2012-05-11T14:00:32-05:00 2011-06-30 CROWE HORWATH LLP 70 West Madison Street Suite 700 Chicago IL 606024903 990 2010-07-01 363297173 EDWARD HOSPITAL EDWA 6305273000 801 South Washington Street Naperville IL 60540 VINCE PRYOR 2012-05-03 true 3128997000 2010 2016-02-24 21:20:13Z PAMELA MEYER DAVIS 801 South Washington Street Naperville IL 60540 565942521 false X WWW.EDWARD.ORG X 1984 IL THE MISSION OF EDWARD HOSPITAL IS TO SUPPORT HEALTH AND STRENGTHEN COMMUNITIES BY PROVIDING OUTSTANDING HEALTH CARE SERVICES. EDWARD HOSPITAL PROVIDED $11,540,247 IN CHARITY CARE DURING THE YEAR. 14 11 3229 904 390825 47789 4040628 2241846 469874634 479999097 7730514 11230328 221408 209587 481867184 493680858 0 0 0 0 176090864 181120714 0 0 0 280908298 281371433 456999162 462492147 24868022 31188711 625159365 692898835 428405441 429289585 196753924 263609250 X THE MISSION OF EDWARD HOSPITAL IS TO SUPPORT HEALTH AND STRENGTHEN COMMUNITIES BY PROVIDING OUTSTANDING HEALTH CARE SERVICES. false false 363075048 0 479527911 EDWARD HOSPITAL IS A 309-BED, FULL-SERVICE, REGIONAL HEALTHCARE PROVIDER WITH 1,000 PHYSICIANS ON ITS MEDICAL STAFF AND MORE THAN 3,200 EMPLOYEES. EDWARD SERVES RESIDENTS OF THE WEST AND SOUTHWEST SUBURBS OF CHICAGO, INCLUDING NAPERVILLE, AURORA, BOLINGBROOK, DOWNERS GROVE, HOMER GLEN, JOLIET, LEMONT, LISLE, LOCKPORT, MINOOKA, OSWEGO, PLAINFIELD, ROMEOVILLE, SHOREWOOD, WARRENVILLE, WHEATON, WOODRIDGE AND YORKVILLE. THE PHYSICIANS ON THE MEDICAL STAFF REPRESENT MORE THAN 70 MEDICAL AND SURGICAL SPECIALTIES AND SUBSPECIALTIES. MORE THAN 98 PERCENT (THE NATIONAL AVERAGE IS 62 PERCENT) OF THEM ARE BOARD CERTIFIED IN THEIR RESPECTIVE FIELDS, A DESIGNATION AWARDED ONLY TO PHYSICIANS WHO COMPLETE RIGOROUS POST-MEDICAL SCHOOL TRAINING AND PASS AN EXTENSIVE CERTIFICATION TEST. CONT IN SCHEDULE O. 363075048 true true false true false false false false true true false false false true false false true false false false false false false false false true true false false true true false false false false false false false false true false false false false false false true false false false false true 179 0 true 3229 true true true false false false false false false false false false X 14 11 false false false false true true true true true false false true true true true true true true true true true IL X Vince Pryor 6035273035 801 S Washington Street Naperville IL 60540 X PAMELA DAVIS 1 X X 0 2085136 59971 ROCCO MARTINO 1 X X 0 0 0 JOE BEATTY 1 X X 0 0 0 GARY CIANCI MD 1 X 5000 0 0 SCOTT BERGER MD 1 X 40874 0 0 DAVE DELGADO 1 X 0 0 0 JOE DEPAULO 1 X 0 0 0 RICHARD ENDRESS 1 X 0 0 0 DENNIS BURKE 1 X 0 0 0 MARY KAY LADONE 1 X 0 0 0 THOM ROOKE MD 1 X 0 0 0 TIMOTHY RIVELLI 1 X 0 0 0 RON SCHUBEL 1 X 0 0 0 ALISON BALLEW SMITH 1 X 0 0 0 WILLIAM WHEELER 1 X 0 0 0 HODA EL-ASMAR MD 1 X 0 397004 28995 NANETTE BUFALINO 1 X 0 397932 39563 BRIAN DAVIS 1 X 0 241594 36915 ANNETTE KENNEY 1 X 0 260662 33756 WILLIAM KOTTMANN 1 X 0 399308 45257 MARY LOU MASTRO 1 X 0 385498 42672 MAGGIE SHONTZ 0 X 0 174265 0 MARIANNE SPENCER 1 X 0 376286 48038 DENNISE VAUGHN 1 X 0 273415 30921 VINCENT PRYOR 1 X 0 357388 27469 PATTI LUDWIG-BEYMER 40 X 184761 0 26501 KIM STACHE 40 X 198480 0 10890 LYNN COCHRAN 40 X 153599 0 28310 YVETTE SABA 40 X 184553 0 28771 LINDA DEVEE 40 X 155039 0 20677 GEORGE KOBUROV 40 X 496694 0 41453 PETER SCHUBEL 40 X 487450 0 34543 THOMAS SCALETTA 40 X 482030 0 36707 MICHAEL HARTMANN 40 X 450981 0 31189 SCOTT PADALIK 40 X 452224 0 27849 BARBARA BYRNE MD 1 X 0 312231 33284 BRENT SMITH DO 1 X 0 291312 24875 3291685 5952031 738606 103 true true false EDWARD HEALTH SERVICES CORPORATION 801 S WASHINGTON ST NAPERVILLE IL 60540 MANAGEMENT FEES 54535404 POWER CONSTRUCTION CO LLC 2360 PALMER DR SCHAUMBURG IL 601733819 CONSTRUCTION SERVICES 8783713 ARAMARK PO BOX 651009 CHARLOTTE NC 282651009 FOOD SERVICES 5461046 MIDWEST HEART SPECIALISTS 1901 S MEYERS RD SUITE 350 OAK BROOK TERRACE IL 601815207 PHYSICIAN SERVICES 2762530 MAYO COLLABORATIVE SERVICE INC PO BOX 9146 MINNEAPOLIS MN 554809146 LAB SERVICES 1586343 46 1331662 103143 807041 0 2241846 PATIENT SERVICE REVENUE 621990 333558500 333558500 RENTAL INCOME 532000 968907 968907 HEALTH SCREEN & AMBULATORY 623990 251417 251417 MEDICARE/MEDICAID PAYMENTS 532000 141681925 141681925 0 REFERENCE LAB 621500 884939 494114 390825 2653409 2653409 0 0 479999097 8585460 8585460 338517 338517 0 0 0 0 74380288 0 71993575 -80361 2386712 80361 2306351 -80361 2386712 0 0 397313 187725 209587 209587 0 0 0 0 0 493680858 479527911 390825 11520276 0 0 0 0 1073366 1073366 0 145985257 121784629 24200628 6368123 5320156 1047967 17350489 14393557 2956932 10343479 9466989 876490 54535404 54535404 5055 5055 0 45478 45478 0 536984 536984 17489938 12748041 4741897 349410 288856 60554 90590315 88807622 1782693 0 0 8601282 8024356 576926 69239 45814 23425 0 173637 138768 34869 12583087 11324778 1258309 0 37711489 33991777 3719712 236833 236833 PROVISION FOR BAD DEBT 23143256 23143256 MEDICARE PROVIDER TAX 12596160 12596160 REPAIRS & MAINTANENCE 10238995 10048743 190252 MEDICAL FEES/PHYSICIAN INTREGATION 7484831 7484831 PATIENT RECOVERY FEES 2371466 2371466 2608574 2156516 452058 0 462492147 363075048 99417099 0 0 15193555 9313836 55498030 64943279 0 8068545 8433677 8650788 7270377 571190598 311765089 266751139 259425509 224121579 300132444 0 0 4021797 4607472 28237612 28239795 14616320 10532446 625159365 692898835 48307886 47062489 282065390 277185231 98032165 105041865 428405441 429289585 X 195537591 262341075 903871 955713 312462 312462 196753924 263609250 625159365 692898835 X 31188711 35666615 X false true true X false X RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED false true false false false false false false true 45478 45478 false Description of other lobbying activities Schedule C, Part II-B, Line 1i PORTION OF DUES RELATED TO LOBBYING ACTIVITIES. 