2013-07-11T11:10:16-05:00 2012-08-31 ERNST & YOUNG US LLP 155 NORTH WACKER DRIVE CHICAGO IL 60606 990 2011-09-01 363357004 Children's Hospital of Chicago Medical Center % PAULA M NOBLE CHIL 3122274306 225 E CHICAGO AVE PR DEPT BOX 26 Chicago IL 606112991 PAULA M NOBLE 2013-07-11 true 3128792000 2011 2016-02-24 21:20:13Z Patrick M Magoon 225 E CHICAGO AVE BOX 269 Chicago IL 606112991 20178053 false X www.luriechildrens.org X 1984 IL ESTABLISH, DEVELOP, PROMOTE & CONDUCT EDUCATIONAL PROGRAMS, SCIENTIFIC RESEARCH, HEALTHCARE FACILITIES & OTHER CHARITABLE & EDUCATIONAL ACTIVITIES DEVOTED TO HEALTH & WELFARE SERVICES TO INFANTS & CHILDREN. 106 91 75 0 0 0 743847 1501525 16817104 18676528 0 0 0 0 17560951 20178053 2358107 0 0 0 13181881 15139559 0 0 0 3836582 3640421 19376570 18779980 -1815619 1398073 5532040 8491832 2648411 4210130 2883629 4281702 X WE ARE DEDICATED TO THE HEALTH AND WELL-BEING OF ALL CHILDREN. AS THE PEDIATRIC TEACHING FACILITY FOR NORTHWESTERN UNIVERSITY'S FEINBERG SCHOOL OF MEDICINE, THIS COMMITMENT DRIVES US TO BE A LEADER IN: - PEDIATRIC HEALTH CARE DELIVERY - RESEARCH INTO THE PREVENTION, CAUSES AND TREATMENT OF DISEASES THAT AFFECT CHILDREN - EDUCATION FOR PHYSICIANS, NURSES AND ALLIED HEALTH PROFESSIONALS - ADVOCACY FOR CHILDREN AS A CHARITABLE ORGANIZATION, WE SERVE CHILDREN AND THEIR FAMILIES TO THE BEST OF OUR ABILITIES AND TO THE LIMITS OF OUR RESOURCES. false false 17093828 0 18676528 The Children's Hospital of Chicago Medical Center ("Medical Center"), an Illinois not-for-profit corporation, engages in budget approval, asset management, resource allocation, investment oversight and strategic planning for Affiliates. Affiliates include organizations for which the Medical Center is either a controlling member or a controlling shareholder. Currently, the Medical Center has the following affiliates: Ann & Robert H. Lurie Children's Hospital of Chicago, Ann & Robert H. Lurie Children's Hospital of Chicago Foundation, Ann & Robert H. Lurie Children's Hospital of Chicago Research Center, Lurie Children's Medical Group, LLC and Pediatric Faculty Foundation, Inc. Lurie Children's Medical Group, LLC ("Medical Group") is an Illinois limited liability company whose sole member is the Medical Center. By virtue of the Medical Center's tax-exempt status, the Medical Group is considered to be an organization described under Section 501(c)(3) of the Code. The Medical Group employs pathologists, radiologists, psychiatrists and dentists who practice at Ann & Robert H. Lurie Children's Hospital of Chicago ("Lurie Children's"). The Medical Group's pathologists comprise the Lurie Children's Department of Pathology and Laboratory Medicine which provides comprehensive services in both Anatomic and Clinical Pathology, utilizing extensive expertise and state-of-the-art technology. Consultative services are provided across the country in collaboration and coordination with Lurie Children's medical, surgical and ancillary departments. The children encompass a cross-section of diagnoses and the department assists in the diagnosis and management of acute and chronic diseases. The Medical Group psychiatrists practice within Lurie Children's Department of Child and Adolescent Psychiatry which offers children and their families specialized services in pediatric mental health. Clinicians in the department provide state-of-the art psychiatric and psychological services, education, and advocacy. The Medical Group psychiatrists provide national leadership in the education of mental health care professionals and advancement of knowledge through research. The Medical Group psychiatrists treat children of all ages and from every socioeconomic background for a wide variety