2011-05-16T10:27:40-05:00 2010-06-30 KPMG LLP 1676 International Drive McLean VA 22102 990 2009-07-01 540506321 Children's Hospital of The King's Daughters CHIL 7576687000 601 Childrens Lane Norfolk VA 23507 DENNIS RYAN 2011-05-16 true SCOTT SHERMAN KPMG LLP 7032868000 2009 2016-02-24 21:20:13Z James D Dahling 601 Childrens Lane Norfolk VA 23507 289785052 false X WWW.CHKD.ORG X 1961 VA Dedicated to the mission of providing the best possible care and services for all children who come to us because of sickness and injury. 19 15 2821 605 274100 204633 12022179 14159859 247326742 268215826 590999 1133958 2690518 2004613 262630438 285514256 217701 81277 0 0 122729112 125182591 1399635 1383768 1383768 114733714 115583311 239080162 242230947 23550276 43283309 264471757 289927502 116566071 122569484 147905686 167358018 DEDICATED TO THE MISSION OF PROVIDING THE BEST POSSIBLE CARE AND SERVICES FOR ALL CHILDREN WHO COME TO US BECAUSE OF SICKNESS AND INJURY. OUR GOAL IS TO PROVIDE THE FINEST HEALTH CARE IN A COMPASSIONATE ENVIRONMENT. false false 195823956 81277 270696006 For 50 years, Children's Hospital of The King's Daughters (CHKD) has been the only facility of its kind in Virginia, serving the medical and surgical needs of children throughout greater Hampton Roads, the Eastern Shore of Virginia and northeastern North Carolina. The not-for-profit hospital was founded in 1961 by The King's Daughters, a service organization providing medical care to indigent children. From the day the hospital opened, it has been dedicated to caring for the underserved, today devoting more than half of its inpatient days to Medicaid patients. Many of CHKD's unique pediatric services address pressing public health needs that would otherwise go unmet. As the principal provider of healthcare services for the region's children, CHKD collaborates with and supports many institutions and individuals who share its concern for the well-being of young people. Over the years, the community's generous financial support has helped Children's Hospital of The King's Daughters grow to meet the changing needs of children and families. From its beginnings as an 88-bed hospital to today's broader-reaching health system with a 195-bed hospital, CHKD has secured a place in the hearts of the community and the thousands of children who come for care each year. Today, the CHKD Health System provides comprehensive medical care to children at the hospital in Norfolk as well as at multi-service health centers in Virginia Beach, Norfolk, Newport News and Chesapeake. The Health System also offers a variety of education, research and health initiatives to improve the health and well-being of children in this community and beyond. Each year, more than 250,000 times, children turn to CHKD for services, many of them not available elsewhere. The Health System's primary services center on inpatient and outpatient care community outreach programs and medical education/research. I. Inpatient Care. Children with a vast range of medical problems -- including life-threatening illnesses and injures -- turn to CHKD for inpatient care. In FY 2010, CHKD had 5,835 admissions resulting in 52,905 patient days. Many of these patients were cared for in specialty units described below, which offer a level of care available nowhere else in the region, relieving families of the burden of travel during a child's critical illness. Children's Hospital of The King's Daughters is home to the region's only Level IV Neonatal Intensive Care Unit, where each year critically ill newborns, some as young as 23 weeks gestation, benefit from a unique combination of advanced medical technology, developmental care and family support. There were 523 admissions to the NICU in FY10. The hospital also operates a Neonatal Step-Down Unit for babies from our NICU who require a transitional period before being discharged home. The region's largest and most experienced Pediatric Intensive Care Unit is at CHKD. In this unit, a full-time staff of board-certified pediatric intensive care physicians, critical care nurses and respiratory therapists provide extremely sophisticated, technologically advanced care to children with life-threatening injuries and illnesses. Medical care is supplemented with psychosocial support provided by child life therapists, social workers and chaplains who have extensive experience helping families through