2012-05-15T11:36:23-05:00 2011-06-30 McGladrey LLP 1 South Wacker Drive Suite 800 Chicago IL 60606 990 2010-07-01 364037473 Elmhurst Memorial Healthcare ELMH 6308338200 155 E Brush Hill Road Elmhurst IL 60126 James F Doyle 6308338200 2012-05-14 1 Zack Fortsch 3126343400 2010 2016-02-24 21:20:13Z X W Peter Daniels 155 E Brush Hill Road Elmhurst IL 60126 67434178 0 5467 X www.emhc.org X 1926 IL A comprehensive health system designed to enhance the health of the community. 21 19 0 0 0 0 0 0 43738083 45261760 -2646639 13083092 743419 1808706 41834863 60153558 0 0 0 0 16003231 11260897 0 0 0 51615338 52666190 67618569 63927087 -25783706 -3773529 517486925 396592752 549434579 535534949 -31947654 -138942197 X Founded in 1926, Elmhurst Memorial Hospital (Hospital or EMH) today is Elmhurst Memorial Healthcare (EMHC), a comprehensive health system with multiple locations and services designed to enhance the health of the communities and customers it serves. The organization now includes a hospital that operates 330 beds and a staff of more than 3,000 employees and approximately 600 physicians who are committed to excellence in medical and surgical care, behavioral health, cardiology, emergency care, gastroenterology, maternity, neurosurgery, oncology, orthopedics and pediatrics.In July 2004, the Board of Trustees of Elmhurst announced its decision to initiate a planning process to develop a new, integrated health care campus on 50 acres of land acquired in southern Elmhurst. Construction began in the spring of 2008 and was completed in June 2011. The new hospital opened in June 2011. 0 1 52678445 45327651 For more than 50 years, the Elmhurst Clinic has worked to provide more than just good medical care. It has established itself in DuPage County as one of the premier multi-specialty medical groups, providing a range of care for the entire family. Today, the Clinic has expanded to include more than 100 multi-specialty providers in eight locations, including in Addison, Bloomingdale, Elmhurst, Lombard, Oak Park, Oakbrook Terrace and Wood Dale. In fiscal year 2011, the Clinic logged more than 270,000 physician office visits. Elmhurst Memorial Primary Care Associates became affiliated with Elmhurst Memorial Healthcare in 2009. The group's model of care is built around having small practices where patients receive personalized, holistic care with state-of-the-art services. Elmhurst Medical Associates became affiliated with Elmhurst Memorial Healthcare in 2010. With an office location in Elmhurst, the seven physicians in the group are committed to enhancing the services offered to their patients, as is evidenced by efforts to adopt an electronic medical records system as well as implementing a more integrated, holistic approach to offer convenient health care. Elmhurst Memorial Oncology Services' approach to care brings patients the best of both worlds - exceptional care that is close to home. An affiliation with the Cancer Center at Elmhurst Memorial Hospital means patients will receive a complete continuum of care with the same leading-edge procedures available at a university hospital. In fiscal year 2011, the Elmhurst Clinic, Elmhurst Memorial Primary Care Associates, Elmhurst Medical Associates and Elmhurst Memorial Oncology Services merged to become the comprehensive Elmhurst Physician Practice Division, which is wholly owned by the Hospital. Assets and substantial activities were transferred to the Hospital. 