of problems including adjustment disorders, emotional problems related to pediatric disorders, psychoses, mood disorders, anxiety, developmental delays, behavior disorders, ADHD, autism spectrum disorders, and learning disabilities. The Medical Group dentists provide comprehensive and preventive oral health care for infants, children, adolescents, and patients of Lurie Children's with special health care needs. Lurie Children's dentistry service provides a child-centered environment and a comprehensive program emphasizing total health and prevention. The Medical Group dentists provide care related to infant oral healthcare with parent education; nursing and baby bottle caries; dental caries; oral trauma, anxious child; comprehensive oral healthcare for patients of the Lurie Children's medical specialties (including hematology, oncology, infectious disease, allergy, cardiology, neurology and services to address cleft lip and palate); and services requiring sedation and general anesthesia. Radiologists employed by the Medical Group staff the Lurie Children's Department of Medical Imaging which serves pediatric patients in a manner aimed to help minimize radiation dose used during each procedure. The Department performs approximately 109,000 procedures each year, including 9,800 MRIs of which 80 percent are done on medically complex and/or sedated children. All of the radiologists are board certified with subspecialty training in pediatric radiology, interventional radiology and/or neuroradiology. The Medical Group's physicians are members of the faculty practice plan at Lurie Children's, which represents the largest provider of pediatric Medicaid services in Illinois. In FY 2012, the Medical Group physicians had over 4,000 combined inpatient and outpatient Medicaid encounters for 2,269 patients. Medicaid represents over 43.1% of its payor mix. In FY 2012, Medicaid reimbursement for physician services for care to children treated by the Medical Group physicians was approximately $1.6 million less than the costs associated with providing such services. The Medical Center through its management and the Medical Group's services assists Lurie Children's, which owns and operates the only full-service, independent, freestanding pediatric hospital in Illinois, with 288 licensed beds as well as a full range of inpatient and outpatient care and related ancillary services. This not-for-profit, tertiary care hospital, founded in 1882, provides patient care 24 hours per day, 7 days per week and provides more pediatric healthcare than any other hospital provider in Illinois in nearly every pediatric medical and surgical specialty. As a major academic tertiary care medical center, Lurie Children's has served patients from 49 states, and 34 countries. Lurie Children's is a designated Level I pediatric trauma center for the City of Chicago, with a Level III neonatal nursery that serves as a regional referral center in the State of Illinois Perinatal Network. Lurie Children's ability to treat the most critically ill infants in its neonatal intensive care unit ("NICU") is demonstrated by statistics for calendar year 2012 which show that 64% of all transports into its NICU were from other Level III nurseries in metropolitan Chicago. The Lurie Children's has also been ranked among the best in the nation in a U.S. News & World Report opinion-based survey of top pediatric hospitals for the past three years. Lurie Children's is the home to the world's first pediatric center for Autonomic Medicine and was the first pediatric hospital in Illinois to perform the Berlin Heart procedure, a breakthrough technology that helps children awaiting heart transplants. In the fiscal year ending August 31, 2012, Lurie Children's, through nearly 602,580 patient visits, served more than 149,450 children who came from all over the State of Illinois and beyond to access the more than 70 specialties offered by Lurie Children's. During this period there were 480,563 visits including 319,350 outpatient visits in Lincoln Park (including 6,760 observation cases) including 61,767 emergency room visits and 99,446 outpatient visits at the satellite facilities. 