2011-07-13T15:00:20-04:00 2010-08-31 ERNST & YOUNG US LLP 155 NORTH WACKER DRIVE CHICAGO IL 60606 990 2009-09-01 362170833 THE CHILDREN'S MEMORIAL HOSPITAL CHIL 3125734578 2300 CHILDRENS PLAZA BOX 268 CHICAGO IL 606143394 Paula M Noble 2011-07-13 3128792000 2009 2016-02-24 21:20:13Z Patrick M Magoon 2300 CHILDRENS PLAZA BOX 268 CHICAGO IL 606143394 1490945854 false X WWW.CHILDRENSMEMORIAL.ORG X 1894 IL THE HOSPITAL IS A PEDIATRIC ACADEMIC MEDICAL CENTER PROVIDING PATIENT CARE AND EDUCATION AND TRAINING FOR THE PHYSICIANS AND OTHER MEDICAL PROFESSIONALS. 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Chicago IL 60611 Professional Med.Svc 14574950 ZIMMER GUNSUL FRASCA 1350 AVENUE OF THE AMERICAS SUITE New York NY 10019 ARCHITECTS 7809610 M A MORTENSON COMPANY 25 NW POINT BLVD Elk Grove Village IL 60007 CONSTRUCTION 4236855 ARAMARK CORPORATION 10510 TWIN LAKES PKWY Charlotte NC 28269 fOOD SERVICES 4207354 264 7747247 31023847 1772271 38771094 Patient Care & Program Services 621110 330180795 330180795 Medicare/Medicaid 621110 159021927 159021927 GRANTS-FED/STATE/AGENCY/SUBCONTRACT/PRIVATE 621110 46038863 46038863 REFERENCE LAB REVENUE 621500 1210056 1167684 42372 PARKING GARAGES 812930 1059277 476228 583049 2493951 1111531 1382420 540004869 10034648 -209374 10244022 1489 1489 0 2087741 2294283 -206542 -206542 349483 -556025 900046013 889303531 1676 10742482 -1676 10740806 559 10740247 0 0 0 0 599346364 537870283 309785 22395202 24129924 24129924 0 0 0 10330957 1744506 8586451 0 208132446 184036227 24096219 9673347 8125612 1547735 23871511 20979174 2892337 13319684 11470400 1849284 0 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0.79830 RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED 0 0 0 0 true true false true 897 false false true 496718 false true 43981 541596 false Lobbying Activity Schedule C, Part II-B To further their collective mission, The Children's Memorial Hospital (the "Hospital") and its affiliates, by virtue of their role in providing complex care and care for children, partner with and frequently interact with members of the government in developing policies applicable to children's health and well-being. In 1994, the Hospital established a Public Policy Committee of the Board of Directors to recommend institutional positions on legislation and regulation that would enable the Hospital and its affiliates to enhance the health and well-being of children. Over the years the Public Policy Committee has attempted to shape public policy on matters affecting children's health and well-being and to garner government funding to support the exempt activities of the Hospital and its affiliates and for the development and construction of a new hospital, replacing the Hospital's existing facility, to be named Ann & Robert H. Lurie Children's Hospital. This new facility will facilitate the Hospital's ability to continue to build upon its academic and research ties in a family-centered environment and state-of-the-art facility that will foster the provision of compassionate care. Examples of policy initiatives for which the Hospital has advocated include: preventing transmission of HIV from mothers to newborn; prevention of childhood injury; prevention of child abuse; prevention of childhood obesity; and improving access to health insurance for children. Read more about our current institutional public positions at: http://www.childrensmemorial.org/newsroom/government-community/policy-posi tions.aspx. In addition, when state and federal legislators or committees need experts to analyze and testify as to how a pending bill would affect children's health in Illinois, they often look to the Hospital and its affiliates. In recent years, employees, officers and physicians of the Hospital and its affiliates have testified before elected officials and government policymakers in Washington, DC, Springfield and Chicago on issues ranging form the benefits of children passenger safety and helmet laws to window-falls prevention, funding for graduate medical education and Medicaid reform. In addition, the Hospital engages in lobbying activities to seek appropriate Medicaid funding of the substantial services provided by the Hospital and its affiliates to Medicaid-eligible patients in Illinois. The Hospital also seeks funding, on a state and federal level, for various initiatives that will enhance patient care. On the federal level, the Hospital, in connection with other children's teaching hospitals, works to protect and enhance funding for the Medicaid program and graduate medical education for 58 freestanding children's teaching hospitals in the United States. 345631973 3257533 10720980 1635773 2899059 355075654 376042568 323812 -18808632 11500978 424797 345631973 0.38820 0.45330 0.15840 false false 39289353 39289353 304086463 236558605 67527858 8920581 7276062 1644519 274120007 199109319 75010688 491221796 0 491221796 674694214 Alternative Investments 247607370 F 247607370 0 SELF INSURANCE LIABILITY 102608652 DUE TO THIRD PARTIES 10926774 ACCRUED PENSION LIABILITY 43705440 ASSET RETIREMENT COSTS 3344945 LEASE OBLIGATIONS 1125000 161710811 INTENDED USES OF ENDOWMENT FUNDS Schedule D, Part V, Line 4 CMH's endowment fund consists of individual donor-restricted endowment funds and funds designated by its Board to function as endowments. The net assets associated with endowment funds, including those funds designated by the Board to function as endowments, are classified and reported based on the existence or absence of donor-imposed restrictions. Effective June 30, 2009, Illinois passed Uniform Prudent Management of Institutional Funds Act ("UPMIFA"). CMh has, after obtaining advice of outside counsel, interpreted UPMIFA as sustaining the preservation of the original gift as of the gift date of the donor-restricted endowment funds absent explicit donor stipulations to the contrary. As a result of this interpretation, Cmh classifies as permanently restricted net assets, (a) the original value of gifts donated to the permanent endowment, (b) the original value of subsequent gifts to the permanent endowment, and (c) accumulations to the permanent endowment made in accordance with the direction of the applicable donor gift instrument at the time the accumulation is added to the fund. The remaining portion of the donor-restricted endowment fund that is not classified in permanently restricted net assets is classified as temporarily restricted net assets until those amounts are appropriated for expenditure by CMh in a manner consistent with the donor intent and standard of prudence prescribed by UPMIFA. Where the Board designates unrestricted funds to function as endowments they are classified as unrestricted net assets. true Sub-Saharan Africa 0 0 Program Services MEDICAL 18750 0 0 18750 Procedures for Monitoring The Use of Grant Funds Outside the United States Schedule F, Part I, Line 2 Travel grants of $2,000 are provided to third year medical residents that travel to the Bugando Medical Center in the United Republic of Tanzania. The residents provide medical care and other volunteer services to children as part of The Children's Memorial Hospital's mission. The travel grants are intended to cover some of the costs related to travel to and from the united republic of Tanzania, as well as housing and meals while at the Bugando medical center. The medical residents are provided $1,000 prior to their departure and $1,000 upon their return to the U.S. true true X true X 300. true X true true false true true 1322669 0 1322669 0.00240 208554933 180940941 27613992 0.05090 209877602 180940941 28936661 0.05330 9190635 0 9190635 0.01690 15493437 3301959 12191478 0.02250 818192 0 818192 0.00150 58287042 10216048 48070994 0.08860 8705562 0 8705562 0.01610 92494868 13518007 78976861 0.14560 302372470 194458948 107913522 0.19890 false 1334730 true true THE CHILDREN'S MEMORIAL HOSPITAL

