2011-05-16T14:04:24-05:00 2010-06-30 KPMG LLP 355 S Grand Ave Suite 2000 Los Angeles CA 90071 990 2009-07-01 952321786 Children's Hospital of Orange County CHIL 7149973000 455 S Main Street Orange CA 928683874 Kerri Ruppert Schiller 2011-05-13 2139724000 2009 2016-02-24 21:20:13Z KIMBERLY C CRIPE 455 S MAIN STREET ORANGE CA 928683874 469338119 false X www.choc.org X 1964 CA TO NURTURE, ADVANCE AND PROTECT THE HEALTH AND WELL-BEING OF CHILDREN. 13 11 2719 661 0 0 12675296 63114786 393638620 399360759 667051 959578 12661182 5535802 419642149 468970925 0 0 0 0 163598390 164218628 0 0 0 230582375 237721998 394180765 401940626 25461384 67030299 250819489 327290574 80587911 91262264 170231578 236028310 TO NURTURE, ADVANCE AND PROTECT THE HEALTH AND WELL-BEING OF CHILDREN. false false 369911214 0 403335103 PROVIDES PEDIATRIC SERVICES FOR THE MEDICAL/SURGICAL CARE OF CHILDREN FROM BIRTH TO AGE 17; 61,467 DAYS OF INPATIENT CARE; 56,366 EMERGENCY ROOM VISITS; 12,479 DISCHARGES; 155,832 PRIMARY AND SPECIALTY CARE VISITS; AND 8,240 SURGERIES PERFORMED DURING THE FISCAL YEAR. SEE OUR COMPLETE COMMUNITY BENEFIT REPORT ON OUR WEBSITE AT WWW.CHOC.ORG 369911214 true true false true false false false false true true true true false false false false false false false false true false false true false false false false false false false true false false false false false true true false false true 410 0 true 2719 true false false false false false false false false false 13 11 false false true false true true true true true false false true true true true true true true true false CA X DONALD NOBLE 7149973000 455 S MAIN STREET ORANGE CA 928683874 KIMBERLY C CRIPE 30.0 X X 0 1131003 27090 JEFF ELGHANAYAN 2.0 X X 0 0 0 ED GRIER 2.0 X X 0 0 0 WILLIAM GURTNER 2.0 X 0 0 0 MUSTAFA KABEER MD 1.0 X 0 0 0 MEREDITH KHACHIGIAN 1.0 X 0 0 0 JAY KEAR 1.0 X 0 0 0 DOUG MCCOMBS 1.0 X X 0 0 0 MARSHALL ROWEN MD 1.0 X 0 0 0 RALPH CLAYMAN MD 2.0 X 0 0 0 MARK STEVENS 4.0 X X 0 0 0 MAUREEN ZEHNTNER 1.0 X 0 0 0 JANET DAVIDSON 2.0 X 0 0 0 KERRI RUPPERT SCHILLER 20.0 X 0 619500 14603 DEBRA MATHIAS 31.5 X 0 586332 13601 MARIA E MINON MD 40.0 X 593493 0 24898 DANA N BLEDSOE 40.0 X 378701 0 6228 MARK L HEADLAND 40.0 X 378057 0 13521 SHERREL J HOLLINGSWORTH 40.0 X 240315 0 11715 DAVID R SCHINDERLE 40.0 X 309529 0 11724 MATTHEW E NIEDZWIECKI 40.0 X 298260 0 12545 MARGARET T CONK 40.0 X 362153 0 16550 ELIZABETH ROWETT 40.0 X 285033 0 13169 JAMES P CAPPON MD 40.0 X 281701 0 13601 WALDO T ROMERO 40.0 X 372184 0 16377 JAY M GABRIEL 40.0 X 437785 0 13778 3937211 2336835 209400 328 false true false COMFORCE TECHNICAL SERVICES PO BOX 31001 0893 PASADENA CA 91110 TEMPORARY STAFFING 1277344 PEDIATRIC SUBSPECIALTY FACULTY 455 S MAIN STREET 5TH FLOOR ORANGE CA 92868 MEDICAL DIR & SERV 6401816 RED CHIP OF NEVADA 18009 SKY PARK CIRCLE IRVINE CA 92614 MANAGEMENT SERVICES 1039075 CERNER CORPORATION 2800 ROCKCREEK PARKWAY NORTH KANSAS CITY MO 64117 SOFTWARE SERVICES 1554991 SCHALLER ANDERSON OF ARIZONA PO BOX 61628 PHOENIX AZ 85082 MANAGEMENT SERVICES 2675128 15 7743810 55370976 63114786 NET PATIENT REVENUE 900099 328941020 328941020 PREMIUM REVENUE 900099 29856600 29856600 MGMT/OCCUPANCY SERVICES 900099 20113019 20113019 DRUGS/MEDICAL SUPPLIES SOLD 900099 8898394 8898394 RESEARCH REVENUE 900099 4731685 4731685 6820041 6820041 399360759 944273 944273 0 0 21756 21756 21756 21756 382499 367194 15305 15305 15305 0 0 0 PROP 10 REVENUE 900099 3974344 3974344 CAFETERIA/CATERING SALES 900099 607536 607536 PARKING REVENUE 900099 128238 128238 803928 803928 5514046 468970925 403335103 0 2521036 0 0 0 0 1503589 1503589 0 131473511 118326160 13147351 3042286 2738057 304229 18183014 16364713 1818301 10016228 9014605 1001623 0 1296629 1166966 129663 170996 153896 17100 0 0 0 54279133 48851220 5427913 0 10123290 9110961 1012329 0 0 19041633 17137470 1904163 351117 316005 35112 0 324283 291855 32428 916822 825140 91682 0 14247784 12823006 1424778 3877036 3489332 387704 PRCHSD SRVCS OTRER HOSPITALS 66789612 66789612 SUPPLIES 48957483 44061735 4895748 PROVISION FOR BAD DEBT 13351022 13351022 OTHER 3995158 3595870 399288 401940626 369911214 32029412 0 1890307 20248476 38556311 56429948 12954221 11100757 78069700 73632451 3026587 3049843 5530838 6597778 247334059 104034647 98721767 143299412 35058 35058 12034700 12896851 250819489 327290574 49243339 57242822 1647190 1170491 29697382 32848951 80587911 91262264 X 133063160 189159012 36482266 46183146 686152 686152 170231578 236028310 250819489 327290574 X false true true X true true X RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED false false false false false true 34409 false false false 34409 false grants to other organizations for lobbying purposes form 990, schedule c, part II-B, line 1f DURING FYE 06/30/2010, CHILDREN'S HOSPITAL OF ORANGE COUNTY PAID DUES, A PORTION OF WHICH SUPPORTS LOBBYING PURPOSES TO VARIOUS HEALTHCARE ASSOCIATIONS INCLUDING: THE HOSPITAL ASSOCIATION OF SOUTHERN CALIFORNIA $21,202 THE NATIONAL ASSOCIATION OF CHILDREN'S HOSPITALS $13,207 ------- $34,409 8890767 1680574 124137 0 120207 0 10575271 7731850 1223025 -64108 0 0 0 8890767 1.00000 false true true 441942 441942 406748 255384 151364 51691716 18145954 33545762 126390085 85379038 41011047 68403568 254271 68149297 143299412 0 CAPITAL LEASE OBLIGATION 231005 LT WORKERS COMPENSATION 7756773 POST-RETIREMENT BEN OBLIGATION 3145844 EXECUTIVE FLEX BENEFIT PLAN 1333805 DUE TO ST. JOSEPH HOSPITAL 2655356 DUE TO RELATED PARTIES 1293230 DUE TO CHOCO REALTY CORP 14305938 OTHER LIABILITIES 2127000 32848951 468970925 401940626 67030299 460781 1143333 1604114 68634413 470575039 460781 1143333 1604114 468970925 468970925 401940626 401940626 401940626 FIN 48 FORM 990, SCHEDULE D, PART X EFFECTIVE JULY 01, 2007, CHOC ADOPTED THE PROVISIONS OF FASB INTERPRETATION NO. 48, ACCOUNTING FOR UNCERTAINTY IN INCOME TAXES, AN INTERPRETATION OF FASB STATEMENT NO. 109 (FIN 48). CHOC'S ADOPTION OF FIN 48 DID NOT RESULT IN ANY MATERIAL IMPACT ON ITS COMBINED FINANCIAL STATEMENTS. PART XI, LINE 8 AND PART XII, LINE 2D CHANGE IN BENEFICIAL INTEREST IN CHOC FOUNDATION 1,154,181 ADJUSTMENT FOR INCOME FROM INVESTMENT PARTNERSHIPS -10,848 --------- TOTAL 1,143,333 SCHEDULE D, PART V, LINE 4 THE ENDOWMENT FUND IS USED FOR HOSPITAL PROGRAMS AND CHARITY CARE INCLUDING RESEARCH AND TREATMENT OF CHILDREN'S DISEASES AND DISORDERS. true true X true X true X true true false true true 451571 451571 0.00120 176549506 119774892 56774614 0.14610 177001077 119774892 57226185 0.14730 6236332 143288 6093044 0.01570 8639966 3939207 4700759 0.01200 2298014 2298014 0.00590 17174312 4082495 13091817 0.03360 194175389 123857387 70318002 0.18090 87 2881002 66153 2814849 0.00720 87 2881002 66153 2814849 0.00720 false 3201308 0 36000 54670 -18670 X true true CHILDREN'S HOSPITAL OF ORANGE COUNTY