the trauma and stress of a severe illness or injury in a child. There were 1,125 admissions to our PICU in 2010. Many patients are brought from other area hospitals to CHKD by the hospital's neonatal/pediatric transport service in one of four fully equipped mobile intensive care units. Two critically trained teams are available 24 hours a day, seven days a week to all area medical facilities that need to send sick or injured children to CHKD. Each transport unit is staffed by a neonatal/pediatric critical care nurse, a registered respiratory therapist and a certified EMT-paramedic trained in neonatal/pediatric care. In FY10, the team transported 1,124 patients. Nearly one third of those were newborns coming to our Neonatal Intensive Care Unit. CHKD's transport service is also under contract to the Naval Medical Center, Portsmouth, to provide all neonatal and pediatric military transports in the region. Besides ground transport, the team alerts fixed-wing air and helicopter transports when medically necessary. CHKD operates the region's only acute inpatient Rehabilitation Unit exclusively for children, where young patients receive comprehensive rehabilitation services needed to regain skills lost after accidents or illnesses. Prior to the opening of this unit, families had to travel long distances outside of the area to receive this kind of care, which usually requires a hospitalization of several weeks duration. Admissions to the inpatient rehabilitation unit resulted in 1,692 patient days in FY10. CHKD's Transitional Care Unit, where technology-dependent children begin the process of moving from the hospital to their homes, provides developmental, educational and emotional support as well as high acuity medical care and parent/caregiver support and education. Admissions to this unique unit resulted in 5,247 patient days in FY10. CHKD operates the region's only pediatric surgery program, offering young people state-of-the-art treatment in a supportive, non-threatening environment created exclusively to meet their needs. In FY 10, surgeons performed 13,418 surgeries at CHKD facilities for a vast range of problems, from the simplest outpatient procedures to complex orthopedic and genitourinary surgeries. (See outpatient services and programs for more information of CHKD's surgery program). CHKD employs dozens of professionals who provide emotional, recreational, spiritual and practical support to children and families during hospitalizations. The work of these professionals complements our expert medical care to create a unique treatment and healing environment for children and their families. Our chaplaincy services provide emotional support, pastoral care, ethical reflection, bereavement resources/follow-up and spiritual guidance to patients, families and staff with in-hospital presence seven days a week, with 24-hour on-call availability. The hospital employs three full-time chaplains, one part-time and eight per-diem chaplains who reflect the diversity of the community and are professionally trained to meet the varied pastoral needs of families with respect and compassion. The chaplains also facilitate educational programs for hospital staff and physicians. The hospital employs 16 child life staff members who help children adjust and cope during hospitalization. Their goal is to make the child's hospital experience as normal as possible by developing supportive relationships with patients and families, providing age-appropriate preparation for medical procedures, coping strategies and play opportunities for children to relieve stress. Child life staff members also schedule and facilitate community group visitors to the hospital and manage approximately 100 volunteers weekly. The child life staff also maintain four popular activity areas throughout the hospital, which provide hospitalized children opportunities for socialization and creative play. Child life specialists work with CHKD's volunteer services division to manage the hospital's popular pet therapy program -- the Buddy Brigade -- which brings visits of dog/handler teams to the hospital several times each week. They also manage our very popular David Wright Video Library, which provides hundreds of games and entertainment videos for hospitalized children. CHKD's department of social work helps meet social, emotional and psychological needs that may arise when a child