2300 CHILDRENS PLAZA BOX 268 CHICAGO IL 606143394

X X X X Outpatient Center in Lincoln Park

2515 N Clark Street/467 W Deming Chicago IL 60614

Outpatient Medical Services Outpatient Center in Arlington Heights

880 W Central Rd Suite 6400 Arlington Heights IL 60005

Outpatient Medical Services Outpatient Center in Glenview

2150 Pfingsten Rd Glenview IL 60025

Outpatient Medical Services Outpatient Center in New Lenox

1870 N Silver Cross Blvd Ste 100 New Lenox IL 60451

Outpatient Medical Services Outpatient Center in Westchester

2301 Enterprise Dr Westchester IL 60154

Outpatient Medical & Ambulatory Surgical Services Outpatient Center in Westbrook

11301 W Cermak Rd Westchester IL 60154

OutPATIENT MEDICAL SERVICES Clinic at Uplift Community School

900 W Wilson Avenue Chicago IL 60640

Outpatient Medical Services Children's Memorial Uptown Clinic

4867 N Broadway Avenue Chicago IL 60640

Outpatient Medical Services Outpatient Center in Lake Forest

900 N Westmoreland Suite 209 Lake Forest IL 60045

Outpatient Medical Services Outpatient Center at CDH

25 N WINFIELD ROAD Winfield IL 60190

OUtpatient Medical services N/A The Children's Memorial Hospital prepares an annual community benefit report. The report can be found at: http://www.childrensmemorial.org/newsroom/serving-our-communities.aspx The calculation for "Charity Care and Certain Other Community Benefits at Cost" reflects the Form 990 definitions and will not necessarily correspond to calculations prepared for similar State of Illinois reporting requirements and our Audited Financial Statement reporting, each of which may require the use of specified methodologies that may differ from Form 990. Cost to Charge Ratio is calculated using the total expense reflected in our FY 2010 audited financial statements reduced by community benefits reflected on Schedule H, bad debt, provider tax, and non-patient related activity expenses found in the CMH cost report divided by gross patient charges. Subsidized health services reported in Section I Line 7g include details from two different community benefit programs of Children's Memorial Hospital ("CMH"), namely the Uptown Primary Care and Dentistry Clinics. Both clinics are Primary Care and Dentistry clinics. The operating costs attributable to Primary Care and Dentistry clinic are $818,192. Both programs are operated despite financial losses to the organization. The clinics provide healthcare to a largely underserved community. Our total expense from Form 990, Part IX, line 25, column (A) was $546,377,221. The bad debt expense included in this amount was $3,820,064. This left us with a total expense of $542,557,157 for purposes of calculating line 7, column (f). CMH considers self-pay as bad debt when a family is not eligible for financial assistance and is unwilling or unable to pay an outstanding account balance. The most common patient bad debt scenarios include unpaid self-pay portions of account balances after insurance or third party assistance payments or unpaid account balances after a bankruptcy filing. CMH is sensitive to the financial health of our patients and their families and recognizes that family financial concerns may not always be shared. As such, the Hospital is committed to managing collection efforts in a sensitive and respectful manner. In this regard, CMH sends a minimum of four letters/statements to the families before taking further action. For high balance accounts, the Hospital will attempt to contact the patient/family by telephone. Should the Hospital receive no reply after these numerous attempts, the self-pay balances are sent to a collection agency for further action. With few exceptions, CMH does not credit list its patients or take court action in its attempts to collect the outstanding balances, and CMH does not take these actions unless and until eligibility for financial assistance has been determined. The allowance for uncollectible accounts at the amount of charges written off is presented as a separate line item on the face of the financial statements. Bad debt expense on Part III Line 2 of Schedule H is calculated based on aging accounts receivable and applying historical bad debt percentages. N/A Collection policies are the same for all CMH patients. If at any point in the collection process, documentation is received that indicates the patient is potentially eligible for financial assistance but has not applied for it, the account is referred back for a financial assistance review. Through the use of numerous pamphlets, signage and website notices, patients are notified of CMH's financial assistance policy. On receipt of the information, we will determine eligibility for financial assistance and notify the patient as quickly as possible. The Hospital does not pursue collection of amounts from patients who are being reviewed for financial assistance eligibility or who are determined to qualify for charity care. In addition, all patients having difficulty paying their bills are directed to financial counselors. The financial counselors will work with our patients to qualify them for charity care or government program such as Medicaid. After a patient meets the qualifications for financial assistance, the account balance is either partially or entirely written off in accordance with our financial assistance policy. If there is any remaining balance, only that balance would be subject to our debt collection policy. If a patient has requested and/or filled out a financial aid application, all debt collection activities stop until eligibility for financial assistance can be determined. Our policy provides that once we have received the necessary documentation we will not refer any accounts for collection while we can determine whether the individual is eligible for financial assistance. N/A Children's Memorial assesses the health care needs of the larger and diverse community it serves in a variety of ways. Community needs are identified by the CMH board of directors as well as several advisory boards which are comprised of individuals from the community served who are active members of the community and attuned to community needs. For example, Children's Memorial has a very active Family Advisory Board which the Hospital relies upon to assist in making decisions about programming and policies. Family Advisory Board members, comprised of parents of children who have had extensive inpatient and outpatient experiences at the Hospital, advise administration and medical leadership on patient needs and hospital priorities from the family perspective. Family Advisory Board Members contribute through participation in planning, operating and policy committees of Children's Memorial. Similarly, the Kids' Advisory Board is intended to give a voice to children who have been treated at the Hospital. The Kids' Advisory Board makes recommendations on issues related to patient care from the perspective of a child, teenager and sibling of a patient. The Hospital also has established a Community Advisory Board for patients/caregivers of HIV-infected children, HIV-infected health care workers and other interested people in the community. This advisory board seeks input and feedback regarding clinic operations and patient needs to improve services and research for all HIV-affected patients at Children's Memorial. The Community Advisory Board meets to discuss improvements for the program's services; help in implementing new pediatric, adolescent and perinatal research; review HIV education materials used in the community; and to assess the effectiveness of the Children's Memorial HIV/AIDS program. The Hospital also has established an adolescent community advisory board established to address similar issues, specific to teens with HIV/AIDS. Moreover, Children's Memorial has strong relationships with other not-for-profit organizations (such as health clinics and social service agencies) and