2011-07-14T15:24:08-05:00 2010-08-31 Deloitte Tax LLP 111 S Wacker Drive Chicago IL 606064301 990 2009-09-01 362256036 Rehabilitation Institute of Chicago REHA 3122381000 345 E Superior St Chicago IL 606112654 EDWARD B CASE - CFO 3122381000 2011-07-14 1 3124861000 2009 2016-02-24 21:20:13Z Edward B Case 345 E Superior Chicago IL 606112654 251729894 0 X www.ric.org X 1951 IL The Rehabilitation Institute of Chicago ("RIC") is dedicated to excellence in providing the highest quality patient care, research and education. RIC is the leader in rehabilitation care. With compassion, hope and creativity as the hallmarks of service, RIC strives for the fullest assimilation and acceptance of the physically disabled in the community. 15 14 1714 270 178651 145480 4630557 46049555 155925000 160692144 3653400 12423940 983145 714379 165192102 219880018 64477 0 91904433 98796420 33333 1791774 67277462 65549454 159181895 164443684 6010207 55436334 299052052 399701001 153676567 217273031 145375485 182427970 The Rehabilitation Institute of Chicago ("RIC") is dedicated to excellence in providing the highest quality patient care, research and education. RIC is the leader in rehabilitation care. With compassion, hope and creativity as the hallmarks of service, RIC strives for the fullest assimilation and acceptance of the physically disabled in the community. 0 0 144884695 64477 161186673 Founded in 1954, RIC, an Illinois not-for-profit corporation, earned the distinction of being named the nation's #1-ranked provider of comprehensive physical medicine and rehabilitation care to patients from around the world for 20 years - a record for any U.S. specialty hospital. RIC also has grown into the nation's largest rehabilitation research enterprise, advancing the field globally through innovation of the most advanced treatments and technologies. RIC is the only hospital in the nation to hold a record seven federally designated research programs in the areas of stroke, brain injury, spinal cord injury, patient outcomes, rehabilitation engineering, bionic medicine, and pediatric orthopedics.RIC's vision is to advance human ability through science and research. In December 2009, it acquired a parcel of land one block from its current flagship facility, and continues the conceptual planning phase to develop a new, state-of-the-art facility unlike any that exists in the world today. The new facility will enable RIC to integrate clinical care and research to surround the patient and drive new methods of care, recovery and even cures. RIC's Care Quality and Delivery HighlightsRIC currently operates a system of care consisting of a 165-bed hospital and outpatient facility, located at 345 E. Superior Street in Chicago, Illinois, as well as a number of other facilities and joint ventures. In FY 2010, RIC treated more than 6,100 inpatients and delivered approximately 912,000 outpatient therapy units. RIC's facilities are staffed by approximately 1,500 medical professionals and support personnel, a dedicated team who treated patients from 47 states and 11 countries. Each patient of RIC is assigned a personalized care team consisting of the field's most well-trained rehabilitation doctors, nurses, therapists, care managers and clinical specialists. No other specialty hospital in the nation has a more experienced track record:- RIC delivers patient outcomes that exceed national and regional averages across all areas of specialty.- RIC treats more patients and provides more effective inpatient rehabilitation than others. - RIC is one of only 2% of the nation's nearly 6,000 hospitals to have achieved Magnet designations and their consecutive Magnet redesignation for nursing excellence from the American Nurses Credentialing Center (ANCC). 144884695 1 1 0 1 0 0 0 1 1 1 0 1 0 0 1 0 0 1 1 0 1 1 0 1 1 0 0 0 0 0 0 0 0 0 1 1 0 0 0 1 1 1 0 0 1 272 0 1 1714 1 1 1 0 0 0 0 1 1 0 0 0 15 14 0 1 0 0 1 1 1 1 1 0 1 1 1 1 1 1 1 1 1 1 0 IL X Edward B Case 3122381000 345 E Superior Street Chicago IL 606112654 M Jude Reyes 1.00 X 0 0 0 Thomas A Reynolds 1.00 X 0 0 0 Wayne R Andersen 1.00 X 0 0 0 Susan Barclay 1.00 X 0 0 0 John H Catlin 1.00 X 0 0 0 William J Cernugel 1.00 X 0 0 0 Wesley M Dixon Jr 1.00 X 0 0 0 Daniel D Dolan Jr 1.00 X 0 0 0 Polly B Kawalek 1.00 X 0 0 0 Michael L Keiser 1.00 X 0 0 0 William E Lowry Jr 1.00 X 0 0 0 David D Olson 1.00 X 0 0 0 Marilyn Thoma 1.00 X 0 0 0 William S Wardrop Jr 1.00 X 0 0 0 Michael P Krasny 1.00 X 0 0 0 Andrew McKenna Jr 1.00 X 0 0 0 Joanne C Smith MD 40.00 X X 1009275 0 221528 Edward B Case 40.00 X 634048 0 182801 Nancy E Paridy 36.00 X 368449 0 53002 Peggy M Kirk 40.00 X 403860 0 75318 Lois M Huggins 40.00 X 410017 0 75991 Terrence P Glennon MD 40.00 X 339712 0 57971 James Sliwa DO 40.00 X 440449 0 105464 Joel M Press MD 40.00 X 308637 0 39816 Luciano Dias MD 40.00 X 308406 0 25540 Collins Fitzpatrick MD 40.00 X 361178 0 45701 4584031 0 883132 104 0 1 0 McGaw Medical Center 645 N Michigan Avenue Chicago IL 60611 Resident Staffing 2585517 Northwestern Memorial Hospital PO Box 73690 Chicago IL 606737690 Medical Services 2104150 Sodexho