TY 2010 Form 990

(A) Name and Title	(B) Average hours per week (describe hours for related organizations in Schedule O)	(C) Position (check all that apply)	(E) Reportable compensation from related organizations (W- 2/1099-MISC)
(1) DAVID CAVAZOS CHAIRMAN	1.0	X	X	0	0
(2) MARK BONSALL VICE CHAIRMAN	1.0	X	X	0	0
(3) RONALD C BROWN IMMEDIATE PAST CHAIRMAN	1.0	X		0	0
(4) RONALD MATRICARIA TREASURER	1.0	X	X	0	0
(5) EDWIN E VAN BRUNT SECRETARY	1.0	X	X	0	0
(6) RHET L ANDREWS DIRECTOR	1.0	X		0	0
(7) DINO R CAMUNEZ DIRECTOR	1.0	X		0	0
(8) KATHLEEN GOEPPINGER PHD DIRECTOR	1.0	X		0	0
(9) JON HULBURD DIRECTOR	1.0	X		0	0
(10) RICHARD KUHLE DIRECTOR	1.0	X		0	0
(11) ORME LEWIS JR DIRECTOR	1.0	X		0	0
(12) JACQUE J SOKOLOV MD DIRECTOR	1.0	X		0	0
(13) PATRICIA G STARK DIRECTOR	1.0	X		0	0
(14) ELIZABETH ZORN MD PRESIDENT, MEDICAL STAFF	1.0	X		367,145	27,249
(15) ROBERT L MEYER PRESIDENT & CEO	40.0	X	X	1,130,978	200,468
(16) CRAIG MCKNIGHT SVP & CFO (AS OF 3/2010)	40.0		X	339,917	28,058
(17) SHANE BROPHY FORMER INTERIM CFO -UNTIL 3/10	40.0		X	295,836	21,392

(A) Name and Title	(B) Average hours per week (describe hours for related organizations in Schedule O)	(F) Estimated amount of other compensation from the organization and related organizations
(18) MURRAY M POLLACK MD CHIEF MEDICAL OFFICER	40.0	X			719,773	21,606
(19) ROBERT SARNECKI CHIEF INFORMATION OFFICER	40.0	X			343,358	48,499
(20) DERRICK E PARKER SVP, PRACTICE OPERATIONS	40.0	X			360,705	57,334
(21) BETSY G KUZAS VP, CONSTRUCTION & SUPPORT SER	40.0	X			417,237	46,774
(22) THOMAS J DIEDERICH VP, HUMAN RESOURCES	40.0	X			386,033	68,325
(23) CARMEN L NEUBERGER VP, GENERAL COUNSEL	40.0	X			372,643	43,087
(24) PHILIP ADELSON MD DIVISION CHIEF	40.0		X		1,047,207	32,826
(25) JEFFREY M PEARL MD STAFF PHYSICIAN	40.0		X		834,799	30,388
(26) LEE S SEGAL MD DIVISION CHIEF	40.0		X		671,991	32,259
(27) DAVID SHAFRON MD STAFF PHYSICIAN	40.0		X		650,164	26,808
(28) RICHARD B TOWBIN MD DIVISION CHIEF	40.0		X		708,488	27,348
(29) DANIEL T CLOUD MD FORMER CHIEF EXECUTIVE OFFICER	0.0			X	68,509	0
(30) BRUCE MORGENSTERN MD FORMER IP PRESIDENT, MED STAFF	0.0			X	241,523	28,190
(31) DEBRA K PENDERGAST FORMER VP, NURSING	0.0			X	277,712	15,456
(32) EDWARD C TROELL JR FORMER VP, PROFESSIONAL SVCS	0.0			X	336,781	18,012
(33) DEBORAH E WESLEY FORMER SVP, CHIEF OPS OFFICER	0.0			X	291,457	13,839

(A) Name and business address	(B) Description of services	(C) Compensation
KITCHELL 1707 E HIGHLAND STE 200 PHOENIX,AZ85016	CONSTRUCTION	115,355,068
SODEXO INC AFFILIATES 9801 WASHINGTON BLVD GAITHERSBURG,MD20878	OUTSOURCING	8,922,343
JOHNSON CONTROLS INC 111 CABIN GATE PEACHTREE,GA30269	CONTR. & OUTSOURCING	3,676,583
HKS INC 1919 MCKINNEY AVE DALLAS,TX75201	ARCHITECT	3,444,459
PEDIATRIC SURGEONS OF PHOENIX 1920 E CAMBRIDGE AVE 201 PHOENIX,AZ85006	MEDICAL SERVICES	2,675,867
2 Total number of independent contractors (including but not limited to those listed above) who received more than $100,000 in compensation from the organization 127

Do not include amounts reported on lines 6b, 7b, 8b, 9b, and 10b of Part VIII.	(A) Total expenses	(B) Program service expenses	(C) Management and general expenses	(D) Fundraising expenses
1	Grants and other assistance to governments and organizations in the U.S. See Part IV, line 21	411,701	411,701
2	Grants and other assistance to individuals in the U.S. See Part IV, line 22	0
3	Grants and other assistance to governments, organizations, and individuals outside the U.S. See Part IV, lines 15 and 16	0
4	Benefits paid to or for members	0
5	Compensation of current officers, directors, trustees, and key employees ....	6,349,596		6,349,596
6	Compensation not included above, to disqualified persons (as defined under section 4958(f)(1)) and persons described in section 4958(c)(3)(B) ....	0
7	Other salaries and wages	175,726,065	156,500,560	19,225,505
8	Pension plan contributions (include section 401(k) and section 403(b) employer contributions) ....	4,959,952	4,263,257	696,695
9	Other employee benefits .......	24,618,397	21,490,135	3,128,262
10	Payroll taxes ...........	11,351,566	10,132,375	1,219,191
11	Fees for services (non-employees):
a	Management ......	0
b	Legal .........	1,129,702	45,557	1,084,145
c	Accounting ...........	387,026		387,026
d	Lobbying ...........	187,769	187,769
e	Professional fundraising. See Part IV, line 17..	0
f	Investment management fees ......	0
g	Other ..........	42,925,972	31,141,850	11,784,122
12	Advertising and promotion ....	3,298,304	239,649	3,058,655
13	Office expenses .......	62,703,659	60,786,555	1,917,104
14	Information technology ......	4,832,300	528,670	4,303,630
15	Royalties ..	0
16	Occupancy ...........	11,663,725	8,005,408	3,658,317
17	Travel ............	70,714	63,402	7,312
18	Payments of travel or entertainment expenses for any federal, state, or local public officials ......	0
19	Conferences, conventions, and meetings ....	2,568,552	1,618,314	950,238
20	Interest ...........	6,587,952		6,587,952
21	Payments to affiliates .......	0
22	Depreciation, depletion, and amortization .....	23,483,231	18,076,183	5,407,048
23	Insurance ..............	5,977,729	5,597,743	379,986
24	Other expenses. Itemize expenses not covered above. (Expenses grouped together and labeled miscellaneous may not exceed 5% of total expenses shown on line 25 below.)
a	EQUIPMENT COSTS	7,756,647	6,234,923	1,521,724
b	BAD DEBT	10,297,126	10,297,126
c	ALL OTHER EXPENSES	6,364,654	5,942,189	422,465
d
e
f	All other expenses
25	Total functional expenses. Add lines 1 through 24f	413,652,340	341,563,366	72,088,974	0
26	Joint costs. Check here if following SOP 98-2 (ASC 958-720). Complete this line only if the organization reported in column (B) joint costs from a combined educational campaign and fundraising solicitation

Part X Balance Sheet
	1	Cashnon-interest-bearing ..........	85,559,618	1	90,351,774
2	Savings and temporary cash investments .......	9,843,866	2	1,002,128
3	Pledges and grants receivable, net .........		3
4	Accounts receivable, net .........	54,700,366	4	48,812,684
5	Receivables from current and former officers, directors, trustees, key employees, and highest compensated employees. Complete Part II of
	Schedule L ..........		5
6	Receivables from other disqualified persons (as defined under section 4958(f)(1)) and persons described in section 4958(c)(3)(B). Complete Part II of
	Schedule L ..........		6
7	Notes and loans receivable, net .............		7
8	Inventories for sale or use ..............	5,251,266	8	5,385,165
9	Prepaid expenses and deferred charges ............	7,030,389	9	6,599,547
10a	Land, buildings, and equipment: cost or other basis. Complete Part VI of Schedule D	10a	690,379,351
b	Less: accumulated depreciation. .....	10b	112,495,545	448,266,531	10c	577,883,806
11	Investments—publicly traded securities ..........	177,488,708	11	42,323,127
12	Investments—other securities. See Part IV, line 11 ......	14,856,478	12	0
13	Investments—program-related. See Part IV, line 11 ..		13
14	Intangible assets .........	0	14	0
15	Other assets. See Part IV, line 11 ...........	22,958,559	15	78,148,594
16	Total assets. Add lines 1 through 15 (must equal line 34)...	825,955,781	16	850,506,825
	17	Accounts payable and accrued expenses .	71,406,824	17	68,088,724
18	Grants payable ..........		18
19	Deferred revenue ..........	1,070,753	19	1,093,039
20	Tax-exempt bond liabilities ..........	450,000,000	20	450,000,000
21	Escrow or custodial account liability. Complete Part IV of Schedule D..		21
22	Payables to current and former officers, directors, trustees, key employees, highest compensated employees, and disqualified
	persons. Complete Part II of Schedule L..........		22
23	Secured mortgages and notes payable to unrelated third parties ..	1,447,381	23	595,456
24	Unsecured notes and loans payable to unrelated third parties ....	5,000,000	24	0
25	Other liabilities. Complete Part X of Schedule D.....	59,252,064	25	89,589,742
26	Total liabilities. Add lines 17 through 25.....	588,177,022	26	609,366,961
		Organizations that follow SFAS 117, check here and complete lines 27 through 29, and lines 33 and 34.
27	Unrestricted net assets .....	234,211,935	27	237,232,943
28	Temporarily restricted net assets .....	3,566,824	28	3,906,921
29	Permanently restricted net assets .....		29
	Organizations that do not follow SFAS 117, check here and complete lines 30 through 34.
30	Capital stock or trust principal, or current funds .....		30
31	Paid-in or capital surplus, or land, building or equipment fund .....		31
32	Retained earnings, endowment, accumulated income, or other funds		32
33	Total net assets or fund balances .....	237,778,759	33	241,139,864
34	Total liabilities and net assets/fund balances .....	825,955,781	34	850,506,825

- TIN:

SCHEDULE A
(Form 990 or 990EZ)

Department of the Treasury
Internal Revenue Service

Public Charity Status and Public Support

Complete if the organization is a section 501(c)(3) organization or a section
4947(a)(1) nonexempt charitable trust.

Attach to Form 990 or Form 990-EZ. right arrow

See separate instructions.

OMB No. 1545-0047

2010

Open to Public
Inspection

Name of the organization

Phoenix Children's Hospital

Employer identification number

86-0422559

Part I

Reason for Public Charity Status (All organizations must complete this part.) See instructions

The organization is not a private foundation because it is: (For lines 1 through 11, check only one box.)

A church, convention of churches, or association of churches. section 170(b)(1)(A)(i).

A school described in section 170(b)(1)(A)(ii). (Attach Schedule E.)

A hospital or a cooperative hospital service organization described in section 170(b)(1)(A)(iii).

A medical research organization operated in conjunction with a hospital described in section 170(b)(1)(A)(iii). Enter the hospital's name, city, and state:

An organization operated for the benefit of a college or university owned or operated by a governmental unit described in

section 170(b)(1)(A)(iv). (Complete Part II.)

A federal, state, or local government or governmental unit described in section 170(b)(1)(A)(v).

An organization that normally receives a substantial part of its support from a governmental unit or from the general public described in

section 170(b)(1)(A)(vi). (Complete Part II.)

A community trust described in section 170(b)(1)(A)(vi). (Complete Part II.)

An organization that normally receives: (1) more than 331/3% of its support from contributions, membership fees, and gross

receipts from activities related to its exempt functions—subject to certain exceptions, and (2) no more than 331/3% of

its support from gross investment income and unrelated business taxable income (less section 511 tax) from businesses

acquired by the organization after June 30, 1975. See section 509(a)(2). (Complete Part III.)

An organization organized and operated exclusively to test for public safety. Seesection 509(a)(4).

An organization organized and operated exclusively for the benefit of, to perform the functions of, or to carry out the purposes of one or more publicly supported organizations described in section 509(a)(1) or section 509(a)(2). See section 509(a)(3). Check the box that describes the type of supporting organization and complete lines 11e through 11h.

Type I

Type II

Type III - Functionally integrated

Type III - Other

By checking this box, I certify that the organization is not controlled directly or indirectly by one or more disqualified persons other than foundation managers and other than one or more publicly supported organizations described in section 509(a)(1) or section 509(a)(2).

If the organization received a written determination from the IRS that it is a Type I, Type II or Type III supporting organization, check this box ..................................................

Since August 17, 2006, has the organization accepted any gift or contribution from any of the
following persons?

(i) a person who directly or indirectly controls, either alone or together with persons described in (ii)

Yes

and (iii) below, the governing body of the the supported organization? ................

11g(i)

(ii) a family member of a person described in (i) above? ......................

11g(ii)

(iii) a 35% controlled entity of a person described in (i) or (ii) above? ................

11g(iii)

Provide the following information about the supported organization(s).

(i) Name of supported organization	(ii) EIN	(iv) Is the organization in col. (i) listed in your governing document?		(v) Did you notify the organization in col. (i) of your support?		(vi) Is the organization in col. (i) organized in the U.S.?		(vii) Amount of support?
(i) Name of supported organization	(ii) EIN	Yes	No	Yes	No	Yes	No	(vii) Amount of support?


Total

For Paperwork Reduction Act Notice, see the Instructions for Form 990.

Cat. No. 11285F

Schedule A (Form 990 or 990-EZ) 2010

Page 2

Part II

Support Schedule for Organizations Described in IRC 170(b)(1)(A)(iv) and 170(b)(1)(A)(vi)
(Complete only if you checked the box on line 5, 7, or 8 of Part I or if the organization failed to qualify under Part III. If the organization fails to qualify under the tests listed below, please complete Part III.)

Section A. Public Support

Calendar year(or fiscal year beginning in)		(a) 2006	(b) 2007	(c) 2008	(d) 2009	(e) 2010	(f) Total
1	Gifts, grants, contributions, and membership fees received. (Do not include any "unusual grants.") ....
2	Tax revenues levied for the organization's benefit and either paid to or expended on its behalf.......
3	The value of services or facilities furnished by a governmental unit to the organization without charge..
4	Total. Add lines 1 through 3..
5	The portion of total contributions by each person (other than a governmental unit or publicly supported organization) included on line 1 that exceeds 2% of the amount shown on line 11, column (f)..
6	Public Support. Subtract line 5 from line 4.

Section B. Total Support

Calendar year(or fiscal year beginning in)		(a) 2006	(b) 2007	(c) 2008	(d) 2009	(e) 2010	(f) Total
7	Amounts from line 4..
8	Gross income from interest, dividends, payments received on securities loans, rents, royalties and income from similar sources..
9	Net income from unrelated business activities, whether or not the business is regularly carried on..
10	Other income. (Explain in Part IV.) Do not include gain or loss from the sale of capital assets..
11	Total support (Add lines 7 through 10).

Gross receipts from related activities, etc. (See instructions.) ..................

First Five Years If the Form 990 is for the organization's first, second, third, fourth, or fifth tax year as a 501(c)(3) organization,
check this box and stop here.......................................... right arrow

Section C. Computation of Public Support Percentage

Public Support Percentage for 2010 (line 6 column (f) divided by line 11 column (f)) .........

Public Support Percentage for 2009 Schedule A, Part II, line 14 ...............

16a

33 1/3% support test—2010. If the organization did not check the box on line 13, and line 14 is 33 1/3% or more, check this box
and stop here. The organization qualifies as a publicly supported organization ...................... right arrow

33 1/3% support test—2009. If the organization did not check the box on line 13 or 16a, and line 15 is 33 1/3% or more, check this
box and stop here. The organization qualifies as a publicly supported organization ..................... right arrow

17a

10%-facts-and-circumstances test—2010. If the organization did not check a box on line 13, 16a, or 16b and line 14
is 10% or more, and if the organization meets the "facts and circumstances" test, check this box and stop here. Explain
in Part IV how the organization meets the "facts and circumstances" test. The organization qualifies as a publicly supported
organization .................................................. right arrow

10%-facts-and-circumstances test—2009. If the organization did not check a box on line 13, 16a, 16b, or 17a and line
15 is 10% or more, and if the organization meets the "facts and circumstances" test, check this box and stop here.
Explain in Part IV how the organization meets the "facts and circumstances" test. The organization qualifies as a publicly
supported organization .............................................. right arrow

Private Foundation If the organization did not check a box on line 13, 16a, 16b, 17a or 17b, check this box and see
instructions ................................................... right arrow

Schedule A (Form 990 or 990-EZ) 2010

Page 3

Part III

Support Schedule for Organizations Described in IRC 509(a)(2)
(Complete only if you checked the box on line 9 of Part I or if the organization failed to qualify under Part II. If the organization fails to qualify under the tests listed below, please complete Part II.)

Section A. Public Support

Calendar year(or fiscal year beginning in)		(a) 2006	(b) 2007	(c) 2008	(d) 2009	(e) 2010	(f) Total
1	Gifts, grants, contributions, and membership fees received. (Do not include any "unusual grants.") .
2	Gross receipts from admissions, merchandise sold or services performed, or facilities furnished in any activity that is related to the organization's tax-exempt purpose......
3	Gross receipts from activities that are not an unrelated trade or business under section 513..
4	Tax revenues levied for the organization's benefit and either paid to or expended on its behalf...
5	The value of services or facilities furnished by a governmental unit to the organization without charge..
6	Total. Add lines 1 through 5.
7a	Amounts included on lines 1, 2, and 3 received from disqualified persons...
b	Amounts included on lines 2 and 3 received from other than disqualified persons that exceed the greater of $5,000 or 1% of the amount on line 13 for the year.
c	Add lines 7a and 7b..
8	Public Support (Subtract line 7c from line 6.)

Section B. Total Support

Calendar year (or fiscal year beginning in)		(a) 2006	(b) 2007	(c) 2008	(d) 2009	(e) 2010	(f) Total
9	Amounts from line 6...
10a	Gross income from interest, dividends, payments received on securities loans, rents, royalties and income from similar sources..
b	Unrelated business taxable income (less section 511 taxes) from businesses acquired after June 30, 1975.
c	Add lines 10a and 10b.
11	Net income from unrelated business activities not included in line 10b, whether or not the business is regularly carried on.
12	Other income. Do not include gain or loss from the sale of capital assets (Explain in Part IV.)
13	Total support (Add lines 9, 10c, 11 and 12.).

Section C. Computation of Public Support Percentage

Public Support Percentage for 2010 (line 8 column (f) divided by line 13 column (f)) .........

Public support percentage from 2009 Schedule A, Part III, line 15 ...............

Section D. Computation of Investment Income Percentage

Investment income percentage for 2010 (line 10c column (f) divided by line 13 column (f)) ......

Investment income percentage from 2009 Schedule A, Part III, line 17 .............

19a

33 1/3% support tests—2010. If the organization did not check the box on line 14, and line 15 is more than 33 1/3% and line 17 is not more than 33 1/3%, check this box and stop here. The organization qualifies as a publicly supported organization .......... right arrow

33 1/3% support tests—2009. If the organization did not check a box on line 14 or line 19a, and line 16 is more than 33 1/3% and line 18 is not more than 33 1/3%, check this box and stop here. The organization qualifies as a publicly supported organization .... right arrow

Private Foundation If the organization did not check a box on line 14, 19a or 19b, check this box and see instructions ..... right arrow

Schedule A (Form 990 or 990-EZ) 2010

Page 4

Part IV

Supplemental Information. Supplemental Information. Complete this part to provide the explanation required by Part II, line 10; Part II, line 17a or 17b; or Part III, line 12. Also complete this part for any additional information. (See instructions).

