2014-11-13T13:17:37-06:00 2013-12-31 ERNST & YOUNG US LLP 155 NORTH WACKER DRIVE CHICAGO IL 60606 990 2013-01-01 362913108 EHS Home Health Care Service inc % JAMES DOHENY EHSH 6305729393 3075 HIGHLAND PARKWAY Suite 600 DOWNERS GROVE IL 60515 JAMES DOHENY TREASURER 2014-11-11 KATHERINE KURTZMAN P01236691 2013 2015-11-30 17:44:51Z DENISE M KEEFE 3075 HIGHLAND PKWY STE 600 DOWNERS GROVE IL 60515 74254001 false X www.advocatehealth.com X 1977 IL TO PROVIDE QUALITY MED HOME HEALTH CARE SVCS & EDN TO VARIOUS COMMUNITIES IN THE CHICAGOLAND AREA REGARDLESS OF RACE, CREED, SEX, NATIONAL ORIGIN, HANDICAP, AGE OR ABILITY TO PAY. 7 0 647 0 3941164 0 39918 22037 58626366 65176602 305314 463662 6170238 6053277 65141836 71715578 99 98 0 0 38028358 41200059 0 0 0 24585376 25492398 62613833 66692555 2528003 5023023 21552286 24241310 15559014 17627475 5993272 6613835 X EHS HOME HEALTH CARE SERVICE, INC. (EHSHHC) MISSION IS TO PROVIDE QUALITY MEDICAL HOME HEALTH SERVICES AND EDUCATION TO VARIOUS COMMUNITIES IN THE CHICAGOLAND AREA REGARDLESS OF RACE, CREED, SEX, NATIONAL ORIGIN, HANDICAP, AGE OR ABILITY TO PAY. false false 53697072 98 67285650 IN KEEPING WITH ITS COMMITMENT TO SERVE ALL MEMBERS OF ITS COMMUNITY, EHSHHC, INC. PROVIDES THE FOLLOWING SERVICES WHERE THERE IS A NEED, REGARDLESS OF THE PATIENTS' ABILITY TO PAY: - FREE CARE AND/OR SUBSIDIZED CARE - CARE TO PERSONS COVERED BY GOVERNMENT PROGRAMS AT BELOW COST - HEALTH ACTIVITIES AND PROGRAMS TO SUPPORT THE COMMUNITY SUCH AS NUTRITIONAL COUNSELING AND MATERNAL CHILD PROGRAMS. EHSHHC MADE 388,344 HOME CARE VISITS DURING 2013. THESE VISITS CONSISTED OF 229,441 NURSING VISITS, 126,695 PHYSICAL THERAPY VISITS, 17,013 OCCUPATIONAL THERAPY VISITS, 9,286 HOME HEALTH AID VISITS, 3,830 SPEECH THERAPY VISITS, AND 2,079 MEDICAL SOCIAL WORKER VISITS. 0 0 0 53697072 true true false false false 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 true false false false false false true true true false false true 49 0 true 647 true true true false false false false false false false false false X 7 0 true false false false true true true true true false false true true true true true true true true false X JAMES DOHENY 6309295543 3075 HIGHLAND PKWY STE 600 DOWNERS GROVE IL 60515 Denise M Keefe President & Chairperson 40.0 1.0 X X 791980 0 175287 Gail D Hasbrouck Secretary, Director 1.0 45.0 X X 0 1100893 214228 Lois Elia Director 1.0 40.0 X 0 466673 37001 William Adair MD Director 1.0 0.0 X 0 357909 41307 Susan Campbell SVP-Patient Care/Chf Nurs ofcr 1.0 43.0 X 0 264253 144987 Karen Lambert Director 1.0 40.0 X 0 920518 213528 Rick Floyd Director 1.0 40.0 X 0 1327523 164817 Michael McKenna MD Director UNTIL 7/13 1.0 0.0 X 0 0 0 Rishi Sikka MD Director UNTIL 5/13 1.0 40.0 X 0 530449 56903 James Farley Director UNTIL 9/13 1.0 0.0 X 0 0 0 James