2013-05-13T13:05:29-05:00 2012-06-30 251408703 SCHNEIDER DOWNS & CO INC 1133 PENN AVENUE PITTSBURGH PA 15222 990 2011-07-01 232935278 CHILDRENS INSTITUTE OF PITTSBURGH CHIL 4124202400 1405 SHADY AVENUE PITTSBURGH PA 152171360 DAVID K MILES 4124202400 2013-05-10 1 SUSAN M KIRSCH P00341397 4122613644 2011 2016-02-25 16:41:14Z DAVID K MILES 1405 SHADY AVENUE PITTSBURGH PA 152171360 44084952 0 X WWW.AMAZINGKIDS.ORG X 1998 PA POST-ACUTE CARE PEDIATRIC SPECIALTY INPATIENT AND OUTPATIENT HOSPITAL SERVICES, APPROVED PRIVATE SCHOOL GRADES K-12 AND A SOCIAL SERVICE AGENCY PROVIDING INTENSIVE FAMILY SUPPORT, FOSTER CARE AND ADOPTION SERVICES. 26 24 670 346 7748 -39958 1321488 2272099 36673044 38695739 3915226 3102392 0 0 41909758 44070230 0 0 0 0 28868394 29674911 82500 0 885800 13157498 14064828 42108392 43739739 -198634 330491 155600600 150621748 43547824 59631349 112052776 90990399 X THE CHILDREN'S INSTITUTE OF PITTSBURGH IS DEDICATED TO IMPROVING QUALITY OF LIFE FOR CHILDREN, YOUNG PEOPLE AND THEIR FAMILIES BY PROVIDING A SPECIALIZED CONTINUUM OF SERVICES THAT ENABLES THEM TO REACH THEIR POTENTIAL. 0 0 38631288 38695739 THE CHILDREN'S INSTITUTE IS A LEADING CENTER FOR PEDIATRIC REHABILITATION, COMPLEX MEDICAL CARE, EDUCATION FOR CHILDREN WITH SPECIAL NEEDS AND FAMILY PLACEMENT, PRESERVATION, REUNIFICATION AND ENRICHMENT SERVICES. ESTABLISHED IN 1902, THE CHILDREN'S INSTITUTE IS AN INDEPENDENT, NONPROFIT, LICENSED ORGANIZATION IN PITTSBURGH DEDICATED TO IMPROVING THE QUALITY OF LIFE FOR CHILDREN, YOUNG PEOPLE AND THEIR FAMILIES BY PROVIDING A SPECIALIZED CONTINUUM OF SERVICES THAT ENABLES THEM TO MEET THEIR POTENTIAL. THE UNIQUE, COMPREHENSIVE APPROACH SETS THE ORGANIZATION APART FROM OTHERS IN WESTERN PENNSYLVANIA. THE CHILDREN'S INSTITUTE PROVIDES PEDIATRIC REHABILITATION THROUGH THE HOSPITAL; EDUCATIONAL PROGRAMMING THROUGH THE DAY SCHOOL; AND ADOPTION AND FAMILY ENRICHMENT SERVICES THROUGH PROJECT STAR. IN FISCAL YEAR 2012, WE SERVED 5,821 CHILDREN AND THEIR FAMILIES AND PROVIDED $3,136,886 IN UNCOMPENSATED CARE. THE HOSPITAL AT THE CHILDREN'S INSTITUTE OF PITTSBURGH IS ONE OF THE NATION'S PREMIER PEDIATRIC REHABILITATION SPECIALTY HOSPITALS. IT IS ACCREDITED BY THE COMMISSION FOR ACCREDITATION OF REHABILITATION FACILITIES AND LICENSED BY THE PENNSYLVANIA DEPARTMENT OF HEALTH. IN FISCAL YEAR 2012, THE HOSPITAL PROVIDED INPATIENT AND OUTPATIENT SERVICES FOR 3,969 CHILDREN AND YOUNG ADULTS THROUGH COMPREHENSIVE, STATE-OF-THE-SCIENCE CARE. THE 72-BED INPATIENT UNIT CATERS TO CHILDREN WITH A VARIETY OF DISORDERS, RANGING FROM NEWBORNS WITH CONGENITAL ANOMALIES TO ADOLESCENTS WITH BRAIN INJURIES. OUTPATIENT SERVICES ARE OFFERED FOR A VARIETY OF DIAGNOSES RESULTING FROM INJURY, ILLNESS AND DEVELOPMENTAL DISABILITY. DEPENDING ON THE CHILD'S NEEDS, THERAPY MAY INVOLVE A SINGLE SERVICE OR IT MAY INVOLVE A RANGE OF SERVICES. WIDELY REGARDED AS A PIONEER IN THE DEVELOPMENT AND DELIVERY OF LEADING-EDGE, INTERDISCIPLINARY SERVICES, THE HOSPITAL IS THE ONLY FREE-STANDING PEDIATRIC REHABILITATION SPECIALTY HOSPITAL IN PENNSYLVANIA AND ONE OF ONLY 20 IN THE COUNTRY. SEVERAL OF OUR HOSPITAL PROGRAMS ATTRACT PATIENTS FROM ACROSS THE COUNTRY AND ON OCCASION FROM AROUND THE WORLD. THE DAY SCHOOL, LONG REGARDED AS A NATIONAL LEADER IN THE EDUCATION OF CHILDREN WITH DISABILITIES, IS LICENSED BY THE PENNSYLVANIA DEPARTMENT OF EDUCATION AS AN APPROVED PRIVATE SCHOOL AND SERVES STUDENTS AGES FIVE TO 21 WHO ARE CHALLENGED BY COMPLEX AND SEVERE DISABILITIES INCLUDING AUTISM, CEREBRAL PALSY AND/OR NEUROLOGICAL IMPAIRMENT. IN FISCAL YEAR 2012, 189 CHILDREN FROM 67 SCHOOL DISTRICTS FROM SEVEN COUNTIES IN