Form 990 for tax year 2023

Revenue

Part VIII, the statement of revenue.

• 1d · Related organizations

  $117,313,212

• 2a · Program service revenue: NET PATIENT FEES

  total $301,995,609 · related or exempt $301,995,609

• 2b · Program service revenue: CONTRACTED FEES

  total $6,834,993 · related or exempt $6,834,993

• 2c · Program service revenue: MANAGEMENT FEES

  total $89,002,824 · related or exempt $89,002,824

• 2d · Program service revenue: OTHER OPERATING INCOME

  total $6,457,899 · related or exempt $6,457,899

• 2f · All other program service revenue

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

• 6a · Gross rents

  real property $27,110

• 6b · Less rental expenses

  real property $0

• 6c · Rental income or loss

  real property $27,110 · personal property $0

• 6d · Net rental income or loss

  total $27,110 · excluded $27,110

• 7a · Gross sales of assets other than inventory

  other assets $0

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

  other assets $12,911

• 7c · Gain or loss

  securities $0 · other assets -$12,911

• 7d · Net gain or loss

  total -$12,911 · excluded -$12,911

• 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.

• 4 · Benefits paid to or for members

  total $0 · program services $0

• 5 · Compensation of officers, directors and key employees

  total $12,975,876 · program services $8,965,142 · management and general $4,010,734

• 7 · Other salaries and wages

  total $356,821,218 · program services $344,793,956 · management and general $12,027,262

• 8 · Pension plan contributions

  total $15,829,059 · program services $15,020,892 · management and general $808,167

• 9 · Other employee benefits

  total $35,088,651 · program services $32,056,938 · management and general $3,031,713

• 10 · Payroll taxes

  total $18,630,156 · program services $17,786,216 · management and general $843,940

• 11a · Fees: management

  total $23,790,045 · management and general $23,790,045

• 11g · Fees: other

  total $5,628,585 · program services $5,470,855 · management and general $157,730 · fundraising $0

• 12 · Advertising and promotion

  total $85,891 · program services $76,970 · management and general $8,921

• 13 · Office expenses

  total $1,339,443 · program services $1,227,810 · management and general $111,633

• 16 · Occupancy

  total $15,968,487 · program services $15,876,102 · management and general $92,385

• 17 · Travel

  total $703,629 · program services $588,896 · management and general $114,733

• 19 · Conferences, conventions and meetings

  total $365,313 · program services $50,781 · management and general $314,532

• 20 · Interest

  total $433,760 · program services $430,672 · management and general $3,088

• 22 · Depreciation, depletion and amortization

  total $3,625,203 · program services $3,623,903 · management and general $1,300

• 23 · Insurance

  total $4,073,815 · program services $525,058 · management and general $3,548,757

• 24a · Other expenses: MEDICAL SUPPLIES

  total $40,849,085 · program services $40,849,085

• 24b · Other expenses: COLLECTION EXPENSE

  total $1,214,888 · program services $1,214,888

• 24c · Other expenses: MINOR/COMPUTER EQUIPMENT

  total $653,985 · program services $630,683 · management and general $23,302

• 24d · Other expenses: REPAIRS & MAINTENANCE

  total $448,125 · program services $392,742 · management and general $55,383

• 24e · All other expenses

  total $531,245 · program services $365,277 · management and general $165,968 · fundraising $0

Balance sheet

Part X, book values.

• 1 · Cash, non-interest-bearing

  beginning of year $41,992 · end of year $52,921

• 4 · Accounts receivable

  beginning of year $18,958,915 · end of year $23,146,350

• 5 · Loans and receivables from officers and key people

  beginning of year $0 · end of year $0

• 6 · Loans and receivables from disqualified persons

  end of year $0

• 8 · Inventories for sale or use

  beginning of year $2,985,615 · end of year $5,713,423

• 9 · Prepaid expenses and deferred charges

  beginning of year $123,555 · end of year $0

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

  $47,158,211

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

  $25,684,238

• 10c · Land, buildings and equipment, net

  beginning of year $16,492,943 · end of year $21,473,973

• 12 · Investments: other securities

  beginning of year $0

• 13 · Investments: program-related

  beginning of year $0

• 14 · Intangible assets

  beginning of year $1,170,000 · end of year $936,000

• 15 · Other assets

  beginning of year $82,521,296 · end of year $88,040,303

• 17 · Accounts payable and accrued expenses

  beginning of year $31,061,903 · end of year $56,543,157

• 22 · Loans and payables to officers and key people

  end of year $0

• 25 · Other liabilities

  beginning of year $135,269,669 · end of year $144,294,792

• 27 · Net assets without donor restrictions

  beginning of year -$44,037,256 · end of year -$61,474,979

The filer's explanations (Part III)

