| FORM 990, PART I, LINE 1 & FORM 990, PART III, LINE 1 |
THE CHILDRENS HOSPITAL OF PHILADELPHIA, THE OLDEST HOSPITAL IN THE UNITED STATES DEDICATED EXCLUSIVELY TO PEDIATRICS, STRIVES TO BE THE WORLD LEADER IN THE ADVANCEMENT OF HEALTH CARE FOR CHILDREN BY INTEGRATING EXCELLENT PATIENT CARE, INNOVATIVE RESEARCH AND QUALITY PROFESSIONAL EDUCATION INTO ALL OF ITS PROGRAMS. |
| FORM 990, PART IV, LINE 12 |
AN AUDIT IS PERFORMED ON AN OBLIGATED GROUP WHICH COMPRISES THE CHILDREN'S HOSPITAL OF PHILADELPHIA, THE CHILDREN'S HOSPITAL OF PHILADELPHIA FOUNDATION, THE CHILDREN'S HOSPITAL OF PHILADELPHIA PRACTICE ASSOCIATION, CHOP CLINICAL ASSOCIATES, INC., AND FIRST MEDICAL INSURANCE COMPANY. AN AUDIT IS ALSO PERFORMED ON A CONSOLIDATED BASIS WHICH INCLUDES THE OBLIGATED GROUP, PGH DEVELOPMENT CORPORATION, CHILDREN'S ANESTHESIOLOGY ASSOCIATES, LTD., CHILDREN'S ANESTHESIOLOGY ASSOCIATES OF NJ, INC., CHILDREN'S HEALTH CARE ASSOCIATES, INC., CHILDREN'S HEALTH CARE ASSOCIATES OF NJ, CHILDREN'S SURGICAL ASSOCIATES LTD., CHILDREN'S SURGICAL ASSOCIATES OF NJ, INC., SURGICAL RESEARCH AND EDUCATION FOUNDATION, RADIOLOGY ASSOCIATES OF CHILDREN'S HOSPITAL, INC., AND CHILDREN'S RADIOLOGY ASSOCIATES OF NJ, P.C. |
| FORM 990, PART VI, SECTION A, LINE 1A |
THE ORGANIZATION'S BYLAWS PROVIDE THAT THE EXECUTIVE COMMITTEE CONSISTS OF (A) THE CHAIRMAN OF THE BOARD, THE VICE CHAIRMAN OF THE BOARD, THE PRESIDENT, THE SECRETARY AND THE TREASURER AND (B) SUCH OTHER VOTING TRUSTEES ELECTED BY THE BOARD. ALL EXECUTIVE COMMITTEE MEMBERS ARE MEMBERS OF THE GOVERNING BODY. THE EXECUTIVE COMMITTEE MAY EXERCISE ALL OF THE POWERS AND AUTHORITIES OF THE BOARD UNLESS PROHIBITED BY LAW OR BY THE BOARD. THE EXECUTIVE COMMITTEE MAY CONSIDER MATTERS IN ADVANCE OF BOARD APPROVAL WHERE IT DEEMS APPROPRIATE, FOR REASONS THAT MAY INCLUDE OPTIMIZING USE OF BOARD TIME AND FACILITATING REVIEW OF SUCH MATTERS AND SUPPORTING MATERIALS. THE EXECUTIVE COMMITTEE MAY ALSO TRANSACT THE BUSINESS OF THE BOARD IN THE INTERIM BETWEEN MEETINGS OF THE FULL BOARD. |
| FORM 990, PART VI, SECTION A, LINE 2 |
THERE WAS A BUSINESS RELATIONSHIP BETWEEN KORNELIS SMIT, ASUKA NAKAHARA, AND MADELINE BELL AS MR. SMIT WAS AN EMPLOYEE AND MR. NAKAHARA AND MS. BELL WERE BOARD MEMBERS OF THE SAME BUSINESS ENTITY. THERE WAS A BUSINESS RELATIONSHIP BETWEEN THOMAS J TODOROW AND BRYAN WOLF AS BOTH MR. TODOROW AND MR. WOLF WERE BOARD MEMBERS OF THE SAME BUSINESS ENTITY. FORM 990, PART VI, SECTION A, LINE 4 SIGNIFICANT CHANGES TO ORGANIZATION'S GOVERNING DOCUMENTS DURING THE FISCAL YEAR ENDING JUNE 30, 2017, THE BYLAWS OF THE CHILDRENS HOSPITAL OF PHILADELPHIA, INC. WERE AMENDED TO DECREASE THE MAXIMUM NUMBER OF MEMBERS ON THE BOARD OF TRUSTEES, DECREASE TERM LIMITS AS WELL AS CHANGE THE COMPOSITION OF THE BOARD TO REMOVE THE CHIEF OPERATING OFFICER FROM THE BOARD OF TRUSTEES. |