52678445 1 0 0 0 0 0 0 0 0 1 1 0 1 1 1 0 1 0 0 0 0 0 0 0 0 0 0 0 0 1 0 0 0 0 0 0 0 1 0 0 0 0 0 1 1 1 1 0 0 0 1 46 0 1 0 0 1 CJ 0 0 0 0 0 0 0 0 X 21 19 0 0 1 0 1 1 0 1 1 0 1 1 1 1 1 1 1 1 1 1 1 1 IL X Kym Benson 6308331400 155 E Brush Hill Road Elmhurst IL 60126 See Elmhurst Memorial Healthcare 1.00 X 0 100001 0 0 100001 0 0 0 0 0 Elmhurst Clinic LLC 172 Shiller Ave Elmhurst IL 60126 Physicians 26849449 NextGen Healthcare Information 18111 Von Karman Ave Irvine CA 92612 Software Installation 447560 Gilbane Building Co 8550 Bryn Mawr Ave Chicago IL 60631 Construction services 384816 Phytel Inc 11511 Luna Rd Dallas TX 75234 Patient outreach services 252566 Shaker & Associates Management Div 1100 Lake Street Oak Park IL 60301 Property Management 209049 6 Net Patient Serv. Rev. 623000 45261760 45261760 45261760 5304678 5304678 749514 14956 734558 734558 734558 15044078 0 7257885 7779 7786193 -7779 7778414 7778414 Cash Settlement-swaps 900099 1008257 1008257 Finance Charges 900099 54841 54841 11050 11050 1074148 60153558 45327651 0 14825907 9548594 9426113 122481 52610 52610 1081363 1058656 22707 578330 578330 215263 3432 211831 68920 29520 39400 969232 969232 32252493 32136192 116301 371120 35144 335976 741001 741001 2480507 1655672 824835 20715 16688 4027 208420 34722 173698 7663086 716 7662370 1536947 810509 726438 1907841 1907841 Clinical Expense 2191392 2191392 Bad Debt Expense 1613866 1613866 Billings & Collections 386041 386041 Other Purchased Service 26042 26042 13304 13304 63927087 52678445 11248642 0 10668633 17444553 4010438 5005236 271316 4440917 3874653 83802150 3416208 85430861 80385942 355908454 231111656 33505794 35305231 1026538 23250512 22438943 517486925 396592752 12954610 8088836 19174875 14222594 517133103 512048564 171991 1174955 549434579 535534949 X -31947654 -138942197 -31947654 -138942197 517486925 396592752 X -3773529 -103221014 X 0 1 1 X 0 X 68021144 68021144 10652280 2301337 8350943 56424 5135 51289 3188422 905541 2282881 1883880 204195 1679685 80385942 Investment in Subsidiary 444469 F Hedge Fund 34860762 F 35305231 Bonds 7948338 Debt Service Reserve 14359605 Investment in PHO 131000 22438943 Due to Affiliates 1031255 Other Long-Term Borrowings 143700 1174955 Description of Uncertain Tax Positions Under FIN 48: Part X: Elmhurst Memorial Healthcare files a Form 990 (Return of Organization Exempt from Income Tax) annually. When the returns is filed, it is highly certain that some positions taken would be sustained upon examination by the taxing authorities, while others are subject to uncertainty about the merits of the position taken or the amount of the position that would ultimately be sustained. Examples of tax positions common to health systems include such matters as the following: the tax exempt status of each entity, the continued tax exempt status of bonds issued by the obligated group, the nature, characterization and taxability of joint venture income and various positions relative to potential sources of unrelated business taxable income (UBIT). UBIT is reported on Form 990T, as appropriate. The benefit of a tax position is recognized in the consolidated financial statements in the period during which, based on all available evidence, management believes that it is more likely than not that the position will be sustained upon examination, including the resolution of appeals or litigation processes, if any. Tax positions are not offset or aggregated with other positions. Tax positions that meet the "more likely than not" recognition threshold are measured as the largest amount of tax benefit that is more than 50 percent likely to be realized on settlement with the applicable taxing authority. The portion of the benefits associated with tax positions taken that exceeds the amount measured as described above is reflected as a liability for unrecognized tax benefits in the accompanying consolidated balance sheets along with any associated interest and penalties that would be payable to the taxing authorities upon examination. Upon the adoption of the Financial Accounting Standards Board (FASB)-issued guidance at July 1, 2008, and as of each subsequent fiscal year-end, there were no unrecognized tax benefits identified and recorded as a liability. Central America and the Caribbean Investments 34860762 0 0 0 0 0 0 34860762 0 34860762 0 0 0 1 0 0 Village of Lombard Illinois 366005975 0541593AP 2004-04-07 6482000 Construct