Doheny Treasurer 1.0 46.0 X 0 439005 55680 Kathy Fife VP, Human Resources 40.0 0.0 X 124765 0 20222 Mary Matthews Assistant Secretary 1.0 41.0 X 0 243562 32308 Keith Rancine VP, Financial Operations 40.0 1.0 X 210183 0 37522 Steven Sundberg VP, Operations 40.0 1.0 X 100056 146936 21528 Christine Ricker VP, Business Development 40.0 0.0 X 201879 0 43976 Thomas Mathew Physical Therapist 40.0 0.0 X 189153 0 36596 Kathy Siwak VP, Clinical Services 40.0 0.0 X 185071 0 38773 Michelle Warszalek Admin Intermittent Ops/CNE 40.0 0.0 X 160654 0 21488 Cheryl Pickett Physical Therapist 40.0 0.0 X 146138 0 61 Michael Imbrogno Director Information Systems 40.0 0.0 X 139764 0 27382 Rowena Brown-Evans Director until 12/10 0.0 40.0 X 0 157038 22113 Ben Grigaliunas Director until 12/11 0.0 0.0 X 0 736510 36066 Marty Manning Director until 4/12 0.0 0.0 X 0 302531 12246 Mark Shields MD Director until 12/12 0.0 40.0 X 0 290153 30154 2249643 7283953 1484173 35 true true false ATLAS MEDSTAFF 11840 NICHOLAS ST SUITE 215 OMAHA NE 68154 TEMPORARY STAFFING 375021 ALLSCRIPTS HEALTHCARE LLC 24630 NETWORK PLACE CHICAGO IL 60673 MEDICAL SOFTWARE 314785 2 0 22037 0 22037 MEDICARE 621610 36334789 36334789 0 0 PRIVATE INSURANCE 621610 21844260 21844260 0 0 SELF PAY 621610 862882 862882 0 0 MEDICAID 621610 768798 768798 0 0 OTHER / COMMERCIAL PAYORS 621610 5061874 5061874 0 0 303999 303999 0 0 65176602 199609 199609 0 0 0 0 0 2802476 2538423 264053 264053 264053 0 0 0 MANAGEMENT FEES 541610 3941164 0 3941164 0 ADMINISTRATIVE FEES 561000 2097432 2097432 0 0 MEDICAL RECORDS 900099 11616 11616 0 0 3065 3065 6053277 71715578 67285650 3941164 466727 X 98 98 0 0 0 0 0 0 1428863 1138239 290624 0 0 0 0 0 31678720 25235414 6443306 0 1331817 992497 339320 0 4289719 3227029 1062690 0 2470940 2026117 444823 0 961812 627634 334178 0 179709 0 179709 0 155998 0 155998 0 0 0 0 0 0 0 23920 0 23920 0 11266752 11101368 165384 0 224233 4381 219852 0 5891385 5255016 636369 0 1820989 128605 1692384 0 0 0 0 0 1434843 894245 540598 0 1327251 1161412 165839 0 0 0 0 0 12085 2315 9770 0 0 0 0 0 0 0 0 0 410099 271651 138448 0 133967 133967 0 0 BAD DEBT EXPENSE 1024041 1024041 0 0 OTHER EXPENSES 579623 450057 129566 0 EMPLOYEE EXPENSES 45691 22986 22705 0 66692555 53697072 12995483 0 1750 10904068 7758922 0 0 0 4018956 3438196 0 0 0 0 0 0 0 0 114246 147507 5139743 4510393 915085 629350 6825439 7348988 0 0 0 0 0 0 1917888 1773201 21552286 24241310 6799232 9068128 0 0 0 0 0 0 0 0 0 0 0 0 0 0 8759782 8559347 15559014 17627475 X 5993272 6613835 0 0 0 0 5993272 6613835 21552286 24241310 X 5023023 132047 -4534507 X false true X true false X 4890 30572 34159 39918 22037 131576 39542562 47484902 52955434 60656945 67285650 267925493 0 0 0 39547452 47515474 52989593 60696863 67307687 268057069 0 0 0 268057069 65680 36870 44603 167994 199609 