Schedule J, Part I, Line 1a First-class or charter travel

AIR TRAVEL FOR M. SCOTT PERRY MD, KIRK PINTO, JEFF PUGACH, DEBORAH SCHUTTE AND ALMA TOLLEY WAS PROVIDED TO PROVIDE MEDICAL SERVICES IN THEIR CAPACITIES AS PHYSICIANS FOR COOK CHILDREN'S PHYSICIAN NETWORK. THIS IS NOT INCLUDED IN THEIR W-2 TAXABLE COMPENSATION AS IT IS 100% BUSINESS RELATED.

Schedule J, Part I, Line 1a Tax indemnification and gross-up payments

THE FOLLOWING INDIVIDUALS RECEIVED CME AND OTHER GROSS UP PAYMENTS IN THEIR W-2 AS TAXABLE WAGES: Eldad Erez, Vincent Tam, Kirk Pinto, Jonathan Kaye, Jeff Pugach, Deborah Schutte, Diane Arnaout, Anthony Anani, M. Scott Perry, Frank McGehee, Erik Templeton, Bianka Soria-Olmos, Kara Starnes, Christina Ateek, Jason Terk, Daphne Shaw, Julee Morrow, Randa Razzouk, Mary Kathleen Powderly, Heather Miller, Sheri Kantner

Schedule J, Part I, Line 1b Written policy regarding payment or reimbursement of expenses

THERE IS NO WRITTEN POLICY REGARDING PAYMENT OR REIMBURSEMENT OF TAX INDEMNIFICATION AND GROSS-UP PAYMENTS BECAUSE THE COMPANY DOES NOT GENERALLY ALLOW FOR GROSS-UP PAYMENTS EXCEPT IN SPECIFIC CIRCUMSTANCES AND THEN ONLY IF APPROVED BY SENIOR MANAGEMENT FOLLOWED BY REVIEW OF THE COMPANY'S COMPLIANCE AND LEGAL DEPARTMENTS. THESE TYPE OF REIMBURSEMENTS GENERALLY RELATE TO TAXES OWED BY INDIVIDUALS WHO RECEIVE NOMINAL INCENTIVE PAYMENTS FOR SERVICE AWARDS OR QUALITY IMPROVEMENT PROGRAMS, AND THE GROSS-UP PAYMENTS USUALLY ARE IMMATERIAL, $250 OR LESS. IN ADDITION TO THE GIFT CARD AND INCENTIVE BONUSES DESCRIBED ABOVE, THERE IS NO WRITTEN POLICY REGARDING PAYMENT OR REIMBURSEMENT OF TAX INDEMNIFICATION AND GROSS-UP PAYMENTS FOR CONTINUING MEDICAL EDUCATION ALLOWANCES PAID TO EMPLOYED PHYSICIANS OF COOK CHILDREN'S PHYSICIAN NETWORK. THESE TYPE OF EXPENSES ARE USUALLY HANDLED AS NON TAXABLE ACCOUNTABLE PLAN BUSINESS EXPENSES UNDER THE INTERNAL REVENUE CODE, BUT THE COMPANY HAS ELECTED TO TREAT THESE PAYMENTS AND THE GROSS-UP PAYMENTS AS TAXABLE INCOME TO THE AFFECTED INDIVIDUALS. THESE PAYMENTS ARE APPROVED IN ADVANCE BY SENIOR MANAGEMENT AND REVIEWED BY THE COMPANY'S COMPLIANCE AND LEGAL DEPARTMENTS. FURTHER, THESE EXPENSES ARE INCLUDED IN THE BENEFITS CALCULATION FOR SUCH PHYSICIANS WHICH ARE REVIEWED BY THE COMPANY'S COMPENSATION COMMITTEE TO VERIFY THAT SUCH PAYMENTS ARE PAID AT FAIR MARKET VALUE AND COMMERCIALLY REASONABLE.

