2020-05-12T11:52:44-05:00 2019-06-30 KPMG LLP 8350 Broad Street Suite 900 McLean VA 22102 990 2018-07-01 541278830 CHILDREN'S HEALTH SYSTEM INC % DENNIS RYAN CHIL 7576687000 601 CHILDRENS LANE NORFOLK VA 23507 DENNIS RYAN CFO/ASST TREAS/SECR 7576687000 2020-05-05 true JG WHITE P01498698 7032868000 2020-05-04 199.206.0.5 54028020201335000006 2020-05-12 P 384AA35518602C976B95E94F198FAF3422839F17 EB2737A96B8F377BD085BED9F3BA68158C374A96 2018 2020-09-23 17:36:50Z JAMES DAHLING 601 CHILDRENS LANE NORFOLK VA 23507 48038819 false X www.chkd.org X 1984 VA Children's Health System is a multi- specialty health system serving southeastern virginia and northeastern north carolina. SEE SCHEDULE O. 21 18 44 21 0 0 6400000 16397346 15096978 15931019 -2962562 711334 2397811 -1600062 20932227 31439637 1500000 1700000 0 0 9838152 10904664 0 1100 631055 17204690 18260089 28542842 30865853 -7610615 573784 140853119 135897636 85102608 89864790 55750511 46032846 X CHILDREN'S HEALTH SYSTEM IS A PEDIATRIC HEALTHCARE SYSTEM DEDICATED TO THE HEALTH AND WELLBEING OF CHILDREN AND YOUNG ADULTS FROM SOUTHEASTERN VIRGINIA, VIRGINIA'S EASTERN SHORE AND NORTHEASTERN NORTH CAROLINA. THROUGH ITS OVERSIGHT AND MANAGEMENT OF CHILDREN'S HOSPITAL OF THE KING'S DAUGHTERS, CHILDREN'S MEDICAL GROUP, CHILDREN'S SURGICAL SPECIALTY GROUP AND CHILDREN'S HEALTH FOUNDATION, THE HEALTH SYSTEM MEETS THE VARIED MEDICAL NEEDS OF MORE THAN 400,000 INFANTS, CHILDREN, TEENS AND YOUNG ADULTS. false false 20879040 1700000 18053360 THE HEALTH SYSTEM PROVIDED LONG RANGE PLANNING, MANAGEMENT AND SUPPORT SERVICES FOR ITS SUBSIDIARIES IN FURTHERANCE OF THEIR MISSIONS. 327 Continuing medical education programs for community physicians and support services for its subsidiary corporations in the furtherance of their missions. 20879367 true true false true false false false false false false true false false true true true false true false false false false false false false false false true false true true false false false false false false false false false false true false false false true true true true false false true 47 0 true 44 true false false false false false false false false false false false false X 21 18 false false true false true true true true true false false true true true true true true true true false NC VA X DENNIS RYAN 7576687000 601 CHILDRENS LANE NORFOLK VA 23507 X James D Dahling President/Director 41.0 2.0 X X 1090215 0 905408 Edward A Heidt Jr Chairman/Director 2.0 2.0 X X 0 0 0 Buffy Barefoot Vice Chairman/Director 2.0 2.0 X X 0 0 0 Karen Priest Treasurer/Director 2.0 2.0 X X 0 0 0 F Blair Wimbush Secretary/Director 2.0 2.0 X X 0 0 0 Akhil Jain Director 1.0 1.0 X 0 0 0 Brian K Skinner Director 1.0 1.0 X 0 0 0 Christine Neikirk Director 1.0 1.0 X 0 0 0 Douglas D Ellis Sr Director 1.0 1.0 X 0 0 0 Elly Bradshaw Smith Director 1.0 1.0 X 0 0 0 J Christopher Perry Director 1.0 1.0 X 0 0 0 John R Lawson II Director 1.0 1.0 X 0 0 0 Julia Childress Beck Director 1.0 1.0 X 0 0 0 Kathryn M Van Buren Director 1.0 1.0 X 0 0 0 Kim Georges Director 1.0 1.0 X 0 0 0 Marta Satin-Smith Director 1.0 1.0 X 0 0 0 Michelle Brenner MD