2013-05-07T11:00:34-05:00 2012-06-30 CROWE HORWATH LLP 70 West Madison Street Suite 700 Chicago IL 606024903 990 2011-07-01 363297173 EDWARD HOSPITAL EDWA 6305273000 801 South Washington Street Naperville IL 60540 VINCE PRYOR 2013-04-22 true John Woodhull P01305268 3128997000 2011 2016-03-07 17:11:31Z PAMELA MEYER DAVIS 801 South Washington Street Naperville IL 60540 594373820 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 $13,433,000 IN CHARITY CARE DURING THE FISCAL YEAR. 14 12 3304 823 482229 30054 2241846 3104299 479999097 524283202 11230328 2741990 209587 237168 493680858 530366659 0 658000 0 0 181120714 193768439 0 0 0 281371433 305703604 462492147 500130043 31188711 30236616 692898836 743368141 429289586 470416384 263609250 272951757 X THE MISSION OF EDWARD HOSPITAL IS TO SUPPORT HEALTH AND STRENGTHEN COMMUNITIES BY PROVIDING OUTSTANDING HEALTH CARE SERVICES. false false 386996021 658000 530366658 EDWARD HOSPITAL IS A 309-BED, FULL-SERVICE, REGIONAL HEALTHCARE PROVIDER WITH 1,000 PHYSICIANS ON ITS MEDICAL STAFF AND 4,400 EMPLOYEES. EDWARD SERVES RESIDENTS OF THE WEST AND SOUTHWEST SUBURBS OF CHICAGO, INCLUDING NAPERVILLE, AURORA, BOLINGBROOK, DOWNERS GROVE, HOMER GLEN, JOLIET, LEMONT, LISLE, LOCKPORT, MINOOKA, OSWEGO, PLAINFIELD, ROMEOVILLE, SHOREWOOD, WARRENVILLE, WHEATON, WOODRIDGE AND YORKVILLE. THE PHYSICIANS ON THE MEDICAL STAFF REPRESENT MORE THAN 70 MEDICAL AND SURGICAL SPECIALTIES AND SUBSPECIALTIES. MORE THAN 98 PERCENT (THE NATIONAL AVERAGE IS 62 PERCENT) OF THEM ARE BOARD CERTIFIED IN THEIR RESPECTIVE FIELDS, A DESIGNATION AWARDED ONLY TO PHYSICIANS WHO COMPLETE RIGOROUS POST-MEDICAL SCHOOL TRAINING AND PASS AN EXTENSIVE CERTIFICATION TEST. CONT IN SCHEDULE O. 386996021 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 false false false true 209 0 true 3304 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 JOSEPH BEATTY 1.00 X X 0 0 0 PAMELA M DAVIS 1.00 X X 0 1150015 260518 ROCCO MARTINO 1.00 X X 0 0 0 RONALD SCHUBEL 1.00 X X 0 1140 0 ALISON BALLEW SMITH 1.00 X 0 0 0 DAVID DELGADO 1.00 X 0 840 0 DENNIS BURKE 1.00 X 0 0 0 GARY CIANCI MD 1.00 X 5000 0 0 GREG EWERT MD 1.00 X 0 0 0 JOSEPH DEPAULO 1.00 X 0 576 0 MARY KAY LADONE 1.00 X 0 0 0 ROBERT PASCIAK 1.00 X 10000 0 0 TIMOTHY RIVELLI 1.00 X 0 0 0 WILLIAM WHEELER 1.00 X 0 0 0 ANNETTE KENNEY 1.00 X 0 274029 106000 BARBARA P BYRNE MD 1.00 X 0 360791 110623 BRENT E SMITH DO 1.00 X 0 380880 55032 BRIAN P DAVIS 1.00 X 0 258926 36856 DANIEL H BECK 1.00 X 0 129433 16838 DENNISE VAUGHN 1.00 X 0 279344 31108 MARIANNE SPENCER 1.00 X 0 439450 48951 MARY L MASTRO 1.00 X 0 446280 42714 PATTI LUDWIG-BEYMER 38.00 X 232803 0 39666 VINCENT E PRYOR 1.00 X 0 540468 187814 WILLIAM G KOTTMANN 1.00 X 0 503302 45919 KIMBERLY J STACHE 40.00 X 212057 0 11537 LINDA DEVEE 40.00 X 