Facts And Circumstances Test

Explanation

Schedule A (Form 990 or 990-EZ) 2010

Additional Data

Software ID:
Software Version:

- TIN:

Schedule B
(Form 990, 990-EZ,
or 990-PF)

Department of the Treasury
Internal Revenue Service

Schedule of Contributors

Attach to Form 990, 990-EZ, or 990-PF.

OMB No. 1545-0047

2010

Name of organization

Phoenix Children's Hospital

Employer identification number

86-0422559

Organization type (check one):

Filers of:

Section:

Form 990 or 990-EZ

501(c)( ) (enter number) organization

4947(a)(1) nonexempt charitable trust not treated as a private foundation

527 political organization

Form 990-PF

501(c)(3) exempt private foundation

4947(a)(1) nonexempt charitable trust treated as a private foundation

501(c)(3) taxable private foundation

Check if your organization is covered by the General Rule or a Special Rule.
Note. Only a section 501(c)(7), (8), or (10) organization can check boxes for both the General Rule and a Special Rule. See instructions.

General Rule

For an organization filing Form 990, 990-EZ, or 990-PF that received, during the year, $5,000 or more (in money or
property) from any one contributor. Complete Parts I and II.

Special Rules

For a section 501(c)(3) organization filing Form 990 or 990-EZ, that met the 33¹/3% support test of the regulations
under sections 509(a)(1) and 170(b)(1)(A)(vi), and received from any one contributor, during the year, a contribution of the
greater of (1) $5,000 or (2) 2% of the amount on (i) Form 990, Part VIII, line 1h, or (ii) Form 990-EZ, line 1. Complete Parts I and II.

For a section 501(c)(7), (8), or (10) organization filing Form 990, or 990-EZ, that received from any one contributor,
during the year, aggregate contributions of more than $1,000 for use exclusively for religious, charitable,
scientific, literary, or educational purposes, or the prevention of cruelty to children or animals. Complete Parts I, II, and
III.

For a section 501(c)(7), (8), or (10) organization filing Form 990, or 990-EZ, that received from any one contributor,
during the year, contributions for use exclusively for religious, charitable, etc., purposes, but these contributions did
not aggregate to more than $1,000. If this box is checked, enter here the total contributions that were received during
the year for an exclusively religious, charitable, etc., purpose. Do not complete any of the parts unless the General Rule
applies to this organization because it received nonexclusively religious, charitable, etc., contributions of $5,000 or more
during the year. ......................... Arrow Bullet

Caution. An Organization that is not covered by the General Rule and/or the Special Rules does not file Schedule B (Form 990,
990-EZ, or 990-PF), but it must answer “No” on Part IV, line 2 of its Form 990, or check the box in the heading of its
Form 990-EZ, or on line 2 of its Form 990-PF, to certify that it does not meet the filing requirements of Schedule B (Form 990,
990-EZ, or 990-PF).

For Paperwork Reduction Act Notice, see the Instructions
for Form 990, 990-EZ, or 990-PF.

Cat. No. 30613XSchedule B (Form 990, 990-EZ, or 990-PF) (2010)

Name of organization Phoenix Children's Hospital
Schedule B (Form 990, 990-EZ, or 990-PF) (2010) Page 1 of 1 of Part I
Part I	Contributors (see Instructions)
(a) No.	(b) Name, address, and ZIP + 4	(c) Aggregate contributions	(d) Type of contribution
RESTRICTED	RESTRICTED RESTRICTED RESTRICTED RESTRICTED, RESTRICTED RESTRICTED	$RESTRICTED	Person Payroll Noncash (Complete Part II if there is a noncash contribution.)
(a) No.	(b) Name, address, and ZIP + 4	(c) Aggregate contributions	(d) Type of contribution
		$	Person Payroll Noncash (Complete Part II if there is a noncash contribution.)
(a) No.	(b) Name, address, and ZIP + 4	(c) Aggregate contributions	(d) Type of contribution
		$	Person Payroll Noncash (Complete Part II if there is a noncash contribution.)
(a) No.	(b) Name, address, and ZIP + 4	(c) Aggregate contributions	(d) Type of contribution
		$	Person Payroll Noncash (Complete Part II if there is a noncash contribution.)
(a) No.	(b) Name, address, and ZIP + 4	(c) Aggregate contributions	(d) Type of contribution
		$	Person Payroll Noncash (Complete Part II if there is a noncash contribution.)
(a) No.	(b) Name, address, and ZIP + 4	(c) Aggregate contributions	(d) Type of contribution
		$	Person Payroll Noncash (Complete Part II if there is a noncash contribution.)
Schedule B (Form 990, 990-EZ, or 990-PF) (2010)

Name of organization Phoenix Children's Hospital
Schedule B (Form 990, 990-EZ, or 990-PF) (2010) Page 1 of 1 of Part II
Part II	Noncash Property (see Instructions)
(a) No. from Part I	(b) Description of noncash property given	(c) FMV (or estimate) (see instructions)	(d) Date received
		$
(a) No. from Part I	(b) Description of noncash property given	(c) FMV (or estimate) (see instructions)	(d) Date received
		$
(a) No. from Part I	(b) Description of noncash property given	(c) FMV (or estimate) (see instructions)	(d) Date received
		$
(a) No. from Part I	(b) Description of noncash property given	(c) FMV (or estimate) (see instructions)	(d) Date received
		$
(a) No. from Part I	(b) Description of noncash property given	(c) FMV (or estimate) (see instructions)	(d) Date received
		$
(a) No. from Part I	(b) Description of noncash property given	(c) FMV (or estimate) (see instructions)	(d) Date received
		$
Schedule B (Form 990, 990-EZ, or 990-PF) (2010)

Schedule B (Form 990, 990-EZ, or 990-PF) (2010)

Page 1 of 1 of Part III

Name of organization
Phoenix Children's Hospital

Employer identification number

86-0422559

Part III

Exclusively religious, charitable, etc., individual contributions to section 501(c)(7), (8), or (10) organizations
aggregating more than $1,000 for the year. (Complete columns (a) through (e) and the following line entry.)
For organizations completing Part III, enter the total of exclusively religious, charitable, etc.,
contributions of $1,000 or less for the year. (Enter this information once. See instructions.) Arrow Bullet

(a) No.
from
Part I

(b)
Purpose of gift

(d)
Description of how gift is held

(e) Transfer of gift
Transferee's name, address, and ZIP 4	Relationship of transferor to transferee

(a) No.
from
Part I

(b)
Purpose of gift

(d)
Description of how gift is held

(e) Transfer of gift
Transferee's name, address, and ZIP 4	Relationship of transferor to transferee

(a) No.
from
Part I

(b)
Purpose of gift

(d)
Description of how gift is held

(e) Transfer of gift
Transferee's name, address, and ZIP 4	Relationship of transferor to transferee

(a) No.
from
Part I

(b)
Purpose of gift

(d)
Description of how gift is held

(e) Transfer of gift
Transferee's name, address, and ZIP 4	Relationship of transferor to transferee

Schedule B (Form 990, 990-EZ, or 990-PF) (2010)

Additional Data

Software ID:
Software Version:

- TIN:

SCHEDULE C
(Form 990 or 990-EZ)

Department of the Treasury
Internal Revenue Service

Political Campaign and Lobbying Activities

For Organizations Exempt From Income Tax Under section 501(c) and section 527
SchCMd Bullet

Complete if the organization is described below.
SchCMd Bullet

Attach to Form 990 or Form 990-EZ. SchCMd Bullet

See separate instructions.

OMB No. 1545-0047

2010

Open to Public
Inspection

If the organization answered “Yes,” to Form 990, Part IV, Line 3, or Form 990-EZ, Part V, line 46 (Political Campaign Activities), then
Round Bullet

Section 501(c)(3) organizations: Complete Parts I-A and B. Do not complete Part I-C.
Round Bullet

Section 501(c) (other than section 501(c)(3)) organizations: Complete Parts I-A and C below. Do not complete Part I-B.
Round Bullet

Section 527 organizations: Complete Part I-A only.
If the organization answered “Yes,” to Form 990, Part IV, Line 4, or Form 990-EZ, Part VI, line 47 (Lobbying Activities), then
Round Bullet

Section 501(c)(3) organizations that have filed Form 5768 (election under section 501(h)) Complete Part II-A. Do not complete Part II-B.
Round Bullet

Section 501(c)(3) organizations that have NOT filed Form 5768 (election under section 501(h)): Complete Part II-B. Do not complete Part II-A.
If the organization answered “Yes,” to Form 990, Part IV, Line 5 (Proxy Tax) or Form 990-EZ, Part V, line 35a (Proxy Tax), then
Round Bullet

Section 501(c)(4), (5), or (6) organizations: Complete Part III.

Name of the organization

Phoenix Children's Hospital

Employer identification number

86-0422559

Part I-A

Complete if the organization is exempt under section 501(c) or is a section 527 organization.

Provide a description of the organization's direct and indirect political campaign activities on behalf of or in opposition to candidates for public office in Part IV.

Political expenditures .................................... SchCMd Bullet

Volunteer hours ........................................

Part I-B

Complete if the organization is exempt under section 501(c)(3).

Enter the amount of any excise tax incurred by the organization under section 4955 ......... SchCMd Bullet

Enter the amount of any excise tax incurred by organization managers under section 4955 ...... SchCMd Bullet

If the organization incurred a section 4955 tax, did it file Form 4720 for this year? ..............

Yes No

Was a correction made? .........................................

Yes No

If "Yes," describe in Part IV.

Part I-C

Complete if the organization is exempt under section 501(c) except section 501(c)(3).

Enter the amount directly expended by the filing organization for section 527 exempt function activities SchCMd Bullet

Enter the amount of the filing organization's funds contributed to other organizations for section 527 exempt funtion activities .................................... SchCMd Bullet

Total exempt function expenditures. Add lines 1 and 2. Enter here and on Form 1120-POL, line 17b.. SchCMd Bullet

Did the filing organization file Form 1120-POL for this year? ..........................

Yes No

Enter the names, addresses and employer identification number (EIN) of all section 527 political organizations to which the filing
organization made payments. For each organization listed, enter the amount paid from the filing organization’s funds. Also enter the amount of political contributions received that were promptly and directly delivered to a separate political organization, such as a separate segregated fund or a political action committee (PAC). If additional space is needed, provide information in Part IV.

(a) Name	(b) Address	(c) EIN	(d) Amount paid from filing organization's funds. If none, enter -0-.	(e) Amount of political contributions received and promptly and directly delivered to a separate political organization. If none, enter -0-.

For Privacy Act and Paperwork Reduction Act Notice, see the instructions for Form 990.

Cat. No. 50084S

Schedule C (Form 990 or 990-EZ) 2010

Page 2

Part II-A

Complete if the organization is exempt under section 501(c)(3) and filed Form 5768 (election under section 501(h)).

A Check if the filing organization belongs to an affiliated group.
B Check if the filing organization checked box A and "limited control" provisions apply.

Limits on Lobbying Expenditures (The term "expenditures" means amounts paid or incurred.)		(a) Filing Organization's Totals	(b) Affiliated Group Totals
1a	Total lobbying expenditures to influence public opinion (grass roots lobbying) ......	0
b	Total lobbying expenditures to influence a legislative body (direct lobbying) .......	187,769
c	Total lobbying expenditures (add lines 1a and 1b) ...................	187,769
d	Other exempt purpose expenditures ........................	341,375,600
e	Total exempt purpose expenditures (add lines 1c and 1d) ...............	341,563,369
f	Lobbying nontaxable amount. Enter the amount from the following table in both columns.	1,000,000
	If the amount on line 1e, column (a) or (b) is:The lobbying nontaxable amount is:
	Not over $500,00020% of the amount on line 1e.
	Over $500,000 but not over $1,000,000$100,000 plus 15% of the excess over $500,000.
	Over $1,000,000 but not over $1,500,000$175,000 plus 10% of the excess over $1,000,000.
	Over $1,500,000 but not over $17,000,000$225,000 plus 5% of the excess over $1,500,000.
	Over $17,000,000$1,000,000.

g	Grassroots nontaxable amount (enter 25% of line 1f) .................	250,000
h	Subtract line 1g from line 1a. If zero or less, enter -0-. ................
i	Subtract line 1f from line 1c. If zero or less, enter -0-. ................
j	If there is an amount other than zero on either line 1h or line 1i, did the organization file Form 4720 reporting section 4911 tax for this year? ......................................		Yes No

4-Year Averaging Period Under Section 501(h) (Some organizations that made a section 501(h) election do not have to complete all of the five columns below. See the instructions for lines 2a through 2f on page 4.)
Lobbying Expenditures During 4-Year Averaging Period
	Calendar year (or fiscal year beginning in)	(a) 2007	(b) 2008	(c) 2009	(d) 2010	(e) Total

2a	Lobbying non-taxable amount	1,000,000	1,000,000	1,000,000	1,000,000	4,000,000

b	Lobbying ceiling amount (150% of line 2a, column(e))					6,000,000

c	Total lobbying expenditures	255,972	223,113	285,005	187,769	951,859

d	Grassroots non-taxable amount	250,000	250,000	250,000	250,000	1,000,000

e	Grassroots ceiling amount (150% of line 2d, column (e))					1,500,000

f	Grassroots lobbying expenditures	255,972	223,113	0	0	479,085

Schedule C (Form 990 or 990-EZ) 2010

Page 3

Part II-B

Complete if the organization is exempt under section 501(c)(3) and has NOT filed Form 5768 (election under section 501(h)).

(a)

Yes

(b)

Amount

During the year, did the filing organization attempt to influence foreign, national, state or local legislation, including any attempt to influence public opinion on a legislative matter or referendum, through the use of:

Volunteers? .........................................

Paid staff or management (include compensation in expenses reported on lines 1c through 1i)? ....

Media advertisements? ....................................

Mailings to members, legislators, or the public? .........................

Publications, or published or broadcast statements? .......................

Grants to other organizations for lobbying purposes? .......................

Direct contact with legislators, their staffs, government officials, or a legislative body? ........

Rallies, demonstrations, seminars, conventions, speeches, lectures, or any similar means? ......

Other activities? If "Yes," describe in Part IV ..........................

Total. lines 1c through 1i ...................................

Did the activities in line 1 cause the organization to be not described in section 501(c)(3)? .....

If "Yes," enter the amount of any tax incurred under section 4912 .................

If "Yes," enter the amount of any tax incurred by organization managers under section 4912 .....

If the filing organization incurred a section 4912 tax, did it file Form 4720 for this year? .......

Part III-A

Complete if the organization is exempt under section 501(c)(4), section 501(c)(5), or section 501(c)(6).

Yes

Were substantially all (90% or more) dues received nondeductible by members? ................

Did the organization make only in-house lobbying expenditures of $2,000 or less? ................

Did the organization agree to carryover lobbying and political expenditures from the prior year? ..........

Part III-B

Complete if the organization is exempt under section 501(c)(4), section 501(c)(5), or section 501(c)(6) if BOTH Part III-A, lines 1 and 2 are answered “No” OR if Part III-A, line 3 is answered “Yes”.

Dues, assessments and similar amounts from members .....................

Section 162(e) non-deductible lobbying and political expenditures (do not include amounts of political
expenses for which the section 527(f) tax was paid).

Current year .........................................

Carryover from last year ....................................

Total ...........................................

Aggregate amount reported in section 6033(e)(1)(A) notices of nondeductible section 162(e) dues .

If notices were sent and the amount on line 2c exceeds the amount on line 3, what portion of the excess does the organization agree to carryover to the reasonable estimate of nondeductible lobbying and political expenditure next year? ................................

Taxable amount of lobbying and political expenditures (see instructions) ..............

Part IV

Supplemental Information

Complete this part to provide the descriptions required for Part l-A, line 1; Part l-B, line 4; Part l-C, line 5; and Part ll-B, line 1i.
Also, complete this part for any additional information.

Identifier	Return Reference	Explanation
ADVOCACY		PCH IS A POWERFUL ADVOCATE FOR CHILDREN ON THE NATIONAL, STATE, AND LOCAL STAGES. PCH LEADERSHIP AND MANY PHYSICIANS SERVE ON BOARDS, COMMISSIONS, AND COMMITTEES AND USE THEIR EXPERTISE TO THE BENEFIT OF OUR COMMUNITY AT LARGE.

Schedule C (Form 990 or 990EZ) 2010

Additional Data

Software ID:
Software Version:

- TIN:

SCHEDULE D
(Form 990)

Department of the Treasury
Internal Revenue Service

Supplemental Financial Statements

Complete if the organization answered "Yes," to Form 990,
Part IV, line 6, 7, 8, 9, 10, 11, or 12.
SchDMd Bullet

Attach to Form 990. SchDMd Bullet

See separate instructions.

OMB No. 1545-0047

2010

Open to Public Inspection

Name of the organization

Phoenix Children's Hospital

Employer identification number

86-0422559

Part I

Organizations Maintaining Donor Advised Funds or Other Similar Funds or Accounts. Complete if the organization answered "Yes" to Form 990, Part IV, line 6.

		(a) Donor advised funds	(b) Funds and other accounts
1	Total number at end of year .......
2	Aggregate contributions to (during year) ...
3	Aggregate grants from (during year) ...
4	Aggregate value at end of year .......

Did the organization inform all donors and donor advisors in writing that the assets held in donor advised
funds are the organization's property, subject to the organization's exclusive legal control? ............

Yes No

Did the organization inform all grantees, donors, and donor advisors in writing that grant funds may be
used only for charitable purposes and not for the benefit of the donor or donor advisor, or for any other purpose conferring impermissible private benefit. ...................................

Yes No

Part II

Conservation Easements. Complete if the organization answered "Yes" to Form 990, Part IV, line 7.

Purpose(s) of conservation easements held by the organization (check all that apply).

Preservation of land for public use (e.g., recreation or pleasure) Preservation of an historically importantly land area

Protection of natural habitat Preservation of a certified historic structure

Preservation of open space

Complete lines 2a–2d if the organization held a qualified conservation contribution in the form of a conservation easement on the last day of the tax year.


a	Total number of conservation easements .......................	2a
b	Total acreage restricted by conservation easements ..................	2b
c	Number of conservation easements on a certified historic structure included in (a) .....	2c
d	Number of conservation easements included in (c) acquired after 8/17/06 ........	2d

Number of conservation easements modified, transferred, released, extinguished, or terminated by the organization during
the taxable year SchDMd Bullet

Number of states where property subject to conservation easement is located SchDMd Bullet

Does the organization have a written policy regarding the periodic monitoring, inspection, handling of violations, and
enforcement of the conservation easements it holds? .............................

Yes No

Staff and volunteer hours devoted to monitoring, inspecting and enforcing conservation easements during the year SchDMd Bullet

Amount of expenses incurred in monitoring, inspecting, and enforcing conservation easements during the year SchDMd Bullet

Does each conservation easement reported on line 2(d) above satisfy the requirements of section
170(h)(4)(B)(i) and 170(h)(4)(B)(ii)? ....................................

Yes No

In Part XIV, describe how the organization reports conservation easements in its revenue and expense statement, and
balance sheet, and include, if applicable, the text of the footnote to the organization’s financial statements that describes
the organization’s accounting for conservation easements.

Part III

Organizations Maintaining Collections of Art, Historical Treasures, or Other Similar Assets.
Complete if the organization answered "Yes" to Form 990, Part IV, line 8.

If the organization elected, as permitted under SFAS 116, not to report in its revenue statement and balance sheet works of
art, historical treasures, or other similar assets held for public exhibition, education or research in furtherance of public service,
provide, in Part XIV, the text of the footnote to its financial statements that describes these items.

If the organization elected, as permitted under SFAS 116, to report in its revenue statement and balance sheet works of art,
historical treasures, or other similar assets held for public exhibition, education, or research in furtherance of public service,
provide the following amounts relating to these items:

(i)

Revenues included in Form 990, Part VIII, line 1 ........................ SchDMd Bullet

(ii)

Assets included in Form 990, Part X .............................. SchDMd Bullet

If the organization received or held works of art, historical treasures, or other similar assets for financial gain, provide the
following amounts required to be reported under SFAS 116 relating to these items:

Revenues included in Form 990, Part VIII, line 1 .......................... SchDMd Bullet

Assets included in Form 990, Part X ............................... SchDMd Bullet

For Privacy Act and Paperwork Reduction Act Notice, see the Intructions for Form 990

Cat. No. 52283D

Schedule D (Form 990) 2010

Page 2

Part III

Organizations Maintaining Collections of Art, Historical Treasures, or Other Similar Assets (continued)

Using the organization’s accession and other records, check any of the following that are a significant use of its collection
items (check all that apply):

Public exhibition

Loan or exchange programs

Scholarly research

Other

Preservation for future generations

Provide a description of the organization’s collections and explain how they further the organization’s exempt purpose in
Part XIV.

