2011-07-13T16:31:14-04:00 2010-08-31 ERNST & YOUNG US LLP 155 NORTH WACKER DRIVE CHICAGO IL 60606 990 2009-09-01 363279680 PEDIATRIC FACULTY FOUNDATION INC PEDI 3125734578 2300 CHILDRENS PLAZA BOX 268 CHICAGO IL 606143394 Paula M Noble 2011-07-13 3128792000 2009 2016-02-24 21:20:13Z Thomas P Green MD 2300 Childrens Plaza Box 268 Chicago IL 606143394 94654649 false X WWW.CHILDRENSMEMORIAL.ORG X 1984 IL PEDIATRIC FACULTY FOUNDATION, INC., EMPLOYS PEDIATRIC MEDICINE SPECIALISTS AND SUBSPECIALISTS WHO PRACTICE AT THE CHILDREN'S MEMORIAL HOSPITAL AND PROVIDE QUALITY HEALTH CARE TO CHILDREN IN THE COMMUNITY. 4 2 331 0 0 0 6274037 10303728 68067845 84350384 8969 537 0 0 74350851 94654649 0 0 0 0 57027003 74171484 0 0 0 17794147 21023444 74821150 95194928 -470299 -540279 5476707 4868553 3381005 3313130 2095702 1555423 See Schedule O. false false 87679284 84350384 SEE SCHEDULE O. 87679284 true true false false false false false false false false false true false false false false false false false false false false false true false false false false false false false false false false false false false true false false false true 0 0 true 331 true false false false false false false false false false 4 2 false false false false true true true true true false false false true true true true true true true false IL X PAULA M NOBLE 3125734578 2300 CHILDRENS PLAZA BOX 268 Chicago IL 60614 THOMAS P GREEN MD 40.0 X X 616257 0 52871 Kirk B Johnson 1.0 X 0 0 0 PATRICK M MAGOON 1.0 X 0 1148278 370307 Steve Rosen MD 1.0 X 0 0 0 PAULA M NOBLE 1.0 X 0 522636 169224 DONNA S WETZLER 1.0 X 0 384276 147900 BARBARA DEAL MD 40.0 X 378914 0 54913 MARY J C HENDRIX PHD 40.0 X 548306 0 42809 ANNETTE WAGNER MD 40.0 X 391714 0 43413 Robin H Steinhorn MD 40.0 X 415576 0 28433 PETER F WHITINGTON MD 40.0 X 415323 0 49913 H WILLIAM SCHNAPER MD 40.0 X 288252 0 47225 3054342 2055190 1007008 195 true true false SPRINGFIELD SERVICE CORP 8151 W 183RD ST SUITE B TINLEY PARK IL 60477 Billing Services 3877171 WELL CARE NEONATOLOGISTS SC 36W128 SILVER GLEN CT ST CHARLES IL 60175 Neonatal Physicians 397833 CENTRAL DUPAGE HEALTH 25 North Winfield Road WINFIELD IL 60190 Rent 137830 Northwestern Medical Faculty Founda 676 N St Clair CHICAGO IL 60611 Physician Services 190235 4 10303728 10303728 Program Service Revenue 900099 48000026 48000026 Medical Administration and Education 900099 6048807 6048807 Professional Services Provided to CMRC 900099 5946478 5946478 Other Operating Income 900099 8645381 8645381 Medicare/Medicaid Payments 900099 11680210 11680210 4029482 4029482 84350384 537 537 0 0 0 0 0 0 0 94654649 84350384 0 537 0 0 0 0 669836 669836 0 60214366 57522202 2692164 4569070 4508872 60198 5461063 5112859 348204 3257149 3111804 145345 0 0 11250 11250 0 0 0 2250493 2137733 112760 0 277774 274861 2913 0 0 2002648 2002648 25970 11940 14030 0 431402 416790 14612 0 0 0 6197479 6152718 44761 Billing and Collection 3309874 3309874 Bad Debt 3636376 3636376 FAC. PRAC. PLAN TAX 2385887 2385887 Transcription 60681 60681 Miscellaneous 433610 343913 89697 95194928 87679284 7515644 0 66657 0 400837 24453 4686803 4365260 322410 478840 5476707 4868553 3381005 3313130 