159832 0 21646 LYNN L COCHRAN 40.00 X 167090 0 29836 YVETTE M SABA 40.00 X 196650 0 29975 GEORGE KOBUROV MD 40.00 X 400794 0 43283 MICHAEL J HARTMANN MD 40.00 X 386943 0 36720 PETER T SCHUBEL MD 40.00 X 430879 0 42432 RALPH P HOOVER MD 40.00 X 430245 0 49306 THOMAS A SCALETTA MD 40.00 X 441559 0 37978 3073852 4765474 1284752 134 false true false EDWARD HEALTH SERVICES CORPORATION 801 S WASHINGTON ST NAPERVILLE IL 60540 MANAGEMENT FEES 60402958 POWER CONSTRUCTION CO LLC 2360 PALMER DR SCHAUMBURG IL 601733819 CONSTRUCTION SERVICES 10763637 ARAMARK PO BOX 651009 CHARLOTTE NC 282651009 FOOD SERVICES 5139002 MIDWEST HEART SPECIALISTS 1901 S MEYERS RD SUITE 350 OAK BROOK TERRACE IL 601815207 PHYSICIAN SERVICES 2672422 EPIC SYSTEMS CORPORATION 1979 MILKY WAY VERONA WI 53593 SOFTWARE IMPLEMENTATION 1749758 37 2502725 103143 498431 3104299 PATIENT SERVICE REVENUE 621990 397625274 397625274 RENTAL INCOME 532000 1029636 1029636 HEALTH SCREEN & AMBULATORY 623990 284860 284860 MEDICARE/MEDICAID PAYMENTS 532000 119614511 119614511 REFERENCE LAB 621500 1127740 645511 482229 4601181 4601181 0 0 524283202 10002461 10002461 217363 217363 0 0 0 0 56360386 63762674 75546 -7402288 -75546 -7477834 -75546 -7402288 0 0 406109 168941 237168 237168 0 0 0 0 0 530366659 523725427 482229 3054704 658000 658000 0 0 0 1106804 1106804 0 154253745 127764837 26488908 6940270 5756957 1183313 20505001 17008907 3496094 10962619 10016526 946093 60402958 60402958 333 333 0 62351 62351 0 552516 552516 22058142 13145148 8912994 1121792 1097287 24505 96288694 94676915 1611779 0 0 9412409 8835835 576574 117103 63174 53929 0 163537 95091 68446 11112777 10001499 1111278 0 34423837 30981453 3442384 2943467 2943467 PROVISION FOR BAD DEBT 31909030 31909030 MEDICARE PROVIDER TAX 12596158 12596158 REPAIRS & MAINTANENCE 10081461 9927504 153957 OTHER INCOME TAX 69347 69347 12387692 8342082 4045610 0 500130043 386996021 113134022 0 0 9313836 984611 64943279 77414712 8433677 8887729 7270377 3528234 605093496 333921647 259425509 271171849 300132444 336035833 0 0 4607472 4960563 28239795 28239795 10532447 12144815 692898836 743368141 47062489 51132399 277185231 272186755 105041866 147097230 429289586 470416384 X 262341075 271782585 955713 856710 312462 312462 263609250 272951757 692898836 743368141 X 30236616 -20894109 X false true true X false X RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED false true false false false false false false true 62351 62351 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 DUES WERE RELATED TO LOBBYING ACTIVITIES. 