1216333 1193261 853697 287722 1268175 3343859 1808329 319197 1216333 3432137 278130 366408 3343859 0.24639 0.75361 false true true 9742838 9742838 342627190 173172573 169454617 0 185416068 134349255 51066813 33404502 4243261 29161241 259425509 0 EST THIRD PARTY PAYOR SETTLEMENTS 73394711 INTEREST RATE SWAP 20265882 PROF & GENERAL LIABILITY 7112599 DEFERRED COMPENSATION 3724701 LONG TERM LEASE PAYABLE & OTHER 543972 105041865 493680858 462492147 31188711 31146593 4491770 35638363 66827074 529098878 31146594 1079515 3541170 35767279 493331599 536984 -187725 349259 493680858 463222404 1079515 0 1079515 462142889 536983 -187725 349258 462492147 Intended uses of endowment funds Schedule D, Part V, Line 4 THERE ARE THREE PERMANENT ENDOWMENT FUNDS AND THE INTEREST EARNED ON THE FUNDS IS INTENDED TO BE USED AS FOLLOWS: 1) CARDIOVASCULAR - TO BE USED FOR THE EDWARD HOSPITAL CARDIOVASCULAR PROGRAM; 2) ANIMAL ASSISTED THERAPY - TO BE USED TO SUPPORT THE USE OF DOGS VISITING PATIENTS TO HELP RELIEVE STRESS AND IMPROVE HEALING TIMES; 3) THE BOOK SCHOLARSHIP FUND - TO HELP NURSES EDUCATIONALLY BY SUPPLEMENTING THEIR FURTHER HIGHER EDUCATIONAL EXPENSES. true true X true X 3 true X 5 true true true false true true 11540247 11540247 0.02630 38924048 26440562 12483486 0.02840 0 0 0 0.00000 0 0 50464295 26440562 24023733 0.05470 1302457 76010 1226447 0.00280 498165 2635 495530 0.00110 2989798 1578478 1411320 0.00320 581006 43049 537957 0.00120 657562 0 657562 0.00150 0 0 6028988 1700172 4328816 0.00980 0 0 56493283 28140734 28352549 0.06450 0 0.00000 37918 37918 0.00010 12629 12629 0.00000 0 0.00000 27326 27326 0.00010 95635 95635 0.00020 133049 133049 0.00030 28728 28728 0.00010 35850 35850 0.00010 0 0 371135 0 371135 0.00080 false 6299271 2769451 113792166 152217593 -38425427 X true true 2 1 EDWARD HOSPITAL

801 S WASHINGTON ST NAPERVILLE IL 60540

X X X 2 PLAINFIELD FREE-STANDING EMERGENCY CTR

24600 W 127TH STREET PLAINFIELD IL 60585

X Community benefit report prepared by related organization Schedule H, Part I, Line 6a EDWARD HEALTH SERVICES CORPORATION Subsidized Health Services Schedule H, Part I, Line 7g NOT APPLICABLE. Bad Debt Expense excluded from financial assistance calculation Schedule H, Part I, Line 7, column(f) 23,143,256 Costing Methodology used to calculate financial assistance Schedule H, Part I, Line 7 THE COSTS USED IN THE FINANCIAL ASSISTANCE (7A) AND UNREIMBURSED MEDICAID (7B) SECTIONS WERE CALCULATED USING THE MEDICARE COST REPORT COST TO CHARGE RATIO. THE COSTS ENTERED IN THE SUBSIDIZED HEALTH SERVICES SECTION (7G) WERE CALCULATED USING A COST ACCOUNTING SYSTEM AND ADDRESSED ALL PATIENT SEGMENTS. THE COSTS ENTERED IN SECTIONS 7E, 7F, 7H AND 7I WERE CALCULATED USING A COMBINATION OF A COST ACCOUNTING SYSTEM AND ACTUAL COSTS. Community Building Activities Schedule H, Part II EMPLOYEES ARE ENCOURAGED TO SERVE ON COMMUNITY BOARDS AND PARTICIPATE IN PROGRAMS AND COMMITTEES THAT ADDRESS ECONOMIC DEVELOPMENT, TRAINING, COMMUNITY HEALTH NEEDS AND IMPROVEMENT ADVOCACY, AND WORKFORCE DEVELOPMENT. EXAMPLES OF THESE PROGRAMS AND THE BENEFIT THEY PROVIDED ARE HIGHLIGHTED BELOW: ECONOMIC DEVELOPMENT COMMITTEES PROVIDE BUSINESS LEADERSHIP FOR THE BENEFIT OF COMMUNITIES BY PROMOTING ECONOMIC OPPORTUNITIES, ADVOCATING THE INTEREST OF BUSINESS, PROVIDING MEMBERS WITH EDUCATION AND RESOURCES AND ENCOURAGING MUTUAL SUPPORT. EXAMPLES OF THESE COMMITTEES IN WHICH EDWARD EMPLOYEES ARE ACTIVELY INVOLVED INCLUDE NAPERVILLE AREA CHAMBER OF COMMERCE, WILL COUNTY CENTER FOR ECONOMIC DEVELOPMENT, PLAINFIELD ADVISORY TASK FORCE ON ECONOMIC DEVELOPMENT, YORKVILLE ECONOMIC DEVELOPMENT COMMITTEE, NAPERVILLE DEVELOPMENT PARTNERSHIP AND THE DUPAGE REGIONAL ALLIANCE. WORKFORCE DEVELOPMENT INCLUDES PROGRAMS WHICH ADDRESS COMMUNITY-WIDE WORKFORCE ISSUES AND INCLUDE PROGRAMS SUCH AS HEALTHCARE CAREER DISCOVERY DAY, IN WHICH ADULTS AND CHILDREN AGES 10 AND UP ARE INVITED TO EXPLORE HEALTHCARE CAREERS. ADDITIONALLY, EDWARD'S CHIEF NURSING OFFICER SITS ON THE COLLEGE OF DUPAGE ADVISORY BOARD AND WORKS WITH SEVERAL OTHER LOCAL COLLEGES TO SUPPORT AND GROW THEIR NURSING PROGRAMS, INCLUDING NORTH CENTRAL COLLEGE, BENEDICTINE UNIVERSITY, AURORA UNIVERSITY AND LEWIS UNIVERSITY. COMMUNITY HEALTH IMPROVEMENT ADVOCACY INCLUDES THE GIFT OF HOPE ORGAN & TISSUE DONOR NETWORK, WHICH IS A NOT-FOR-PROFIT ORGAN PROCUREMENT ORGANIZATION THAT COORDINATES ORGAN AND TISSUE DONATION AND PROVIDES PUBLIC EDUCATION ON DONATION IN ILLINOIS AND NORTHWEST INDIANA. OF THE 177 HOSPITALS IN ILLINOIS THAT PARTNER WITH GIFT OF HOPE ORGAN AND TISSUE DONATION PROGRAM, EDWARD HOSPITAL WAS RECOGNIZED AS ONE OF THE TOP 10 DONOR PROGRAMS. EDWARD HAS PARTNERED WITH GIFT OF HOPE AND THE ILLINOIS EYE-BANK TO ASSIST THEM IN THEIR MISSION TO INCREASE DONATIONS. TO HELP ACHIEVE THAT MISSION, A MEMBER OF EDWARD SENIOR MANAGEMENT CHAIRS A TEAM OF NURSES, PHYSICIANS, SPIRITUAL CARE AND OTHER HOSPITAL EMPLOYEES WHO WORK ON GETTING THE WORD OUT TO EDWARD STAFFERS ABOUT ORGAN AND TISSUE DONATION AND PROVIDING PROPER INFORMATION TO BE SHARED WITH FAMILIES OF POTENTIAL DONORS. ANOTHER IMPORTANT INITIATIVE IN COMMUNITY HEALTH IMPROVEMENT ADVOCACY IS FORWARD, (FIGHTING OBESITY, REACHING HEALTHY WEIGHT AMONG RESIDENTS OF DUPAGE), A DUPAGE COUNTY LEADERSHIP COLLABORATIVE WHOSE GOAL IS TO IMPROVE THE HEALTH AND WELLBEING OF CHILDREN AND FAMILIES IN DUPAGE COUNTY. COALITION BUILDING INCLUDES PARTICIPATION IN COMMUNITY COALITIONS AND OTHER COLLABORATIVE EFFORTS WITH THE COMMUNITY TO ADDRESS HEALTH AND SAFETY ISSUES, AND INCLUDE PROGRAMS SUCH AS DUPAGE HEALTH COALITION, IN WHICH A SET OF INTER-CONNECTED ORGANIZATIONS, PROGRAMS, AND FACILITIES WORK TOGETHER TO PROVIDE COORDINATED, EXCELLENT MEDICAL CARE AND OTHER HEALTH-RELATED SERVICES TO DUPAGE COUNTY'S LOW-INCOME RESIDENTS. Bad debt expense - financial statement footnote