| FORM 990, PART VI, SECTION B, LINE 11B |
A COPY OF THIS RETURN WAS REVIEWED BY THE BOARD AUDIT, COMPLIANCE AND RISK COMMITTEE BEFORE THE RETURN WAS FILED. BEFORE THE RETURN WAS FILED, THE FORM 990 WAS ALSO MADE AVAILABLE TO THE ENTIRE GOVERNING BODY OF THE ORGANIZATION THROUGH A SECURE WEBSITE MAINTAINED BY THE CHILDREN'S HOSPITAL OF PHILADELPHIA. |
| FORM 990, PART VI, SECTION B, LINE 12 |
THE CHILDREN'S HOSPITAL OF PHILADELPHIA MAINTAINS A WRITTEN CONFLICTS OF INTEREST POLICY THAT APPLIES TO, INTER ALIA, ALL OF ITS TRUSTEES, OFFICERS, EMPLOYEES, MEMBERS OF THE MEDICAL STAFF AND RESEARCHERS OF THE CHILDREN'S HOSPITAL OF PHILADELPHIA AND ITS AFFILIATES. THE POLICY REQUIRES ANNUAL CONFLICTS OF INTEREST STATEMENTS FROM: TRUSTEES AND OFFICERS OF THE HOSPITAL AND ITS AFFILIATES; THE PRESIDENT AND OTHERS IN SENIOR MANAGEMENT; ADMINISTRATIVE PERSONNEL SERVING AT THE LEVEL OF MANAGER AND ABOVE AND CERTAIN OTHER CATEGORIES OF EMPLOYEES DEFINED IN THE CONFLICTS OF INTEREST POLICY (SUCH AS PERSONS KNOWN TO PLACE ORDERS WITH VENDORS); DEPARTMENT CHAIRS, DIVISION CHIEFS AND OTHER MEMBERS OF THE MEDICAL STAFF; MEMBERS OF THE HOSPITAL RESEARCH STAFF; DESIGNATED EMPLOYEES OF PRACTICE PLANS AFFILIATED WITH THE HOSPITAL; AND OTHER PERSONS DESIGNATED BY MANAGEMENT. THE STATEMENT TRACKS THE CONFLICTS OF INTEREST POLICY, REQUIRING EACH PERSON TO DISCLOSE INFORMATION FOR THE REPORTING PERIOD REGARDING THE EXISTENCE AND NATURE OF GIFTS, OUTSIDE INTERESTS, OUTSIDE ACTIVITIES AND OTHER MATTERS CONSTITUTING A POTENTIAL, PERCEIVED OR ACTUAL CONFLICT OF INTEREST, AND TO CERTIFY THAT THEY HAVE READ THE POLICY AND ANSWERED FULLY, ACCURATELY AND TO THE BEST OF THEIR KNOWLEDGE. AFTER CONFIRMATION THAT ALL QUESTIONS HAVE BEEN ANSWERED, THE STATEMENTS ARE REVIEWED BY THE RELEVANT VICE PRESIDENT, DEPARTMENT CHAIR OR OTHER EXECUTIVE (OR THEIR DESIGNEE), TRACKED BY THE OFFICE OF COMPLIANCE AND PRIVACY (OC&P), AND ALL STATEMENTS DISCLOSING POTENTIAL, PERCEIVED OR ACTUAL CONFLICTS ARE REVIEWED INTERNALLY BY THE OC&P WITH FURTHER REVIEW AND FOLLOW-UP AS NEEDED CONDUCTED BY THE OFFICE OF GENERAL COUNSEL (OGC). THE CONFLICTS STATEMENTS SUBMITTED BY TRUSTEES OF THE HOSPITAL AND FOUNDATION, AND MEMBERS OF SENIOR MANAGEMENT, ARE REVIEWED BY THE OGC AND OC&P AND THE DISCLOSURES ARE SUMMARIZED IN MEMORANDA DISTRIBUTED TO AND REVIEWED BY THE MEMBERS OF THE AUDIT, COMPLIANCE AND RISK COMMITTEE OF THE HOSPITAL AND FOUNDATION BOARDS. THE REMAINING CONFLICTS STATEMENTS CONTAINING AFFIRMATIVE DISCLOSURES ARE REVIEWED BY STAFF IN THE OGC AND OC&P. IN REVIEWING ANNUAL STATEMENTS WHERE AN