During the year, did the organization solicit or receive donations of art, historical treasures or other similar
assets to be sold to raise funds rather than to be maintained as part of the organization’s collection?........

Yes No

Part IV

Escrow and Custodial Arrangements. Complete if the organization answered "Yes" to Form 990,
Part IV, line 9, or reported an amount on Form 990, Part X, line 21.

Is the organization an agent, trustee, custodian or other intermediary for contributions or other assets not
included on Form 990, Part X? ....................................

Yes No

If "Yes," explain the arrangement in Part XIV and complete the following table:


c	Beginning balance .................................	1c
d	Additions during the year ..............................	1d
e	Distributions during the year .............................	1e
f	Ending balance ...................................	1f

Did the organization include an amount on Form 990, Part X, line 21? .....................

Yes No

If “Yes,” explain the arrangement in Part XIV.

Part V

Endowment Funds. Complete if the organization answered "Yes" to Form 990, Part IV, line 10.

		(a)Current Year	(b)Prior Year	(c)Two Years Back
1a	Beginning of year balance ....	3,626,192	3,175,694	4,355,490
b	Contributions ........	50,000	405	35,180
c	Investment earnings or losses ...		450,093	-1,214,976
d	Grants or scholarships .....
e	Other expenditures for facilities and programs ........
f	Administrative expenses ....
g	End of year balance ......	3,676,192	3,626,192	3,175,694

Provide the estimated percentage of the year end balance held as:

Board designated or quasi-endowment: SchDMd Bullet

100.000 %

Permanent endowment: SchDMd Bullet

0 %

Term endowment: SchDMd Bullet

0 %

Are there endowment funds not in the possession of the organization that are held and administered for the
organization by:

Yes

(i) unrelated organizations ........................

3a(i)

(ii) related organizations ........................

3a(ii)

Yes

If "Yes" to 3a(ii), are the related organizations listed as required on Schedule R? .........

Yes

Describe in Part XIV the intended uses of the organization's endowment funds.

Part VI

InvestmentsLand, Buildings, and Equipment. See Form 990, Part X, line 10.

Description of investment		(b)Cost or other basis (other)	(c) Accumulated depreciation	(d) Book value
1a	Land .................	38,448,039		38,448,039
b	Buildings ................	151,672,929	31,087,365	120,585,564
c	Leasehold improvements ............	31,072,450	6,124,454	24,947,996
d	Equipment ................	107,319,709	75,283,726	32,035,983
e	Other .................	361,866,224		361,866,224
Total. Add lines 1a-1e. (Column (d) should equal Form 990, Part X, column (B), line 10(c).)........				577,883,806

Schedule D (Form 990) 2010

Page 3

Part VII

InvestmentsOther Securities. See Form 990, Part X, line 12.

(a) Description of security or category (including name of security)		(b)Book value	(c) Method of valuation: Cost or end-of-year market value
(1)Financial derivatives
(2)Closely-held equity interests
Other








Total. (Column (b) should equal Form 990, Part X, col.(B) line 12.)

Part VIII

InvestmentsProgram Related. See Form 990, Part X, line 13.

(a) Description of investment type		(b) Book value	(c) Method of valuation: Cost or end-of-year market value









Total. (Column (b) should equal Form 990, Part X, col.(B) line 13.)

Part IX

Other Assets. See Form 990, Part X, line 15.

(a) Description				(b) Book value
(1) MISCELLANEOUS RECEIVABLES				7,247,528
(2) ALT INVESTMENT LIQUIDATION R/C				11,341,340
(3) ASSETS HELD AS COLLATERAL				33,509,864
(4) INVESTMENT IN AFFILIATE				1,705,239
(5) DEFERRED FINANCING COSTS				4,887,636
(6) DUE FROM FOUNDATION AFFILIATE				5,572,720
(7) RESTRICTED CASH				3,906,921
(8) MARK TO MARKET ASSET				9,977,346

Total. (Column (b) should equal Form 990, Part X, col.(B) line 15.)...........				78,148,594

Part X

Other Liabilities. See Form 990, Part X, line 25.

1.(a) Description of Liability		(b) Amount
Federal Income Taxes		0
MARK TO MARKET LIABILITY		60,674,557
DEFERRED COMPENSATION LIAB		10,130,381
DUE TO MAYO - BMT PROGRAM		207,585
MISC LIABILITIES		2,499,255
CAPTIVE LIABILITY		3,435,163
CONSTRUCTION RETAINAGE		7,769,977
ROSENBERG LT LIABILITY		4,472,825
GME LOAN		400,000

Total. (Column (b) should equal Form 990, Part X, col.(B) line 25.)		89,589,742
2. Fin 48 (ASC 740) Footnote. In Part XIV, provide the text of the footnote to the organization's financial statements that reports the organization's liability for uncertain tax positions under FIN 48 (ASC740).

Schedule D (Form 990) 2010

Page 4

Part XI Reconciliation of Change in Net Assets from Form 990 to Financial Statements
1	Total revenue (Form 990, Part VIII, column (A), line 12) ....................	1
2	Total expenses (Form 990, Part IX, column (A), line 25) .....................	2
3	Excess or (deficit) for the year. Subtract line 2 from line 1 .............	3
4	Net unrealized gains (losses) on investments ..........................	4
5	Donated services and use of facilities .............................	5
6	Investment expenses ...................................	6
7	Prior period adjustments ..................................	7
8	Other (Describe in Part XIV) .................................	8
9	Total adjustments (net). Add lines 4 - 8 .............................	9
10	Excess or (deficit) for the year per financial statements. Combine lines 3 and 9 .........	10

Part XII Reconciliation of Revenue per Audited Financial Statements With Revenue per Return
1	Total revenue, gains, and other support per audited financial statements .......		1
2	Amounts included on line 1 but not on Form 990, Part VIII, line 12:
a	Net unrealized gains on investments ..........	2a
b	Donated services and use of facilities .........	2b
c	Recoveries of prior year grants ...........	2c
d	Other (Describe in Part XIV): ............	2d
e	Add lines 2a through 2d .....................		2e
3	Subtract line 2e from line 1.....................		3
4	Amounts included on Form 990, Part VIII, line 12, but not on line 1:
a	Investment expenses not included on Form 990, Part VIII, line 7b .	4a
b	Other (Describe in Part XIV): ...........	4b
c	Add lines 4a and 4b.......................		4c
5	Total Revenue. Add lines 3 and 4c. (This should equal Form 990, Part I, line 12.) ......		5

Part XIII Reconciliation of Expenses per Audited Financial Statements With Expenses per Return
1	Total expenses and losses per audited financial statements .............		1
2	Amounts included on line 1 but not on Form 990, Part IX, line 25:
a	Donated services and use of facilities ..........	2a
b	Prior year adjustments ..............	2b
c	Other losses ................	2c
d	Other (Describe in Part XIV): ............	2d
e	Add lines 2a through 2d......................		2e
3	Subtract line 2e from line 1.....................		3
4	Amounts included on Form 990, Part IX, line 25, but not on line 1:
a	Investment expenses not included on Form 990, Part VIII, line 7b ..	4a
b	Other (Describe in Part XIV): ............	4b
c	Add lines 4a and 4b.......................		4c
5	Total expenses. Add lines 3 and 4c. (This should equal Form 990, Part I, line 18.) ......		5

Part XIV

Supplemental Information

Complete this part to provide the descriptions required for Part II, lines 3, 5, and 9; Part III, lines 1a and 4; Part lV, lines 1b and 2b;
Part V, line 4; Part X; Part XI, line 8; Part XII, lines 2d and 4b; and Part XIII, lines 2d and 4b. Also complete this part to provide any additional information.

Identifier	Return Reference	Explanation
INTENDED USE OF ENDOWMENT FUNDS	SCHED D PART V LINE 4	PHOENIX CHILDREN'S HOSPITAL FOUNDATION, A RELATED TAX-EXEMPT ORGANIZATION, HOLDS ENDOWMENT FUNDS THAT ARE TO BE USED TO PROVIDE ONGOING OUTSTANDING PEDIATRIC CARE TO CHILDREN, BY ENABLING PHOENIX CHILDREN'S HOSPITAL TO OFFER THE VERY BEST TECHNOLOGY, PROGRAMS AND MEDICAL SPECIALISTS. ENDOWMENT FUNDS WILL BE USED TO SUPPORT PHOENIX CHILDREN'S HOSPITAL PROGRAMS INCLUDING: THE CHILDREN'S NEUROSCIENCES INSTITUTE, THE CENTER FOR CANCER AND BLOOD DISORDERS, CAMP RAINBOW, A CAMP FOR CHILDREN WITH DIABETES, HEMOPHILIA AND KIDNEY DISEASE, THE CENTER FOR PEDIATRIC ORTHOPEDICS, PULMONARY AND CYSTIC FIBROSIS, PEDIATRIC RHEUMATOLOGY AND PEDIATRIC ONCOLOGY.
FIN 48 FOOTNOTE	SCHEDULE D, PART X, LINE 2	MANAGEMENT IS OF THE OPINION THAT SUBSTANTIALLY ALL OF THE HOSPITAL'S, FOUNDATION'S, AND CAPTIVE'S ACTIVITIES ARE RELATED TO THEIR EXEMPT PURPOSES AND NO MATERIAL UNCERTAIN TAX POSITIONS HAVE BEEN IDENTIFIED OR RECORDED IN THE CONSOLIDATED FINANCIAL STATEMENTS AT DECEMBER 31, 2010 AND 2009.

Schedule D (Form 990) 2010

Additional Data

Software ID:
Software Version:

- TIN:

SCHEDULE H
(Form 990)

Department of the Treasury
Internal Revenue Service

Hospitals

Complete if the organization answered "Yes" to Form 990, Part IV, question 20.
MediumBullet

Attach to Form 990. MediumBullet

See separate instructions.

OMB No. 1545-0047

2010

Open to Public Inspection

Name of the organization

Phoenix Children's Hospital

Employer identification number

86-0422559

Part I

Charity Care and Certain Other Community Benefits at Cost

Yes

Does the organization have a charity care policy? If "No," skip to question 6a...........

Yes

If "Yes," is it a written policy? .......................

Yes

If the organization has multiple hospitals, indicate which of the following best describes application of the charity care policy to the various hospitals.

Applied uniformly to all hospitals Applied uniformly to most hospitals Generally tailored to individual hospitals

Answer the following based on the charity care eligibility criteria that applies to the largest number of the organization's patients.

Does the organization use Federal Poverty Guidelines (FPG) to determine eligibility for providing free care to low

income individuals? If "Yes," indicate which of the following is the FPG family income limit for eligibility for free care:

Yes

100% 150% 200% Other

Does the organization use FPG to determine eligibility for providing discounted care to low income individuals? If

"Yes," indicate which of the following is the family income limit for eligibility for discounted care: .....

Yes

200% 250% 300% 350% 400% Other

If the organization does not use FPG to determine eligibility, describe in Part VI the income based criteria for determining eligibility for free or discounted care. Include in the description whether the organization uses an asset test or other threshold, regardless of income, to determine eligibility for free or discounted care.

Does the organization's policy provide free or discounted care to the "medically indigent"? ......

Yes

Does the organization budget amounts for free or discounted care provided under its charity care policy? ...

Yes

If "Yes," did the organization's charity care expenses exceed the budgeted amount?.........

If "Yes" to line 5b, as a result of budget considerations, was the organization unable to provide free or discounted
care to a patient who was eligibile for free or discounted care?...............

Does the organization prepare an annual community benefit report?.............

If "Yes," does the organization make it available to the public? ..............

Complete the following table using the worksheets provided in the Schedule H instructions. Do not submit these worksheets with the Schedule H.

Charity Care and Certain Other Community Benefits at Cost

	(c) Total community benefit expense	(d) Direct offsetting revenue	(e) Net community benefit expense	(f) Percent of total expense
a Charity care at cost (from Worksheets 1 and 2) ..	3,207,700	0	3,207,700	0.800 %
b Unreimbursed Medicaid (from Worksheet 3, column a) .	214,113,345	172,243,639	41,869,706	10.380 %
c Unreimbursed costs—other means-tested government programs (from Worksheet 3, column b) ....	1,415,190	1,658,397	-243,207	0.060 %
dTotal Charity Care and Means-Tested Government Programs .....	218,736,235	173,902,036	44,834,199	11.120 %
Other Benefits e Community health improvement services and community benefit operations (from (Worksheet 4) ....	3,924,462	2,844,709	1,079,753	0.270 %
f Health professions education (from Worksheet 5) ..	22,281,401	11,478,239	10,803,162	2.680 %
g Subsidized health services (from Worksheet 6) ..	15,428,401	6,639,101	8,789,300	2.180 %
h Research (from Worksheet 7)	3,338,964	0	532,984	0.130 %
i Cash and in-kind contributions to community groups (from Worksheet 8) ..	411,701	0	411,701	0 %
jTotal Other Benefits ...	45,384,929	20,962,049	21,616,900	5.260 %
kTotal. Add lines 7d and 7j. ..	264,121,164	194,864,085	66,451,099	16.380 %

For Privacy Act and Paperwork Reduction Act Notice, see the Instructions for Form 990. Cat. No. 50192T Schedule H (Form 990) 2010

Schedule H (Form 990) 2010

Page 2

Part II

Community Building Activities Complete this table if the organization conducted any community building activities.

		(c) Total community building expense	(d) Direct offsetting revenue	(e) Net community building expense	(f) Percent of total expense
1	Physical improvements and housing
2	Economic development
3	Community support	3,414,463	525,928	2,888,535	0.010 %
4	Environmental improvements
5	Leadership development and training for community members
6	Coalition building
7	Community health improvement advocacy
8	Workforce development
9	Other
10	Total	3,414,463	525,928	2,888,535	0.010 %

Part III

Bad Debt, Medicare, & Collection Practices

Section A. Bad Debt Expense

Yes

Does the organization report bad debt expense in accordance with Heathcare Financial Management Association Statement No. 15? ..........................

Yes

Enter the amount of the organization's bad debt expense (at cost).....

3,568,101

Enter the estimated amount of the organization's bad debt expense (at cost) attributable to patients eligible under the organization's charity care policy ..

Provide in Part VI the text of the footnote to the organization's financial statements that describes bad debt expense. In addition, describe the costing methodology used in determining the amounts reported on lines 2 and 3, and rationale for including a portion of bad debt amounts as community benefit.

Section B. Medicare

Enter total revenue received from Medicare (including DSH and IME).....

2,205,754

Enter Medicare allowable costs of care relating to payments on line 5.....

3,849,109

Subtract line 6 from line 5. This is the surplus or (shortfall)........

-1,643,355

Describe in Part VI the extent to which any shortfall reported in line 7 should be treated as community benefit.
Also describe in Part VI the costing methodology or source used to determine the amount reported on line 6.
Check the box that describes the method used:

Cost accounting system Cost to charge ratio Other

Section C. Collection Practices

Does the organization have a written debt collection policy? ...............

If "Yes," does the organization's collection policy contain provisions on the collection practices to be followed for patients who are known to qualify for charity care or financial assistance? Describe in Part VI......

Part IV

Management Companies and Joint Ventures

(a) Name of entity	(b) Description of primary activity of entity	(c) Organization's profit % or stock ownership %	(d) Officers, directors, trustees, or key employees' profit % or stock ownership%	(e) Physicians' profit % or stock ownership %
1
2
3
4
5
6
7
8
9
10
11
12
13

Schedule H (Form 990) 2010

Page 3

Part VFacility Information

Section A. Hospital Facilities (list in order of size, measured by total revenue per facility, from largest to smallest) How many hospital facilities did the organization operate during the tax year?2 Name and address
1	PHOENIX CHILDREN'S HOSPITAL-MAIN CAMPUS 1919 E THOMAS ROAD PHOENIX,AZ85019	X	X
2	PHOENIX CHILDREN'S HOSPITAL-NICU 1111 E MCDOWELL RD PHOENIX,AZ85006	X

Schedule H (Form 990) 2010

Page 4

Part VFacility Information (continued)

Section B. Facility Policies and Practices.

(Complete a separate Section B for each of the hospital facilities listed in Part V, Section A)

Name of Hospital Facility:PHOENIX CHILDREN'S HOSPITAL-MAIN CAMPUS

Line Number of Hospital Facility (from Schedule H, Part V, Section A):1

				Yes	No
Community Health Needs Assessment (Lines 1 through 7 are optional for 2010)
1	During the tax year or any prior tax year, did the hospital facility conduct a community health needs assessment (“Needs Assessment”)? If “No,” skip to question 8. .....................		1
	If “Yes,” indicate what the Needs Assessment describes (check all that apply):
	a	A definition of the community served by the hospital facility
	b	Demographics of the community
	c	Existing health care facilities and resources within the community that are available to respond to the health needs of the community
	d	How data was obtained
	e	The health needs of the community
	f	Primary and chronic disease needs and other health issues of uninsured persons, low-income persons, and minority groups
	g	The process for identifying and prioritizing community health needs and services to meet those needs
	h	The process for consulting with persons representing the community’s interests
	i	Information gaps that limit the hospital facility’s ability to assess all of the community’s health needs
	j	Other (describe in Part VI)
2	Indicate the tax year the hospital facility last conducted a Needs Assessment: 20
3	In conducting its most recent Needs Assessment, did the hospital facility take into account input from persons who represent the community served by the hospital facility? If “Yes,” describe in Part VI how the hospital facility took into account input from persons who represent the community, and identify the persons the hospital facility consulted.		3
4	Was the hospital facility’s Needs Assessment conducted with one or more other hospital facilities? If “Yes,” list the other hospital facilities in Part VI............................		4
5	Did the hospital facility make its Needs Assessment widely available to the public? ...........		5
	If “Yes,” indicate how the Needs Assessment was made widely available (check all that apply):
	a	Hospital facility’s website
	b	Available upon request from the hospital facility
	c	Other (describe in Part VI)
6	If the hospital facility addressed needs identified in its most recently conducted Needs Assessment, indicate how (check all that apply):
	a	Adoption of an implementation strategy to address the health needs of the hospital facility’s community
	b	Execution of the implementation strategy
	c	Development of a community benefit plan for the facility
	d	Participation in community-wide community benefit plan
	e	Inclusion of a community benefit section in operational plans
	f	Adoption of a budget for provision of services that address the needs identified in the CHNA
	g	Prioritization of health needs in the community
	h	Prioritization of services that the hospital facility will undertake to meet health needs in its community
	i	Other (describe in Part VI)
7	Did the hospital facility address all of the needs identified in its most recently conducted Needs Assessment? If “No,” explain in Part VI which needs it has not addressed together with the reasons why it has not addressed such needs.		7
Financial Assistance Policy
	Did the hospital facility have in place during the tax year a written financial assistance policy that:
8	Explains eligibility criteria for financial assistance, and whether such assistance includes free or discounted care?		8
9	Used federal poverty guidelines (FPG) to determine eligibility for providing free care to low incomeindividuals?..		9
	If “Yes,” indicate the FPG family income limit for eligibility for free care: %

Schedule H (Form 990) 2010

Page 5

Part VFacility Information (continued)