WESTERN PENNSYLVANIA WERE ENROLLED IN THE DAY SCHOOL.PROJECT STAR IS LICENSED BY THE PENNSYLVANIA DEPARTMENT OF PUBLIC WELFARE AS AN ADOPTION, FOSTER CARE AND PRIVATE CHILDREN AND YOUTH SOCIAL SERVICE AGENCY. IN FISCAL YEAR 2012, 1671 CLIENTS WERE SERVED EACH YEAR THROUGH FAMILY PLACEMENT, PRESERVATION AND ENRICHMENT SERVICES. AS AN AFFILIATE MEMBER OF THE STATEWIDE ADOPTION NETWORK (SWAN), PROJECT STAR MAINTAINS CONTRACTS WITH LOCAL, STATEWIDE, AND OUT-OF-STATE COUNTIES IN THE AREAS OF PLACEMENT SERVICES AND FAMILY PRESERVATION/REUNIFICATION SERVICES.IN ADDITION TO PROVIDING DIRECT CARE SERVICES, ADVANCING KNOWLEDGE IN PEDIATRIC REHABILITATION, SPECIAL EDUCATION AND FAMILY PLACEMENT AND PRESERVATION IS A SIGNIFICANT ASPECT OF OUR MISSION. THAT IS WHY, UNLIKE MANY ORGANIZATIONS OF OUR SIZE, WE ENGAGE IN TRANSLATIONAL AND OUTCOMES RESEARCH. CURRENTLY THERE ARE NEARLY TWO DOZEN STUDIES IN THE PIPELINE FROM DESIGN, TO DATA COLLECTION, ANALYSIS AND COMPLETION. PRINCIPAL INVESTIGATORS ARE STAFF PROFESSIONALS COLLABORATING ACROSS A WIDE RANGE OF DISCIPLINES. THE STUDIES, WHICH INVOLVE NOT ONLY THE HOSPITAL, BUT THE DAY SCHOOL AND PROJECT STAR, INCLUDE: DEVELOPING WAYS TO REDUCE THE OCCURRENCE OF PRESSURE SORES IN PATIENTS WITH SPINAL CORD INJURIES; EXAMINING THE SWALLOWING FUNCTION IN PATIENTS WITH PRADER-WILLI SYNDROME; USING COLLABORATIVE ROBOT PLAY TO IMPROVE THE COMMUNICATION SKILLS OF STUDENTS WHO HAVE AUGMENTATIVE COMMUNICATION DEVICES; AND DETERMINING WHETHER, AND TO WHAT DEGREE, FAMILY VISITATION IS MORE PRODUCTIVE IN A HOMELIKE SETTING.BEYOND RESEARCH, MEMBERS OF THE STAFF OF THE CHILDREN'S INSTITUTE CONTINUALLY SHARE THEIR PROFESSIONAL EXPERTISE WITH COLLEAGUES IN THE REGION AND ACROSS THE COUNTRY, INCLUDING AT THE FOLLOWING CONFERENCES AND EVENTS: INTERNATIONAL SOCIETY FOR TECHNOLOGY IN EDUCATION ANNUAL CONFERENCE; INTERNATIONAL MEDICAL CONFERENCE FOR AUTISM RESEARCH; NATIONAL ASSOCIATION FOR SCHOOL PSYCHOLOGISTS, NATIONAL CONVENTION; NATIONAL ASSOCIATION OF LONG TERM HOSPITALS, PHYSICIAN TRAINING CONFERENCE; CHILDREN'S HOSPITAL ASSOCIATION LEADERSHIP CONFERENCE; AND HOSPITAL ASSOCIATION OF PENNSYLVANIA, AMONG OTHERS. PRESENTATIONS AT CONFERENCES AND MEETINGS, LEADERSHIP IN ORGANIZATIONS THAT ADVOCATE AND INFORM, AND TEACHING TOMORROW'S PROFESSIONALS ARE ALL ACTIVITIES THAT ULTIMATELY BENEFIT KIDS AND FAMILIES EVERYWHERE. FOR THOSE IN THE PITTSBURGH AREA, THERE ALSO IS THE OPPORTUNITY TO ATTEND GRAND ROUNDS, A MONTHLY CONTINUING EDUCATION PROGRAM. SIGNIFICANT BOARD PLACEMENTS INCLUDE:- HOSPITAL COUNCIL OF WESTERN PA- CHILDREN'S HOSPITAL ASSOCIATION, EDUCATION COUNCIL- ABOARD'S AUTISM CONNECTION OF PA, PROFESSIONAL ADVISORY COUNCIL- AMERICAN COLLEGE OF HEALTHCARE EXECUTIVES, WESTERN PA CHAPTER- PA EHEALTH INITIATIVE ORGANIZATION, BOARD CHAIR- THE INTERNATIONAL PEDIATRIC REHABILITATION COLLABORATIVE, VICE CHAIR- MEDICAL LIBRARY ASSOCIATION, SPECIAL LIBRARIES ASSOCIATION- PITTSBURGH CHAPTER, PROFESSIONAL RECRUITMENT AND RETENTION COMMITTEETHE CHILDREN'S INSTITUTE HOSTS AND SPONSORS A NUMBER OF PROGRAMS FOR THE COMMUNITY. BECAUSE THE CHILDREN AND FAMILIES WE SERVE HAVE SPECIAL NEEDS, WE TAKE EXTRA CARE TO HELP THEM THROUGH CHALLENGING TIMES. FOR EXAMPLE, IN FISCAL YEAR 2012, WE LAUNCHED THE FAMILY ADVISORY COMMITTEE, WHICH IS COMPRISED OF PARENTS AND CAREGIVERS OF PATIENTS, STUDENTS AND PROJECT STAR CLIENTS. THE FAMILY ADVISORY COMMITTEE OFFERS ESSENTIAL CAREGIVER INPUT TO INFORM OUR PROGRAMS AND SERVICES. ADDITIONALLY, WE OFFER SUMMER PROGRAMS FOR CHILDREN WITH SPECIAL NEEDS. ONE OF OUR MOST NOTABLE SUMMER PROGRAMS IS CAMP SUCCESS, WHICH IS DESIGNED TO HELP AT-RISK CHILDREN