455 SOUTH MAIN STREET ORANGE CA 92868

X X ORANGE PRIMARY CARE CLINIC

455 SOUTH MAIN STREET ORANGE CA 92868

CLINIC CLINICA CHOC PARA NINOS-SANTA ANA

406 SOUTH MAIN STREET SANTA ANA CA 92701

CLINIC SANTA ANA BOYS AND GIRLS CLUB

1000 WEST HIGHLAND SANTA ANA CA 92703

CLINIC ASTHMA BREATHMOBILE

455 SOUTH MAIN STREET ORANGE CA 92868

CLINIC COSTA MESA CLINIC

136 BROADWAY COSTA MESA CA 92627

CLINIC GARDEN GROVE CLINIC

10602 CHAPMAN AVENUE GARDEN GROVE CA 92840

clinic HEALTHY TOMORROWS MOBILE VANS

455 SOUTH MAIN STREET ORANGE CA 92868

CLINIC CHOC CHILDREN'S ENDOCRINE & DIABETES CTR

520 SUPERIOR AVE SUITE 160 NEWPORT BEACH CA 92663

CLINIC CHOC CHILDREN'S HOSPITAL

SPECIALTY CLINICS 455 SOUTH MAIN S ORANGE CA 92868

CLINICS CHOC UROLOGY CENTER

505 S MAIN ST ORANGE CA 92868

CLINIC THE ORGANIZATION USES THE FEDERAL POVERTY GUIDLINES (FPG) TO DETERMINE ELIGIBILITY FOR PROVIDING FREE AND DISCOUNTED CARE TO LOW INCOME INDIVIDUALS. IN DOING SO, THE ORGANIZATION FOLLOWS METHODOLOGIES RECOMMENDED BY THE AMERICAN HOSPITAL ASSOCIATION. THE ORGANIZATION'S COMMUNITY BENEFIT REPORT IS CONTAINED IN A REPORT PREPARED BY CHILDREN'S HOSPITAL OF ORANGE COUNTY (CHOC CHILDREN'S) AND CHOC CHILDREN'S AT MISSION HOSPITAL (CHOC MISSION)ANNUALLY AND IS FILED IN ACCORDANCE WITH CALIFORNIA SB697. THE ORGANIZATION USES THE COST-TO-CHARGE RATIO METHODOLOGY TO DETERMINE THE COST OF CHARITY CARE AND UNREIMBURSED COST OF CARE PROVIDED TO MEDI-CAL PATIENTS. COSTS ARE ACCOUNTED FOR USING AN INTERNAL DECISION SUPPORT SYSTEM. THE COST-TO-CHARGE RATIO FOLLOWS THE METHOD DEFINED BY THE MEDICARE COST REPORT AND IS UPDATED MONTHLY USING THE MOST RECENT ORGANIZATIONAL INFORMATION. PART III, LINE 1: THE ORGANIZATION REPORTS BAD DEBT EXPENSE AS AN OPERATING EXPENSE IN ACCORDANCE WITH US GAAP. HFMA STATEMENT NO. 15, WHICH REQUIRES BAD DEBT TO BE RECOGNIZED AS A REDUCTION FROM NET PATIENT REVENUE, HAS NOT YET BEEN ADOPTED AS AN ACCOUNTING STANDARD IN THE US. THE ORGANIZATION DID NOT INCLUDE SUBSIDIZED HEALTH SERVICES COSTS ATTRIBUTABLE TO A PHYSICIAN CLINIC IN THE TABLE IN PART I, LINE 7G. THE BAD DEBT EXPENSE INCLUDED IN FORM 990, PART IX, LINE 25 BUT SUBTRACTED FOR PURPOSES OF CALCULATING THE PERCENTAGE IN THIS COLUMN IS $13,351,022. THE ORGANIZATION CHARGES BAD DEBT FOR (A) THE WRITE-OFF OF PATIENT ACCOUNTS WHERE FAMILIES DID NOT COOPERATE WITH CHOC IN THE COMPLETION OF MEDI-CAL OR CHARITY CARE APPLICATIONS AND WHERE INSUFFICIENT INFORMATION COULD BE OBTAINED REGARDING THE FINANCIAL STATUS OF THE FAMILY, AND (B) A PROVISION FOR OUTSTANDING ACCOUNTS RECEIVABLE FROM SELF-PAY (INCLUDING PENDING MEDI-CAL AND PENDING CHARITY) ACCOUNTS. AS A CHILDREN'S HOSPITAL, CHOC IS IN THE UNUSUAL CIRCUMSTANCE OF TREATING PATIENTS WHERE A MAJORITY COULD QUALIFY FOR SOME TYPE OF GOVERNMENT ASSISTANCE OR CHARITY CARE. THE ORGANIZATION APPLIES ITS CHARITY CARE POLICY TO DETERMINE ELIGIBILITY BASED ON FAMILIES' SATISFYING THE APPLICATION REQUIREMENTS AND THE ORGANIZATION'S ELIGIBILITY CRITERIA. THE ORGANIZATION DOES, HOWEVER, HAVE FAMILIES WHO FAIL TO COMPLETE THE REQUIRED PAPERWORK DESPITE THE ORGANIZATION'S EFFORTS TO EDUCATE ALL FAMILIES OF THE CHARITY CARE OPTIONS. IN THESE CASES, AN ASSESSMENT OF CHARITY CARE ELIGIBILITY IS MADE BASED ON KNOWN INFORMATION. AUDITED FINANCIAL STATEMENT FOOTNOTE: PATIENT ACCOUNTS RECEIVABLE ARE RECORDED AT THE INVOICED AMOUNT NET OF ANY EXPECTED CONTRACTUAL ADJUSTMENTS AND DO NOT BEAR INTEREST. THE ALLOWANCE FOR DOUBTFUL ACCOUNTS IS CHOC'S BEST ESTIMATE OF THE AMOUNT OF PROBABLE CREDIT LOSSES IN CHOC'S EXISTING PATIENT ACCOUNTS RECEIVABLE. CHOC DETERMINES THE ALLOWANCE BASED ON HISTORICAL WRITE-OFF EXPERIENCE. CHOC REVIEWS ITS ALLOWANCE FOR DOUBTFUL ACCOUNTS ON A MONTHLY BASIS. PAST-DUE BALANCES OVER 90 DAYS AND OVER A SPECIFIED AMOUNT ARE REVIEWED INDIVIDUALLY FOR COLLECTABILITY. THERE ARE OTHER FACTORS THAT CAN IMPACT COLLECTIONS, SUCH AS CHANGES IN THE ECONOMY,WHICH IN TURN HAVE AN IMPACT ON UNEMPLOYMENT RATES AND THE NUMBER OF UNINSURED AND UNDERINSURED PATIENTS, THE INCREASE BURDEN OF CO-PAYMENTS TO BE MADE BY PATIENTS WITH INSURANCE AND BUSINESS PRACTICES RELATED TO COLLECTION EFFORTS. THESE FACTORS CONTINUOUSLY CHANGE AND CAN HAVE AN IMPACT ON COLLECTION TRENDS AND THE ESTIMATION PROCESS. ACCOUNT BALANCES ARE CHARGED OFF AGAINST THE ALLOWANCE AFTER ALL MEANS OF COLLECTION HAVE BEEN EXHAUSTED AND THE POTENTIAL FOR RECOVERY IS REMOTE, BUT IN NO CASES BEYOND ONE YEAR FROM DATE OF SERVICE. THE ALLOWABLE COST IS BASED ON A COST TO CHARGE RATIO OF 0.23987. SHORTFALLS ARE CONSIDERED A COMMUNITY BENEFIT BECAUSE THE DOLLAR VALUE OF BENEFITS PROVIDED BY LEGISLATIVE CATEGORY LINK TO THE DOLLARS IDENTIFIED BY COMMUNITY NEEDS. CHOC REPORTS UNPAID COSTS OF PUBLIC PROGRAMS AS GOVERNMENT PAYOR SHORTFALLS. THE PRINCIPAL MEASURE FOR MONITORING COMMUNITY BENEFIT SERVICES IS THE DOLLAR VALUE OF BENEFITS RETURNED TO THE COMMUNITY PER DOLLAR OF TAX EXEMPTION VALUE RECEIVED. THE HOSPITAL'S WRITTEN BAD-DEBT COLLECTION POLICY STATES THE FOLLOWING: 1. IF A PATIENT QUALIFIES FOR ASSISTANCE UNDER THE FINANCIAL ASSISTANCE PROGRAM AND IS MAKING EVERY EFFORT TO SETTLE AN OUTSTANDING BILL WITHIN A REASONABLE TIME PERIOD, CHOC OR ITS AGENT WILL NOT SEND, NOR INTIMATE THAT IT WILL SEND, THE UNPAID ACCOUNT TO AN OUTSIDE AGENCY IF DOING SO MAY NEGATIVELY IMPACT A PATIENT'S CREDIT. IF CHOC IS FORCED TO SEND THE ACCOUNT TO AN OUTSIDE COLLECTION AGENCY, THE AMOUNT REFERRED TO THE AGENCY WILL REFLECT THE REDUCED PAYMENT LEVEL FOR WHICH THE PATIENT WAS ELIGIBLE UNDER THE FINANCIAL ASSISTANCE PROGRAM. AT NO TIME WILL A PATIENT ACCOUNT BE REFERRED TO AN OUTSIDE COLLECTION AGENCY IF THE ACCOUNT IS LESS THAN 150 DAYS FROM ORIGINAL BILLING. 