2011-05-11T14:35:15-05:00 2010-06-30 ERNST & YOUNG US LLP 111 MONUMENT CIRCLE SUITE 2600 INDIANAPOLIS IN 46204 990 2009-07-01 363297173 Edward Hospital EDWA 6305273000 801 SOUTH WASHINGTON STREET NAPERVILLE IL 60540 Vince Pryor 2011-05-11 3176817000 2009 2016-02-24 21:20:13Z PAMELA MEYER DAVIS CEO 801 SOUTH WASHINGTON STREET NAPERVILLE IL 60540 545518753 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. 15 13 3243 878 444926 84498 1015373 4040628 453580404 469874634 8095354 7730514 253166 221408 462944297 481867184 0 0 0 0 165275249 176090864 0 0 0 279050553 280908298 444325802 456999162 18618495 24868022 596963395 625159365 420360487 428405441 176602908 196753924 The mission of Edward Hospital is to support health and strengthen communities by providing outstanding health care services. false false 355424566 469431981 Edward Hospital is a 309-bed, full-service, regional healthcare provider with 1,000 physicians on its medical staff and more than 4,300 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. 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: --Minimally invasive and beating heart surgery in the regions most up-to-date surgical suites -- HeartAware, an online test so people can determine their risk for heart disease to enhance and promote prevention -- 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 opened a Multidisciplinary Thoracic Oncology Clinic, the first of its kind, for coordinated, faster, more efficient treatment of patients with lung cancer and other malignancies and abnormalities of the chest. -- Edward was re-designated as 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 NICU --Expert emergency services for adult and pediatric patients in its Level II emergency department and pediatric emergency department --State-of-the-art imaging technology at numerous community locations --Access to the latest clinical trials for cancer and heart disease --Innovated animal-assisted therapy, music therapy and art therapy through its healing arts program During the fiscal year ended June 30, 2010, Edward Hospital provided nearly $78 million in community benefits, nearly 12% higher than FY 2009. Charity care increased 38% between FY 2009-2010 to $12,304,465. Edwards charity care expenditure has more than doubled over the past five years. For fiscal year 2010 Edward Hospital had 75,957 patient days and 510,961 emergency room and outpatient visits. For more information about Edward Hospital, visit www.edward.org. 355424566 true true false true false false false false true true false true false false false false false false false false true false false true true false false false false false false false false false false false false false false false true true false false true 192 0 true 3243 true true true false false false false false false false false 15 13 false false false false true true true true true false false true true true true true true true true true false IL X VINCE PRYOR 6035273035 801 S WASHINGTON STREET NAPERVILLE IL 60540 Pam Davis 40.0 X X 0 1600377 41259 Rocco Martino 1.0 X X 0 0 0 Joe Beatty 1.0 X X 0 0 0 Gary Cianci MD 1.0 X 0 0 0 Scott Berger MD 1.0 X 40000 0 0 Dave Delgado 1.0 X 0 0 0 Joe DePaulo 1.0 X 0 0 0 Dick Endress 1.0 X 0 0 0 Dennis Burke 1.0 X 0 0 0 Mary Kay Ladone 1.0 X 0 0 0 Thom Rooke MD 1.0 X 0 6000 0 Tim Rivelli 1.0 X 0 0 0 Ron Schubel 1.0 X 0 0 0 Allison Ballew Smith 1.0 X 0 0 0 William Wheeler 1.0 X 0 0 0 Hoda El-Asmar MD 40.0 X 351727 0 28020 Nanette Bufalino 40.0 X 0 382379 31757 Brian Davis 40.0 X 0 233689 33087 Annette Kenney 40.0 X 0 249539 33407 Bill Kottman 40.0 X 0 358066 37763 Mary Lou Mastro 40.0 X 0 360672 29924 John Mordach 40.0 X 0 559030 29593 Maggie Shontz 40.0 X 0 367384 24021 Marianne Spencer 40.0 X 0 316781 38061 Dennise Vaughn 40.0 X 0 245465 23403 Vince Pryor 1.0 X 0 0 0 Patti Ludwig-Beymer 40.0 X 188021 0 12785 Kim Stache 40.0 X 193082 0 11274 Lynn Cochran 40.0 X 151187 0 22497 Yvette Saba 40.0 X 179485 0 26105 Linda Devee 40.0 X 154933 0 17474 George Koburov 40.0 X 450837 0 32788 Peter Schubel 40.0 X 444447 0 30735 Thomas Scaletta 40.0 X 449000 0 33732 Michael Hartmann 40.0 X 412537 0 27729 Michael Panfil 40.0 X 414329 0 30084 Alan Kaplan MD X 0 372336 25848 3429585 5051718 621346 111 true true false Edward Health Services Corporation 801 S