3381005 3313130 X 2095702 1555423 2095702 1555423 5476707 4868553 X false true true X false X X X false false false The Children's Memorial Hospital 362170833 03 true true true 87679284 1 87679284 RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED X X X X false true false true false false false true false BARBARA DEAL MD 355621 0 22777 0 516 0 24500 0 30413 0 433827 0 0 0 THOMAS P GREEN MD 464151 0 151314 0 792 0 24500 0 28371 0 669128 0 0 0 MARY J C HENDRIX PHD 455680 0 92110 0 516 0 24500 0 18309 0 591115 0 0 0 PATRICK M MAGOON 0 651796 0 410470 0 86012 0 355320 0 14987 0 1518585 0 137833 PAULA M NOBLE 0 342210 0 166349 0 14078 0 154718 0 14506 0 691860 0 0 H WILLIAM SCHNAPER MD 250086 0 37650 0 516 0 24500 0 22725 0 335477 0 0 0 ANNETTE WAGNER MD 247079 0 144455 0 180 0 24500 0 18913 0 435127 0 0 0 Robin H Steinhorn MD 360156 0 55144 0 276 0 24500 0 3933 0 444009 0 0 0 DONNA S WETZLER 0 257445 0 125735 0 1096 0 133090 0 14810 0 532176 0 0 PETER F WHITINGTON MD 409690 0 4841 0 792 0 24500 0 25413 0 465236 0 0 0 SUPPLEMENTAL COMPENSATION INFORMATION SCHEDULE J, PART I, QUESTION 4B The following individuals have an amount included in Schedule J, part II, Column (c) for an amount accrued but not vested under a supplemental retirement plan ("SERP") - Patrick Magoon $322,280 Paula M. Noble $129,159 Donna Wetzler $112,184 Benefits accrued under the SERP are nonvested forms of deferred compensation that fund the employee's eventual retirement benefit. These benefits are provided in exchange for all of the employee's years of service to the organization. The amounts are at risk and will not be paid unless the employee provides substantial future services. Benefits under the SERP vest at age 62. If the employee were to have left the organization voluntarily during the year for which these amounts are being reported, the benefits would not have to be paid (except at the sole discretion of the board, and only if the participant has reached at least age 55 and has 10 years of service). Participants who are less Than age 55 and who voluntarily terminate employment forfeit their entire SERP benefit upon termination. Supplemental compensation information SCHEDULE J, PART I, QUESTION 5A Employed physicians are compensated in part on the basis of personal professional productivity that takes into account, in part, the revenues of the organization generated by the personally performed patient services of the physician. Supplemental compensation information Schedule J, part I, question 7 The organization provides annual incentive compensation to senior management under a senior management incentive compensation plan. These Amounts are included in schedule J, part II, column B (ii). The plan is designed to offer opportunities for additional compensation tied to performance against pre-determined financial, patient satisfaction, patient safety and individual goals approved in advance by the Governance Committee of the Children's Memorial Hospital and the Children's Memorial Medical Center which serves as the Compensation Committee of The Children's Memorial Hospital and Pediatric Faculty Foundation, Inc. The governance