17093828 true true false false false false false false false false false false false false false false true false false true false false false false false false false false true false false false false false false false true false false false false true true true true false false true 0 0 75 true false true CJ false false false false false false false false X 106 91 true false false false false false false true true false true true false true true true true true true true false IL X PAULA M NOBLE 3122274306 225 E CHICAGO AVE PR DEPT BOX 26 CHICAGO IL 606112991 X JOHN J ALLEN 1.0 X 0 0 0 JOHN AMBOIAN JR 1.0 X 0 0 0 SARAH BAINE 1.0 X 0 0 0 STEPHEN W BAIRD 1.0 X 0 0 0 PETER B BENSINGER 1.0 X 0 0 0 ANDREW BERLIN 1.0 X 0 0 0 BARBARA L BOWLES 1.0 X 0 0 0 JILL BRENNAN 1.0 X 0 0 0 DAVID BUNNING 1.0 X 0 0 0 GREGORY C CASE 1.0 X 0 0 0 JOHN A CHALLENGER 1.0 X 0 0 0 ALAN CHAPMAN 1.0 X 0 0 0 ROBERT CLARK 1.0 X 0 0 0 ELEANOR O CLARKE 1.0 X 0 0 0 KEVIN M CONNELLY 1.0 X 0 0 0 JOHN D COONEY 1.0 X 0 0 0 JOHN M CROCKER JR 1.0 X 0 0 0 LESTER CROWN 1.0 X 0 0 0 PAULA H CROWN 1.0 X 0 0 0 LETICIA PERALTA DAVIS 1.0 X 0 0 0 SUSAN DEPREE 1.0 X 0 0 0 JAMES DEROSE 1.0 X 0 0 0 WILLIAM J DEVERS JR 1.0 X 0 0 0 JOHN DOERGE JR 1.0 X 0 0 0 JAMES DONALDSON MD 1.0 X 533339 0 218543 CHARLES W DOUGLAS 1.0 X 0 0 0 DENNIS J DRESCHER 1.0 X 0 0 0 ANA DUTRA 1.0 X 0 0 0 MICHAEL EVANGELIDES 1.0 X 0 0 0 TYRONE C FAHNER 1.0 X 0 0 0 LESLI FALK 1.0 X 0 0 0 MITCHELL FEIGER 1.0 X 0 0 0 DIANA S FERGUSON 1.0 X 0 0 0 MICHAEL W FERRO JR 1.0 X 0 0 0 DAVID FOX JR 1.0 X 0 0 0 JOHN S GATES JR 1.0 X 0 0 0 LAURENCE S GELLER 1.0 X 0 0 0 BERT A GETZ JR 1.0 X 0 0 0 JEFFREY GLASSROTH MD 1.0 X 0 0 0 LAUREN GORTER 1.0 X 0 0 0 THOMAS P GREEN MD 1.0 X 0 686258 58102 JOSEPH GREGOIRE 1.0 X 0 0 0 DAVID D GRUMHAUS 1.0 X 0 0 0 ARLINGTON GUENTHER 1.0 X 0 0 0 JOSEPH D GUTMAN 1.0 X 0 0 0 BRUCE R HAGUE 1.0 X 0 0 0 TODD M HAMILITON 1.0 X 0 0 0 PAUL F HANZLIK 1.0 X 0 0 0 BRETT J HART 1.0 X 0 0 0 DAVID A HELFAND 1.0 X 0 0 0 MARY J C HENDRIX PHD 1.0 X 0 575155 87442 DANIEL J HENNESSY 1.0 X 0 0 0 JAMES HICKEY 1.0 X 0 0 0 GARY E HOLDREN 1.0 X 0 0 0 MARK HOPPE 1.0 X 0 0 0 CHARLES H JAMES III 1.0 X 0 0 0 KIRK B JOHNSON 1.0 X 0 0 0 W BRUCE JOHNSON 1.0 X 0 0 0 GEORGE D KENNEDY 1.0 X 0 0 0 ANTHONY K KESMAN 1.0 X 0 0 0 RICHARD P KIPHART 1.0 X 0 0 0 FRED L KREHBIEL 1.0 X 0 0 0 ADAM A KRIGER 1.0 X 0 0 0 GERALD R LANZ 1.0 X 0 0 0 ERIC LEFKOFSKY 1.0 X 0 0 0 LYLE LOGAN 1.0 X 0 0 0 SHELLEY A LONGMUIR 1.0 X 0 0 0 DANIEL TW LUM MD 1.0 X 0 0 0 PATRICK M MAGOON 1.0 X X 0 1169917 417827 MITCHELL J MANASSA 1.0 X 0 0 0 JOHN F MANLEY 1.0 X 0 0 0 ROXANNE MARTINO 1.0 X 0 0 0 PETER D MCDONALD 1.0 X 0 0 0 JACK L MCGINLEY 1.0 X 0 0 0 ANDREW J MCKENNA 1.0 X 0 0 0 WILLIAM J MCKENNA 1.0 X 0 0 0 JAMES J MCNULTY 1.0 X 0 0 0 LOUISE C MILLS 1.0 X 0 0 0 JOHN C MOORE 1.0 X 0 0 0 ROBERT S MURLEY 1.0 X 0 0 0 ERIC G NEILSON MD 1.0 X 0 0 0 DAVID NEITHERCUT 1.0 X 0 0 0 LESLIE NEWMAN 1.0 X 0 0 0 EDWARD OGATA MD 1.0 X 0 699385 51203 NANCY PACHER 1.0 X 0 0 0 CHAKA PATTERSON 1.0 X 0 0 0 PEER PEDERSEN 1.0 X 0 0 0 DOUGLAS A PERTZ 1.0 X 0 0 0 LORNA S PFAELZER 1.0 X 0 0 0 DAVID C PISOR 1.0 X 0 0 0 ASHISH PRASAD 1.0 X 0 0 0 SETH PROSTIC 1.0 X 0 0 0 GERALD D PUTNAM 1.0 X 0 0 0 MOHAN RAO PHD 1.0 X 0 0 0 ANDREA REDMOND 1.0 X 0 0 0 SUSAN