is hospitalized or when an emergency arises. Our 20 licensed social workers also work with children in our outpatient specialty clinics, especially those catering to children with chronic illnesses. Among the services our social workers provide are the following: " coordinate referrals and ongoing communications to other community resources. " facilitate support groups for CHKD families dealing with chronic illness and loss " conduct psychosocial history and mental health assessments of patients to aid caregivers in developing treatment plans " help patients and families deal with situational crises " work with families and CHKD's eligibility workers to complete applications for insurance coverage for medical care Social workers also facilitate a variety of support groups that help patients and families connect with others in the community who share their challenges. CHKD sponsors support groups for patients and their families with heart conditions, diabetes, Turner's syndrome, Prader-Willi syndrome, cancer, sickle cell and special needs. Families of NICU patients meet periodically to share information; and our recreation-based group for brothers and sisters of children with special needs -- called SibShops -- meets regularly to suppor 195823956 true true false false false false false false true true false true false false false false false true true false true true false true true false false false false false false false false false true true false false false false true false false false true 122 0 true 2821 true true true false false false false false false false false true 19 15 false false false false true true true true true false false true true true true true true false true true true VA X DENNIS RYAN 7576687000 601 CHILDRENS LANE NORFOLK VA 23507 Elizabeth M Weller 2.0 X X 0 0 0 MARYELLEN BALDWIN 1.0 X 0 0 0 Sarah Bishop 1.0 X 0 0 0 Harold J Cobb Jr DD 1.0 X X 0 0 0 Pamela Q Combs M Ed 1.0 X 0 0 0 Maurice A Jones 1.0 X 0 0 0 J Jerry Kantor 3.0 X X 0 0 0 Cynthia S Kelly MD 1.0 X 0 0 0 John R Lawson II 2.0 X X 0 0 0 Barbara C Lipskis 3.0 X X 0 0 0 LLOYD U NOLAND III 1.0 X 0 0 0 Donald Nuss MB Ch B 1.0 X 0 101781 11752 Kevin Rack Esq 1.0 X 0 0 0 CONRAD M HALL 1.0 X 0 0 0 MARK R WARDEN 1.0 X 0 0 0 ROLF WILLIAMS 1.0 X 0 0 0 Elizabeth D Lanoue MD 1.0 X 0 0 0 Hugh T McPhee MD 1.0 X 0 272484 21530 JAMES D DAHLING 1.0 X X 0 812789 433803 Dennis Ryan 1.0 X 0 441849 68520 ARNO ZARITSKY 40.0 X 443069 0 61522 JOANN ROGERS 40.0 X 309720 0 154317 DAVID BOWERS 40.0 X 258890 0 158286 JO-ANN BURKE 40.0 X 292568 0 37743 Evelyn Keever 40.0 X 167604 0 11633 SUZANNE STARLING 40.0 X 196844 0 20410 JAMES DICE 40.0 X 166202 0 10431 Thomas Berry 40.0 X 151813 0 14914 Michelle Clayton 40.0 X 140619 0 16189 MARTIN CASEY 40.0 X 119396 0 1782 2246725 1628903 1022832 10 true true false Childrens Specialty Group PO Box 11049 NORFOLK VA 23517 Physician Services 7932326 Eastern Virginia Medical School PO Box 1980 NORFOLK VA 23501 Physician Services 8540797 Sodexho Inc and Affiliates PO Box 905374 CHARLOTTE NC 28290 Dietary Services 2144066 WM Jordan Company Inc PO Box 1337 VIRGINIA BEACH VA 23462 Construction 4047347 Sentara Optima Health Plan 4417 Corporation Lane VIRGINIA BEACH VA 23462 HEALTH INSUR ADMIN 3929470 49 50589 2136189 11550527 422554 14159859 PATIENT SERVICES 900099 265650502 265650502 OTHER RELATED SVCS 900099 2291224 2291224 LAB SERVICES 621500 274100 274100 268215826 1137314 1137314 501 501 0 1552326 2302350 -750024 -750024 -750024 1906975 16205 1866485 60552 40490 -44347 -3857 -3857 41766 50589 41409 357 357 0 0 GRADUATE MEDICAL EDUCATION 900099 2754280 2754280 2754280 285514256 270696006 274100 384291 81277 81277 0 0 0 1474059 1198410 275649 0 0 102945127 83694388 19250739 0 482865 392569 90296 0 12660003 10292583 2367420 0 7620537 6195497 1425040 0 0 13480 10959 2521 0 0 0 1383768 1383768 0 14977488 12176698 2800790 0 140413 114156 26257 0 842629 685057 157572 0 0 0 3994728 3247714 747014 0 208828 169777 39051 0 0 483662 393217 90445 0 3595011 2922744 672267 0 0 13812402 11229483 2582919 0 1097968 892648 205320 0 SUPPLIES 32870325 26723574 6146751 0 PURCHASED SERVICES 12567385 10217284 2350101 0 EQUIP RENTAL AND MAINT 11101405 9025442 2075963 0 PROVISION FOR BAD DEBTS 9239109 7511396 1727713 0 CORPORATE SUPPORT 7969640 6479317 1490323 0 2668838 2169766 499072 0 242230947 195823956 45023223 1383768 16286901 15680282 5414641 4543691 