Washington St NAPERVILLE IL 60540 management fees 51211500 Aramark PO Box 651009 CHARLOTTE NC 282651009 food service 5427750 Power Construction 2360 Palmer Drive SCHAUMBURG IL 601733819 construction 5323739 Biocare Clinical Engineering Mgmt 12031 Smith Drive HUNTLEY IL 60142 biomedical eng svcs 4962010 Cardinal Health 23177 Network Place CHICAGO IL 60673 pharmacy 4911028 106 3342496 698132 4040628 PATIENT SERVICE REVENUE 621990 327529498 327529498 MEDICARE/MEDICAID PAYMENTS 532000 136616427 136616427 RENTAL INCOME 532000 1573824 1573824 REFERENCE LAB 621500 1190485 745559 444926 HEALTH SCREEN & AMBULATORY 623990 253902 253902 2710498 2710498 469874634 6371868 6371868 515387 515387 0 61494775 2800000 61750260 1701256 -255485 1098744 843259 843259 0 0 421461 200053 221408 221408 0 481867184 469429708 444926 7951922 0 0 0 0 1343084 1343084 0 141696033 117961287 23734746 5038351 4202328 836023 17796966 14740343 3056623 10216430 9302968 913462 51211500 51211500 9786 9786 0 42584 42584 0 438160 438160 28158895 19386690 8772205 388922 334062 54860 83162819 81759592 1403227 0 0 7988472 7559557 428915 70768 51634 19134 0 176219 129267 46953 12996638 11696974 1299664 0 38859632 35030201 3829431 3909451 3909451 Provision for Bad Debt 20851969 20851969 MEDICARE PROVIDER TAX 12596157 12596157 REPAIRS & MAINTENANACE 8418828 4988981 3429847 Medical Fees/Physician Intregr 7760617 7760617 Collection Fees 1241652 1241652 2625229 1819404 805825 456999162 355424566 101574597 0 26226499 15193555 57861550 55498030 37676 0 4562924 8068545 7178301 8650788 552017856 285266717 270987365 266751139 199239608 224121579 11599886 4021797 2833504 28237612 16436082 14616320 596963395 625159365 52888383 48307886 291283380 282065390 76188724 98032165 420360487 428405441 X 173259049 195537591 3031397 903871 312462 312462 176602908 196753924 596963395 625159365 X false true true X false X RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED false true false false false false true 32258 false false 32258 false 3343859 1808329 319197 1216333 3432137 278130 366408 3343859 0.00000 0.25689 0.74311 false true true 9771554 9771554 339784914 155107138 184677776 183850384 126334278 57516106 18611004 3825300 14785703 266751139 0 EST THRID PARTY PAYOR SETTLEMENTS 60881959 PROF & GENERAL LIABILITY 8480246 INTEREST RATE SWAP 24757652 DEFERRED COMPENSATION 2554609 LONG TERM LEASE PAYABLE 991908 FEDERAL INCOME TAXES 365213 FICA TAXES 578 98032165 Description of Intended Uses of the Organizations's Endowment Funds Schedule D, Part V, Endowment Funds There are three permanent endowment funds and the interest earned on the funds is intended to use 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. true true X true X 300. true X 500. true true true false true true 10927837 10927837 0.02510 34326562 21268542 13058020 0.02990 45254399 21268542 23985857 0.05500 479925 40175 439750 0.00100 1094503 80645 1013858 0.00230 2538803 2050077 488727 0.00110 412401 35399 377002 0.00090 20313 20313 4545945 2206296 2339650 0.00530 49800344 23474838 26325507 0.06030 9456 9456 9456 9456 false 5749924 1591569 106043524 146503017 -40459493 X true true EDWARD HOSPITAL

801 S WASHINGTON ST NAPERVILLE IL 60540

X X X PLAINFIELD FREE-STANDING EMERGENCY CTR

24600 W 127TH STREET PLAINFIELD IL 60585

X Edward Health Services Corporation, a related organization files the community benefit report with the State of Illinois. The costs used in the Charity Care (7a) and Unreimbursed Medicaid (7b) sections were calculated using Worksheet 2 - Ratio of Patient Care to Charges. The costs entered in the 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. Edward Hospital: $20,851,969 Accounts receivable are charged to the allowance for doubtful accounts when they are deemed uncollectible. Costing methodology Ratio of Patient Care to Charges. It is considered a community benefit because if Edward Hospital did not incur this expense it would become the responsibility of the government or another provider to care for Medicare patients. There would be access issues as we are seeing in physician offices today due to the losses that physicians incur for providing care to Medicare patients. 