REGENSTEIN 1.0 X 0 0 0 THOMAS R REUSCH 1.0 X 0 0 0 J CHRISTOPHER REYES 1.0 X 0 0 0 MARLETA REYNOLDS MD 1.0 X 0 0 0 PETER C ROBERTS 1.0 X 0 0 0 MANUEL SANCHEZ 1.0 X 0 0 0 DEBORAH M SAWYER 1.0 X 0 0 0 H WILLIAM SCHNAPER MD 1.0 X 0 293633 51915 CHRISTOPHER SEGAL 1.0 X 0 0 0 STEPHEN A SMITH 1.0 X 0 0 0 THOMAS S SOULELES 1.0 X 0 0 0 STEPHEN T STEERS 1.0 X 0 0 0 DIANE SWONK 1.0 X 0 0 0 EDWARD S TRAISMAN MD 1.0 X 0 0 0 MONSIGNOR KENNETH VELO 1.0 X 0 0 0 MATTHEW WALSH 1.0 X 0 0 0 EDWARD J WEHMER 1.0 X 0 0 0 MRS DERRY WEYERHAEUSER 1.0 X 0 0 0 BRIAN E WILLIAMS 1.0 X 0 0 0 LINDA S WOLF 1.0 X 0 0 0 JAMES WOOTEN JR 1.0 X 0 0 0 MS JIA ZHAO 1.0 X 0 0 0 PAULA M NOBLE 1.0 X 0 543142 229178 DONNA S WETZLER 1.0 X 0 408331 381116 ELIZABETH J PERLMAN MD 40.0 X 465949 0 167707 FRANK M PRENDERGAST MD 40.0 X 410684 0 44635 CYNTHIA K RIGSBY MD 40.0 X 433298 0 54732 MARTHA C SAKER MD 40.0 X 390162 0 33518 RICHARD M SHORE MD 40.0 X 421771 0 40737 2655203 4375821 1836655 38 false true false Northwestern Medical Faculty Founda 375 N ST CLAIR CHICAGO IL 60611 PHYSICIAN SERVICES 855092 Arnold Shkolnik MD 225 E CHICAGO AVE CHICAGO IL 60611 PHYSICIAN SERVICES 118551 Medcentrix Inc 15620 S Wood Street HARVEY IL 60426 BILLING SERVICES 564629 SPI HEALTHCARE 8151 W 83RD ST B TINLEY PARK IL 60487 BILLING SERVICES 257300 4 1501525 0 1501525 Net patient revenue 621110 10596622 10596622 Medical, Administrative, & Teaching 621110 3004841 3004841 MISCELLANEOUS OPERATING INCOME 621110 1478091 1478091 Medicaid 621110 3596974 3596974 18676528 0 0 0 0 0 0 0 0 20178053 18676528 0 0 0 0 0 0 797624 762672 34952 0 11538826 11033085 505741 0 1922803 1823087 99716 880306 853975 26331 0 0 13500 13500 0 0 0 102745 102745 0 42603 42603 0 0 0 77548 77548 0 627 627 0 0 0 480158 477083 3075 Bad debt provision 389054 389054 Billing and collection fee 983340 983340 Patient expenses 1197406 1197406 Plan tax 182668 182668 170772 151275 19497 18779980 17093828 1686152 0 4360044 5817337 0 0 0 0 601747 2189839 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 120000 120000 0 0 450249 364656 5532040 8491832 2648411 4210130 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 2648411 4210130 X 2883629 4281702 0 0 0 0 2883629 4281702 5532040 8491832 1398073 X false true true X false X X X false false false ANN & ROBERT H LURIE CHILDREN'S HOSPITAL OF CHICAGO 362170833 03 true true true 17093828 ANN & ROBERT H LURIE CHILDREN'S HOSPITAL OF CHICAGO FDN 363357006 07 true true true 0 PEDIATRIC FACULTY FOUNDATION INC 363279680 0 true true true 0 ANN & ROBERT H LURIE CHILDREN'S HOSPITAL OF CHICAGO RES CTR 363357005 04 true true true 0 4 17093828 RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED Central America and the Caribbean 0 0 Program Services INSURANCE 3504866 0 0 0 0 3504866 3504866 true false true false false false X X X X false true false true false false false false false JAMES DONALDSON MD 441714 0 89526 0 2099 0 196979 0 21564 0 751882 0 0 0 THOMAS P GREEN MD 0 486587 0 198879 0 792 0 24500 0 33602 0 744360 0 0 MARY J C HENDRIX PHD 0 477924 0 96715 0 516 0 65528 0 21914 0 662597 0 0 PATRICK M MAGOON 0 669904 0 460460 0 39553 0 395080 0 22747 0 1587744 0 54248 EDWARD OGATA MD 0 390921 0 219482 0 88982 0 25687 0 25516 0 750588 0 0 H WILLIAM SCHNAPER MD 0 254059 0 38782 0 792 0 24500 0 27415 0 345548 0 0 PAULA M NOBLE 0 359324 0 182200 0 1618 0 214043 0 15135 0 772320 0 0 DONNA S WETZLER 0 268758 0 137717 0 1856 0 364116 0 17000 0 789447 0 0 ELIZABETH J PERLMAN MD 386626 0 78383 0 940 0 152125 0 15582 0 633656 0 0 0 FRANK M PRENDERGAST MD 299887 0 110343 0 454 0 20714 0 23921 0 455319 0 0 0 CYNTHIA K RIGSBY MD 309837 0 121778 0 1683 0 24134 0 30598 0 488030 0 0 0 MARTHA C SAKER MD 299453 0 72143 0 18566 0 24956 0 8562 