514756 0 65680 36870 44603 167994 199609 514756 0 0 0 0 0 0 571 12660 538 1375 3065 18209 39613703 47565004 53034734 60866232 67510361 268590034 0.99802 0.99839 0.00192 0.00154 X RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED 843893 660795 183098 4295850 3849598 446252 629350 DUE FROM AFFILIATES 1773201 1773201 0 DUE TO 3RD PARTY 6580365 DUE TO AFFILIATES 1978982 8559347 71823705 132047 132047 71691658 23920 23920 71715578 66668635 66668635 23920 23920 66692555 X X X X true true false false false false false true false Denise M Keefe President & Chairperson 341230 0 281422 0 169328 0 146866 0 28421 0 967267 0 97313 0 Gail D Hasbrouck Secretary, Director 0 435590 0 387547 0 277756 0 185821 0 28407 0 1315121 0 149653 Lois Elia Director 0 306280 0 123774 0 36619 0 23567 0 13434 0 503674 0 0 William Adair MD Director 0 284335 0 67602 0 5972 0 23567 0 17740 0 399216 0 0 Susan Campbell SVP-Patient Care/Chf Nurs ofcr 0 224654 0 0 0 39599 0 109790 0 35197 0 409240 0 0 Karen Lambert Director 0 372301 0 361596 0 186621 0 174770 0 38758 0 1134046 0 139462 Rick Floyd Director 0 521495 0 235646 0 570382 0 141977 0 22840 0 1492340 0 401653 Rishi Sikka MD Director UNTIL 5/13 0 379104 0 115035 0 36310 0 23567 0 33336 0 587352 0 0 James Doheny Treasurer 0 294206 0 110340 0 34459 0 23567 0 32113 0 494685 0 0 Mary Matthews Assistant Secretary 0 184886 0 43167 0 15509 0 21221 0 11087 0 275870 0 0 Keith Rancine VP, Financial Operations 169750 0 36804 0 3629 0 19057 0 18465 0 247705 0 0 0 Steven Sundberg VP, Operations 76176 111867 17095 25105 6785 9964 8696 12771 25 36 108777 159743 0 0 Christine Ricker VP, Business Development 160211 0 35796 0 5872 0 17983 0 25993 0 245855 0 0 0 Thomas Mathew Physical Therapist 187458 0 2470 0 -775 0 17344 0 19252 0 225749 0 0 0 Kathy Siwak VP, Clinical Services 142743 0 31668 0 10660 0 15790 0 22983 0 223844 0 0 0 Michelle Warszalek Admin Intermittent Ops/CNE 139935 0 21099 0 -380 0 14170 0 7318 0 182142 0 0 0 Michael Imbrogno Director Information Systems 120952 0 18287 0 525 0 12228 0 15154 0 167146 0 0 0 Rowena Brown-Evans Director until 12/10 0 139492 0 18911 0 -1365 0 13907 0 8206 0 179151 0 0 Ben Grigaliunas Director until 12/11 0 0 0 502194 0 234316 0 35424 0 642 0 772576 0 225123 Marty Manning Director until 4/12 0 0 0 198105 0 104426 0 4916 0 7330 0 314777 0 191585 Mark Shields MD Director until 12/12 0 142630 0 118500 0 29023 0 23567 0 6587 0 320307 0 0 PART I, LINE 4A SUPPLEMENTAL COMPENSATION INFORMATION SEVERANCE PAYMENTS BEN GRIGALIUNIS, SENIOR VICE PRESIDENT, HUMAN RESOURCES, TERMINATED HIS EMPLOYMENT WITH AHHC IN 2011 AND RECEIVED SEVERANCE OF $18,186 IN 2013. THIS AMOUNT WAS REPORTED ON A PRIOR FORM 990 AS DEFERRED COMPENSATION AND IS LISTED AS A COMPONENT OF COLUMN (F). MARTIN MANNING, PRESIDENT, ADVOCATE HEALTH PARTNERS, TERMINATED