2015-11-12T16:38:02-06:00 2014-12-31 350921680 CROWE HORWATH LLP 225 West Wacker Drive Suite 2600 Chicago IL 606061224 990 2014-01-01 363197915 ROCKFORD HEALTH SYSTEM ROCK 8159715000 2400 N ROCKTON AVE ROCKFORD IL 61103 Henry M Seybold CFO 2015-11-11 true NICOLE BENCIK P00756195 3128997000 2014 2016-02-25 16:41:14Z JAVON BEA 2400 N ROCKTON AVE ROCKFORD IL 61103 15847531 false X WWW.RHSNET.ORG X 1982 IL The mission is to improve and protect the health and welfare of the community, with superior care, everyday, for all patients. 12 7 360 8 0 0 0 0 6727415 15840781 -649 -11535 0 0 6726766 15829246 0 0 0 0 4463240 4281941 0 0 0 5193443 14527999 9656683 18809940 -2929917 -2980694 16312843 13931211 9177511 9421294 7135332 4509917 Rockford Health System (RHS) is responsible for supporting the entities that comprise the system - Rockford Memorial Hospital (RMH), Rockford Health Physicians (RHPH), the Visiting Nurses Association of the Rockford Area (VNA), and Rockford Memorial Development Foundation (RMDF) - to enable them to fulfill their commitment to the RHS vision with performance excellence, innovation, and lifelong learning. false false 11273719 11284498 RHS PROVIDES SUPPORT FOR ROCKFORD MEMORIAL HOSPITAL (RMH), WHICH CARED FOR AND DISCHARGED 13,362 INPATIENTS IN 2014, WITH 1,508 DELIVERIES, 427,372 OUTPATIENTS TREATED, 52,494 VISITS TO THE EMERGENCY ROOM, AND PROCESSED ALMOST 1.6 MILLION LABORATORY TESTS. RMH IS THE REGIONAL DISASTER PREPAREDNESS CENTER FOR NORTHERN ILLINOIS PROVIDING TRAINING AND EDUCATION FOR COMMUNITY PREPAREDNESS AND ASSISTING 14 OTHER HOSPITALS WITH THEIR EMERGENCY PREPAREDNESS. RMH HAS A LEVEL I TRAUMA CENTER AND OPERATES A STATE-DESIGNATED PERINATAL CENTER WITH THE ONLY LEVEL III NEONATAL INTENSIVE CARE UNIT IN NORTHERN ILLINOIS, WITH 46 BEDS, PLUS A 7 BED PEDIATRIC INTENSIVE CARE UNIT. THROUGH THE AUXILIARY, RMH IS ABLE TO PROVIDE EXTRA FUNDS AND SERVICES TO SUPPORT ITS MISSION. THE AUXILIARY HAS 304 VOLUNTEERS WHO LOGGED 28,676 HOURS TO ENHANCE THE RMH EXPERIENCE FOR PATIENTS. RMH PROVIDES OUTREACH LAB SERVICES, HAS STATE-OF-THE-ART ROBOTIC SURGERY AVAILABLE AND HAS THE ONLY REGIONAL GENETIC SERVICES AND CYTOGENETICS LABORATORY. 4436283 4436283 RHS PROVIDES SUPPORT FOR ROCKFORD HEALTH PHYSICIANS (RHPH), WHICH IN TURN PROVIDES STAFFING FOR RMH'S SPECIALIZED UNITS SUCH AS THE NICU AND THE PICU, ADULT AND PEDIATRIC HOSPITALISTS, AS WELL AS NEUROLOGISTS, NEURO AND TRAUMA SURGEONS. RHPH ALSO PROVIDES ANESTHESIOLOGISTS TO ASSIST THE RMH SURGICAL PROGRAM. RHPH PHYSICIANS, WITH SPECIALTIES IN BRAIN, SPINE, AND ORTHOPEDICS, AS WELL AS TRAINED EMERGENCY MEDICINE SPECIALISTS, ARE AVAILABLE 24/7 TO STAFF THE EMERGENCY DEPARTMENT AND FILL IMMEDIATE NEEDS IN THE LEVEL I TRAUMA CENTER. RHPH EMPLOYS OVER 150 PHYSICIANS OF VARYING SPECIALTIES AND CONTINUES TO ASSESS AND RESPOND TO THE COMMUNITY NEEDS WHEN RECRUITING NEW PHYSICIANS. RHPH HAD A TOTAL OF 455,822 OFFICE VISITS IN 2014 AND PROVIDED 380,503 ANCILLARY PROCEDURES AND 321,887 CLINICAL TESTS IN AREAS SUCH AS PULMONARY FUNCTION, BONE SCANS, RADIOLOGY, CT SCANS, MAMMOGRAPHY AND PHYSICAL THERAPY. 120000 120000 THE RHS COMMITMENT TO SUPPORT THE ENTITIES WITHIN THE SYSTEM INCLUDES COLLABORATION WITH COMMUNITY PARTNERS IN BOTH TIME (STAFF & VOLUNTEERS) AND MONEY TO IMPROVE THE QUALITY OF LIFE. TO FULFILL THE VISION, RHS PROVIDES SUPPORT FOR THE VISITING NURSES ASSOCIATION OF THE ROCKFORD AREA (VNA) SERVING THE COMMUNITY WITH HOSPICE CARE (24,315 DAYS), ELDER ADULT COUNSELING/SERVICES (OVER 7,000), AND HOME HEALTH CARE (24,890 VISITS) INCLUDING THERAPISTS/AIDES (10,636 VISITS) FOR CARE THAT ALLOWS PEOPLE TO STAY IN THEIR OWN HOME TO RECOVER AND RECUPERATE. 