Attach to Form 990 or Form 990-EZ.
Information about Schedule A (Form 990 or 990-EZ) and its instructions is at www.irs.gov/form990.
| (i)Name of supported organization | (ii) EIN | (iii) Type of organization (described on lines 1- 9 above or IRC section (see instructions)) | (iv) Is the organization listed in your governing document? | (v) Amount of monetary support (see instructions) | (vi) Amount of other support (see instructions) | |
|---|---|---|---|---|---|---|
| Yes | No | |||||
| (A)
MEDICARE VALUE PARTNERS |
363495969 | 03 | No | 0 | 0 | |
| (B)
PRESENCE HOLY FAMILY MEDICAL CENTER |
362439318 | 03 | No | 0 | 0 | |
| (C)
MOUNT LORETTO NURSING HOME INC |
141363014 | 03 | No | 0 | 0 | |
| (D)
PRESENCE OUR LADY OF THE RESURRECTION MEDICAL CENTER |
362644178 | 03 | No | 0 | 0 | |
| (E)
PRESENCE CARE HOME |
460483587 | 09 | No | 0 | 0 | |
| (F)
PRESENCE HOME CARE |
460483581 | 09 | No | 0 | 0 | |
| (G)
PRESENCE HOSPITALS PRV |
364195126 | 03 | No | 0 | 0 | |
| (H)
LAVERNA TERRACE HOUSING CORPORATION |
363438977 | 09 | No | 0 | 0 | |
| (I)
PRESENCE LIFE CONNECTIONS |
371127787 | 07 | No | 0 | 0 | |
| (J)
PRESENCE BEHAVIORAL HEALTH |
362709982 | 03 | No | 0 | 0 | |
| (K)
PRESENCE AMBULATORY SERVICES |
364286236 | 03 | No | 0 | 0 | |
| (L)
PRESENCE HEALTH FOUNDATION BOARD OF TRUSTEES |
363330929 | 07 | No | 0 | 0 | |
| (M)
PRESENCE HOME CARE SERVICES |
362893936 | 03 | No | 0 | 0 | |
| (N)
PRESENCE RESURRECTION MEDICAL CENTER |
363330926 | 03 | No | 0 | 0 | |
| (O)
RESURRECTION NURSING HOME INC |
141348691 | 03 | No | 0 | 0 | |
| (P)
PRESENCE RHC SENIOR SERVICES |
237061646 | 03 | No | 0 | 0 | |
| (Q)
PRESENCE HEALTHCARE SERVICES |
363330928 | 03 | No | 0 | 0 | |
| (R)
PRESENCE SAINT FRANCIS HOSPITAL |
362167800 | 03 | No | 0 | 0 | |
| (S)
ST FRANCIS HOSPITAL AUXILIARY OF EVANSTON INC |
366143349 | 07 | No | 0 | 0 | |
| (T)
PRESENCE SAINTS MARY AND ELIZABETH MEDICAL CENTER |
362171079 | 03 | No | 0 | 0 | |
| (U)
PRESENCE SAINT JOSEPH HOSPITAL CHICAGO |
363200170 | 03 | No | 0 | 0 | |
| (V)
ARTHUR MERKLE - CLARA KNIPPRATH NURSING HOME |
362841358 | 09 | No | 0 | 0 | |
| (W)
RAINBOW HOSPICE AND PALLATIVE CARE |
363296367 | 09 | No | 0 | 0 | |
| (X)
PRESENCE NAZARETHVILLE |
362801392 | 09 | No | 0 | 0 | |
Total 24
|
||||||
Calendar year (or fiscal year beginning in) ![]() |
(a) 2010 | (b) 2011 | (c) 2012 | (d) 2013 | (e) 2014 | (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. | ||||||
Calendar year
(or fiscal year beginning in) ![]() |
(a) 2010 | (b) 2011 | (c) 2012 | (d) 2013 | (e) 2014 | (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. Do not include gain or loss from the sale of capital assets (Explain in Part VI.).. | ||||||
| 11 | Total support Add lines 7 through 10. | ||||||
Calendar year (or fiscal year beginning in) ![]() |
(a) 2010 | (b) 2011 | (c) 2012 | (d) 2013 | (e) 2014 | (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.) | ||||||
Calendar year (or fiscal year beginning in) ![]() |
(a) 2010 | (b) 2011 | (c) 2012 | (d) 2013 | (e) 2014 | (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 VI.) .. | ||||||