				Yes	No
10	Used FPG to determine eligibility for providing discounted care to low income individuals?.........		10
	If “Yes,” indicate the FPG family income limit for eligibility for discounted care: %
11	Explained the basis for calculating amounts charged to patients?.................		11
	If “Yes,” indicate the factors used in determining such amounts (check all that apply):
	a	Income level
	b	Asset level
	c	Medical indigency
	d	Insurance status
	e	Uninsured discount
	f	Medicaid/Medicare
	g	State regulation
	h	Other (describe in Part VI)
12	Explained the method for applying for financial assistance?...................		12
13	Included measures to publicize the policy within the community served by the hospital facility?.......		13
	If “Yes,” indicate how the hospital facility publicized the policy (check all that apply):
	a	The policy was posted at all times on the hospital facility’s web site
	b	The policy was attached to all billing invoices
	c	The policy was posted in the hospital facility’s emergency rooms or waiting rooms
	d	The policy was posted in the hospital facility’s admissions offices
	e	The policy was provided, in writing, to patients upon admission to the hospital facility
	f	The policy was available upon request
	g	Other (describe in Part VI)
Billing and Collections
14	Did the hospital facility have in place during the tax year a separate billing and collections policy, or a written financial assistance policy that explained actions the hospital facility may take upon non-payment?........		14
15	Check all of the following collection actions against a patient that were permitted under the hospital facility's policies at any time during the tax year:
	a	Reporting to credit agency
	b	Lawsuits
	c	Liens on residences
	d	Body attachments or arrests
	e	Other (describe in Part VI)
16	Did the hospital facility engage in or authorize a third party to engage in any of the following collection actions during the tax year?...................................		16
	If “Yes,” check all collection actions in which the hospital facility or a third party engaged (check all that apply):
	a	Reporting to credit agency
	b	Lawsuits
	c	Liens on residences
	d	Body attachments
	e	Other (describe in Part VI)
17	Indicate which actions the hospital facility took before initiating any of the collection actions checked in question 16 (check all that apply):
	a	Notified patients of the financial assistance policy upon admission
	b	Notified patients of the financial assistance policy prior to discharge
	c	Notified patients of the financial assistance policy in communications with the patients regarding the patients’ bills
	d	Documented its determination of whether a patient who applied for financial assistance under the financial assistance policy qualified for financial assistance
	e	Other (describe in Part VI)

Schedule H (Form 990) 2010

Page 6

Part VFacility Information (continued)

Policy Relating to Emergency Medical Care
				Yes	No
18	Did the hospital facility have in place during the tax year a written policy relating to emergency medical care that requires the hospital facility to provide, without discrimination, care for emergency medical conditions to individuals regardless of their eligibility under the hospital facility’s financial assistance policy?..........		18
	If “No,” indicate the reasons why (check all that apply):
	a	The hospital facility did not provide care for any emergency medical conditions
	b	The hospital facility did not have a policy relating to emergency medical care
	c	The hospital facility limited who was eligible to receive care for emergency medical conditions (describe in Part VI)
	d	Other (describe in Part VI)
Charges for Medical Care
19	Indicate how the hospital facility determined the amounts generally billed to individuals who had insurance covering emergency or other medically necessary care (check all that apply):
	a	The hospital facility used the lowest negotiated commercial insurance rate for those services at the hospital facility
	b	The hospital facility used the average of the three lowest negotiated commercial insurance rates for those services at the hospital facility
	c	The hospital facility used the Medicare rate for those services
	d	Other (describe in Part VI)
20	Did the hospital facility charge any of its patients who were eligible for assistance under the hospital facility’s financial assistance policy, and to whom the hospital facility provided emergency or other medically necessary services, more than the amounts generally billed to individuals who had insurance covering such care?.........		20
	If “Yes,” explain in Part VI.
21	Did the hospital facility charge any of its patients an amount equal to the gross charge for services provided to that patient?...................................		21
	If “Yes,” explain in Part VI.

Schedule H (Form 990) 2010

Page 4

Part VFacility Information (continued)

Section B. Facility Policies and Practices.

(Complete a separate Section B for each of the hospital facilities listed in Part V, Section A)

Name of Hospital Facility:PHOENIX CHILDREN'S HOSPITAL-NICU

Line Number of Hospital Facility (from Schedule H, Part V, Section A):2

				Yes	No
Community Health Needs Assessment (Lines 1 through 7 are optional for 2010)
1	During the tax year or any prior tax year, did the hospital facility conduct a community health needs assessment (“Needs Assessment”)? If “No,” skip to question 8. .....................		1
	If “Yes,” indicate what the Needs Assessment describes (check all that apply):
	a	A definition of the community served by the hospital facility
	b	Demographics of the community
	c	Existing health care facilities and resources within the community that are available to respond to the health needs of the community
	d	How data was obtained
	e	The health needs of the community
	f	Primary and chronic disease needs and other health issues of uninsured persons, low-income persons, and minority groups
	g	The process for identifying and prioritizing community health needs and services to meet those needs
	h	The process for consulting with persons representing the community’s interests
	i	Information gaps that limit the hospital facility’s ability to assess all of the community’s health needs
	j	Other (describe in Part VI)
2	Indicate the tax year the hospital facility last conducted a Needs Assessment: 20
3	In conducting its most recent Needs Assessment, did the hospital facility take into account input from persons who represent the community served by the hospital facility? If “Yes,” describe in Part VI how the hospital facility took into account input from persons who represent the community, and identify the persons the hospital facility consulted.		3
4	Was the hospital facility’s Needs Assessment conducted with one or more other hospital facilities? If “Yes,” list the other hospital facilities in Part VI............................		4
5	Did the hospital facility make its Needs Assessment widely available to the public? ...........		5
	If “Yes,” indicate how the Needs Assessment was made widely available (check all that apply):
	a	Hospital facility’s website
	b	Available upon request from the hospital facility
	c	Other (describe in Part VI)
6	If the hospital facility addressed needs identified in its most recently conducted Needs Assessment, indicate how (check all that apply):
	a	Adoption of an implementation strategy to address the health needs of the hospital facility’s community
	b	Execution of the implementation strategy
	c	Development of a community benefit plan for the facility
	d	Participation in community-wide community benefit plan
	e	Inclusion of a community benefit section in operational plans
	f	Adoption of a budget for provision of services that address the needs identified in the CHNA
	g	Prioritization of health needs in the community
	h	Prioritization of services that the hospital facility will undertake to meet health needs in its community
	i	Other (describe in Part VI)
7	Did the hospital facility address all of the needs identified in its most recently conducted Needs Assessment? If “No,” explain in Part VI which needs it has not addressed together with the reasons why it has not addressed such needs.		7
Financial Assistance Policy
	Did the hospital facility have in place during the tax year a written financial assistance policy that:
8	Explains eligibility criteria for financial assistance, and whether such assistance includes free or discounted care?		8
9	Used federal poverty guidelines (FPG) to determine eligibility for providing free care to low incomeindividuals?..		9
	If “Yes,” indicate the FPG family income limit for eligibility for free care: %

Schedule H (Form 990) 2010

Page 5

Part VFacility Information (continued)

				Yes	No
10	Used FPG to determine eligibility for providing discounted care to low income individuals?.........		10
	If “Yes,” indicate the FPG family income limit for eligibility for discounted care: %
11	Explained the basis for calculating amounts charged to patients?.................		11
	If “Yes,” indicate the factors used in determining such amounts (check all that apply):
	a	Income level
	b	Asset level
	c	Medical indigency
	d	Insurance status
	e	Uninsured discount
	f	Medicaid/Medicare
	g	State regulation
	h	Other (describe in Part VI)
12	Explained the method for applying for financial assistance?...................		12
13	Included measures to publicize the policy within the community served by the hospital facility?.......		13
	If “Yes,” indicate how the hospital facility publicized the policy (check all that apply):
	a	The policy was posted at all times on the hospital facility’s web site
	b	The policy was attached to all billing invoices
	c	The policy was posted in the hospital facility’s emergency rooms or waiting rooms
	d	The policy was posted in the hospital facility’s admissions offices
	e	The policy was provided, in writing, to patients upon admission to the hospital facility
	f	The policy was available upon request
	g	Other (describe in Part VI)
Billing and Collections
14	Did the hospital facility have in place during the tax year a separate billing and collections policy, or a written financial assistance policy that explained actions the hospital facility may take upon non-payment?........		14
15	Check all of the following collection actions against a patient that were permitted under the hospital facility's policies at any time during the tax year:
	a	Reporting to credit agency
	b	Lawsuits
	c	Liens on residences
	d	Body attachments or arrests
	e	Other (describe in Part VI)
16	Did the hospital facility engage in or authorize a third party to engage in any of the following collection actions during the tax year?...................................		16
	If “Yes,” check all collection actions in which the hospital facility or a third party engaged (check all that apply):
	a	Reporting to credit agency
	b	Lawsuits
	c	Liens on residences
	d	Body attachments
	e	Other (describe in Part VI)
17	Indicate which actions the hospital facility took before initiating any of the collection actions checked in question 16 (check all that apply):
	a	Notified patients of the financial assistance policy upon admission
	b	Notified patients of the financial assistance policy prior to discharge
	c	Notified patients of the financial assistance policy in communications with the patients regarding the patients’ bills
	d	Documented its determination of whether a patient who applied for financial assistance under the financial assistance policy qualified for financial assistance
	e	Other (describe in Part VI)

Schedule H (Form 990) 2010

Page 6

Part VFacility Information (continued)

Policy Relating to Emergency Medical Care
				Yes	No
18	Did the hospital facility have in place during the tax year a written policy relating to emergency medical care that requires the hospital facility to provide, without discrimination, care for emergency medical conditions to individuals regardless of their eligibility under the hospital facility’s financial assistance policy?..........		18
	If “No,” indicate the reasons why (check all that apply):
	a	The hospital facility did not provide care for any emergency medical conditions
	b	The hospital facility did not have a policy relating to emergency medical care
	c	The hospital facility limited who was eligible to receive care for emergency medical conditions (describe in Part VI)
	d	Other (describe in Part VI)
Charges for Medical Care
19	Indicate how the hospital facility determined the amounts generally billed to individuals who had insurance covering emergency or other medically necessary care (check all that apply):
	a	The hospital facility used the lowest negotiated commercial insurance rate for those services at the hospital facility
	b	The hospital facility used the average of the three lowest negotiated commercial insurance rates for those services at the hospital facility
	c	The hospital facility used the Medicare rate for those services
	d	Other (describe in Part VI)
20	Did the hospital facility charge any of its patients who were eligible for assistance under the hospital facility’s financial assistance policy, and to whom the hospital facility provided emergency or other medically necessary services, more than the amounts generally billed to individuals who had insurance covering such care?.........		20
	If “Yes,” explain in Part VI.
21	Did the hospital facility charge any of its patients an amount equal to the gross charge for services provided to that patient?...................................		21
	If “Yes,” explain in Part VI.

Schedule H (Form 990) 2010

Page 7

Part VFacility Information (continued)

Section C. Other Facilities That Are Not Licensed, Registered, or Similarly Recognized as a Hospital Facility (list in order of size, measured by total revenue per facility, from largest to smallest) How many non-hospital facilities did the organization operate during the tax year?6
Name and address		Type of Facility (Describe)
1	PHOENIX CHILDREN'S HOSPITAL 1920 E CAMBRIDGE AVENUE PHOENIX,AZ85006	SURGERY CENTER
2	PHOENIX CHILDREN'S HOSPITAL 1920 E CAMBRIDGE AVENUE PHOENIX,AZ85006	SURGERY CENTER
3	PHOENIX CHILDREN'S HOSPITAL 1920 E CAMBRIDGE AVENUE PHOENIX,AZ85006	SURGERY CENTER
4	PHOENIX CHILDREN'S HOSPITAL 1920 E CAMBRIDGE AVENUE PHOENIX,AZ85006	SURGERY CENTER
5	PHOENIX CHILDREN'S HOSPITAL 1920 E CAMBRIDGE AVENUE PHOENIX,AZ85006	SURGERY CENTER
6	PHOENIX CHILDREN'S HOSPITAL 1920 E CAMBRIDGE AVENUE PHOENIX,AZ85006	SURGERY CENTER
7
8
9
10

Schedule H (Form 990) 2010

Page 8

Part VI

Supplemental Information

Complete this part to provide the following information.

1	Required descriptions. Provide the description required for Part I, lines 3c, 6a, and 7; Part II; Part III, lines 4, 8, and 9b; and Part V, Section B, lines 1j, 2, 4c, 6i, 7, 11i, 13i, 17l, 18l, 19e, 21d, 25, and 26.
2	Community health needs assessment. Describe how the organization assesses the health care needs of the communities it serves, in addition to any community health needs assessments reported in Part V, Section B.
3	Patient education of eligibility for assistance. Describe how the organization informs and educates patients and persons who may be billed for patient care about their eligibility for assistance under federal, state, or local government programs or under the organization’s financial assistance policy.
4	Community information. Describe the community the organization serves, taking into account the geographic area and demographic constituents it serves.
5	Promotion of community health. Provide any other information important to describing how the organization’s hospital facilities or other health care facilities further its exempt purpose by promoting the health of the community (e.g., open medical staff, community board, use of surplus funds, etc.).
6	Affiliated health care system. If the organization is part of an affiliated health care system, describe the respective roles of the organization and its affiliates in promoting the health of the communities served.
7	State filing of community benefit report. If applicable, identify all states with which the organization, or a related organization, files a community benefit report.