Schedule H, Part III, Line 4 ACCOUNTS RECEIVABLE ARE CHARGED TO THE ALLOWANCE FOR DOUBTFUL ACCOUNTS WHEN THEY ARE DEEMED UNCOLLECTIBLE. THE COSTING METHODOLOGY IS THE COST TO CHARGE RATIO FROM THE MEDICARE COST REPORT. MUCH OF HOSPITALS' BAD DEBT IS UNDOCUMENTED CHARITY CARE. WHILE ALL BUSINESSES INCUR BAD DEBT EXPENSES, HOSPITALS ARE DIFFERENT IN THAT THEY CONTINUE TO PROVIDE SERVICES TO PEOPLE WHO CANNOT OR WILL NOT PAY THEREFORE A PORTION BAD DEBT HAS BEEN INCLUDED COMMUNITY BENEFIT. WE CALCULATED A PORTION OF OUR BAD DEBT THAT WOULD HAVE QUALIFIED FOR CHARITY IF THE PATIENT HAD APPLIED BY REPORTING ON THE PATIENTS WHO QUALIFIED FOR THE ILLINOIS UNINSURED DISCOUNT PROGRAM. IN ORDER TO BE ELIGIBLE FOR THIS DISCOUNT PATIENTS NEED TO HAVE A FAMILY INCOME BELOW 600% OF FPL. FOR THOSE THAT QUALIFY THEY ARE ENTITLED TO A DISCOUNT EQUAL TO 135% OF A HOSPITAL'S COST USING THE MOST RECENT MEDICARE COST TO CHARGE RATIO. Community benefit & methodology for determining medicare costs Schedule H, Part III, Line 8 IF EDWARD HOSPITAL DISCONTINUED UNPROFITABLE SERVICES, IT WOULD BECOME THE RESPONSIBILITY OF THE GOVERNMENT OR ANOTHER PROVIDER TO CARE FOR MEDICARE PATIENTS. THIS WOULD ULTIMATELY RESULT IN ACCESS ISSUES, AS WE ARE SEEING TODAY DUE TO THE LOSSES THAT FACILITIES INCUR FOR PROVIDING CARE TO MEDICARE PATIENTS. THEREFORE THE SHORTFALL INCURRED BY CONTINUING TO PROVIDE THESE SERVICES IS CONSIDERED A COMMUNITY BENEFIT. COSTING METHODOLOGY IS THE COST TO CHARGE RATIO FROM THE MEDICARE COST REPORT. Collection practices for patients eligible for financial assistance Schedule H, Part III, Line 9b IT IS OUR POLICY NOT TO PURSUE COLLECTION PRACTICES AGAINST PATIENTS WHO QUALIFY FOR FINANCIAL ASSISTANCE. IF A PATIENT QUALIFIES FOR FINANCIAL ASSISTANCE DURING THE COLLECTION PROCESS, THE COLLECTION EFFORTS CEASE. Means used to determine amounts billed Schedule H, Part V Section B, Line 19d (1) EDWARD HOSPITAL - THE HOSPITAL FACILITY APPLIED THE UNINSURED DISCOUNT REQUIRED UNDER ILLINOIS LAW FOR THOSE SERVICES. THE UNINSURED DISCOUNT IS CALCULATED AS 135% OF COST BASED UPON THE MOST RECENT COST-TO-CHARGE RATIO FROM THE MEDICARE COST REPORT.;(2) PLAINFIELD FREE-STANDING EMERGENCY CTR - THE HOSPITAL FACILITY APPLIED THE UNINSURED DISCOUNT REQUIRED UNDER ILLINOIS LAW FOR THOSE SERVICES. THE UNINSURED DISCOUNT IS CALCULATED AS 135% OF COST BASED UPON THE MOST RECENT COST-TO-CHARGE RATIO FROM THE MEDICARE COST REPORT.; Gross Charges for Medical Care Schedule H, Part V Section B, Line 21 (1) EDWARD HOSPITAL - THE HOSPITAL FACILITY CHARGED PATIENTS AN AMOUNT EQUAL TO THE GROSS CHARGE WHEN THE PATIENT DID NOT QUALIFY FOR THE ILLINOIS UNINSURED DISCOUNT. PATIENTS WITH HOUSEHOLD INCOME IN EXCESS OF 600% OF THE FEDERAL POVERTY LEVEL DO NOT QUALIFY FOR THE ILLINOIS UNINSURED DISCOUNT.;(2) PLAINFIELD FREE-STANDING EMERGENCY CTR - THE HOSPITAL FACILITY CHARGED PATIENTS AN AMOUNT EQUAL TO THE GROSS CHARGE WHEN THE PATIENT DID NOT QUALIFY FOR THE ILLINOIS UNINSURED DISCOUNT. PATIENTS WITH HOUSEHOLD INCOME IN EXCESS OF 600% OF THE FEDERAL POVERTY LEVEL DO NOT QUALIFY FOR THE ILLINOIS UNISURED DISCOUNT.; Needs assessment. Schedule H, Part VI, Line 2 PLANNING FOR COMMUNITY BENEFITS IS AN INTEGRAL PART OF THE EDWARD STRATEGIC PLANNING PROCESS, WHICH FOLLOWS A THREE-YEAR CYCLE WITH INTERIM ANNUAL REVIEWS AND UPDATES. THE PROCESS BRINGS TOGETHER DEMOGRAPHICS, PUBLIC HEALTH STATISTICS AND INPUT FROM REPRESENTATIVES FROM THE COMMUNITY, INCLUDING PATIENTS AND PROVIDER AGENCIES. THE OVERARCHING GOAL OF THIS PROCESS IS TO UNDERSTAND THE CRUCIAL HEALTH ISSUES IN THE COMMUNITY IN ORDER TO ENSURE ORGANIZATIONAL RESPONSIVENESS AND APPROPRIATE PRIORITIZATION OF RESOURCES. Patient education of eligibility for assistance. Schedule H, Part VI, Line 3 INFORMING OUR PATIENTS THAT FINANCIAL ASSISTANCE IS AVAILABLE IS AN IMPORTANT PART OF EDWARD HOSPITAL FINANCIAL ASSISTANCE PROGRAM. FINANCIAL ASSISTANCE IS AVAILABLE TO THE UNDER-INSURED AS WELL AS THE UNINSURED. INFORMATION ABOUT OUR FINANCIAL ASSISTANCE PROGRAM AND THE APPLICATION IS AVAILABLE ON EDWARD'S WEBSITE IN ENGLISH AND SPANISH. PATIENT STATEMENTS ALSO INCLUDE THE INFORMATION ON HOW TO OBTAIN A FINANCIAL ASSISTANCE APPLICATION. UNISURED INPATIENTS ARE SCREENED FOR ELIGIBILITY THROUGH GOVERMENTAL PROGRAMS. PATIENTS WHO DO NOT QUALIFY FOR SUCH PROGRAMS ARE GIVEN A FINANCIAL ASSISTANCE APPLICATION. SIGNAGE IS POSTED AT ALL OUTPAITENT REGISTRATION AREAS INCLUDING THE EMERGENCY DEPARTMENT. ALSO, OUR CUSTOMER SERVICE DEPARTMENT AND FINANCIAL COUNSELORS ARE AVAILABLE TO ASSIST PATIENTS WHO ARE HAVING DIFFICULTY PAYING THEIR BILL INCLUDING THE NEED FOR FINANCIAL ASSISTANCE. Community information. Schedule H, Part VI, Line 4 EDWARD HOSPITAL IS A FULL-SERVICE, REGIONAL HEALTHCARE PROVIDER OFFERING ACCESS TO A FULL RANGE OF HEALTH CARE SERVICES, INCLUDING PRIMARY CARE, COMPLEX MEDICAL SPECIALTIES, AND INNOVATIVE PROGRAMMING FOR RESIDENTS OF CHICAGO'S WEST AND SOUTHWEST SUBURBS, INCLUDING NAPERVILLE, AURORA, BOLINGBROOK, LISLE, OSWEGO, PLAINFIELD, ROMEOVILLE, WARRENVILLE, WOODRIDGE, AND YORKVILLE. THESE TOWNS DEFINE EDWARD'S PRIMARY SERVICE AREA WHICH REPRESENTS 75% OF EDWARD'S PATIENT ORIGIN AND HAS AN ESTIMATED POPULATION OF NEARLY 575,000 RESIDENTS. EDWARD'S SERVICE AREA SPANS MULTIPLE COUNTIES, WITH THE MAJORITY OF PATIENTS RESIDING IN DUPAGE AND WILL COUNTIES, 44% AND 40%, RESPECTIVELY. COMMUNITIES WITHIN EDWARD'S PRIMARY SERVICE AREA WERE AMONG THE FASTEST GROWING IN THE COUNTRY OVER THE PAST 20 YEARS, AND EDWARD SPENT SIGNIFICANT RESOURCES DURING THIS PERIOD EXPANDING PROGRAMS AND BUILDING FACILITIES TO ACCOMMODATE THIS GROWTH. DURING THE RECENT ECONOMIC RECESSION, THERE HAS BEEN A SLOW-DOWN IN THE NUMBER OF NEW RESIDENTS MOVING INTO THE SERVICE AREA; HOWEVER THE LATEST POPULATION PROJECTIONS INDICATE THAT THE AREA WILL GROW BY 60,800 RESIDENTS