Operations LLC 4880 Payshere Circle Chicago IL 60674 Food services 1318394 Complete Custom Services 1655 Pebble Beach Way Vernon Hills IL 60061 Construction 1300419 Margatie Transportation Inc 3834 Franklin Avenue Western Springs IL 60558 Transportation 991531 58 1560878 297186 44191491 59938 46049555 Net Patient Revenue 621990 139529175 139529175 Pships/Affiliation Inc 900099 8199718 8185905 13813 Medicaid Provider Tax 621990 7224507 7224507 Medicare GME Payment 621990 873962 873962 Tuition 900099 809940 809940 4054842 4054842 160692144 1883009 164838 1718171 508342 508342 508342 508342 32004380 9667522 31130971 873409 9667522 10540931 10540931 218400 1560878 718905 -500505 -500505 Cafeteria Sales 900099 706542 706542 706542 219880018 161186673 178651 12465139 64477 64477 3571147 343485 3227662 78857275 73382830 4246561 1227884 3082202 2813904 221285 47013 7721140 7563965 124478 32697 5564656 5149505 334590 80561 2437857 1664871 756701 16285 306350 306350 190144 190144 213300 213300 33333 33333 679842 606925 72917 11149063 10433401 665034 50628 448891 293230 149687 5974 12168672 11614747 486180 67745 2438312 2321250 84053 33009 5615284 5447493 166631 1160 310716 233381 58694 18641 670724 617925 40564 12235 2263510 32901 2230609 10436421 9331845 1092220 12356 2328800 106514 2222286 Medicaid Provider Tax 6634603 6634603 Patient Service Bad Deb 2010131 2010131 Patient Transportation 1374724 1374724 Contract Labor 1208906 1035904 171502 1500 Membership Dues 297755 206044 74708 17003 2365449 2207565 97051 60833 164443684 144884695 17767215 1791774 11029180 30265375 1679919 33230192 18963932 20693000 1105330 1112287 2487654 4677041 231823686 139594242 69236642 92229444 73941575 69699172 103913447 129195376 12890111 12458883 1008308 911647 2795954 5228584 299052052 399701001 18724855 9517998 425819 2775399 52700000 90675000 20000000 20000000 9043363 52782530 94304634 153676567 217273031 X 93123721 90779451 15501000 51329136 36750764 40319383 145375485 182427970 299052052 399701001 X 0 1 1 X 1 1 X RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED 0 0 0 0 0 0 1 742 0 1 212558 213300 0 Part II-B, Line 1i: Explanation of Other Lobbying Activities: Rehabilitation Institute of Chicago lobbies Federal and State governments on issues related to Medicare, Medicaid and other government health care programs related to the rehabilitation field. Most of the lobbying expenses are to third party legal and lobbying firms as well as the Illinois and American Hospital Associations. 1 2000000 2000000 0 49985875 5568617 4143619 2407868 57290243 56604191 673884 -5217142 2075058 49985875 0.01700 0.72100 0.26100 0 0 32971302 32971302 112550676 82913290 29637386 7909355 7909355 76526267 56680952 19845315 1866086 1866086 92229444 Absolute Return 33333012 F Hedged Equity 20602318 F Large-Cap Equity 12569702 F International Hedged Equity 5294038 F International Equity 11800907 F Small Cap Equity 5287584 F Cash and cash equivalents 9743904 F Private Equity, Real Assets & Small Cap 30563911 F 129195376 Due to affiliates 16260000 Self-insurance reserves 5276000 Accrued Pension 48178969 Swap Liability 11966699 Accrued Salaries/wages 11373583 Deferred Lease Liability 1249383 94304634 Part IV, Line 1b: RIC has access to an escrow account to be used to pay for potential environmental remediation for real estate purchased during the year ending August 31, 2010. Part V, Line 4: Description of Intended Use of Endowment Funds: The intended use for each of the RIC endowment funds is established by the donor. The majority of the endowment funds are used to support medical education, clinical support, free care, research, medical leadership, fellowships and the RIC Academy. Part X: Description of Uncertain Tax Positions Under FIN 48: The Corporations perform an annual review of all tax positions and measure the potential tax benefit on the financial statements in which there is uncertainty as to whether the tax position will ultimately be sustained as filed within a tax return. The potential impact of the uncertainty on the Corporations' consolidated financial statements is minimal. Middle East and North Africa 5 Program services Travel related to clinical care, presentation of papers, and business development. 77878 0 5 77878 X X X X X X X 1 Charles R Feldstein & Co Advisory Services for Capital Campaign 0 0 137500 0 137500 IL Medicine Ball 742007 681807 60200 41237 71195 75000 28090 SkyRise Chicago 661252 578847 82405 9000 7900 284435 4 376019 300224 75795 2100 10577 65300 70523 9640 43908 1779278 1560878 218400 2100 19577 106537 149618 84640 356433 718905 -500505 1 1 X 1 X 250.000000000000 1 X 1 1 0 1 1 704139 704139 0.00400 24560562 19983082 4577480 0.02580 416042 305165 110877 0.00060 25680743 20288247 5392496 0.03040 2052916 137165 1915751 0.01080 7552365 1765825 5786540 0.03260 541578 369732 171846 0.00100 2547768 2547768 0.01440 64477 64477 0.00040 12759104 2272722 10486382 0.05920 38439847 22560969 15878878 0.08960 271264 16694 254570 0.00160 271264 16694 254570 0.00160 1 1039100 555782 38034016 37043383 990633 X 1 1 Rehabilitation Institute of Chicago