community leaders who help identify existing community needs and ways to address such needs. Children's Memorial is also a leader in pediatric 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. Children's Memorial Research Center is one of a few institutions in the U.S. dedicated exclusively to pediatric research. This research aids in the identification of unmet needs faced by the community and, in particular, the children Children's Memorial is privileged to serve. Children's Memorial assesses pediatric health needs in the community through its Child Health Data Lab, which provides current and accurate data on the health of children and adolescents throughout Illinois in a readily understandable format. By analyzing health status in particular areas over periods of time, the data lab assists policy-makers and public health planners to identify the health promotion and disease and injury prevention needs in local communities in Illinois. The data lab publishes reports including detailed analyses of child and adolescent injury, death and hospitalization in Illinois by county, and child injury and well-being by Chicago community area. The data lab provides statistical analysis and proposes solutions to address the leading causes of injury for different age groups. The data lab also houses the Illinois health survey which is the first broad-based survey of Illinois youth and adults, designed to provide county-level estimates of a broad range of health conditions for Illinois youth and adults and is intended to guide health policy in Illinois. Based upon all these varied assessments, Children's Memorial, in concert with others in the community, strives to address identified needs which it is positioned to assist with, particularly those related to the health and well-being of children, through education, research and patient care programs, in keeping with its primary mission as a tax-exempt entity. For specific examples of community building activities of Children's Memorial, please see Question 5 below. Children's Memorial's financial assistance policy is communicated to the public and patients frequently and in many ways. New patients receive a written notice informing them about Children's Memorial's financial assistance policy and are requested to sign a statement at least annually confirming that they have received this policy. Signs are posted at all areas of registration, lobbies of our facilities, bathrooms, reception, clinical areas, waiting rooms, and the emergency department directing patients who have need of financial assistance to contact our financial counselors. Pamphlets, distributed through the hospital [and other facilities], titled "Billing/Financial Assistance and Understanding Your Bill" provide information about the bills that the patients can be expected to have received and direct patients who may need financial assistance to contact our financial counselors. In addition, a link is shown on our website entitled "About Financial Assistance." Clicking on this link will take someone to the hospital's application form and instructions. Availability of financial assistance is also noted on the front and back of the first page of the patient statement. Children's Memorial has financial counselors who are trained to assist and advise patients as to the availability of a variety of social services and resources, including state Medicaid, Allkids (another State insurance program available to children from families whose income exceeds the thresholds for Medicaid eligibility), and the Hospital's charitable assistance program. The Hospital's staff actively assists inpatients and outpatient surgery patients who are eligible for Medicaid in applying for and obtaining these benefits. In the ambulatory clinic setting, applications for AllKids, are provided to patients. Where individuals are not eligible for such programs and there is need for financial assistance, the Hospital's financial counselors assist patients and families in applying for charitable assistance available from the Hospital. A patient may qualify for financial assistance at any time, including after applicable insurance limits may have been exhausted. Children's Memorial Hospital is unique in the community and the State of Illinois as it is the only freestanding pediatric hospital in the State and its tertiary services includes a Level I trauma center and Level III neonatal nursery which serves as a regional referral center for the State of Illinois' Perinatal Network. In addition, for more than 60 years, Children's Memorial has served as the pediatric training site for Northwestern University's Feinberg School of Medicine, training residents, medical students and fellows who will comprise the next generation of health care providers. While Children's Memorial Hospital serves patients from all over the State of Illinois and from every state and 36 countries, the primary community served by the Hospital is children from the Chicago metropolitan area, with the primary service area defined as being the City of Chicago and Cook, DuPage, Kane, Kendall, Lake, McHenry, and Will Counties in Illinois. Over 50% of inpatients to the Hospital live within 10 miles of the Hospital and more than 66% of outpatients reside within 10 miles. 52.5% of the patients treated at the Hospital in fiscal year 2010 were Medicaid recipients. Children's Memorial is the largest provider of Medicaid services in the State of Illinois, with 24% more inpatient and 53% more outpatient Medicaid services than the next highest Illinois hospital. The poverty level in the primary service area, according to the most recent Census Bureau data is 11.8%. Patient demographics are diverse and include a large number of families whose primary language is not English, demonstrated by the fact that Children's Memorial expends over $1 million in translation services annually. Children's Memorial spends a substantial amount each year to build and promote the general health of the community it serves. These community-building activities are health-related, and the amounts expended are included in the community benefits reported in Part I, line 7e. Children's Memorial engages in a broad spectrum of activities in furtherance of its mission to provide health care, research, teaching and advocacy for the promotion of children's well-being. Children's Memorial is a leader in providing necessary health care services as well as education and advocacy about important issues affecting children. Children's Memorial is a leader in pediatric research, including clinical research aimed at promoting the health and well-being of children in the community and beyond. Children's Memorial partners with many community programs intended to provide access to health-related services, health education, injury prevention and advocacy for important initiatives to improve children's health. Children's Memorial also spends significant resources toward graduate medical education, providing specialized training in pediatric specialty medicine, including specialty areas where there are severe shortages of clinicians and few graduates each year. Following are examples of some of the community-building initiatives in which Children's Memorial participates. Children's Memorial operates a primary care clinic in Chicago's Uptown neighborhood, providing needed primary care services, including check-ups, back-to-school and sports physicals, immunizations, vision and hearing screening and sick-child care by pediatric staff residents, supervised by attending physicians. Children's Memorial also has established collaborations with community resources and agencies, including Chicago Public Schools for various programs to support HIV-affected children attending school, assisting children with cochlear implants in re-entering school, and supporting children with epilepsy who attend Chicago Public Schools and suburban