Lombard Memorial Health Center 0 0 0 Illinois Finance Authority 861091967 45200FGW3 2008-05-22 119829861 Construct new hospital 0 0 0 Illinois Finance Authority 861091967 45200FHAO 2008-05-22 250000000 Construct new hospital 0 0 0 Illinois Finance Authority 861091967 45200BN61 2006-12-12 47000000 Acquire land, construct and equip facilities 1 0 0 6482000 146213 114358 6335987 2006 0 0 1 1 119829861 10649626 1073976 14418518 104974355 0 0 0 1 250000000 1192837 11637623 248293412 1 0 0 1 47000000 235000 47891166 2008 0 0 1 1 0 0 0 0 1 1 0 0 0 0 1 1 0 0 0 0 1 1 0 0 0 0 1 1 0 1 0 0 0 0 0 0 0 0 0 0 0 1 0 0 0 0 0 1 0 0 0 1 Midwest Heart Specialists Lou McKeever, MD, trustee, is an officer on the board of MHS 1320161 Cardiology services 0 Land & Land Improvements 2011-01-01 984854 Book value 362167784 Elmhurst Memorial Hospital 155 E Brush Hill Road Elmhurst IL 60126 501(c)(3) Building 2011-01-01 1501702 Book value 362167784 Elmhurst Memorial Hospital 155 E Brush Hill Road Elmhurst IL 60126 501(c)(3) Leasehold Improvements 2011-01-01 1509824 Book value 362167784 Elmhurst Memorial Hospital 155 E Brush Hill Road Elmhurst IL 60126 501(c)(3) Medical Equipment 2011-01-01 492006 Book value 362167784 Elmhurst Memorial Hospital 155 E Brush Hill Road Elmhurst IL 60126 501(c)(3) Office Equipment 2011-01-01 110479 Book value 362167784 Elmhurst Memorial Hospital 155 E Brush Hill Road Elmhurst IL 60126 501(c)(3) Computer Equipment 2011-01-01 1123429 Book value 362167784 Elmhurst Memorial Hospital 155 E Brush Hill Road Elmhurst IL 60126 501(c)(3) Medical Furniture 2011-01-01 101392 Book value 362167784 Elmhurst Memorial Hospital 155 E Brush Hill Road Elmhurst IL 60126 501(c)(3) Office Furniture 2011-01-01 204757 Book value 362167784 Elmhurst Memorial Hospital 155 E Brush Hill Road Elmhurst IL 60126 501(c)(3) 0 0 0 0 Changes in Program Services Form 990, Part III, line 3 In fiscal year 2011, the Elmhurst Clinic, Elmhurst Memorial Primary Care Associates, Elmhurst Medical Associates and Elmhurst Memorial Oncology Services merged to become the comprehensive Elmhurst Physician Practice Division. Elmhurst Memorial Healthcare is committed to implementing provider based status for all physician groups who are affiliates of the health system. This change was effective as of January 1, 2011. All of the affiliated office locations have become outpatient clinics of Elmhurst Memorial Healthcare. Aligning these outpatient clinics closer to the health system allows them to retain high quality physicians, establishes enhanced quality and safety standards, provides more consistency in the delivery of care, and supports up-to-date facilities. In addition, the fixed assets associated with these divisions were transferred at book value to Elmhurst Memorial Hospital. Form 990, Part VI, Section A, line 4 The Elmhurst Memorial Healthcare's Bylaws and the administrative policy regarding the reporting of compliance concerns were changed in 2011. Form 990, Part VI, Section A, line 6 The Board of Governors and Emeritus members are the members of Elmhurst Memorial Healthcare. Form 990, Part VI, Section A, line 7a The members are able to elect a Chairman and Vice Chairman of the Board of Governors, elect individuals to fill vacancies as terms expire of the Board of Trustees of the Corporation and remove Trustees in accordance with the Bylaws. Form 990, Part VI, Section B, line 11 A review of the Form 990 was done by the Finance Committee before it was filed with the IRS. The review was led by the Finance Committee chair at its March meeting and comprised of an overview of the Form 990 and selected detailed items. The final Form 990 is provided to the board members before filing. Form 990, Part VI, Section B, line 12c EHMC regularly and consistently monitors its conflict of interest policy by requiring prompt and full disclosure of existing or potential conflicts of interest and in addition, sends out an annual conflict of