Identifier	ReturnReference	Explanation
FINANCIAL ASSISTANCE AND OTHER COMMUNITY BENEFITS AT COST	SCHEDULE H, PART I, LINE 7	COSTS ARE REPORTED USING A COST TO CHARGE RATIO. THE RATIO WAS CALCULATED BY DIVIDING TOTAL CHARGES RECORDED FOR ALL PATIENTS BY TOTAL EXPENSES REQUIRED TO PROVIDE THAT CARE. COLUMN F - BAD DEBT EXPENSE OF $10,297,126 WAS SUBTRACTED FROM TOTAL EXPENSES IN THE DENOMINATOR FOR PURPOSES OF CALCULATING THE PERCENTAGES FOR THIS COLUMN. LINE 7G - THE AMOUNT REPORTED INCLUDES $1,120,662 OF COSTS RELATED TO THE OPERATIONS OF PHYSICIAN CLINICS.
COSTING METHODOLOGY	SCHEDULE H, PART III, LINE 4	THE COSTING METHODOLOGY IS CONSISTENT WITH THE METHODOLOGY USED IN PART I, LINE 7.
MEDICARE	SCHEDULE H, PART III, LINE 8	THE SHORTFALL OF REVENUE OVER THE COST TO PROVIDE CARE WHICH IS CALCULATED USING THE HOSPITAL'S COST TO CHARGE RATIO SHOULD BE CONSIDERED CHARITY CARE. THE COSTS WERE CALCULATED USING THE COST TO CHARGE RATIO FROM THE MOST RECENTLY FILED MEDICARE COST REPORT.
NEEDS ASSESSMENT	SCHEDULE H, PART VI, LINE 2	COMMUNITY NEEDS ARE DETERMINED VIA AN ASSESSMENT OF MULTIPLE STAKEHOLDERS, STATE AND FEDERAL GOVERNMENT REPORTS, AND PATIENT DATA. PRIORITIES AND PROGRAMS ARE DEVELOPED TO SERVE THESE DEMONSTRATED NEEDS, WITH A SPECIAL FOCUS ON POPULATIONS THAT ARE KNOWN TO HAVE DIFFICULTY ACCESSING CARE AND PROGRAMS THAT IMPROVE OVERALL PEDIATRIC HEALTH AND SAFETY.
PATIENT EDUCATION OF ELIGIBILITY FOR ASSISTANCE	SCHEDULE H, PART VI, LINE 3	FINANCIAL COUNSELORS ARE AVAILABLE TO ASSIST PATIENTS WITH INSURANCE COMPANIES, STATE AGENCIES, ACCESS TO PCH DISCOUNTED CARE OR APPLYING FOR THE HOSPITAL'S CHARITY CARE POLICY. INFORMATION REGARDING THE CHARITY CARE POLICY IS AVAILABLE ON OUR WEB SITE. FINANCIAL COUNSELORS INTERVIEW PARENTS OF CHILDREN WHO ARE UNINSURED AND UNDERINSURED. AHCCCS APPLICATIONS ARE INITIATED BY PCH ON BEHALF OF THE PATIENTS AND IF THE PARENTS DO NOT QUALIFY, FINANCIAL COUNSELORS PROCEED WITH THE FINANCIAL ASSISTANCE PROCESS.
COMMUNITY INFORMATION	SCHEDULE H, PART VI, LINE 4	BASED ON STATISTICS GATHERED BY THE ANN E. CASEY KIDSCOUNT SURVEY, THE STATE OF ARIZONA HAS A POPULATION OF OVER 1.3 MILLION PEOPLE UNDER THE AGE OF 18, 35% OF WHICH ARE 5 YEARS AND UNDER. THE SAME POPULATION IS 46% WHITE AND 40% HISPANIC. ACCORDING TO THE SURVEY, THERE WERE 621,000 CHILDREN ENROLLED IN MEDICAID, AN ESTIMATED 257,442 CHILDREN UNINSURED AND AN ESTIMATED 190,507 CHILDREN UNINSURED BUT ELIGIBLE FOR MEDICAID. 273,390 OR 20% OF CHILDREN WERE AT OR BELOW THE FEDERAL POVERTY LEVEL AND 464,762 AT OR BELOW 150% FEDERAL POVERTY LEVEL.
PROMOTION OF COMMUNITY HEALTH	PART VI, LINE 5	PCH HAS DEVELOPED SIGNATURE COMMUNITY OUTREACH PROGRAMS THAT SERVE SPECIFIC POPULATIONS WITH SERIOUS HEALTHCARE NEEDS AND LIMITED ACCESS TO CARE. ONE EXAMPLE IS THE CREWS'N HEALTHMOBILE MOBILE MEDICAL VAN THAT SERVES HOMELESS YOUTH. IN ADDITION, PCH HAS IDENTIFIED THREE MAJOR AREAS OF FOCUS FOR COMMUNITY OUTREACH AND EDUCATION: INJURY PREVENTION, HEALTHY CHILDREN AND FAMILIES, AND CHILD ABUSE PREVENTION. PCH SPONSORS AND ADMINISTERS MULTIPLE PROGRAMS IN THESE THREE CATEGORIES. COMMUNITY BENEFIT ENCOMPASSES A WIDE VARIETY OF RESOURCES AND PROGRAMS. HIGHLIGHTS INCLUDE: CHARITY CARE BECAUSE NO CHILD IS DENIED NEEDED CARE DUE TO AN INABILITY TO PAY, FREE OR DISCOUNTED CARE WAS ADMINISTERED TO UNINSURED OR UNDERINSURED PATIENTS. GOVERNMENT-SPONSORED HEALTHCARE PCH ALSO DELIVERS HEALTHCARE TO INDIGENT PATIENTS. GOVERNMENT-SPONSORED HEALTHCARE COVERAGE REIMBURSES ONLY A PORTION OF THE COSTS OF THIS CARE. THE UNREIMBURSED PORTION IS A COMMUNITY BENEFIT DELIVERED BY PCH. COMMUNITY OUTREACH PROGRAMS PCH HAS DEVELOPED SIGNATURE COMMUNITY OUTREACH PROGRAMS THAT SERVE SPECIFIC POPULATIONS WITH SERIOUS HEALTHCARE NEEDS AND LIMITED ACCESS TO CARE. ONE EXAMPLE IS THE CREWSN HEALTHMOBILE MOBILE MEDICAL VAN THAT SERVES HOMELESS YOUTH. SUBSIDIZED PROGRAMS PCH SUBSIDIZES CERTAIN MEDICAL PROGRAMS WHERE WE ARE UNIQUELY QUALIFIED TO PROVIDE THE CARE OR WHERE PATIENTS HAVE LIMITED ACCESS TO CARE. EXAMPLES INCLUDE THE BILL HOLT HIV/AIDS CLINIC AND THE HEALTHY STEPS PROGRAM. EDUCATION CONTINUING EDUCATION FOR TODAYS PHYSICIANS AND NURSES, AS WELL AS EDUCATING THE NEXT GENERATION OF HEALTHCARE PROVIDERS IS A PRIME FOCUS FOR PCH. CONTINUING MEDICAL EDUCATION PROGRAMS INCLUDE RESIDENCY AND FELLOWSHIP TRAINING, A SERIES OF CLINICAL EDUCATION PROGRAMS, AND THE HOSPITALS PREMIER PROGRAM -- GAPP, WHICH PROVIDES SPECIALIZED TRAINING TO NURSES WHO ARE NEW TO PEDIATRICS. RESEARCH PCH'S CLINICIANS CONDUCTED RESEARCH STUDIES TO ADVANCE MEDICAL KNOWLEDGE. THE INSTITUTIONAL REVIEW BOARD PROVIDES INSTITUTIONAL INFRASTRUCTURE TO SUPPORT RESEARCH EFFORTS AT PCH, AS WELL AS IN COLLABORATION WITH OTHER INSTITUTIONS SUCH AS MAYO CLINIC, UNIVERSITY OF ARIZONA SCHOOL OF MEDICINE, AND TRANSLATIONAL GENOMICS RESEARCH INSTITUTE. COMMUNITY BENEFIT OPERATIONS PCH UNDERWRITES THE ADMINISTRATIVE COSTS OF MANAGING COMMUNITY BENEFIT PROGRAMS AND CONTRIBUTES TIME, MEETING SPACE, AND OTHER RESOURCES THAT ENHANCE THE ABILITY OF OUR COMMUNITYS MOST EFFECTIVE COMMUNITY SERVICE PROGRAMS TO MEET HUMAN NEEDS. CHARITY CARE POLICY PCHS CHARITY CARE POLICY WAS ESTABLISHED IN ORDER TO IDENTIFY AND ASSIST PATIENTS WHO LACK THE FINANCIAL RESOURCES TO MEET ALL OR PART OF THEIR FINANCIAL LIABILITY FOR SERVICES RENDERED AND TO DETERMINE THEIR ELIGIBILITY FOR PCH-BASED FINANCIAL ASSISTANCE. MEDICAL INTERPRETER/TRANSLATION SERVICES CLEAR COMMUNICATION BETWEEN PATIENTS AND PROVIDERS IS AN URGENT HEALTH AND SAFETY ISSUE. PHOENIX CHILDREN'S MEDICAL INTERPRETER/TRANSLATOR PROGRAM IS THE NATIONAL MODEL TO IMPROVE COMMUNICATION AND SAFETY WITH THE HISPANIC POPULATION AT 20 CHILDREN'S HOSPITALS. MEDICAL INTERPRETER TRAINERS FROM NATIONAL AND LOCAL HOSPITALS GATHERED AT PHOENIX CHILDREN'S FOR TRAINING DESIGNED TO IMPROVE COMMUNICATION AND SAFETY FOR PATIENTS AND THEIR FAMILIES. ATTENDEES WERE TRAINED IN TEACHING BILINGUAL HEALTHCARE WORKERS MEDICAL TERMS, INTERPRETING PROTOCOL AND MULTICULTURAL UNDERSTANDING. SINCE 2001, THE HOSPITAL HAS TRAINED NEARLY 1,000 STUDENTS IN MEDICAL TERMINOLOGY, INTERPRETING ETHICS, LEADERSHIP, CULTURAL DIFFERENCES AND TEAM BUILDING. CHILD ABUSE PREVENTION AT LEAST FOUR U.S. CHILDREN DIE AS A RESULT OF CHILD ABUSE IN THE HOME EACH DAY. ACCORDING TO THE ARIZONA DEPARTMENT OF HEALTH, 65 ARIZONA CHILDREN DIED AS A RESULT OF MALTREATMENT IN 2007 (THE MOST RECENT YEAR FOR WHICH NUMBERS ARE AVAILABLE) - THE OVERWHELMING MAJORITY OF THESE VICTIMS ARE UNDER THE AGE OF FIVE. CHILD ABUSE AND NEGLECT ARE PREVENTABLE, YET EACH YEAR IN THE UNITED STATES, CLOSE TO ONE MILLION CHILDREN ARE CONFIRMED VICTIMS OF CHILD MALTREATMENT. THE COSTS OF RESPONDING TO THE IMPACT OF CHILD ABUSE AND NEGLECT ARE BORNE BY THE VICTIMS AND THEIR FAMILIES BUT ALSO BY OUR COMMUNITY. A RECENT REPORT BY THE PEW CHARITABLE TRUST ESTIMATES THE ANNUAL COST OF CHILD ABUSE AND NEGLECT IS AN ASTOUNDING $103.8 BILLION NATIONWIDE. EVERY APRIL IS CHILD ABUSE PREVENTION MONTH AND PHOENIX CHILDREN'S IS A LEADER IN THE COMMUNITY IN PROMOTING THE MESSAGE OF PREVENTION: NO ONE CAN DO EVERYTHING -- NO ONE PARENT, GRANDPARENT, TEACHER, NEIGHBOR, ELECTED OFFICIAL, AGENCY OR INDIVIDUAL. BUT EVERYONE CAN DO SOMETHING. THROUGHOUT THE MONTH OF APRIL A VARIETY OF EVENTS TAKE PLACE FOCUSING ON PREVENTION. ACTIVITIES INCLUDE THE ANNUAL CHILDREN'S MARCH ON CHILD ABUSE, A "PROMISES FOR PARENTS" CAMPAIGN, PRESS CONFERENCE, AND A BLUE RIBBON NEWS CONFERENCE. PHOENIX CHILDREN'S HOSPITAL IS A LEADER IN SHARING THE MESSAGE THAT PREVENTION WORKS. BUT WE ARE COMMITTED TO REDUCING THE RISK OF ABUSE FOR CHILDREN IN OUR COMMUNITY THROUGHOUT THE YEAR. PHOENIX CHILDREN'S REACHES OUT TO PARENTS, TEACHERS AND OTHER PROFESSIONALS CARING FOR CHILDREN AND FAMILIES BY OFFERING A NUMBER OF PREVENTION PROGRAMS THAT ADDRESS ALL TYPES OF MALTREATMENT, INCLUDING SHAKEN BABY SYNDROME AND CHILD SEXUAL ABUSE. INJURY PREVENTION EACH YEAR, MORE THAN 6,500 U.S. CHILDREN UNDER THE AGE OF 14 ARE KILLED BY PREVENTABLE INJURIES, MEANING SOMEONE COULD HAVE DONE SOMETHING TO CHANGE THE CIRCUMSTANCES THAT LED TO THE CHILD'S DEATH. THE FOLLOWING PROGRAMS ADDRESS THE CHALLENGE OF INJURY PREVENTION IN OUR COMMUNITY. DROWNING AWARENESS AND PREVENTION WITH THE HELP OF A VERY SPECIAL FAMILY, PHOENIX CHILDREN'S DEVELOPED WATER WATCHERS, A SIGNATURE INJURY PREVENTION PROGRAM TO COUNTER THE EPIDEMIC OF CHILD DROWNINGS IN OUR DESERT CITY. FOR THE COMMUNITY AND THE WATER WATCHERS PROGRAM, 2008 WAS A YEAR OF MANY HIGHS AND LOWS -- THE FAMILY OF WESTON LETTER RECOGNIZED THE TEN YEAR ANNIVERSARY OF HIS DEATH. AT THE AGE OF THREE AND A HALF, HE DROWNED IN HIS FAMILY'S BACKYARD SWIMMING POOL. THE WATER WATCHERS PROGRAM WAS DEVELOPED IN HIS HONOR. THE ACCOMPLISHMENTS OF THE PROGRAM BRING HIS FAMILY COMFORT - TEACHING THE COMMUNITY THAT TRAGEDY KNOWS NO BOUNDARIES IS IMPORTANT, AND PROVIDING FAMILIES WITH REAL-LIFE SOLUTIONS TO KEEPING CHILDREN SAFE AROUND WATER HELPS THEM TO KNOW THAT THEY'VE MADE A DIFFERENCE. AND THE WATER WATCHERS PROGRAM DID MAKE A DIFFERENCE IN THE COMMUNITY. AT WATER SAFETY DAY, 1,200 FIRST GRADERS FROM AROUND THE COMMUNITY LEARNED HANDS-ON ABOUT THE STEPS THEY CAN TAKE TO PROTECT THEMSELVES AND OTHERS FROM DROWNING. THE EVENT IS THE OFFICIAL KICKOFF TO SWIM SEASON, AND MARKS ONE OF THE HIGHEST LEVELS OF DROWNING PREVENTION COLLABORATION SEEN IN THE VALLEY. ACROSS THE VALLEY, MANY SCHOOLS DOWNLOADED AND UTILIZED FREE WATER WATCHER'S CURRICULUM TO EDUCATE CHILDREN ABOUT THE DANGERS OF DROWNINGS. CURRICULUM MATERIALS WERE PROVIDED TO MORE THAN 100 SCHOOLS. DURING DROWNING IMPACT AWARENESS MONTH, MORE THAN 50,000 PURPLE RIBBONS WERE DISTRIBUTED AROUND THE STATE OF ARIZONA. THE RIBBONS SERVED BOTH AS A REMINDER OF THE DANGER OF DROWNINGS AND AS A WAY TO REMEMBER CHILDREN THAT WE HAVE LOST. ADDITIONALLY, NEARLY THIRTY COMMUNITIES PASSED "DROWNING IMPACT AWARENESS MONTH" PROCLAMATIONS DURING THE MONTH OF AUGUST. WORKING WITH THE MEDIA REGULARLY, THE WATER WATCHERS PROGRAM HELPS FAMILIES TO UNDERSTAND HOW DROWNINGS OCCUR AND TO RECOGNIZE NEW TRENDS IN INCIDENTS AND PREVENTION STRATEGIES. THROUGHOUT THE VALLEY, WATER WATCHERS REPRESENTATIVES ATTENDED COMMUNITY EVENTS, PROVIDED SUPPLIES, AND GAVE EDUCATIONAL PRESENTATIONS TO MORE THAN 4,000 FAMILIES. ON A LOCAL AND NATIONAL LEVEL, WATER WATCHERS REPRESENTATIVES SUPPORT DROWNING PREVENTION ORGANIZATIONS LIKE THE NATIONAL DROWNING PREVENTION ALLIANCE, ACTING AS AN ADVOCATE FOR FAMILIES TOUCHED BY DROWNING AND HELPING TO ADVANCE EDUCATION ABOUT PREVENTION ACROSS AMERICA. HELMET YOUR BRAIN ACCORDING TO THE MOST RECENT ARIZONA YOUTH RISK BEHAVIOR SURVEY, 87 PERCENT OF STUDENTS WHO RODE A BICYCLE DURING THE PREVIOUS 12 MONTHS REPORTED THAT THEY NEVER OR RARELY WORE A BICYCLE HELMET. WHILE WEARING A HELMET WON'T PREVENT A CRASH, IT CAN PREVENT LIFE-LONG DISABILITY - OR EVEN DEATH. WEARING A HELMET REDUCES THE RISK OF SERIOUS BRAIN INJURY BY 88 PERCENT. NEARLY HALF OF ALL BIKE-RELATED HOSPITALIZATIONS HAVE A DIAGNOSIS OF TRAUMATIC BRAIN INJURY. THE GOAL OF PHOENIX CHILDREN'S "HELMET YOUR BRAIN" PROGRAM IS TO GET CHILDREN INTO THE HELMET HABIT EARLY. TEACHING CHILDREN ABOUT HELMETS GIVES THEM INFORMATION NEEDED TO MAKE HEALTHIER CHOICES. A "HELMET YOUR BRAIN" PROGRAM BOX AND CURRICULUM IS AVAILABLE FREE TO SCHOOLS AND COMMUNITY ORGANIZATIONS. BICYCLE "DRIVER" EDUCATION MORE THAN 80 PERCENT OF BICYCLE-RELATED FATALITIES INVOLVING CHILDREN UNDER THE AGE OF 14 ARE DUE TO THE BICYCLIST'S BEHAVIOR. BICYCLE "DRIVER" EDUCATION IS SIMILAR TO DRIVER'S EDUCATION, BUT THE VEHICLE IS A BIKE, SKATEBOARD OR SCOOTER. TEACHING CHILDREN HOW TO THINK, BEHAVE

Schedule H (Form 990) 2010

Additional Data

Software ID:
Software Version:

- TIN:

Schedule I
(Form 990)

Department of the Treasury
Internal Revenue Service

Grants and Other Assistance to Organizations,
Governments and Individuals in the United States

Complete if the organization answered "Yes," to Form 990, Part IV, line 21 or 22.
lBullet

Attach to Form 990

OMB No. 1545-0047

2010

Open to Public
Inspection

Name of the organization
Phoenix Children's Hospital

Employer identification number
86-0422559

Part I

General Information on Grants and Assistance

Does the organization maintain records to substantiate the amount of the grants or assistance, the grantees' eligibility for the grants or assistance, and
the selection criteria used to award the grants or assistance? ....................................

Yes No

Describe in Part IV the organization's procedures for monitoring the use of grant funds in the United States.

Part II

Grants and Other Assistance to Governments and Organizations in the United States. Complete if the organization answered "Yes" to
Form 990, Part IV, line 21 for any recipient that received more than $5,000. Check this box if no one recipient received more than $5,000. Use
Part IV and Schedule I-1 (Form 990) if additional space is needed ......................... lBullet

(a) Name and address of organization or government	(b) EIN	(c) IRC Code section if applicable	(d) Amount of cash grant
(1) NATIONAL ASSOCIATION OF CHILDREN'S HOSPITALS INC401 WYTHE ST ALEXANDRIA,VA22314	58-2176067	501(C)(6)	21,126
(2) CELEBRITY FIGHT NIGHT FOUNDATION2111 E HIGHLAND AVE STE 135 PHOENIX,AZ85016	86-0903119	501(C)(3)	18,000
(3) AMERICAN HEART ASSOCIATION710 2ND AVE STE 900 SEATTLE,WA98104	13-5613797	501(C)(3)	13,000
(4) RONALD MCDONALD HOUSE CHARITIES OF PHOENIX501 E ROANOKE AVE PHOENIX,AZ85004	86-0483792	501(C)(3)	5,500
(5) THE WELLNESS COMMUNITY - ARIZONA360 E PALM LN PHOENIX,AZ85004	86-0897810	501(C)(3)	5,500
(6) ARIZONA HEMOPHILIA ASSOCIATION	86-0209257	501(C)(3)	335,000

Enter total number of section 501(c)(3) and government organizations ......................... Bullet Image

Enter total number of other organizations ................................ . Bullet Image

For Privacy Act and Paperwork Reduction Act Notice, see the Instructions for Form 990.

Cat. No. 50055P

Schedule I (Form 990) 2010

Page 2

Part III

Grants and Other Assistance to Individuals in the United States. Complete if the organization answered "Yes" to Form 990, Part IV, line 22.
Use Schedule I-1 (Form 990) if additional space is needed.

(a)Type of grant or assistance	(b)Number of recipients	(c)Amount of cash grant	(d)Amount of non-cash assistance	(e)Method of valuation (book, FMV, appraisal, other)	(f)Description of non-cash assistance

Part IV

Supplemental Information. Complete this part to provide the information required in Part I, line 2, and any other additional information.

Identifier	Return Reference	Explanation
SCHEDULE I, PART I, QUESTION 2	DESCRIPTION OF ORGANIZATION'S PROCEDURES FOR MONITORING THE USE OF GRANTS	PHOENIX CHILDREN'S HOSPITAL RELY ON THE GOVERNANCE PRACTICES OF THE RECIPIENT ORGANIZATIONS TO MONITOR USE OF THE FUNDS.

Schedule I (Form 990) 2010

Additional Data

Software ID:
Software Version:

- TIN:

Schedule J
(Form 990)

Department of the Treasury
Internal Revenue Service

Compensation Information

For certain Officers, Directors, Trustees, Key Employees, and Highest
Compensated Employees
SchJMediumBullet

Complete if the organization answered "Yes" to Form 990,
Part IV, question 23.
SchJMediumBullet

Attach to Form 990. SchJMediumBullet

See separate instructions.

OMB No. 1545-0047

2010

Open to Public Inspection

Name of the organization

Phoenix Children's Hospital

Employer identification number

86-0422559

Part I

Questions Regarding Compensation

Yes

Check the appropiate box(es) if the organization provided any of the following to or for a person listed in Form
990, Part VII, Section A, line 1a. Complete Part III to provide any relevant information regarding these items.

First-class or charter travel Housing allowance or residence for personal use

Travel for companions Payments for business use of personal residence

Tax idemnification and gross-up payments Health or social club dues or initiation fees

Discretionary spending account Personal services (e.g., maid, chauffeur, chef)

If any of the boxes in line 1a are checked, did the organization follow a written policy regarding payment or reimbursement orprovision of all the expenses described above? If "No," complete Part III to explain....

Did the organization require substantiation prior to reimbursing or allowing expenses incurred by all
officers, directors, trustees, and the CEO/Executive Director, regarding the items checked in line 1a? ....

Indicate which, if any, of the following the organization uses to establish the compensation of the
organization's CEO/Executive Director. Check all that apply.

Compensation committee Written employment contract

Independent compensation consultant Compensation survey or study

Form 990 of other organizations Approval by the board or compensation committee

During the year, did any person listed in Form 990, Part VII, Section A, line 1a with respect to the filing organization or a related organization:

Receive a severance payment or change-of-control payment? ...............

Yes

Participate in, or receive payment from, a supplemental nonqualified retirement plan? ........

Yes

Participate in, or receive payment from, an equity-based compensation arrangement? ........

If "Yes" to any of lines 4a-c, list the persons and provide the applicable amounts for each item in Part III.

Only 501(c)(3) and 501(c)(4) organizations only must complete lines 5-9.

For persons listed in form 990, Part VII, Section A, line 1a, did the organization pay or accrue any
compensation contingent on the revenues of:

The organization? ...........................

Any related organization? .........................

If "Yes," to line 5a or 5b, describe in Part III.

For persons listed in form 990, Part VII, Section A, line 1a, did the organization pay or accrue any
compensation contingent on the net earnings of:

The organization? ...........................

Any related organization? .........................

If "Yes," to line 6a or 6b, describe in Part III.

For persons listed in Form 990, Part VII, Section A, line 1a, did the organization provide any non-fixed
payments not described in lines 5 and 6? If "Yes," describe in Part III ............

Were any amounts reported in Form 990, Part VII, paid or accured pursuant to a contract that was
subject to the initial contract exception described in Regs. section 53.4958-4(a)(3)? If "Yes," describe
in Part III .............................

If "Yes" to line 8, did the organization also follow the rebuttable presumption procedure described in Regulations section 53.4958-6(c)? .........................

For Privacy Act and Paperwork Reduction Act Notice, see the Intructions for Form 990

Cat. No. 50053T

Schedule J (Form 990) 2010

Page 2

Part II

Officers, Directors, Trustees, Key Employees, and Highest Compensated Employees. Use Schedule J-1 if additional space needed.

For each individual whose compensation must be reported in Schedule J, report compensation from the organization on row (i) and from related organizations, described in the
instructions on row (ii). Do not list any individuals that are not listed on Form 990, Part VII.

Note. The sum of columns (B)(i)-(iii) must equal the applicable column (D) or column (E) amounts on Form 990, Part VII, line 1a.