committee has expressly reviewed the reasonableness of all such payments, and has concluded, as the result of a process that is designed to qualify for the rebuttable presumption of reasonableness under federal tax law, that all such amounts are reasonable and do not exceed fair market value for the services provided. ORGANIZATION'S MISSION FORM 990, PART III, LINE 1 WE VALUE EXCELLENCE AND INNOVATION IN CLINICAL AND BASIC RESEARCH, COORDINATED AND COMPREHENSIVE PATIENT CARE, ONGOING PHYSICIAN EDUCATION, AND SOUNDLY-BASED CHILD ADVOCACY. OUR GOAL IS TO PROVIDE LEADERSHIP IN ENDEAVORS THAT PROMOTE THE HEALTH OF CHILDREN LOCALLY, NATIONALLY, AND INTERNATIONALLY. STATEMENT OF PROGRAM SERVICE ACCOMPLISHMENTS FOR YEAR ENDED AUG 31, 2010 FORM 990, PART III, 4A INTRODUCTION Pediatric Faculty Foundation, Inc. ("PFF") is an Illinois not for profit corporation and an organization described under Section 501(c)(3) of the Code whose sole corporate member is The Children's Memorial Medical Center ("Parent") (FEIN 36-3357004). PFF employs pediatric medicine specialists, subspecialists and hospitalists. Such physicians are based and practice at The Children's Memorial Hospital (the "Hospital"), another affiliated entity of PFF, and at the Hospital's outreach locations. The Hospital offers over 70 types of pediatric subspecialty care, more than any other Illinois hospital. PFF employs 345 pediatric medicine specialists, subspecialists and hospitalists who provide specialty services to patients of the Hospital in the areas of allergy, cardiology, immunology, neonatology, neurology, dermatology, emergency medicine, endocrinology, gastroenterology, general academic pediatrics, genetics, hematology and oncology, hospital-based medicine, infectious diseases, nephrology and pulmonary and critical care medicine. In addition, PFF employs approximately 40 full-time research faculty which assist in the CMH mission. Currently, the President of PFF also serves as the Chairman of the Department of Medicine at the Hospital and the Chairman of the Department of Pediatrics of Northwestern University's Feinberg School of Medicine ("NUFSM"). PFF's physicians are members of the Faculty Practice Plan at the Hospital, which represents the largest provider of pediatric Medicaid services in Illinois. In FY 2010, Pediatric Faculty Foundation, Inc. physicians had approximately 147,034 combined inpatient and outpatient Medicaid patient encounters for 47,185 pediatric patients. Medicaid represents over 45% of its payor mix. The Hospital's pediatric-specialist physicians (which include PFF physicians) provide a substantial portion of the specialty care to children insured by the State of Illinois' All Kids program. In FY 2010, Medicaid reimbursement for physician services for specialty care to children treated by PFF physicians was over $14.9 million less than the costs associated with providing such services. Children's Memorial Hospital serves as the primary pediatric teaching site for NUFSM's resident physicians, fellows and medical students in pediatric specialties and sub-specialties. Each year, PFF physicians in the Children's Memorial Hospital