41435855 42503899 4051739 4417141 1619524 1337154 289373963 128060305 156228923 161313658 28381434 57052621 11052740 3079056 264471757 289927502 26946544 27393692 293122 123330 78000000 78000000 11326405 17052462 116566071 122569484 X 119062229 140415679 9479316 6924375 19364141 20017964 147905686 167358018 264471757 289927502 X false true true X true true X RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED 16948282 658921 1308308 51181 18864330 23542928 1206847 -4687689 3113804 16948282 1.00000 false false 7839430 7839430 156718254 55502323 101215931 115413092 72404502 43008590 9403187 153480 9249707 161313658 0 DERIVATIVE INSTRUMENTS 2006 BO 11990801 ANNUITY PAYABLE 1638666 ACCRUED TAIL COVERAGE 32637 LONG TERM CAPITAL LEASE-SIEMEN 905719 INTERCO PAYABLE 2484639 17052462 FIN 48 Footnote from Consolidated Audit Report In June 2006, the Financial Accounting Standards Board (FASB) issued FASB Interpretation No. 48, Accounting for Uncertainty in Income Taxes - an interpretation of FASB Statement No. 109 (FIN 48), which became effective as of July 1, 2007. FIN 48 addresses the determination of how tax benefits claimed or expected to be claimed on a tax return should be recorded in the consolidated financial statements. Under FIN 48, the tax benefit from an uncertain tax position must be recognized only if it is more likely than not that the tax position will be sustained upon examination by the taxing authorities, based on the technical merits of the position. The tax benefits recognized in the consolidated financial statements from such a position are measured based on the largest benefit that has a greater than 50% likelihood of being realized upon ultimate resolution. The implementation of FIN 48 had no impact on Children's Health System's (CHS) consolidated financial statements. CHS does not believe its financial statements include any uncertain tax positions. Schedule D, Part V Endowment funds are used according to specific written requests of the donor endowment agreement. If no direct requests are made, funds are used in accordance with the overall mission of the organization. X X X X X X true SYR Inc Thrift Stor true 117006 Children's Miracle Network Telethon false 215529 332535 NC VA Mini Grand Prix 92355 50589 41766 116 3282 38011 0 92355 50589 41766 116 3282 38011 41409 357 true true X true X 175. true X true true false true true 962836 0 962836 0.00400 108837614 99512729 9324885 0.03850 109800450 99512729 10287721 0.04250 13353128 297217 13055911 0.05390 10571844 4976106 5595738 0.02310 47928453 26878506 21049947 0.08690 204335 0 204335 0.00080 72057760 32151829 39905931 0.16470 181858210 131664558 50193652 0.20720 false 3666078 851992 939585 2367906 -1428321 X true true Children's Hospital of The King's Daught

601 Childrens Lane Nofolk VA 23507

X X X X X X MEDICAID DSH CHILDREN'S HOSPITAL OF THE KING'S DAUGHT

2021 CONCERT DRIVE VIRGINIA BEACH VA 23456

OUTPATIENT SURGICAL HOSPITAL CHILDREN'S HOSPITAL OF THE KING'S DAUGHT

11783 ROCK LANDING DRIVE NEWPORT NEWS VA 23608

OUTPATIENT SURGICAL HOSPITAL N/A N/A A hybrid approach was used for determining costs related to community benefit. Actual costs are identified by department in the general ledger and then were grouped into like community benefit programs. Indirect costs were adjusted for the following: costs attributable to unreimbursed Medicaid, costs reported elsewhere, marketing and grant writing expenses. The Medicaid costs adjustment was calculated using a cost to charge ratio of applicable expenses divided by total applicable charges applied to Medicaid revenue. The remaining indirect costs were allocated proportionately to the direct costs reported by department. In addition, expenses were calculated at cost and then costs related to charity care, bad debt and Medicaid were removed before arriving at the amounts for community benefit at cost. The amount reported on Part I, Line 7g includes $15,685,025 of costs attributable to physician clinics. The amount of Bad Debt included on Form 990, Part IX, line 25, column (a) that was subtracted for purposes of calculating the percent of total expense in Part I, Line 7, column (f) is $622,189. Bad debt reported in Part III, Section A is calculated based on the Hospital's overall cost to charge ratio. The ratio was calculated by dividing total applicable charges recorded for all patients into total applicable expenses