0 423680 0 0 0 RICHARD M SHORE MD 317561 0 102043 0 2167 0 28483 0 12254 0 462508 0 0 0 Supplemental Compensation Information Schedule J, Part I, Line 3 Pursuant to the bylaws of Children's Hospital of Chicago Medical Center ("Medical Center"), the Governance Committee of the Medical Center is charged to review and approve senior executive compensation for the Medical Center and its affiliates. The Governance Committee has adopted a written executive compensation philosophy which it follows when it reviews and approves the compensation and benefits of the organization's senior management, including the President/Chief Executive Officer and the other senior managers. The compensation philosophy is subject to periodic review for continued appropriateness by the Governance Committee. With the assistance of a compensation consultant and information from a variety of sources (specified on Schedule J), the Governance Committee confirmed the total amounts to be paid were reasonable and comparable to amounts paid by similarly situated organizations. Outside legal counsel also serves an integral role in advising the Governance Committee with respect to federal tax requirements in setting compensation and the establishment of the "rebuttable presumption of reasonableness" under the federal tax law intermediate sanctions rules. The process followed by the Governance Committee, including a description of the data relied upon and the Governance Committee's decisions, was thoroughly and contemporaneously documented. The Governance Committee has expressly reviewed the reasonableness of all such payments, and has concluded, as the result of a process that is designed to qualify for the rebuttable presumption of reasonableness, that all such amounts are reasonable and do not exceed fair market value for the services provided. The Governance Committee was comprised of members of the Medical Center and the Ann and Robert H. Lurie Children's Hospital of Chicago Boards of Directors who were determined to be disinterested for these purposes. The Governance Committee conducts an ongoing, regular review of the disinterested status of its members, and will take appropriate action with respect to anyone having an interest with respect to one or more executives so as to preserve the application of the rebuttable presumption of reasonableness. Schedule J, Part I, Question 4b The following listed individuals have an amount included in Schedule J, Part II, Column (C) for an amount accrued but not vested under a supplemental executive retirement plan ("SERP"): James Donaldson, MD $166,689 Patrick M. Magoon $361,818 Paula M. Noble $188,823 Elizabeth J. Perlman $129,761 Donna S. Wetzler $342,069 Benefits earned under the SERP are non-vested forms of deferred compensation that fund the employee's eventual retirement benefit. These benefits are provided in exchange for all of the employee's years of service to the organization, and the cost of the benefits will vary from year to year based on interest rates, age, and many other factors. The amounts are at risk and will not be paid unless and until the employee has provided substantial future services to the organization. Benefits under the SERP vest at age 62, and are forfeited if the employee leaves the organization voluntarily before age 62 (except upon the sole discretion of the Board, and only if the participant has reached at least age 55 with at least 10 years of service). Participants who voluntarily leave the organization before age 55 forfeit their entire SERP benefit upon termination. Schedule J, Part I, Question 5a Employed physicians are compensated on the basis of personal professional productivity that takes into account, in