(A) Name		(B) Breakdown of W-2 and/or 1099-MISC compensation			(C) Retirement and other deferred compensation	(D) Nontaxable benefits	(E) Total of columns (B)(i)-(D)	(F) Compensation reported in prior Form 990 or Form 990-EZ
(A) Name		(i) Base compensation	(ii) Bonus & incentive compensation	(iii) Other reportable compensation	(C) Retirement and other deferred compensation	(D) Nontaxable benefits	(E) Total of columns (B)(i)-(D)
(1) ELIZABETH ZORN MD	(i) (ii)	306,000 0	52,199 0	8,946 0	9,800 0	17,449 0	394,394 0	0 0
(2) ROBERT L MEYER	(i) (ii)	665,000 0	448,875 0	17,103 0	182,659 0	17,809 0	1,331,446 0	0 0
(3) CRAIG MCKNIGHT	(i) (ii)	261,538 0	60,000 0	18,378 0	14,885 0	13,174 0	367,976 0	0 0
(4) DEBRA K PENDERGAST	(i) (ii)	134,952 0	12,244 0	130,516 0	6,069 0	9,387 0	293,168 0	0 0
(5) MURRAY M POLLACK MD	(i) (ii)	444,000 0	194,706 0	81,067 0	9,800 0	11,806 0	741,379 0	0 0
(6) ROBERT SARNECKI	(i) (ii)	232,000 0	97,649 0	13,709 0	32,858 0	15,641 0	391,857 0	0 0
(7) DERRICK E PARKER	(i) (ii)	315,000 0	35,997 0	9,708 0	35,420 0	21,914 0	418,039 0	0 0
(8) BETSY G KUZAS	(i) (ii)	290,769 0	109,434 0	17,034 0	41,309 0	5,464 0	464,010 0	0 0
(9) THOMAS J DIEDERICH	(i) (ii)	260,000 0	109,434 0	16,599 0	49,832 0	18,493 0	454,358 0	0 0
(10) CARMEN L NEUBERGER	(i) (ii)	267,308 0	94,284 0	11,051 0	36,691 0	6,396 0	415,730 0	0 0
(11) EDWARD C TROELL JR	(i) (ii)	166,880 0	54,876 0	115,025 0	15,206 0	2,806 0	354,793 0	0 0
(12) PHILIP ADELSON MD	(i) (ii)	1,004,800 0	32,212 0	10,195 0	9,800 0	23,026 0	1,080,033 0	0 0
(13) JEFFREY M PEARL MD	(i) (ii)	617,620 0	203,563 0	13,615 0	9,800 0	20,588 0	865,187 0	0 0
(14) LEE S SEGAL MD	(i) (ii)	534,200 0	129,251 0	8,540 0	9,800 0	22,459 0	704,250 0	0 0
(15) DAVID SHAFRON MD	(i) (ii)	635,700 0	2,200 0	12,264 0	4,552 0	22,257 0	676,973 0	0 0
(16) DANIEL T CLOUD MD	(i) (ii)	0 0	0 0	68,509 0	0 0	0 0	68,509 0	0 0
(17) SHANE BROPHY	(i) (ii)	153,750 0	125,667 0	16,419 0	16,500 0	4,892 0	317,228 0	0 0
(18) DEBORAH E WESLEY	(i) (ii)	93,870 0	180,974 0	16,612 0	9,876 0	3,963 0	305,296 0	0 0
(19) BRUCE MORGENSTERN MD	(i) (ii)	198,131 0	38,030 0	5,361 0	7,594 0	20,596 0	269,713 0	0 0
(20) RICHARD B TOWBIN MD	(i) (ii)	540,000 0	150,000 0	18,488 0	9,800 0	17,548 0	735,836 0	0 0

Schedule J (Form 990) 2010

Page 3

Part III

Supplemental Information

Complete this part to provide the information, explanation, or descriptions required for Part I, lines 1a, 1b, 4c, 5a, 5b, 6a, 6b, 7, and 8. Also complete this part for any additional information.

Identifier	Return Reference	Explanation
SUPPLEMENTAL COMPENSATION INFORMATION	SCHEDULE J PART I	SEVERANCE PAYMENTS: LINE 4A) DEBRA PENDERGAST RECEIVED SEVERANCE PAY OF $115,385. ED TROELL RECEIVED SEVERANCE PAY OF $56,615. DANIEL CLOUD RECEIVED SEVERANCE PAY OF $68,509. LINE 4B) PHOENIX CHILDREN'S HOSPITAL OFFERS A SUPPLEMENTAL EXECUTIVE RETIREMENT PLAN TO CERTAIN EXECUTIVES OF THE ORGANIZATION. ELIGIBLE PARTICIPANTS ARE SELECTED BY THE BOARD OF DIRECTORS. PARTICIPANT VESTING OCCURS UPON RETIREMENT, DISABILITY BEFORE SEPARATION, INVOLUNTARY SEPARATION (OTHER THAN FOR CAUSE) OR DEATH. THE FOLLOWING INDIVIDUALS PARTICIPATED IN THE SERP PLAN AND HAD DEFERRED CONTRIBUTION DURING 2010: ROBERT MEYER - $172,859 CRAIG MCKNIGHT - $11,746 SHANE BROPHY - $16,500 TOM DIEDERICH - $27,832 BETSY KUZAS - $31,524 CARMEN NEUBERGER - $26,891 DERRICK PARKER - $25,620 DEBRA PENDERGAST - $708 ROBERT SARNECKI - $23,058 ED TROELL - $10,111 DEBRA WESLEY - $6,526 SUPPLEMENTAL COMPENSATION INFORMATION SCHEDULE J - FOOTNOTES ELIZABETH ZORN, MD AND BRUCE MORGENSTERN, MD RECEIVED COMPENSATION FOR MEDICAL SERVICES RENDERED IN THE CAPACITY OF STAFF PHYSICIANS FOR PHOENIX CHILDREN'S HOSPITAL, NOT FOR THEIR DUTIES AS CURRENT OR FORMER BOARD MEMBERS. ROBERT MEYER, CRAIG MCKNIGHT, DEBRA PENDERGAST, MURRAY POLLACK, MD, ROBERT SARNECKI, DERRICK PARKER, BETSY KUZAS, TOM DIEDERICH, CARMEN NEUBERGER, ED TROELL, SHANE BROPHY AND DEBRA WESLEY WERE ELIGIBLE FOR THE EXECUTIVE INCENTIVE PLAN OF PHOENIX CHILDREN'S HOSPITAL IN WHICH ONE OF THE PERFORMANCE MEASURES WAS EARNINGS BEFORE INTEREST, DEPRECIATION AND AMORTIZATION. THIS INCENTIVE PLAN WAS APPROVED BY THE COMPENSATION COMMITTEE.

Schedule J (Form 990) 2010

Additional Data

Software ID:
Software Version:

- TIN:

Schedule K
(Form 990)

Department of the Treasury
Internal Revenue Service

Supplemental Information on Tax Exempt Bonds

Complete if the organization answered "Yes" to Form 990, Part IV, line 24a. Provide descriptions,
explanations, and any additional information in Schedule O (Form 990).
SchKMediumBullet

Attach to Form 990. SchKMediumBullet

See separate instructions.

OMB No. 1545-0047

2010

Open to Public
Inspection

Name of the organization
Phoenix Children's Hospital

Employer identification number
86-0422559

Part I

Bond Issues

(a) Issuer Name		(b) Issuer EIN	(c) CUSIP #	(d) Date Issued	(e) Issue Price	(f) Description of Purpose	(g) Defeased		(h) On Behalf of Issuer		(i) Pool financing
(a) Issuer Name		(b) Issuer EIN	(c) CUSIP #	(d) Date Issued	(e) Issue Price	(f) Description of Purpose	Yes	No	Yes	No	Yes	No
A	ARIZONA HEALTH FACILITIES AUTHORITY	86-0453292	040506KZ9	01-31-2007	350,000,000	CAMPUS EXPANSION-SERIES A & B		X		X		X
B	ARIZONA HEALTH FACILITIES AUTHORITY	86-0453292	040506LB1	01-31-2007	100,000,000	SEE SCHEDULE K, PART V		X		X		X

Part II

Proceeds

	A		B		C		D
	1 Amount of bonds retired. . . . .	0		0
2 Amount of bonds defeased . . . .	0		0
3 Total proceeds of issue . . . .	358,942,335		100,011,884
4 Gross proceeds in reserve funds . .	0		0
5 Capitalized interest from proceeds.	0		0
6 Proceeds in refunding escrow. . . . .	0		85,676,857
7 Issuance costs from proceeds . . .	2,280,950		651,700
8 Credit enhancement from proceeds.	0		0
9 Working capital expenditures from proceeds . .	0		0
10 Capital expenditures from proceeds . .	347,719,050		13,671,443
11 Other spent proceeds . .	0		0
12 Other unspent proceeds. . .	0		0
13 Year of substantial completion . . .	2011		2011
	Yes	No	Yes	No	Yes	No	Yes	No
14 Were the bonds issued as part of a current refunding issue?		X	X
15 Were the bonds issued as part of an advance refunding issue?		X		X
16 Has the final allocation of proceeds been made? . .		X		X
17 Does the organization maintain adequate books and records to support the final allocation of proceeds? .	X		X

Part III

Private Business Use

	A		B		C		D
	Yes	No	Yes	No	Yes	No	Yes	No
1 Was the organization a partner in a partnership, or a member of an LLC, which owned property financed by tax-exempt bonds? . . .		X		X
2 Are there any lease arrangements that may result in private business use of bond-financed property? . . . . .		X		X

For Privacy Act and Paperwork Reduction Act Notice, see the Instructions for Form 990.

Cat. No. 50193E

Schedule K (Form 990) 2010

Page 2

Part III

Private Business Use (Continued)

	A		B		C		D
	Yes	No	Yes	No	Yes	No	Yes	No
3a Are there any management or service contracts that may result in private business use?		X		X
b Are there any research agreements that may result in private business use of bond-financed property? . .		X		X
c Does the organization routinely engage bond counsel or other outside counsel to review any management or service contracts or research agreements relating to the financed property? .		X		X
4 Enter the percentage of financed property used in a private business use by entities other than a section 501(c)(3) organization or a state or local government . . . . . . . . . . . . .	0 %		0 %
5 Enter the percentage of financed property used in a private business use as a result of unrelated trade or business activity carried on by your organization, another section 501(c)(3) organization, or a state or local government .	0 %		0 %
6 Total of lines 4 and 5 . . .. . . . . .	0 %		0 %
7 Has the organization adopted management practices and procedures to ensure the post-issuance compliance of its tax-exempt bond liabilities?	X		X

Part IV

Arbitrage

	A		B		C		D
	Yes	No	Yes	No	Yes	No	Yes	No
1 Has a Form 8038-T, Arbitrage Rebate, Yield Reduction and Penalty in Lieu of Arbitrage Rebate, been filed with respect to the bond issue? . . .		X		X
2 Is the bond issue a variable rate issue?	X		X
3a Has the organization or the governmental issuer entered into a hedge with respect to the bond issue?	X		X
b Name of provider .	BANK OF AMERICA ML		BANK OF AMERICA ML
c Term of hedge . .	32.8		35.
d Was the hedge superintegrated? .		X		X
e Was a hedge terminated? .		X		X
4a Were gross proceeds invested in a GIC? .		X		X
b Name of provider .
c Term of GIC . .
d Was the regulatory safe harbor for establishing the fair market value of the GIC satisfied? .
5 Were any gross proceeds invested beyond an available temporary period? .		X		X
6 Did the bond issue qualify for an exception to rebate? . . .	X		X

Schedule K (Form 990) 2010

Page 3

Part V

Supplemental Information

Complete this part to provide additional information for responses to questions on Schedule K (see instructions).

Identifier	Return Reference	Explanation
SCHEDULE K SUPPLEMENTAL INFORMATION	PART I, LINE B, COLUMN (F) - DESCRIPTION OF PURPOSE	CAMPUS EXPANSION - SERIES C, REFUNDING 11/29/99 AND 2/20/02 BONDS

Schedule K (Form 990) 2010

Additional Data

Software ID:
Software Version:

- TIN:

Schedule L
(Form 990 or 990-EZ)

Department of the Treasury
Internal Revenue Service

Transactions with Interested Persons

Complete if the organization answered
"Yes" on Form 990, Part IV, lines 25a, 25b, 26, 27, 28a, 28b, or 28c,
or Form 990-EZ, Part V lines 38a or 40b.
MediumBullet

Attach to Form 990 or Form 990-EZ. MediumBullet

See separate instructions.

OMB No. 1545-0047

2010

Open to Public Inspection

Name of the organization

Phoenix Children's Hospital

Employer identification number

86-0422559

Part I

Excess Benefit Transactions (section 501(c)(3) and section 501 (c)(4) organizations only).
Complete if the organization answered "Yes" on Form 990, Part IV, line 25a or 25b, or Form 990-EZ, Part V, line 40b.

1(a) Name of disqualified person	(b) Description of transaction	(c) Corrected?
1(a) Name of disqualified person	(b) Description of transaction	Yes	No

Enter the amount of tax imposed on the organization managers or disqualified persons during the year under section 4958. ......................... Bullet Image

Enter the amount of tax, if any, on line 2, above, reimbursed by the organization ....... Bullet Image

Part II

Loans to and/or From Interested Persons.
Complete if the organization answered "Yes" on Form 990, Part IV, line 26, or Form 990-EZ, Part V, line 38a.

(a) Name of interested person and purpose	(b) Loan to or from the organization?		(c)Original principal amount	(d)Balance due	(e) In default?		(f) Approved by board or committee?		(g)Written agreement?
(a) Name of interested person and purpose	To	From	(c)Original principal amount	(d)Balance due	Yes	No	Yes	No	Yes	No






Total ............... $

Part III

Grants or Assistance Benefitting Interested Persons.
Complete if the organization answered "Yes" on Form 990, Part IV, line 27.

(a) Name of interested person	(b)Relationship between interested person and the organization	(c)Amount of grant or type of assistance

For Privacy Act and Paperwork Reduction Act Notice, see the
Instructions for Form 990 or 990-EZ.

Cat. No. 50056A

Schedule L (Form 990 or 990-EZ) 2010

Page 2

Part IV

Business Transactions Involving Interested Persons.
Complete if the organization answered "Yes" on Form 990, Part IV, line 28a, 28b, or 28c.

(a) Name of interested person	(b) Relationship between interested person and the organization	(c) Amount of transaction	(d) Description of transaction	(e) Sharing of organization's revenues?
(a) Name of interested person		(c) Amount of transaction	(d) Description of transaction	Yes	No
(1) JENNIFER M RISPOLI	DAUGHTER OF CEO	61,894	EMPLOYEE OF PCH		No
(2) BRIAN MEYER	SON OF CEO	49,882	EMPLOYEE OF PCH		No

Part V

Supplemental Information

Complete this part to provide additional information for responses to questions on Schedule L (see instructions).

Identifier	Return Reference	Explanation

Schedule L (Form 990 or 990-EZ) 2010

Additional Data

Software ID:
Software Version:

- TIN:

SCHEDULE O
(Form 990 or 990-EZ)

Department of the Treasury
Internal Revenue Service

Supplemental Information to Form 990 or 990-EZ

Complete to provide information for responses to specific questions on
Form 990 or to provide any additional information.
MediumBullet

Attach to Form 990 or 990-EZ.