required to provide that care. CHKD does not maintain records that track patients who could have qualified for charity care. The amount reported in Part III line 3 was calculated using a cost to charge ratio. This amount is an estimate of patients who likely would have qualified for financial assistance under the charity care policy if sufficient information had been available to determine their eligibility. The audited financial statements and related footnotes for Children's Hospital of the King's Daughters do not contain footnotes related to bad debt expense. The allowance for uncollectible receivables is management's best estimate of the amount of probable credit losses in the Hospital's existing receivables. The Hospital determines the allowance based on historical write-off experience. Account balances are charged off against the allowance, net of payments and discounts, after all means of collection have been exhausted and the potential for the recovery is considered remote. As a children's hospital, the Hospital has a small population of Medicare patients and is paid less than cost due to the reimbursement methodology used by Medicare. The shortfall was calculated using the Hospital's overall cost to charge ratio applied to Medicare gross charges. This shortfall is not separately included as a community benefit as 100% of it has already been captured in the appropriate category on Part I, line 7. Accounts with an unpaid balance or without an established payment plan is referred to a collection agency or attorney for continued collection efforts. CHKD makes reasonable efforts to determine eligibility for financial assistance/charity care before referring to a collection agency or an attorney. Reasonable effort includes and is not limited to notification about the Financial Assistance - Charity Care/Collection Policy posted in Admissions, Emergency Department or other designated areas. The information regarding the policy is included in the admission package and on the patient bill. The Health Benefits Analyst and Customer Service Representative who may speak with the guarantor by phone provide them with financial assistance including Charity Care information. The Financial Assistance-Charity Care/Collection Policy is available upon request and via www.chkd.org. CHKD ensures all collection protocols are met prior to referral to collections agency or attorney. Approved Charity Care amount will not be subject to collection activities. The remaining balance will be subject to CHKD's standard collection protocols. The hospital operates 5 outpatient services facilities offering therapy, laboratory and radiology services in addition to the facilities listed in Part V. CHKD uses a variety of methods to assess the health care needs of the community it serves. The organization identified the healthcare needs of the community it serves through regional, state and national data and through partnerships and collaborations with other medical and public health agencies and organizations. As the only healthcare provider in Virginia devoted exclusively to the needs of children, CHKD assumes the responsibility of leading the region in the provision of pediatric care and the promotion of children's health and is trusted throughout its community as a resource ready and willing to address established and emergent pediatric needs wherever and however they are identified. CHKD's Charity Care eligibility criteria and procedures for applying are provided to all patients. Patients who are admitted are provided the information by the use of the admission packet; patients who receive outpatient services are provided the information during the registration process. An application for Charity Care, along with a letter explaining the process, shall be sent to any patient or guarantor who requests information on any programs or provisions the hospital may have to help assist patients or guarantors in paying their hospital bill. The Charity Care policy and application is available on the internet at www. chkd.org. All billing statements mailed to guarantors include a notice of the availability of charity and how to obtain the information/application. Assistance with the application process is available through the Health Benefits Analyst (HBA). The unit social worker is available to provide information or referral to the HBA during an inpatient stay. CHKD