BY 2015-- AN ANNUAL GROWTH RATE OF 2%. NOTE THAT THIS REMAINS HIGHER THAN BOTH ILLINOIS AND THE UNITED STATES GROWTH RATES. EDWARD WILL CONTINUE TO MONITOR LOCAL GROWTH RATES TO ENSURE THAT IT 'RIGHT-SIZES' ITS SERVICES TO ACCOMMODATE COMMUNITY NEED. WHILE EDWARD'S SERVICE AREA IS RELATIVELY YOUNG WITH AN AVERAGE AGE OF 34 (COMPARED TO THE ILLINOIS AND UNITED STATES AVERAGE OF 37 AND 38, RESPECTIVELY), THE POPULATION IS AGING AT A FASTER RATE. THE 65 AND OLDER POPULATION IS PROJECTED TO GROW 40% OVER THE NEXT 5 YEARS. THIS WILL PRESENT SIGNIFICANT CHALLENGES CONSIDERING THE ELDERLY CONSUME THE MAJORITY OF HEALTH CARE RESOURCES-PARTICULARLY INPATIENT BEDS AND CHRONIC DISEASE SERVICES. EDWARD HAS A SIGNIFICANTLY HIGHER PERCENTAGE OF RESIDENTS WITH ASIAN ETHNICITY THAN EITHER ILLINOIS OR THE UNITED STATES, AND 13% OF AREA RESIDENTS ARE OF HISPANIC/LATINO ETHNICITY. THIS DIVERSITY PRESENTS BOTH LANGUAGE AND CULTURAL BARRIERS THAT HAVE THE POTENTIAL TO COMPROMISE ACCESS TO HEALTH CARE. EDWARD HAS MAINTAINED A STRONG COMMITMENT TO LANGUAGE ASSISTED SERVICES, AND HAS STEADILY INCREASED THE BUDGET FOR THESE SERVICES. THE NUMBER AND PERCENTAGE OF LOWER-INCOME RESIDENTS HAS INCREASED IN 2009 ACCORDING TO THE MOST RECENTLY AVAILABLE DATA FROM THE US CENSUS BUREAU. THE PERCENTAGE OF INDIVIDUALS AT OR BELOW THE POVERTY LEVEL IS NOW AT 6.9% IN DUPAGE COUNTY AND 8.5% IN WILL COUNTY. WHILE THIS IS LOWER THAN THE STATE AVERAGE, IT NEVERTHELESS REPRESENTS A SIGNIFICANT NUMBER OF INDIVIDUALS-IN FACT, NEARLY 120,000-LIVING AT OR BELOW THE POVERTY LEVEL IN DUPAGE AND WILL COUNTIES. REQUESTS FOR PUBLIC AID ASSISTANCE FROM DUPAGE COUNTY RESIDENTS HAVE INCREASED BY 60% OVER THE PAST FIVE YEARS, WHICH IS STRAINING THE PUBLIC SYSTEM'S ABILITY TO FUND HEALTH CARE SERVICES FOR THIS VULNERABLE POPULATION. THE HOSPITAL SECTOR HAS EXPERIENCED THE GROWING LEVEL OF POVERTY FIRSTHAND. MEDICAID UTILIZATION WITHIN EDWARD'S PRIMARY SERVICE AREA INCREASED FROM 9.5% TO 11.9% OF TOTAL INPATIENT HOSPITAL DISCHARGES BETWEEN FISCAL YEAR 2008 AND FISCAL YEAR 2011, WHILE THE NUMBER OF MEDICAID INPATIENT DISCHARGES INCREASED 23%. Promotion of community health Schedule H, Part VI, Line 5 AS A NOT-FOR-PROFIT ORGANIZATION, EDWARD RE-INVESTS EARNINGS IN THE ORGANIZATION TO MAINTAIN AND ENHANCE SERVICES THAT BENEFIT ITS COMMUNITY. THE ORGANIZATION DEVELOPS AND UPDATES A STRATEGIC PLAN ON A REGULAR BASIS TO IDENTIFY NEEDS AND OPPORTUNITIES TO DEPLOY EXCESS FUNDS (REVENUE IN EXCESS OF EXPENDITURES). PROJECTS ARE EVALUATED BASED ON ORGANIZATIONAL OBJECTIVES AND COMMUNITY NEEDS, AND ARE PRIORITIZED BY SENIOR MANAGEMENT AND THE BOARD OF TRUSTEES. EXAMPLES OF RECENT CAPITAL PROJECTS INCLUDE BUT ARE NOT LIMITED TO, THE EXPANSION OF EDWARD HEALTHCARE CENTER IN BOLINGBROOK, WHICH INCLUDES A NEW OPEN MRI, USED TO TREAT PATIENTS WITH CLAUSTROPHOBIA, CHILDREN, AND OVERWEIGHT PATIENTS. EDWARD ALSO PLANS TO OPEN A HYBRID CARDIOVASCULAR OPERATING ROOM, AN INVESTMENT WHICH WILL PROVIDE THE REGIONS MOST ADVANCED CARDIOVASCULAR SURGICAL SUITE AND LEVERAGE MULTI-DISCIPLINARY RESOURCES TO DELIVER CUTTING EDGE PATIENT CARE. Affiliated health care system Schedule H, Part VI, Line 6 EDWARD HOSPITAL AND LINDEN OAKS HOSPITAL ARE PART OF AN AFFILIATED HEALTH SYSTEM, EDWARD HEALTH SERVICES CORPORATION (EHSC). THE COMMUNITY NEED ASSESSMENT AND THE DEVELOPMENT AND MANAGEMENT OF THE COMMUNITY BENEFIT STRATEGIC PLAN IS PROVIDED BY EHSC. BOTH HOSPITALS PLAY A VITAL ROLE IN IMPLEMENTING THE INITIATIVES SET FORTH IN THE STRATEGIC PLAN BY PROVIDING THE COMMUNITY BENEFIT SERVICES THAT ARE QUANTIFIED IN PART I AND PART II OF SCHEDULE H FOR EACH OF THE HOSPITAL TAX FILINGS. State filing of community benefit report Schedule H, Part VI, Line 7 IL X true true X X X X X true false false false false false false false false PAMELA DAVIS 0 717979 0 615349 0 751808 0 17150 0 42821 0 2145107 0 0 HODA EL-ASMAR MD 0 307808 0 68861 0 20335 0 9800 0 19195 0 425999 0 0 NANETTE BUFALINO 0 277486 0 61477 0 58969 0 17150 0 22413 0 437495 0 0 BRIAN DAVIS 0 180695 0 42214 0 18685 0 11360 0 25555 0 278509 0 0 ANNETTE KENNEY 0 203498 0 47048 0 10116 0 10575 0 23181 0 294418 0 0 WILLIAM KOTTMANN 0 259767 0 65073 0 74468 0 17150 0 28107 0 444565 0 0 MARY LOU MASTRO 0 238042 0 60276 0 87180 0 17150 0 25522 0 428170 0 0 MAGGIE SHONTZ 0 0 0 9124 0 165141 0 0 0 0 0 174265 0 0 MARIANNE SPENCER 0 246343 0 54316 0 75627 0 17150 0 30888 0 424324 0 0 DENNISE VAUGHN 0 196958 0 44563 0 31894 0 15115 0 15806 0 304336 0 0 VINCENT PRYOR 0 312469 0 30232 0 14687 0 8600 0 18869 0 384857 0 0 PATTI LUDWIG-BEYMER 154464 0 18016 0 12281 0 8604 0 17897 0 211262 0 0 0 KIM STACHE 178878 0 19352 0 250 0 7155 0 3735 0 209370 0 0 0 LYNN COCHRAN 127222 0 15112 0 11265 0 10104 0 18206 0 181909 0 0 0 YVETTE SABA 159538 0 18495 0 6520 0 10255 0 18516 0 213324 0 0 0 LINDA DEVEE 133928 0 15189 0 5922 0 9822 0 10855 0 175716 0 0 0 GEORGE KOBUROV 261507 0 184108 0 51079 0 14700 0 26753 0 538147 0 0 0 PETER SCHUBEL 304520 0 149660 0 33270 0 12250 0 22293 0 521993 0 0 0 THOMAS SCALETTA 320550 0 155148 0 6332 0 12250 0 24457 0 518737 0 0 0 MICHAEL HARTMANN 262457 0 152488 0 36036 0 12250 0 18939 0 482170 0 0 0 SCOTT PADALIK 265898 0 144251 0 42075 0 10356 0 17493 0 480073 0 0 0 BARBARA BYRNE MD 0 269501 0 30940 0 11790 0 9800 0 23484 0 345515 0 0 BRENT SMITH DO 0 276199 0 9636 0 5477 0 12250 0 12625 0 316187 0 0 Health or social club dues or initiation fees Schedule J, Part I, Line 1a ALL EHSC EMPLOYEES ARE OFFERED A MEMBERSHIP AT THE EDWARD HEALTH & FITNESS CENTER, AN AFFILIATE OF EHSC, AS A TAXABLE EMPLOYEE BENEFIT. MEMBERS OF SENIOR MANAGEMENT (THE PRESIDENT AND VICE PRESIDENTS) ARE ALSO PROVIDED THIS BENEFIT FOR THEIR SPOUSE AND CHILDREN, ALSO AS A TAXABLE BENEFIT. THE VALUE OF THIS BENEFIT IS DETERMINED BASED UPON THE FAIR MARKET VALUE OF THESE MEMBERSHIPS, WHICH IS IN TURN DETERMINED