2. IN DEALING WITH IDENTIFIED UNINSURED PATIENTS AT OR BELOW 400% OF THE FEDERAL POVERTY LEVEL, CHOC WILL NOT USE WAGE GARNISHMENTS OR LIENS ON PATIENT'S OR PATIENT FAMILY'S PRIMARY RESIDENCE AS A MEANS OF COLLECTING UNPAID CHOC BILLS. THIS REQUIREMENT DOES NOT PRECLUDE CHOC FROM PURSUING REIMBURSEMENT FROM THIRD PARTY LIABILITY SETTLEMENTS. OTHER FACILITIES CONSIST OF 10 CLINICS. THE HOSPITAL PLAYS A LEADERSHIP ROLE IN THE ORANGE COUNTY HEALTH NEEDS ASSESSMENT (OCHNA). OCHNA IS A COMMUNITY-BASED, NOT-FOR-PROFIT PROJECT CREATED AND DESIGNED TO MEET THE REQUIREMENTS OF SB697 FOR ALL HEALTHCARE ASSOCIATION OF SOUTHERN CALIFORNIA (HASC) MEMBER HOSPITALS IN ORANGE COUNTY,TO PRODUCE A COMPREHENSIVE, COUNTYWIDE ANALYSIS OF HEALTH NEEDS AND SERVICES. THE OCHNA PROJECT IS A COLLABORATIVE EFFORT AND IS JOINTLY FUNDED BY THE COUNTY OF ORANGE HEALTHCARE AGENCY AND 27 FOR-PROFIT AND NOT-FOR-PROFIT HOSPITALS, AND OTHER ORGANIZATIONS AND PROVIDERS. ITS GOAL IS TO ACHIEVE MAXIMUM, VALID AND RELIABLE INFORMATION THAT COULD BE ANALYZED BY ZIP CODE, IN ORDER TO PROVIDE HOSPITALS WITH DATA SIGNIFICANT TO THEIR SERVICE AREAS. IN ADDITION, THIS PROCESS IS THE BASIS OF THE COUNTYWIDE REPORT THAT WAS MADE AVAILABLE TO THE LARGER COMMUNITY OF HEALTH AND HUMAN SERVICES PROVIDERS. OCHNA STARTED DATA COLLECTION FOR ITS HEALTH ASSESSMENT IN 1997. THE LATEST SURVEY RESULTS FOR ORANGE COUNTY WERE FOR 2007 AND PUBLISHED IN THE "HEALTH NEEDS ASSESSMENT 2008. OCHNA IS AN ONGOING PROCESS WITH PARTICIPATION AND SUPPORT FROM HEALTHCARE PROVIDERS AND GOVERNMENT AGENCIES. THE HOSPITAL'S EXECUTIVE MANAGEMENT UTILIZED THE OCHNA HEALTH NEEDS FINDINGS TO DEVELOP THE HOSPITALS' GOALS FOR MEETING THE NEEDS INDENTIFIED IN SIX BROAD AREAS: HEALTHCARE ACCESS - INCREASE ACCESS TO QUALITY PEDIATRIC HEALTHCARE RESOURCES AND INFORMATION TO FAMILIES, ESPECIALLY LOW-INCOME AND MEDICALLY UNDERSERVED, THROUGHOUT ORANGE COUNTY. BEHAVIORAL HEALTH ACCESS - ENHANCE THE COMMUNITY'S ACCESS TO BEHAVIORAL HEALTH INFORMATION AND SERVICES, TARGETING THE UNDERSERVED. DISEASE PREVENTION - INCREASE AWARENESS OF DISEASE PREVENTION AND PROMOTE EARLY INTERVENTION OF MAJOR DISEASES THAT AFFECT THE COMMUNITY. INFORMATION RESOURCE - PROVIDE THE COMMUNITY WITH RESOURCES FOR INFORMATION AND EDUCATION OF HEALTH RISK BEHAVIORS. INJURY PREVENTION - ACTIVELY CONTRIBUTE TO REDUCING THE NUMBER OF UNINTENTIONAL INJURIES TO YOUNG CHILDREN, ESPECIALLY TARGETING LOW-INCOME, DIVERSE AND MEDICALLY UNDERSERVED POPULATIONS. COMMUNITY ACTION - ACTIVELY RECRUITS, RECOGNIZE AND ADVOCATE FOR THE IMPORTANCE OF VOLUNTEER LEADERSHIP AND COMMUNITY ASSISTANCE IN PROVIDING CARE FOR CHILDREN. PATIENTS ARE INFORMED OF THEIR ELIGIBILITY FOR ASSISTANCE UNDER FEDERAL, STATE, OR LOCAL GOVERNMENT PROGRAMS AND UNDER THE HOSPITAL'S CHARITY CARE POLICY IN OUR FINANCIAL ASSISTANCE AND DISCOUNT PROGRAM POLICY. THIS INFORMATION, EITHER IN FULL OR IN SUMMARY, IS POSTED IN ALL OF THE HIGH TRAFFIC PATIENT AREAS: ADMITTING, EMERGENCY ROOM, CLINIC AND THE BUSINESS OFFICE. THE PATIENTS ARE ALSO INFORMED IF THERE IS A FINANCIAL NEED IDENTIFIED BY THE HOSPITAL FINANCIAL COUNSELORS WHEN SPEAKING TO THE FAMILIES ABOUT THEIR INSURANCE OR LACK OF INSURANCE. PATIENTS ARE PROVIDED A COPY OF THE HOSPITAL'S PATIENT FINANCIAL ASSISTANCE AND DISCOUNT PAYMENT PROGRAM POLICY. FAMILIES ARE ALSO NOTIFIED ON EVERY PATIENT STATEMENT THAT IF THERE IS A FINANCIAL NEED THEY SHOULD CALL THE DESIGNATED PHONE NUMBER FOR MORE INFORMATION AND ASSISTANCE. FINANCIAL ASSISTANCE COMMUNICATION: AS PART OF THE HOSPITALS' ONGOING PUBLIC AWARENESS CAMPAIGNS, THE MISSION STATEMENTS(INCLUDING THE FINANCIAL ASSISTANCE POLICY) ARE INCLUDED WHEREVER POSSIBLE ON PROGRAM BROCHURES, FACILITY BROCHURES, MEDICAL EDUCATION INFORMATION, COMMUNITY EDUCATION MATERIALS, CONFERENCE INVITATIONS AND ADMISSION MATERIALS. ADDITIONALLY, THE HOSPITALS' FINANCIAL ASSISTANCE POLICY IS EMPHASIZED IN PUBLIC RELATIONS AND MEDIA RELATIONS EFFORTS, FOUNDATION CAMPAIGNS, AND SELECTED MARKETING CAMPAIGNS. THE FINANCIAL ASSISTANCE POLICY IS ALSO INCLUDED AS PART OF THE ANNUAL COMMUNITY BENEFIT REPORT. The Hospital serves all of Orange County and a limited, although significant, number of patients from the western rim of Riverside County, the northern portion of San Diego County and southeast areas of Los Angeles County. The Primary Service Area is the central-northern portion of Orange County, and is the source of approximately 71% of its patients. Significant cities in this area are: Santa Ana, Anaheim, Fullerton, Orange, and Garden Grove. The Secondary Service Area includes all the other Orange County cities and unincorporated areas. Community Characteristics: population and socioeconomic data projections for 2010 are provided by Claritas, a third-party vendor that makes projections based on demographic analysis of Orange County, including the combined service areas of both hospitals CHOC and CHM. Total Population of the County was 3.10 million, according to 2010 estimates, making it the third largest county in California. The median age is 36.1, and children up to 17 years of age make up 25% of the total population. The largest race/ethnicity subgroup is White, at 