schools. In addition, Children's Memorial collaborates with the Division of Specialized Care for Children as a means to meet identified needs in the patients it serves. Children's Memorial is a leading member of The Consortium to Lower Obesity in Chicago Children (CLOCC) which brings together hundreds of organizations to confront childhood obesity in Chicago, by facilitating connections between researchers, public health advocates and practitioners, corporations, policymakers, children, families and communities. The Injury Prevention and Research Center (IPRC) at Children's Memorial strives to educate the public about injury prevention, improve public policy and foster protective environments for children, while coordinating all injury prevention initiatives at Children's Memorial. Children's Memorial also strives to serve children who have special health care needs and approximately 13-18 percent of children under 18 have such needs. Such children and their families often encounter uncoordinated care and other significant barriers while seeking multiple health resources. The Consortium for Children with Complex Medical Needs (of which Children's Memorial is a member along with other medical professions, government agencies and community leaders) seeks to overcome these barriers by attempting to assure a medical home for all children with special health care needs; build alliances to facilitate increased access to care and services; raise awareness through advocacy and lobbying; and assure youth with special health care needs receive transitional services needed to facilitate a productive adult life. Children's Memorial provides education on car seat safety and provides car seats to patients who do not have the means to purchase a car seat for their child. Children's Memorial also educates and advocates for prevention of childhood injuries, including injury prevention in children (particularly unintentional injuries such as prevention of falls, playground safety and button batteries), as well as has been a leader in issues related to early HIV testing for newborns. The Office of Child Advocacy at Children's Memorial emphasizes prevention and health promotion and addresses the leading causes of hospitalization and death among children, which stem from behavioral, environmental and social factors. Children's Memorial is also a leader in advocating for the prevention of violence against children and, for the past several years, has led the effort to create the Illinois Violent Death Reporting system, to create a state-wide database correlating information on violent deaths, in an effort to determine emerging patterns and develop more effective violence prevention policies and programs. The Hospital devotes significant resources to family support services which include social work, pastoral care, parent education and other family amenities to address emotional, social and spiritual needs of hospitalized children and their families. The Children's Memorial Hospital's mission is to provide pediatric health care, research, teaching and advocacy for issues related to children. Children's Memorial's governing board as well as the various advisory boards (Family Advisory Board, Kids' Advisory Board, Community Advisory Boards) are comprised of volunteers from the community who have knowledge of the community and a broad range of expertise. The Hospital provides more pediatric patient care than any other hospital in Illinois in nearly every pediatric and surgical specialty. Children's Memorial operates a 24 hour, 7 day per week pediatric emergency room, including a Level I trauma center and Level III neonatal nursery that serves as a regional referral center for the State of Illinois' Perinatal Network. The Hospital is the largest provider of Medicaid services to Illinois children, serving 50% more inpatients and outpatients than the next leading provider. The Hospital's pediatric physician specialists provide more services to children insured by the State of Illinois' AllKids insurance program (Medicaid) than any other provider. The Hospital's ability to treat the most critically ill infants is demonstrated by the fact that in calendar year 2010, 55.4% of all transports into its neonatal intensive care unit were from other Level III nurseries in the Chicago metropolitan area and the Hospital treated three times more NICU babies with medically complex problems than the next leading nursery in the metropolitan Chicago area. In fiscal year 2010, Children's Memorial served approximately 146,000 patients from the State of Illinois and elsewhere in more than 70 pediatric specialties offered by the Hospital. In keeping with its exempt purposes, surplus funds of the hospital are utilized to improve the quality of patient care, expand or improve its facilities, and advance medical training, education and research programs. Children's Memorial is currently in the process of constructing a new, modern, hospital facility located on the campus of Northwestern University's Feinberg School of Medicine, designed to continue to provide the highest quality medical care, better serve patients and families and enhance the ability to recruit high quality physician faculty to provide clinical services, conduct research and train residents and fellows. Among the key design features aimed at improving the care and privacy of our pediatric patients is private patient rooms. Further, the Kids' Advisory Board and Family Advisory Board were actively involved in making suggestions about the design of the new hospital from the perspective of patients and families and the new hospital will reflect many of their insightful recommendations. Children's Memorial also increases access to its services by operating numerous outpatient specialty clinics in various locations throughout the Chicago metropolitan area, convenient for patients and families to access the scarce, pediatric specialty and sub-specialty services that would not otherwise be immediately available. Children's Memorial also provides physician coverage through neonatologists, pediatric intensivists and pediatric hospitalists at nine other hospitals located in Chicago as well as the suburban areas. Currently, Children's Memorial provides these services to Northwestern Memorial Hospital's Prentice Women's Hospital, Central DuPage Hospital, Northwestern Lake Forest Hospital, Northwest Community Hospital, Sherman Hospital, Silver Cross Hospital, Swedish Covenant Hospital, West Suburban Medical Center, and La Rabida Children's Hospital, a specialty children's hospital in Chicago serving children with chronic medical conditions. Again, these specialized services would not otherwise be readily available. Children's Memorial is involved with numerous partnerships with community organizations and leaders to promote the health and well-being of the children it serves. Children's Memorial also serves as a leading member of the nationally recognized Consortium to Lower Obesity in Chicago Children ("CLOCC") which brings together hundreds of organizations and individuals to confront childhood obesity in Chicago. CLOCC is intended to foster and facilitate connections between researchers, public health advocates and practitioners, corporations, policymakers and children, families and communities. Children's Memorial also serves as a major academic tertiary care medical center and serves as the primary pediatric practice site for Northwestern University's Feinberg School of Medicine ("NUFSM") and provides the clinical training for NUFSM's resident physicians, fellows and medical students in pediatric specialties and sub-specialties. Each year, the Children's Memorial Department of Pediatrics trains approximately 200 physicians. Almost half are pediatric residents and the remainder are fellows in various pediatric sub-specialties including cardiology, hematology/oncology and neonatology. In addition, the Children's