is the regional pediatric referral center for southeastern Virginia, the Eastern Shore of Virginia and northeastern North Carolina--a service area of nearly 2 million people. The hospital also treats children from across the United States and around the world. This service area comprises a diverse mix of urban, suburban and rural communities, as well as 10 military installations. The Southeastern Virginia region is made up of eight cities collectively known as Hampton Roads: Norfolk, Virginia Beach, Chesapeake, Hampton, Newport News, Portsmouth, Suffolk and Williamsburg. Hampton Roads is the second largest metropolitan area between Washington, D.C., and Atlanta. More than 35% of the region's households have children. Approximately 28.1% of the population of the greater Hampton Roads' area is between 0 - 19 years old. According to the Old Dominion University State of the Region 2010, the recession pushed up poverty rates in Hampton Roads to approximately 11% versus 10.2% in Virginia and a 13.2% rate nationally. Based on federal guidelines, 15.8% of children in CHKD's service area live below the poverty level. The unemployment rate was approximately 6.83% in Hampton Roads compared to 6.65% in Virginia and 9.3% nationally. The region's average wage rate is 8 percent below the national average. NONE CHKD has a unique place in the community, especially in service to the indigent population. More than 35 percent of the region's households have children. The region's average wage rate is 8 percent below the national average. Based on federal guidelines, 15.8 percent of children in CHKD's service area live below the poverty level. Those facts help explain why in 2010, the number of patients covered by Medicaid at CHKD grew to 57%. The Virginia hospital with the second-largest Medicaid patient load weighs in under 30%. A majority of the organization's governing body is comprised of persons who reside in the Hampton Roads area and are not employees or contractors of the organization, nor family members thereof. CHKD extends medical staff privileges to all qualified physicians in the community for some or all of its departments. The CHKD management and board determine how any surplus funds will be used based on the current needs of the organization. Historically, surplus funds have been used for a variety of purposes including patient care programs, capital improvement needs, reserves, etc. Role of Organization and its affiliates in promoting the health of the communities served: The Children's Health System is comprised of several organizations. CHKD provides inpatient and ambulatory care services across many pediatric specialties, including a high percentage of neonatal and pediatric intensive care services; The Children's Health Foundation is established to raise funds, manage investments and fund education, research and other programs for Children's Health System; the Children's Medical Group, Inc., a Virginia stock corporation, owns and operates pediatric physician practices; CMG of North Carolina, Inc., a North Carolina stock corporation, which owns and operates a pediatric physician practice in northeastern North Carolina; and the Children's Surgical Specialty Group, Inc., a Virginia stock corporation, which owns and operates pediatric surgical subspecialty practices, including pediatric general surgery, pediatric urology, pediatric cardiac surgery, pediatric orthopedic surgery and sports and adolescent medicine, pediatric neurosurgery and pediatric plastic surgery. VA true Eastern Virginia Medical School PO BOX 1980 Norfolk VA 23501 546055378 501(c)(3) 70000 Nosocomial Infection Research Old Dominion University Research Foundation PO BOX 6369 Norfolk VA 23508 546068198 501(c)(3) 11277 RA Grant 2 Process for Awards Awards are made to Investigators/Physicians by CHKD (Children's Hospital of The King's Daughters) for specific project or research endeavors. Funding requests are completed and submitted where they are reviewed by the finance department, the CEO and the applicable board. After an award is made, the awardee must file quarterly financial summaries and a final report to be submitted to the CEO at the end of the funding period. X true true X X X X true true false false false false false true false Hugh T McPhee MD 0 271245 0 0 0 1239 0 0 0 21530 0 294014 0 0 JAMES D DAHLING 0 535933 0 205580 0 71276 0 390273 0 43530 0 1246592 