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. Part VI, Line 2 Addressing the needs of the community is a strategic priority for the Corporation. During this year's strategic planning process, "community commitment" was identified as one of its six strategic priorities in the 2011 - 2013 Strategic Plan. The goal of this priority is to ensure that the Corporation purposefully plans, monitors and implements strategies to strengthen the community it serves by addressing targeted needs. The Corporate Community Benefit Plan is based on a careful analysis of service area demographics and utilization patterns, community survey data, and information and recommendations generated from local county health department IPLANs (Illinois Project for the Local Assessment of Needs-- a requirement of local health departments in Illinois to conduct formal community health needs assessments, prioritization and action planning to maintain their certification with the state health department). Based on the assessment of area need along with consideration of corporate competencies, three primary areas of strategic focus for future community benefit activities and resource allocation were identified: access to care, mental health, and obesity. A management plan to address each of these areas was developed and will be monitored on an ongoing basis by the Community Benefit Steering Committee. The tactics identified in the management plan will be updated annually. 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 in English and Spanish on how to obtain a financial assistance application. Unisured inpatients are screens for eligibility through govermental programs. Patients who do not qualify for such programs are given a financial assistance application. Signage is posted at all outpaitent 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 including the need for financial assistance. Part VI, Line 4 Edward Hospital 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, including Naperville, Aurora, Bolingbrook, Lisle, Oswego, Plainfield, Romeoville, Warrenville, Woodridge, and Yorkville. These towns define Edward's primary service area which represents 75% of Edward's patient origin and has an estimated population of nearly 575,000 residents. Edward's service area spans multiple counties, with the majority of patients residing in DuPage and Will Counties, 45% and 39% respectively. Communities within Edward's Primary Service Area were among the fastest growing in the country over the past 20 years, and Edward spent significant resources during this period expanding programs and building facilities to accommodate this growth. During the recent economic recession, there has been a slow-down in the number of new residents moving into the service area; however the latest population projections indicate that the area will grow by 60,800 residents by 2015-- an annual growth rate of 2%. Note that this remains higher than both Illinois and the United States growth rates. Edward will continue to monitor local growth rates to ensure that it 'right-sizes' its services to accommodate community need. While Edward's service area is relatively young with an average age of 34 (compared to the Illinois and United States average of 37 and 38, respectively), the population is aging at a faster rate. The 65 and older population is projected to grow 40% over the next 5 years. This will present significant challenges considering the elderly consume the majority of health care resources-particularly inpatient beds and chronic disease services. Edward has a significantly higher percentage of residents with Asian ethnicity than either Illinois or the United States, and 13% of area residents are of Hispanic/Latino ethnicity. This diversity presents both language and cultural barriers that have the potential to compromise access to health care. Edward has maintained a strong commitment to language assisted services, and has steadily increased the budget for these services. The number and percentage of lower-income residents has increased in 2009 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 6.5% in DuPage County and 6.9% in Will County. While this is lower than the State average, it nevertheless represents a significant number of individuals-in fact, over 105,900-living at or below the poverty level in DuPage and Will Counties. Requests for Public Aid assistance from DuPage county residents have