Memorial Department of Surgery provides formal resident education to NUFSM in each of its ten divisions and trains rotating residents from various other medical schools. Among the training opportunities for residents, supervised by attending physicians, is to provide primary care at the Uptown Clinic in Chicago, where primary care pediatric services are provided. These primary services would not otherwise be available to the patients treated at the site. In addition to training medical students, residents and fellows of McGaw and other institutions, CMH offers clinical experiences in pediatrics to nursing students and students in other allied health fields. Students in clinical placements must be candidates for a degree in their particular field of study. CMH is affiliated with 18 nursing training programs. In fiscal year 2010 there were 1,204 student placements at CMH including 268 third and fourth year medical students, 587 nursing students, and 349 allied health students studying in the fields of respiratory therapy, exercise physiology, rehabilitate services, social work, nutrition, radiology, pharmacy, child life, art therapy, and psychiatry-related studies. Students training to be operating room technicians and cardiac perfusion technicians also had clinical placements at CMH. The Hospital has an open medical staff, which is comprised of pediatricians and pediatric specialists whose practice is based at Children's Memorial Hospital as well as community-based pediatricians. As of December 31, 2009, there were 1,108 physicians on Children's Memorial Hospital medical staff. Of these physicians, 439 are employed by affiliates of the hospital. As described in detail in Question 6, Children's Memorial employs, through affiliated faculty practice plans entities, pediatric specialists and sub-specialists who provide patient care at locations in Chicago and the surrounding communities. In accordance with the mission of Children's Memorial, these physician groups provide more services to Medicaid patients than any other physician providers in Illinois. In connection with their extensive treatment of Medicaid patients, in fiscal year 2010 these physician affiliates were paid $20.7 million less than the costs of providing the services. In addition, Children's Memorial, through its affiliate, Children's Memorial Research Center ("CMRC"), performs 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. CMRC, one of a few institutions in the U.S. dedicated exclusively to pediatric research, operates, in part, in a five-story, 125,000 square foot state-of-the-art laboratory and research administration facility as well as in the hospital and the campus of Northwestern University. CMRC research encompasses basic research studies as well as those with potential clinical applications. In fiscal year 2010, there were 206 physician-scientists engaged in research and more than 370 papers related to the research activities by Children's Memorial researchers were published in peer-reviewed journals. In addition, there were over 351 funded research projects which received over $38.1 million in annual funding from external sponsors such as the National Institutes of Health. See the tax information return of CMRC, EIN #36-3357005 for additional information. The Children's Memorial Foundation ("CMF"), another affiliate of CMH, is responsible for fundraising for the hospital and its affiliated tax-exempt organizations. These philanthropic dollars support the programs in furtherance of the hospital's mission and benefit the community served, including the establishment and construction of the new hospital that is currently underway. Fundraising by CMF and CMH for fiscal year 2010 was $53.8 million from more than 47,500 donors. See the tax information return of CMF, EIN #36-3357006 for additional information. In addition, in connection with its relationship with NUFSM, CMH is a member institution of The McGaw Medical Center of Northwestern University ("McGaw"). McGaw is an Illinois not-for-profit corporation, exempt from federal income taxation pursuant to Section 501(c)(3) of the Internal Revenue Code. McGaw is a charitable and educational consortium of four independent hospitals and NU. The goal of McGaw is to facilitate education and coordinate NUFSM medical residency and fellowship programs among the member institutions: CMH, Northwestern Memorial Hospital, NUFSM and the Rehabilitation Institute of Chicago. Through McGaw, its member institutions provide training to approximately 730 residents and 270 fellows during academic year July 1, 2009-June 30, 2010. CMH serves as the primary teaching site for approximately 112 pediatric residents and 94 pediatric subspecialty fellows. In addition, trainees from the adult programs of McGaw rotate to CMH for varying lengths of time to fulfill the pediatric component of their training program. IL true The Children's Memorial Research Center 2300 Childrens Plaza Chicago IL 60614 363357005 501(C)(3) 8784916 Net asset transfer The Children's Memorial Medical Center 2300 Childrens Plaza Chicago IL 60614 363357004 501(c)(3) 569674 Net Asset Transfer Pediatric Faculty Foundation Inc 2300 Childrens Plaza Chicago IL 60614 363279680 501(c)(3) 7083921 NET ASSET TRANSFER The Children's Memorial Medical Center 2300 Childrens Plaza Chicago IL 60614 363357004 501(c)(3) 1521641 NET ASSET TRANSFER The Children's Memorial Research Center 2300 Childrens Plaza Chicago IL 60614 363357005 501(c)(3) 2487659 FUNDS RELEASED FROM RESTRICTION Pediatric Faculty Foundation Inc 2300 Childrens Plaza Chicago IL 60614 363279680 501(c)(3) 3219807 Funds released from restriction The Children's Memorial Medical Center 2300 Childrens Plaza Chicago IL 60614 363357004 501(c)(3) 462306 Funds released from restriction Children's Surgical Foundation 2300 Childrens Plaza Chicago IL 60614 363283051 501(c)(3) 1142776 3 0 Form 990, Schedule I, Line 2 Description of Organization's Procedures for Monitoring the Use of Grants We review all grant funds on a monthly basis. Financial reports are generated monthly and distributed electronically to all fund directors and the Office of Sponsored Projects (OSP) for review. Expenditures are reviewed for appropriateness and against budgetary guidelines by the Finance Office (Fund Accounting). OSP and Fund Accounting work with the investigators to monitor their activity and make sure they are in compliance with the terms of the award. X true true X X X X false true false false false false false true false James Donaldson MD 0 428936 0 82425 0 2007 0 127265 0 20636 0 661269 0 0 Thomas P Green MD 0 464151 0 151314 0 792 0 24500 0 28371 0 669128 0 0 Mary JC Hendrix PhD 0 455680 0 92110 0 516 0 24500 0 18309 0 591115 0 0 Patrick M Magoon 651796 0 410470 0 86012 0 355321 0 14987 0 1518586 0 137833 0 H William Schnaper MD 0 250086 0 37650 0 516 0 24500 0 22725 0 335477 0 0 Gordon B Bass 388145 0 178074 0 27770 0 181798 0 17656 0 793443 0 0 0 Barbara B Bowman 223722 0 87797 0 382408 0 4736 0 14760 0 713423 0 291554 0 Susan H Gordon 201858 0 66691 0 10408 0 58817 0 21530 0 359305 0 0 0 Monica Heenan 189242 0 61653 0 393 0 16357 0 13319 0 280964 0 0 0 Bruce Komiske 324042 0 120492 0 14028 0 19576 0 9406 0 487544 0 0 0 Stanley B Krok 249580 0 82238 0 24329 0 91243 0 18446 0 465836 0 0 0 Maureen T Mahoney 178214 0 57602 0 12291 0 16304 0 11922 0 276333 0 0 0 Maureen Murphy 254283 0 82380 0 13152 0 48648 0 9459 0 407922 0 0 0 Paula M Noble 342210 0 166349 0 14078 0 154718 0 14506 0 691860 0 0 0 Edward Ogata MD 416709 0 170225 0 41497 0 405198 0 24688 0 1058317 0 0 0 Michelle M Stephenson 226144 0 88938 0 8897 0 60398 0 19708 0 404085 0 0 0 Donna S Wetzler 257445 0 125735 0 1096 0 133090 0 14810 0 532176 0 0 0 Sherwood D Zellermayer 184275 0 59994 0 1090 0 18247 0 13141 0 276747 0 0 0 Thomas Sullivan 337621 0 112869 0 942194 0 26253 0 24588 0 1443525 0 669098 0 Ron H Blaustein 185644 0 38125 0 187 0 14014 0 21025 