BASED UPON THE ACTUAL AMOUNT THAT THE EDWARD HEALTH & FITNESS CENTER CHARGES TO OTHER CORPORATE CUSTOMERS. Severance or change-of-control payment Schedule J, Part I, Line 4a THE INDIVIDUALS LISTED WERE PART OF A REDUCTION IN FORCE THAT OCCURRED DURING FISCAL YEAR 2010, BUT THEY WERE CONTRACTUALLY ENTITLED TO SEVERANCE PAYMENTS AT THEIR RATE OF PAY AT THE TIME OF TERMINATION FOR A PERIOD OF UP TO 12 MONTHS POST DISCHARGE (6 MONTHS GUARANTEED, AND AN ADDITIONAL 6 MONTHS AT FULL COMPENSATION IF NO ALTERNATE EMPLOYMENT WAS PROCURED OR TO BE OFFSET AGAINST EMPLOYMENT WHICH COMPENSATED THE INDIVIDUAL AT LESS THAN THEIR RATE OF PAY AT EDWARD); INDIVIDUALS WHO RECEIVED SEVERANCE WERE SUBJECT TO A NON-COMPETE WITHIN A CERTAIN GEOGRAPHIC RADIUS AROUND THE ORGANIZATION. MAGGIE SHONTZ RECEIVED A SEVERANCE PAYMENT OF $165,141. CEO/EXECUTIVE DIRECTOR COMPENSATION SCHEDULE J, PART I, LINE 3 EXECUTIVE COMPENSATION, INCLUDING THE PRESIDENT AND ALL OFFICERS ("SENIOR MANAGEMENT"), IS MANAGED BY THE EDWARD HEALTH SERVICES CORPORATION EXECUTIVE COMMITTEE ("COMMITTEE"), ON BEHALF OF EHSC AND ALL OF ITS AFFILIATES, INCLUDING EDWARD HOSPITAL. ON AN ANNUAL BASIS, THE COMMITTEE REVIEWS COMPENSATION ARRANGEMENTS, INCLUDING THE COMPENSATION AWARD FOR THE EDWARD HOSPITAL PRESIDENT/CEO FOR THE COMING YEAR. THE COMMITTEE CONDUCTS THE REVIEW IN A MANNER THAT WILL QUALIFY FOR THE REBUTTABLE PRESUMPTION OF REASONABLENESS UNDER THE INTERMEDIATE SANCTION RULES OF SECTION 4958 OF THE INTERNAL REVENUE CODE. EDWARD HOSPITAL DOES NOT HAVE AN "EXECUTIVE DIRECTOR" POSITION. ILLINOIS FINANCE AUTHORITY SERIES 2008A 861091967 45200FFF1 2008-04-09 85733137 REVENUE BONDS - SEE SCHEDULE O false false false ILLINOIS FINANCE AUTHORITY SERIES 2008 B-1 B-2 & C 861091967 45200FFY0 2008-04-30 126220000 REVENUE REFUNDING BONDS - SEE SCHEDULE O false false false ILLINOIS FINANCE AUTHORITY SERIES 2009-A 861091967 45200FB65 2009-10-28 43500000 REVENUE REFUNDING BONDS - SEE SCHEDULE O false false false 0 0 85733137 0 0 0 0 0 0 0 0 0 2008 true false true true 0 0 126220000 0 0 0 186837 0 0 0 0 0 2008 true false true true 0 0 43500000 0 0 0 707220 0 0 0 0 0 2009 true false true true false false false false true 0.0000 0.0000 0.0000 true false true true false true 0.0015 0.0000 0.0015 true false true true false true 0.0319 0.0000 0.0319 true false false false 0.0 false 0.0 false false false true true CITIGROUPGOLDMAN SACHDEUTSCHE BANK 33.0 true false false false true false true true JP MORGAN CHASE 30.0 false false false false false DESCRIPTION OF PURPOSE SCHEDULE K, PART I, COLUMN (F) THE PURPOSE OF THE ISSUANCE OF THE BONDS REPORTED IN SCHEDULE K ARE AS FOLLOWS: ILLINOIS FINANCE AUTHORITY SERIES 2008A THESE REVENUE BONDS WERE USED TO REFUND THE 7/1/1998 BOND ISSUE. ILLINOIS FINANCE AUTHORITY SERIES 2008 B-1,B-2,& C THESE REVENUE REFUNDING BONDS WERE USED TO REFUND THE 3/7/2007 BOND ISSUE. ILLINOIS FINANCE AUTHORITY SERIES 2009-A THESE REVENUE REFUNDING BONDS WERE USED TO REFUND THE 4/4/2001 AND THE 7/1/2005 BOND ISSUES. THE BONDS WERE ORIGINALLY ISSUED FOR A NUMBER OF VARIOUS PURPOSES, INCLUDING THE FINANCING OF THE CONSTRUCTION OF THE HEART HOSPITAL, EXPANDING THE HEART HOSPITAL, AND MRI REPLACEMENT. PETE SCHUBEL MD FAMILY MEMBER OF RON SCHUBEL, DIRECTOR 487450 EMPLOYMENT AS EMERGENCY DEPARTMENT PHYSICIAN false PROGRAM SERVICE DESCRIPTION FORM 990, PART III, LINE 4A ACCREDITED BY THE JOINT COMMISSION, EDWARD HAS EARNED A REPUTATION AS A LEADER IN COMPLEX MEDICAL SPECIALTIES AND INNOVATIVE PROGRAMMING, INCLUDING, BUT NOT LIMITED TO THE FOLLOWING: -- MOST UP-TO-DATE SURGICAL SUITES, INCLUDING SIX STATE-OF-THE-ART OPERATING ROOMS FOR MINIMALLY INVASIVE SURGICAL PROCEDURES AND THE DA VINCI SI ROBOTIC SURGICAL SYSTEM. -- COMPREHENSIVE, ADVANCED CARDIAC CARE IN ONE LOCATION THROUGH EDWARD HEART HOSPITAL (THE FIRST SUCH FACILITY IN ILLINOIS, OPENED IN 2002). -- HEARTAWARE, AN ONLINE TEST SO PEOPLE CAN DETERMINE THEIR RISK FOR HEART DISEASE AND AN INITIATIVE TO ENHANCE AND PROMOTE THE PREVENTION OF HEART DISEASE. -- EDWARD PROVIDES WORLD CLASS STROKE CARE THROUGH THE EDWARD NEUROSCIENCES INSTITUTE IN AFFILIATION WITH THE NORTHWESTERN MEDICAL FACULTY FOUNDATION. THE INSTITUTE FEATURES THE MOST ADVANCED INTERVENTIONAL NEUROSURGERY TECHNIQUES AND DRUG THERAPIES TO TREAT STROKES AND OTHER NEUROLOGICAL DISORDERS. -- EDWARD CANCER CENTER HAS OPENED A NUMBER OF MULTIDISCIPLINARY ONCOLOGY CLINICS, INCLUDING A MULTIDISCIPLINARY THORACIC ONCOLOGY CLINIC, THE FIRST OF ITS KIND IN DUPAGE, WILL AND KANE COUNTIES, FOR COORDINATED, FASTER, MORE EFFICIENT TREATMENT OF LUNG CANCER AND OTHER MALIGNANCIES AND ABNORMALITIES OF THE CHEST; A NEURO-ONCOLOGY MULTIDISCIPLINARY CENTER, THE ONLY ONE IN THE AREA TO TREAT BRAIN AND SPINAL CORD TUMORS AND A BREAST CANCER CONFERENCE, A MULTIDISCIPLINARY TEAM THAT MEETS WEEKLY TO DETERMINE THE BEST TREATMENT PLAN FOR NEWLY DIAGNOSED BREAST CANCER PATIENTS. -- EDWARD WAS RE-DESIGNATED A MAGNET HOSPITAL FOR NURSING EXCELLENCE IN 2010 AFTER RECEIVING ITS ORIGINAL DESIGNATION IN 2005. EDWARD IS ONE OF ONLY THREE HOSPITALS IN DUPAGE COUNTY AND THE ONLY ONE SERVING WILL COUNTY TO HAVE EARNED THE PRESTIGIOUS RECOGNITION. -- CARE FOR THE MOST CRITICALLY ILL NEWBORNS IN ITS LEVEL III NEWBORN INTENSIVE CARE UNIT (NICU) -- EXPERT EMERGENCY SERVICES FOR ADULTS AND PEDIATRIC PATIENTS IN ITS LEVEL II EMERGENCY DEPARTMENT AND PEDIATRIC EMERGENCY DEPARTMENT. -- STATE-OF-THE-ART IMAGING TECHNOLOGY AT NUMEROUS LOCATIONS THROUGHOUT THE REGION. -- ACCESS TO THE LATEST CLINICAL TRIALS FOR CANCER AND HEART DISEASE. -- FIRST IN THE REGION TO OFFER ANIMAL-ASSISTED THERAPY, MUSIC THERAPY AND ART THERAPY THROUGH ITS HEALING ARTS PROGRAM. DURING THE FISCAL YEAR ENDED JUNE 30, 2011, EDWARD HOSPITAL PROVIDED $79 MILLION IN COMMUNITY BENEFITS, THE NINTH YEAR IN A ROW THE AMOUNT HAS INCREASED, AND $13.6 MILLION IN CHARITY