HIS EMPLOYMENT WITH ANS IN 2012 AND RECEIVED SEVERANCE OF $106,274 IN 2013. THIS AMOUNT WAS REPORTED ON A PRIOR FORM 990 AS DEFERRED COMPENSATION AND IS LISTED AS A COMPONENT OF COLUMN (F). PART I, LINE 4B SUPPLEMENTAL NON-QUALIFIED RETIREMENT PLAN GAIL HASBROUCK, SENIOR VICE PRESIDENT-GENERAL COUNSEL AND CORPORATED SECRETARY, IS VESTED IN A NON-QUALIFIED RETIREMENT PLAN. AS SUCH ANY CONTRIBUTIONS ARE TAXED CURRENTLY. THERE IS NO DEFERRED COMPONENT. ADVOCATE PROVIDES A TARGET REPLACEMENT SENIOR EXECUTIVE RETIREMENT PLAN. THE CONTRIBUTIONS TO THIS PLAN ARE VESTED AND TAXABLE AFTER FIVE YEARS OF SERVICE. THE FOLLOWING EMPLOYEES ARE VESTED IN THE PLAN AND THEREFORE THE CONTRIBUTIONS ARE REPORTED AS COMPENSATION ON THE W-2: GAIL HASBROUCK, KAREN LAMBERT AND DENISE KEEFE. THE FOLLOWING EMPLOYEE HAS NOT YET VESTED AND THEREFORE THE CONTRIBUTIONS ARE REPORTED AS DEFERRED COMPENSATION: SUSAN CAMPBELL. PART I, LINE 7 INCENTIVE PAYMENTS ARE BASED UPON A FORMULA. THE AMOUNTS ARE CALCULATED AFTER CERTAIN PERFORMANCE AND OPERATING GOALS ARE ACHIEVED. THE COMPENSATION COMMITTEE CAN EXERCISE DISCRETION OVER WHETHER INCENTIVE COMPENSATION IS PAID OUT ANNUALLY. EVANGELICAL SERVICES CORPORATION SHARED BOARD MEMBER 44126114 EXPENSE ALLOCATION false EVANGELICAL SERVICES CORPORATION SHARED BOARD MEMBER 414416 EXPENSE REIMBURSED false ADVOCATE HOME CARE PRODUCTS INC SHARED BOARD MEMBER 6161934 EXPENSE REIMBURSED false ADVOCATE HOME CARE PRODUCTS INC SHARED BOARD MEMBER 4220602 MISC. SERVICES false ADVOCATE HOME CARE PRODUCTS INC SHARED BOARD MEMBER 2934503 MISC. SERVICES false ADVOCATE HOME CARE PRODUCTS INC SHARED BOARD MEMBER 145734 PROPERTY RENT RECEIVED false FORM 990, PART I, LINE 4 ADVOCATE HEALTH CARE IS AN INTEGRATED DELIVERY SYSTEM INCLUDING NOT-FOR-PROFIT COMMUNITY HOSPITALS, WHICH HAVE COMMUNITY BOARDS. EHS HOME HEALTH CARE SERVICE, INC.(EHSHHCS) IS A HOME HEALTH CARE ORGANIZATION, WHICH SUPPORTS ADVOCATE HEALTH CARE AND ITS AFFILIATES. THE EHSHHCS BOARD IS COMPRISED MOSTLY OF ADVOCATE EMPLOYEES. THIS BOARD STRUCTURE HAS NOT CHANGED SIGNIFICANTLY SINCE THE ORGANIZATION APPLIED FOR EXEMPT STATUS. EHSHHCS IS SUBJECT TO THE POLICIES AND PROCEDURES OF ADVOCATE HEALTH CARE AND OVERSIGHT BY THE ADVOCATE HEALTH CARE NETWORK COMMUNITY BOARD MEMBERS. FORM 990, PART VI, SECTION A, LINE 1A BOARD POWERS THE BYLAWS PROVIDE THAT AN EXECUTIVE COMMITTEE MAY BE APPOINTED. HOWEVER NO EXECUTIVE COMMITTEE HAS BEEN FORMED NOR DID SUCH A COMMITTEE HOLD AUTHORITY AT ANY TIME DURING 2013. FORM 990, PART VI, LINE 2 DISCLOSURE AS GAIL HASBROUCK AND JAMES DOHENY ARE EITHER DIRECTORS OR OFFICERS OF WHOLLY OWNED ADVOCATE ENTITIES, THEY ARE DEEMED TO HAVE A BUSINESS RELATIONSHIP PURSUANT TO THE INSTRUCTIONS FOR FORM 990. AS GAIL HASBROUCK, JAMES DOHENY, AND KAREN LAMBERT ARE EITHER DIRECTORS OR OFFICERS OF