105 VNA VOLUNTEERS GAVE 3,988 HOURS TO MEET THE NEEDS OF THE ELDERLY. STAFF PARTICIPATED IN COMMUNITY HEALTH/WELLNESS EVENTS TO BRING AWARENESS, EDUCATION AND MEDICAL SCREENINGS TO OVER 100 EVENTS. RHS ALSO PROVIDES SUPPORT FOR ROCKFORD MEMORIAL DEVELOPMENT FOUNDATION (RMDF) WHICH, THROUGH FUNDRAISING ACTIVITIES, PROVIDES RESOURCES TO ENHANCE ALL AREAS OF RHS. RMDF FUNDS ARE USED FOR SPECIAL CAPITAL PROJECTS, ASSISTING VNA IN HOSPICE AND HOME CARE, ADDING COMFORT AND EXTENDED CARE ITEMS FOR RMH AND RHPH, AS WELL AS CRISIS SUPPORT AND EDUCATION FOR EMPLOYEES. 15830002 true false false true false false false false false true false false true true false false true false false false false false false false false false false false true false false false false false false false false false false false false false true true true false false true 71 0 true 360 true false false false false false false false false false false false X 12 7 false false false false false false false true true false false false true true true true true true true false IL X DAVID VOLA CONTROLLER 8159715000 2400 N ROCKTON AVE ROCKFORD IL 61103 GARY E KAATZ PRESIDENT & CEO 57.00 3.00 X X 1046965 0 63100 CONNIE M VITALI CHAIR 0.80 2.10 X X 0 0 0 DENNIS T UEHARA VICE-CHAIR 4.00 51.50 X X 0 534513 44010 THOMAS D BUDD TREASUER 0.50 0.80 X X 0 0 0 DUANE R BACH TREASURER (Partial Year) 1.00 0.20 X X 0 0 0 JACK J BECHERER DIRECTOR 0.30 1.30 X 0 0 0 JOHN W CHADWICK DIRECTOR 0.10 0.60 X 0 0 0 ELEANOR F DOAR DIRECTOR 2.80 2.10 X 0 0 0 PAMELA S FOX DIRECTOR 0.10 0.20 X 0 0 0 JOSE L GONZALEZ DIRECTOR 1.00 52.90 X 0 373660 27255 PAUL A GREEN DIRECTOR 1.00 1.10 X 0 0 0 JEFF R SMITH MD Director 1.00 42.00 X 0 372057 27970 CURTIS D WORDEN DIRECTOR 1.80 0.60 X 1429 0 0 JULIE PETERSON SECRETARY 38.30 3.00 X 79211 0 4320 HENRY M SEYBOLD CFO 41.00 4.30 X 474282 0 33136 Dennis L'Heureux VP PLANNING & CIO 40.00 0 X 370474 0 44628 James Evans VP LEGAL AFFAIRS 40.00 0 X 350999 0 26797 DOUG BROOKS VP CAMPUS DEVELOPMENT 40.00 0 X 258355 0 31705 Helen Brooks VP COMMUNITY & REGIONAL DEVELOPMENT 36.00 4.00 X 204935 22771 31752 Heidi Elsbree VP People & Culture 40.00 0 X 211117 0 15250 2997767 1303001 349923 29 false true false HURON CONSULTING SERVICES 3005 MOMENTUM PL CHICAGO IL 606895330 CONSULTING 9406224 PROSKAUER ROSE LLP Eleven Times Square New York NY 10036 LEGAL SERVICES 533218 WARBIRD CONSULTING PARTNERS Wells Fargo Capital Finance PO Box 823280 Philadelphia PA 191823280 CONSULTING 469021 TRIOSE INC 39 E Lancaster Ave Reading PA 19607 FREIGHT MANAGEMENT 379833 OXFORD GLOBAL RESOURCES INC PO Box 3256 Boston MA 022413256 IT SUPPORT SERVICES 327604 19 0 COORDINATE AND SUPPORT AFFILIATE ACTIVITIES 561000 15840781 15840781 0 0 0 0 15840781 0 0 6750 18285 0 -11535 -11535 -11535 0 0 0 0 0 15829246 15840781 0 -11535 X 1701015 1701015 1958833 1958833 93273 93273 396437 396437 132383 132383 49834 49834 13824057 10844119 2979938 0 2500 2500 42482 42482 110484 110484 29598 29598 55510 55510 48696 48696 66062 66062 RECRUITING/RETENTION/EMPLOYEE APPRECIATION 113503 113503 DUES & MEMBERSHIPS 68031 68031 117242 117242 0 0 18809940 15830002 2979938 0 5320790 2344471 283707 421706 0 0 1609816 1941903 35346135 27722702 7909665 7623433 0 0 1188865 1599698 16312843 13931211 8250029 8557939 200000 100000 0 727482 763355 9177511 9421294 X 7135332 4509917 7135332 4509917 16312843 13931211 X -2980694 355279 X false true X true false X X 3 ROCKFORD MEMORIAL HOSPITAL 362167847 3 true 11273719 0 ROCKFORD HEALTH PHYSICIANS 363097436 3 true 4436283 0 VISITING NURSES ASSN OF THE ROCKFORD AREA 362167945 9 true 120000 