FACING HUGE BARRIERS INCLUDING NEURODEVELOPMENTAL DISABILITIES, ECONOMIC CHALLENGES, FOSTER CARE SITUATIONS AND HOMELESSNESS. CHILDREN CAN ATTEND THE CAMP WITH THEIR SIBLINGS AT NO COST. ANOTHER SUCCESSFUL SUMMER PROGRAM IS THE AMAZING BIKE CAMP, A LOSE THE TRAINING WHEELS PROGRAM THAT TEACHES CHILDREN WITH SPECIAL NEEDS HOW TO RIDE A BIKE WITHOUT TRAINING WHEELS.THE REACH OF THE CHILDREN'S INSTITUTE GOES FAR BEYOND ITS OWN WORK BY PROVIDING SUPPORT FOR OTHER LIKE-MINDED ORGANIZATIONS SEEKING TO IMPROVE OUR COMMUNITY. FOR EXAMPLE, THE CHILDREN'S INSTITUTE ALLOWS A NUMBER OF OTHER COMMUNITY ORGANIZATIONS TO USE OUR FACILITY SPACE FOR MEETINGS AND ACTIVITIES AT NO CHARGE. MOST SIGNIFICANTLY, THE CHILDREN'S INSTITUTE SERVES AS THE HOST AND FIDUCIARY AGENT FOR WOMEN FOR A HEALTHY ENVIRONMENT. THE ORGANIZATION EDUCATES AND EMPOWERS WOMEN TO BE AMBASSADORS ABOUT ENVIRONMENTAL RISKS SO THAT THEY CAN MAKE HEALTHY CHOICES FOR THEMSELVES AND THEIR FAMILIES AND ADVOCATE FOR CHANGE FOR A BETTER TOMORROW FOR ALL.THE CHILDREN'S INSTITUTE'S RELATIVELY SMALL SIZE BELIES THE SCOPE AND IMPACT OF OUR WORK ON A REGIONAL, NATIONAL AND INTERNATIONAL LEVEL. OUR CLINICAL, EDUCATION AND FAMILY SUPPORT COMPONENTS ARE INEXTRICABLY RELATED, THEREBY PROVIDING AN UNDUPLICATED, COMPREHENSIVE NETWORK OF SERVICES UNLIKE ANY OTHER PROVIDER. FOR MORE THAN A CENTURY, WE HAVE CONTINUOUSLY EVOLVED TO MEET THE NEEDS OF CHILDREN AND YOUTH WITH SPECIAL NEEDS AND THEIR FAMILIES. BASED ON OUR UNWAVERING COMMITMENT TO THE CHILDREN WE SERVE, WE CONTINUE TO RESPOND NIMBLY TO EMERGING NEEDS - DEVELOPING NEW TREATMENTS, CREATING SOLUTIONS, PUBLISHING AND SHARING OUR KNOWLEDGE AND EXPERTISE IN ORDER TO MEET THE NEEDS IN THE COMMUNITY. 38631288 1 1 0 1 0 0 0 0 0 1 1 1 0 0 1 0 1 0 0 0 1 0 0 0 0 0 1 1 0 0 1 1 0 0 0 0 0 0 0 0 0 1 1 0 0 0 0 0 0 0 0 0 1 57 1 1 670 1 1 1 0 0 0 0 0 0 0 0 0 X 26 24 0 0 1 0 0 0 0 1 1 0 0 1 1 1 1 1 1 1 1 0 PA X X JODY MULVIHILL 4124202308 1405 SHADY AVENUE PITTSBURGH PA 152171350 GREGORY B BENCKART 1.00 X 0 0 0 CHRISTINA CARDOSO 1.00 X 0 0 0 PATRICIA S CHESKO 1.00 X 0 0 0 N JOHN COOPER 1.00 X 0 0 0 JOHN R DENNY 2.00 X 0 0 0 CAROLYN D DURONIO 1.00 X 0 0 0 SHAWN FOX 1.00 X 0 0 0 HOLLY HATCHER-FRAZIER 1.00 X 0 0 0 JOSEPH E IMBRIGLIA MD 1.00 X 0 0 0 JAY KATARINCIC 1.00 X 0 0 0 ELLEN P KESSLER 1.00 X 0 0 0 PRADEEP K KHOSLA PHD 1.00 X 0 0 0 JAMES MARCZAK 1.00 X 0 0 0 ALLAN MACDOUGALL III 1.00 X 0 0 0 B GORDON NELSON III 1.00 X 0 0 0 MORGAN K O'BRIEN 1.00 X 0 0 0 F BROOKS ROBINSON JR 1.00 X 0 0 0 SUSAN BAKER SHIPLEY 1.00 X 0 0 0 MERRILL P STABILE 1.00 X 0 0 0 NITA WADHWANI 1.00 X 0 0 0 MICHAEL J HANNON 2.00 X X 0 0 0 J KEEFE ELLIS JR 2.00 X X 0 0 0 PAMELA W GOLDEN 2.00 X X 0 0 0 JOHN K THORNBURGH 1.00 X X 0 0 0 LISA C FAGAN 1.00 X X 0 0 0 MICHELE M MCKENNEY 1.00 X X 0 0 0 DAVID K MILES 50.00 X X 277744 0 16215 JODY MULVIHILL 45.00 X 160064 0 8667 JANE TEITZ-KEIM 45.00 X 191825 0 15898 MARYANNE HENDERSON 40.00 X 220038 0 30318 TIMOTHY J BITTNER 40.00 X 174914 0 17980 CHERYL A FOGARTY 40.00 X 167692 0 9715 CYNTHIA SMITH MD 40.00 X 187327 0 3256 RACHNA KAPOOR MD 40.00 X 132849 0 7664 SCOTT FABER MD 40.00 X 167194 0 17843 GREGORY CHERPES MD 40.00 X 175002 0 9391 ANDREW DRAZDIK 40.00 X 169064 0 17727 2023713 0 154674 16 0 1 0 MORRISON MANAGEMENT PO BOX 102289 ATLANTA GA 30368 FOOD SERVICE 916663 SIEMANS MEDICAL SOLUTIONS 51 VALLEY STREAM PARKWAY MALVERN PA 19355 ELECTRONIC HEALTH RECORD 780569 CROTHALL 955 CHESTERBROOK BLVD SUITE 300 WAYNE PA 19087 HOUSEKEEPING SERVICES 714941 ENGAUGE MARKETING ONE GATEWAY CTR 420 FT DUQUESNE B PITTSBURGH PA 15222 ADVERTISING 508004 DUQUESNE UNIVERSITY 600 FORBES AVENUE