1268175 750545 418012 431536 1169172 1216333 1193261 853697 287722 1268175 3343859 1808329 319197 1216333 3432137 278130 366408 3343859 0.26725 0.73275 false true true 9999826 9999826 364407857 184044254 180363603 0 196186950 145422841 50764109 34498863 4454552 30044311 271171849 0 EST THIRD PARTY PAYOR SETTLEMENTS 92153748 INTEREST RATE SWAP 38221376 PROF & GENERAL LIABILITY 8474338 DEFERRED COMPENSATION 4272948 LONG TERM LEASE PAYABLE & OTHER 3974820 147097230 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. true true X true true true true true false true true 10640219 0 10640219 0.02270 29246443 12425469 16820974 0.03590 0 0 0 0.00000 0 0 39886662 12425469 27461193 0.05860 1675723 221864 1453859 0.00310 866330 4015 862315 0.00180 4924479 1369260 3555219 0.00760 715019 67350 647669 0.00140 1439077 1833 1437244 0.00310 0 0 9620628 1664322 7956306 0.01700 0 0 49507290 14089791 35417499 0.07560 0 0.00000 28336 28336 0.00010 75460 1500 73960 0.00010 0 0.00000 9174 9174 0.00000 108347 108347 0.00020 109596 109596 0.00020 14654 14654 0.00000 0 0.00000 0 0 345567 1500 344067 0.00070 false 7987022 1856567 117581152 162801195 -45220043 X true true 2 1 EDWARD HOSPITAL

801 S WASHINGTON ST NAPERVILLE IL 60540

X X X 2 PLAINFIELD FREE-STANDING EMERGENCY CTR

24600 W 127TH STREET PLAINFIELD IL 60585

X 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) SECTION WERE CALCULATED USING THE MEDICARE COST REPORT COST TO CHARGE RATIO. THE COSTS ENTERED IN THE UNREIMBURSED MEDICAID (7B) AND 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) 31,909,030 Subsidized Health Services Schedule H, Part I, Line 7g NOT APPLICABLE. 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. A HIGHLIGHTED PROGRAM IN FY2012 WAS A NEIGHBORHOOD SUPPORT GROUP CALLED KIDSMATTER. KIDSMATTER IS A NAPERVILLE-BASED NOT-FOR-PROFIT ORGANIZATION THAT EQUIPS YOUTH AND FAMILIES WITH TOOLS TO MANAGE THE STRESS OF EVERYDAY LIFE THROUGH DYNAMIC SCHOOL AND COMMUNITY PROGRAMS, PRACTICAL EDUCATION, RESOURCES AND YOUTH RECOGNITION. EDWARD EXECUTIVES HAVE EXTENSIVE INVOLVEMENT IN THE ORGANIZATION FROM SERVING BOARD MEMBERS TO PROVIDING MATERIALS AND ADMINISTRATIVE SUPPORT. THESE ARE BUT A FEW HIGHLIGHTS OF THE ORGANIZATION'S ACTIVITIES TO PROMOTE THE HEALTH OF THE COMMUNITIES IT SERVES. 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 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 BAD DEBT HAS BEEN INCLUDED 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 FPL. 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. 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: A COST ACCOUNTING SYSTEM ALLOCATED STAFF COSTS USING WORK LOAD UNITS AND STATISTICAL ALLOCATIONS WERE USED FOR THE OTHER EXPENSES. 