0 3 15830002 true false false false false false false false false false false false false false false false true true X true true Schedule A, Part I, Line 11h DESCRIPTION OF NON-MONETARY SUPPORT ROCKFORD MEMORIAL HOSPITAL: CORPORATE MANAGEMENT SERVICES ROCKFORD HEALTH PHYSICIANS: CORPORATE MANAGEMENT SERVICES VISITING NURSES ASSN OF THE ROCKFORD AREA: CORPORATE MANAGEMENT SERVICES Schedule A, Part IV, Section D, Line 1 Written notice to supported organizations As a healthcare system parent organization, Rockford Health System (RHS) appoints or approves the board members of each of the supported organizations, Rockford Memorial Hospital (RMH), Rockford Health Physicians (RHPH), and Visiting Nurses Association of the Rockford Area (VNA), in its capacity as sole corporate member thereof. According to the Bylaws of RHS, among the powers exercised by the RHS board is the power to coordinate the activities of RHS's subsidiary and affiliated organizations, including RMH, RHPH, and VNA. To that end, the organizations communicate on a daily basis in the ordinary course of business on such matters as capital and operating budgets, strategic planning, manpower development and other important matters. RHS meets the notification requirements of a functionally integrated Type III supporting organization because (i) the nature of the support provided by RHS to the supported organizations is established by, and conducted in accordance with, its governing document provisions; (ii) RHS routinely reviews all Forms 990 prepared and filed by the supported organizations; and (iii) RHS routinely reviews all governing documents of the supported organizations (because, as sole corporate member thereof, RHS has the power to approve all amendments to the respective governing documents). Schedule A, Part IV, Section D, Line 3 Supp. Org. Have Significant Voice In Investment Policies Because the same individuals serve as directors of RHS, RHPH, and RMH, those individuals, in carrying out their fiduciary duties for the respective organizations, oversee the supporting organization's income, assets, and investments. The RHS Investment Committee, which consists of at least five individuals who are directors of each of RHS, RHPH, and RMH, have adopted an investment policy that addresses investment matters such as asset allocation for various corporate funds and the funds of the entities within the healthcare system, including pension funds, funded depreciation, endowment funds, trustee-held funds, board-designated funds and excess operating funds, the selection of the mix and types of investments which best serve the interests of the healthcare system, and the selection, retention and appointment of investment managers. Schedule A, Part IV, Section E, Line 3a Power To Appoint/Elect Majority of Officer/Director/Trustee As a healthcare system parent organization, RHS appoints or approves the board members of each of the supported organizations, RMH, RHPH, and VNA, in its capacity as sole corporate member thereof. Schedule A, Part IV, Section E, Line 3b Substantial Direction Over Policies/Programs/Activities RHS exercises a substantial degree of direction over the policies, programs, and activities of each of the supported organizations. According to the Bylaws of RHS, in coordinating the activities of the healthcare system the RHS board has the authority to, among other things, approve amendments to the governing documents of the supported organizations, approve annual and operating budgets and strategic, long-range and health manpower development plans for the supported organizations, require the boards of