PITTSBURGH PA 15282 CONSULTING 388080 17 74285 99836 2097978 233806 2272099 PATIENT CARE 900099 13236128 13236128 DAY SCHOOL 900099 11965073 11965073 MEDICARE/MEDICAID PMTS 900099 10606642 10606642 PROJECT STAR 900099 2800052 2800052 DEPARTMENTAL ACTIVITIE 900099 87844 87844 38695739 774630 7748 766882 2342484 0 14722 2342484 -14722 2327762 2327762 44070230 38695739 7748 3094644 1020872 679170 244363 97339 21434534 20124439 986851 323244 344917 319546 18911 6460 5279920 4891535 289494 98891 1594668 1477366 87434 29868 209491 209491 118156 8156 110000 121319 121319 665167 665167 5144432 4769515 182436 192481 145509 5169 97415 42925 2539426 2402745 103141 33540 630652 547597 68652 14403 733318 607529 118864 6925 189565 186850 1524 1191 145166 126762 11316 7088 80220 35334 44886 2834297 2416824 397714 19759 403938 403938 MEMBERSHIP DUES 96046 24625 59735 11686 MISC NON-OPERATING EXPS 8126 8126 43739739 38631288 4222651 885800 2030 2230 3558040 2570663 1425734 881960 4897756 6336671 46709 59737 467064 385906 51015775 22243147 28302591 28772628 98539295 92790167 18178329 18652469 183052 169317 155600600 150621748 4290446 5413821 12434 89544 22920000 22270000 1350000 2300000 14974944 29557984 43547824 59631349 X 108446502 88087364 2656080 1952841 950194 950194 112052776 90990399 155600600 150621748 X 330491 -21392868 X X 0 1 1 X 1 1 X RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED 121319 121319 43618420 43739739 1000000 250000 0 0 1000000 1000000 1000000 1000000 4000000 6000000 121993 121404 122431 121319 487147 250000 250000 250000 250000 1000000 1500000 950194 950194 950194 950194 950194 950194 950194 950194 1.00000 0 0 1726863 1726863 30035255 11516009 18519246 1148619 300852 847767 12075509 9971035 2104474 6029529 455251 5574278 28772628 OTHER, PRIMARILY LIMITED PARTNERSHIPS 8529358 F HEDGE FUNDS 10123111 F 18652469 FISCHER FUND PAYABLE 48597 PENSION RELATED LIABILITY 29509387 29557984 44070230 43739739 330491 -5189957 -16202911 -21392868 -21062377 22053688 -5189957 -16826585 -22016542 44070230 0 44070230 43116065 0 43116065 623674 623674 43739739 PART XI, LINE 8 - OTHER ADJUSTMENTS: CHANGES IN UNRECOGNIZED PENSION BENEFIT PLAN COSTS -16,202,911. PART XII, LINE 2D - OTHER ADJUSTMENTS: RECLASSED FUNDRAISING EXPENSE -623,674. UNREALIZED GAIN ON PENSION BENEFIT PLAN COSTS -16,202,911. PART XIII, LINE 4B - OTHER ADJUSTMENTS: RECLASSED FUNDRAISING EXPENSE 623,674. CENTRAL AMERICA AND THE CARIBBEAN - 0 0 FOREIGN INVESTMENTS N/A 28795838 0 0 0 0 0 0 28795838 0 28795838 1 0 1 1 0 0 1 1 X 1 X 1 X 1 1 0 1 1 129296 129296 0.00300 10238676 8340238 1898438 0.04340 2519503 2266404 253099 0.00580 12887475 10606642 2280833 0.05220 16668134 14710214 1957920 0.04480 473381 221026 252355 0.00580 944805 944805 0.02160 30500 30500 0.00070 18116820 14931240 3185580 0.07290 31004295 25537882 5466413 0.12510 0 15270 2266404 2519503 -253099 X 1 1 1 1 THE CHILDREN'S INSTITUTE OF PITTSBURGH

1405 SHADY AVENUE PITTSBURGH PA 15217

X X X THE CHILDREN'S INSTITUTE OF PITTSBURGH 1 1 X X X X X X X X X X 11 1 0 1 X X X X X X X X X X X 0 1 1 200.000000000000 0 1 X X 1 1 X X X 1 0 0 X 0 0 PART III, LINE 4: IN JULY 2011, THE FASB ISSUED AN ASU - PRESENTATION AND DISCLOSURE OF PATIENT SERVICE REVENUE, PROVISIONS FOR BAD DEBTS, AND THE ALLOWANCE FOR DOUBTFUL ACCOUNTS FOR CERTAIN HEALTH CARE ENTITIES WHICH AMENDED ACCOUNTING STANDARDS CODIFICATION TOPIC HEALTH CARE ENTITIES TO PROVIDE GREATER TRANSPARENCY REGARDING A HEALTH CARE ENTITY'S NET PATIENT REVENUE AND THE RELATED ALLOWANCE FOR DOUBTFUL ACCOUNTS. THIS UPDATE REQUIRES CERTAIN HEALTH CARE ENTITIES TO CHANGE THE PRESENTATION OF THE PROVISION FOR BAD DEBTS