Form 990 for tax year 2023

Revenue

Part VIII, the statement of revenue.

• 1d · Related organizations

  $52,894,145

• 1e · Government grants (contributions)

  $6,031,561

• 2a · Program service revenue: Patient Care & Program Services

  total $811,681,813 · related or exempt $811,681,813

• 2b · Program service revenue: Medicare/Medicaid

  total $435,090,452 · related or exempt $435,090,452

• 2c · Program service revenue: Grants-Fed/State/Agency/Subcontract/Private

  total $103,385,926 · related or exempt $103,385,926

• 2d · Program service revenue: Reference Lab Revenue

  total $521,857 · related or exempt $2,662 · unrelated business $519,195

• 2e · Program service revenue: Parking Garages

  total $3,415,301 · unrelated business $377,535 · excluded $3,037,766

• 2f · All other program service revenue

  total $5,990,533 · related or exempt $1,488,379 · unrelated business $0 · excluded $4,502,154

• 3 · Investment income

  total $38,842,833 · unrelated business -$1,940,562 · excluded $40,783,395

• 6a · Gross rents

  real property $3,095,638

• 6b · Less rental expenses

  real property $11,800

• 6c · Rental income or loss

  real property $3,083,838 · personal property $0

• 6d · Net rental income or loss

  total $3,083,838 · related or exempt $3,080,288 · unrelated business $3,550

• 7a · Gross sales of assets other than inventory

  securities $4,596,255,288 · other assets $29,648

• 7b · Less cost or other basis and sales expenses

  securities $4,530,857,148

• 7c · Gain or loss

  securities $65,398,140 · other assets $29,648

• 7d · Net gain or loss

  total $65,427,788 · excluded $65,427,788

• 11d · All other revenue

  total $0 · related or exempt $0 · unrelated business $0 · excluded $0

• 11e · Other revenue, total

  $0

Functional expenses

Part IX, the statement of functional expenses.

• 1 · Grants to domestic organizations and governments

  total $177,804,597 · program services $177,804,597

• 5 · Compensation of officers, directors and key employees

  total $5,043,018 · program services $893,508 · management and general $4,149,510

• 6 · Compensation of disqualified persons

  total $2,355,194 · program services $150,677 · management and general $2,204,517

• 7 · Other salaries and wages

  total $579,764,911 · program services $509,877,640 · management and general $69,887,271

• 8 · Pension plan contributions

  total $1,164,354 · management and general $1,164,354

• 9 · Other employee benefits

  total $45,464,659 · program services $36,118,547 · management and general $9,346,112

• 10 · Payroll taxes

  total $58,441,104 · program services $58,441,104

• 11b · Fees: legal

  total $4,166,106 · management and general $4,166,106

• 11c · Fees: accounting

  total $1,156,596 · management and general $1,156,596

• 11d · Fees: lobbying

  total $486,240 · program services $486,240

• 11f · Fees: investment management

  total $3,782,926 · management and general $3,782,926

• 11g · Fees: other

  total $45,109,734 · program services $26,604,299 · management and general $18,505,435 · fundraising $0

• 12 · Advertising and promotion

  total $2,141,913 · management and general $2,141,913

• 13 · Office expenses

  total $86,119,825 · program services $85,828,619 · management and general $291,206

• 14 · Information technology

  total $24,802,252 · program services $17,948,564 · management and general $6,853,688

• 16 · Occupancy

  total $35,170,053 · program services $3,551,524 · management and general $31,618,529

• 17 · Travel

  total $3,928,730 · program services $2,040,264 · management and general $1,888,466

• 19 · Conferences, conventions and meetings

  total $5,301,066 · program services $5,143,767 · management and general $157,299

• 20 · Interest

  total $13,436,371 · management and general $13,436,371

• 22 · Depreciation, depletion and amortization

  total $73,723,720 · program services $73,190,476 · management and general $533,244

• 23 · Insurance

  total $20,413,497 · program services $20,413,497

• 24a · Other expenses: Medical Supplies

  total $149,530,138 · program services $149,530,138

• 24b · Other expenses: Medicaid Provider Tax

  total $30,432,728 · program services $30,432,728

• 24c · Other expenses: Dues & Licenses

  total $25,857,256 · program services $14,285,414 · management and general $11,571,842

• 24d · Other expenses: Medical Admin & Teaching

  total $21,410,295 · program services $21,410,295

• 24e · All other expenses

  total $70,069,058 · program services $52,690,066 · management and general $17,378,992 · fundraising $0

Balance sheet

Part X, book values.