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. Means used to determine amounts billed Schedule H, Part V Section B, Line 19d (1) EDWARD HOSPITAL - THE HOSPITAL FACILITY APPLIED THE UNINSURED DISCOUNT REQUIRED UNDER ILLINOIS LAW FOR THOSE SERVICES. THE UNINSURED DISCOUNT IS CALCULATED AS 135% OF COST BASED UPON THE MOST RECENT COST-TO-CHARGE RATIO FROM THE MEDICARE COST REPORT.;(2) PLAINFIELD FREE-STANDING EMERGENCY CTR - THE HOSPITAL FACILITY APPLIED THE UNINSURED DISCOUNT REQUIRED UNDER ILLINOIS LAW FOR THOSE SERVICES. THE UNINSURED DISCOUNT IS CALCULATED AS 135% OF COST BASED UPON THE MOST RECENT COST-TO-CHARGE RATIO FROM THE MEDICARE COST REPORT.; 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. EDWARD'S SERVICE AREA IS SPLIT BETWEEN TWO BASIC DESIGNATIONS, NORTH AND SOUTH. THE ASSOCIATED ZIP CODES AND CITIES ARE LISTED BELOW AND REPRESENT OVER 80% OF EDWARD'S INPATIENT AND OUTPATIENT ACTIVITY. POSTAL CODE SERVICE AREA POSTAL CODE POSTAL CODE CITY NORTH PRIMARY 60540 NAPERVILLE 60563 NAPERVILLE 60565 NAPERVILLE 60532 LISLE 60517 WOODRIDGE 60504 AURORA 60502 AURORA 60503 AURORA 60555 WARRENVILLE 60567 NAPERVILLE 60566 NAPERVILLE SOUTH PRIMARY 60564 NAPERVILLE 60440 BOLINGBROOK 60544 PLAINFIELD 60446 ROMEOVILLE 60585 PLAINFIELD 60586 PLAINFIELD 60490 BOLINGBROOK 60543 OSWEGO 60560 YORKVILLE OTHER HOSPITALS SERVING THE COMMUNITY EDWARD COLLABORATES WITH A NUMBER OF HOSPITALS TO SERVE THIS COMMUNITY. AS SEEN IN THE TABLE BELOW, IN FY2012, EDWARD TREATED NEARLY 34% OF HOSPITAL ADMISSIONS FROM THIS SERVICE AREA. PRIMARY SERVICE AREA HOSPITALS PERCENT OF HOSPITAL ADMISSIONS EDWARD HOSPITAL 33.75% RUSH-COPLEY MEDICAL CENTER 10.30% ADVENTIST BOLINGBROOK HOSPITAL 8.80% ADVOCATE GOOD SAMARITAN HOSPITAL 6.89% PROVENA SAINT JOSEPH MEDICAL CENTER 6.70% CENTRAL DUPAGE HOSPITAL 5.85% LINDEN OAKS AT EDWARD 3.61% ADVENTIST HINSDALE HOSPITAL 3.31% PROVENA MERCY MEDICAL CENTER 2.30% OTHERS 18.49% GRAND TOTAL 100.00% *FIGURES PROVIDED BY COMPDATA, ACCESSED DECEMBER 2012 POPULATION AS SEEN IN THE TABLE BELOW, EDWARD'S PRIMARY SERVICE AREA (PSA) HAS NEARLY 600,000 RESIDENTS; WHILE THE TOTAL SERVICE AREA (TSA) HAS ALMOST 1 MILLION RESIDENTS. EDWARD SERVICE AREA POPULATION NORTH PRIMARY SERVICE AREA 271,511 SOUTH PRIMARY SERVICE AREA 322,947 PRIMARY SERVICE AREA 594,458 SOUTH SECONDARY SERVICE AREA 143,684 NORTH SECONDARY SERVICE AREA 250,617 SECONDARY SERVICE AREA 394,301 TOTAL SERVICE AREA 988,759 SOURCE: NIELSEN IXPRESS COUNTY ALTHOUGH EDWARD'S SERVICE AREA SPANS MULTIPLE COUNTIES, THE MAJORITY OF PATIENTS RESIDE IN DUPAGE AND WILL COUNTIES, AS PRESENTED IN THE FOLLOWING TABLE. INPATIENT AND OUTPATIENT VOLUME COUNTY EDWARD HOSPITAL & LINDEN OAKS % OF TOTAL FY2012 VOLUME DUPAGE 42.8% WILL 40.3% KENDALL 6.9% KANE 3.0% COOK 2.7% SUB-TOTAL 95.6% ALL OTHER COUNTIES 4.4% SOURCE: EDWARD INTERNAL DATA - ACCESSED DECEMBER 2012 COMMUNITIES WITHIN EDWARD'S PRIMARY SERVICE AREA WERE AMONG THE FASTEST GROWING IN THE COUNTRY OVER THE PAST 20 YEARS; HOWEVER, THE ECONOMIC RECESSION HAS SIGNIFICANTLY CURTAILED THAT GROWTH. NIELSEN, A LEADING PROVIDER