45%. Latinos/Hispanics are 34% of the population. Asians/Pacific Islanders are 17% of the total, and the African American population represents approximately 2% of the total Orange County population. Socioeconomic Profile The U.S. Census American Community Survey for 2005-07 indicated that 12.0% (92,520) of children under the age of 18 in Orange County, 17.7% in California, and 18.0% in the U.S. were below the poverty level. This survey also indicated that 9.7% (288,346) of the Orange County population of all ages were living below the poverty level. The U.S. Bureau of the Census estimated that in 2009, the County's median household income was $70,751. There are 41 other hospitals serving the community: Anaheim General Hospital - Anaheim, California Anaheim General Hospital - Buena Park, California Anaheim Regional Medical Center - Anaheim, California Brea Community Hospital (closed) - Brea, California Chapman Medical Center - Orange, California Coastal Communities Hospital - Santa Ana, California College Hospital Costa Mesa - Costa Mesa, California Fountain Valley Regional Hospital and Medical Center - Fountain Valley, California Garden Grove Hospital and Medical Center - Garden Grove, California HealthBridge Children's Rehabilitation Hospital - Orange, California Hoag Memorial Hospital Presbyterian - Newport Beach, California Huntington Beach Hospital and Medical Center - Huntington Beach, California Irvine Regional Medical Center and Hospital - Irvine, California John Douglas French Center - Los Alamitos, California Kaiser Foundation Hospital - Anaheim, California Kindred Hospital - Brea - Brea, California Kindred Hospital - Santa Ana - Santa Ana, California Kindred Hospital - Westminster - Westminster, California La Palma Intercommunity Hospital - La Palma, California Los Alamitos Medical Center - Los Alamitos, California Martin Luther Hospital Medical Center - Anaheim, California Mission Hospital Regional Medical Center - Mission Viejo, California Orange County Community Hospital - Buena Park, California Orange Coast Memorial Medical Center - Fountain Valley, California Pacifica Hospital - Long Beach, California Placentia-Linda Community Hospital - Placentia, California Saddleback Memorial Medical Center - Laguna Hills, California San Clemente Hospital and Medical Center - San Clemente, California South Coast Medical Center - Laguna Beach, California Specialty Hospital of Sothern California - Santa Ana, California St. Joseph Hospital - Orange, California St. Jude Medical Center - Fullerton, California Santa Ana Hospital Medical Center - Santa Ana, California Tustin Hospital Medical Center - Tustin, California Tustin Rehabilitation Hospital - Tustin, California University of California, Irvine Medical Center - Orange, California Vencor Hospital - Westminster, California Vencor Hospital--Brea - Brea, California West Anaheim Medical Center - Anaheim, California Western Medical Center - Anaheim, California Western Medical Center - Santa Ana, California COMMUNITY SUPPORT IS DEFINED AS THOSE ACTIVITIES SUPPORTING COMMUNITY LEADERSHIP. THE ORGANIZATION HAS 91 DIFFERENT COMMUNITY BENEFIT PROGRAMS CATEGORIZED ACCORDING TO THE CALIFORNIA COMMUNITY BENEFITS LAW, SB697. WITHIN THESE CATEGORIES, THE CATEGORY WHICH MOST CLOSELY CORRELATES TO LINE 3, COMMUNITY SUPPORT, IS COMMUNITY LEADERSHIP. THE VALUE OF THESE COMMUNITY BENEFITS INCLUDES ONLY FREE, DISCOUNTED, SUBSIDIZED, OR NEGATIVE MARGIN SERVICES, AND THE UNPAID COST OF PUBLIC PROGRAMS. THESE COSTS ARE HOSPITAL COSTS ONLY, EXCLUDING FUNDS RECEIVED FROM ANY OTHER SOURCE. UNPAID COST OF PUBLIC PROGRAMS IS CALCULATED USING THE COST-TO-CHARGE RATIO FOR THE HOSPITAL. COSTS FOR ALL SERVICES, EXCEPT UNPAID COSTS, INCLUDE INDIRECT COSTS. EMPLOYEE BENEFITS ARE INCLUDED FOR PAID STAFF-HOUR COSTS. CHILDREN'S HEALTHCARE OF CALIFORNIA (CHC) IS THE NOT-FOR-PROFIT, TAX-EXEMPT PARENT CORPORATION OF CHILDREN'S HOSPITAL OF ORANGE COUNTY(CHOC CHILDREN'S) AND CHOC CHILDREN'S AT MISSION HOSPITAL (CHOC MISSION, OR CHM). THE HOSPITALS ARE THE PRINCIPAL TERTIARY AND QUATERNARY PEDIATRIC HOSPITALS SERVING ORANGE COUNTY AND ARE THE ONLY HOSPITALS EXCLUSIVELY SERVING INFANTS, CHILDREN AND ADOLESCENTS. THE ORGANIZATION IS COMPRISED OF TWO HOSPITALS; SEVERAL PRIMARY AND SPECIALTY CLINICS, PROGRAMS AND SERVICES; AND FOUR CENTERS OF EXCELLENCE, THE CHOC HEART, NEUROSCIENCE, ONCOLOGY AND ORTHOPAEDIC INSTITUTES. CHOC ALSO HAS A RESEARCH INSTITUTE PERFORMING BASIC SCIENCE AND CLINICAL RESEARCH. THROUGH ITS RESIDENCY PROGRAM, THE ORGANIZATION ALSO TRAINS TOMORROW'S PHYSICIANS. THE COMMUNITY BENEFIT PLAN FOR THE FISCAL YEAR ENDING JUNE 30, 2010, DESCRIBES THE BENEFIT PLANNING PROCESS, THE BENEFITS PROVIDED, AND THE ECONOMIC VALUE OF THE BENEFITS. COMMUNITY BENEFITS ARE FREE OR SUBSIDIZED PROGRAMS AND SERVICES PROVIDED TO MEET IDENTIFIED COMMUNITY NEEDS AND TO SERVE THE PUBLIC INTEREST. THE ORGANIZATION'S COMMUNITY BENEFIT PLAN IS AVAILABLE ONLINE AT: HTTP://WWW.CHOC.ORG/ABOUT/COMMUNITYBENEFITPLAN.PDF. THE MAJORITY OF THE ORGANIZATION'S GOVERNING BODY IS COMPOSED OF PERSONS WHO RESIDE IN THE ORGANIZATION'S PRIMARY SERVICE AREA WHO ARE NEITHER EMPLOYEES NOR CONTRACTORS OF THE ORGANIZATION, NOR FAMILY MEMBERS THEREOF. CLINICAL PRIVILEGES ARE GRANTED TO ALL QUALIFIED PHYSICIANS AS MEMBERS OF THE MEDICAL STAFF. MEDICAL STAFF MEMBERS PROVIDE PATIENT CARE AND HAVE ACCESS TO HOSPITAL RESOURCES (INCLUDING EQUIPMENT, FACILITIES AND