OMB No. 1545-0047

2010

Open to Public
Inspection

Name of the organization

Phoenix Children's Hospital

Employer identification number

86-0422559

Identifier	Return Reference	Explanation
VOLUNTEERS	FORM 990, PART I, LINE 6	VOLUNTEERS MAKE A DIFFERENCE FOR PATIENTS AND FAMILIES AT PHOENIX CHILDREN'S HOSPITAL (PCH) EVERY DAY BY GIVING THE GIFT OF TIME. THE VOLUNTEERS EACH HAVE SOMETHING UNIQUE TO OFFER AND COME FROM ALL BACKGROUNDS AND WALKS OF LIFE. VOLUNTEERS ARE AN IMPORTANT PART OF PCH'S TEAM THAT PROVIDES THE BEST HOPE, HEALING AND CARE TO CHILDREN AND FAMILIES. EACH WEEK, OVER 500 VOLUNTEERS DONATE THREE TO FOUR HOURS OF SERVICE IN OVER 30 AREAS IN THE HOSPITAL. PCH VOLUNTEERS PLEDGE A MINIMUM OF 100 HOURS AND MUST BE AT LEAST 16 YEARS OF AGE. VOLUNTEERS GO THROUGH THE SAME SCREENING AND ORIENTATION PROCESS AS EMPLOYEES IN TERMS OF APPLICATION, BACKGROUND CHECK, GENERAL HOSPITAL ORIENTATION, HIPAA, CONFIDENTIALITY TRAINING, EXTENSIVE HANDS-ON TRAINING AND ADDITIONAL TRAINING AS NECESSARY FOR DIFFERENT POSITIONS.
PROGRAM SERVICE ACCOMPLISHMENTS	FORM 990, PART III, LINE 4	PCH IS A FULL-SERVICE CHILDRENS HOSPITAL THAT PROVIDES PEDIATRIC INTENSIVE AND CARDIAC CARE, PEDIATRIC SPECIALISTS, NEONATAL SERVICES, GENERAL PEDIATRICS, AND OUTPATIENT SPECIALTY SERVICES. PCH IS ONE OF THE TEN LARGEST FREESTANDING CHILDRENS HOSPITALS IN THE NATION SUSTAINED BY ONE OF THE MOST COMPREHENSIVE ARRAYS OF PEDIATRIC SPECIALISTS IN THE SOUTHWEST. PCH OPERATES AS A FREESTANDING, SPECIALIZED PEDIATRIC HOSPITAL ON A 23-ACRE CAMPUS ON THOMAS ROAD IN PHOENIX, ARIZONA. THE CAMPUS CONSISTS OF A FIVE-STORY, 265,000-SQUARE FOOT PEDIATRIC HOSPITAL (INCLUDING AN EMERGENCY DEPARTMENT), ONE MEDICAL OFFICE BUILDING, ONE OUTPATIENT CLINIC AND TWO OTHER SERVICE BUILDINGS. PCH ALSO OPERATES A 64-BED NEONATAL INTENSIVE CARE UNIT (NICU) IN PHOENIX WITHIN BANNER GOOD SAMARITAN REGIONAL MEDICAL CENTER. AT DECEMBER 31, 2010, PCH HAD 345 LICENSED IN-SERVICE BEDS FOR INTENSIVE CARE, NEONATAL SERVICES AND GENERAL PEDIATRIC CARE. OUTPATIENT PEDIATRIC SPECIALTY SERVICES ARE OFFERED ON THE THOMAS ROAD CAMPUS AND AT THREE SATELLITE OFFICES THROUGHOUT THE METROPOLITAN AREA. THROUGH ITS BROAD RANGE OF SUPERIOR PEDIATRIC SERVICES INCLUDING NEUROLOGY, ENDOCRINOLOGY, CHEMOTHERAPY, CARDIOLOGY AND OTHER MEDICAL SERVICES, PCH HAS PROVIDED A DISTINGUISHED INDEPENDENT HEALTH FACILITY FOR THE CHILDREN OF ARIZONA. PCH DELIVERS ON ITS MISSION TO PROVIDE HOPE, HEALING, AND THE BEST CARE FOR CHILDREN AND FAMILIES BY PROVIDING ACCESS TO THE MOST ADVANCED SPECIALTY AND SUBSPECIALTY PEDIATRIC CARE IN ARIZONA. PCH EXTENDS THIS MISSION BEYOND OUR PATIENT POPULATION BY DELIVERING DIRECT FUNDING, PROGRAM SUPPORT, HEALTHCARE EXPERTISE, AND OTHER RESOURCES TO THE MOST VULNERABLE MEMBERS OF OUR COMMUNITY AND TO THE COMMUNITY AT LARGE. PCH IS ARIZONAS ONLY LICENSED, FREE-STANDING CHILDRENS HOSPITAL AND THUS SERVES THE ENTIRE STATE AND BEYOND. AS SUCH, PCH IS THE SINGLE LARGEST PROVIDER OF PEDIATRIC SERVICES TO LOW-INCOME CHILDREN IN ARIZONA; 53 PERCENT OF PATIENTS ARE MEDICAID BENEFICIARIES. THE FOLLOWING DESCRIBES PCH'S SIX CENTERS OF EXCELLENCE AND OTHER MEDICAL SEVICES. CENTER FOR CANCER AND BLOOD DISORDERS WITH 17 SUBSPECIALTY-TRAINED PHYSICIANS PROVIDING EXPERT CARE IN THE AREAS OF BLOOD AND MARROW TRANSPLANT, NEUROONCOLOGY, HEMATOLOGY, SOLID TUMORS, SURVIVORSHIP, EARLY DRUG DEVELOPMENT AND LIQUID TUMORS, THE CENTER FOR CANCER AND BLOOD DISORDERS IS THE STATE'S ONLY TREATMENT PROGRAM FULLY DEDICATED TO PEDIATRIC PATIENTS. BY THE END OF 2010, THE TOTAL NUMBER OF BLOOD AND MARROW TRANSPLANTS COMPLETED WAS 135. THIS LIFE-SAVING TREATMENT IS OFFERED THROUGH THE HOSPITAL'S OTTOSEN FAMILY BLOOD AND MARROW TRANSPLANT PROGRAM IN COLLABORATION WITH MAYO CLINIC ARIZONA. WHAT'S MORE, THE CENTER FOR CANCER AND BLOOD DISORDERS BEGAN OFFERING OUTPATIENT SERVICES AT THE HOSPITAL'S SPECIALTY AND URGENT CARE - EAST VALLEY CENTER, EASING THE DEMANDS OF TRAVEL FOR PATIENTS AND FAMILIES LIVING IN THAT AREA. THE ONLY LOCATION IN THE STATE TO OFFER PHASE I CLINICAL TRIALS, THE CENTER HAS GROWN TO BECOME ONE OF THE LARGEST PROGRAMS OF ITS KIND IN THE U.S. CHILDREN'S HEART CENTER THE CHILDREN'S HEART CENTER BECAME THE NATION'S FIFTH LARGEST PROGRAM OF ITS KIND WHEN THE STRATEGIC ALLIANCE TRANSACTION UNITED PHOENIX CHILDREN'S AND ST. JOSEPH'S HOSPITAL AND MEDICAL CENTER'S PEDIATRIC PROGRAMS. THE CENTER OFFERS A FULL ARRAY OF RELATED DIAGNOSTIC AND TREATMENT OPTIONS THAT INCLUDE INVASIVE AND NON-INVASIVE CARDIOTHORACIC SERVICES. WITH EXPERTISE IN CARDIAC-SPECIFIC ANESTHESIA AND INTENSIVE CARE, THE GROUP COMPLETED MORE THAN 350 PEDIATRIC HEART SURGERIES IN 2010. HOME TO THE STATE'S ONLY TWO PEDIATRIC-DEDICATED CARDIAC CATHETERIZATION FACILITIES, THE CENTER'S SPACE IN THE NEW TOWER INCLUDES A 24-BED CARDIOVASCULAR INTENSIVE CARE UNIT STAFFED BY SPECIALLY TRAINED PERSONNEL WHO HAVE ACCESS TO CUTTING-EDGE CARDIAC THERAPIES LIKE EXTRACORPOREAL MEMBRANE OXYGENATION (ECMO), A TYPE OF HEART-LUNG BYPASS FOR YOUNG PATIENTS. ADDITIONALLY, THE HEART CENTER HAS RECEIVED CERTIFICATION THROUGH UNOS FOR A PEDIATRIC HEART TRANSPLANT PROGRAM. CENTER FOR PEDIATRIC ORTHOPAEDICS PHOENIX CHILDREN'S CENTER FOR PEDIATRIC ORTHOPAEDICS IS DEDICATED TO OFFERING THE MOST COMPREHENSIVE, STATE-OF-THE-ART CARE FOR CHILDREN WHO HAVE EXPERIENCED MUSCULOSKELETAL INJURY OR ARE LIVING WITH RELATED DISEASES OR CONDITIONS. THE GROUP IS COMPOSED OF SIX FELLOWSHIP-TRAINED PHYSICIANS WHO PROVIDE ORTHOPAEDIC SURGICAL AND NON-SURGICAL CARE THROUGH A VARIETY OF CLINICS TO CHILDREN AND TEENS WITH FRACTURES, HIP DISORDERS, MUSCULAR DYSTROPHY, SPINAL DEFORMITIES AND CLUBFOOT. ALSO, THE PCH SPORTS MEDICINE PROGRAM PROVIDES SURGICAL AND NON-SURGICAL CARE TO YOUNG ATHLETES WHO HAVE EXPERIENCED INJURY DURING PHYSICAL ACTIVITY. THE PROGRAM ALSO ADDED A PRIMARY CARE SPORTS MEDICINE PHYSICIAN TO ITS TEAM WHO, IN ADDITION TO CARING FOR BONE AND JOINT INJURIES, ALSO SPECIALIZES IN TREATING ATHLETES WITH SPORTS-INDUCED CONCUSSION. AS THE CENTER FOR PEDIATRIC ORTHOPAEDICS GROWS, THE GROUP PLANS TO ADD PROGRAMS FOR SPINA BIFIDA, MUSCULOSKELETAL TUMORS, CEREBRAL PALSY AND A GAIT LAB. CHILDREN'S NEUROSCIENCE INSTITUTE IN ADDITION TO THE COMPREHENSIVE CARE IT PROVIDES CHILDREN WITH NEUROLOGICAL AND BEHAVIORAL CONDITIONS, THE CHILDREN'S NEUROSCIENCE INSTITUTE WAS ALSO ACTIVE ON ANOTHER FRONT: RESEARCH. IN 2010, P. DAVID ADELSON, MD, FACS, FAAP, DIRECTOR OF THE INSTITUTE, ALONG WITH OTHER RESEARCHERS, WAS AWARDED A THREE-YEAR GRANT FOR THE DEVELOPMENT OF A BRAIN-COMPUTER INTERFACE, A TECHNOLOGY THAT COULD ONE DAY HELP PATIENTS WITH NEUROLOGICAL DISORDERS USE THE POWER OF THEIR BRAINS TO CREATE MOVEMENT. CNI NEUROLOGISTS JEFFREY BUCHHALTER, MD, PHD, AND RANDA JARRAR, MD, COLLABORATED WITH RESEARCHERS AT ARIZONA STATE UNIVERSITY ON ANOTHER STUDY, "KNOWLEDGE ABOUT EPILEPSY AND CONFIDENCE IN INSTRUCTING STUDENTS WITH EPILEPSY: TEACHERS' RESPONSES TO A NEW SCALE." IN THE STUDY, 91 CURRENT TEACHERS OF A STUDENT WITH EPILEPSY AND 203 TEACHERS IN GENERAL WERE SURVEYED USING A NEW SCALE. AS EXPECTED, MORE KNOWLEDGEABLE TEACHERS EXPRESSED GREATER CONFIDENCE. RESULTS SUGGEST THAT SOME FACTS ABOUT EPILEPSY REQUIRE ADDITIONAL DISSEMINATION TO EDUCATORS. LEVEL 1 PEDIATRIC TRAUMA CENTER TRAUMATIC INJURIES KILL MORE CHILDREN IN ARIZONA BETWEEN THE AGES OF 1 AND 14 THAN ANY OTHER CAUSE. IN RESPONSE TO THIS SOBERING STATISTIC, PHOENIX CHILDREN'S HOSPITAL CREATED ITS AMERICAN COLLEGE OF SURGEONS (ACS)-VERIFIED LEVEL 1 PEDIATRIC TRAUMA CENTER IN 2008, WHERE PHYSICIANS REPRESENTING MORE THAN 12 SUBSPECIALTIES AND OTHER HIGHLY TRAINED MEDICAL PROFESSIONALS STAND AT THE READY TO PROVIDE LIFE-SAVING TREATMENT TO SERIOUSLY INJURED CHILDREN AND TEENS. WHY IS IT SO IMPORTANT TO HAVE THIS IMPORTANT RESOURCE IN ARIZONA? STUDIES HAVE SHOWN CARE AT AN ACS-VERIFIED TRAUMA CENTER LIKE PHOENIX CHILDREN'S LOWERS A CHILD'S RISK OF DEATH BY 25 PERCENT. SIMPLY, IT'S A BETTER OPTION THAT SAVES MORE LIVES. THE TRAUMA TEAM AT PHOENIX CHILDREN'S, UNDER THE LEADERSHIP OF DR. DAVID NOTRICA, HAS BEEN BUSY DOING JUST THAT: SAVING LIVES. BETWEEN ITS JULY 2008 OPENING AND THE END OF 2010, PHOENIX CHILDREN'S SAW MORE THAN 3,500 TRAUMA PATIENTS. IN 2010 ALONE, THE HOSPITAL REPORTED 1,414 TRAUMA CASES. NEARLY A QUARTER OF THOSE PATIENTS WERE BROUGHT TO PHOENIX CHILDREN'S FROM OUTSIDE MARICOPA COUNTY. THE PHOENIX CHILDREN'S LEVEL 1 PEDIATRIC TRAUMA CENTER IS A VITAL REGIONAL RESOURCE. NEWBORN INTENSIVE CARE UNIT OFFERING 143 LICENSED BEDS, PHOENIX CHILDREN'S NEWBORN INTENSIVE CARE UNIT IS THE LARGEST FACILITY OF ITS KIND IN ARIZONA AND AMONG THE LARGEST IN THE NATION. LAST YEAR ALONE, THE NICU SERVED 1,297 LITTLE PATIENTS - SOME BORN AS MANY AS 16 WEEKS EARLY - WHO REQUIRED CARE FOR RESPIRATORY DISTRESS SYNDROME, HEART PROBLEMS, IMMATURE SKIN AND EYES AND UNDER-DEVELOPED DIGESTIVE AND NEUROLOGICAL SYSTEMS. EARLY ARRIVALS AREN'T THE ONLY ONES WHO ARE TREATED IN THE NICU; BABIES WHO ARE BORN FULL-TERM, BUT WITH INFECTION, CONGENITAL BIRTH DEFECTS, IN-UTERO DRUG EXPOSURE OR COMPLICATIONS FROM TRAUMATIC BIRTH ALSO HAVE ACCESS TO THE CUTTING-EDGE CARE PROVIDED BY THE NICU TEAM. FOR INFANTS WHO HAVE SUFFERED BIRTH-RELATED OXYGEN DEPRIVATION, THE HOSPITAL IS HOME TO THE ONE OF ONLY TWO COMPREHENSIVE NEURO-NICU'S IN THE COUNTRY, WHERE THEY ARE MONITORED BY HIGHLY SOPHISTICATED EQUIPMENT AND TREATED WITH A STATE-OF-THE-ART WHOLE BODY COOLING SYSTEM, WHICH GREATLY REDUCE THE CHANCES THESE INFANTS WILL DEVELOP CONDITIONS LIKE CEREBRAL PALSY, MENTAL RETARDATION AND OTHER INTELLECTUAL OR PHYSICAL DEFICIENCIES.
OTHER MAJOR MEDICAL SERVICES		DOCTORS AND NURSES ARE VITAL COMPONENTS OF THE PERSONALIZED CARE TEAM PHOENIX CHILDREN'S PROVIDES EACH OF ITS CHILDREN. EQUALLY IMPORTANT TO THE HOSPITAL'S PHILOSOPHY OF CARE IS THE FAMILY: MOTHERS, FATHERS, SIBLINGS, GRANDPARENTS AND OTHER MEMBERS OF A FAMILY'S SUPPORT SYSTEM. IT'S THOSE FAMILY MEMBERS WHO ARE THE PRIMARY CAREGIVERS AND PROVIDE THE STRENGTH AND SUPPORT REQUIRED TO HELP OUR YOUNG PATIENTS RECOVER FROM ILLNESS AND INJURY. THEY PARTNER WITH THE HOSPITAL'S TEAM TO HELP DEVELOP A PLAN OF TREATMENT THAT BEST FITS THEIR PERSONAL SITUATIONS. THE HOSPITAL ALSO UNDERSTANDS THOSE FAMILY MEMBERS HAVE NEEDS, TOO. AND FOR THAT REASON PHOENIX CHILDREN'S - THROUGH ITS PATIENT AND FAMILY SERVICES DEPARTMENT - OFFERS A COMPREHENSIVE SUPPORT NETWORK FOR THE ENTIRE FAMILY THROUGH SOCIAL WORK, CHAPLAINCY AND CHILD LIFE, THE LATTER A PROGRAM DEVELOPED RIGHT HERE AT PHOENIX CHILDREN'S HOSPITAL THAT HELPS PATIENTS AND OFTEN THEIR SIBLINGS COPE EMOTIONALLY AND PHYSICALLY DURING THEIR HOSPITAL STAY BY PROVIDING AGE APPROPRIATE EDUCATION. PATIENTS GAIN A MEASURE OF CONTROL OVER THEIR OWN CARE BY LEARNING ABOUT IT THROUGH PLAY. ROUNDING OUT THE CARE TEAM ARE COMPASSIONATE AND CARING MEMBERS OF THE COMMUNITY, OUR VOLUNTEERS, WHO MAKE AN INDELIBLE DIFFERENCE IN THE LIVES OF OUR CHILDREN, FAMILIES AND STAFF. WHETHER THEY'RE ESCORTING A FAMILY TO ONE OF OUR CLINICS, SERVING AS A CANDY STRIPER OR ENTERTAINING CHILDREN IN ONE OF THE PLAYROOMS, PHOENIX CHILDREN'S VOLUNTEERS ARE THERE TO OFFER ANOTHER LEVEL OF COMFORT AND CARE. THE HOSPITAL'S PHILOSOPHY OF FAMILY-CENTERED CARE IS ALSO ONE OF THE MOTIVATIONS BEHIND ITS ALLIANCE WITH ST. JOSEPH'S HOSPITAL AND MEDICAL CENTER. THE UNIFICATION OF THESE PEDIATRIC PROGRAMS - WHOSE MISSIONS AND VISIONS SO CLOSELY ALIGN - FORTIFIES PHOENIX CHILDREN'S COMMITMENT TO DELIVER ON ITS PROMISE TO PROVIDE HOPE, HEALING AND THE BEST HEALTH CARE TO ARIZONA'S CHILDREN AND FAMILIES. PHOENIX CHILDREN'S OFFERS WORLD-CLASS CARE IN MORE THAN 40 SUB-SPECIALTY FIELDS OF PEDIATRIC MEDICINE, INCLUDING 6 CENTERS OF EXCELLENCE. LAST YEAR, PHOENIX CHILDREN'S HAD 11,378 ADMISSIONS; 57,140 VISITS TO THE EMERGENCY DEPARTMENT; 123,759 OUTPATIENT PHYSICIAN VISITS; AND 12,164 SURGICAL PROCEDURES. ARIZONA'S POPULATION GROWTH MEANS PHOENIX CHILDREN'S MUST GROW, TOO. THE HOSPITAL IS EXPANDING TO ADD MORE PHYSICIANS, BUILD NEW CLINICAL PROGRAMS, AND INCREASE THE NUMBER OF LICENSED BEDS TO 626 AT FULL BUILD OUT. THE CENTERPIECE OF THE EXPANSION IS AN 11-STORY TOWER THAT OPENS IN 2011. PHOENIX CHILDREN'S HAS ARIZONA'S ONLY DEDICATED PEDIATRIC DIALYSIS CENTER AND PEDIATRIC KIDNEY TRANSPLANT PROGRAM. PHOENIX CHILDREN'S HOSPITAL HAS 183 ICU BEDS, ONE OF THE LARGEST AMONG ALL FREESTANDING CHILDREN'S HOSPITALS IN THE COUNTRY, AND ONE OF ONLY A HANDFUL IN THE U.S. PERFORMING THE EXTRACORPOREAL MEMBRANE OXYGENATION (ECMO) PROCEDURE. PHOENIX CHILDREN'S HAS THE FIRST AND ONLY PEDIATRIC RADIOLOGY FELLOWSHIP PROGRAM IN ARIZONA. WHEN THE NEW TOWER IS COMPLETE, THE DIVISION OF RADIOLOGY WILL OCCUPY 45,000 SQUARE FEET OF THE FIRST FLOOR. PHOENIX CHILDREN'S OPERATES TWO SPECIALTY AND URGENT CARE CENTERS, ONE IN THE EAST VALLEY AND ONE IN THE NORTHWEST VALLEY. THE HOSPITAL WILL CONTINUE TO SPREAD ITS SPECIAL BRAND OF CARE ACROSS THE VALLEY WHEN WORK BEGINS ON ANOTHER FACILITY IN THE WEST VALLEY CITY OF AVONDALE. IN JANUARY OF THIS YEAR, PHOENIX CHILDREN'S WELCOMED THE STATE'S ONLY BOARD-CERTIFIED PEDIATRIC TRANSPLANT HEPATOLOGIST. APPROXIMATELY 60 PERCENT OF PHOENIX CHILDREN'S PATIENTS ARE COVERED BY AHCCCS, ARIZONA'S MEDICAID PROGRAM FOR LOW-INCOME FAMILIES. THE TRACHEOTOMY AND AIRWAY PROGRAM IS THE ONLY COMPREHENSIVE INPATIENT AND OUTPATIENT SERVICE IN ARIZONA THAT CARES FOR CHILDREN WITH TRACHEOSTOMIES AND HOME VENTILATORS. CENTERS OF EXCELLENCE A SIGNED MEMORANDUM OF UNDERSTANDING WITH ST. JOSEPH'S HOSPITAL AND MEDICAL CENTER RESULTED IN A GROUNDBREAKING STRATEGIC ALLIANCE THAT WILL FORTIFY SEVERAL PHOENIX CHILDREN'S PROGRAMS, INCLUDING THE CHILDREN'S HEART CENTER, WHICH WILL MAKE IT ONE OF THE LARGEST PROGRAMS OF ITS KIND IN THE U.S. THE CENTER FOR CANCER AND BLOOD DISORDERS AT PHOENIX CHILDREN'S HOSPITAL IS THE LARGEST PEDIATRIC PROVIDER OF HEMATOLOGY AND ONCOLOGY SERVICES IN ARIZONA, AND IS THE ONLY FREESTANDING PEDIATRIC HOSPITAL IN THE STATE WITH A BLOOD AND MARROW TRANSPLANT PROGRAM, A COLLABORATION WITH MAYO CLINIC ARIZONA. THE CENTER IS THE ONLY LOCATION IN ARIZONA WHERE CHILDREN LIVING WITH CANCER CAN PARTICIPATE IN PHASE I CLINICAL TRIALS, GIVING THEM ACCESS TO THE LATEST BREAKTHROUGH THERAPIES. IN 2010, A GROUP OF RESEARCHERS, INCLUDING P. DAVID ADELSON, MD, DIRECTOR OF THE HOSPITAL'S CHILDREN'S NEUROSCIENCE INSTITUTE (CNI), WAS AWARDED A THREE-YEAR GRANT TOTALING NEARLY $470,000 FOR THE DEVELOPMENT OF A BRAIN-COMPUTER INTERFACE. THE GRANT SUPPORTS FURTHER RESEARCH INTO COMPUTER TECHNOLOGY THAT CAN HELP PATIENTS WITH NEUROLOGICAL DISORDERS USE THE POWER OF THEIR BRAIN TO CREATE MOVEMENT. IT REPRESENTS ONLY ONE OF THE MANY STUDIES IN WHICH CNI PHYSICIANS ARE INVOLVED. PHOENIX CHILDREN'S NEWBORN INTENSIVE CARE UNIT (NICU) SERVED 1,297 BABIES LAST YEAR. IN TOTAL, PHOENIX CHILDREN'S NOW HAS 143 LICENSED NICU BEDS. IT IS ALSO HOME TO A COMPREHENSIVE NEURO-NICU, ONE OF ONLY TWO FACILITIES OF ITS KIND IN THE U.S. WHICH PROVIDES LIFE-SAVING TREATMENT TO NEWBORNS WHO HAVE SUFFERED BIRTH-RELATED BRAIN INJURY. THE HOSPITAL'S CENTER FOR PEDIATRIC ORTHOPAEDIC SURGERY IS A STATEWIDE REFERRAL CENTER FOR CHILD AND ADOLESCENT MUSCULOSKELETAL PROBLEMS. THESE MAY INCLUDE SPINAL DEFORMITY AND SCOLIOSIS, LEG-LENGTH DISCREPANCY, INFECTIONS, MUSCULOSKELETAL ONCOLOGY, AND THOSE RELATED TO MUSCULAR DYSTROPHY AND CEREBRAL PALSY. THE HOSPITAL'S LEVEL 1 PEDIATRIC TRAUMA CENTER EXCLUSIVELY FOR CHILDREN TREATED 1,415 KIDS IN 2010. IT IS THE ONLY ONE OF ITS KIND IN THE STATE AND ONE OF ONLY 18 SUCH CENTERS IN THE UNITED STATES.
PROCESS USED BY ORGANIZATION TO REVIEW FORM 990	FORM 990, PART VI, LINE 11	THE FORM 990, IN DRAFT FORM, WAS PROVIDED FOR REVIEW TO THE FINANCE COMMITTEE. PRIOR TO BEING PRESENTED TO THE FINANCE COMMITTEE, THE RETURN WAS REVIEWED BY THE VP OF FINANCE AND CFO. THE FINAL VERSION IS DISTRIBUTED TO BOARD MEMBERS PRIOR TO FILING WITH THE IRS.
PROCESS USED TO MONITOR AND ENFORCE THE CONFLICT OF INTEREST POLICY	FORM 990, PART VI, LINE 12C	PCH AND ITS AFFILIATE ORGANIZATIONS REQUIRES EACH OF ITS DIRECTORS, OFFICERS, AND VICE PRESIDENTS TO COMPLETE AN ANNUAL DISCLOSURE FORM, IDENTIFYING REAL OR POTENTIAL CONFLICTS, SUCH AS FINANCIAL RELATIONSHIPS OR INTERESTS, FAMILY OR BUSINESS ASSOCIATIONS OR EMPLOYEE RELATIONSHIPS WITH PCH AND/OR ITS DIRECTORS, OFFICERS AND KEY EMPLOYEES. IF SITUATIONS ARE DISCLOSED THAT PRESENT ACTUAL OR POTENTIAL CONFLICTS OF INTEREST, THEY ARE REPORTED TO THE CEO AND THE BOARD OF DIRECTORS. RESOLUTION AND/OR AVOIDANCE OF CONFLICT OF INTEREST SITUATIONS RESIDES WITH THE BOARD AND THE CEO.
PROCESS USED TO DETERMINE COMPENSATION OF CEO AND OTHER OFFICERS	FORM 990, PART VI, LINES 15A AND 15B	PCH USES THE SERVICES OF AN OUTSIDE COMPENSATION CONSULTING FIRM TO MAKE MARKET COMPARISONS OF COMPENSATION, INCLUDING BOTH BASE SALARY AND INCENTIVE PROGRAMS. THESE PLANS ARE REVIEWED WITH AND ULTIMATELY APPROVED BY THE BOARD OF DIRECTORS' COMPENSATION COMMITTEE. AFTER COMPLETION OF THE YEAR END AUDIT, THE COMPENSATION COMMITTEE MEETS TO EVALUATE PERFORMANCE OF THE CEO AND KEY EXECUTIVES AND TO APPROVE THE RECOMMENDATION OF THE VP OF HUMAN RESOURCES AND THE CEO, BASED ON THE CRITERIA IN THE PREVIOUSLY APPROVED PLAN. THIS PROCESS WAS LAST COMPLETED IN 2010.
AVAILABILITY OF GOVERNING DOCUMENTS, CONFLICT OF INTEREST POLICY,	AND FINANCIAL STATEMENTS TO THE PUBLIC	FORM 990, PART VI, LINE 19 SUCH DOCUMENTS ARE NOT REQUIRED TO BE MADE AVAILABLE; HOWEVER, THEY WILL BE PROVIDED UPON REASONABLE REQUEST.
PAYMENTS TO INDEPENDENT CONTRACTORS	FORM 990, PART VII, SECTION B	THE PAYMENTS TO KITCHELL INCLUDE PAYMENTS FOR GOODS AND MATERIALS THAT COULD NOT BE SPLIT OUT FROM THE PAYMENTS FOR SERVICES.
OTHER CHANGES IN NET ASSETS OR FUND BALANCES	FORM 990, PART XI, LINE 5	MARK TO MARKET ADJUSTMENT ON INTEREST RATE SWAPS (16,731,874) UNREALIZED GAINS ON INVESTMENTS 7,808,248 TEMP RESTR DONATIONS AND CONTRIBUTIONS 3,883,000 NET ASSETS RELEASED FROM RESTRICTION (3,543,000) ROUNDING 96 -------------------------- OTHER CHANGES IN NET ASSETS (8,583,530) ==========================
SIGNIFICANT PROGRAMS UNDERTAKEN DURING THE YEAR	PART III, LINE 2	THE UNIVERSITY OF ARIZONA COLLEGE OF MEDICINE - PHOENIX AND PHOENIX CHILDREN'S HOSPITAL ANNOUNCED IN AUGUST 2010 AN AGREEMENT TO EXPAND THEIR AFFILIATION, A MOVE DESIGNED IN PART TO ADDRESS ARIZONA'S SEVERE SHORTAGE OF PEDIATRICIANS. UNDER THE AGREEMENT, THE UA COLLEGE OF MEDICINE - PHOENIX DESIGNATES THE HOSPITAL AS ITS PRINCIPAL PEDIATRIC AFFILIATE WHILE THE HOSPITAL NAMES THE UNIVERSITY AS ITS PRINCIPAL ACADEMIC AFFILIATE. THIS ARRANGEMENT ADDS MEDICAL RESIDENCIES TO A STATE DESPERATELY IN NEED OF THEM. ARIZONA'S RATIO OF MEDICAL RESIDENTS TO ITS POPULATION IS AMONG THE LOWEST IN THE UNITED STATES YET THE STATE HAS ONE OF THE FASTEST GROWING PEDIATRIC POPULATIONS IN THE COUNTRY. THE TWO ENTITIES ALSO PLAN TO PARTNER ON A VARIETY OF RESEARCH PROJECTS AIMED AT PREVENTING, TREATING AND CURING CHILDHOOD DISEASES AND INJURIES.