directors of the supported organizations to take certain actions related to the credit worthiness of the organizations, approve fundamental corporate changes, approve material amendments to the standard compensation system of the supported organizations, etc. false false false false false false false false true 90000 90000 false Schedule C, Part II-B, Line 1 DESCRIPTION OF THE ACTIVITIES REPORTED ON LINES 1A THROUGH 1I TWO CONSULTING FIRMS WERE ENGAGED BY RHS TO REVIEW LEGISLATION AFFECTING HOSPITALS. APPROXIMATELY 50% OF TOTAL PAYMENTS TO THE CONSULTANTS WERE ALLOCABLE TO LOBBYING ACTIVITIES. 668874 369315 299559 29507731 24910966 4596765 5169530 2442421 2727109 7623433 Supplemental Survivor Premiums 168481 LIFE INSURANCE VALUE 259130 DUE FROM RELATED ORGANIZATIONS 403700 CAPITAL ACCUMULATION ACCOUNTS 518387 IL PARTNERSHIP FOR HEALTH (ACE) 250000 1599698 CAPITAL ACCUMULATION LIABILITY 518387 LIFE INSURANCE LIABILITY 244968 Due to related organizations 0 763355 Schedule D, Part X, Line 2 FIN48 (ASC 740) DISCLOSURE THERE IS NO FIN 48 LIABILITY AND AS SUCH, THE ORGANIZATION'S CONSOLIDATED FINANCIAL STATEMENTS DO NOT INCLUDE A FIN 48 DISCLOSURE. X true true X X X X false false false false false false false true false GARY E KAATZ PRESIDENT & CEO 686868 0 242722 0 117374 0 56476 0 6624 0 1110065 0 0 0 DENNIS T UEHARA VICE-CHAIR 0 531867 0 0 0 2646 0 37500 0 6510 0 578524 0 0 JOSE L GONZALEZ DIRECTOR 0 372112 0 0 0 1548 0 20000 0 7255 0 400914 0 0 JEFF R SMITH MD Director 0 371283 0 0 0 774 0 20000 0 7970 0 400027 0 0 HENRY M SEYBOLD CFO 385657 0 58079 0 30547 0 22793 0 10343 0 507418 0 0 0 Dennis L'Heureux VP PLANNING & CIO 282616 0 56787 0 31071 0 36861 0 7767 0 415101 0 0 0 James Evans VP LEGAL AFFAIRS 294654 0 54257 0 2088 0 19656 0 7140 0 377796 0 0 0 DOUG BROOKS VP CAMPUS DEVELOPMENT 209860 0 10332 0 38163 0 30180 0 1525 0 290060 0 0 0 Helen Brooks VP COMMUNITY & REGIONAL DEVELOPMENT 194204 22771 9549 0 1183 0 27204 3023 1373 153 233511 25946 0 0 Heidi Elsbree VP People & Culture 190302 0 10000 0 10815 0 0 0 15250 0 226368 0 0 0 Schedule J, Part I, Line 1a Health or social club dues or initiation fees By policy: Membership to the YMCA is paid for the CEO. Two social club memberships are paid for by the organization for the CEO and any personal use of these facilities is reimbursed in full. The actual cost of these memberships is prorated for personal vs business use and that percentage is added to taxable wages. Schedule J, Part I, Line 7 Non-fixed payments MANAGEMENT AND EMPLOYEES ARE PERIODICALLY FINANCIALLY REWARDED FOR EXCEEDING COMPANY AND DEPARTMENT PERFORMANCE GOALS. THE AMOUNTS ARE DISCRETIONARY AND ARE NOT RELATED TO NET EARNINGS OF THE ORGANIZATION AND ARE APPROVED BY THE CEO PRIOR TO PAYMENT WITH BOARD OVERSIGHT OF SUCH PAYMENTS. THE CEO'S FINANCIAL INCENTIVES ARE APPROVED BY THE BOARD OF DIRECTORS. Form 990, Part I, Line 5 Average compensation per employee Part I of the Form 990, line 5 reports 360 total employees of Rockford Health System. Total salaries and other compensation reported on the Form 990, Part I, line 15 is $4,281,940. The average compensation for Rockford Health System is higher than this data presents; the salaries and benefits reported do not include the salaries and benefits that were allocated to Rockford Memorial Hospital, Rockford Memorial Development Foundation, Visiting Nurses Association of the Rockford Area, and Rockford Health Physicians, four related entities of which Rockford Health System is the sole corporate member. Form 990, Part VI, Line 1a Delegate broad authority to a committee The Executive Committee consists of seven