OF POPULATION ANALYTICS, RECENTLY ADJUSTED ANNUAL POPULATION PROJECTIONS BASED ON THE SLOWER GROWTH EXPERIENCED IN THE PRIMARY SERVICE AREA IN RECENT YEARS. BETWEEN 2012-2017, THE PSA POPULATION IS EXPECTED TO GROW 1.9% ANNUALLY, SLIGHTLY LOWER THAN THE 2.1% ORIGINALLY PROJECTED BETWEEN 2010-2015. PROJECTIONS INDICATE THAT THE 65+ AGE COHORT WILL BE THE FASTEST GROWING SEGMENT OF THE POPULATION, HIGHER THAN BOTH STATE AND NATIONAL PROJECTIONS. HOWEVER, THE SERVICE AREA WILL REMAIN RELATIVELY 'YOUNG,' WITH ONLY 9% OF THE POPULATION OVER THE AGE OF 65, COMPARED TO 12.5% FOR ILLINOIS AND 13% FOR THE NATION AS A WHOLE. 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 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. AN EXAMPLE OF A PROJECT IN 2012 WAS THE FACILITY EXPANSION OF LINDEN OAKS. EHSC COMMITTED SIGNIFICANT FINANCIAL RESOURCES TO LINDEN OAKS HOSPITAL IN ORDER TO INCREASE ITS CAPACITY FOR INPATIENT PROGRAMS, INCLUDING CHEMICAL DEPENDENCY, EATING DISORDERS, ADOLESCENT AND ADULT CARE. THIS RESULTED IN THE DEVELOPMENT OF A $4.3 MILLION, THREE-WING, 8,500 SQUARE FOOT EXPANSION OF ITS FACILITY ON THE NAPERVILLE CAMPUS OF EDWARD HOSPITAL. THE PROJECT CREATED SPACE FOR 14 ADDITIONAL INPATIENT BEDS, INCREASING LINDEN OAKS' BED COUNT TO 108, AS WELL AS NEW DAY ROOMS, GROUP ROOMS AND CONSULTATION ROOMS. IN ADDITION TO THE INPATIENT EXPANSION, EHSC ALSO INVESTED $3.5 MILLION IN A RELOCATION AND CENTRALIZATION OF LINDEN OAKS HOSPITAL OUTPATIENT SERVICES. THIS PROJECT RESULTED IN A 45,000 SQUARE FOOT OUTPATIENT CENTER THAT PROVIDES CHEMICAL DEPENDENCY, ADDICTION, DEPRESSION, SELF-INJURY, BI-POLAR DISORDER AND ANXIETY TREATMENT FOR ADULTS AND ADOLESCENTS, AS WELL AS A 100-SEAT CONFERENCE CENTER FOR COMMUNITY AND OUTPATIENT EDUCATION, AND SUPPORT PROGRAMS. IN ADDITION TO EVALUATED PROJECTS, THROUGH THE STRATEGIC PLANNING PROCESS EDWARD IDENTIFIED THREE PRIMARY AREAS OF STRATEGIC FOCUS FOR COMMUNITY BENEFIT ACTIVITIES AND RESOURCE ALLOCATION IN ITS 2011-2013 STRATEGIC PLANNING PROCESS: * ACCESS TO CARE * MENTAL HEALTH * OBESITY THE FOLLOWING GOALS WERE SET FOR EACH STRATEGIC PRIORITY IN FISCAL YEAR 2012: ACCESS -FACILITATE ACCESS TO CARE THROUGH FINANCIAL ASSISTANCE TO LOW INCOME RESIDENTS OF THE PRIMARY SERVICE AREA -INCREASE COMMUNITY INVOLVEMENT IN ASSESSING, DEVELOPING, AND ENHANCING PROGRAMS TO ENHANCE ACCESS TO ESSENTIAL HEALTHCARE SERVICES FOR LOW-INCOME AND UNINSURED RESIDENTS -INCREASE THE AVAILABILITY OF AND ACCESS TO PRIMARY CARE SERVICES THROUGHOUT THE PRIMARY SERVICE AREA -PROMOTE APPROPRIATE AND COST EFFECTIVE HEALTHCARE UTILIZATION (RIGHT PATIENT/RIGHT SETTING) MENTAL HEALTH -PROVIDE NEW PROGRAMMING OR RESOURCES TO MEET THE NEEDS OF THE COMMUNITY -PROVIDE SUPPORT FOR EARLY DETECTION OF BEHAVIORAL HEALTH ISSUES -INCREASE