345 E Superior Street Chicago IL 60611

X X X Physical Rehabilitation RIC Day RehabCtr-Ravenswood

1945 W Wilson Avenue Suite 100 Chicago IL 60640

Day Rehabilitation RIC Day Rehab Ctr-Wheeling

5150 Capitol Drive Wheeling IL 60090

Day Rehabilitation RIC Day Rehab Ctr & OP Ctr-Homewood

1055 W 175th Street Suite 101 Homewood IL 60430

Day/Outpatient Rehab & Physician Practice RIC Day Rehab Ctr & OP Ctr-Northshore

755 Skokie Boulevard Northbrook IL 60062

Day/Outpatient Rehab & Physician Practice RIC Day Rehab Ctr & OP Ctr-Willowbrook

6705 Kingery Highway Willowbrook IL 60527

Day/Outpatient Rehab & Physician Practice RIC Day Rehab Ctr-River North

307 W Grand Avenue Chicago IL 60610

Day Rehabilitation RIC Ctr for Pain Management

980 N Michigan Avenue Suite 800 Chicago IL 60611

Outpatient Rehabilitation & Physican Practice RIC OP Center-Hyde Park

5548 S Hyde Park Boulevard Chicago IL 60637

Outpatient Rehabilitation & Physican Practice RIC OP Center-Northshore (annex)

900 Skokie Boulevard Northbrook IL 60062

Outpatient Rehabilitation & Physican Practice RIC Spine and Sports Rehab Ctr

1030 N Clark Street Chicago IL 60610

Outpatient Rehabilitation & Physican Practice RIC Spine & Sports Rehab Ctr-River Fores