increased by 60% over the past five years, which is straining the public system's ability to fund health care services for this vulnerable population. The hospital sector has experienced the growing level of poverty firsthand. Medicaid utilization within Edward's Primary Service Area increased from 9.5% to 11.9% of total inpatient hospital discharges between FY 2008 and 2009, while the number of Medicaid inpatient discharges increased 24%. Part VI, line 5 The Corporation's mission is to support health and strengthen communities by providing outstanding health care services which expresses the important role the organization plays in contributing to the wellbeing of the communities it serves. 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. However, the majority of the Community Building Activities addressed in Part II are provided by corporate employees that support and act on behalf of Edward Hospital but are not recorded in the Edward Hospital filing because the expenses are incurred by Edward Health Services Corporation. The expense for workforce development programs that are listed in Part II of this filing are provided by clinical employees of Edward Hospital. Examples of these programs and the benefit that they provided are highlighted below: Evidence Based Practice Conference at Edward - brings key speakers on research and evidence-based nursing practice to between 175 and 225 nurses and nursing students annually Northern Illinois Health Education Network - hosts continuing education opportunities for nurses and other health care professionals from northern Illinois College of DuPage Collaborative - resulted in the education of 40 additional nurses at College of DuPage Part VI, Line 6 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. Projects have been undertaken to improve patient safety and outcomes which may or may not have generated a return on investment per se, such as bedside medication verification system, and RFID tagging of surgical sponges. This past year, Edward opened a Cancer Center and a Freestanding Emergency Department (PFED) in Plainfield to offer more convenient access to essential services for which residents would otherwise have to travel in excess of 30 minutes. Edward also opened the Edward Neurosciences Institute, which provides the most advanced stroke care in Edward's service area. This new program, which incorporates neuorinterventional treatment in a sophisticated biplane laboratory for patients with cerebrovascular anomalies, substantially expands the window of treatment for patients who otherwise might die or experience significant disability. Part VI, Line 7 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. The community benefit expenses that are accounted for by EHSC, which are not included in Part I and Part II, total $1,467,367. This includes community education, donations, and community benefit operations. Further explanation and the allocation of the EHSC community benefit expense to the Hospital based on a management fee can be found in Schedule O. IL X true true true true false false false true true false false Pam Davis 0 714187 0 178577 0 707613 0 8575 0 32684 0 1641636 0 0 Hoda El-Asmar MD 289627 0 49867 0 12233 0 8575 0 19445 0 379747 0 0 0 Nanette Bufalino 0 269744 0 45537 0 67098 0 8575 0 23182 0 414136 0 0 Brian Davis 0 183221 0 32187 0 18281 0 6934 0 26153 0 266776 0 0 Annette Kenney 0 203873 0 35875 0 9791 0 7794 0 25613 0 282946 0 0 Bill Kottman 0 251100 0 42944 0 64022 0 8575 0 29188 0 395829 0 0 Mary Lou Mastro 0 236293 0 40576 0 83803 0 8575 0 21349 0 390596 0 0 John Mordach 0 327875 0 86329 0 144826 0 8575 0 21018 0 588623 0 0 Maggie Shontz 0 172567 0 41744 0 153073 0 7597 0 16424 0 391405 0 0 Marianne Spencer 0 207164 0 47587 0 62030 0 8154 0 29907 0 354842 0 0 Dennise Vaughn 0 187839 0 32698 0 24928 0 7321 0 16082 0 268868 0 0 Patti Ludwig-Beymer 162708 0 18521 0 6792 0 6055 0 6730 0 200806 0 0 0 Kim Stache 187628 0 5197 0 257 0 6646 0 4628 0 204356 0 0 0 Lynn Cochran 133710 0 10564 0 6913 0 5145 0 17352 0 173684 0 0 0 Yvette Saba 165238 0 13468 0 779 0 6003 0 20102 0 205590 0 0 0 Linda Devee 141011 0 7959 0 5963 0 5200 0 12274 0 172407 0 0 0 George Koburov 240458 0 200308 0 10071 0 8575 0 24213 0 483625 0 0 0 Peter Schubel 256631 0 179259 0 8557 0 8575 0 22160 