CARE, A 250% INCREASE SINCE FY 2006 AND THE EIGHTH STRAIGHT YEAR CHARITY CARE HAS INCREASED. FOR FISCAL YEAR 2011, EDWARD HOSPITAL HAD 79,305 PATIENT DAYS AND 505,001 EMERGENCY ROOM AND OUTPATIENT VISITS. FOR MORE INFORMATION ABOUT EDWARD HOSPITAL, VISIT WWW.EDWARD.ORG. Classes of members or stockholders Form 990, Part VI, Section A, Line 6 EDWARD HOSPITAL'S SOLE CORPORATE MEMBER IS EDWARD HEALTH SERVICES CORPORATION, AN ILLINOIS NOT-FOR-PROFIT AND SECTION 501(C)(3) TAX EXEMPT CORPORATION. Members or stockholders electing members of governing body Form 990, Part VI, Section A, Line 7a EDWARD HOSPITAL'S SOLE CORPORATE MEMBER, EDWARD HEALTH SERVICES CORPORATION, MAY ELECT, REMOVE AND REPLACE MEMBERS OF THE BOARD OF TRUSTEES OF EDWARD HOSPITAL. THE EHSC BOARD OF TRUSTEES CONSISTS OF THE INDIVIDUALS WHO CONCURRENTLY SERVE ON THE EH BOARD OF TRUSTEES. Decisions requiring approval by members or stockholders Form 990, Part VI, Section A, Line 7b THE BOARD OF TRUSTEES OF EDWARD HOSPITAL'S SOLE CORPORATE MEMBER, EDWARD HEALTH SERVICES CORPORATION ("EHSC"), HAS THE FOLLOWING EXCLUSIVE POWERS OVER EDWARD HOSPITAL ("EH"): -ELECT, REMOVE AND REPLACE MEMBERS OF THE BOARD OF TRUSTEES OF EDWARD HOSPITAL ("EH BOARD OF TRUSTEES"). -APPROVE, BEFORE THEY MAY BECOME EFFECTIVE, ALL AMENDMENTS TO THE ARTICLES OF INCORPORATION OF EH PROPOSED BY THE EH BOARD OF TRUSTEES AND ENACT OR AMEND ARTICLES OF INCORPORATION FOR EH IN THE DISCRETION OF EHSC. -APPROVE A PLAN OF DISSOLUTION OR LIQUIDATION OF EH OR A PLAN OF MERGER OR CONSOLIDATION OF EH WITH ANOTHER CORPORATION. -ADOPT, OR PERMIT THE ADOPTION OF, ANY ANNUAL OR LONG-TERM CAPITAL OR OPERATIONAL BUDGET OF EH OR OF ANY AFFILIATE OR SUBSIDIARY OF EH. -APPROVE, OR PERMIT THE APPROVAL OF, ANY LONG-TERM BORROWING OF MONEY FOR CAPITAL NEEDS BY EH OR BY ANY AFFILIATE OR SUBSIDIARY OF EH. -APPROVE, BEFORE IT MAY BECOME EFFECTIVE, THE CREATION OF ANY TAXABLE OR TAX-EXEMPT SUBSIDIARY ORGANIZATION OF EH. -ADOPT POLICIES WHICH MAY IMPOSE OBLIGATIONS UPON THE EH BOARD OF TRUSTEES OR LIMITATIONS ON THE POWERS OF THE EH BOARD OF TRUSTEES WHICH SHALL BE CONSISTENT WITH THE BYLAWS AND THE ARTICLES OF INCORPORATION OF EH, PROVIDED THAT THE POLICIES SHALL FIRST BE SUBMITTED TO THE EH BOARD OF TRUSTEES FOR COMMENT UPON NO LESS THAN THIRTY (30) DAYS PRIOR WRITTEN NOTICE. ANY POLICIES AS DESCRIBED ABOVE WHICH ARE ADOPTED BY THE EHSC BOARD OF TRUSTEES SHALL BE DELIVERED TO THE CHAIRMAN, PRESIDENT OR SECRETARY OF EH, SIGNED BY AN AUTHORIZED OFFICER OF EHSC, AND SHALL BE EFFECTIVE AS OF THE DATE OF DELIVERY. THE EHSC BOARD OF TRUSTEES CONSISTS OF THE INDIVIDUALS WHO CONCURRENTLY SERVE ON THE EH BOARD OF TRUSTEES. Review of form 990 by governing body Form 990, Part VI, Section B, Line 11a A DRAFT OF THE FULL FORM 990 WAS PROVIDED TO THE EDWARD HEALTH SERVICES CORPORATION AUDIT COMMITTEE, AND WAS REVIEWED WITH THE ASSISTANCE OF CROWE HORWATH. FOLLOWING REVIEW BY THE AUDIT COMMITTEE, AND PRIOR TO FILING, A FINAL COPY OF THE FORM 990 WAS THEN PROVIDED TO THE FULL BOARD OF TRUSTEES, AND KEY COMPONENTS OF THE FORM 990 WERE ALSO REVIEWED. Conflict of interest policy Form 990, Part VI, Section B, Line 12c EDWARD HEALTH SERVICES CORPORATION, ON BEHALF OF ITSELF AND ALL AFFILIATES INCLUDING EDWARD HOSPITAL, MONITORS AND ENFORCES COMPLIANCE WITH ITS CONFLICT OF INTEREST POLICY THROUGH ANNUAL REPORTING, AND ONGOING EDUCATION. EACH YEAR, EHSC CONDUCTS AN ANNUAL CONFLICT OF INTEREST REVIEW. THIS PROCESS INVOLVES REQUIRING ALL TRUSTEES, OFFICERS, KEY EMPLOYEES, CONTRACTED PHYSICIANS AND PHYSICIANS IN LEADERSHIP ROLES, AND MANAGEMENT LEVEL EMPLOYEES TO COMPLETE AN ELECTRONIC CONFLICT OF INTEREST QUESTIONNAIRE. THE DATA ARE REPORTED BACK TO THE DIRECTOR OF COMPLIANCE AND PRIVACY, WHO ASSESSES THE REPORTED CONFLICTS TO DETERMINE WHETHER THEY REQUIRE ANY FOLLOW-UP ACTION, INCLUDING DIVESTITURE OF ANY BUSINESS INTEREST OR POSSIBLE TERMINATION OF ANY BUSINESS RELATIONSHIP. THE DIRECTOR OF COMPLIANCE AND PRIVACY ENSURES THAT ALL REQUIRED INDIVIDUALS SUBMIT A COMPLETED QUESTIONNAIRE, AND IF NO REPORT IS COMPLETED, THE MATTER IS REPORTED TO THE BOARD OF TRUSTEES. THE BOARD OF TRUSTEES IS ALSO PROVIDED A SUMMARY REPORT OF ALL ACTUAL OR POTENTIAL CONFLICTS OF INTEREST, SO THAT THEY ARE AWARE OF THESE RELATIONSHIPS AS THE BUSINESS OF THE BOARD IS BEING CONDUCTED. IN CASES WHERE AN ACTUAL OR POTENTIAL CONFLICT IS IDENTIFIED, THE CONFLICTED INDIVIDUAL IS EDUCATED ABOUT HOW THEY SHOULD RAISE THIS ISSUE IF THEY ARE EVER IN A POSITION WHERE THEIR CONFLICT MAY BE IMPLICATED. CONFLICTED INDIVIDUALS MUST RECUSE THEMSELVES FROM VOTING, BUT, AT THE DISCRETION OF THE BOARD, MAY BE PERMITTED TO PARTICIPATE IN DISCUSSION ABOUT MATTERS IN WHICH THEY HAVE AN ACTUAL OR APPARENT CONFLICT. IN ADDITION TO THIS ANNUAL REPORTING, ALL INDIVIDUALS NOTED ABOVE ARE ADVISED THAT, PURSUANT TO THE CONFLICTS POLICY, THEY ARE REQUIRED TO REPORT TO THE DIRECTOR OF COMPLIANCE AND PRIVACY ANY ACTUAL OR POTENTIAL CONFLICTS OF INTEREST AS THEY MAY ARISE THROUGHOUT THE COURSE OF THE YEAR. Process used to establish compensation of top management official Form 990, Part VI, Section B, Line 15a EXECUTIVE COMPENSATION, INCLUDING THE CEO AND ALL OFFICERS ("SENIOR MANAGEMENT"), IS MANAGED BY THE EHSC EXECUTIVE COMMITTEE ("COMMITTEE"), ON BEHALF OF EHSC AND ALL OF ITS AFFILIATES. ON AN ANNUAL BASIS, THE COMMITTEE REVIEWS COMPENSATION ARRANGEMENTS, AND BASED ON SUCH REVIEW, THE COMMITTEE RECOMMENDS THE COMPENSATION AWARD FOR THE EHSC CEO FOR THE COMING YEAR TO THE EHSC BOARD FOR APPROVAL. THE COMMITTEE CONDUCTS THE REVIEW IN A MANNER THAT WILL QUALIFY FOR THE REBUTTABLE PRESUMPTION OF REASONABLENESS UNDER THE INTERMEDIATE SANCTION RULES OF SECTION 4958 OF THE INTERNAL REVENUE CODE. TO THAT END: - THE CEO AND ALL OTHER MEMBERS OF SENIOR MANAGEMENT MAY PARTICIPATE IN THIS REVIEW PROCESS AND BE PRESENT AT MEETINGS