Schedule J, Part I, Line 3 Arrangement used to establish the top management official's compensation

METHODS USED BY CCHCS TO ESTABLISH COMPENSATION OF THE COMPANY'S PRESIDENT: COMPENSATION COMMITTEE INDEPENDENT COMPENSATION CONSULTANT WRITTEN EMPLOYMENT CONTRACT COMPENSATION SURVEY OR STUDY APPROVAL BY THE BOARD OR COMPENSATION COMMITTEE

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

SEVERANCE IS A VOLUNTARY AGREEMENT THAT SET FORTH THE AGREED UPON SEPARATION DATE FOR EMPLOYMENT AND BENEFITS COVERAGE, THE AMOUNT OF PAYMENT, A CONFIDENTIALITY AGREEMENT CONCERNING COMPANY INFORMATION AND MATERIALS, RETURN OF COMPANY MATERIALS, AND COOPERATION CONCERNING BUSINESS MATTERS. THE FOLLOWING INDIVIDUAL RECEIVED A SEVERANCE PAYMENT IN THEIR 2023 TAXABLE COMPENSATION: Whitney Johannessen $ 88,840

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

Rick W Merrill - Paid by System - $366,672 Deferred, $0 W-2 Stephen W Kimmel - Paid by System - $133,956 Deferred, $106,987 W-2 Robert C Goodwill - Paid by CCPN - $70,810 Deferred, $59,097 W-2 Kevin Briscoe - Paid by CCPN - $37,140 Deferred, $0 W-2 Matthew Carroll - Paid by CCPN - $46,626 Deferred, $0 W-2 Matthew Dzurik - Paid by CCPN - $97,045 Deferred, $0 W-2 Alma Tolley - Paid by CCPN - $30,109 Deferred, $0 W-2 Corwin Warmink - Paid by CCPN - $55,947 Deferred, $0 W-2

Schedule J, Part II Allocation of CEO & CFO Salaries

SALARIES FOR THE CEO AND EVP, SYSTEM FINANCE ARE ALLOCATED PRO-RATA BASED ON THE AMOUNT OF TIME THEY SPEND WITH EACH OF THE FOLLOWING COMPANIES: COOK CHILDREN'S MEDICAL CENTER COOK CHILDREN'S HEALTH FOUNDATION COOK CHILDREN'S HOME HEALTH COOK CHILDREN'S HEALTH CARE SYSTEM COOK CHILDREN'S HEALTH PLAN COOK CHILDREN'S PHYSICIAN NETWORK COOK CHILDREN'S MEDICAL CENTER - PROSPER CHILD STUDY CENTER

Related partnerships

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

• CPS Pediatrics LLC

  N/A · ASC · TX

  Directly controlled by NA

• COOK CHILDREN'S SURGERY CENTER

  N/A · ASC · TX

  Directly controlled by NA

• CENTER FOR PEDIATRIC SURGERY

  N/A · ASC · TX

  Directly controlled by NA

• Sandia Crest LP

  N/A · Investments · MA

  Directly controlled by NA

• SCP OPPORTUNITY FUND

  N/A · Investments · SN

  Directly controlled by NA

• SAGAMORE HEALTHCARE I LP

  N/A · Investments · MD

  Directly controlled by NA

• Oberweis International Select Fund LLC

  N/A · Investments · IL

  Directly controlled by NA

• HT STORK LP

  N/A · Investments · NV

  Directly controlled by NA

• CC TRUEACCORD SPV II LLC

  N/A · Investments · CO

  Directly controlled by NA

• STEPSTONE VC HEALTHCARE I LP

  N/A · Investments · MD

  Directly controlled by NA

• GOFF FOCUSED ENERGY STRATEGIES LP

  N/A · INVESTMENTS · TX

  Directly controlled by NA

Related corporations and trusts

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

• Cook Children's Health Services

  C Corporation · Healthcare · TX · controlled entity

  Directly controlled by CCHCS

• Cook Children's Indemnity Company

  C Corporation · Self Insurance · CJ · controlled entity

  Directly controlled by CCHCS

• CHARITABLE REMAINDER TRUSTS (2)

  Trust · SPLIT INT TRUST · TX · controlled entity

  Directly controlled by NA