part, the revenues of the organization generated by the physician. Schedule J, Part II The following individuals are not compensated by the reporting organization for his or her service as a director. Rather, the compensation reported on Form 990, Part VII and on Schedule J, Part II reflects compensation paid by Pediatric Faculty Foundation for the individual's substantial and full-time services as an employee. For more details, please refer to the 2011 Form 990 of Pediatric Faculty Foundation, EIN 36-3279680. Thomas P. Green, MD Mary J. C. Hendrix, PhD H. William Schnaper, MD The following individuals are not compensated by the reporting organization for his or her service as a director or officer. Rather, the compensation reported on Form 990, Part VII and on Schedule J, Part II reflects compensation paid by Ann & Robert H. Lurie Children's Hospital of Chicago (Lurie Children's) for the individual's substantial and full-time services as an employee. For more details, please refer to the 2011 Form 990 of Lurie Children's, FEIN 36-2170833. Patrick M. Magoon Edward Ogata, MD Paula M. Noble Donna S. Wetzler JP Morgan Chase L. Crown is a director 137727 Financial Services false JP Morgan Chase P. Crown is a director 137727 Financial Services false Description of Relationships Form 990, Part VI, Question 2 *Allan Bulley III serves as an officer for a firm that provided construction services to Thomas Souleles. *Allan Bulley III serves as an officer for a firm which provided construction services to Donald J. Edwards. *Gregory Case serves as an officer for a firm in which Andrew McKenna served as a director during the reporting period. *Edward J. Wehmer serves as an officer for a company for which Charles James III and Bert Getz serve as a director. *Lester Crown is the father-in-law of Paula H. Crown. *William Devers, Jr. serves as a director for a company for which Andrew McKenna serves as an officer. *Andrew J. McKenna is the father of William J. McKenna. *Linda Wolf serves as a director for a company for which Eric Lefkofsky serves as a director. Describe the Process used by Management &/or Governing Body to Review 990 Form 990, Part VI, Question 11B A copy of the organization's fiscal year 2012 tax return ("Form 990") was provided to each member of the organization's Audit Committee (of the Board) before a special Audit Committee meeting and before the Form 990 was filed. The Audit Committee is the Committee of the Medical Center charged with the oversight of audit and tax matters for the parent and affiliates. The audit committee was provided a detailed overview of the form 990 by the chief financial Officer ("CFO") and the organization's director of tax compliance. The CFO and director of tax compliance also responded to the Audit Committee members' questions and afforded the opportunity for detailed discussion of the Form 990, prior to the audit committee taking action to approve The filing of the Form 990. As part of its tax preparation process, the Organization on an ongoing basis consulted its tax consulting firm and outside tax legal counsel, both of which possess expertise in health care and tax-exempt return preparation, to advise and assist in the preparation of Form 990. These advisors worked closely with the organization's Finance and internal legal personnel and other members of the organization's team assembled to participate in the preparation of The Form 990. Prior to presenting the Form 990 to the board's audit Committee, the organization's team, including its advisors, met frequently to discuss and review drafts of the form. Description of Process to Monitor Transactions for Conflicts of Interest Form 990, Part VI, Question 12c On an annual