Director 1.0 41.0 X 0 240278 27548 Miles Leon Director 1.0 1.0 X 0 0 0 R Justin Fulton Director 1.0 1.0 X 0 0 0 Robert Obermeyer MD Director 1.0 41.0 X 0 652325 36668 Susan R Einhorn Director 1.0 1.0 X 0 0 0 Svinder S Toor MD Director 1.0 1.0 X 0 0 0 Martha Colen Director 1.0 1.0 X 0 0 0 Edward Whitmore Director 1.0 1.0 X 0 0 0 Dennis Ryan CFO/Asst Treas/Assist Secr 41.0 2.0 X 548618 0 611656 Tamika Harris VP Facilities & Support Serv 0.0 40.0 X 0 222865 67450 Sherri Matson VP General Counsel 40.0 0.0 X 424995 0 483879 Amy Sampson VP Public Relations/Mkting 40.0 0.0 X 325359 0 157648 John Harding Chief Operating Officer 40.0 0.0 X 571027 0 235163 Stephanie Calliott Senior VP Community Relations 40.0 0.0 X 457801 0 114864 Deborah Barnes VP - IS Operations 40.0 0.0 X 376596 0 225761 Kathryn Abshire VP Finance 40.0 0.0 X 260231 0 118189 Gregory Jones Director-Contract Development 40.0 0.0 X 169326 0 31129 4224168 1115468 3015363 15 false true false SYR INC 795 MONTICELLO AVE NORFOLK VA 236010337 MGMT & WF FEE 7695852 DAVIS COMPANY 1705 BALTIC AVE VIRGINIA BEACH VA 23455 ADVERTISING 995767 KPMG LLP PO BOX 120522 DALLAS TX 75312 ACCOUNTING 424583 TROUTMAN SANDERS LLP PO BOX 933652 ATLANTA GA 31193 LEGAL 344171 MORGAN LEWIS AND BOCKIUS LLP PO BOX 8500 PHILADELPHIA PA 19178 LEGAL 332736 18 16397346 16397346 MANAGEMENT FEES FROM SUBSIDIARIES 900099 15931019 15931019 15931019 739864 739864 0 0 2944985 2346784 598201 0 598201 598201 2594331 9299 2632091 69 -37760 9230 -28530 -28530 0 0 0 0 0 0 13205201 11620238 1584963 1584963 GAIN/LOSS ON UNCONSOLIDATED SUBSIDIARY 900099 -4320604 -4320604 MISCELLANEOUS 990009 537378 537378 -3783226 31439637 18053360 -3011069 1700000 1700000 0 0 0 5088091 374909 4713182 0 2220796 300364 1656376 264056 2796339 1153178 1482624 160537 522724 340144 159380 23200 276714 180063 87762 8889 0 1217921 204832 1013089 363574 362494 1080 311803 311803 1100 1100 0 759258 555956 203302 1811464 1811464 232152 214023 3615 14514 81406 81406 0 157148 153818 3330 48348 30482 17820 46 0 51856 45191 6665 1249095 1249095 10600000 10600000 28443 28443 876835 789931 86904 Supplies 40507 21990 18517 Purchased services 18194 18194 Equip rental and maintenance 13483 2037 11446 OTHER EXPENSES 398602 349550 10536 38516 30865853 20879367 9355431 631055 16677547 15706777 0 0 0 0 0 0 0 0 0 0 0 0 16676 20081 461544 511087 56853643 5003129 53779170 51850514 15236721 17227167 0 0 0 0 0 0 54681461 50582010 140853119 135897636 2763827 13084265 0 0 0 0 50066513 49213113 0 0 0 0 0 0 0 0 32272268 27567412 85102608 89864790 X 55750511 46032846 0 0 0 0 55750511 46032846 140853119 135897636 X 573784 -34262 479433 -10736620 X false true X true true true X X 1 CHILDREN'S HOSPITAL OF THE KING'S DAUGHTERS INC 540506321 3 true 1700000 0 1 1700000 true false false false false false false false false false false false false false false true Part I, Line 12g, Column (vi) THE EXPENSES INCURRED BY CHILDREN'S HEALTH SYSTEM, INC. THAT ARE REPORTED ON FORM 990, PART IX WERE EXPENDED TO PROVIDE SUPPORT AND MANAGEMENT TO ITS SUPPORTED ORGANIZATION. RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED true true false