ASOCIATED WITH PATIENT SERVICE REVENUE BY RECLASSIFYING THE PROVISION FROM OPERATING EXPENSES TO A DEDUCTION FROM NET PATIENT REVENUE AND REQUIRES ENHANCED DISCLOSURES ABOUT NET PATIENT REVENUE AND POLICY FOR RECOGNIZING REVENUE AND ASSESSING BAD DEBTS. CI HAS ADOPED THIS UPDATE AND THE ADOPTION DID NOT HAVE A MATERIAL IMPACT ON CI'S FINANCIAL STATEMENTS.THE AMOUNT OF BAD DEBT ACCOUNTED FOR UNDER GAAP IS $15,270. PART III, LINE 8: THE MEDICARE SHORTFALL REPORTED IN SECTION B LINE 7 WAS NOT TREATED AS COMMUNITY BENEFIT. PART III, LINE 9B: AS PART OF THE BILLING PROCESS, A CHARITY CARE FORM IS SENT TO THE PATIENT'S FAMILY/REPRESENTATIVE ON THE FIRST, SECOND AND FOURTH BILL. ABSENT A RESPONSE FROM A PATIENT'S FAMILY REGARDING THEIR ELIGIBILITY FOR CHARITY CARE, DELINQUENT ACCOUNTS ARE FORWARDED TO A COLLECTION AGENCY. IF AT ANY POINT IN THE PROCESS THE FAMILY PROVIDES INFORMATION REGARDING THEIR FINANCIAL INABILITY TO PAY, THE ACCOUNT IS EVALUATED FOR CHARITY CARE AND FINANCIAL ASSISTANCE. THE CHILDREN'S INSTITUTE OF PITTSBURGH PART V, SECTION B, LINE 1J: SEE THE COMMUNITY HEALTH NEEDS ASSESSMENT FOR THE CHILDREN'S INSTITUTE OF PITTSBURGH, A COPY OF WHICH IS ATTACHED TO THIS 990. THE CHILDREN'S INSTITUTE OF PITTSBURGH PART V, SECTION B, LINE 3: SEE THE COMMUNITY HEALTH NEEDS ASSESSMENT FOR THE CHILDREN'S INSTITUTE OF PITTSBURGH, A COPY OF WHICH IS ATTACHED TO THIS 990. THE CHILDREN'S INSTITUTE OF PITTSBURGH PART V, SECTION B, LINE 6I: SEE THE COMMUNITY HEALTH NEEDS ASSESSMENT FOR THE CHILDREN'S INSTITUTE OF PITTSBURGH, A COPY OF WHICH IS ATTACHED TO THIS 990. PART VI, LINE 2: DURING THE STRATEGIC PLANNING PROCESS, THE MANAGEMENT TEAM OF THE CHILDREN'S INSTITUTE IDENTIFIES COMMUNITY NEEDS. THE SERVICE NUMBERS, NUMBER OF REFERRALS AND WAIT LISTS FOR EACH PROGRAM ARE EVALUATED TO DETERMINE IF THERE IS A DEMAND FOR THE SERVICES AND WHETHER OR NOT WE ARE SUFFICIENTLY MEETING THAT DEMAND. A CONSUMER ASSESSMENT ALSO IS CONDUCTED, WHICH PROVIDES INSIGHT INTO WHO IS CURRENTLY USING THE CHILDREN'S INSTITUTE'S SERVICES AND THE NEEDS OF THOSE CONSUMERS. EXTERNALLY, THE MANAGEMENT TEAM EVALUATES COMMUNITY NEEDS ASSESSMENT REPORTS COMPLETED BY OTHER ORGANIZATIONS AT BOTH THE LOCAL AND REGIONAL LEVEL TO GLEAN ADDITIONAL INSIGHT.TO FURTHER UNDERSTAND THE COMMUNITY'S RELATIONSHIP WITH THE CHILDREN'S INSTITUTE, AN AWARENESS STUDY WAS CONDUCTED IN AUGUST 2010. AN ONLINE SURVEY WAS SENT TO 3,131 INDIVIDUALS ASSOCIATED WITH THE ORGANIZATION AND 407 ONLINE SURVEYS WERE SENT TO MEMBERS OF A MAJOR ONLINE RESEARCH PANEL TARGETED BY ZIP CODE. WITH A 9.3 PERCENT RETURN, THERE WERE 331 SURVEYS COMPLETED. THE SURVEY RESPONSES PROVIDED INSIGHT INTO THE COMMUNITY'S PERCEPTIONS OF THE CHILDREN'S INSTITUTE AND THE SERVICES WE PROVIDE. THE NEEDS OF OUR CLIENT POPULATION AND REFERRAL SOURCES ARE RAPIDLY CHANGING. IN ORDER TO BETTER UNDERSTAND THIS EVOLUTION, OUR 2012 NEEDS ASSESSMENT PROCESS WILL EXPAND TO INCLUDE A MORE THOROUGH COMMUNITY SURVEY THAT REACHES A BROADER AUDIENCE AND ASKS MORE IN-DEPTH QUESTIONS ABOUT SERVICE UTILIZATION AND NEEDS. PART VI, LINE 3: ALL PATIENTS WITHOUT THE FINANCIAL RESOURCES TO PAY FOR SERVICES MAY APPLY FOR THE CHILDREN'S INSTITUTE OF PITTSBURGH'S (CI'S) FINANCIAL ASSISTANCE PROGRAM. APPLICATIONS MAY BE OFFERED/SUBMITTED PRIOR TO ADMISSION, AT THE TIME OF ADMISSION, DURING THE PATIENT'S STAY, AT THE TIME OF DISCHARGE, AND POST-DISCHARGE BY THE ADMISSIONS/AUTHORIZATION DEPARTMENT, PATIENT CARE MANAGERS OR PATIENT ACCOUNTING. TO APPLY, THE PATIENT MUST COMPLETE A DETERMINATION OF ELIGIBILITY FOR FINANCIAL ASSISTANCE FORM. FINANCIAL ELIGIBILITY IS BASED ON A MULTIPLE OF THE