| 13 | Total support. (Add lines 9, 10c, 11, and 12.).. | ||||||
| Section A - Adjusted Net Income | (A) Prior Year |
(B) Current Year (optional) |
||||
| 1 | Net short-term capital gain | 1 | ||||
| 2 | Recoveries of prior-year distributions | 2 | ||||
| 3 | Other gross income (see instructions) | 3 | ||||
| 4 | Add lines 1 through 3 | 4 | ||||
| 5 | Depreciation and depletion | 5 | ||||
| 6 | Portion of operating expenses paid or incurred for production or collection of gross income or for management, conservation, or maintenance of property held for production of income (see instructions) | 6 | ||||
| 7 | Other expenses (see instructions) | 7 | ||||
| 8 | Adjusted Net Income (subtract lines 5, 6 and 7 from line 4) | 8 | ||||
| Section B - Minimum Asset Amount | (A) Prior Year |
(B) Current Year (optional) |
||||
| 1 | Aggregate fair market value of all non-exempt-use assets (see instructions for short tax year or assets held for part of year): | 1 | ||||
| a | Average monthly value of securities | 1a | ||||
| b | Average monthly cash balances | 1b | ||||
| c | Fair market value of other non-exempt-use assets | 1c | ||||
| d | Total (add lines 1a, 1b, and 1c) | 1d | ||||
| e | Discount claimed for blockage or other factors (explain in detail in Part VI): | |||||
| 2 | Acquisition indebtedness applicable to non-exempt use assets | 2 | ||||
| 3 | Subtract line 2 from line 1d | 3 | ||||
| 4 | Cash deemed held for exempt use. Enter 1-1/2% of line 3 (for greater amount, see instructions). | 4 | ||||
| 5 | Net value of non-exempt-use assets (subtract line 4 from line 3) | 5 | ||||
| 6 | Multiply line 5 by .035 | 6 | ||||
| 7 | Recoveries of prior-year distributions | 7 | ||||
| 8 | Minimum Asset Amount (add line 7 to line 6) | 8 | ||||
| Section C - Distributable Amount | Current Year | |||||
| 1 | Adjusted net income for prior year (from Section A, line 8, Column A) | 1 | ||||
| 2 | Enter 85% of line 1 | 2 | ||||
| 3 | Minimum asset amount for prior year (from Section B, line 8, Column A) | 3 | ||||
| 4 | Enter greater of line 2 or line 3 | 4 | ||||
| 5 | Income tax imposed in prior year | 5 | ||||
| 6 | Distributable Amount. Subtract line 5 from line 4, unless subject to emergency temporary reduction (see instructions) | 6 | ||||
| 7 | Check here if the current year is the organization's first as a non-functionally-integrated Type III supporting organization (see instructions) | |||||
| Section D - Distributions | Current Year | |
|---|---|---|
| 1 Amounts paid to supported organizations to accomplish exempt purposes | ||
|
2
Amounts paid to perform activity that directly furthers exempt purposes of supported organizations, in excess of income from activity |
||
| 3 Administrative expenses paid to accomplish exempt purposes of supported organizations | ||
| 4 Amounts paid to acquire exempt-use assets | ||
| 5 Qualified set-aside amounts (prior IRS approval required) | ||
| 6 Other distributions (describe in Part VI). See instructions | ||
| 7Total annual distributions. Add lines 1 through 6. | ||
|
8
Distributions to attentive supported organizations to which the organization is responsive (provide details in Part VI). See instructions |
