ITS AFFILIATES, INCLUDING EDWARD HEALTH VENTURES. ON AN ANNUAL BASIS, THE COMMITTEE REVIEWS COMPENSATION ARRANGEMENTS, INCLUDING THE COMPENSATION AWARD FOR THE EDWARD HEALTH VENTURES 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. 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 EDWARD HEALTH SERVICES CORPORATION'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 SERVICES 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 SERVICES CORPORATION 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 VENTURES FORM 990, PART VI, LINE 16B CURRENTLY, IT IS THE POLICY OF EDWARD HEALTH SERVICES CORPORATON AND EDWARD HEALTH VENTURES THAT PARTICIPATION OF ANY EDWARD HEALTH SERVICES CORPORATION AFFILIATE, INCLUDING EDWARD HEALTH VENTURES, 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 HEALTH SERVICES CORPORATION 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. THE EDWARD HEALTH SERVICES CORPORATION BOARD OF TRUSTEES, FOR ITSELF AND ALL OF ITS AFFILIATES, IS IN THE PROCESS OF REVIEWING AND APPROVING A JOINT VENTURE POLICY THAT WILL MORE FORMALLY SET FORTH THE PRACTICES DESCRIBED ABOVE, TO CONTINUE TO ENSURE THAT EDWARD WILL PURSUE ONLY THOSE JOINT VENTURES WHICH FURTHER ITS CHARITABLE MISSION AND STRENGTHEN EDWARD FINANCIALLY, ENSURING THAT QUALITY HEALTH CARE WILL CONTINUE TO BE AVAILABLE TO THE COMMUNITIES THAT EDWARD SERVES. 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 PHYSICIAN - TOTAL EXPENSE: 967207, PROGRAM SERVICE EXPENSE: 909175, MANAGEMENT AND GENERAL EXPENSES: 58032, FUNDRAISING EXPENSES: ; MANAGEMENT FEE - OTHER - TOTAL EXPENSE: 879000, PROGRAM SERVICE EXPENSE: 826260, MANAGEMENT AND GENERAL EXPENSES: 52740, FUNDRAISING EXPENSES: ; CONSULTING - TOTAL EXPENSE: 39729, PROGRAM SERVICE EXPENSE: 37345, MANAGEMENT AND GENERAL EXPENSES: 2384, FUNDRAISING EXPENSES: ; COLLECTION - TOTAL EXPENSE: 37755, PROGRAM SERVICE EXPENSE: 35490, MANAGEMENT AND GENERAL EXPENSES: 2265, FUNDRAISING EXPENSES: ; OTHER - TOTAL EXPENSE: 332180, PROGRAM SERVICE EXPENSE: 312378, MANAGEMENT AND GENERAL EXPENSES: 19802, FUNDRAISING EXPENSES: ; REFERENCE LAB - TOTAL EXPENSE: 1456424, PROGRAM SERVICE EXPENSE: 1369039, MANAGEMENT AND GENERAL EXPENSES: 87385, FUNDRAISING EXPENSES: ; INTERCOMPANY - TOTAL EXPENSE: 314496, PROGRAM SERVICE EXPENSE: 295626, MANAGEMENT AND GENERAL EXPENSES: 18870, FUNDRAISING EXPENSES: ; LAUNDRY - TOTAL EXPENSE: 2231, PROGRAM SERVICE EXPENSE: 2097, MANAGEMENT AND GENERAL EXPENSES: 134, FUNDRAISING EXPENSES: ; LANDSCAPE/SNOW PLOW - TOTAL EXPENSE: 167519, PROGRAM SERVICE EXPENSE: 157468, MANAGEMENT AND GENERAL EXPENSES: 10051, FUNDRAISING EXPENSES: ; DISPOSAL SERVICES - TOTAL EXPENSE: 33093, PROGRAM SERVICE EXPENSE: 31107, MANAGEMENT AND GENERAL EXPENSES: 1986, FUNDRAISING EXPENSES: ; FIRE SAFETY - TOTAL EXPENSE: 44312, PROGRAM SERVICE EXPENSE: 41653, MANAGEMENT AND GENERAL EXPENSES: 2659, FUNDRAISING EXPENSES: ; CONTRACT CLEAN - TOTAL EXPENSE: 482961, PROGRAM SERVICE EXPENSE: 453983, MANAGEMENT AND GENERAL EXPENSES: 28978, FUNDRAISING EXPENSES: ; DICTATION - TOTAL EXPENSE: 74858, PROGRAM SERVICE EXPENSE: 70366, MANAGEMENT AND GENERAL EXPENSES: 4491, FUNDRAISING EXPENSES: ; NORTHWESTERN NEUROSURGEON CONTRACT - TOTAL EXPENSE: 3400000, PROGRAM SERVICE EXPENSE: 3196000, MANAGEMENT AND GENERAL EXPENSES: 204000, FUNDRAISING EXPENSES: ; MPAS - PHYSICIAN BILLING FEE - TOTAL EXPENSE: 1834906, PROGRAM SERVICE EXPENSE: 1724812, MANAGEMENT AND GENERAL EXPENSES: 110094, FUNDRAISING EXPENSES: ; Other changes in net assets or fund balances Form 990 , Part XI, Line 9 TRANSFER FROM AFFILIATE - 2400000; 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 true 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 true EDWARD HOSPITAL 801 SOUTH WASHINGTON STREET NAPERVILLE IL 60540 HOSPITAL IL 501(C)(3) 3 EHSC false 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 EHV RELATED 697746 8261246 false 0 false 0 THE CENTER FOR SURGERY LP 801 S WASHINGTON ST NAPERVILLE IL 60540 363776424 HEALTH CARE IL EHV RELATED 910179 5833744 false 0 false 0 EDWARD MANAGEMENT CORPORATION 801 SOUTH WASHINGTON STREET NAPERVILLE IL 60540 363833311 MANAGEMENT CORP IL EHV C CORPORATION 38902 89861 1 true NAPERVILLE HEALTH CARE ASSOC LTD 801 SOUTH WASHINGTON STREET NAPERVILLE IL 60540 363651180 HEALTH CARE IL NA C CORPORATION EHSC CAYMAN SEGREGATED PORTFOLIO 801 SOUTH WASHINGTON STREET NAPERVILLE IL 60540 INSURANCE CJ NA C CORPORATION ILLINOIS HEALTH PARTNERS LLC 801 SOUTH WASHINGTON NAPERVILLE IL 60540 HEALTH CARE IL NA C CORPORATION true false false false false false false false false true false true true true true false false false true NAPERVILLE PSYCHIATRIC VENTURES A 91740 ACTUAL COST EDWARD HEALTH & FITNESS CENTER L 800004 ACTUAL COST EDWARD PHYSICIAN OFFICE CENTER L 50004 ACTUAL COST EDWARD PHYSICIAN OFFICE CENTER A 204343 ACTUAL COST EDWARD HEALTH SERVICES CORPORATION L 1064100 ACTUAL COST EDWARD PHYSICIAN OFFICE CENTER L 71920 ACTUAL COST