FEDERAL POVERTY GUIDELINES, INCOME AND FAMILY SIZE. THE RECOMMENDATION FOR APPROVAL FOR FINANCIAL ASSISTANCE CARE WILL BE BASED ON MEDICAL ASSISTANCE RECIPIENT STATUS AND CATASTROPHIC MEDICAL EXPENSES. THE PATIENT MAY ALSO QUALIFY BY DEMONSTRATING THAT MEDICAL EXPENSES AND/OR RELATED CATASTROPHIC EVENTS HAVE RESULTED IN A FINANCIAL BURDEN THAT THREATENS THE FINANCIAL WELL BEING OF THE PATIENT AND HIS/HER FAMILY. THE PATIENT ACCESS EMPLOYEE REVIEWS THE INSURANCE BENEFITS AND CALLS THE FAMILY AND EXPLAINS POTENTIAL ELIGIBILITY FOR MEDICAL ASSISTANCE OR CHARITY CARE. PART VI, LINE 4: THE CHILDREN'S INSTITUTE SERVES CHILDREN WITH SPECIAL NEEDS AND THEIR FAMILIES. IN 2011, THE CHILDREN'S INSTITUTE SERVED 5,408 CHILDREN AND THEIR FAMILIES FROM WESTERN PENNSYLVANIA AND BEYOND. DEMOGRAPHICS OF CLIENTS SERVED INCLUDE: -GENDER: 60 PERCENT MALE AND 40 PERCENT FEMALE -AGE: RANGE WAS LESS THAN 1 YEAR THROUGH AGE 21, WITH AVERAGE AGE OF 7 YEARS (EXCEPTION IS PRADER-WILLI SYNDROME/BEHAVIORAL DISORDERS PROGRAM WHICH SERVES BOTH CHILDREN AND ADULTS)-96 PERCENT OF PROGRAM PARTICIPANTS WERE PENNSYLVANIA RESIDENTS, WITH THE REMAINING 4% COMING FROM 32 STATES AND CANADA; -53 PERCENT WERE ALLEGHENY COUNTY RESIDENTS, WITH WESTMORELAND, BEAVER, BUTLER AND WASHINGTON REPRESENTING THE MOST COMMON COUNTY OF RESIDENCE OF THE BALANCE.-30 PERCENT WERE RESIDENTS OF THE CITY OF PITTSBURGH.THE CHILDREN'S INSTITUTE IS ONE OF ONLY 20 FREE-STANDING PEDIATRIC REHABILITATION SPECIALTY HOSPITALS IN THE NATION; THEREFORE, PATIENTS SOFTEN TRAVEL GREAT DISTANCES TO RECEIVE INPATIENT AND OUTPATIENT SERVICES. PATIENTS HAVE TRAVELED FROM AS FAR WEST AS CALIFORNIA AND EVEN FROM CANADA FOR INPATIENT SERVICES. FOR OUTPATIENTS SERVED, APPROXIMATELY 13% OF OUTPATIENTS TRAVELED FROM RURAL AREAS OF PENNSYLVANIA, WEST VIRGINIA AND OHIO FOR SERVICES ON A REGULAR BASIS. IN ADDITION, OUR PRADER-WILLI SYNDROME PROGRAM - ONE OF OUR FIVE CENTERS OF EXCELLENCE - OFFERS THE ONLY INPATIENT TREATMENT FOR PRADER-WILLI SYNDROME IN THE WORLD. THE PROGRAM HAS TREATED PATIENTS NATIONALLY AS WELL AS INTERNATIONALLY FROM AS FAR AWAY AS SAUDI ARABIA. X 1 1 X X X X X X 0 0 0 0 0 0 0 1 0 DAVID K MILES 219283 0 46504 0 11957 0 0 0 16215 0 293959 0 0 0 JODY MULVIHILL 131998 0 26922 0 1144 0 0 0 8667 0 168731 0 0 0 JANE TEITZ-KEIM 162084 0 28282 0 1459 0 0 0 15898 0 207723 0 0 0 MARYANNE HENDERSON 190183 0 28928 0 927 0 14268 0 16050 0 250356 0 0 0 TIMOTHY J BITTNER 146676 0 26951 0 1287 0 0 0 17980 0 192894 0 0 0 CHERYL A FOGARTY 146006 0 20720 0 966 0 2205 0 7510 0 177407 0 0 0 CYNTHIA SMITH MD 184699 0 1000 0 1628 0 0 0 3256 0 190583 0 0 0 SCOTT FABER MD 166384 0 0 0 810 0 0 0 17843 0 185037 0 0 0 GREGORY CHERPES MD 174463 0 0 0 539 0 0 0 9391 0 184393 0 0 0 ANDREW DRAZDIK 167299 0 0 0 1765 0 0 0 17727 0 186791 0 0 0 PART I, LINE 1A THE CHIEF EXECUTIVE OFFICER HAS A MEMBERSHIP TO A SOCIAL CLUB IN THE REGION FOR WHICH THE ORGANIZATIONS PAYS DUES ON HIS BEHALF. BUSINESS AND PERSONAL USE ARE ACCOUNTED FOR IN ACCORDANCE WITH THE ORGANIZATION'S EXPENSE REIMBURSEMENT POLICY. THE VALUE OF ANY PERSONAL USE IS REPORTED AS COMPENSATION AND INCLUDED ON HIS FORM W-2. PART I, LINE 7 BONUS PAYMENTS WERE AWARDED DURING THE FISCAL YEAR 2011. SUPPLEMENTAL INFORMATION PART III CERTAIN INDIVIDUALS LISTED IN PART II ARE PARTICIPANTS IN THE ORGANIZATION'S DEFINED BENEFIT PLAN. THE ESTIMATED INCREASE/DECREASE IN VALUE FOR EACH INDIVIDUAL IS NOT AVAILABLE DUE TO THE FACT THAT THE ACTUARIAL VALUE IS CALCULATED ON A PLAN LEVEL AND NOT AN INDIVIDUAL PARTICIPANT BASIS. ALLEGHENY COUNTY HOSPITAL DEVELOPMENT 251327925 01728AB96 2005-06-22 15155000 FACILITY PURCHASE AND RENOVATION 