Department of Pediatrics train approximately 200 physicians. Almost half are pediatric residents and the remainder are fellows in various pediatric sub-specialties including cardiology, hematology/oncology and neonatology. PFF physicians also provide pediatric training to medical students, residents and fellows from institutions other than NUFSM. In addition, PFF physicians perform research aimed at advancements in the prevention, diagnosis and treatment of diseases that affect the development of children through adolescence as well as adult disorders that derive from them. Such research is conducted in connection with affiliate, Children's Memorial Research Center ("CMRC"), one of a few institutions in the U.S. dedicated exclusively to pediatric research, which operates in a five-story, 125,000 square foot state-of-the-art laboratory and research administration facility. Research encompasses basic research studies as well as those with potential clinical applications. In 2010, hospitalist medicine services were moved from CMMC to PFF. This move resulted in a significant year over year increase in reported revenue and expense. DESCRIPTION OF CLASSES OF MEMBERS OR STOCKHOLDERS FORM 990, PART VI, QUESTION 6 THE CHILDREN'S MEMORIAL MEDICAL CENTER ("CMMC") IS THE ORGANIZATION'S SOLE CORPORATE MEMBER. DESCRIPTION OF CLASSES OF PERSONS AND THE NATURE OF THEIR RIGHTS FORM 990, PART VI, QUESTION 7A THE ORGANIZATION'S SOLE CORPORATE MEMBER, THE CHILDREN'S MEMORIAL MEDICAL CENTER, HAS CERTAIN RESERVED POWERS, INCLUDING THE POWER TO APPOINT AND REMOVE certain DIRECTORS OF THE ORGANIZATION. DESCR CLASSES OF PERSONS, DECISIONS REQUIRING APPR & TYPE OF VOTING RIGHTS FORM 990, PART VI, QUESTION 7B THE CHILDREN'S MEMORIAL MEDICAL CENTER, THROUGH ITS BOARD OF DIRECTORS OR DESIGNATED COMMITTEE, AS THE SOLE CORPORATE MEMBER OF THE ORGANIZATION, HAS CERTAIN RESERVE POWERS WITH RESPECT TO APPOINTMENT AND REMOVAL OF certain DIRECTORS, APPOINTMENT OF CERTAIN OFFICERS, APPROVAL OF AMENDMENTS TO GOVERNING DOCUMENTS, APPROVAL OF FINANCIAL MATTERS, AND APPROVAL OF SIGNIFICANT TRANSACTIONS INCLUDING, BUT NOT LIMITED TO, MERGER, DISSOLUTION, DISPOSITION OF ASSETS OTHER THAN IN THE ORDINARY COURSE OF BUSINESS, AND CREATION OF SUBSIDIARIES. DESCRIBE THE PROCESS USED BY MANAGEMENT &/OR GOVERNING BODY TO REVIEW 990 FORM 990, PART VI, QUESTION 11 A PUBLIC DISCLOSURE COPY OF THE ORGANIZATION'S FISCAL YEAR 2010 TAX RETURN ("FORM 990") WAS PROVIDED TO EACH MEMBER OF THE CHILDREN'S MEMORIAL MEDICAL CENTER AND THE CHILDREN'S MEMORIAL HOSPITAL ("CMMC/CMH") AUDIT COMMITTEE (OF THE BOARD). THE AUDIT COMMITTEE IS THE COMMITTEE OF THE PARENT ORGANIZATION CHARGED WITH THE OVERSIGHT OF AUDIT AND TAX MATTERS FOR THE PARENT AND AFFILIATES. DURING A SPECIAL AUDIT COMMITTEE MEETING, AND BEFORE THE FORM 990 WAS FILED, THE AUDIT COMMITTEE WAS PROVIDED A DETAILED REVIEW OF THE FORM 990 BY THE CHIEF FINANCIAL OFFICER ("CFO") AND THE ORGANIZATION'S DIRECTOR OF TAX COMPLIANCE. THE CFO AND DIRECTOR OF TAX COMPLIANCE ALSO RESPONDED TO THE AUDIT COMMITTEE MEMBERS' QUESTIONS AND AFFORDED THE OPPORTUNITY FOR DETAILED DISCUSSION OF THE FORM 990, PRIOR TO THE AUDIT