Form 990 for tax year 2022

Revenue

Part VIII, the statement of revenue.

• 1c · Fundraising events

  $650,361

• 1d · Related organizations

  $3,089,761

• 1e · Government grants (contributions)

  $102,455

• 1f · All other contributions, gifts and grants

  $360,314

• 2a · Program service revenue: PATIENT CARE & PROGRAM SERVICES REVENUE

  total $6,706,227 · related or exempt $6,706,227

• 2f · All other program service revenue

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

• 6c · Rental income or loss

  real property $0 · personal property $0

• 7c · Gain or loss

  securities $0 · other assets $0

• 8a · Fundraising events: gross income

  $71,758

• 8a · Fundraising events: contributions included on line 1c

  $650,361

• 8b · Fundraising events: direct expenses

  $165,707

• 8c · Net income from fundraising events

  total -$93,949 · excluded -$93,949

• 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.

• 7 · Other salaries and wages

  total $7,708,742 · program services $6,313,484 · management and general $987,863 · fundraising $407,395

• 9 · Other employee benefits

  total $1,658,417 · program services $1,410,344 · management and general $142,102 · fundraising $105,971

• 11g · Fees: other

  total $41,677 · program services $21,754 · management and general $19,923 · fundraising $0

• 12 · Advertising and promotion

  total $30,840 · fundraising $30,840

• 13 · Office expenses

  total $99,971 · program services $98,203 · management and general $884 · fundraising $884

• 14 · Information technology

  total $10,551 · program services $9,855 · management and general $348 · fundraising $348

• 16 · Occupancy

  total $427,517 · program services $427,517

• 17 · Travel

  total $7,161 · program services $3,357 · management and general $1,990 · fundraising $1,814

• 19 · Conferences, conventions and meetings

  total $937 · program services $533 · management and general $202 · fundraising $202

• 22 · Depreciation, depletion and amortization

  total $107,923 · program services $107,923

• 24a · Other expenses: MEDICAL ADMIN & TEACHING

  total $184,969 · program services $184,969

• 24b · Other expenses: MEDICAL SUPPLIES

  total $101,728 · program services $101,728

• 24c · Other expenses: FUNDRAISING EXPENSES

  total $32,498 · fundraising $32,498

• 24d · Other expenses: BAD DEBT PROVISION

• 24e · All other expenses

  total $69,710 · program services $47,262 · management and general $15,378 · fundraising $7,070

Balance sheet

Part X, book values.

• 4 · Accounts receivable

  beginning of year $575,904 · end of year $1,033,925

• 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

• 9 · Prepaid expenses and deferred charges

  beginning of year $57,559 · end of year $55,939

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

  $2,927,222

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

  $1,050,611

• 10c · Land, buildings and equipment, net

  beginning of year $1,622,337 · end of year $1,876,611

• 12 · Investments: other securities

  beginning of year $0

• 13 · Investments: program-related

  beginning of year $0

• 15 · Other assets

  beginning of year $1,655,903 · end of year $1,415,060

• 17 · Accounts payable and accrued expenses

  beginning of year $622,902 · end of year $849,095

• 22 · Loans and payables to officers and key people

  beginning of year $0 · end of year $0

• 23 · Secured mortgages and notes payable

  beginning of year $392,283 · end of year $531,173

• 25 · Other liabilities

  beginning of year $1,493,002 · end of year $1,265,223

• 27 · Net assets without donor restrictions

  beginning of year $1,403,516 · end of year $1,736,044

The filer's explanations (Part III)