COMMUNITY AWARENESS AND EDUCATION REGARDING DIAGNOSIS AND TREATMENT OF MENTAL ILLNESS OBESITY -IMPROVE COORDINATION OF EXISTING PROGRAMS -EXPAND/ENHANCE CHILDHOOD OBESITY PROGRAMMING -DEVELOP ONLINE RESOURCES AND TOOLS FOR OBESITY AWARENESS, PREVENTION AND MANAGEMENT -RESEARCH AND MONITOR NATIONAL, STATE AND REGIONAL INITIATIVES -PARTICIPATE IN COMMUNITY OR LOCAL INITIATIVES EDWARD'S OVERALL RESPONSIVENESS TO THE NEEDS OF OUR COMMUNITY IS EVIDENCED BY OUR WILLINGNESS TO PARTICIPATE IN A RANGE OF COMMITTEES, COALITIONS, PANELS, ADVISORY GROUPS, COMMISSIONS, AND BOARDS. FOR EXAMPLE, DURING FY2012, THE HOSPITAL PROVIDED FINANCIAL SUPPORT TO ACCESS DUPAGE, A COMMUNITY BASED PROGRAM THAT PROVIDES ESSENTIAL HEALTHCARE SERVICES TO UNDER- AND UN-INSURED RESIDENTS OF DUPAGE COUNTY. EDWARD DONATED $500,000 IN FY2012-A DONATION LEVEL THAT HAS MORE THAN DOUBLED SINCE FY2008. IN ADDITION, MEMBERS OF SENIOR STAFF PARTICIPATE IN COALITIONS TO STRENGTHEN PARTNERSHIPS WITH OTHER ORGANIZATIONS FOR THE DEVELOPMENT OF PROGRAMS FOR THE HEALTH OF THE COMMUNITY. AN EXAMPLE IS WILL COUNTY MOBILIZING FOR ACTION THROUGH PLANNING AND PARTNERSHIPS (MAPP), WHICH REPRESENTS A UNIQUE PARTNERSHIP OF HOSPITALS, PHYSICIANS, LOCAL GOVERNMENT, HUMAN SERVICES AGENCIES AND COMMUNITY GROUPS WORKING TOGETHER LOCALLY TO ADDRESS THE NATIONAL HEALTHCARE CRISIS. 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) 658000 0 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 false false false false false false false false ANNETTE KENNEY 0 210144 0 53846 0 10039 0 86190 0 19810 0 380029 0 0 BARBARA P BYRNE MD 0 278548 0 71505 0 10738 0 88933 0 21690 0 471414 0 0 BRENT E SMITH DO 0 289589 0 59249 0 32042 0 41100 0 13932 0 435912 0 0 BRIAN P DAVIS 0 183883 0 47840 0 27203 0 11614 0 25242 0 295782 0 0 DENNISE VAUGHN 0 199518 0 51002 0 28824 0 15078 0 16030 0 310452 0 0 GEORGE KOBUROV MD 291959 0 5191 0 103644 0 14700 0 28583 0 444077 0 0 0 KIMBERLY J STACHE 177855 0 33963 0 239 0 7261 0 4276 0 223594 0 0 0 LINDA DEVEE 137254 0 17124 0 5454 0 9999 0 11647 0 181478 0 0 0 LYNN L COCHRAN 143292 0 17279 0 6519 0 11003 0 18833 0 196926 0 0 0 MARIANNE SPENCER 0 261123 0 66389 0 111938 0 17150 0 31801 0 488401 0 0 MARY L MASTRO 0 246268 0 85195 0 114817 0 17150 0 25564 0 488994 0 0 MICHAEL J HARTMANN MD 291077 0 2631 0 93235 0 12250 0 24470 0 423663 0 0 0 PAMELA M DAVIS 0 736821 0 275426 0 137768 0 217150 0 43368 0 1410533 0 0 PATTI LUDWIG-BEYMER 174816 0 20569 0 37418 0 15840 0 23826 0 272469 0 0 0 PETER T SCHUBEL MD 334440 0 2602 0 93837 0 14700 0 27732 0 473311 0 0 0 RALPH P HOOVER MD 289569 0 2402 0 138274 0 17150 0 32156 0 479551 0 0 0 THOMAS A SCALETTA MD 350055 0 4702 0 86802 0 12250 0 25728 0 479537 0 0 0 VINCENT E PRYOR 0 408160 0 112098 0 20210 0 163099 0 24715 0 728282 0 0 WILLIAM