PERSONNEL) WHICH ARE NECESSARY TO EFFECTIVELY EXERCISE THEIR PRIVILEGES. PHYSICIANS ARE QUALIFIED TO BE MEMBERS OF THE MEDIC AL STAFF IF THEY MEET THE FOLLOWING CRITERIA: ONLY PRACTICING PHYSICIANS, DENTISTS, PSYCHOLOGISTS OR PODIATRISTS SHALL BE DEEMED TO POSSESS BASIC QUALIFICATIONS FOR MEMBERSHIP ON THE MEDICAL STAFF, EXCEPT FOR THE HONORARY AND RETIRED STAFF CATEGORIES IN WHICH CASE THESE CRITERIA SHALL ONLY APPLY AS DEEMED INDIVIDUALLY APPLICABLE BY THE MEDICAL STAFF, AND WHO: (A) DOCUMENT THEIR (1) CURRENT LICENSURE, (2) ADEQUATE EXPERIENCE, EDUCATION, AND TRAINING, (3) CURRENT PROFESSIONAL COMPETENCE, (4) GOOD JUDGMENT, AND (5) CURRENT ADEQUATE PHYSICAL AND MENTAL HEALTH STATUS, SO AS TO DEMONSTRATE TO THE SATISFACTION OF THE MEDICAL STAFF THAT THEY ARE PROFESSIONALLY AND ETHICALLY COMPETENT AND THAT PATIENTS TREATED BY THEM CAN REASONABLY EXPECT TO RECEIVE QUALITY MEDICAL CARE. (B) ARE DETERMINED (1) TO ADHERE TO THE ETHICS OF THEIR RESPECTIVE PROFESSIONS, (2) TO BE ABLE TO WORK COOPERATIVELY WITH OTHERS SO AS NOT TO ADVERSELY AFFECT PATIENT CARE, (3) TO KEEP AS CONFIDENTIAL, AS REQUIRED BY LAW, ALL INFORMATION OR RECORDS RECEIVED IN THE PHYSICIAN-PATIENT RELATIONSHIP, AND (4) TO BE WILLING TO PARTICIPATE IN AND PROPERLY DISCHARGE THOSE RESPONSIBILITIES DETERMINED BY THE MEDICAL STAFF AND BE BOUND BY THE MEDICAL STAFF BYLAWS, RULES AND REGULATIONS, AND POLICIES. (C) WHO MAINTAIN IN FORCE PROFESSIONAL LIABILITY INSURANCE IN NOT LESS THAN THE MINIMUM AMOUNTS JOINTLY DETERMINED BY THE BOARD OF DIRECTORS AND THE MEDICAL EXECUTIVE COMMITTEE, BUT IN NO EVENT LESS THAN $1.0 MILLION PER INCIDENT AND $3.0 MILLION IN THE AGGREGATE IN A POLICY YEAR; PROVIDED, HOWEVER, THAT IN THE EVENT THAT (AND FOR SO LONG AS) SUCH INSURANCE IS NOT AVAILABLE ON COMMERCIALLY REASONABLE TERMS TO PHYSICIANS PRACTICING IN A PARTICULAR SPECIALTY OR SUB-SPECIALTY AREA OF MEDICAL PRACTICE, THE FOREGOING REQUIREMENTS MAY BE MODIFIED OR WAIVED WITH RESPECT TO ALL PHYSICIANS PRACTICING IN SUCH SPECIALTY OR SUB-SPECIALTY AREA, SUBJECT TO THE APPROVAL OF THE BOARD OF DIRECTORS UPON REQUEST OF THE MEDICAL EXECUTIVE COMMITTEE. ADMINISTRATIVE STAFF AND MEMBERS ON A LEAVE OF ABSENCE DO NOT NEED TO SHOW EVIDENCE OF INSURANCE. 4 (D) IF BOARD CERTIFICATION IS AVAILABLE IN THEIR RESPECTIVE SPECIALTIES, ARE BOARD CERTIFIED OR BOARD ADMISSIBLE, OR IN THE ALTERNATIVE, CAN DEMONSTRATE TO THE REASONABLE SATISFACTION OF THE MEDICAL EXECUTIVE COMMITTEE, A COMPARABLE LEVEL OF TRAINING, EXPERIENCE AND SKILL. LIMITED PRIVEDGES ARE PROVIDED TO PHYSICIANS LICENSED BY THE STATE OF CALIFORNIA WHO ARE ENROLLED IN AN ACCREDITED PEDIATRIC RESIDENCY TRAINING PROGRAM AND WHO ARE PROVIDING MEDICAL HEALTH-RELATED SERVICES TO PATIENTS INDEPENDENT OF THE HOSPITAL RESIDENCY PROGRAM. THE ORGANIZATION APPLIES ITS SURPLUS FUNDS TO IMPLEMENT IMPROVEMENTS IN PATIENT CARE, MEDICAL EDUCATION AND RESEARCH. THE ORGANIZATION IS CURRENTLY EMBARKING ON THE CONSTRUCTION OF A STATE-OF-THE-ART $552 MILLION HOSPITAL TOWER ON ITS MAIN CAMPUS IN THE CITY OF ORANGE. CONSTRUCTION OF THE 7 STORY BUILDING STARTED IN 2009 AND WILL OPEN ITS DOORS TO PATIENTS IN 2013. THE NEW TOWER SHALL INCLUDE INPATIENT AND OUTPATIENT CARE FOR CHILDREN, WITH EMERGENCY DEPARTMENT, OPERATING ROOMS, A MEDICAL LABORATORY, PATHOLOGY DEPARTMENT AND IMAGING AND RADIOLOGY SERVICES. THERE SHALL ALSO BE A LARGE CONFERENCE AREA TO ACCOMMODATE SOME OF THE ORGANIZATION'S TEACHING RESPONSIBILITIES. THE TOWER FLY-THROUGH IS AVAILABLE AT HTTP://WWW.CHOC.ORG/VIDEO/INDEX.CFM?ID=46 THE CHOC ENDOWMENT FUNDS ARE USED TO FUND MEDICAL RESEARCH, CLINICAL PROGRAMS AND SERVICES, AND TO RECRUIT AND RETAIN DOCTORS WHO ARE THE BEST IN THEIR FIELDS. PART VI LINE 7 - AFFILIATED HEALTH CARE SYSTEM: CHOC HAS EVOLVED FROM A COMMUNITY HOSPITAL TO A WORLD-CLASS, INTEGRATED PEDIATRIC HEALTH CARE SYSTEM AFFILIATED WITH THE UNIVERSITY OF CALIFORNIA, IRVINE (UC IRVINE). THE ORGANIZATION IS STEADFASTLY COMMITTED TO THE TENS OF THOUSANDS OF CHILDREN AND FAMILIES WHO DEPEND ON CHOC FOR CARE, AS WELL AS LEADING THE CHARGE IN ADVANCING PEDIATRIC MEDICINE ON A NATIONAL LEVEL. CHOC'S NEW BRAND IDENTITY - CHOC CHILDREN'S - ASSERTS THE INSTITUTION'S POSITION IN THE COMMUNITY AND NATIONALLY. CHOC'S LEGAL NAME (CHILDREN'S HOSPITAL OF ORANGE COUNTY) WILL REMAIN. THE ECONOMIC VALUE OF THE 91 BENEFIT SERVICES PROVIDED BY CHOC AND CHOC MISSION IN FISCAL YEAR 2010 IS $82 MILLION. OF THESE DOLLARS, 81.1% ($67 MILLION) SERVED THE ECONOMICALLY DISADVANTAGED. THE ECONOMIC VALUE OF SAVINGS FROM NOT-FOR-PROFIT STATUS IS $4.9 MILLION. THUS, THE HOSPITALS RETURN $16.95 IN COMMUNITY BENEFITS FOR EACH $1 SAVED FROM TAX-EXEMPT STATUS. IN ADDITION TO THE $82 MILLION IN BENEFITS PROVIDED FOR BY THE HOSPITALS REFERENCED ABOVE, BOARD MEMBERS, PHYSICIANS, EMPLOYEES AND VOLUNTEERS CONTRIBUTED 58,319 HOURS OF VOLUNTEER SERVICE TO THE COMMUNITY. X X X X true true false false false false false false false KIMBERLY C CRIPE 0 712995 0 207305 0 210703 0 14743 0 12347 0 1158093 0 0 KERRI RUPPERT SCHILLER 0 405686 0 101481 0 112333 0 7393 0 7210 0 634103 0 0 DEBRA MATHIAS 0 378088 0 98285 0 109959 0 1254 0 12347 0 599933 0 0 MARIA E MINON MD 411689 0 65155 0 116649 0 15953 0 8945 0 618391 0 0 0 MARGARET T CONK 248965 0 46253 0 66935 0 15633 0 917 0 378703 0 0 0 DANA N BLEDSOE 264088 0 45086 0 69527 0 6153 0 75 0 384929 0 0 0 MARK L HEADLAND 259556 0 52624 0 65877 0 9030 0 4491 0 391578 0 0 0 SHERREL J HOLLINGSWORTH 176022 