• 2 · Savings and temporary cash investments

  beginning of year $153,916,061 · end of year $70,562,405

• 3 · Pledges and grants receivable

  beginning of year $74,297,470 · end of year $60,361,745

• 4 · Accounts receivable

  beginning of year $283,663,501 · end of year $324,225,468

• 5 · Loans and receivables from officers and key people

  beginning of year $0 · end of year $0

• 6 · Loans and receivables from disqualified persons

  beginning of year $0 · end of year $0

• 8 · Inventories for sale or use

  beginning of year $17,072,040 · end of year $16,549,057

• 9 · Prepaid expenses and deferred charges

  beginning of year $24,475,973 · end of year $28,429,267

• 10a · Land, buildings and equipment: cost or other basis

  $1,901,775,830

• 10b · Land, buildings and equipment: accumulated depreciation

  $918,200,246

• 10c · Land, buildings and equipment, net

  beginning of year $847,995,447 · end of year $983,575,584

• 11 · Investments: publicly traded securities

  beginning of year $904,009,995 · end of year $1,036,861,362

• 12 · Investments: other securities

  beginning of year $814,512,564 · end of year $908,467,170

• 13 · Investments: program-related

  beginning of year $0

• 15 · Other assets

  beginning of year $99,010,234 · end of year $124,171,716

• 17 · Accounts payable and accrued expenses

  beginning of year $280,351,312 · end of year $459,340,964

• 20 · Tax-exempt bond liabilities

  beginning of year $335,372,254 · end of year $328,238,654

• 22 · Loans and payables to officers and key people

  beginning of year $0 · end of year $0

• 25 · Other liabilities

  beginning of year $314,120,862 · end of year $309,562,099

• 27 · Net assets without donor restrictions

  beginning of year $1,733,565,228 · end of year $1,869,243,860

• 28 · Net assets with donor restrictions

  beginning of year $555,543,629 · end of year $586,818,197

The filer's explanations (Part III)

Schedule J, Part I, Line 1a Health or social club dues or initiation fees

THOMAS P. SHANLEY BELONGS TO A SOCIAL CLUB FOR BUSINESS PURPOSES. THE CLUB IS USED TO ENTERTAIN DONORS AND PROVIDE SPACE FOR FUNDRAISING AND EMPLOYEE EVENTS. ANY PERSONAL USE IS REIMBURSED BY THE INDIVIDUAL.

Schedule J, Part I, Line 4a Severance or change-of-control payment

THE FOLLOWING INDIVIDUAL RECEIVED A PAYMENT DURING THE CALENDAR YEAR PURSUANT TO A CONFIDENTIAL AGREEMENT. THE PAYMENT IS INCLUDED IN PART VII, COLUMN D AND SCHEDULE J, PART II, COLUMN B(III). MICHELLE STEPHENSON