420 Thatcher Avenue River Forest IL 60305

Outpatient Rehabilitation & Physican Practice Alexian Rehab Hospital Day Rehab Service

935 Beisner Road Elk Grove Village IL 60007

Day Rehabilitation RIC at Alexian Rehab Hospital

935 Beisner Road Elk Grove Village IL 60007

X RIC at Advocate IL Masonic Med Ctr

836 W Wellington Avenue Chicago IL 60657

X RIC & Herrin Hospital Acute Rehab Ctr

201 S 14th Street Herrin IL 62948

X Part I, Line 7: The best available data was used to calculate the cost amounts reported in item 7. The Medicare cost report was the source used where a program category was separately identifiable. In other cases the internal cost allocation model was used as the source of the cost. The Medicare cost report cost to charge ratio was used to determine the cost of charity and bad debt. Part III, Line 4: Footnote 5 - Many of the Institute's patients are reluctant and do not provide the information necessary to qualify for charity care. Therefore, a portion of the Institute's bad debt expense represents patients that do not have the financial ability to pay.The best available data was used to calculate the cost amounts reported in item 7. The Medicare cost report was the source used where a program category was separately identifiable. In other cases the internal cost allocation model was used as the source of the cost. The overall cost to charge ratio from the Medicare cost report was used to determine the cost of charity and bad debt.Part III, Line 8: The cost to charge ratio from Worksheet C of the Medicare cost report times the Medicare gross charges from the cost report less GME payments was used to determine Medicare allowable cost. Part III, Line 9b: Collection Activities:The Director of Patient Financial Services/designee will determine if the statutory conditions for pursuing collection have been met and provide written approval before a collection agency or law firm may initiate legal action against the patient for nonpayment of their bill. Part VI, Line 2: The needs of our community are assessed on an ongoing basis. We receive input from our community through our patient feedback programs, community support groups and through our clinicians and physicians who are interacting with them every day. The RIC LIFE Center provides education and support for the disabled community regardless if they receive services from RIC or not. The Life Center served over 24,000 people in the last year throughout the world. Through this connection we are able to collect and track the resource needs of our community. We also have a number of disabled members on our governing and auxiliary boards. These individual help guide the mission, vision and services at RIC. Part VI, Line 3: RIC assures that each registration/admission location contains signage (in English and other predominant languages of the RIC patient population) notifying patients that financial assistance is available to qualified individuals. This notice is also posted on RIC's website (www.ric.org), along with RIC's Financial Assistance Program process and application. Information regarding the Financial Assistance Program and the application is available in each RIC registration/admission location. The information regarding financial assistance also appears on every self pay statement sent to our patients. Part VI, Line 4: As a specialty hospital, RIC defines the patients it serves broadly as the disabled community throughout the state of Illinois, the United States and around the world. Due to RIC's unique services and its reputation as the leader in rehabilitation medicine, many patients will travel long distances for care. Approximately 85% of RIC inpatients come from the 7-county area surrounding Chicago. This represents a primary reach of 50 miles. In addition to those Chicagoland area patients, RIC also cares for patients from other states (30+) and from other countries. RIC continues to increase its outreach and has impacted the lives of individuals in North, Central and South America; Europe; Africa; Asia (predominately the Middle East); and Australia.The largest users of rehabilitation medicine are those 45-64 years of age and those 65+. RIC continues to serve this group of people and conducts strategic planning around the needs of the "Baby Boomer" population, which is projected to have substantial growth in the Chicagoland area. Part VI, Line 5: Women with Disabilities Center: The Women with Disabilities Center (WWDC) was founded to address the unique needs of women and girls with disabilities, ranging from the most complex (including cerebral palsy, spinal cord injury, stroke and traumatic brain injury) to the more common (such as arthritis, chronic pain and sports