0 33369 Dennis Ryan 0 314200 0 96099 0 31550 0 27176 0 41344 0 510369 0 20084 Evelyn Keever 83856 0 7812 0 75936 0 0 0 11633 0 179237 0 0 0 SUZANNE STARLING 182552 0 0 0 14292 0 0 0 20410 0 217254 0 0 0 JAMES DICE 130550 0 11335 0 24317 0 0 0 10431 0 176633 0 0 0 Thomas Berry 102886 0 9347 0 39580 0 0 0 14914 0 166727 0 0 0 Michelle Clayton 138033 0 0 0 2586 0 0 0 16189 0 156808 0 0 0 ARNO ZARITSKY 344843 0 84000 0 14226 0 35048 0 26474 0 504591 0 0 0 JOANN ROGERS 231181 0 55620 0 22919 0 126945 0 27372 0 464037 0 8693 0 DAVID BOWERS 193767 0 47520 0 17603 0 125535 0 32751 0 417176 0 3433 0 JO-ANN BURKE 200993 0 49440 0 42135 0 20600 0 17143 0 330311 0 16335 0 MARTIN CASEY 22710 0 0 0 96686 0 0 0 1782 0 121178 0 4902 0 Schedule J, Line 1 In connection with a retirement program, tax gross-up payments are provided to certain participants whose contributions are immediately taxable, in order to provide them with benefits that are tax-equivalent to benefits of participants whose contributions are not immediately taxable. Schedule J, Line 4A MARTIN CASEY RECEIVED A SEVERANCE OF $75,192. SCHEDULE J, LINE 4B Children's Health System sponsors a supplemental executive retirement plan ("the Plan"). The Plan is designed to retain executives in positions essential to the success of Children's Health System. James Dahling, Dennis Ryan, Arno Zaritsky, Joann Rogers, David Bowers, and Jo-Ann Burke participate in the Plan. During the year, there were no payments from the Plan. SCHEDULE J, LINE 7 Officers and Vice Presidents may receive additional compensation based on criteria set up by the Compensation Committee of the Board of Directors. Department Directors may receive additional compensation based on criteria set by management and approved by the Board of Directors. VA Small Business Financing Authority 541300845 928104KD9 2006-01-01 78000000 Revenue & Refunding Bonds false false 78904564 55467069 689744 22747751 2007 true false true true true true false false false false John R Lawson II Pres/CEO of WM Jordan 4047347 WM Jordan is construction cont false X 4 405025 AVG FMV on date rec X 1 5515 AVG FMV on date rec X Various in-kind items 2 12014 AVG FMV on date rec 0 false true true Schedule M, Line 32A CHKD pays SYR, Inc. Management fees to manage thrift stores for the BENEFIT OF THE ORGANIZATION. CHKD ALSO PAYS TIDEWATER AUTO TO AUCTION CARS FOR THE BENEFIT OF THE ORGANIZATION. GOVERNING BODY & MANAGEMENT ITEMS Part VI LINE 11 THE 990 IS PREPARED USING THE ANNUAL FINANCIAL STATEMENTS THAT IS REGULARLY REVIEWED BY THE BOARD AND AUDITED ANNUALLY AS A PART OF THE CONSOLIDATED FINANCIAL STATEMENTS OF CHILDREN'S HEALTH SYSTEM, INC. UPON COMPLETION OF THE RETURN AND PRIOR TO FILING, THE BOARD IS PROVIDED A COPY FOR REVIEW. GOVERNING BODY & MANAGEMENT ITEMS PART VI, SECTION A QUESTIONS 6,7A & 7B 6. Children's Hospital of The King's Daughters, Incorporated is a Virginia non-stock corporation with a sole member. The sole member of Children's Hospital of The King's Daughters, Incorporated is Children's Health System, Inc., a Virginia non-stock not-for-profit corporation. Pursuant to Section 13.1-852.1 of the Code of Virginia, Children's Hospital of The King's Daughters, Incorporated is managed by its sole member, Children's Health System, Inc. 7a. Children's Health System, Inc., the sole member of Children's Hospital of The King's Daughters, Incorporated, is a Virginia non-stock not-for-profit corporation. Pursuant to Section 13.1-852.1 of the Code of Virginia, Children's Health System, Inc., the sole member of Children's Hospital of The King's Daughters, Incorporated, manages Children's Hospital of The King's Daughters. Accordingly, the Board of Directors of Children's Health System, Inc. is the governing body for Children's Hospital of The King's Daughters, Incorporated. As a Virginia non-stock corporation, Children's Health System, Inc. has members that elect the Board of Directors of Children's Health System, Inc. The members of Children's Health System, Inc. that elect the Board of Directors of Children's Health System, Inc. are the Class A members of Children's Health System, Inc. (i.e., the then current members in good standing of The Norfolk City Union of the King's Daughters, Inc., a Virginia non-stock not-for-profit corporation) and the Class B members of Children's Health System Inc. (i.e., the then current directors on the Board of Directors of Children's Health System, Inc.). 