G KOTTMANN 0 271688 0 91975 0 139639 0 17150 0 28769 0 549221 0 0 YVETTE M SABA 168486 0 20978 0 7186 0 10897 0 19078 0 226625 0 0 0 Health or social club dues or initiation fees Schedule J, Part I, Line 1a ALL EHSC EMPLOYEES ARE OFFERED A MEMBERSHIP AT THE EDWARD HEALTH & FITNESS CENTER, AN AFFILIATE OF EHSC, 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 EHSC 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/CEO 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. EDWARD HOSPITAL DOES NOT HAVE AN "EXECUTIVE DIRECTOR" POSITION. ILLINOIS FINANCE AUTHORITY SERIES 2008A 861091967 45200FFF1 2008-04-09 85733137 REVENUE BONDS false false false ILLINOIS FINANCE AUTHORITY SERIES 2008 B-1 B-2 & C 861091967 45200FFY0 2008-04-30 126220000 REVENUE REFUNDING BONDS false false false ILLINOIS FINANCE AUTHORITY SERIES 2009-A 861091967 45200FB65 2009-10-28 43500000 REVENUE REFUNDING BONDS false false false ILLINOIS FINANCE AUTHORITY SERIES 2012A 861091967 2012-03-02 26025000 REVENUE BONDS false false false 0 0 85733137 0 0 0 0 0 0 0 0 0 2008 true false true true 0 0 126220000 0 0 0 186837 0 0 0 0 0 2008 true false true true 0 0 43500000 0 0 0 707220 0 0 0 0 0 2009 true false true true 19430802 0 26025000 6344198 0 0 250000 0 0 0 0 0 2013 true false false true false false false false 0.0000 0.0000 0.0000 true false true true true false 0.0000 0.0015 0.0015 true false false false false 0.0000 0.0241 0.0241 true false false false false 0.0000 0.0379 0.0379 true false false false 0.0 false 0.0 false false false true true CITIGROUPGOLDMAN SACHDEUTSCHE BANK 33.0 true false false 0.0 false false false true true JP MORGAN CHASE 30.0 false false false false false false false false 0.0 false 0.0 false false X DESCRIPTION OF PURPOSE 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. THE BONDS WERE ORIGINALLY ISSUED FOR A NUMBER OF VARIOUS PURPOSES, INCLUDING THE FINANCING OF THE CONSTRUCTION OF THE HEART HOSPITAL, EXPANDING THE HEART HOSPITAL, AND MRI REPLACEMENT. PETER SCHUBEL MD FAMILY MEMBER OF RON SCHUBEL, DIRECTOR 473311 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, 2012 OUR VOLUNTEERS GAVE 94,000 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, 2012, EDWARD HOSPITAL PROVIDED NEARLY $87 MILLION IN COMMUNITY BENEFITS, THE NINTH YEAR IN A ROW THE AMOUNT HAS INCREASED, AND $13.4 MILLION IN CHARITY CARE, A 250% INCREASE SINCE FY 2006. FOR FISCAL YEAR 2012, EDWARD HOSPITAL HAD 85,790 PATIENT DAYS AND 90,768 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, 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, EHSC HUMAN RESOURCES DEPARTMENT, WHICH SUPPORTS EHSC 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, EHSC HUMAN RESOURCES WORKS WITH AN INDEPENDENT THIRD PARTY COMPENSATION CONSULTANT (SULLIVAN COTTER) TO