ACTUAL, PERCEIVED OR POTENTIAL CONFLICT IS DISCLOSED, WHERE PROBLEMS ARE IDENTIFIED THAT NEED TO BE ADDRESSED, THE GOAL IS TO ELIMINATE OR MANAGE THE CONFLICT GOING FORWARD AND ENSURE THAT, AS TO EMPLOYEES OR OTHERS ON THE MEDICAL OR RESEARCH STAFF, THE RELEVANT SUPERVISOR IS AWARE OF THE ISSUE. SUMMARY INFORMATION ABOUT COMPLIANCE WITH THE POLICY'S REQUIREMENT TO SUBMIT ANNUAL STATEMENTS AND DISCLOSURES CONTAINED THEREIN IS PROVIDED IN MEMORANDA TO THE AUDIT, COMPLIANCE AND RISK COMMITTEE OF THE BOARDS. IN ADDITION, IF ANY MATTER INVOLVING A POTENTIAL VIOLATION OF THE CONFLICT OF INTEREST POLICY IS BROUGHT TO THE ATTENTION OF MANAGEMENT DURING THE COURSE OF THE YEAR, A REVIEW IS CONDUCTED BY EITHER THE RELEVANT DEPARTMENT'S MANAGEMENT, OGC OR OC&P, AS APPROPRIATE. |
| FORM 990, PART VI, SECTION B, LINE 15 |
THE COMPENSATION OF EXECUTIVES AND PHYSICIANS/SCIENTISTS IS REVIEWED AND APPROVED BY A JOINT INDEPENDENT COMPENSATION COMMITTEE OF THE BOARD OF TRUSTEES OF THE CHILDREN'S HOSPITAL OF PHILADELPHIA AND THE CHILDREN'S HOSPITAL OF PHILADELPHIA FOUNDATION. THE COMMITTEE REVIEWS AND APPROVES IN ADVANCE THE COMPENSATION TO BE PROVIDED TO THE CEO, ALL VICE PRESIDENTS (INCLUDING EXECUTIVE AND SENIOR VP LEVELS), CLINICAL DEPARTMENT CHAIRS, AND ALL FACULTY PHYSICIANS AND SCIENTISTS. FOR EACH SUCH PERSON, THIS PROCESS WAS LAST PERFORMED IN 2016. IN MAKING ITS DETERMINATIONS, THE COMMITTEE CONSIDERS THE PERFORMANCE OF THE ORGANIZATION AND THAT OF THE COVERED INDIVIDUALS AS WELL AS RELATED BUSINESS JUDGMENT FACTORS. IT ALSO CONSIDERS MARKET COMPARISON REPORTS PREPARED BY AN EXTERNAL INDEPENDENT COMPENSATION CONSULTANT WITH SIGNIFICANT EXPERIENCE IN PERFORMING EXECUTIVE AND PHYSICIAN COMPENSATION ASSESSMENTS FOR NOT-FOR-PROFIT HEALTHCARE ORGANIZATIONS. THE COMMITTEE'S PROCESS IS DESIGNED TO QUALIFY FOR THE REBUTTABLE PRESUMPTION OF REASONABLENESS FOR THOSE INDIVIDUALS WHO ARE DISQUALIFIED PERSONS. THE PEER GROUP FOR EXECUTIVES GENERALLY INCLUDES LARGE AND COMPLEX ACADEMIC MEDICAL CENTERS AND HEALTH SYSTEMS. FOR PHYSICIANS AND SCIENTISTS, THE PEER GROUP GENERALLY INCLUDES ACADEMIC MEDICAL CENTERS. INFORMATION FROM OTHER ORGANIZATIONS MAY ALSO BE CONSIDERED WHERE APPROPRIATE FOR THE POSITION. |
| FORM 990, PART VI, SECTION B, LINE 19 |
FORM 990 AND FINANCIAL STATEMENTS ARE MADE AVAILABLE UPON REQUEST. THE CONFLICTS OF INTEREST POLICY IS AVAILABLE ON THE CHILDREN'S HOSPITAL OF PHILADELPHIA'S WEBSITE. |
| FORM 990, PART XI, LINE 9 |
OTHER CHANGES TO TEMP. RESTRICTED NET ASSETS 13,267,065 PENSION ADJUSTMENT 34,971,846 CHANGE IN FAIR VALUE OF DERIVATIVES 2,999,357 LOSS ON EXTINGUISHMENT OF DEBT (2,892,098) OTHER TRANSFERS (7,512,888) ============ TOTAL 40,833,282 |
Attach to Form 990 or 990-EZ.