Schedule J, Part I, Line 4b Supplemental nonqualified retirement plan

ANN & ROBERT H. LURIE CHILDREN'S HOSPITAL OF CHICAGO ("LURIE CHILDREN'S") MAINTAINS A DEFINED BENEFIT SUPPLEMENTAL EXECUTIVE RETIREMENT PLAN ("DB SERP"), WHICH WAS EFFECTIVE ON JANUARY 1, 2001, AND IS CLOSED TO NEW PARTICIPANTS. THE DB SERP IS A DEFERRED COMPENSATION PLAN THAT ASSISTS IN PROVIDING COMPETITIVE TOTAL RETIREMENT BENEFITS TO A VERY LIMITED GROUP OF EXECUTIVE-LEVEL EMPLOYEES OF "LURIE CHILDREN'S" (INCLUDING ONE OR MORE PERSONS LISTED IN THIS FORM 990). THESE BENEFITS ARE PROVIDED IN EXCHANGE FOR ALL OF THE EMPLOYEE'S YEARS OF SERVICE TO THE ORGANIZATION, AND THE COST OF THE BENEFITS WILL VARY FROM YEAR TO YEAR BASED ON INTEREST RATES, AGE, AND OTHER FACTORS. THE AMOUNTS ARE AT RISK AND WILL NOT BE PAID UNLESS AND UNTIL THE EMPLOYEE HAS PROVIDED SUBSTANTIAL FUTURE SERVICES TO THE ORGANIZATION. BENEFITS UNDER THE DB SERP VEST AT AGE 62, AND ARE FORFEITED IF THE EMPLOYEE LEAVES THE ORGANIZATION VOLUNTARILY BEFORE AGE 62 (EXCEPT UNDER THE SOLE DISCRETION OF THE LURIE CHILDREN'S BOARD, AND ONLY IF THE PARTICIPANT HAS REACHED AT LEAST AGE 55 WITH AT LEAST 10 YEARS OF SERVICE). PARTICIPANTS WHO VOLUNTARILY LEAVE THE ORGANIZATION BEFORE AGE 55 FORFEIT THEIR ENTIRE DB SERP BENEFIT UPON TERMINATION. THE FOLLOWING INDIVIDUAL PARTICIPATED IN THE DB SERP AND RECEIVED A VESTED PAYMENT (EARNED OVER MANY YEARS OF EMPLOYMENT) DURING 2023 WHICH IS REPORTED IN COLUMN B (III): SUSAN H. GORDON $213,415 NOTE THE AMOUNT REPORTED IN COLUMN (F) FOR EACH SERP PAYMENT SHOWN ABOVE. THE COLUMN (F) AMOUNT SHOWS THE PORTION OF THE SERP PAYMENT THAT WAS ALREADY REPORTED ON PREVIOUS 990S WHEN FIRST EARNED. THE COLUMN (F) AMOUNT IS ALSO REFLECTED WITHIN THE TOTAL AMOUNT IN COLUMN (B)(III). LURIE CHILDREN'S ALSO MAINTAINS A DEFINED CONTRIBUTION SUPPLEMENTAL EXECUTIVE RETIREMENT PLAN ("DC SERP"), WHICH WAS ESTABLISHED ON JANUARY 1, 2017 AND IS A NONQUALIFIED DEFERRED COMPENSATION PLAN FOR CERTAIN EMPLOYEES IN EXECUTIVE POSITIONS, WHO ARE NOT PARTICIPANTS IN THE DB SERP. THE BENEFITS IN THE DC SERP ARE IN THE FORM OF A FIXED ANNUAL CONTRIBUTION RATE AND AN EARNINGS CREDIT. EACH YEAR'S CONTRIBUTION AND EARNINGS ARE AT RISK AND WILL BECOME FULLY VESTED AND TAXABLE ONLY AFTER FIVE YEARS OF FUTURE EMPLOYMENT SERVICE, OR UPON REACHING AGE 62 WITH AT LEAST THREE YEARS OF SERVICE. SEVERAL LISTED PERSONS IN THIS FORM 990 PARTICIPATE IN THE DC SERP, AND THE UNVESTED CONTRIBUTIONS MADE FOR THEM ARE INCLUDED IN SCHEDULE J, PART II, COLUMN (C). THE FOLLOWING INDIVIDUALS PARTICIPATED IN THE DC SERP AND RECEIVED A VESTED PAYMENT DURING 2023 WHICH IS REPORTED IN COLUMN B (III): DOUGLAS GRANT STIRLING, PHD $157,868 LISA M. DYKSTRA $102,278 SANTHANAM SURESH, MD $155,398 THOMAS P. SHANLEY, MD $162,149 CEO DEFERRED COMPENSATION LISTED INDIVIDUAL THOMAS SHANLEY MD IS THE SOLE PARTICIPANT IN AN ADDITIONAL SUPPLEMENTAL RETIREMENT BENEFIT ARRANGEMENT THAT BEGAN IN 2021. HE IS ELIGIBLE TO EARN A BENEFIT THAT WILL NOT BECOME VESTED FOR SEVERAL YEARS. A PRORATED PORTION OF THE BENEFIT (REPRESENTING THE PORTION EARNED IN 2023) IS REPORTED IN COLUMN (C) AS UNVESTED DEFERRED COMPENSATION, AND WILL BE REPORTED AGAIN AS COMPENSATION IF AND WHEN THE FULL BENEFIT BECOMES VESTED AND IS SUBJECT TO TAX. THE INDEPENDENT COMPENSATION COMMITTEE OF THE CHILDREN'S HOSPITAL OF CHICAGO MEDICAL CENTER BOARD OF DIRECTORS, WHOSE DILIGENT REVIEW AND APPROVAL PROCESS IS DESCRIBED ELSEWHERE IN THESE NARRATIVES, HAS REVIEWED AND APPROVED DR. SHANLEY'S TOTAL COMPENSATION IN A MANNER THAT QUALIFIES FOR THE REBUTTABLE PRESUMPTION OF REASONABLENESS UNDER THE FEDERAL TAX LAW INTERMEDIATE SANCTIONS RULES, AND AS PART OF THIS REVIEW PROCESS TOOK INTO ACCOUNT THE BENEFIT BEING EARNED UNDER THIS ADDITIONAL ARRANGEMENT.