0 258995 0 0 0 Nancy M Borders 202055 0 17938 0 457 0 16558 0 21503 0 258511 0 0 0 Morley I Kerschner 191511 0 23642 0 18895 0 14775 0 16363 0 265186 0 0 0 Robert D Mckenna 179280 0 22889 0 8683 0 12173 0 16364 0 239389 0 0 0 Edward T Schubnell 177325 0 26018 0 15319 0 21524 0 9963 0 250148 0 0 0 Elizabeth Perlman MD 0 367830 0 55458 0 34627 0 77245 0 15293 0 550453 0 0 Supplemental Compensation Information Schedule J, part I, Question 1a The organization provides membership in a club and a professional organization used by Patrick Magoon, CMH/CMMC Chief Executive Officer, for business purposes. Such membership is treated by the organization as a working-condition fringe benefit and is, therefore, excluded from the individual's taxable income. The organization provides membership in a professional organization used by Edward Ogata, M.D., Chief Medical Officer, for business purposes. Such membership is treated by the organization as a working-condition fringe benefit and is, therefore, excluded from the individual's income. The organization provides membership in a club used by Thomas Sullivan, President of the Children's Memorial Foundation, for business purposes. Such membership is treated by the organization as a working-condition fringe benefit and is, therefore, excluded from the individual's income. Supplemental Compensation Information Schedule J, part I, Line 3 Pursuant to the bylaws of the Children's Memorial Medical center ("CMMC"), the Governance Committee of CMMC is charged to review and approve senior executive compensation for CMMC and its affiliates. 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/Chief Executive Officer 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 sources (specified on Schedule J), 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 provided. 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. SUPPLEMENTAL COMPENSATION INFORMATION SCHEDULE J, PART I, QUESTION 4b The following listed individuals participated in the organization's supplemental executive retirement plan ("SERP") and earned unvested benefits during 2009, which are reported in Column (C): Gordon B. Bass $156,865 James Donaldson $98,732 Susan H. Gordon $38,637 Stanley B. Krok $67,946 Patrick Magoon $322,280 Maureen Murphy $25,031 Paula M. Noble $129,159 Edward Ogata, M.D. $379,048 Michelle M. Stephenson $39,827 Donna Wetzler $112,184 Elizabeth Perlman, MD $54,141 Benefits earned 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 the employee's years of service to the organization, and the cost of the benefits will vary from year to year based on interest rates, age, and many other factors. The amounts are at risk and will not be paid unless and until the employee has provided substantial future services to the organization. Benefits under the SERP vest at age 62, and are forfeited if the employee leaves the organization voluntarily before age 62 (except upon the sole discretion of the Board, and only if the participant has reached at least age 55 with at least 10 years of service). Participants who voluntarily leave the organization before age 55 forfeit their entire SERP benefit upon termination. Also included in Schedule J, Part II, Column (C) is the estimated value of amounts contributed to a qualified pension plan and the section 403(b) matching contributions. Also in response to question 4b, the following listed individuals became vested in supplemental retirement benefits under the SERP, and therefore had SERP benefits included in their taxable income: Thomas Sullivan, $898,309; and Barbara Bowman, $380,988. In each case, the vested and taxable amount represents the value of benefits earned over many years of service to the organization, and which became vested and taxable in 2009. These benefits were subject to a substantial risk of forfeiture before 2009. Of the amounts reported on the 990, the amounts already reported on Forms 990 in prior years were $669,098 for Mr. Sullivan and $291,554 for Ms. Bowman, and these amounts are reported in Schedule J-1, column (F). The Governance Committee of the organization's Board of Directors annually reviews all forms of executive compensation and benefits, including all reported vested and nonvested SERP benefits, and has concluded, as the result of a process that is designed to qualify for the rebuttable presumption of reasonableness, that total compensation and the benefits provided are reasonable. 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 Medical Center, and The Children's Memorial Hospital. Due to the CEO's unique role in setting and driving the long term strategic mission and operational performance of the entire organization, the Governance Committee of the Children's Memorial Hospital and The Children's Memorial Medical Center has established a long term incentive Program ("LTI") under which the CEO, Patrick Magoon, is the sole participant. Mr. Magoon is eligible to earn additional compensation for achievement of very challenging, long term goals that are established in advance by the Governance Committee. The LTI also serves as a retention vehicle since amounts earned are vested on a rolling basis over a multi-year period. During the reporting year and included in schedule J, Part II, column B (ii), is $139,334 of LTI paid to the CEO. of this amount, $137,833 was previously reported as deferred compensation. 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. ILLNOIS FINANCE AUTHORITY 861091967 45200FGC7 2008-05-15 377043130 SEE SCHEDULE O false false ILLINOIS FINANCE AUTHORITY 861091967 45200FGR4 2008-05-15 173490000 SEE SCHEDULE O false false 383696314 14552252 0 3350315 9424756 0 356367396 false false false true 173514604 0 0 0 641965 0 0 2006 true false true true false false true true true 0.00000 0.00000 0.00000 true false false true true true true false false false false false false false true false false false true See Schedule O X 39 1772271 MARKET false true true Third parties hired to process noncash contributions Schedule M, Part I, line 32b All securities (non-cash donations) are sent directly to Northern Trust. Northern Trust as Custodian and broker sells the securities immediately. For donor recognition purposes, gifts are valued at the median prices on the day the securities are received. For accounting purposes, values are reconciled for any gain/loss on the sale of securities. ORGANIZATION'S MISSION FORM 990, PART III, LINE 1 WE ARE DEDICATED TO THE HEALTH AND WELL-BEING OF ALL CHILDREN. AS THE PEDIATRIC TEACHING FACILITY FOR NORTHWESTERN UNIVERSITY'S FEINBERG SCHOOL OF MEDICINE, THIS COMMITMENT DRIVES US TO BE A LEADER IN: - PEDIATRIC HEALTH CARE DELIVERY - RESEARCH INTO THE PREVENTION, CAUSES AND TREATMENT OF DISEASES THAT AFFECT CHILDREN - EDUCATION FOR PHYSICIANS, NURSES AND ALLIED HEALTH PROFESSIONALS - ADVOCACY FOR CHILDREN AS A CHARITABLE ORGANIZATION, WE SERVE CHILDREN AND THEIR FAMILIES TO THE BEST OF OUR ABILITIES AND TO THE LIMITS OF OUR RESOURCES. PROGRAM SERVICE ACCOMPLISHMENTS FORM 990, PART III, LINE 4 The Children's Memorial Hospital ("Hospital") in Chicago, Illinois owns and operates the only full-service, independent, freestanding pediatric hospital in Illinois. This not-for-profit, tertiary care hospital, founded in 1882, provides patient care 24 hours per day, 7 days per week. The Hospital has 270 licensed beds and provides a full range of inpatient and outpatient care and related ancillary services. The Hospital provides more care than any other hospital provider in Illinois in nearly every pediatric medical and surgical specialty. As a major academic tertiary care medical center, the Hospital has served patients from every county in Illinois, as well as patients from every state and 36 countries. The Hospital is a designated Level I pediatric trauma center for the City of Chicago, with a Level III neonatal nursery that serves as a regional referral center in the State of Illinois Perinatal