||
| 9 Distributable amount for 2014 from Section C, line 6 | ||
| 10 Line 8 amount divided by Line 9 amount | ||
| Section E - Distribution Allocations (see instructions) |
(i) Excess Distributions |
(ii) Underdistributions Pre-2014 |
(iii) Distributable Amount for 2014 |
|
|---|---|---|---|---|
|
1
Distributable amount for 2014 from Section C, line 6 |
||||
|
2
Underdistributions, if any, for years prior to 2014 (reasonable cause required--see instructions) |
||||
| 3 Excess distributions carryover, if any, to 2014: | ||||
| a From 2009.......X | ||||
| b From 2010.......X | ||||
| c From 2011.......X | ||||
| d From 2012.......X | ||||
| e From 2013....... | ||||
| fTotal of lines 3a through e | ||||
| g Applied to underdistributions of prior years | ||||
| h Applied to 2014 distributable amount | ||||
|
i
Carryover from 2009 not applied (see instructions) |
||||
| j Remainder. Subtract lines 3g, 3h, and 3i from 3f. | ||||
| 4Distributions for 2014 from Section D, line 7: | ||||
| $ | ||||
| a Applied to underdistributions of prior years | ||||
| b Applied to 2014 distributable amount | ||||
| c Remainder. Subtract lines 4a and 4b from 4. | ||||
|
5
Remaining underdistributions for years prior to 2014, if any. Subtract lines 3g and 4a from line 2 (if amount greater than zero, see instructions) |
||||
|
6
Remaining underdistributions for 2014. Subtract lines 3h and 4b from line 1 (if amount greater than zero, see instructions) |
||||
|
7 Excess distributions carryover to 2015. Add lines 3j and 4c. |
||||
| 8 Breakdown of line 7: | ||||
| a From 2010.......X | ||||
| b From 2011.......X | ||||
| c From 2012.......X | ||||
| d From 2013....... | ||||
| e From 2014....... | ||||
| Facts And Circumstances Test |
|---|
| Return Reference | Explanation |
|---|---|
| Part IV, Section A, Question 1 | Supported Organizations not listed in the Corporation's Governing |
| Part IV, Section A, Question 2 | Supported Organizations Without IRS Determination of Status under |
| Part IV, Section A, Question 5a | Additions, Substitutions, or Removal of Supported Organizations |
| Part IV, Section D, Question 2 | Relationship with supported organizations |
| Part IV, Section D, Question 3 | Significant Voice in the Operations of supporting organization |
| Part IV, Section E, Question 3a | Authority to appoint a majority of the officers and directors of |
| Part IV, Section E, Question 3b | Direction over policies, programs, and activities of supported |
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| Software Version: |
Attach to Form 990 or 990-EZ.
Information about Schedule O (Form 990 or 990-EZ) and its instructions is at| Return Reference | Explanation |
|---|---|
| MISSION STATEMENT | FORM 990, PART I, LINE 1, AND PART III, QUESTION 1 INSPIRED BY THE HEALING MINISTRY OF JESUS CHRIST, PRESENCE HEALTH NETWORK PROVIDES ADMINISTRATIVE MANAGEMENT AND OTHER SUPPORT TO AFFILIATE HOSPITALS, CATHOLIC-SPONSORED NURSING HOMES, AND OTHER HEALTH CARE PROVIDERS, TO ENABLE THEM TO PROVIDE COMPASSIONATE, HOLISTIC CARE WITH A SPIRIT OF HEALING AND HOPE IN THE COMMUNITIES THEY SERVE. |