0 0 0 ALLEGHENY COUNTY HOSPITAL DEVELOPMENT 251327925 01728AC20 2005-06-22 10105000 FACILITY PURCHASE AND RENOVATION 0 0 0 15155000 144264 15010736 2008 0 0 1 1 10105000 96192 10008808 2008 0 0 1 1 0 0 0 0 0.00000 0.00000 0.00000 0 0 0 0 0 0.00000 0.00000 0.00000 0 1 1 0 0 0 0 1 1 0 0 0 0 SCHEDULE K SUPPLENTAL INFORMATION PLEASE NOTE FORM 8038 THAT WAS FILED IN CONNECTION WITH THIS TAX EXEMPT BOND FINANCING IMPROPERLY REPORTED THIS TRANSACTION AS A SINGLE ISSUANCE. THE INFORMATION SET FORTH ON SCHEDULE K CORRECTLY REFLECTS THE FINANCING TRANSACTIONS. PNC BANK BOARD CHAIRMAN 509034 SEE SCH O MICHAEL J. HANNON IS THE EXECUTIVE VICE PRESIDENT AND CHIEF CREDIT OFFICER OF PNC BANK. PNC BANK PROVIDES FINANCIAL SERVICES TO CHILDREN'S INSTITUTE. THIS TRANSACTION WAS REVIEWED IN ACCORDANCE WITH, AND COMPLIES WITH, THE ORGANIZATION'S CONFLICT OF INTEREST POLICY. IN ADDITION, THE TRANSACTION WAS CONDUCTED AT FAIR MARKET VALUE. 0 X 8 229539 FAIR MARKET VALUE X TOYS, BOOKS, CLOTHING, TICKETS, MISC. EQUIPMENT, E 112 0 N/A X PRISTO II RECLINER-NEMSCHOFF CHAIRS, INC. 1 4267 FAIR MARKET VALUE 0 0 1 0 FORM 990, PART VI, SECTION A, LINE 4 THE BYLAWS OF THE CHILDREN'S INSTITUTE OF PITTSBURGH WERE AMENDED DURING THE FISCAL YEAR. NOTABLE CHANGES TO THE BYLAWS WERE MADE TO INCLUDE THE ADDITION OF AN EX-OFFICIO, NON-VOTING SEAT FOR A MEMBER OF THE MEDICAL STAFF; THE RENAMING OF THE DEVELOPMENT COMMITTEE TO INSTITUTIONAL ADVANCEMENT; THE DISSOLUTION OF THE GOVERNMENT RELATIONS COMMITTEE WITH ITS RESPONSIBILITIES TRANSFERRED TO THE INSTITUTIONAL ADVANCEMENT COMMITTEE; AND LANGUAGE WHICH PERMITS THE EXECUTIVE COMMITTEE TO ACT ON BEHALF OF THE BOARD BETWEEN MEETINGS OF THE BOARD. CHANGES WERE ALSO MADE TO REFLECT THE NEW CMS CONDITIONS OF PARTICIPATION, WHICH NOW PERMIT NON-PHYSICIAN PRACTITIONERS TO BE FULL MEMBERS OF THE MEDICAL STAFF. FORM 990, PART VI, SECTION B, LINE 11 THE CHILDREN'S INSTITUTE RECOGNIZES THAT AS PART OF THE BOARD OF DIRECTORS' GOVERNANCE ROLE, THEY SHOULD REVIEW THE IRS FORM 990. THE AFOREMENTIONED REVIEW HAS BEEN DELEGATED BY THE BOARD TO THE AUDIT COMMITTEE. THE CHILDREN'S INSTITUTE (CI) ALONG WITH CI'S CERTIFIED PUBLIC ACCOUNTING FIRM ARE RESPONSIBLE FOR THE TIMELY PREPARATION OF FORM 990. THE AUDIT COMMITTEE OF THE BOARD OF DIRECTORS (CHAIRED BY AN EXEMPT ORGANIZATION EXPERT) REVIEWED THE COMPLETED FORM 990 IN ADVANCE OF AN AUDIT COMMITTEE MEETING TO ENABLE A DETAILED CONSCIENTIOUS REVIEW BY COMMITTEE MEMBERS. THE APPROPRIATE REPRESENTATIVES OF THE CERTIFIED PUBLIC ACCOUNTING FIRM AND CI'S VICE PRESIDENT OF FINANCE ADDRESSED QUESTIONS AND CONCERNS OF THE AUDIT COMMITTEE. AFTER INPUT FROM THE AUDIT COMMITTEE WAS APPROPRIATELY ADDRESSED, A COMPLETE COPY OF THE RETURN WAS PROVIDED TO EACH MEMBER OF THE BOARD OF DIRECTORS PRIOR TO FILING WITH THE SERVICE. FORM 990, PART VI, SECTION B, LINE 12C THE CHILDREN'S INSTITUTE HAS A CONFLICT OF INTEREST POLICY THAT IS INCLUDED IN THE CODE OF CONDUCT, AND APPLIES TO ALL EMPLOYEES. ANY ACTUAL OR POTENTIAL CONFLICT OF INTEREST MUST BE PROMPTLY REPORTED TO THE EMPLOYEE'S SUPERVISOR OR THE COMPLIANCE OFFICER. EMPLOYEES SHALL NOT UNDERTAKE ANY ACTIVITY THAT IS AIMED AT, OR THAT COULD REASONABLY HAVE THE EFFECT OF, INTERFERING WITH THE FUNCTIONING OF THE CHILDREN'S INSTITUTE. ANY OUTSIDE ACTIVITY, SUCH AS A SECOND JOB OR SELF-EMPLOYMENT, MUST BE KEPT TOTALLY SEPARATE FROM EMPLOYMENT WITH THE CHILDREN'S INSTITUTE. THE CHILDREN'S INSTITUTE BOARD OF DIRECTORS HAS ADOPTED A CONFLICT OF INTEREST POLICY THAT APPLIES TO ALL BOARD MEMBERS. IN ADDITION, ALL BOARD MEMBERS ARE REQUIRED TO COMPLETE AN ANNUAL CONFLICT OF INTEREST QUESTIONNAIRE. BOARD