Network. The Hospital's ability to treat the most critically ill infants in its neonatal intensive care unit ("NICU") is demonstrated by statistics for calendar year 2010 which show that 55.4% of all transports into its NICU were from other Level III nurseries in metropolitan Chicago and the Hospital treated three times more NICU babies with complex problems than the next leading hospital in metropolitan Chicago. The Hospital has also been ranked among the best in the nation in a U.S. News & World Report opinion-based survey of top pediatric hospitals for the past three years. The Hospital is the home to the world's first pediatric center for Autonomic Medicine and was the first pediatric hospital in Illinois to perform the Berlin Heart procedure, a breakthrough technology that helps children awaiting heart transplants. In the fiscal year ending August 31, 2010, the Hospital, through nearly 531,000 patient visits, served more than 146,000 children who came from all over the State of Illinois and beyond to access the more than 70 specialties offered by the Hospital. During this period there were 12,835 inpatient admissions. In addition, there were over 524,950 outpatient visits, including 293,263 outpatient visits at the Lincoln Park campus, 150,581 outpatient visits at satellite facilities, 97,359 emergency room visits and 5,496 observation visits in Lincoln Park and our satellite facilities. There were also 20,342 surgical procedures performed in our Lincoln Park and satellite facilities. The Hospital is the largest provider of Medicaid services to Illinois children. In total, during the State of Illinois' fiscal year 2010, the Hospital provided approximately 50% more outpatient and inpatient Medicaid services than the next highest Illinois hospital. The Hospital's pediatric-specialist physicians provide more specialty care to children insured by the State of Illinois' All Kids (Medicaid) program than any other specialty care provider. The Hospital maintains a charity care policy under which it provides healthcare services free of charge or at a greatly reduced rate to children whose families are unable to pay for the charges associated with their medical care. For the fiscal year ended August 31, 2010, the total unreimbursed care and community benefit provided by the Hospital and its affiliates was approximately $100 million, including $60.1 million in costs associated with unreimbursed services provided by the Hospital and its affiliated physician groups to children on Medicaid and $39.8 million for charity care and other community benefit including, but not limited to, resident and fellow expenses ($14.9 million), research funding ($8.5 million), operation of a community clinic support ($2.8 million), child advocacy programs ($786 thousand) and the provision of language assistance, pastoral care, social work, art and music therapies, hospital volunteer services, transplant family housing and other family support services ($6.9 million). The Hospital undertakes a broad range of services and activities in addition to patient care that support its charitable mission. The Hospital functions as a teaching and research institution whose efforts have contributed considerably to improvements in the quality of life and healthcare for children. The Hospital supports community medical needs through a variety of outreach programs and educational programs. In December 2001, the Hospital became the first pediatric hospital in the nation and the first hospital in Illinois to receive the Magnet Award from the American Nurses Credentialing Center. The Hospital was awarded this designation again in November 2005. Only 6% of the nation's hospitals currently hold this distinction. The Hospital is one of the major pediatric teaching hospitals in the U.S., serving as the pediatric teaching facility and the primary pediatric practice site of Northwestern University's Feinberg School of Medicine ("NUFSM") for resident physicians, fellows and medical students in pediatric specialties and sub-specialties. This program is consistently one of the most sought after in the country. In fiscal year 2010, over 1,000 individuals applied for the 31 available positions. Including the NUFSM pediatric residents and fellows, the Hospital has 112 residents and 94 fellows in various training programs. The Hospital also offers clinical experiences in pediatrics to medical students, nursing students, and students in other allied health fields. The Hospital is affiliated with 18 nursing education programs. In fiscal year 2010, there were 1,204 student placements, including 268 third and fourth year medical students, 587 nursing students, and 349 allied health students. . The Hospital is undertaking the development, construction and equipping of a new, 288-licensed bed, acute care, pediatric hospital to replace its existing hospital facilities which will be named the "Ann & Robert H. Lurie Children's Hospital of Chicago." This new facility, in close proximity to NUFSM, will facilitate the Hospital's ability to continue to build upon its academic and research ties in a family-centered environment and state-of-the-art pediatric care facility that will foster the provision of compassionate care. The Hospital's role as a regional referral center for a variety of pediatric diseases and illnesses has created many research opportunities to study and treat them and the Hospital's research arm, Children's Memorial Research Center, is one of the nation's few centers dedicated solely to pediatric research. See the tax information return of the Hospital's affiliate, Children's Memorial Research Center [36-3357005]. Alone, or in conjunction with other community partners, the Hospital provides programs to support the health and well-being of children in our local community and beyond involving patient care and prevention; research; education and advocacy. Much of the Hospital's community work is in schools, particularly for children with special health and learning needs and the capacities of school personnel serving them. In the past 15 years, the Hospital has served more than 15,000 children and faculty of the Chicago Public Schools to enhance the health and safety programs and accommodations of chronically ill children. Programs address specific conditions such as epilepsy, ADHD, HIV infection, and impaired hearing. Other programs educate personnel about advanced medical technologies and aiding children transitioning from the hospital setting back to school. Other community health activities include a partnership by Hospital hematologists with the American Red Cross Blood Services to launch a cooperative sickle cell blood donor program to increase the number of blood donations by African Americans to help children with sickle cell disease who require frequent blood transfusions. The Hospital is a driving member of the Consortium to Lower Obesity in Chicago Children (CLOCC) to confront childhood obesity in Chicago. CLOCC is currently working with the City of Chicago to promote healthy eating and physical activity and is also piloting programs in Englewood, Humboldt Park, Lower West Side, Rogers Park, West Garfield Park, and West Town neighborhoods in Chicago. The Hospital operates an Injury Prevention and Research Center to educate and to improve public policy and foster protective environments, in addition to coordinating injury prevention initiatives at the Hospital. The Hospital also has developed programs to teach children sports injury prevention. The Hospital's Consortium for Children with Complex Medical Needs seeks to assist children with special health care needs to overcome barriers in obtaining care by assuring a medical home, building alliances to facilitate increased access to care and services, raising awareness; and helping those children to obtain the services needed to transition to adulthood. The Hospital offers a summer internship for