0 6232 0 58061 0 3982 0 7733 0 252030 0 0 0 DAVID R SCHINDERLE 252012 0 8202 0 49315 0 4499 0 7225 0 321253 0 0 0 ELIZABETH ROWETT 190966 0 37330 0 56737 0 4224 0 8945 0 298202 0 0 0 JAMES P CAPPON MD 248930 0 17492 0 15279 0 1254 0 12347 0 295302 0 0 0 WALDO T ROMERO 249912 0 52604 0 69668 0 4423 0 11954 0 388561 0 0 0 MATTHEW E NIEDZWIECKI 214925 0 24200 0 59135 0 1149 0 11396 0 310805 0 0 0 JAY M GABRIEL 298990 0 58906 0 79889 0 1469 0 12309 0 451563 0 0 0 Severance Arrangements, Part I, Line 4A: Some of the organization's personnel listed on form 990 Part VII and Schedule J participate in a separation arrangement that provides for a portion of the employee's annual salary based on their position in the organization. For the senior executive level, the amount is based on years of service up to a maximum number of months. Unpaid severance under the separation agreements for current key employees were reported at their full value in a previous tax year. Two executives listed on Schedule J, Part II received severance payments in Fiscal Year 2010. The payments were received by David R. Schinderle ($50,549) and Margaret T. Conk ($78,350). Supplemental Nonqualified Retirement Plan Part I, Line 4B Children's Hospital of Orange County (CHOC) established a nonqualified deferred compensation plan in 2002 in which certain individuals listed on the Form 990, Part VII and Schedule J are participants. Under the plan, a grantor trust was established for which CHOC is the grantor. The principal of the trust and any earnings thereon are held separate and apart from other funds of CHOC and are to be used exclusively for the uses and purposes of plan participants and CHOC's general creditors. The company established a capital accumulation account on its books for each plan participant for each election of benefits accrued under the plan. The capital accumulation account is utilized solely as a device for the measurement and determination of the amounts to be paid to the participants under the plan. The participant is a general unsecured creditor of the company for the payment of capital accumulation account benefits. CHOC contributed to the trust such money or other assets in the amounts and at the times determined in its sole discretion. The participant is entitled to his/her capital accumulation account benefit under the earliest of (1) remaining employed by the company to the deferred vesting for the account; (2) disability; (3) 24 months following involuntary separation from service without reasonable cause; or (4) following a voluntary separation from service if certain non-compete stipulations are met. In December 2008, the CHOC compensation committee dissolved this plan and all assets were disbursed involuntarily to the participants. The following individuals received payments from the dissolution of this supplemental non-qualified retirement plan during calendar year 2009: Kimberly C. Cripe ($159,223), Kerri Ruppert Schiller ($79,208), Ms. Conk ($43,074), Ms. Bledsoe ($51,188), Mr. Headland ($47,512), Ms. Hollingsworth ($39,878), Mr. Schinderle ($33,147), Ms. Rowett ($35,388), Mr. Gabriel ($59,736), Dr. Minon ($91,430), Mr. Niedzwiecki ($43,283), Mr. Romero ($51,508). Compensation from an Affiliated Organization- Kimberly C. Cripe is compensated through Children's HealthCare of California (CHC); however, in addition to her responsibilities for CHC, she also serves as an officer of Children's Hospital of Orange County, CHOC Foundation, CHOCO Realty Corporation, CRC Real Estate Corporation and Children's Hospital at Mission (all 501(c)(3) affiliates). Ms. Cripe devotes approximately 75% of her time each week to Children's Hospital of Orange County responsibilities with the balance of her time being spent on the other related organizations' business affairs. Kerri Ruppert Schiller is compensated through Children's HealthCare of California (CHC); however, in addition to her responsibilities for CHC, she also serves as an officer of Children's Hospital of Orange County, CHOC Foundation, CHOCO Realty Corporation, CRC Real Estate Corporation and Children's Hospital at Mission (all 501(c)(3) affiliates). Ms. Schiller devotes approximately 50% of her time each week to Children's Hospital of Orange County responsibilities with the balance of her time being spent on the other related organizations' business affairs. Debra Mathias is compensated through Children's HealthCare of California (CHC); however, in addition to her responsibilities for CHC, she also serves as an officer of Children's Hospital of Orange County and Children's Hospital at Mission (both 501(c)(3) affiliates). Ms. Mathias devotes approximately 79% of her time each week to Children's Hospital of Orange County responsibilities with the balance of her time being spent on Children's Hospital at Mission's business affairs. Moran Rowen and Dorsey Inc Marshall Rowen M.D., BOD 260000 Medical Services false form 990, PART I, LINE 5 AND PART V, LINE 2 INFORMATION REGARDING CHOC AS THE COMMON PAYMASTER: Children's Hospital of Orange County is the common paymaster of the following: CHILDREN'S HEALTHCARE OF CALIFORNIA CHILDREN'S HOSPITAL AT MISSION CHOC FOUNDATION All wages and employee specific information, including volunteers, are retained with Children's Hospital of Orange County. FORM 990, PART III, LINE 4A Community Benefit Report Highlights: CHOC is dedicated to providing the highest quality