injuries). Serving about 10,000 individuals each year, WWDC provided such basic reproductive health care services as access to pelvic exams and mammograms at RIC as well as domestic violence services, weekly peer support groups, educational seminars, a resource and information center, guidance for parents with disabilities, a professional referral network, and a mentoring program that paired teenage girls with women who have a disability.WWDC also collaborated with university-based hospitals and disability centers to train mammographers how to give quality mammograms to women with physical and cognitive disabilities. The WWDC clinic not only provided a range of basic health and reproductive services to women, it established a working model that showed how other health care providers could meet the needs of women with disabilities. Ultimately, RIC was able to move the services out into the community, making them available at multiple local clinics. In March of 2010 the entire program was transitioned to Access Living, a preeminent disability advocacy organization which had also been founded and funded at RIC. Part VI, Line 6: RIC provides a number of services that do not generate revenue, solely for the purposes of improving the health and quality of life for our community. These services include: research to improve patient outcomes; educational resources on living with a disability available to anyone through the internet; vocational training and placement services; support groups to assist in psychological adjustment; fitness and sports training program to promote physical activity and case management for high risk patients discharged to the community.Any surplus funds are used to support these non-revenue patient centered activities as well as develop programs, sponsor research and improve facilities. In the past several years, RIC has implemented multiple sustainable guidelines and procedures to ensure that it is using the most innovative, "green" practices when updating, remodeling, and redecorating facilities and structures throughout its 30-plus sites of care. Part VI, Line 7: IL 1 Access Living 115 West Chicago Avenue Chicago IL 60654 363310774 501(c)(3) 44742 To fund the Women with Disabilities program which was transferred from RIC to Access Living IHREF 24676 Network Place Chicago IL 606731246 237421930 501(c)(3) 9735 Improve access to care by helping IL hospitals address problems with IL Medicaid program Pathways c/o PJH Assoc Inc 205 W Wacker Dr 1400 Chicago IL 60606 363677342 501(c)(3) 10000 General support - 25th anniversary celebration 3 0 Procedure for Monitoring Grants in the U.S.: Part I, Line 2: Schedule I, Part I, Line 2: Grants are determined by executive leadership. Monitoring is done through continued relationships with grantee organizations, whether by membership or community liaison. X 0 1 X X X X X 0 1 0 0 0 0 0 1 0 Joanne C Smith MD 595063 0 388700 0 25512 0 204288 0 17240 0 1230803 0 0 0 Edward B Case 409309 0 215000 0 9739 0 168948 0 13853 0 816849 0 0 0 Nancy E Paridy 245768 0 120000 0 2681 0 47969 0 5033 0 421451 0 0 0 Peggy M Kirk 274150 0 126400 0 3310 0 58397 0 16921 0 479178 0 0 0 Lois M Huggins 272948 0 135000 0 2069 0 65307 0 10684 0 486008 0 0 0 Terrence P Glennon MD 309389 0 27432 0 2891 0 39731 0 18240 0 397683 0 0 0 James Sliwa DO 295541 0 139000 0 5908 0 88724 0 16740 0 545913 0 0 0 Joel M Press MD 254969 0 51134 0 2534 0 23076 0 16740 0 348453 0 0 0 Luciano Dias MD 298708 0 0 0 9698 0 15000 0 10540 0 333946 0 0 0 Collins Fitzpatrick MD 299623 0 60613 0 942 0 30116 0 15585 0 406879 0 0 0 Part I, Line 1a Gross-up payments: The organization provides supplemental disability insurance for the CEO and other senior leaders. In order to leverage the lower cost of an existing policy, the organization reimburses the CEO for the premium related to this policy. The amount is grossed up to cover applicable taxes. Part I, Line 1b Reimbursements are made pursuant to an agreement. Part I, Line 4b: For 2009, the following amounts for the 457(f) retirement plan are included in compensation as shown in Schedule J, Part II for each affected individual: Joanne C. Smith, MD - $171,288 Edward B. Case - $130,448 Nancy E. Paridy - $31,469 Lois Huggins - $32,307 Peggy M. Kirk - $41,897 James Sliwa, DO - $72,224 Terrence P. Glennon, MD - $11,231 Joel M. Press, MD - $6,576. Part I, Line 7 Executive leadership participate in a variable incentive compensation plan. Amounts are a percent of base salary. Certain financial and quality triggers need to be met, and then the percent awards are determined by institutional financial performance, patient satisfaction scores, and individual performance metrics. Illinois Finance Authority 861091967 