COMMITTEE TAKING ACTION TO APPROVE THE FILING OF THE FORM 990. AS PART OF ITS TAX PREPARATION PROCESS, THE ORGANIZATION ON AN ONGOING BASIS CONSULTED ITS TAX CONSULTING FIRM AND OUTSIDE TAX LEGAL COUNSEL, BOTH OF WHICH POSSESS EXPERTISE IN HEALTH CARE AND TAX-EXEMPT RETURN PREPARATION, TO ADVISE AND ASSIST IN THE PREPARATION OF THE FORM 990. THESE ADVISORS WORKED CLOSELY WITH THE ORGANIZATION'S FINANCE AND INTERNAL LEGAL PERSONNEL AND OTHER MEMBERS OF THE ORGANIZATION'S TEAM ASSEMBLED TO PARTICIPATE IN THE PREPARATION OF THE FORM 990. PRIOR TO PRESENTING THE FORM 990 TO THE BOARD'S AUDIT COMMITTEE, THE ORGANIZATION'S TEAM, INCLUDING ITS ADVISORS, MET FREQUENTLY TO DISCUSS AND REVIEW DRAFTS OF THE FORM. DESCRIPTION OF PROCESS TO MONITOR TRANSACTIONS FOR CONFLICTS OF INTEREST FORM 990, PART VI, QUESTION 12C ON AN ANNUAL BASIS, THE CHILDREN'S MEMORIAL MEDICAL CENTER AND ITS AFFILIATES ("CMMC") SUBMIT A comprehensive QUESTIONNAIRE TO ITS BOARD MEMBERS, SENIOR MANAGEMENT AND PURCHASING PERSONNEL REQUIRING DISCLOSURE OF ALL INTERESTS THAT COULD GIVE RISE TO ACTUAL OR POTENTIAL CONFLICTS OF INTEREST. CMMC INITIATES FOLLOW UP CONTACTS TO THOSE WHO DO NOT RESPOND AND TO CLARIFY RESPONSES, WHERE NECESSARY. CMMC REVIEWS EACH DISCLOSURE AND PROVIDES A SUMMARY OF RELEVANT DISCLOSURES FOR THE REVIEW AND APPROVAL OF ITS GOVERNANCE COMMITTEE. OFFICES & POSITIONS FOR WHICH PROCESS WAS USED, & YEAR PROCESS WAS BEGUN FORM 990, PART VI, QUESTION 15A & 15B On an Annual Basis, THE BOARD OF DIRECTORS OF THE ORGANIZATION'S PARENT (THE CHILDREN'S MEMORIAL MEDICAL CENTER ("CMMC")) PURSUANT TO ITS BYLAWS HAS DELEGATED THE AUTHORITY TO REVIEW AND APPROVE EXECUTIVE COMPENSATION OF THE CMMC AFFILIATES TO THE GOVERNANCE COMMITTEE OF THE CMMC/CMH BOARD OF DIRECTORS ("GOVERNANCE COMMITTEE"). THE GOVERNANCE COMMITTEE HAS ADOPTED A WRITTEN EXECUTIVE COMPENSATION PHILOSOPHY WHICH IT FOLLOWS WHEN IT REVIEWS AND APPROVES THE COMPENSATION AND BENEFITS OF THE ORGANIZATION'S SENIOR MANAGEMENT, INCLUDING THE PRESIDENT AND THE OTHER SENIOR MANAGERS. THE COMPENSATION PHILOSOPHY IS SUBJECT TO PERIODIC REVIEW FOR CONTINUED APPROPRIATENESS BY THE GOVERNANCE COMMITTEE. WITH THE ASSISTANCE OF A COMPENSATION CONSULTANT AND INFORMATION FROM A VARIETY OF EXTERNAL SOURCES, THE GOVERNANCE COMMITTEE CONFIRMED THE TOTAL AMOUNTS TO BE PAID WERE REASONABLE AND COMPARABLE TO AMOUNTS PAID BY SIMILARLY SITUATED ORGANIZATIONS. OUTSIDE LEGAL COUNSEL ALSO SERVES AN INTEGRAL ROLE IN ADVISING THE GOVERNANCE COMMITTEE WITH RESPECT TO FEDERAL TAX REQUIREMENTS IN SETTING COMPENSATION AND THE ESTABLISHMENT OF THE REBUTTABLE PRESUMPTION OF REASONABLENESS. THE PROCESS FOLLOWED BY THE GOVERNANCE COMMITTEE, INCLUDING A DESCRIPTION OF THE DATA RELIED UPON AND THE GOVERNANCE COMMITTEE'S DECISIONS, WAS THOROUGHLY AND CONTEMPORANEOUSLY DOCUMENTED. THE GOVERNANCE COMMITTEE HAS EXPRESSLY REVIEWED THE REASONABLENESS OF ALL SUCH PAYMENTS, AND HAS CONCLUDED, AS THE RESULT OF A PROCESS THAT IS DESIGNED TO QUALIFY FOR THE REBUTTABLE PRESUMPTION OF REASONABLENESS UNDER FEDERAL TAX LAW, THAT ALL SUCH AMOUNTS ARE REASONABLE AND DO NOT EXCEED FAIR MARKET VALUE FOR THE services rendered. The GOVERNANCE