| COMPENSATION AND FORM W-3 TRANSMITTAL OF WAGES AND TAX STATEMENT | FORM 990, PART I, QUESTION 5, AND PART V, QUESTION 2 PRESENCE HEALTH NETWORK (THE "CORPORATION") REPORTS 0 EMPLOYEES ON FORM 990, PART I, QUESTION 5 AND FORM 990, PART V, QUESTION 2A AS IT IS NOT REQUIRED TO FILE FORM W-3, TRANSMITTAL OF WAGES AND TAX STATEMENT. THE CORPORATION'S COMPENSATION IS PAID BY PRESENCE RESURRECTION MEDICAL CENTER ("PRMC"), WHICH ISSUES THE FORMS W-2 AND W-3, AND THE EXPENSE IS TRANSFERRED TO THE CORPORATION. THE COMPENSATION AMOUNTS REPORTED IN THIS 990 REFLECT THE AMOUNT TRANSFERRED TO THE CORPORATION FROM PRMC. |
| STATEMENT OF PROGRAM SERVICE ACCOMPLISHMENTS | FORM 990, PART III, QUESTION 4A PRESENCE HEALTH NETWORK IS THE PARENT CORPORATION OF THE PRESENCE HEALTH SYSTEM FORMED TO PROVIDE GOVERNANCE SUPPORT TO THE SYSTEM AS A WHOLE. ON NOVEMBER 1, 2011 PROVENA HEALTH AND ITS AFFILIATES (COLLECTIVELY, PROVENA) AND RESURRECTION HEALTH CARE CORPORATION AND ITS AFFILIATES (COLLECTIVELY, RHC) CAME TOGETHER TO FORM THIS HEALTH SYSTEM. PURSUANT TO THIS COMBINATION, THE TWO SPONSORING CONGREGATIONS OF RHC AND THE THREE SPONSORING CONGREGATIONS OF PROVENA AGREED TO JOINTLY SPONSOR A NEW SYSTEM COMPOSED OF ALL ENTITIES COMPRISING BOTH SYSTEMS. THIS COMBINATION OF THE TWO SYSTEMS WAS ACCOMPLISHED THROUGH THE ESTABLISHMENT OF PRESENCE HEALTH NETWORK AS THE NEW SYSTEM PARENT CORPORATION AND THE SOLE MEMBER OF THE FORMER PARENT CORPORATIONS OF EACH SYSTEM. THE COMBINATION WAS EFFECTED TO PRESERVE AND STRENGTHEN CATHOLIC HEALTH CARE, FURTHERING RHC'S AND PROVENA'S CHARITABLE MISSIONS. |
| FORM 1096 TRANSMITTAL OF U.S. INFORMATION RETURNS | FORM 990, PART V, QUESTION 1A PRESENCE HEALTH NETWORK (THE "CORPORATION") REPORTS 0 ON FORM 990, PART V, QUESTION 1A AS IT IS NOT REQUIRED TO FILE FORM 1096, TRANSMITTAL OF U.S. INFORMATION RETURNS. ALL OF THE CORPORATION'S ACCOUNTS PAYABLE REPORTABLE ON FORM 1096 ARE PAID BY PRESENCE RESURRECTION MEDICAL CENTER ("PRMC"), WHICH ISSUES ALL FORMS 1099, AND THE EXPENSE IS TRANSFERRED TO THE CORPORATION. THE COMPENSATION AMOUNTS REPORTED IN THIS 990 REFLECT THE AMOUNT TRANSFERRED TO THE CORPORATION FROM PRMC. |
| MEMBERS OR SHAREHOLDERS | FORM 990, PART VI, QUESTION 6 THE CORPORATION HAS FIVE "SPONSOR MEMBERS," WHICH ARE ALL CONGREGATIONS OF RELIGIOUS WOMEN, INCLUDING FRANCISCAN SISTERS OF THE SACRED HEART, SISTERS OF MERCY, SERVANTS OF THE HOLY HEART, SISTERS OF THE RESURRECTION, AND SISTERS OF THE HOLY FAMILY OR THEIR SUCCESSOR CATHOLIC RELIGIOUS INSTITUTES. THE CORPORATION FURTHER HAS ONE "CORPORATE MEMBER," WHICH CONSISTS OF TEN RELIGIOUS WOMEN APPOINTED BY THE SPONSOR MEMBERS. THE RESPECTIVE POWERS OF THE CORPORATE AND SPONSOR MEMBERS ARE DEFINED IN THE CORPORATION'S BYLAWS, AND INCLUDED IN THIS SCHEDULE O IN RESPONSE TO PART VI, QUESTION 7B. |
| PERSONS WITH AUTHORITY TO ELECT MEMBERS OF THE GOVERNING BODY | FORM 990, PART VI, QUESTION 7A THE CORPORATION'S DIRECTORS ARE APPOINTED BY THE CORPORATION'S CORPORATE MEMBER, A BODY CURRENTLY CONSISTING OF TEN CATHOLIC RELIGIOUS WOMEN, EACH OF WHOM IS A MEMBER OF ONE OF THE FIVE SPONSORING MEMBER CONGREGATIONS OF THE CORPORATION AND ITS AFFILIATES. |