45200FF87 2009-12-09 90675000 See Schedule O 0 0 90675054 54184 1180142 4794858 32000054 2009 1 0 0 1 0 0 1 0 1 0.00130 0.00130 1 0 1 0 0 0 1 Hill-Rom Inc Joanne C. Smith serves as a Hill-Rom Director and an RIC Director 428991 Asset Purchase - Purchase of beds 0 LCM Architects John H. Catlin is a partner at LCM and serves as an RIC Director 101920 Independent contractor arrangement 0 X 5 41728 Cost or selling price X Silent auction items at Bearcat Ball 73 9910 Cost or selling price X Raffle from Antiques Fair 6 8300 Cost or selling price 0 0 1 Third Party Use: Part I, Line 32b: Gifts of stock are processed by RIC's brokerage firm, which has an immediate sell order for all stock gifts received. Form 990, Part VI, Section A, line 3 Crothall Services Group managed our facilities and housekeeping services. Sodexho managed our food services until July 2010, at which time Morrison Management Specialists assumed responsibility. Form 990, Part VI, Section A, line 6 Rehabilitation Institute, Inc. (RII) is the sole corporate member of RIC. Form 990, Part VI, Section A, line 7a RII has the ability to elect members of the governing body. Form 990, Part VI, Section A, line 7b RII is the sole member with the sole voting rights to do the following: appoint RIC board members; approve amendments to the articles of incorporation and bylaws; approve corporation annual budget and long-range plan; approve those contracts and loans in excess of $250,000 not included in previously approved budget; approve any merger, consolidation, voluntary dissolution or creation of any subsidiary; and approve the sale, lease, exchange, mortgage, pledge or other disposition of all or substantially all of the corporation assets. Form 990, Part VI, Section B, line 11 Data for the Form 990 is prepared internally, and a 3rd party tax preparer then prepares the Form 990. It is then reviewed internally and presented in draft form first to the Finance and Audit Committee of the Board and then distributed electronically to the full Board. Form 990, Part VI, Section B, line 12c All newly hired employees are required to complete a conflict of interest disclosure form at the time of new-employee orientation. In addition, all employees are required to complete such a form on an annual basis. Directors and Officers complete a Conflict of Interest Questionnaire on an annual basis. Form 990, Part VI, Section B, line 15 The Compensation and Leadership Development Committee of the Board has authority to approve all executive compensation; an independent consultant specializing in the field of executive compensation and benefits is hired by the Compensation and Leadership Development Committee of the Board to review and provide an opinion about the executive compensation that it is fair, reasonable and market appropriate. Form 990, Part VI, Section C, line 19 RIC does not routinely make documents available to the general public, but the conflict of interest policy and financial statements are made available to the public on an as needed basis after thorough consideration for the use. Schedule G, Part I, Line 2b, Column (v) Explanation of Fundraising Payments RIC has an agreement for advisory services for its new building capital campaign. The agreement does not provide for separate reimbursement for expenses. Form 990, Part I, Line 8: RIC received $37,833,478 in contributions and pledges for its new building campaign. Schedule K, Part I, Column (f): Description of Purpose: Refund of Bonds dated April 1, 1997, purchase of land, repayment of tax exempt pool fund, purchase of other building improvements and equipment. Schedule K, Part I, Column (c): CUSIP#: 45200FF87, 45200FF95, 45200FG29. Schedule K, Part II, Line 5: Issuance costs includes $944,121.97 in proceeds used for credit enhancement. Schedule K, Part III, Line 3c: We engage bond counsel as appropriate. Schedule R, Part V: Related party transactions are recorded at cost. Medical Services RIC 345 E Superior Street Chicago IL 60611 911999919 Physician Practice Billing and Collections IL N/A Rehabilitation Institute Research Corporation 345 E Superior Street Chicago IL 60611 363728711 Research IL Section 501(c)(3) 4 Rehabilitation Institute Inc Rehabilitation Institute Inc 345 E Superior Street Chicago IL 60611 363310838 Parent IL Section 501(c)(3) 11 N/A Rehabilitation Institute of Chicago Enterprises 345 E Superior Street Chicago IL 60611 363428852 Medical Products/Medical Services IL Rehabilitation Institute Inc C 1.00000 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1 1 1 Rehabilitation Institute Research Corporation P 18435360 Rehabilitation Institute Research Corporation Q 17863537 Rehabilitation Institute Research Corporation R 1121272