COMMITTEE WAS COMPRISED OF MEMBERS OF THE CHILDREN'S MEMORIAL MEDICAL CENTER AND THE CHILDREN'S MEMORIAL HOSPITAL BOARDS OF DIRECTORS WHO WERE DETERMINED DISINTERESTED FOR THESE PURPOSES. THE GOVERNANCE COMMITTEE CONDUCTS AN ONGOING AND PERIODIC REVIEW OF THE DISINTERESTED STATUS OF ITS MEMBERS, AND WILL TAKE APPROPRIATE ACTION WITH RESPECT TO ANYONE HAVING AN INTEREST WITH RESPECT TO ONE OR MORE EXECUTIVES SO AS TO PRESERVE THE APPLICATION OF THE REBUTTABLE PRESUMPTION OF REASONABLENESS. AVAIL OF GOV DOCS, CONFLICT OF INTEREST POLICY, & FIN STMTS TO GEN PUBLIC FORM 990, PART VI, QUESTION 19 THE ORGANIZATION'S FINANCIAL STATEMENTS ARE PUBLICLY AVAILABLE ONLINE AT WWW.DACBOND.COM. THE ORGANIZATION'S ARTICLES OF INCORPORATION AND ANNUAL REPORTS ARE AVAILABLE THROUGH THE ILLINOIS SECRETARY OF STATE. THE ORGANIZATION ALSO MAKES ITS GENERAL GOVERNING DOCUMENTS AVAILABLE TO THE GENERAL PUBLIC UPON REQUEST. HOURS WORKED FOR RELATED ORGANIZATIONS FORM 990, PART VII, SECTION A, LINE 1A THOMAS P. GREEN, MD is an EMPLOYEE OF PEDIATRIC FACULTY FOUNDATION AND GENERALLY WORKs 40 HOURS PER WEEK. APPROXIMATELY 10 HOURS OF his REGULAR WORK WEEK are SPENT PROVIDING SERVICES TO PFF AFFILIATES. MARY J.C. HENDRIX, PHD is an employee of Pediatric faculty foundation and is an officer and director of CMRC. She generally works 40 hours per week. APPROXIMATELY 30 HOURS OF her REGULAR WORK WEEK are SPENT PROVIDING SERVICES TO related organizations. THE FOLLOWING INDIVIDUALS ARE EMPLOYEES OF THE CHILDREN'S MEMORIAL HOSPITAL (CMH) AND GENERALLY WORK 40 HOURS PER WEEK. APPROXIMATELY 10 HOURS OF THEIR REGULAR WORK WEEKs ARE SPENT PROVIDING SERVICES TO CMH AFFILIATES including Pediatric Faculty Foundation: PATRICK M. MAGOON PAULA M. NOBLE DONNA WETZLER Information about Supported Organizations Schedule A, Part I For a description of the manner in which Pediatric Faculty Foundation supports The Children's Memorial Hospital, please see the statement of program accomplishments included in Schedule O. For a description of the manner in which Pediatric Faculty Foundation supports The Children's Memorial Hospital, please see the statement of program accomplishments included in Schedule O. The Children's Memorial Research Center 2300 Childrens Plaza Chicago IL 60614 363357005 Research IL 501(C)(3) 4 CMMC The Children's Memorial Foundation 2300 Childrens Plaza Chicago IL 60614 363357006 Fundraising IL 501(C)(3) 7 CMMC The Children's Memorial Medical Center 2300 Childrens Plaza Chicago IL 60614 363357004 Health Care IL 501(C)(3) 11 III-FI NA The Children's Memorial Hospital 2300 Childrens Plaza Chicago IL 60614 362170833 Hospital IL 501(C)(3) 3 CMMC CMH Self Insurance Foundation 2300 Childrens Plaza Chicago IL 60614 366638400 Insurance IL 501(c)(3) 11 III-FI CMMC CMMC INSURANCE CO LTD 2300 Childrens Plaza Chicago IL 60614 000000000 SELF INSURANCE CJ NA CORPORATION false false true false false false false false false true false false false false true true false false The Children's Memorial Hospital C 10303728 The Children's Memorial Hospital O 21279747 The Children's Memorial Hospital J 1622696 The Children's Memorial Research Center P 4764473