OF THE COMMITTEE ONLY IF AND TO THE EXTENT NECESSARY TO ANSWER QUESTIONS AND PROVIDE OTHER INFORMATION THE COMMITTEE NEEDS FOR ITS ANALYSIS, ASSESSMENT AND DELIBERATIONS, AND THEY MUST OTHERWISE RECUSE THEMSELVES FROM COMMITTEE MEETINGS DURING COMMITTEE DEBATE AND VOTING ON COMPENSATION ARRANGEMENTS. - THE COMMITTEE CONFIRMS PRIOR TO COMMENCEMENT OF THE ANNUAL REVIEW THAT NO OTHER MEMBER OF THE COMMITTEE HAS A CONFLICT OF INTEREST WITH REGARD TO THE COMPENSATION MATTERS ADDRESSED IN THE REVIEW. ANY MEMBER IDENTIFIED AS HAVING A CONFLICT SHALL PARTICIPATE IN THE PROCESS ONLY TO THE SAME EXTENT AS MEMBERS OF SENIOR MANAGEMENT. - THE COMMITTEE CONDUCTS THE REVIEW WITH THE ASSISTANCE OF AN EXPERIENCED AND INDEPENDENT COMPENSATION FIRM, WHO SHALL SUMMARIZE ITS ANALYSIS AND FINDINGS IN WRITING TO THE EXECUTIVE COMMITTEE. - THE COMMITTEE OBTAINS AND RELIES UPON CURRENT, COMPARABLE MARKET COMPENSATION DATA FOR APPROPRIATE PEER ORGANIZATIONS FOR EACH COMPENSATION COMPONENT PRIOR TO MAKING ITS DETERMINATION. RELEVANT INFORMATION WILL INCLUDE COMPENSATION LEVELS PAID BY SIMILARLY SITUATED ORGANIZATIONS, BOTH TAXABLE AND TAX-EXEMPT, FOR FUNCTIONALLY COMPARABLE POSITIONS; THE AVAILABILITY OF SIMILAR SERVICES IN THE GEOGRAPHIC AREA SERVED BY EHSC; CURRENT COMPENSATION SURVEYS COMPILED BY AN INDEPENDENT FIRM; AND ACTUAL WRITTEN OFFERS FROM SIMILAR ORGANIZATIONS COMPETING FOR THE SERVICES OF THE MEMBERS OF SENIOR MANAGEMENT. - THE EXECUTIVE COMMITTEE ALSO ADEQUATELY AND PROMPTLY DOCUMENTS ITS DECISION. THE DOCUMENTATION STATES THE INTENTION TO QUALIFY FOR THE REBUTTABLE PRESUMPTION OF REASONABLENESS; THE SPECIFIC TERMS OF THE COMPENSATION ARRANGEMENT THAT WERE APPROVED; THE APPROVAL DATE; THE NAMES OF THE INDIVIDUALS PRESENT AND THOSE WHO VOTED; THE SPECIFIC COMPARABILITY DATA OBTAINED AND RELIED UPON; AND AN EXPLANATION AS TO WHY THE APPROVED AMOUNTS ARE CONSIDERED REASONABLE IF THE TERMS OF THE COMPENSATION ARRANGEMENT DIFFER FROM THE COMPARABILITY DATA. IT ALSO REFLECTS THE STEPS TAKEN BY THE COMMITTEE TO CONFIRM THE ABSENCE OF CONFLICTS ON THE PART OF ANY COMMITTEE MEMBER AND TO MEET THE FOREGOING REQUIREMENTS CONCERNING THE NATURE AND EXTENT OF PARTICIPATION OF ANY CONFLICTED COMMITTEE MEMBER OR MEMBERS OF SENIOR MANAGEMENT. IN ADDITION, THE EXECUTIVE COMMITTEE PERIODICALLY REVIEWS THE EXECUTIVE COMPENSATION PLAN, INCLUDING THE PHILOSOPHY, FOR (A) COMPLIANCE WITH APPLICABLE LAWS AND REGULATIONS, AND (B) ALIGNMENT WITH EHSC'S MISSION, CHARITABLE PURPOSES, GOALS AND STRATEGIES. BASED ON THE REVIEW, THE COMMITTEE DEVELOPS AND RECOMMENDS TO THE FULL BOARD FOR ITS APPROVAL CHANGES IN ONE OR MORE COMPONENTS OF THE PLAN OR THE PLAN PHILOSOPHY THAT THE COMMITTEE CONSIDERS NECESSARY AND APPROPRIATE RELATIVE TO ONE OR BOTH OF THESE CRITERIA. OTHER INDIVIDUALS WHO ARE KEY EMPLOYEES OF EDWARD HEALTH SERVICES CORPORATION ARE COMPENSATED WITH A COMPETITIVE BASE SALARY, ALONG WITH AN INCENTIVE PLAN, WHICH IS REFLECTIVE OF EDWARD'S MARKET, AS DETERMINED BY A REVIEW OF INDEPENDENTLY GATHERED MARKET COMPENSATION SURVEY DATA. - AT THE TIME OF HIRE, THE SALARY DETERMINATION IS MADE BY GIVING CONSIDERATION TO EXPERIENCE PERTINENT TO THE ROLE FOR WHICH THE INDIVIDUAL IS TO BE HIRED. ALSO CONSIDERED ARE NICHE SKILLS OR EXPERIENCE THIS KEY EMPLOYEE BRINGS TO THE ORGANIZATION. SUPPLY AND DEMAND WILL ALSO PLAY A ROLE IN DETERMINING THE HIRE IN RATE OF PAY. BASED ON THESE FACTORS, EHSC HUMAN RESOURCES DEPARTMENT, WHICH SUPPORTS EHSC AND ALL OF ITS AFFILIATES, WILL ASSIGN THE KEY EMPLOYEE TO AN APPROPRIATE PAY GRADE, AND A RATE OF PAY WILL BE OFFERED WITHIN THAT PAY GRADE. - ON AN ANNUAL BASIS, EHSC HUMAN RESOURCES WORKS WITH AN INDEPENDENT THIRD PARTY COMPENSATION CONSULTANT (SULLIVAN COTTER) TO CONDUCT A THOROUGH MARKET REVIEW OF ALL POSITIONS WHICH ARE NOT CONSIDERED SENIOR MANAGEMENT. USING A VARIETY OF SOURCES, OUR SALARY RANGES ARE COMPARED TO THE CURRENT MARKET. PAY GRADE ASSIGNMENTS, AND INDIVIDUAL RATES OF PAY, MAY CHANGE BASED ON THE RESULTS OF THIS ANNUAL MARKET REVIEW. IN ADDITION, ANNUAL MERIT INCREASES MAY BE AWARDED BASED ON EDWARD'S BUDGET FOR THE YEAR. Process used to establish compensation of other officers/key employees Form 990, Part VI, Section B, Line 15b PLEASE SEE THE NARRATIVE TO FORM 990, PART VI, LINE 15A. Public Disclosure Form 990, Part VI, Section C, Line 19 CURRENTLY, THE ORGANIZATION'S GOVERNING DOCUMENTS, CONFLICT OF INTEREST POLICY AND AUDITED FINANCIAL STATEMENTS ARE AVAILABLE UPON REQUEST. IF A REQUEST IS RECEIVED FOR THIS INFORMATION, IT IS FORWARDED ON TO EITHER THE LEGAL DEPARTMENT OR THE FINANCE DEPARTMENT, AND THE MATERIALS WOULD THEN BE PROVIDED TO THE REQUESTOR. JOINT VENTURE ARRANGEMENTS FORM 990, PART VI, SECTION B, LINE 16B CURRENTLY, IT IS THE POLICY OF EHSC AND EDWARD HOSPITAL THAT PARTICIPATION BY THE HOSPITAL, OR ANY EDWARD AFFILIATE, IN A JOINT VENTURE REQUIRES REVIEW BY THE EHSC FINANCE COMMITTEE (REGARDLESS OF THE DOLLAR AMOUNT OF THE INVESTMENT) AND APPROVAL BY THE EHSC BOARD OF TRUSTEES. REGARDLESS OF THE PERCENTAGE OWNERSHIP THAT ANY EDWARD ENTITY MAY HAVE IN THE JOINT VENTURE, THE VENTURE'S GOVERNING DOCUMENTS MUST INCLUDE THE FOLLOWING PROVISIONS RELATED TO THE ENTITY: (1) IT IS TO BE OPERATED IN A MANNER CONSISTENT WITH EDWARD'S CHARITABLE MISSION, (2) THERE IS A COMMITMENT TO PROVIDE FREE OR UNCOMPENSATED CARE, TREAT MEDICAID AND MEDICARE PATIENTS AND MAINTAIN HEALTH CARE AND EDUCATION PROGRAMS FOR THE BENEFIT OF THE COMMUNITY, (3) THE ACTIVITIES OF SHOULD RESULT IN SIGNIFICANT COMMUNITY BENEFITS SUCH AS: (A) THE CREATION OF A NEW PROVIDER OF HEALTHCARE SERVICES, (B) THE EXPANSION OF COMMUNITY HEALTHCARE RESOURCES, (C) THE IMPROVEMENT IN TREATMENT MODALITY, (D) THE REDUCTION IN HEALTHCARE COSTS, OR (E) THE IMPROVEMENT IN PATIENT CONVENIENCE AND ACCESS TO PHYSICIANS, AND (4) HEALTHCARE SERVICES MUST BE PROVIDED IN A