tertiary, quaternary inpatient care as well as specialty and primary care to children in a family centered environment. Access to quality pediatric healthcare resources and information to families, including low-income and medically underserved, throughout Orange and contiguous counties, is accomplished by offering: (1) Pediatric Intensive Care Unit (PICU). The 30 bed PICU at CHOC is staffed by intensivists and clinician staff and is equipped with advanced computerized monitoring systems and offers care to critically ill or injured children with life-threatening disorders. (2) Oncology Unit staffed by specialists trained to treat the complex conditions that accompany pediatric cancers. This includes a 28-bed hematology/oncology unit and a 12-bed oncology intensive care unit (OICU). The unit offers the latest in medical and surgical oncology including chemotherapy, radiotherapy and blood and marrow transplantation. CHOC also opened a 22 chair outpatient infusion center in 2008. (3) CHOC's neonatal intensive care unit (NICU) takes care of infants who need critical care (most often premature babies suffering from respiratory and circulatory problems as well as congenital anomalies requiring surgery) that can be admitted to the NICU within minutes of birth. The 54-bed NICU at CHOC includes two eight-bed nurseries, two nine-bed nurseries, six isolation rooms, 12 beds that provide private rooming and a two-bed extracorporeal membrane oxygenation (ECMO) unit. CHOC's ECMO unit is the only one of its kind in Orange County and one of only 72 in the United States. CHOC also has Southern California's only ECMO transport unit. CHOC designated a small baby unit of 12 beds in March 2010. The unit cares for babies that weigh less than 1,000 grams at birth or 27 weeks or less gestation period. (4) CHOC's cardiovascular intensive care unit (CVICU) meets the growing need for specialized heart services in Orange County. This 12-bed unit was opened in October 2007. It includes two special procedure treatment rooms that enable physicians to perform surgery on children who otherwise could not be transported out of the unit. All of the CVICU rooms are outfitted with technology to monitor children after complex operations and surgical procedures. (5) The CHOC Cancer, Neuroscience, Heart and Orthopaedic Institutes offer innovative advanced models of care in the evaluation, management and treatment of the most complex pediatric and adolescent conditions. CHOC provides and enhances the community's access to behavioral health information and social and emotional services, targeting the underserved. CHOC offers outpatient specialty care in multiple specialties through clinics in Orange and Newport Beach. CHOC actively supports community action and leadership. CHOC actively recruits, recognizes and advocates for the importance of volunteer leadership and community assistance in providing care for children. CHOC provides community-wide education and health information access using programs including disease prevention education, information resources and injury prevention. In addition, CHOC offers services through its outreach clinics that serve surrounding communities to provide preventative and primary care in low-income, high risk areas where children have limited access to care. CHOC's outreach clinics include the CHOC Orange Community Clinic, Clinica Para Ninos in Santa Ana, the CHOC Clinic at Santa Ana Boys and Girls Club, CHOC Costa Mesa Clinic and CHOC Garden Grove Clinic. CHOC also provides care through mobile clinics, including Breathmobiles and Asthma care. See our Community Benefits Report on our website at www.choc.org FORM 990, PART VI, SECTION A LINE 4 - CHANGES TO ORGANIZATION'S DOCUMENTS: As of August 2009, the BY-Laws of Children's Hospital of Orange County (CHOC) were changed to add a Quality Committee composed of Directors, the Chief Medical Officer, Medical Staff Members, including the Medical director for Quality and Patient Safety and an officer of the Medical Staff, a quality expert from outside the healthcare industry, and CHOC management personnel, as determined and appointed by the Board or the Chair of the Board. The Committee shall assist the Board of Directors in consistently improving care, treatment, and services that address the needs of patients, families and the community. LINES 6 & 7A - ORGANIZATION MEMBER INFORMATION: THE SOLE MEMBER OF CHILDREN'S HOSPITAL OF ORANGE COUNTY (CHOC) IS CHILDREN'S HEALTHCARE OF CALIFORNIA (CHC). LINE 7B - ORGANIZATION MEMBER INFORMATION THE APPROVAL OF THE MEMBER SHALL BE REQUIRED WITH RESPECT TO ANY OF THE FOLLOWING ACTIONS: (1) CHANGING THE PURPOSES AND POWERS OF CHOC; (2) OBLIGATING CHOC TO UNDERTAKE ANY CAPITAL EXPENDITURE IN EXCESS OF $5,000,000; (3) ADOPTING CHOC'S ANNUAL OPERATING AND CAPITAL BUDGETS; (4) ADOPTING A LONG-TERM CAPITAL BUDGET; (5) BUYING, SELLING, LEASING, MORTGAGING, PLEDGING, OR OTHERWISE HYPOTHECATING ANY REAL PROPERTY; (6) INCURRING ANY INDEBTEDNESS IN EXCESS OF $5,000,000; (7) OBLIGATING CHOC TO ACT AS GUARANTOR WITH RESPECT TO ANY DEBT OF ANY PERSON OR OTHER ENTITY; (8) ACCEPTING ANY DONATION WHICH IS CONDITIONED UPON CHOC'S UNDERTAKING ANY UNBUDGETED CAPITAL EXPENDITURE IN EXCESS OF $2,000,000 OR ANY UNBUDGETED EXPENDITURE IN EXCESS OF $2,000,000; (9) ENTERING INTO ANY CONTRACT WHICH INVOLVES ANY OF THE FOLLOWING: (A) ANY FINANCIAL OBLIGATION ON THE PART OF CHOC IN AN