interest questionnaire to members of the Boards of Trustees of Elmhurst Memorial Healthcare and each affiliate, non-Trustee members of Board committees, Nutrition and Therapeutics Committee, Healthcare Management Council, Department Heads and those with purchasing authority in excess of $50,000. The annual questionnaires are reviewed by the Director, Risk Management/Corporation Compliance Officer and the appropriate Board or committee chairman. In the event that a potential conflict arises, the results may be discussed with any and all individuals necessary to come to a final determination. In the event that the conflict of interest may potentially impair that person's ability to fulfill their duty to EMHC or affiliate, that person will be given an opportunity to eliminate the conflict or to resign, as reasonably determined. Form 990, Part VI, Section B, line 15 The executive compensation program has been designed under the direction of the Human Resource Committee (Committee) of the Board of Trustees, to attract and retain a highly qualified executive team and directly link their pay to the attainment of both corporate and personal performance objectives. The Committee is comprised of outside, independent individuals with relevant expertise in a range of fields. The Committee reviews executive compensation annually with input from Towers Perrin, an independent expert consulting firm. Included in this review are tests of the executive pay structure against a number of available comparator groups and data sources. The process is designed to meet the requirements of the IRS' rebuttable presumption of reasonableness. Base salaries for executives are established by the Committee to reflect each executive's scope of responsibility and individual performance. The Committee uses a "scorecard" approach to evaluate performance which provides comprehensive performance measures and indicators and enables the Committee to evaluate performance and progress with respect to critical goals. The Committee maintains minutes of its proceedings and deliberations and makes recommendations to the Board of Trustees for their consideration and action. Form 990, Part VI, Section C, line 19 EMHC and its subsidiaries' audited financial statements are made available on the organization's website. Governing documents and conflict of interest policy are not available to the general public. Changes in Net Assets or Fund Balances: Form 990, Part XI, line 5: Net unrealized gains on investments: 38,617,413. Amortization of gain on discontinuation of hedge accounting 178,463. Gain from Subsidiary 123,067. Cash transfers -101,438,410. Transfers to Affiliates -40,701,547. Total to Form 990, Part XI, Line 5: -103,221,014. Elmhurst Physician Practice Division 155 E Brush Hill Road Elmhurst IL 60126 263633852 Physician Division IL -7348626 6666674 Elmhurst Memorial Healthcare Elmhurst Memorial Hospital 155 E Brush Hill Road Elmhurst IL 60126 362167784 Healthcare provider IL 501(c)(3) Line 3 Elmhurst Memorial Healthcare 1 Elmhurst Memorial Home Health 855 North Church Court Elmhurst IL 60126 363962253 Patient care services IL 501(c)(3) Line 9 Elmhurst Memorial Hospital 1 Elmhurst Memorial Hospital Foundation 155 E Brush Hill Road Elmhurst IL 60126 363083197 Supporting hospital IL 501(c)(3) Line 7 Elmhurst Memorial Hospital 1 Elmhurst Outpatient Surgery Center LLC 1200 S York Road Elmhurst IL 60126 364150045 Outpatient Surgery IL N/A Cyberknife Center of Chicago LLC 40 Burton Hills Blvd Ste 320 Nashville TN 37215 264331429 Outpatient Surgery IL N/A Elmhurst Memorial Health Technologies LLC 855 North Church Court Elmhurst IL 60126 363229839 Practice Management IL Elmhurst Memorial Healthcare C 1874275 1.00000 0 0 0 0 0 0 0 0 0 0 0 1 0 0 1 0 1 1 Elmhurst Memorial Hospital Q 145932362 Elmhurst Memorial Home Health R 3792405 Elmhurst Memorial Health Technologies LLC L 406481 Elmhurst Memorial Health Technologies LLC O 8976089