For Paperwork Reduction Act Notice, see the Instructions for Form 990 or 990-EZ.

Cat. No. 51056K

Schedule O (Form 990 or 990-EZ) 2010

Additional Data

Software ID:
Software Version:

- TIN:

SCHEDULE R
(Form 990)

Department of the Treasury
Internal Revenue Service

Related Organizations and Unrelated Partnerships

Complete if the organization answered "Yes" to Form 990, Part IV, line 33, 34, 35, 36, or 37.
MediumBullet

Attach to Form 990. MediumBullet

See separate instructions.

OMB No. 1545-0047

2010

Open to Public Inspection

Name of the organization

Phoenix Children's Hospital

Employer identification number

86-0422559

Part I

Identification of Disregarded Entities (Complete if the organization answered "Yes" on Form 990, Part IV, line 33.)

(a) Name, address, and EIN of disregarded entity	(b) Primary activity	(c) Legal domicile (state or foreign country)	(d) Total income	(e) End-of-year assets	(f) Direct controlling entity

Part II

Identification of Related Tax-Exempt Organizations (Complete if the organization answered "Yes" on Form 990, Part IV, line 34 because it had one or more related tax-exempt organizations during the tax year.)

(a) Name, address, and EIN of related organization	(b) Primary activity	(c) Legal domicile (state or foreign country)	(d) Exempt Code section	(e) Public charity status (if section 501(c)(3))	(f) Direct controlling entity	(g) Section 512(b)(13) controlled organization
(a) Name, address, and EIN of related organization	(b) Primary activity	(c) Legal domicile (state or foreign country)	(d) Exempt Code section	(e) Public charity status (if section 501(c)(3))	(f) Direct controlling entity	Yes	No
(1) PHOENIX CHILDREN'S HOSPITAL FOUNDATION 1919 E THOMAS ROAD PHOENIX,AZ85016 74-2421549	SUPPORT	AZ	501(C)(3)	7	PCH
(2) CAMBRIDGE ARIZONA INSURANCE COMPANY 333 EAST OSBORN ROAD SUITE 300 PHOENIX,AZ85012 26-1756912	INSURANCE	AZ	501(C)(3)	11A - I	PCH

For Privacy Act and Paperwork Reduction Act Notice, see the Instructions for Form 990.

Cat. No. 50135Y

Schedule R (Form 990) 2010

Page 2

Part III

Identification of Related Organizations Taxable as a Partnership (Complete if the organization answered "Yes" on Form 990, Part IV, line 34 because it had one or more related organizations treated as a partnership during the tax year.)

(a) Name, address, and EIN of related organization	(b) Primary activity	(c) Legal domicile (state or foreign country)	(d) Direct controlling entity	(f) Share of total income	(g) Share of end-of-year assets	(h) Disproprtionate allocations?		(i) Code VUBI amount in box 20 of Schedule K-1 (Form 1065)	(j) General or managing partner?
(a) Name, address, and EIN of related organization	(b) Primary activity	(c) Legal domicile (state or foreign country)	(d) Direct controlling entity	(f) Share of total income	(g) Share of end-of-year assets	Yes	No	(i) Code VUBI amount in box 20 of Schedule K-1 (Form 1065)	Yes	No

Part IV

Identification of Related Organizations Taxable as a Corporation or Trust (Complete if the organization answered "Yes" on Form 990, Part IV, line 34 because it had one or more related organizations treated as a corporation or trust during the tax year.)

(a) Name, address, and EIN of related organization	(b) Primary activity	(c) Legal domicile (state or foreign country)	(d) Direct controlling entity	(e) Type of entity (C corp, S corp, or trust)	(f) Share of total income	(g) Share of end-of-year assets	(h) Percentage ownership

Schedule R (Form 990) 2010

Page 3

Part V

Transactions With Related Organizations (Complete if the organization answered "Yes" on Form 990, Part IV, line 34, 35, 35A, or 36.)

Note. Complete line 1 if any entity is listed in Parts II, III or IV.

Yes

1 During the tax year, did the orgranization engage in any of the following transactions with one or more related organizations listed in Parts II-IV?

a Receipt of (i) interest (ii) annuities (iii) royalties (iv) rent from a controlled entity . . . . . . . . . . . . . . . . . . . . . . .

b Gift, grant, or capital contribution to other organization(s) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

c Gift, grant, or capital contribution from other organization(s) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Yes

d Loans or loan guarantees to or for other organization(s) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

e Loans or loan guarantees by other organization(s) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

f Sale of assets to other organization(s) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

g Purchase of assets from other organization(s) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

h Exchange of assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

i Lease of facilities, equipment, or other assets to other organization(s) . . . . . . . . . . . . . . . . . . . . . . . . . . . .

j Lease of facilities, equipment, or other assets from other organization(s) . . . . . . . . . . . . . . . . . . . . . . . . . . .

k Performance of services or membership or fundraising solicitations for other organization(s) . . . . . . . . . . . . . . . . . . . . . .

l Performance of services or membership or fundraising solicitations by other organization(s) . . . . . . . . . . . . . . . . . . . . . .

Yes

m Sharing of facilities, equipment, mailing lists, or other assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

n Sharing of paid employees . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Yes

o Reimbursement paid to other organization for expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

p Reimbursement paid by other organization for expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Yes

q Other transfer of cash or property to other organization(s) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Yes

r Other transfer of cash or property from other organization(s) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

If the answer to any of the above is "Yes," see the instructions for information on who must complete this line, including covered relationships and transaction thresholds.

(a) Name of other organization	(b) Transaction type(a-r)	(c) Amount involved
(1) Phoenix Children's Hospital Foundation	C	4,762,248
(2) Phoenix Children's Hospital Foundation	N	2,627,606
(3) Phoenix Children's Hospital Foundation	P	5,841,426
(4) Cambridge Arizona Insurance Company	Q	3,675,171
(5)
(6)

Schedule R (Form 990) 2010

Page 4

Part VI

Unrelated Organizations Taxable as a Partnership (Complete if the organization answered "Yes" on Form 990, Part IV, line 37.)

Provide the following information for each entity taxed as a partnership through which the organization conducted more than five percent of its activities (measured by total assets or gross revenue) that was not a related organization. See instructions regarding exclusion for certain investment partnerships.

(a) Name, address, and EIN of entity	(b) Primary activity	(c) Legal domicile (state or foreign country)	(d) Are all partners section 501(c)(3) organizations?		(e) Share of end-of-year assets	(f) Disproprtionate allocations?		(g) Code VUBI amount in box 20 of Schedule K-1 (Form 1065)	(h) General or managing partner?
(a) Name, address, and EIN of entity	(b) Primary activity	(c) Legal domicile (state or foreign country)	Yes	No	(e) Share of end-of-year assets	Yes	No	(g) Code VUBI amount in box 20 of Schedule K-1 (Form 1065)	Yes	No

Schedule R (Form 990) 2010

Page 5

Part VII

Supplemental Information

Complete this part to provide additional information for responses to questions on Schedule R (see instructions).

Identifier	Return Reference	Explanation

Additional Data

Software ID:
Software Version:

1	Briefly describe the organization’s mission or most significant activities: WE PROVIDE HOPE, HEALING AND THE BEST HEALTHCARE FOR CHILDREN AND THEIR FAMILIES.
2	Check this box
3	Number of voting members of the governing body (Part VI, line 1a) ....	3	15
4	Number of independent voting members of the governing body (Part VI, line 1b) ....	4	13
5	Total number of individuals employed in calendar year 2010 (Part V, line 2a) ...	5	3,085
6	Total number of volunteers (estimate if necessary) ....	6	510
7a	Total unrelated business revenue from Part VIII, column (C), line 12 ..	7a	0
b	Net unrelated business taxable income from Form 990-T, line 34 ..	7b	0

		Prior Year	Current Year
8	Contributions and grants (Part VIII, line 1h) .........	12,009,927	16,773,949
9	Program service revenue (Part VIII, line 2g) .........	392,461,328	405,995,367
10	Investment income (Part VIII, column (A), lines 3, 4, and 7d ) ....	6,526,403	2,827,659
11	Other revenue (Part VIII, column (A), lines 5, 6d, 8c, 9c, 10c, and 11e)	0	0
12	Total revenue—add lines 8 through 11 (must equal Part VIII, column (A), line 12)...................	410,997,658	425,596,975
13	Grants and similar amounts paid (Part IX, column (A), lines 1–3 )...	0	411,701
14	Benefits paid to or for members (Part IX, column (A), line 4) ....	0	0
15	Salaries, other compensation, employee benefits (Part IX, column (A), lines 5–10)	225,811,742	223,005,576
16a	Professional fundraising fees (Part IX, column (A), line 11e)....	0	0
b	Total fundraising expenses (Part IX, column (D), line 25) 0
17	Other expenses (Part IX, column (A), lines 11a–11d, 11f–24f)....	182,489,438	190,235,063
18	Total expenses. Add lines 13–17 (must equal Part IX, column (A), line 25)	408,301,180	413,652,340
19	Revenue less expenses. Subtract line 18 from line 12......	2,696,478	11,944,635
		Beginning of Current Year	End of Year
20	Total assets (Part X, line 16)............	825,955,781	850,506,825
21	Total liabilities (Part X, line 26)............	588,177,022	609,366,961
22	Net assets or fund balances. Subtract line 21 from line 20 .....	237,778,759	241,139,864

Sign Here

	Signature of officer	Date

	Type or print name and title.

Paid Preparer's Use Only	Preparer's signature	Date	Check if self- employed	Preparer’s taxpayer identification number (see instructions)
	Firm’s name (or yours if self-employed), address, and ZIP + 4			EIN
				Phone no.


4a	(Code: ) (Expenses $ 341,563,366 including grants of $ ) (Revenue $ 405,995,367 )
	SEE SCHEDULE O

4b	(Code: ) (Expenses $ including grants of $ ) (Revenue $ )












4c	(Code: ) (Expenses $ including grants of $ ) (Revenue $ )












4d	Other program services. (Describe in Schedule O.)
	(Expenses $ including grants of $ ) (Revenue $ )
4e	Total program service expenses$ 341,563,366

1b	Sub-Total................
c	Total from continuation sheets to Part VII, Section A....
d	Total (add lines 1b and 1c)............	9,862,256	0	787,918

				(A) Total revenue	(B) Related or exempt function revenue	(C) Unrelated business revenue	(D) Revenue excluded from tax under sections 512, 513, or 514
1a	Federated campaigns..1a
b	Membership dues....1b
c	Fundraising events....1c
d	Related organizations...1d		16,773,949
e	Government grants (contributions)1e

f	All other contributions, gifts, grants, and similar amounts not included above1f
g	Noncash contributions included in lines 1a-1f:$
h	Total. Add lines 1a-1f.......			16,773,949
			Business Code
2a	NET PATIENT SERVICE REVENUE		622,110	400,121,646	400,121,646
b	OTHER OPERATING REVENUE		900,099	3,951,791	3,951,791
c	RESEARCH REVENUE		541,700	1,921,930	1,921,930
d
e
f	All other program service revenue .
g	Total. Add lines 2a–2f........			405,995,367
3	Investment income (including dividends, interest
	and other similar amounts).....			2,513,816			2,513,816
4	Income from investment of tax-exempt bond proceeds..			0
5	Royalties............			0
		(i) Real	(ii) Personal
6a	Gross Rents
b	Less: rental expenses
c	Rental income or (loss)
d	Net rental income or (loss).......
		(i) Securities	(ii) Other
7a	Gross amount from sales of assets other than inventory	89,028,644
b	Less: cost or other basis and sales expenses	88,671,881	42,921
c	Gain or (loss)	356,763	-42,921
d	Net gain or (loss)..........			313,843			313,843
8a	Gross income from fundraising events (not including $ of contributions reported on line 1c). See Part IV, line 18 ...
	a
b	Less: direct expenses ...b
c	Net income or (loss) from fundraising events..			0
9a	Gross income from gaming activities. See Part IV, line 19 ...
	a
b	Less: direct expenses ...b
c	Net income or (loss) from gaming activities...			0
10a	Gross sales of inventory, less returns and allowances .
	a
b	Less: cost of goods sold ..b
c	Net income or (loss) from sales of inventory..			0
Miscellaneous Revenue			Business Code
11a
b
c
d	All other revenue ....
e	Total. Add lines 11a–11d ......			0
12	Total revenue. See Instructions....			425,596,975	405,995,367	0	2,827,659


				(A) Beginning of year		(B) End of year
1	Cashnon-interest-bearing ..........			85,559,618	1	90,351,774
2	Savings and temporary cash investments .......			9,843,866	2	1,002,128
3	Pledges and grants receivable, net .........				3
4	Accounts receivable, net .........			54,700,366	4	48,812,684
5	Receivables from current and former officers, directors, trustees, key employees, and highest compensated employees. Complete Part II of
	Schedule L ..........				5
6	Receivables from other disqualified persons (as defined under section 4958(f)(1)) and persons described in section 4958(c)(3)(B). Complete Part II of
	Schedule L ..........				6
7	Notes and loans receivable, net .............				7
8	Inventories for sale or use ..............			5,251,266	8	5,385,165
9	Prepaid expenses and deferred charges ............			7,030,389	9	6,599,547
10a	Land, buildings, and equipment: cost or other basis. Complete Part VI of Schedule D	10a	690,379,351
b	Less: accumulated depreciation. .....	10b	112,495,545	448,266,531	10c	577,883,806
11	Investments—publicly traded securities ..........			177,488,708	11	42,323,127
12	Investments—other securities. See Part IV, line 11 ......			14,856,478	12	0
13	Investments—program-related. See Part IV, line 11 ..				13
14	Intangible assets .........			0	14	0
15	Other assets. See Part IV, line 11 ...........			22,958,559	15	78,148,594
16	Total assets. Add lines 1 through 15 (must equal line 34)...			825,955,781	16	850,506,825
17	Accounts payable and accrued expenses .			71,406,824	17	68,088,724
18	Grants payable ..........				18
19	Deferred revenue ..........			1,070,753	19	1,093,039
20	Tax-exempt bond liabilities ..........			450,000,000	20	450,000,000
21	Escrow or custodial account liability. Complete Part IV of Schedule D..				21
22	Payables to current and former officers, directors, trustees, key employees, highest compensated employees, and disqualified
	persons. Complete Part II of Schedule L..........				22
23	Secured mortgages and notes payable to unrelated third parties ..			1,447,381	23	595,456
24	Unsecured notes and loans payable to unrelated third parties ....			5,000,000	24	0
25	Other liabilities. Complete Part X of Schedule D.....			59,252,064	25	89,589,742
26	Total liabilities. Add lines 17 through 25.....			588,177,022	26	609,366,961
	Organizations that follow SFAS 117, check here and complete lines 27 through 29, and lines 33 and 34.
27	Unrestricted net assets .....			234,211,935	27	237,232,943
28	Temporarily restricted net assets .....			3,566,824	28	3,906,921
29	Permanently restricted net assets .....				29
	Organizations that do not follow SFAS 117, check here and complete lines 30 through 34.
30	Capital stock or trust principal, or current funds .....				30
31	Paid-in or capital surplus, or land, building or equipment fund .....				31
32	Retained earnings, endowment, accumulated income, or other funds				32
33	Total net assets or fund balances .....			237,778,759	33	241,139,864
34	Total liabilities and net assets/fund balances .....			825,955,781	34	850,506,825