false false false true 84285 false false 84285 false Part II-B CHILDREN'S HEALTH SYSTEM (CHS) TAKES THE WELFARE OF THE CHILDREN THAT ARE CARED FOR WITHIN THE CHS FAMILY AS A PRIORITY. AS SUCH, THERE ARE MANY LEGISLATIVE ISSUES THAT OUR STATE AND FEDERAL GOVERNMENTS HANDLE THAT COULD AFFECT CHS. CHS RELIES ON VOLUNTEERS FROM THE NORFOLK CITY UNION OF THE KING'S DAUGHTERS, INC. (NCUKD) TO ASSIST IN LETTER-WRITING, EXERCISING THE PERSONAL RIGHTS TO VOTE AND IN SPREADING EDUCATION ON LEGISLATIVE ISSUES AFFECTING THE ORGANIZATION. ADDITIONALLY, CHS HAS PAID STAFF AND MANAGEMENT ALONG WITH MEMBERSHIP IN HEALTHCARE ASSOCIATIONS AND RETENTION OF PROFESSIONAL LOBBYING FIRMS THAT WORK ON LOBBYING ISSUES AND HAVE DIRECT CONTACT WITH LEGISLATORS, GOVERNMENT OFFICIALS AND OTHER MEMBERS OF LEGISLATIVE INFLUENCE. ISSUES THAT ARE ADDRESSED INCLUDE DISPROPORTIONATE SHARE HOSPITAL FUNDING, BECAUSE A HIGH PERCENTAGE OF PATIENTS CARED FOR IN THE CHS FAMILY ARE COVERED BY MEDICAID, CHILDREN'S HOSPITALS GRADUATE MEDICAL EDUCATION BUDGET AND FUNDING, CHILDREN'S HEALTH INSURANCE PROGRAM EXTENSION, TRICARE FUNDING FOR CHILDREN'S HEALTH ISSUES, MEDICAID REFORM PROPOSALS, LEGISLATIVE PROPOSAL REGARDING MEDICALLY COMPLEX CARE OF CHILDREN, CHILDREN'S ADVOCACY CENTER PROGRAMS, MEDICAL EDUCATION, DEFENSE HEALTH AGENCY FUNDING, AND STRONGER CHILD ABUSE PREVENTION AND TREATMENT ACT (CAPTA) REAUTHORIZATION. false 19662039 19662039 34146957 4028653 30118304 264991 203431 61560 1514931 771045 743886 1264725 1264725 51850514 INVESTMENT IN SUBSIDIARIES 36897015 457B/TOPHAT INVESTMENT 7679743 INSURANCE RECOVERABLE 3617958 INTERCOMPANY RECEIVABLE 1957779 CSV OF LIFE INSURANCE 337104 ACCOUNTS RECEIVABLE MISC 92409 INVESTMENT IN JOINT VENTURE 2 50582010 0 SERP (ACCRUED BENEFIT) 12081939 457B/TOPHAT LIAB 7679743 IBNE INSURANCE CLAIMS 3617958 DERIVATIVE INSTRUMENTS 2842307 EXEC CAP APPREC ACCT (CAA) 829306 ACCRUED TAIL COVERAGE 490109 INTERCOMPANY LIABILITIES 26050 27567412 X ASC 740 FOOTNOTE FROM CONSOLIDATED AUDIT REPORT Part X Line 2 CHS RECOGNIZES ANY BENEFITS FROM AN UNCERTAIN TAX POSITION 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. IF APPLICABLE, THE TAX BENEFITS RECOGNIZED IN THE CONSOLIDATED FINANCIAL STATEMENTS FROM SUCH A POSITION WOULD BE MEASURED BASED ON THE LARGEST BENEFIT THAT HAS A GREATER THAN 50% LIKELIHOOD OF BEING REALIZED UPON ULTIMATE RESOLUTION. CHS DOES NOT BELIEVE ITS CONSOLIDATED FINANCIAL STATEMENTS INCLUDE ANY UNCERTAIN TAX POSITIONS. true CHILDREN'S HOSPITAL OF THE KING'S DAUGHTERS 601 CHILDRENS LANE NORFOLK VA 23507 540506321 501(C)(3) 1700000 SUPPORT MISSION 1 SCHEDULE I, PART II CHILDREN'S HEALTH SYSTEM, INC. DID NOT PROVIDE GRANTS TO THIRD PARTIES DURING THE TAX YEAR. THE AMOUNTS LISTED ON PART II ARE CONTRIBUTIONS TO THE ORGANIZATIONS LISTED. X true true X X X X true true false false false false false true false James D Dahling President/Director 985718 0 0 104497 0 853793 0 51615 0 1995623 0 82878 0 Michelle Brenner MD Director 239960 0 318 0 9863 0 17685 0 267826 0 0 Robert Obermeyer MD Director 634768 17259 298 0 11000 0 25668 0 688993 0 0 Dennis Ryan CFO/Asst Treas/Assist