0 475182 0 0 0 Thomas Scaletta 302559 0 138958 0 7483 0 8575 0 25157 0 482732 0 0 0 Michael Hartmann 242435 0 129881 0 40221 0 8575 0 19154 0 440266 0 0 0 Michael Panfil 241339 0 148353 0 24637 0 8575 0 21509 0 444413 0 0 0 Alan Kaplan MD 0 198439 0 0 0 173897 0 7266 0 18582 0 398184 Supplemental Compensation Information Reimbursement or provision of benefits 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. Supplemental Compensation Information 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. Supplemental Compensation Information - Severance Payments Schedule J, Part I, Line 4A The individuals listed were part of a reduction in force that occurred during fiscal year 2010, but they were contractually entitled to severance payments at their rate of pay at the time of termination for a period of up to 12 months post discharge (6 months guaranteed, and an additional 6 months at full compensation if no alternate employment was procured or to be offset against employment which compensated the individual at less than their rate of pay at Edward); individuals who received severance were subject to a non-compete within a certain geographic radius around the organization. Maggie Shontz received a severance payment of $165,141. Supplemental Compensation Information - SERP Schedule J, Part I, Line 4B Individuals who have the title of Vice President or higher are eligible to participate in a Supplemental Executive Retirement Plan (SERP); any eligible participants must be approved by the EHSC Executive Committee. The SERP was established to recognize the valuable contributions that each of the participants makes to the operations of EHSC and to reward certain executive employees for their long-term service and commitment to EHSC. The SERP is designed to provide a full retirement supplement to participants if they remain with EHSC until age 62. In exchange for this long-term service, EHSC wants to supplement these participants' retirement income with additional annual compensation that is invested in an annuity contract; contributions are immediately vested. The following officers received payments from a supplemental executive retirement plan Marie A. Bufalino $45,241 Brian P. Davis $11,164 Pamela M. Davis $608,814 William G. Kottman $24,911 Mary L. Mastro $68,332 John P. Mordach $84,197 Maggie Shontz $39,557 Marianne Spencer $45,431 Dennise Vaughn $10,627 Compensation Contingent of Net Earnings Schedule J, Part I, Questions 6A & B Officers (the President and Vice Presidents) and key employees participate in an incentive compensation plan, which rewards participants when EHSC, on a consolidated basis, achieves certain income from operations thresholds. There are additional components of the incentive plan contingent on the achievement of certain levels of patient satisfaction and quality measures. These two additional components of the incentive plan (patient satisfaction and quality measures) each account for 25% of the incentive, with the net earnings component accounting for the other 50% of the incentive pool. The plans are reviewed and approved by the EHSC Executive Committee each year. ILLINOIS FINANCE AUTHORITY SERIES 2008A 861091967 45200FFF1 2008-04-09 85733137 REVENUE BONDS - See schedule O false false ILLINOIS FINANCE AUTHORITY SERIES 2008 b-1b-2& C 861091967 45200FFY0 2008-04-30 126220000 REVENUE REFUNDING BONDS - See sche false false ILLINOIS FINANCE AUTHORITY SERIES 2009-A 861091967 45200FB65 2009-10-28 43500000 REVENUE REFUNDING BONDS - See sche false false 85733137 true false true true 126220000 true false true true 43500000 707220 true false true true false false true false true 0.02700 0.02700 true false false true false true 0.03190 0.03190 true false false false false false true true CITIGRPGOLDMAN SACH 33. false false true true JP MORGAN CHASE 30. false Form 990, Part I, Question 6 Volunteers 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, 2010 our volunteers gave 98,000 hours of service. Form 990, Part VI, Question 6 Description of Classes of Members or Stockholders Edward Hospital's sole corporate member is Edward Health Services Corporation, an Illinois not for profit and 501(c)(3) tax exempt corporation. Form 990, Part VI, Question 7a Description of Classes of Persons and the Nature of Their Rights 