AMOUNT IN EXCESS OF $5,000,000, (B) ANY PURPOSE OR ACTIVITY WHICH IS OUTSIDE THE SCOPE OF CHOC'S ORDINARY COURSE OF BUSINESS, OR (C) A TERM IN EXCESS OF FIVE YEARS (UNLESS THE CONTRACT IS TERMINABLE AT WILL); (10) INVOLVING CHOC IN ANY MERGER, ACQUISITION, CORPORATE RESTRUCTURING, OR FORMAL AFFILIATION; (11) INVOLVING CHOC AS A MEMBER, SHAREHOLDER, OR PARTNER IN ANY NEW CORPORATION, PARTNERSHIP, OR OTHER LEGAL ENTITY; (12) DISSOLVING CHOC; (13) ENTERING INTO ANY TRANSACTION INVOLVING THE SALE, LEASE, CONVEYANCE, EXCHANGE, TRANSFER OR OTHER DISPOSITION OF ALL OR SUBSTANTIALLY ALL OF CHOC'S ASSETS; (14) AMENDING CHOC'S ARTICLES OF INCORPORATION; (15) ADOPTING NEW BYLAWS OR AMENDING EXISTING BYLAWS, IN THE EVENT THAT SUCH ACTION WOULD AFFECT ANY OF THE MEMBER'S RIGHTS UNDER THE BYLAWS OR AS PROVIDED BY APPLICABLE LAW. FORM 990, PART VI, SECTION B LINE 11A - REVIEW OF FORM 990: Prior to filing, the tax return and related schedules are provided to the CHOC executive review committee, an empowered board committee delegated with this authority. The chief financial officer reviews the report with the committee prior to filing the final return. The final return is provided to the board of directors at its May meeting. LINE 12C - CONFLICT OF INTEREST COMPLIANCE: The Compliance Officer is charged with monitoring proposed or ongoing transactions for conflicts of interest and addressing any potential or actual conflicts. Pursuant to the conflict of interest policy, an annual conflict of interest questionnaire, aimed at determining any family and business relationships and transactions or other transactions that may pose a potential conflict, is distributed to all covered persons (i.e., board members, officers and executive leadership or key employees). Covered persons are required to disclose real or potential conflicts at the time when such conflicts arise. When an individual becomes a covered person and annually thereafter, each covered person is required to sign a statement affirming that he/she: (1) has received a copy of the Conflict of Interest Policy and understands said policy; (2) has read the policy and understands said policy; and (3) agrees to comply with all requirements of the policy, including completing the conflict of interest questionnaire. The completed questionnaires are reviewed by the Compliance Officer and any persons with actual or potential conflicts are informed via written communication. The procedures for addressing any conflict of interest includes but is not limited to the following: (1) the conflicting interest is fully disclosed to the Board of Directors; (2)the interested person responds to factual questions related to the substance of the transaction or arrangement being considered; (3) the person with the conflict of interest is excluded from any discussion or approval of such transaction; (4) alternatives to the proposed transaction are investigated, competitive bids or comparable valuations are obtained; (5) the transaction or action must be approved by a majority of disinterested persons. LINE 15 - COMPENSATION DETERMINATION: An independent Board Committee of the Organization charged with the duties of the compensation committee, whose members are disinterested and independent, is in place with a written compensation committee charter. This Committee annually retains an independent healthcare compensation firm to provide relevant comparability data and other compensation studies. The CEO, officers and executive management salaries and incentives, as well as overall compensation philosophy and policies, are discussed with the independent consultant representatives and the compensation committee members, in person, in executive sessions with no staff members present. All comparative salary data is well documented and there are minutes from these meetings that document the members present and voting, the comparative data used and the deliberations and decisions of the committee. The results and recommendations from the committee are shared in an executive session with the Board of Directors. FORM 990, PART VI, SECTION C LINE 19 - DISCLOSURE POLICY WHILE FEDERAL TAX LAWS DO NOT MANDATE THAT THE ORGANIZATION'S GOVERNING DOCUMENTS, CONFLICT OF INTEREST POLICY AND FINANCIAL STATEMENTS BE MADE AVAILABLE FOR PUBLIC INSPECTION, THE ORGANIZATION MAKES ITS FINANCIAL STATEMENTS AVAILABLE UPON REQUEST. Schedule R, Part V, Line 2, Column (c) OCMRRG provides medical professional liability and general liability coverage of up to $250,000 per claim on a claims-made basis to CHOC. CHILDREN'S HEALTHCARE OF CALIFORNIA 455 S MAIN STREET ORANGE CA 928683874 330265266 HEALTH CARE CA 501(C)(3) 3 NA Children's Hospital at Mission 455 S MAIN STREET ORANGE CA 928683874 330528802 HEALTH CARE CA 501(C)(3) 3 N/A CHOC FOUNDATION 455 S MAIN STREET ORANGE CA 928683874 956097416 Fund Raising CA 501(C)(3) 7 N/A CHOCO REALTY CORPORATION 455 S MAIN STREET ORANGE CA 928683874 330011853 REAL ESTATE CA 501(C)(3) 11 N/A CRC REAL ESTATE CORPORATION 455 S MAIN STREET ORANGE CA 928683874 330612565 REAL ESTATE CA 501(C)(3) 11 N/A CHOC Thrift Stores Inc 455 S MAIN STREET orange CA 928683874 330266422 Fund Raising CA 501(C)(3) 9 na ocmrrg 2999 North 4th Street Suite 250 phoenix AZ 85108 201620666 insurance AZ na c corp 60080 1896316 0.50000 false false true false true false false false false true false true false false false false false false OCMRRG l 1031271