NON-DISCRIMINATORY MANNER. Average hours worked per week for related organization Form 990, Part VII, Section A, Column B PAMELA DAVIS - PAMELA DAVIS DEVOTES APPROXIMATELY 35 HOURS PER WEEK TO THE RELATED TAX-EXEMPT ORGANIZATION EDWARD HEALTH SERVICES CORPORATION AND APPROXIMATELY 1 HOUR PER WEEK TO EACH OF THE RELATED TAX-EXEMPT ORGANIZATIONS: EDWARD HEALTH AND FITNESS CENTER, EDWARD HEALTH VENTURES NAPERVILLE PSYCHIATRIC HOSPITAL AND EDWARD FOUNDATION. HODA EL-ASMAR, MD - HODA EL-ASMAR DEVOTES APPROXIMATELY 35 HOURS PER WEEK TO THE RELATED TAX-EXEMPT ORGANIZATION EDWARD HEALTH SERVICES CORPORATION AND APPROXIMATELY 1 HOUR PER WEEK TO EACH OF THE RELATED TAX-EXEMPT ORGANIZATIONS: EDWARD HEALTH VENTURES, AND NAPERVILLE PSYCHIATRIC HOSPITAL. NANETTE BUFALINO - NANETTE BUFALINO DEVOTES APPROXIMATELY 35 HOURS PER WEEK TO THE RELATED TAX-EXEMPT ORGANIZATION EDWARD HEALTH SERVICES CORPORATION AND APPROXIMATELY 1 HOUR PER WEEK TO EACH OF THE RELATED TAX-EXEMPT ORGANIZATIONS: EDWARD HEALTH AND FITNESS CENTER, EDWARD HEALTH VENTURES, NAPERVILLE PSYCHIATRIC HOSPITAL AND EDWARD FOUNDATION. BRIAN DAVIS - BRIAN DAVIS DEVOTES APPROXIMATELY 35 HOURS PER WEEK TO THE RELATED TAX-EXEMPT ORGANIZATION EDWARD HEALTH SERVICES CORPORATION AND APPROXIMATELY 1 HOUR PER WEEK TO EACH OF THE RELATED TAX-EXEMPT ORGANIZATIONS: EDWARD HEALTH AND FITNESS CENTER, EDWARD HEALTH VENTURES NAPERVILLE PSYCHIATRIC HOSPITAL AND EDWARD FOUNDATION. ANNETTE KENNEY - ANNETTE KENNEY DEVOTES APPROXIMATELY 35 HOURS PER WEEK TO THE RELATED TAX-EXEMPT ORGANIZATION EDWARD HEALTH SERVICES CORPORATION AND APPROXIMATELY 1 HOUR PER WEEK TO EACH OF THE RELATED TAX-EXEMPT ORGANIZATIONS: EDWARD HEALTH AND FITNESS CENTER, EDWARD HEALTH VENTURES, NAPERVILLE PSYCHIATRIC HOSPITAL AND EDWARD FOUNDATION. WILLIAM KOTTMANN - WILLIAM KOTTMANN DEVOTES APPROXIMATELY 35 HOURS PER WEEK TO THE RELATED TAX-EXEMPT ORGANIZATION EDWARD HEALTH SERVICES CORPORATION AND APPROXIMATELY 1 HOUR PER WEEK TO EACH OF THE RELATED TAX-EXEMPT ORGANIZATIONS: EDWARD HEALTH VENTURES NAPERVILLE PSYCHIATRIC HOSPITAL AND EDWARD FOUNDATION. MARY LOU MASTRO - MARY LOU MASTRO DEVOTES APPROXIMATELY 35 HOURS PER WEEK TO THE RELATED TAX-EXEMPT ORGANIZATION EDWARD HEALTH SERVICES CORPORATION AND APPROXIMATELY 1 HOUR PER WEEK TO EACH OF THE RELATED TAX-EXEMPT ORGANIZATIONS: EDWARD HEALTH AND FITNESS CENTER, EDWARD HEALTH VENTURES AND NAPERVILLE PSYCHIATRIC HOSPITAL. MARIANNE SPENCER - MARIANNE SPENCER DEVOTES APPROXIMATELY 35 HOURS PER WEEK TO THE RELATED TAX-EXEMPT ORGANIZATION EDWARD HEALTH SERVICES CORPORATION. DENNISE VAUGHN - DENNISE VAUGHN DEVOTES APPROXIMATELY 35 HOURS PER WEEK TO THE RELATED TAX-EXEMPT ORGANIZATION EDWARD HEALTH SERVICES CORPORATION AND APPROXIMATELY 1 HOUR PER WEEK TO EACH OF THE RELATED TAX-EXEMPT ORGANIZATIONS: EDWARD HEALTH AND FITNESS CENTER, EDWARD HEALTH VENTURES NAPERVILLE PSYCHIATRIC HOSPITAL AND EDWARD FOUNDATION. VINCENT PRYOR - VINCE PRYOR DEVOTES APPROXIMATELY 35 HOURS PER WEEK TO THE RELATED TAX-EXEMPT ORGANIZATION EDWARD HEALTH SERVICES CORPORATION AND APPROXIMATELY 1 HOUR PER WEEK TO EACH OF THE RELATED TAX-EXEMPT ORGANIZATIONS: EDWARD HEALTH AND FITNESS CENTER, EDWARD HEALTH VENTURES, NAPERVILLE PSYCHIATRIC HOSPITAL AND EDWARD FOUNDATION. BARBARA BYRNE, MD - BARBARA BYRNE DEVOTES APPROXIMATELY 35 HOURS PER WEEK TO THE RELATED TAX-EXEMPT ORGANIZATION EDWARD HEALTH SERVICES CORPORATION AND APPROXIMATELY 1 HOUR PER WEEK TO EACH OF THE RELATED TAX-EXEMPT ORGANIZATIONS: EDWARD HEALTH AND FITNESS CENTER, EDWARD HEALTH VENTURES AND NAPERVILLE PSYCHIATRIC HOSPITAL. BRENT SMITH, DO - BRENT SMITH APPROXIMATELY 35 HOURS PER WEEK TO THE RELATED TAX-EXEMPT ORGANIZATION EDWARD HEALTH SERVICES CORPORATION AND APPROXIMATELY 1 HOUR PER WEEK TO EACH OF THE RELATED TAX-EXEMPT ORGANIZATIONS: EDWARD HEALTH AND FITNESS CENTER, EDWARD HEALTH VENTURES, NAPERVILLE PSYCHIATRIC HOSPITAL AND EDWARD FOUNDATION. Other changes in net assets or fund balances Form 990, Part XI, Line 5 NET UNREALIZED GAINS (LOSSES) ON INVESTMENTS - 31146593; GAIN ON INTEREST RATE SWAP - 4491770; NET ASSETS RELEASED FROM RESTRICTIONS FROM EDWARD FOUNDATION - 1193261; CHANGE IN INTEREST IN TEMPORARILY RESTRICTED NET ASSETS OF EDWARD FOUNDATION - -1141419; DEFERRED DONATION REVENUE FOR CAPITAL ITEMS TRANSFERED FROM EDWARD FOUNDATION - -23590; EDWARD HEALTH SERVICES CORPORATION 801 SOUTH WASHINGTON STREET NAPERVILLE IL 60540 363513954 PARENT IL 501(C)(3) 11 - Type II NA false NAPERVILLE PSYCHIATRIC VENTURES 801 SOUTH WASHINGTON STREET NAPERVILLE IL 60540 363965251 HOSPITAL IL 501(C)(3) 3 EHV false EDWARD HEALTH VENTURES 801 SOUTH WASHINGTON STREET NAPERVILLE IL 60540 581672987 SUPPORTING ORG IL 501(C)(3) 11 - Type II EHSC false EDWARD FOUNDATION 801 SOUTH WASHINGTON STREET NAPERVILLE IL 60540 363723705 FUNDRAISING IL 501(C)(3) 7 EHSC false EDWARD HEALTH & FITNESS 801 SOUTH WASHINGTON STREET NAPERVILLE IL 60540 363555528 HEALTH CARE IL 501(C)(3) 9 EHV false EDWARD AMBULANCE SERVICES LLC 801 SOUTH WASHINGTON STREET NAPERVILLE IL 60540 452389060 HEALTH CARE IL 501(C)(3) 11 - Type II EH true EDWARD PHYSICIAN OFFICE CENTER 801 S WASHINGTON ST NAPERVILLE IL 60540 HEALTH CARE IL EHV RELATED false false 0.3564 THE CENTER FOR SURGERY LP 801 S WASHINGTON ST NAPERVILLE IL 60540 HEALTH CARE IL NA EDWARD MANAGEMENT CORPORATION 801 SOUTH WASHINGTON STREET NAPERVILLE IL 60540 363833311 MANAGEMENT CORP IL EHV C CORPORATION NAPERVILLE HEALTH CARE ASSOC LTD 801 SOUTH WASHINGTON STREET NAPERVILLE IL 60540 363651180 HEALTH CARE IL EH C CORPORATION 1 EHSC CAYMAN SEGREGATED PORTFOLIO 1ST CARRIBEAN HSE 3RD FL 10 MAIN ST GEORGE TOWN CJ 000000000 INSURANCE CJ EHSC C CORPORATION ILLINOIS HEALTH PARTNERS LLC 801 SOUTH WASHINGTON NAPERVILLE IL 60540 452389060 HEALTH CARE IL EHSC C CORPORATION true false true false false false false false false true true true true true false true false true