WHOLLY OWNED ADVOCATE ENTITIES, THEY ARE DEEMED TO HAVE A BUSINESS RELATIONSHIP PURSUANT TO THE INSTRUCTIONS FOR FORM 990. AS GAIL HASBROUCK, JAMES DOHENY, AND DENISE KEEFE ARE EITHER DIRECTORS OR OFFICERS OF WHOLLY OWNED ADVOCATE ENTITIES, THEY ARE DEEMED TO HAVE A BUSINESS RELATIONSHIP PURSUANT TO THE INSTRUCTIONS FOR FORM 990. AS GAIL HASBROUCK, JAMES DOHENY, DENISE KEEFE, AND KEITH RANCINE ARE EITHER DIRECTORS OR OFFICERS OF WHOLLY OWNED ADVOCATE ENTITIES, THEY ARE DEEMED TO HAVE A BUSINESS RELATIONSHIP PURSUANT TO THE INSTRUCTIONS FOR FORM 990. FORM 990, PART VI, LINE 6 DESCRIPTION OF CLASSES OF MEMBERS OR SHAREHOLDERS BYLAWS PROVIDE FOR CORPORATE MEMBERS. FORM 990, PART VI, LINE 7A DESCRIPTION OF CLASSES OF PERSONS AND THE NATURE OF THEIR RIGHTS EHS HOME HEALTH SERVICE, INC. HAS CORPORATE MEMBERS WHO ELECT ITS DIRECTORS. FORM 990, PART VI, SECTION A, LINE 7B RESERVE POWERS THE FOLLOWING RESERVE POWERS IDENTIFIED IN THE BYLAWS REQUIRE THE APPROVAL OF THE CORPORATE MEMBER, ADVOCATE HEALTH AND HOSPITALS CORPORATION: THE AMENDMENT OR RESTATEMENT OF THE ARTICLES OF INCORPORATION OF THE CORPORATION OR THE BYLAWS; THE MERGER, CONSOLIDATION, DISSOLUTION OR WINDING UP OF THE CORPORATION; THE CONTRACTING OF LOANS OR ISSUING OF EVIDENCES OF INDEBTEDNESS; THE MAKING OF INVESTMENTS; THE SALE OR PURCHASE BY, TRANSFER TO OR BY, OR LEASING TO OR BY THE CORPORATION, OF ASSETS WITH AN AGGREGATE VALUE IN EXCESS OF ONE HUNDRED FIFTY THOUSAND DOLLARS; THE PAYMENT OF A CLAIM OR SETTLEMENT IN EXCESS OF THREE MILLION DOLLARS; THE ADOPTION OF CAPITAL AND OPERATING BUDGETS; ANY OTHER MATTERS WHICH MAY BE SPECIFIED FROM TIME TO TIME BY THE CORPORATE MEMBER BY AMENDMENT TO THE BYLAWS; AND SUCH OTHER MATTERS AS MAY BE REQUIRED BY LAW TO BE SUBMITTED TO THE CORPORATE MEMBER, OR AS TO WHICH THE BOARD OF DIRECTORS DETERMINES BY RESOLUTION THAT SUCH SUBMISSION IS ADVISABLE. FORM 990, PART VI, LINE 11B TAX PREPARATION PROCESS ADVOCATE'S TAX PREPARATION PROCESS INCLUDES ONGOING CONSULTATION WITH ITS OUTSIDE TAX CONSULTING FIRM AND TAX LEGAL COUNSEL, BOTH OF WHICH POSSESS EXPERTISE IN HEALTH CARE AND TAX-EXEMPT RETURN PREPARATION, TO ADVISE AND ASSIST WITH PREPARATION OF THE FORM 990. THESE ADVISORS WORKED CLOSELY WITH THE ORGANIZATION'S FINANCE, TAX, AND LEGAL ASSOCIATES AND OTHER MEMBERS OF THE ORGANIZATION'S TEAM ASSEMBLED TO PARTICIPATE IN THE PREPARATION OF THE FORM 990. THE FORM 990 IS REVIEWED BY FINANCE MANAGEMENT, THE TAX MANAGER, THE VP OF FINANCE / CORPORATE CONTROLLER, THE CHIEF FINANCIAL OFFICER, AND ADVOCATE'S OUTSIDE TAX CONSULTING FIRM AND TAX LEGAL COUNSEL. PRIOR TO PRESENTING THE FORM 990 TO THE BOARD OF DIRECTOR'S AUDIT COMMITTEE IN NOVEMBER, THE ORGANIZATION'S TEAM, INCLUDING ITS ADVISORS, MET FREQUENTLY TO DISCUSS AND REVIEW DRAFTS OF THE FORM 990. AT THE NOVEMBER AUDIT COMMITTEE