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

PURSUANT TO THE BYLAWS OF CHILDREN'S HOSPITAL OF CHICAGO MEDICAL CENTER ("MEDICAL CENTER"), THE COMPENSATION COMMITTEE OF THE BOARD OF DIRECTORS OF THE MEDICAL CENTER IS CHARGED WITH REVIEWING AND APPROVING SENIOR EXECUTIVE COMPENSATION FOR THE MEDICAL CENTER AND ITS AFFILIATES AND THE COMPENSATION FOR ANY PHYSICIAN WHO MEETS THE CRITERIA FOR REVIEW AND APPROVAL BY THE COMMITTEE. THE COMPENSATION COMMITTEE HAS ADOPTED A WRITTEN EXECUTIVE COMPENSATION PHILOSOPHY WHICH IT FOLLOWS WHEN IT REVIEWS AND APPROVES THE COMPENSATION AND BENEFITS OF THE ORGANIZATION'S SENIOR MANAGEMENT. THE COMPENSATION PHILOSOPHY IS SUBJECT TO PERIODIC REVIEW BY THE COMPENSATION COMMITTEE FOR CONTINUED APPROPRIATENESS IN THE CURRENT MARKET. WITH THE ASSISTANCE OF INDEPENDENT COMPENSATION CONSULTANTS AND INFORMATION FROM A VARIETY OF SOURCES (SPECIFIED ON SCHEDULE J), THE COMPENSATION COMMITTEE CONFIRMED THE TOTAL AMOUNTS TO BE PAID TO IDENTIFIED EXECUTIVES AND PHYSICIANS WERE REASONABLE AND COMPARABLE TO AMOUNTS PAID BY SIMILARLY SITUATED ORGANIZATIONS TO INDIVIDUALS IN FUNCTIONALLY SIMILAR POSITIONS. LEGAL COUNSEL PERIODICALLY ADVISES THE COMPENSATION COMMITTEE WITH RESPECT TO FEDERAL TAX REQUIREMENTS IN SETTING COMPENSATION AND THE ESTABLISHMENT OF THE "REBUTTABLE PRESUMPTION OF REASONABLENESS" UNDER THE FEDERAL TAX LAW INTERMEDIATE SANCTIONS RULES. THE PROCESS FOLLOWED BY THE COMPENSATION COMMITTEE, INCLUDING A DESCRIPTION OF THE DATA RELIED UPON AND THE COMPENSATION COMMITTEE'S DECISIONS, WAS THOROUGHLY AND CONTEMPORANEOUSLY DOCUMENTED. THE COMPENSATION COMMITTEE HAS EXPRESSLY REVIEWED THE REASONABLENESS OF COMPENSATION PAID TO IDENTIFIED EXECUTIVES AND PHYSICIANS, AND HAS CONCLUDED, AS THE RESULT OF A PROCESS THAT IS DESIGNED TO QUALIFY FOR THE REBUTTABLE PRESUMPTION OF REASONABLENESS, THAT ALL SUCH AMOUNTS ARE REASONABLE AND DO NOT EXCEED FAIR MARKET VALUE FOR THE SERVICES PROVIDED. THE COMPENSATION COMMITTEE IS COMPRISED OF MEMBERS OF THE MEDICAL CENTER BOARD OF DIRECTORS WHO HAVE BEEN DETERMINED TO BE DISINTERESTED (WHICH MEANS NO COMMITTEE MEMBER HAS A CONFLICT OF INTEREST) FOR THESE PURPOSES. THE COMPENSATION COMMITTEE CONDUCTS AN ONGOING, REGULAR REVIEW OF THE DISINTERESTED STATUS OF ITS MEMBERS, AND WILL TAKE APPROPRIATE ACTION WITH RESPECT TO ANYONE HAVING AN INTEREST WITH RESPECT TO ONE OR MORE EXECUTIVES SO AS TO PRESERVE THE DISINTERESTED STATUS OF THE COMMITTEE AND, AS A RESULT, THE APPLICATION OF THE REBUTTABLE PRESUMPTION OF REASONABLENESS.

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

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

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 2022 WHICH IS REPORTED IN COLUMN B (III): MICHELLE M. STEPHENSON $219,556 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. 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 2022 WHICH IS REPORTED IN COLUMN B (III): RON BLAUSTEIN $81,970 THOMAS P. SHANLEY, MD $107,853 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 2022) 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, 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 II RELATED COMPENSATION

THE FOLLOWING INDIVIDUALS ARE 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 ANN & ROBERT H. LURIE CHILDREN'S HOSPITAL OF CHICAGO ("LURIE CHILDREN'S") FOR THE INDIVIDUAL'S SUBSTANTIAL AND FULL-TIME SERVICES AS AN EMPLOYEE. FOR MORE DETAILS, PLEASE REFER TO THE 2022 FORM 990 OF LURIE CHILDREN'S, FEIN 36-2170833. BRENDA DAVIS DEBORAH A. GRISKO, RN FATEMA ZANZI MICHELLE M. STEPHENSON RON BLAUSTEIN THOMAS P. SHANLEY, MD

Related partnerships

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

• LURIE CHILDRENS CIN LLC

  CONTRACTING SVCS · IL

  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 MEDICAL CTR