CONDUCT A THOROUGH MARKET REVIEW OF ALL POSITIONS WHICH ARE NOT CONSIDERED SENIOR MANAGEMENT. USING A VARIETY OF SOURCES, OUR SALARY RANGES ARE COMPARED TO THE CURRENT MARKET. PAY GRADE ASSIGNMENTS, AND INDIVIDUAL RATES OF PAY, MAY CHANGE BASED ON THE RESULTS OF THIS ANNUAL MARKET REVIEW. IN ADDITION, ANNUAL MERIT INCREASES MAY BE AWARDED BASED ON EDWARD'S BUDGET FOR THE YEAR. Process used to establish compensation of other officers/key employees Form 990, Part VI, Section B, Line 15b PLEASE SEE THE NARRATIVE TO FORM 990, PART VI, LINE 15A. JOINT VENTURE ARRANGEMENTS FORM 990, PART VI, LINE 16B CURRENTLY, IT IS THE POLICY OF EHSC AND EDWARD HOSPITAL THAT PARTICIPATION BY THE HOSPITAL, OR ANY EDWARD AFFILIATE, IN A JOINT VENTURE REQUIRES REVIEW BY THE EHSC FINANCE COMMITTEE (REGARDLESS OF THE DOLLAR AMOUNT OF THE INVESTMENT) AND APPROVAL BY THE EHSC 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 5 NET UNREALIZED GAINS (LOSSES) ON INVESTMENTS - -2058000; LOSS ON BOND DEFEASEANCE - -781609; LOSS ON INTEREST RATE SWAP LOSSES - -17955495; NET ASSETS RELEASED FROM RESTRICTIONS FROM EDWARD FOUNDATION - -849549; CHANGE IN TEMPORARILY RESTRICTED NET ASSETS OF EDWARD FOUNDATION - 750544; EDWARD HEALTH SERVICES CORPORATION 801 SOUTH WASHINGTON STREET NAPERVILLE IL 60540 363513954 PARENT IL 501(C)(3) 11 - Type II NA false NAPERVILLE PSYCHIATRIC VENTURES 801 SOUTH WASHINGTON STREET NAPERVILLE IL 60540 363965251 HOSPITAL IL 501(C)(3) 3 EHV false EDWARD HEALTH VENTURES 801 SOUTH WASHINGTON STREET NAPERVILLE IL 60540 581672987 SUPPORTING ORG IL 501(C)(3) 11 - Type II EHSC false EDWARD FOUNDATION 801 SOUTH WASHINGTON STREET NAPERVILLE IL 60540 363723705 FUNDRAISING IL 501(C)(3) 7 EHSC false EDWARD HEALTH & FITNESS 801 SOUTH WASHINGTON STREET NAPERVILLE IL 60540 363555528 HEALTH CARE IL 501(C)(3) 9 EHV false EDWARD AMBULANCE SERVICES LLC 801 SOUTH WASHINGTON STREET NAPERVILLE IL 60540 452389060 HEALTH CARE IL 501(C)(3) 11 - Type II EH true EDWARD PHYSICIAN OFFICE CENTER 801 S WASHINGTON ST NAPERVILLE IL 60540 363524485 HEALTH CARE IL EHV RELATED 294940 3634426 false 0.3564 THE CENTER FOR SURGERY LP 801 S WASHINGTON ST NAPERVILLE IL 60540 HEALTH CARE IL NA EDWARD MANAGEMENT CORPORATION 801 SOUTH WASHINGTON STREET NAPERVILLE IL 60540 363833311 MANAGEMENT CORP IL EHV C CORPORATION NAPERVILLE HEALTH CARE ASSOC LTD 801 SOUTH WASHINGTON STREET NAPERVILLE IL 60540 363651180 HEALTH CARE IL EH C CORPORATION 2026954 15212847 1 EHSC CAYMAN SEGREGATED PORTFOLIO 1ST CARRIBEAN HSE 3RD FL 10 MAIN ST GEORGE TOWN CJ 000000000 INSURANCE CJ EHSC C CORPORATION ILLINOIS HEALTH PARTNERS LLC 801 SOUTH WASHINGTON NAPERVILLE IL 60540 452389060 HEALTH CARE IL EHSC C CORPORATION true false true false false false false false false true true true true true false true false true