Latino high school students to introduce them to promising career opportunities and a mentoring program for high school students that promotes participation in community service and literacy. The Hospital also educates in child maltreatment awareness and child abuse prevention, lead poisoning detection, and automobile safety programs and has developed fitness programs for special needs children. Family and business relationships FORM 990, PART VI, QUESTION 2 -Gregory Case has a business relationship wtih Andrew McKenna. -William J. Devers, Jr. has a business relationship with Andrew McKenna. -Adam Kriger has a business relationship with Andrew McKenna. -Lester Crown and Paula Crown have a family and business relationship. -Edward Ogata has a business relationship with Jack McGinley. -William McKenna has a family and business relationship with Andrew McKenna. -Lyle Logan has a business relationship with Charles H. James III. -Michelle Collins has a business relationship with Fred Krehbiel. -John M. Crocker, Jr. had a business relationship with Bert A. Getz, Jr. -Eric Lefkofsky has a business relationship with Linda S. Wolf. -Edward J. Wehmer, Charles H. James III and Bert A. Getz, Jr. have a business relationship. 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 ALL 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 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 11A A PUBLIC DISCLOSURE COPY OF THE ORGANIZATION'S FISCAL YEAR 2010 TAX RETURN ("FORM 990")WAS PROVIDED TO EACH MEMBER OF THE ORGANIZATION'S AUDIT COMMITTEE (OF THE BOARD) BEFORE A REGULARLY SCHEDULED AUDIT COMMITTEE MEETING AND BEFORE THE FORM 990 WAS FILED. THE AUDIT COMMITTEE IS THE COMMITTEE OF THE ORGANIZATION CHARGED WITH OVERSIGHT OF AUDIT AND TAX MATTERS. THE AUDIT COMMITTEE WAS PROVIDED A DETAILED OVERVIEW 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") PROVIDES A COMPREHENSIVE QUESTIONNAIRE TO ITS BOARD MEMBERS, SENIOR MANAGEMENT AND PURCHASING PERSONNEL POSING QUESTIONS ABOUT 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 organization's board of directors pursuant to its bylaws has delegated the authority to review and approve executive compensation to The governance committee of the 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/chief executive officer 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 (specified on schedule j), 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 provided. 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. AVG. HOURS WORKED FOR RELATED ORGANIZATIONS FORM 990, PART VII, SECTION A, LINE 1A 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 WEEK IS SPENT PROVIDING SERVICES TO CMH AFFILIATES: PATRICK M. MAGOON PAULA M. NOBLE EDWARD OGATA, MD THOMAS SULLIVAN DONNA WETZLER SHERWOOD D. ZELLERMAYER THE FOLLOWING INDIVIDUALS ARE EMPLOYEES OF THE CHILDREN'S MEMORIAL MEDICAL CENTER (CMMC) AND GENERALLY WORK 40 HOURS PER WEEK. APPROXIMATELY 10 HOURS OF THEIR REGULAR WORK WEEK IS SPENT PROVIDING SERVICES TO RELATED AFFILIATES: ELIZABETH PERLMAN, MD JAMES DONALDSON, MD CONSOLIDATED FINANCIAL STATEMENTS FORM 990, PART XI, QUESTION 2 AND PART IV, QUESTION 12 THE CHILDREN'S MEMORIAL MEDICAL CENTER, MAINTAINS AN AUDIT COMMITTEE THAT IS RESPONSIBLE FOR OVERSEEING THE AUDIT OF THE FINANCIAL STATEMENTS, THE SELECTION OF THE INDEPENDENT AUDITORS, AND THE PROCESS FOR PREPARING THE FORM 990. TAX-EXEMPT BONDS DESCRIPTION OF PURPOSE FORM 990 SCHEDULE K PART I BOND 1: ILLINOIS FINANCE AUTHORITY REVENUE BONDS, SERIES 2008 A/B, THE CHILDREN'S MEMORIAL HOSPITAL (BORROWER) THE PROCEEDS OF THE SALE OF THE SERIES 2008A/B BONDS WILL BE USED TO (I) PAY OR REIMBURSE THE BORROWER FOR THE PAYMENT OF A PORTION OF THE COSTS OF ACQUIRING, CONSTRUCTING AND EQUIPPING THE ANN & ROBERT H. LURIE CHILDREN'S HOSPITAL OF CHICAGO ("LURIE CHILDREN'S"), (II) PAY A PORTION OF THE INTEREST ON THE SERIES 2008A/B BONDS DURING THE PERIOD OF CONSTRUCTION OF LURIE CHILDREN'S, (III) FUND A DEBT SERVICE RESERVE FUND FOR THE SERIES 2008B BONDS, AND (IV) PAY CERTAIN EXPENSES INCURRED IN CONNECTION WITH THE ISSUANCE OF THE SERIES 2008A/B BONDS. BOND 2: ILLINOIS FINANCE AUTHORITY VARIABLE RATE DEMAND REVENUE BONDS, SERIES 2008 C/D, THE CHILDREN'S MEMORIAL HOSPITAL (BORROWER). THE BORROWER UTILIZED THE PROCEEDS OF THE SERIES 2008C/D BONDS TO (I) REFUND THE OUTSTANDING PRINCIPAL AMOUNT OF THE SERIES 1999 B-1 BONDS (ISSUED: 9/1/99), 1999 B-2 BONDS (ISSUED: 9/1/99), 2003A BONDS (ISSUED: 11/18/03), 2003 B BONDS (ISSUED: 11/18/03) AND 2004 BONDS (ISSUED: 4/14/04) AND, (II) PAY CERTAIN EXPENSES INCURRED IN CONNECTION WITH THE ISSUANCE OF THE SERIES 2008C/D BONDS. PART II, LINE 5/ISSUANCE COSTS OF $708,103 INCLUDES $52,764 OF CREDIT ENHANCEMENTS. Issuance Cost From Proceeds Schedule K, Part II, Line 5 Reported on Schedule K Part II Line 5 Columns A and B are cumulative amounts of proceeds used to pay fees for credit enhancement that are taken into account in determining the yield on the bond issue for purposes of IRC Sec. 148(h). Specifically, the total Column A, Line 5 issuance costs of $9,424,756 includes $6,305,197 for bond insurance. In addition the total Colum B Line 5 issuance cost of $641,965 includes $52,764 related to letter of credit fees. Business Transactions with Interested Persons Schedule L, Part IV Name: Greg Case Relationship: Director Amount of Transaction: $244,500 Description of Transaction: CMH purchases insurance brokerage services from the company of which Mr. Case serves as the President/CEO. Name: Lester Crown Relationship: Director Amount of Transaction: $1,613,997 Description of Transaction: CMH purchases financial services from the bank of which Mr. Crown's son serves as a director. Name: Paula Crown Relationship: Director Amount of Transaction: $1,613,997 Description of Transaction: CMH purchases financial services from the bank of which Ms. Crown's spouse serves as a director. Name: Charles W. Douglas Relationship: Director Amount of Transaction: $614,391 Description of Transaction: CMH purchases legal services from the law firm of which Mr. Douglas is a partner and chairman of the management committee. Name: David W. Fox Jr. Relationship: Director Amount of Transaction: $1,613,997 Description of Transaction: CMH purchases financial services from the bank of which Mr. Fox is the Vice Chairman. Name: Andrew J. McKenna Relationship: Director Amount of Transaction: $244,500 Description of Transaction: CMH purchases insurance brokerage services from the company of which Mr. McKenna serves as a Director. Name: Edward Ogata, MD Relationship: Officer/Director Amount of Transaction: $45,874 Description of Transaction: CMH employs the son-in-law of Dr. Ogata. Name: Brian Williams Relationship: Director Amount of Transaction: $261,561 Description of Transaction: CMH purchases advertising services from the company for which Mr. Williams serves as President and CEO. 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 Pediatric Faculty Foundation Inc 2300 Childrens Plaza Chicago IL 60614 363279680 HLTH CRE/RSCH IL 501(c)(3) 11 III-FI CMMC CMH Self Insurance Foundation 2300 Childrens Plaza Chicago IL 60614 366638400 INSURANCE IL 501(c)(3) 11 III-FI CMMC McGaw Medical Ctr of Northwestern Univ 362656113 Supportng Org IL 501(c)(3) 11 iii-FI NA CMMC Insurance Co LTD 2300 Childrens Plaza CHICAGO IL 60614 000000000 SELF INSURANCE CJ NA CORPORATION false true true false false false false false true false false false false false true true false false Pediatric Faculty Foundation I 1622696 Children's Memorial Foundation c 7747247 Children's Memorial Medical Center b 2553621 The Children's Memorial Research Center b 11272575 Pediatric Faculty Foundation Inc b 10303728 CMH Self Insurance Foundation o 13448000 Pediatric Faculty Foundation Inc p 21279747 Children's Memorial Foundation p 14949629 Children's Memorial Medical Center p 5993671 The Children's Memorial Research Center p 11102430 CMH Self Insurance Foundation p 13000000