MEMBERS THAT HAVE A CONFLICT OF INTEREST MAY MAKE A PRESENTATION TO THE BOARD OR COMMITTEE MEETING, BUT AFTER SUCH PRESENTATION, HE/SHE SHALL LEAVE THE MEETING DURING THE DISCUSSION OF, AND THE VOTE ON, THE TRANSACTION OR ARRANGEMENT THAT RESULTS IN THE CONFLICT OF INTEREST. IF THE BOARD OR COMMITTEE HAS REASONABLE CAUSE TO BELIEVE THAT A MEMBER HAS FAILED TO DISCLOSE ACTUAL OR POSSIBLE CONFLICTS OF INTEREST, IT SHALL INFORM THE MEMBER OF THE BASIS FOR SUCH BELIEF AND AFFORD THE MEMBER AN OPPORTUNITY TO EXPLAIN THE ALLEGED FAILURE TO DISCLOSE. IF, AFTER HEARING THE RESPONSE OF THE MEMBER AND MAKING SUCH FURTHER INVESTIGATION AS MAY BE WARRANTED IN THE CIRCUMSTANCES, THE BOARD OR COMMITTEE DETERMINES THAT THE MEMBER HAS IN FACT FAILED TO DISCLOSE AN ACTUAL OR POSSIBLE CONFLICT OF INTEREST, IT SHALL TAKE APPROPRIATE DISCIPLINARY AND CORRECTIVE ACTION. ALL BOARD MEMBERS ARE REQUIRED TO COMPLETE AN ANNUAL DISCLOSURE STATEMENT RELATED TO CERTAIN BUSINESS RELATIONSHIPS AND TRANSACTIONS TO ASSIST IN THE PREPARATION OF A COMPLETE AND ACCURATE FORM 990. FORM 990, PART VI, SECTION B, LINE 15 THE CEO EVALUATION COMMITTEE OF THE BOARD OF DIRECTORS, WHICH IS COMPRISED OF TWO INDEPENDENT BOARD OFFICERS AND THREE INDEPENDENT BOARD MEMBERS AT LARGE, MEETS ANNUALLY IN JUNE TO REVIEW MR. MILES PERFORMANCE. DURING THE COURSE OF THE MEETING MR. MILES' BASE AND INCENTIVE COMPENSATION AWARDS ARE EVALUATED. A COST OF LIVING ADJUSTMENT MAY BE APPLIED TO THE BASE COMPENSATION. THE INCENTIVE COMPENSATION IS BASED ON THE GOALS THE CEO EVALUATION COMMITTEE HAS SET IN CONJUNCTION WITH THE BOARD OF DIRECTORS. PRIOR TO THE START OF THE NEXT FISCAL YEAR, THE CEO EVALUATION COMMITTEE MEETS WITH MR. MILES TO REVIEW HIS CURRENT YEAR PERFORMANCE AND TO ESTABLISH HIS GOALS AND COMPENSATION FOR THE NEXT FISCAL YEAR. IN ADDITION, AN INDEPENDENT THIRD PARTY CONDUCTED A COMPENSATION STUDY UTILIZING COMPARABLES AND FORMS 990 TO ESTABLISH MR. MILES' SALARY. MR. MILES IN CONJUNCTION WITH THE HUMAN RESOURCE DIRECTOR UTILIZES ANNUAL SALARY SURVEY DATA TO ESTABLISH THE BASE AND INCENTIVE COMPENSATION OF MS. MULVIHILL. MR. MILES REVIEWS BASE AND INCENTIVE COMPENSATION WITH THE CEO EVALUATION COMMITTEE AT THE ANNUAL JUNE MEETING. PRIOR TO THE START OF THE NEXT FISCAL YEAR, MR. MILES MEETS WITH MS. MULVIHILL TO REVIEW HER CURRENT YEAR PERFORMANCE AND TO ESTABLISH HER GOALS AND COMPENSATION FOR THE NEXT FISCAL YEAR. THIS PROCESS ALSO APPLIES TO KEY EMPLOYEES OF THE ORGANIZATION. FORM 990, PART VI, SECTION C, LINE 19 THE FORM 1023, APPLICATION FOR RECOGNITION OF EXEMPTION, IRS DETERMINATION LETTER AND FORMS 990 AND 990-T ARE MADE AVAILABLE TO THE PUBLIC UPON REQUEST. THE CHILDREN'S INSTITUTE PREPARES AN ANNUAL REPORT THAT CONTAINS ITS SUMMARY FINANCIALS FOR PUBLIC DISTRIBUTION. THE AUDITED FINANCIAL STATEMENTS OF THE ORGANIZATION WILL BE PROVIDED UPON REQUEST. THE ORGANIZATION'S GOVERNING DOCUMENTS, INCLUDING THE BYLAWS, ARTICLES OF INCORPORATION AND CONFLICT OF INTEREST POLICIES, ARE NOT PUBLICLY AVAILABLE BUT ARE AVAILABLE UPON REQUEST. CHANGES IN NET ASSETS OR FUND BALANCES: FORM 990, PART XI, LINE 5: NET UNREALIZED LOSSES ON INVESTMENTS: -5,189,957. CHANGES IN UNRECOGNIZED PENSION BENEFIT PLAN COSTS -16,202,911. TOTAL TO FORM 990, PART XI, LINE 5: -21,392,868. FORM 990 PART XII, FINANCIAL STATEMENTS AND REPORTING: THE ORGANIZATION'S FINANCIAL STATEMENTS ARE AUDITED BY AN INDEPENDENT ACCOUNTING FIRM. IN ADDITION, THE ORGANIZATION HAS A COMMITTEE THAT ASSUMES RESPONSIBILITY FOR OVERSIGHT OF THE AUDIT OF ITS FINANCIAL STATEMENTS AND ITS SELECTION OF THE INDEPENDENT ACCOUNTANT. THIS PROCESS HAS NOT CHANGED FROM THE PRIOR YEAR.