Secr 506992 41626 560050 0 51606 0 1160274 0 24388 0 Tamika Harris VP Facilities & Support Serv 194300 28565 0 41808 0 25642 0 290315 0 16240 Sherri Matson VP General Counsel 377241 47754 469062 0 14817 0 908874 0 30508 0 Amy Sampson VP Public Relations/Mkting 288723 36636 139089 0 18559 0 483007 0 22574 0 John Harding Chief Operating Officer 516943 54084 197857 0 37306 0 806190 0 35839 0 Stephanie Calliott Senior VP Community Relations 104885 352916 111933 0 2931 0 572665 0 29584 0 Deborah Barnes VP - IS Operations 341406 35190 202904 0 22857 0 602357 0 20235 0 Kathryn Abshire VP Finance 234246 25985 91192 0 26997 0 378420 0 11790 0 Gregory Jones Director-Contract Development 142959 7427 18940 6343 0 24786 0 200455 0 0 0 SCHEDULE J, PART I, LINE 1A IN CONNECTION WITH A RETIREMENT PROGRAM, TAX GROSS-UP PAYMENTS ARE PROVIDED TO CERTAIN DIRECTORS WHOSE EMPLOYER FUNDED 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, PART I, LINE 4A STEPHANIE CALLIOTT RECEIVED A SEVERANCE PAYMENT IN THE AMOUNT OF $289,712. SCHEDULE J, PART I, 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. DURING THE YEAR, THE FOLLOWING INDIVIDUALS WERE PARTICIPANTS IN A SPONSORED SUPPLEMENTAL NONQUALIFIED RETIREMENT PLAN AND RECEIVED THE FOLLOWING ACTUARIAL INCREASES WHICH ARE INCLUDED IN SCHEDULE J PART II COLUMN (C): JAMES DAHLING $ 775,380 DENNIS RYAN $ 527,156 AMY SAMPSON $ 106,121 STEPHANIE CALLIOTT $ 161,091 SHERRI MATSON $ 438,433 KATHRYN ABSHIRE $ 75,394 DEBORAH BARNES $ 176,659 JOHN HARDING $ 161,676 TAMIKA HARRIS $ 17,232 SCHEDULE J, PART I, 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. A VA SMALL BUSINESS FINANCING AUTHORITY SERIES 2015 541200845 000000000 2015-12-01 100000000 FINANCING OF HEALTHCARE FACILITIES false false false A 2086887 0 51300000 0 0 0 0 0 51300000 0 0 0 false false false true A false true true true true true 0.00328 0.00328 false false false true A false true true false 0 false 0 false true A true Part II, Line 10 LINE 10 CAPITAL EXPENDITURES FROM PROCEEDS ALLOCATED CURRENTLY TOTAL $99,950,000, OF WHICH $51,300,000 WAS ALLOCATED TO CHILDRENS HEALTH SYSTEM AND $48,650,000 WAS ALLOCATED TO CHILDRENS HOSPITAL OF THE KINGS DAUGHTERS. Part III, Line 4 WE HAVE CONCLUDED THAT OUT OF THE ACTIVITIES CONDUCTED IN THIS BOND FINANCED SPACE, WE HAVE NOTED THAT .3276 % OF THE SPACE WAS PRIVATE BUSINESS USE. THE REMAINING SPACE DID NOT RESULT IN PRIVATE BUSINESS USE DUE TO EQUITY PROVIDED OR A REGULATORY SAFE HARBOR.OBLIGATED GROUP PNC BANK, NATIONAL ASSOCIATION AND BANK OF AMERICA, N.A., EACH HOLD PARITY NOTES OF CHKDS OBLIGATED GROUP (INCLUDING CHILDRENS HOSPITAL OF THE KINGS DAUGHTERS, INCORPORATED; CHILDRENS HEALTH SYSTEM; AND CHILDRENS HEALTH FOUNDATION, INC.) ISSUED UNDER THE MASTER TRUST INDENTURE. ACCORDINGLY, PNC AND BANK OF AMERICA HAVE THE BENEFIT, ON A PARITY BASIS, OF A VALID AND PERFECTED, FIRST PRIORITY SECURITY INTEREST HELD BY THE MASTER TRUSTEE IN THE TOTAL REVENUES PLEDGED UNDER THE MASTER TRUST INDENTURE AND IN ANY OTHER SECURITY INTEREST GRANTED BY THE MASTER TRUST INDENTURE. THE MASTER TRUST INDENTURE AND THE FINANCING DOCUMENTS WITH PNC AND BANK OF AMERICA