MEETING, THE VP OF FINANCE / CORPORATE CONTROLLER AND CHIEF FINANCIAL OFFICER COORDINATED A REVIEW OF THE FORM 990 WITH COMMITTEE MEMBERS, AS THE AUDIT COMMITTEE IS THE COMMITTEE OF THE BOARD OF DIRECTORS CHARGED WITH OVERSIGHT OF AUDIT AND TAX MATTERS. THE VP OF FINANCE / CORPORATE CONTROLLER AND CHIEF FINANCIAL OFFICER RESPONDED TO THE AUDIT COMMITTEE MEMBERS' QUESTIONS AND PROVIDED THE OPPORTUNITY FOR DETAILED DISCUSSION OF THE FORM 990. THE CHANGES IDENTIFIED WERE INCORPORATED, AND THEN A COMPLETE COPY OF THE FINAL FORM 990 WAS PROVIDED TO EACH MEMBER OF THE ORGANIZATION'S BOARD OF DIRECTORS BEFORE THE FORM 990 WAS FILED. FORM 990, PART VI, LINE 12C CONFLICT OF INTEREST POLICY THE ORGANIZATION'S CONFLICT OF INTEREST POLICY APPLIES TO VARIOUS PEOPLE, INCLUDING MEMBERS OF ADVOCATE'S BOARD OF DIRECTORS, GOVERNING COUNCILS, OFFICERS, ASSOCIATES, VOLUNTEERS, AND MEDICAL STAFF MEMBERS WITH ADMINISTRATIVE RESPONSIBILITIES. ANNUALLY, THE COMPLIANCE DEPARTMENT SENDS THIS POLICY AND THE ADVOCATE CODE OF BUSINESS CONDUCT TO A RANGE OF INDIVIDUALS WHO MAY BE IN A POSITION TO EXERCISE SUBSTANTIAL INTEREST OVER A PARTICULAR MATTER (DEFINED AS 'INTERESTED PERSONS'). THEY ARE REQUIRED TO READ THE POLICIES AND PROVIDE A DISCLOSURE STATEMENT TO THE COMPLIANCE DEPARTMENT, WHICH IDENTIFIES ACTIVITIES AND RELATIONSHIPS THAT COULD POTENTIALLY GIVE RISE TO A CONFLICT OF INTEREST. THE CHIEF COMPLIANCE OFFICER REVIEWS THE DISCLOSURES AND PROVIDES A REPORT TO THE SYSTEM BUSINESS CONDUCT (COMPLIANCE) COMMITTEE, EXECUTIVE MANAGEMENT TEAM AND THE AUDIT COMMITTEE OF THE BOARD FOR REVIEW. THE REPORT IS THEN PROVIDED, IN RELEVANT PART, TO THE SITE CHIEF EXECUTIVE OFFICERS. POTENTIAL CONFLICTS ARE REVIEWED BY THE COMPLIANCE DEPARTMENT ON A CASE BY CASE BASIS. FOLLOW UP PROCEDURES CONDUCTED ARE UNIQUE TO THE GIVEN CIRCUMSTANCE, AND MAY INCLUDE REVIEWING THE POTENTIAL CONFLICT WITH THE INTERESTED PERSON, OR INVESTIGATING THE MATTER IN CONSULTATION WITH THE INTERESTED PERSON'S SUPERVISOR AND/OR SITE MANAGEMENT. IN CIRCUMSTANCES WHERE THE INTERESTED PERSON IS NOT A MEMBER OF THE BOARD, OR GOVERNING COUNCIL, OR A COMMITTEE THEREOF, OR A PERSON OF INTEREST, IF IT IS DETERMINED THAT THERE IS AN ACTUAL CONFLICT OF INTEREST, THE SUPERVISOR OF THE INDIVIDUAL IS RESPONSIBLE FOR MAKING AN APPROPRIATE RESPONSE, POTENTIALLY INCLUDING A RESTRICTION OF THE INDIVIDUAL'S JOB DUTIES WITH RESPECT TO THE MATTER GIVING RISE TO THE CONFLICT. FORM 990, PART VI, LINE 15A & 15B OFFICES & POSITIONS FOR WHICH PROCESS WAS USED & YEAR PROCESS WAS BEGUN EXECUTIVE COMPENSATION AT ADVOCATE HEALTH CARE NETWORK AND SUBSIDIARIES IS BASED ON A BOARD OF DIRECTORS' APPROVED STRATEGY THAT GUIDES THE CORPORATION IN ESTABLISHING COMPENSATION OPPORTUNITIES FOR EXECUTIVES, MANAGERS, PROFESSIONALS AND EMPLOYEES. IN THIS STRATEGY, SPECIFIC