individuals, each of whom shall have a vote, including: the RHS CEO, the chairman, vice-chairman, immediate past chairman, treasurer, and 2 additional directors of the board. At least one member of the Executive Committee shall be a physician. The Executive Committee shall in all instances be comprised of at least 51% community members. In the event that one or more of the aforementioned voting members of the Executive Committee is unable to serve in such capacity, then the chairman of the corporation shall designate a replacement from among the board members. The Executive Committee Shall meet as needed. The executive committee shall review reports from the RHS CEO regarding the performance of executives of the corporation and affiliated corporations, monitor the performance of the RHS CEO of the corporation against annual objectives, and determine the compensation level of the RHS CEO. In addition, when the board of directors is not in session, the executive committee shall have all the powers, duties, responsibilities and authority of the board, except as prohibited by law. Form 990, Part VI, Line 11b Review of form 990 by governing body The data was gathered by the accounting staff with input from the executive staff. The data was reviewed and the Form 990 prepared by the RHS staff. Once the Form 990 was completed, it was reviewed by an independent accounting firm and the organization's CFO. Form 990, Part VI, Line 12c Conflict of interest policy By written policy, RHS sends out, on an annual basis, the corporate Conflict and Duality of Interest policy to all Board members, corporate officers and other key individuals (those having responsibility and authority to make final decisions regarding the acquisition of products or services). Each recipient is required to complete a Financial Interest Disclosure Statement, which is submitted to the Vice President, Legal Services/General Counsel for review. With respect to physicians and managers who are key individuals, any potential conflict of interest is reviewed with the appropriate executive staff member for follow up with the disclosing party in order to review the matter in more detail. This includes emphasizing that the disclosing party is not permitted to participate in any negotiations for the purchase of any products or services where the conflict is deemed material, or authorize the subsequent purchase of related goods and services. The disclosing party is also required to identify each and every instance of a potential conflict as they may arise in the ordinary course of business. A similar process is followed for the Board of Directors, except that any potential conflict is reviewed by the Board's Governance Committee. Board members may comment on transactions where there is a potential conflict, but cannot vote on the related matter and may be required to leave any meeting where the potential conflict is reviewed by the Board or where the Board takes action to either approve or not approve the proposed transaction. A board member also has a continuing duty to report any conflicts as they may arise in the ordinary course of business. In the event that a potential conflict of interest is reported or discovered outside the established process, appropriate review and action would be taken. This process was last completed in 2015, when the questionnaires were sent to address any 2014 conflicts identified. The RHS Conflict of Interest Policy is available upon request. Form 990, Part VI, Line 15a Process to establish compensation of top management official Compensation for the top management official is governed by the RHS