basis, the Medical Center and its affiliates provide a comprehensive questionnaire to its board members, senior management and purchasing personnel posing questions about actual or potential conflicts of interest. The Medical Center initiates follow up contact to those who do not respond and to clarify responses, where necessary. The Medical Center reviews each disclosure and provides a summary of relevant disclosures for the review and approval of its governance committee. Pursuant to the conflicts of interest policy of the Medical Center and affiliates ("Corporation"), directors, officers, physician leaders, and others who are subject to the policy are required to promptly and fully disclose in writing any actual, apparent or potential conflict of interest to the president of the Corporation and General Counsel. This disclosure shall be provided to the Governance Committee of the Corporation which shall consider all conflicts of interest issues and, if appropriate, shall provide such written disclosure to the directors, board committees considering the proposed transaction or other appropriate parties. In addition, on an annual basis, the corporation surveys each individual subject to the policy as to the existence of actual or potential conflicts of interest. The corporation will not enter into an agreement, transaction or other arrangement involving a conflict of interest unless the disinterested members of the Governance Committee of the Corporation's Board of Directors determine by a majority vote that appropriate safeguards to protect the charitable mission of the Corporation have been implemented. The subject interested person may not be present when the vote is taken. If it is determined that a conflict of interest exists, a disinterested person or committee of disinterested members may be assigned to investigate alternatives to the proposed transaction or arrangement. After exercising due diligence, the board or committee shall determine whether the Corporation can obtain a more advantageous transaction or arrangement, with reasonable efforts, from a person or entity that would not give rise to a conflict of interest. If a more advantageous transaction or arrangement is not reasonably attainable under circumstances that would not give rise to a conflict of interest, the board or committee shall determine by a majority vote of the disinterested directors whether the transaction is in the Corporation's best interest and for its own benefit and whether the transaction is fair and reasonable to the Corporation, and shall make its decision as to whether to enter into the transaction or arrangement. Offices & Positions for Which Process was Used, & Year Process was Begun Form 990, Part VI, questions 15a and 15b The authority to review and approve executive compensation has been delegated to the Governance Committee of the Medical Center Board of Directors ("Governance Committee"). The Governance Committee has adopted a written executive compensation philosophy which it follows when it reviews and approves the compensation and benefits of the organization's senior management, including the President/Chief Executive Officer and the other senior managers. The compensation philosophy is subject to periodic review for continued appropriateness by the Governance Committee. With the assistance of a compensation consultant and information from a variety of external sources (specified on Schedule J), the Governance Committee confirmed the total amounts to be paid were reasonable and comparable to amounts paid by similarly situated organizations for functionally similar positions. Outside legal counsel also serves an integral role in advising the Governance Committee