MARKET COMPENSATIONS ARE IDENTIFIED AND THE DESIRED LEVEL OF COMPETITIVENESS IN THOSE MARKETS SPECIFIED. IN ADDITION, THE LINKAGE OF EXECUTIVE PAY TO PERFORMANCE IS ARTICULATED AND HOW THIS RELATIONSHIP IS TO BE MAINTAINED IS OUTLINED. TO SUPPORT AND IMPLEMENT THE COMPENSATION STRATEGY, FIVE BASIC ELEMENTS ARE UTILIZED. THESE ELEMENTS ARE: - A SOLID, RELIABLE AND TESTED JOB EVALUATION METHODOLOGY, - ACCURATE, QUALITY AND RELEVANT COMPENSATION SURVEY INFORMATION, - A CONSISTENT ANNUAL PROCESS FOR UPDATING THE COMPENSATION LEVELS, - AN ACTIVE BOARD REVIEW PROCESS THAT ASSURES COMPLIANCE WITH THE COMPENSATION STRATEGY AND ON-GOING REVIEW OF THE PERFORMANCE OF THE ORGANIZATION, AND - ACTIVE, EXTERNAL REVIEW AND AUDITING OF COMPENSATION BY EXTERNAL INDEPENDENT CONSULTANTS. FORM 990, PART VI, LINE 19 AVAIL. OF DOCS, CONFLICT OF INTEREST POLICY, & FIN STMTS TO GEN PUBLIC THE ORGANIZATION MAKES ITS FINANCIAL STATEMENTS AVAILABLE TO THE PUBLIC THROUGH THE FOLLOWING WEBSITES: - DACBOND.COM (DIGITAL ASSURANCE CERTIFICATION LLC), - EMMA.MSRB.ORG (ELECTRONIC MUNICIPAL MARKET ACCESS). THE ORGANIZATION DOES NOT MAKE ITS GOVERNING DOCUMENTS OR CONFLICT OF INTEREST POLICY AVAILABLE TO THE PUBLIC. FORM 990, PART IX, LINE 11G THE BREAKDOWN OF LINE 11G: TEMP HELP $10,881,627 CONSULTING FEES $114,969 CONTRACT SERVICES $270,156 ----------- TOTAL $11,266,752 FORM 990, PART IX, LINE 21 TRANSFERS TO AFFILIATES ADVOCATE HEALTH & HOSPITALS CORPORATION IS A PAYING AGENT FOR EHS HOME HEALTH CARE SERVICE, INC. AND THEREFORE, ALL PAYMENTS TO AFFILIATES ARE REIMBURSEMENTS FOR GOODS AND SERVICES OF EHS HOME HEALTH CARE SERVICE, INC. FORM 990, PART XI, LINE 9 OTHER CHANGES IN NET ASSETS CONTRIBUTION TO AHHC ($5,000,000) FAIR VALUE OF NET ASSETS ACQUIRED (SHERMAN HOME CARE $465,493 ---------- TOTAL ($4,534,507) ADVOCATE HEALTH CARE NETWORK 3075 HIGHLAND PARKWAY STE 600 DOWNERS GROVE IL 60515 362167779 PARENT CORP IL 501(C)(3) 11-III-FI NA false ADVOCATE CONDELL MEDICAL CENTER 3075 HIGHLAND PARKWAY STE 600 DOWNERS GROVE IL 60515 262525968 HEALTH CARE IL 501(c)(3) 3 AHHC false ADVOCATE NORTH SIDE HEALTH NETWORK 3075 HIGHLAND PARKWAY STE 600 DOWNERS GROVE IL 60515 363196629 HEALTH CARE IL 501(c)(3) 3 AHHC false ADVOCATE HEALTH & HOSPITALS CORPORATION 3075 HIGHLAND PARKWAY STE 600 DOWNERS GROVE IL 60515 362169147 HEALTH CARE IL 501(c)(3) 3 AHCN false MERIDIAN HOSPICE 3075 HIGHLAND PARKWAY STE 600 DOWNERS GROVE IL 60515 363158667 HOSPICE CARE IL 501(c)(3) 9 EHSHHCS true ADVOCATE CHARITABLE FOUNDATION 3075 HIGHLAND PARKWAY STE 600 DOWNERS GROVE IL 60515 363297360 FUNDRAISING IL 501(c)(3) 7 AHCN false HISPANO CARE INC 3075 HIGHLAND PARKWAY STE 600 DOWNERS GROVE IL 60515 363606486 HEALTH CARE IL 501(c)(3) 9 ANSHN true ADVOCATE SHERMAN HOSPITAL 3075 HIGHLAND PARKWAY STE 600 DOWNERS GROVE IL 60515 362167920 