PLACE CERTAIN RESTRICTIONS UPON CHKDS OBLIGATED GROUP RELATIVE TO OPERATING RATIOS, INCURRENCE OF ADDITIONAL INDEBTEDNESS, MAINTENANCE OF TAX-EXEMPT STATUS AND FINANCIAL REPORTING REQUIREMENTS. X SELLING PRICE false true true SCHEDULE M, LINE 32A CHILDREN'S HEALTH SYSTEM PAYS SYR, INC. MANAGEMENT FEES TO MANAGE THRIFT STORES FOR THE BENEFIT OF THE ORGANIZATION. SCHEDULE M, LINE 33 CHILDREN'S HEALTH SYSTEM RECEIVED NON-CASH CONTRIBUTIONS DURING THE YEAR; HOWEVER THESE NON CASH CONTRIBUTIONS WERE NOT VALUED UNTIL THE ITEMS WERE SOLD IN THE THRIFT STORE. organization's mission PART I, LINE 1 CHILDREN'S HEALTH SYSTEM IS A MULTI-SPECIALTY HEALTH SYSTEM SERVING SOUTHEASTERN VIRGINIA AND NORTHEASTERN NORTH CAROLINA OFFERING COMPREHENSIVE PEDIATRIC CARE FOR CHILDREN FROM BIRTH TO AGE 21. GOVERNING BODY & MANAGEMENT ITEMS PART VI, LINE 4 CHILDRENS HEALTH System, Inc. updated its articles of incorporation to include the support of Children's Hospital of the King's Daughters, Incorporated (CHKD), and other organizations described in Section 501(c)(3) and Section 509(a)(1) or (2) of the Code that are operating in CHKD's service areas that (A) provide health care for sick, injured, disabled, indigent, or infirm children and other persons, and providing for the preservation of health as the Board of Directors may determine from time to time to be appropriate, including, without limitation, hospitals, ambulatory care services, long-term care facilities, and agencies or facilities providing care for persons in their homes, (B) are designed to advance or support provision of health care services, including, without limitation, programs involving research, preventative health activities, and health-related education, or (C) further the charitable, educational, and scientific purposes of CHKD set forth in Article II of CHKD's Articles of Incorporation. PART VI, SECTION A, LINE 6 CHILDREN'S HEALTH SYSTEM, INC. HAS TWO CLASSES OF MEMBERS: 1) CLASS A MEMBERS (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 2) CLASS B MEMBERS (I.E., THE THEN CURRENT DIRECTORS ON THE BOARD OF DIRECTORS OF CHILDREN'S HEALTH SYSTEM, INC.). PART VI, SECTION A, LINE 7A 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) ELECT ONE THIRD OF THE ELECTED DIRECTORS OF CHILDREN'S HEALTH SYSTEM, INC. 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.) ELECT TWO THIRDS OF THE ELECTED DIRECTORS OF CHILDREN'S HEALTH SYSTEM, INC. PART VI, SECTION A, LINE 7B THE FOLLOWING DECISIONS OF THE BOARD OF DIRECTORS OF CHILDREN'S HEALTH SYSTEM, INC. 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. PART VI, SECTION B, LINE 11B THE 990 IS PREPARED USING THE ANNUAL FINANCIAL STATEMENTS THAT ARE 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 DRAFT OF THE RETURN, A DETAIL REVIEW IS PERFORMED BY SEVERAL MEMBERS OF STAFF AND MANAGEMENT. PRIOR TO FILING WITH THE IRS, THE BOARD IS PROVIDED A COPY TO REVIEW. Policies and Disclosure Items PART VI, SECTION B, LINE 12C CONFLICT POLICY CONSIDERATIONS CHS 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. RESPONSES TO THE QUESTIONNAIRES ARE REVIEWED BY THE LEGAL AND FINANCE DEPARTMENTS. FOR