with respect to federal tax requirements in setting compensation and the establishment of the rebuttable presumption of reasonableness. The process followed by the Governance Committee, including a description of the data relied upon and the Governance Committee's decisions, was thoroughly and contemporaneously documented. The Governance Committee has expressly reviewed the reasonableness of all such payments, and has concluded, as the result of a process that is designed to qualify for the rebuttable presumption of reasonableness under federal tax law, that all such amounts are reasonable and do not exceed fair market value for the services provided. The Governance Committee was comprised of members of the Medical Center and the Medical Center Boards of Directors who were determined disinterested for these purposes. The Governance Committee conducts an ongoing and periodic review of the disinterested status of its members, and will take appropriate action with respect to anyone having an interest with respect to one or more executives so as to preserve the application of the rebuttable presumption of reasonableness. Avail of Gov Docs, Conflict of Interest Policy, & Fin Stmts to Gen Public Form 990, Part VI, Question 19 The organization's financial statements are publicly available online at www.dacbond.com. The organization's articles of incorporation and annual reports are available through the Illinois Secretary of State. The organization also makes its general governing documents available to the general public upon request. AVERAGE HOURS PER WEEK FOR RELATED ORGANIZATIONS FORM 990, PART VII Elizabeth J. Perlman, MD and James Donaldson, MD are employees of the Medical Center and generally work 40 hours per week. Approximately 2 hours of additional time each week is spent providing services to related organizations. The following individuals are employees of the children's memorial hospital and generally work 40 hours per week. In general, approximately 2 hours of additional time each week is spent providing services to related organizations: Patrick M. Magoon Paula M. Noble Edward Ogata, MD Donna S. Wetzler The following individuals are employees of Pediatric Faculty Foundation and generally work 40 hours per week. Approximately 2 hours of additional time each week is spent providing services to related organizations: Thomas P. Green, MD Mary J. C. Hendrix, PhD H. William Schnaper, MD INFORMATION ABOUT SUPPORTED ORGANIZATION SCHEDULE A, PART I For a description of the manner in which the Medical Center supports Lurie Children's, please see the statement of program accomplishments included in Schedule O. LURIE CHILDREN'S MEDICAL GROUP LLC 225 E CHICAGO AVE CHICAGO IL 60611 364187449 HEALTH CARE IL 19493727 8295807 MEDICAL CTR LURIE CHILDREN'S HOSP OF CHIC RSCH CTR 225 E CHICAGO AVE CHICAGO IL 60611 363357005 RESEARCH IL 501(C)(3) 4 Medical Ctr true LURIE CHILDREN'S HOSPITAL OF CHICAGO FDN 225 E CHICAGO AVE CHICAGO IL 60611 363357006 FUNDRAISING IL 501(C)(3) 7 Medical Ctr true PEDIATRIC FACULTY FOUNDATION INC 225 E CHICAGO AVE CHICAGO IL 60611 363279680 HLTH CRE/RSCH IL 501(C)(3) 11 III-FI Medical Ctr true LURIE CHILDREN'S 225 E CHICAGO AVE CHICAGO IL 60611 362170833 HOSPITAL IL 501(C)(3) 3 Medical Ctr true CMH Self Insurance Foundation 225 E CHICAGO AVE Chicago IL 60611 366638400 Insurance IL 501(C)(3) 11 III-FI MEDICAL CTR true CMMC INSURANCE CO LTD 225 E CHICAGO AVE CHICAGO IL 60611 000000000 SELF INSURANCE CJ MEDICAL CTR CORPORATION 73199 16672135 1.00000 false false true false false false false false false false false false false false true false true false Lurie Childrens c 1501525 cost Lurie Childrens o 5585910 cost CMMC INSURANCE CO LTD q 3504866 cost