Board of Directors, and overseen by the Executive Committee. The RHS Board has established a total compensation philosophy that directs the compensation practices for all executives. This Board has established a Compensation Committee to establish and review all executive compensation annually based on the established philosophy. An external executive compensation firm provides consulting on RHS salary ranges and compensation philosophy. The appropriate peer group for compensation comparison purposes is other not-for-profit healthcare systems similar in size and complexity. RHS generally conducts an analysis of total compensation every three years but may choose to vary from this schedule as determined by the Compensation Committee. This process is documented, and was last completed in 2014. Form 990, Part VI, Line 15b Process to establish compensation of other employees Compensation for other officers and key employees is governed by the RHS Board of Directors. The RHS Board has established a total compensation philosophy that directs the compensation practices for all executives. This Board has established a Compensation Committee to establish and review all executive compensation annually based on the established philosophy. An external executive compensation firm provides consulting on RHS salary ranges and compensation philosophy. The appropriate peer group for compensation comparison purposes is other not-for-profit healthcare systems similar in size and complexity. RHS generally conducts an analysis of total compensation every three years but may choose to vary from this schedule as determined by the Compensation Committee. This process is documented, and was last completed in 2014. Form 990, Part VI, Line 19 Required documents available to the public Financial statements are available through the Illinois Attorney General's Office. Governing documents are available by request from Board Secretary. The conflict of interest policy is not published but is available upon request. Form 990, Part VII, Section A NONEMPLOYEE COMPENSATION CURTIS WORDEN IS NOT COMPENSATED AS A BOARD MEMBER; HE RECEIVED TAXABLE NONEMPLOYEE COMPENSATION ON A FORM 1099 FOR 2014 LEGAL SERVICES PROVIDED TO THE SYSTEM. Form 990, Part IX, Line 11g Other Fees Affiliation Expenses - Total Expense: 2979938, Program Service Expense: , Management and General Expenses: 2979938, Fundraising Expenses: ; Consulting Fees - Total Expense: 10844119, Program Service Expense: 10844119, Management and General Expenses: , Fundraising Expenses: ; Form 990, Part XI, Line 9 Other changes in net assets or fund balances Net Transfers from Affiliated Organizations - 355279; ROCKFORD MEMORIAL HOSPITAL 2400 N ROCKTON AVE ROCKFORD IL 61103 362167847 HEALTHCARE IL 501(c)(3 3 ROCKFORD HEALTH SYSTEM true ROCKFORD MEMORIAL DEVELOPMENT FOUNDATION 2400 N ROCKTON AVE ROCKFORD IL 61103 363197918 SUPPORT OF HEALTHCARE IL 501(c)(3 Type I ROCKFORD HEALTH SYSTEM true VISITING NURSES ASSN OF THE ROCKFORD AREA 4223 E STATE STREET ROCKFORD IL 61108 362167945 HEALTHCARE IL 501(c)(3 9 ROCKFORD HEALTH SYSTEM true ROCKFORD HEALTH PHYSICIANS 2300 N ROCKTON AVE ROCKFORD IL 61103 363097436 HEALTHCARE IL 501(c)(3 3 ROCKFORD HEALTH SYSTEM true ROCKFORD HEALTH INSURANCE LTD WELLESLEY HOUSE SO 2ND FL PEMBROOKE BD HM INSURANCE BD NA C Corporation false false false false false false false false false false false false false false true true false true true true ROCKFORD MEMORIAL HOSPITAL Q 11273719 FMV ROCKFORD HEALTH PHYSICIANS Q 4436283 FMV VISITING NURSES ASSOCIATION OF THE ROCKFORD AREA Q 60000 FMV ROCKFORD MEMORIAL DEVELOPMENT FOUNDATION Q 60000 FMV