KNOWN CONFLICTS, THE PERSON INVOLVED RECUSES HIMSELF OR HERSELF FROM DELIBERATIONS REGARDING THE TRANSACTION. VIOLATIONS OF THE CONFLICT OF INTEREST POLICY ARE REPORTED TO THE CHS BOARD CHAIR OR THE CHS COMPLIANCE OFFICER, AS APPLICABLE, AND MAY REQUIRE CORRECTIVE ACTION UP TO AND INCLUDING TERMINATION OF EMPLOYMENT. PART VI, SECTION B, LINE 15A & 15B COMPENSATION PROCESS CONSIDERATIONS 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 AND EXECUTIVES FOR THE BOARD TO REVIEW. THE COMPENSATION COMMITTEE WITH THE AID OF THE CONSULTANT REVIEWS AND MAKES DECISIONS AS TO EXECUTIVE SALARIES OF CHS AND ITS SUBSIDIARIES. THOSE SALARY CHANGES AND APPROVALS ARE CONTEMPORANEOUSLY DOCUMENTED BY MINUTES MAINTAINED BY THE COMPENSATION COMMITTEE AND SIGNED BY THE CHAIRMAN OF THE BOARD. PART VI, SECTION C, LINE 19 FINANCIAL STATEMENTS (PART OF THE CONSOLIDATED FINANCIAL STATEMENTS OF CHILDREN'S HEALTH SYSTEM, INC.) ALONG WITH GOVERNING DOCUMENTS OF THE ORGANIZATION INCLUDING THE CONFLICT OF INTEREST POLICY ARE AVAILABLE TO THE PUBLIC THROUGH DIRECT INQUIRY AND REQUEST. FORM 990, PART XI, LINE 9 OTHER CHANGES IN NET ASSETS IS MADE UP OF: CHANGE IN DERIVATIVE ($ 7,980,432) CHANGE IN PENSION LIABILITY ($ 2,756,188) __________________________________________________ TOTAL ($ 10,736,620) CHKD THRIFT STORES LLC 601 CHILDRENS LANE NORFOLK VA 23507 THRIFT STORES VA 13205201 1451838 CHS INC CHILDREN'S REAL ESTATE 601 CHILDRENS LANE NORFOLK VA 23507 LESSOR VA 2944985 64282099 CHS INC CHILDREN'S RESEARCH HOLDINGS LLC 601 CHILDRENS LANE NORFOLK VA 23507 RESEARCH INV VA 0 2642860 CHS INC CHILDREN'S QUALITY CARE LLC 601 CHILDRENS LANE NORFOLK VA 23507 CIN VA 188636 257189 CHS INC CHILDREN'S HOSPITAL OF THE KING'S DAUGHT 601 CHILDRENS LANE NORFOLK VA 23507 540506321 HEALTHCARE VA 501(C)(3) 3 NA true CHILDREN'S HEALTH FOUNDATION INC 601 CHILDRENS LANE NORFOLK VA 23507 541278865 SUPP CHKD VA 501(C)(3) 12A NA true Fortify Children's Health LLC 1330 Jefferson Park Avenue Charlottesville VA 22908 831442745 Healthcare VA NA RELATED -1136092 208557 false 0 true 0.50000 Realta Holdings LLC 601 Childrens Lane Norfolk VA 23507 823954346 Research VA NA RELATED -588067 5367 false 0 true 0.34010 CHILDREN'S SURGICAL SPECIALTY GROUP INC 601 CHILDRENS LANE NORFOLK VA 23507 311610834 HEALTHCARE VA NA C CORP 26780572 2590180 1.00000 true CHILDREN'S MEDICAL GROUP INC 601 CHILDRENS LANE NORFOLK VA 23507 541778786 HEALTHCARE VA NA C CORP 85424668 25946329 1.00000 true CMG OF NORTH CARLOINA INC 601 CHILDRENS LANE NORFOLK VA 23507 561960102 HEALTHCARE NC NA C CORP 3041065 413841 1.00000 true true true true true false false false false false false false false true true true true true true false CHILDREN'S HOSPITAL OF THE KING'S DAUGHTERS q 159631019 BOOK VALUE CHILDREN'S HOSPITAL OF THE KING'S DAUGHTERS d 1954360 BOOK VALUE CHILDREN'S HOSPITAL OF THE KING'S DAUGHTERS b 1700000 CASH CHILDREN'S HOSPITAL OF THE KING'S DAUGHTERS c 16397346 CASH CHILDREN'S HOSPITAL OF THE KING'S DAUGHTERS a(iv) 2944985 CASH CHILDREN'S SURGICAL SPECIALTY GROUP INC r 10600000 BOOK VALUE CHILDREN'S HOSPITAL OF THE KING'S DAUGHTERS m 479433 BOOK VALUE