Schedule J, Part I, Line 7 Non-fixed payments

THE ORGANIZATION PROVIDES ANNUAL INCENTIVE COMPENSATION TO SENIOR MANAGEMENT UNDER A SENIOR MANAGEMENT INCENTIVE COMPENSATION PLAN. THESE AMOUNTS ARE INCLUDED IN SCHEDULE J, PART II, COLUMN B (II). THE PLAN IS DESIGNED TO OFFER OPPORTUNITIES FOR ADDITIONAL COMPENSATION TIED TO PERFORMANCE AGAINST PRE-DETERMINED FINANCIAL, PATIENT SATISFACTION, PATIENT SAFETY AND INDIVIDUAL GOALS APPROVED IN ADVANCE BY THE COMPENSATION COMMITTEE OF CHILDREN'S HOSPITAL OF CHICAGO MEDICAL CENTER (MEDICAL CENTER) BOARD OF DIRECTORS, WHICH SERVES AS THE COMPENSATION COMMITTEE OF THE MEDICAL CENTER AND ITS CORPORATE AFFILIATES, INCLUDING LURIE CHILDREN'S.

Schedule J, Part II RELATED COMPENSATION

THE FOLLOWING INDIVIDUAL IS NOT COMPENSATED BY THE REPORTING ORGANIZATION FOR HIS OR HER SERVICE AS A DIRECTOR OR OFFICER. RATHER, THE COMPENSATION REPORTED ON FORM 990, PART VII AND ON SCHEDULE J, PART II REFLECTS COMPENSATION PAID BY LURIE CHILDREN'S SURGICAL FOUNDATION, INC. FOR THE INDIVIDUAL'S SUBSTANTIAL AND FULL-TIME SERVICES AS AN EMPLOYEE. FOR MORE DETAILS, PLEASE REFER TO THE 2023 FORM 990 OF LURIE CHILDREN'S SURGICAL FOUNDATION, INC., FEIN 83-1650513. EARL CHENG, MD

Related partnerships

Part III: related organizations taxable as a partnership, with the filer's share.

• LURIE CHILDRENS CIN LLC

  N/A · CONTRACTING SVCS · IL

  Directly controlled by NA

• LC-PM MSO LLC

  N/A · CONTRACTING SVCS · NY · 50% owned · share of income -$446,022 · share of assets $352,460

  Directly controlled by NA

Related corporations and trusts

Part IV: related organizations taxable as a corporation or trust.

• CMMC INSURANCE CO LTD

  C Corporation · SELF INSURANCE · CJ

  Directly controlled by NA