HEALTH CARE IL 501(C)(3) 3 AHCN false SHERMAN WEST COURT 3075 HIGHLAND PARKWAY STE 600 DOWNERS GROVE IL 60515 363725580 NURSING CARE IL 501(C)(3) 9 ASH false SHERMAN HOME HEALTH CARE CORPORATION 901 CENTER STREET SUITE 2001A ELGIN IL 60120 363330085 HOME CARE IL 501(C)(3) 9 ASH false DREYER MERCY AMBULATORY SURGRY 1221 N HIGHLND AVE AURORA IL 60506 363890298 MEDICAL SERVICES IL NA ADVOCATE HEALTH CENTERS INC 3075 HIGHLAND PARKWAY STE 600 DOWNERS GROVE IL 60515 364217291 MEDICAL SERVICES IL NA C CORP EVANGELICAL SERVICES CORPORATION 3075 HIGHLAND PARKWAY STE 600 DOWNERS GROVE IL 60515 363208101 MGMT SERVICES IL NA C CORP ADVOCATE INSURANCE SPC 878 WEST BAY ROAD PO BOX 1159 GRAND CAYMAN CJ KY1-1102 980422925 INSURANCE CJ NA C CORP ADVOCATE HOME CARE PRODUCTS INC 3075 HIGHLAND PARKWAY STE 600 DOWNERS GROVE IL 60515 363315416 HEALTH SERVICES IL NA C CORP HIGH TECHNOLOGY INC 3075 HIGHLAND PARKWAY STE 600 DOWNERS GROVE IL 60515 363368224 MEDICAL SERVICES IL NA C CORP CENTER FOR ENDOSCOPY LLC 22285 PEPPER ROAD LAKE BARRINGTON IL 60010 262387298 HEALTH SERVICES IL NA C CORP MIDWEST HEART SPECIALISTS LTD 3075 HIGHLAND PARKWAY STE 600 DOWNERS GROVE IL 60515 362841923 MEDICAL SERVICES IL NA C CORP PARKSIDE CENTER CONDO ASSOCIATION 1775 WEST DEMPSTER ST PARK RIDGE IL 60068 363452486 PROPERTY MGMT IL NA C CORP DREYER CLINIC INC 1877 W DOWNER PLACE AURORA IL 60506 362690329 MEDICAL SERVICES IL NA C CORP BROMENN PHYSICIAN MANAGEMENT CORPORATION 3075 HIGHLAND PARKWAY STE 600 DOWNERS GROVE IL 60515 371313150 MEDICAL SERVICES IL NA C CORP SHERMAN HEALTH INSURANCE COMPANY LTD 878 WEST BAY ROAD PO BOX 1159 GRAND CAYMAN CJ KY1-1102 980703036 INSURANCE CJ NA C CORP HEALTH VISIONS INC 3075 HIGHLAND PARKWAY STE 600 DOWNERS GROVE IL 60515 363780082 MEDICAL SERVICES IL NA C CORP SHERMAN GROUP PRACTICE INC 3075 HIGHLAND PARKWAY STE 600 DOWNERS GROVE IL 60515 262891035 MEDICAL SERVICES IL NA C CORP SHERMAN PHYSICIAN GROUP INC 3075 HIGHLAND PARKWAY STE 600 DOWNERS GROVE IL 60515 264800497 MEDICAL SERVICES IL NA C CORP SHERMANCHOICE INC 1425 N RANDALL ROAD ELGIN IL 60123 364058392 PHYS-HOSP-ORGN IL NA C CORP THE DELPHI GROUP IV INC 1425 N RANDALL ROAD ELGIN IL 60123 364017279 HEALTH COST MGT IL NA C CORP SHERMAN VENTURES INC 934 CENTER STREET ELGIN IL 60120 364292309 HOLDING COMPANY IL NA C CORP true true true false false false false false false true true true true false false true true false false MERIDIAN HOSPICE A 187131 COST ADVOCATE HEALTH & HOSPITALS CORP B 8000000 COST MERIDIAN HOSPICE C 3000000 COST ADVOCATE HEALTH & HOSPITALS CORP K 157951 COST ADVOCATE HEALTH & HOSPITALS CORP L 380902 COST MERIDIAN HOSPICE L 1924110 COST ADVOCATE HEALTH & HOSPITALS CORP M 1689205 COST ADVOCATE HEALTH & HOSPITALS CORP P 8140084 COST ADVOCATE HEALTH & HOSPITALS CORP Q 741161 COST MERIDIAN HOSPICE Q 712504 COST