7b. The following decisions of the Board of Directors of Children's Health System, Inc., which is the governing body for Children's Hospital of The King's Daughters, Incorporated, are subject to approval by the Class A and Class B members of Children's Health System, Inc.: 1) any amendments to the Articles of Incorporation of the corporation; and 2) any proposed merger or consolidation of the corporation, or any sale, lease, exchange, mortgage, pledge or other disposition of all, or substantially all, of the property and assets of the corporation. POLICIES 990 Part VI B Conflict Policy Considerations CHKD conflict of interest policy includes officers, members of the Board of Directors and Board Committees, key employees, all other employees, Professional Staff and substantial donors. Annually, a questionnaire is distributed and collected from officers, members of the Board of Directors and Board committees and key employees. The questionnaires are reviewed by the Legal Department. For known conflicts, the person involved recuses himself or herself from deliberations regarding the transaction. Violations of the Conflicts of Interest Policy are reported to the CHKD Board Chair or the CHKD Compliance Officer, as applicable, and may require corrective action up to and including termination of employment. Compensation Process Considerations Children's Health System establishes the compensation of the CEO James Dahling. Children's Health System and Children's Hospital of the King's Daughters use the following process to establish compensation for officers and key employees: An Independent compensation consultant approved and retained by the Compensation Committee of the Board annually, usually in April, provides education and presents to the full Board comparative salaries and salary ranges from a database comprised of Children's Hospitals and other applicable hospitals for officers & executives for the Board to review. The Compensation Committee with the aid of the consultant reviews and makes decisions as to executive salaries of CHKD and its subsidiaries. Those salary changes and approvals are documented by minutes maintained by the Compensation Committee and signed by the Chairman of the Board. Part VI, C, Line 19 Financial statements (part of the consolidated financial statements of Children's Health System, Inc.) along with the governing documents including the conflict of interest policy are available to the public through direct inquiry and the request of the organization. FORM 990, PART VII THE FOLLOWING INDIVIDUALS WORK FOR MULTIPLE RELATED ORGANIZATIONS AS INDICATED BELOW: Hugh McPhee - 40 hours CMG & 1 hour CHS Donald Nuss - 16 hours CSSG & 1 hour CHS Jim Dahling - 40 hours CHS and 1 hour CHF Dennis Ryan - 40 hours CHS and 1 hour CHF SUPPLEMENTAL INFORMATION FOR SCHEDULE K, PART II, LINE 1 INVESTMENT EARNINGS ON PROJECT FUND ADDED $904,564 IN PROCEEDS WHICH ARE REFLECTED IN PART II, LINE 1, BUT ARE NOT A COMPONENT OF "ISSUE PRICE" UNDER THE DEFINITION OF SUCH TERMS IN THE TREASURY REGULATIONS. Children's Health System Inc 601 Childrens Lane Norfolk VA 23507 541278830 Healthcare VA 501(c)(3) 11c NA Children's Health Foundation Inc 601 Childrens Lane Norfolk VA 23507 541278865 Fundraising VA 501(c)(3) 11c NA NORFOLK CITY UNION OF THE KING'S DAUGHTE 601 Childrens Lane Norfolk VA 23507 541283946 Charity Promo VA 501(c)(3) 7 NA Children's Surgical Specialty Group Inc 601 Childrens Lane Norfolk VA 23507 311610834 Healthcare VA NA C Corp Children's Medical Group Inc 601 Childrens Lane Norfolk VA 23507 541778786 Healthcare VA NA C Corp CMG of North Carolina Inc 601 Childrens Lane Norfolk VA 23507 561960102 Healthcare NC NA C Corp Children's Health System Insurance LTD 4th Floor 41 Cedar Avenue Hamilton BD HM12 Insurance BD NA C Corp true true true false true false false false true true false false false true true false true true CHILDREN'S SURGICAL SPECIALTY GROUP INC A,I 863048 CHILDREN'S MEDICAL GROUP A,I 422247 CORPORATE SUPPORT EXPENSE CHS O 7969640 CASH TRANSFER TO CHS Q 1400000 CASH TRANSFER FROM CMG R 3849000 CASH TRANSFER TO CSSG Q 2000000 CASH TRANSFER TO CMG Q 1600000 CHILDREN'S HEALTH FOUNDATION C 188201 DUE TO CHS E 2358673 DUE TO CHF E 95478 CMG J 97811 CMG VA EQUITY OUT B 2844643 CSSG EQUITY OUT B 10053225 NCUKD C 267275 EMPLOYEES PAID BY NCUKD N 193995 CMG NC EQUITY OUT B 574984