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. Form 990, Part VI, Question 7b Descr Classes of Persons, Decisions Requiring Appr & Type of Voting Rights 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. Form 990, Part VI, Question 11a DESCRIBE THE PROCESS USED BY MANAGEMENT &/OR GOVERNING BODY TO REVIEW 990 A DRAFT OF THE FULL FORM 990 WAS PROVIDED TO THE EDWARD HEALTH SERVICES CORPORATION AUDIT COMMITTEE, AND WAS REVIEWED WITH THE ASSISTANCE OF ERNST & YOUNG, EHSC INDEPENDENT AUDITORS. FOLLOWING REVIEW BY THE AUDIT COMMITTEE, AND PRIOR TO FILING, A FINAL DRAFT OF THE FORM 990 WAS THEN PROVIDED TO THE FULL BOARD OF TRUSTEES, AND KEY COMPONENTS OF THE FORM 990 WERE ALSO REVIEWED. Form 990, Part VI, Question 12c Description of Process to Monitor Transactions for Conflicts of Interest 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 Chief Compliance & Privacy Officer, 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 Chief Compliance & Privacy Officer 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 Chief Compliance & Privacy Officer any actual or potential conflicts of interest as they may arise throughout the course of the year. Form 990, Part VI, Question 15a and 15b Offices & Positions for Which Process was Used, & Year Process was Begun 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 OF 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 HOSPITAL 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, INCLUDING EDWARD HOSPITAL, 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. Form 990, Part VI, Question 16b JOINT VENTURE ARRANGEMENTS 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. THE EHSC BOARD OF TRUSTEES, FOR ITSELF AND ALL OF ITS AFFILIATES, IS IN THE PROCESS OF REVIEWING AND APPROVING A JOINT VENTURE POLICY THAT WILL MORE FORMALLY SET FORTH THE PRACTICES DESCRIBED ABOVE, TO CONTINUE TO ENSURE THAT EDWARD WILL PURSUE ONLY THOSE JOINT VENTURES WHICH FURTHER ITS CHARITABLE MISSION AND STRENGTHEN EDWARD FINANCIALLY, ENSURING THAT QUALITY HEALTH CARE WILL CONTINUE TO BE AVAILABLE TO THE COMMUNITIES THAT EDWARD SERVES. Form 990, Part VI, Question 19 Avail of Gov Docs, Conflict of Interest Policy, & Fin Stmts to Gen Public 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. Schedule K Part I, Column (f) Description of purpose 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. EDWARD HEALTH SERVICES CORPORATION 801 SOUTH WASHINGTON STREET NAPERVILLE IL 60540 363513954 PARENT IL 501(c)(3) 11 TYPE II N/A NAPERVILLE PSYCHIATRIC VENTURES 801 SOUTH WASHINGTON STREET NAPERVILLE IL 60540 363965251 hospital IL 501(c)(3) 3 EHV EDWARD HEALTH VENTURES 801 SOUTH WASHINGTON STREET NAPERVILLE IL 60540 581672987 SUPPORTNG ORG IL 501(c)(3) 11 TYPE II ehsc EDWARD FOUNDATION 801 SOUTH WASHINGTON STREET NAPERVILLE IL 60540 363723705 FUNDRAISING IL 501(c)(3) 7 ehsc EDWARD HEALTH & FITNESS CENTER 801 SOUTH WASHINGTON STREET NAPERVILLE IL 60565 363555528 HEALTH CARE IL 501(c)(3) 9 EHV EDWARD PHYSICIAN OFFICE CENTER 801 SOUTH WASHINGTON STREET NAPERVILLE IL 60540 363524485 HEALTH CARE IL EHV RELATED 426375 2954705 false false EDWARD CARDIAC DIAGNOSTICS LLC 801 S Washington Street Naperville IL 60540 743246349 Nuclear ServiCES IL NA RELATED -39464 0 false true EDWARD CARDIOVASCULAR INSTITUTE 801 S WASHINGTON STREET NAPERVILLE IL 60540 363864123 HEALTH CARE IL NA N/A THE CENTER FOR SURGERY LP 801 S WASHINGTON STREET NAPERVILLE IL 60540 HEALTH CARE IL NA N/A EDWARD MANAGEMENT CORPORATION 801 SOUTH WASHINGTON STREET Naperville IL 60540 363833311 MANAGEMENT CORP IL NA C CORP NAPERVILLE HEALTH CARE ASSOC LTD 801 S WASHINGTON STREET NAPERVILLE IL 60540 363651180 HEALTH CARE IL NA c corp 2034182 10561713 1.00000 EHSC CAYMAN SEGREGATED PORTFOLIO FIRST CARRIBEAN HSE 3RD FL 10 MAIN STREET GEORGE TOWN CJ 000000000 INSURANCE CJ NA C CORP true false false false false false false false false false true true false false false true false false Naperville Psychiatric Ventures k 561676 Edward Health Ventures l 4322671 Naperville Psychiatric Ventures k 327240 Naperville Psychiatric Ventures k 552516 Edward Health Ventures a (iv 7079156 Edward Cardiac Diagnostics k 725883 Edward Health & Fitness Center l 104718 Edward Foundation p 400629 Edward Health & Fitness Center k 70176 Edward Foundation k 254280 Edward Foundation C 2941867