| DECISIONS OF GOVERNING BODY APPROVAL BY MEMBERS OR SHAREHOLDERS | THE CORPORATION'S CORPORATE AND SPONSOR MEMBERS HAVE THE FOLLOWING RESERVE POWERS. POWERS OF SPONSOR MEMBERS: A) EACH SPONSOR MEMBER SHALL EXERCISE THE FOLLOWING RESERVED POWERS: APPROVE ANY PROPOSED SALE, TRANSFER, LEASE OR ENCUMBRANCE OF STABLE PATRIMONY OF SUCH SPONSOR IN AN AMOUNT IN EXCESS OF THE STABLE PATRIMONY LIMIT; B) APPROVE ANY PROPOSED AMENDMENT TO THE ORGANIZATIONAL DOCUMENTS OF THE CORPORATION OR ANY OF ITS AFFILIATES THAT WOULD CHANGE THE RESERVED POWERS OF THE SPONSOR MEMBER(S); C) APPROVE THE ADDITION OF NEW SPONSORS; D) APPROVE ANY MERGER, CONSOLIDATION OR DISSOLUTION OF THE CORPORATION OR VOLUNTARY FILING FOR BANKRUPTCY COURT PROTECTION BY THE CORPORATION; AND E) APPOINT AND REMOVE AT ANY TIME, WITH OR WITHOUT CAUSE, SUCH SPONSOR MEMBER'S APPOINTEES TO THE CORPORATE MEMBER. POWERS OF CORPORATE MEMBER: A) RECOMMEND TO THE APPROPRIATE SPONSOR MEMBER(S) THE SALE, TRANSFER, LEASE (OTHER THAN IN THE ORDINARY COURSE OF BUSINESS AND FOR LEASE TERMS OF TEN (10) YEARS OR LESS) OR ENCUMBRANCE OF STABLE PATRIMONY OF ANY OF THE SPONSORS IN AN AMOUNT IN EXCESS OF THE STABLE PATRIMONY LIMIT; B) RECOMMEND TO THE SPONSOR MEMBERS ANY PROPOSED AMENDMENT TO THE ORGANIZATIONAL DOCUMENTS OF THE CORPORATION OR ANY OF ITS AFFILIATES THAT WOULD CHANGE THE RESERVED POWERS OF THE SPONSOR MEMBER(S); C) RECOMMEND TO THE SPONSOR MEMBERS THE ADDITION OF NEW SPONSORS; D) RECOMMEND TO THE SPONSOR MEMBERS ANY MERGER, CONSOLIDATION OR DISSOLUTION OF THE CORPORATION OR VOLUNTARY FILING FOR BANKRUPTCY COURT PROTECTION BY THE CORPORATION; E) ADOPT, AMEND OR REPEAL ANY STATEMENT OF THE SYSTEM'S MISSION, VISION AND CORE VALUES OR ANY STATEMENT OF SPONSOR EXPECTATIONS; F) APPROVE ANY AMENDMENT TO THE ORGANIZATIONAL DOCUMENTS OF THE CORPORATION OTHER THAN THOSE AMENDMENTS SUBJECT TO THE SPONSOR MEMBERS' RESERVED POWER APPROVAL; G) APPROVE ANY MERGER, CONSOLIDATION OR DISSOLUTION OF ANY AFFILIATE, EXCEPT FOR MERGERS OR CONSOLIDATIONS BETWEEN AFFILIATES; H) APPROVE THE CREATION OF AFFILIATES; I) APPROVE ANY CHANGE IN THE PRIMARY BUSINESS NAME OR LOGO OF THE CORPORATION OR ANY AFFILIATE OR LOCAL MINISTRY; J) APPOINT OR REMOVE AT ANY TIME, WITH OR WITHOUT CAUSE, UP TO FIVE (5) CORPORATE MEMBER APPOINTEES TO THE CORPORATION BOARD OF DIRECTORS; K) APPOINT OR REMOVE AT ANY TIME, WITH OR WITHOUT CAUSE, THE DIRECTORS OF THE CORPORATION; L) APPROVE THE APPOINTMENT OF, OR REMOVE AT ANY TIME, WITH OR WITHOUT CAUSE, THE CHIEF EXECUTIVE OFFICER AND/OR THE CORPORATION'S BOARD CHAIRPERSON; M) APPROVE THE SYSTEM'S INTEGRATED STRATEGIC AND FINANCIAL PLAN; N) APPROVE THE CORPORATION'S EXPENDITURE OF FUNDS OR DIVESTITURE OF ASSETS NOT INCLUDED IN THE INTEGRATED STRATEGIC AND FINANCIAL PLAN ABOVE A DOLLAR LEVEL TO BE DETERMINED FROM TIME TO TIME BY THE CORPORATE MEMBER; O) APPROVE THE CORPORATION'S INCURRENCE OF ADDITIONAL SYSTEM DEBT OR DEBT CAPACITY ABOVE A DOLLAR LEVEL TO BE DETERMINED FROM TIME TO TIME BY THE CORPORATE MEMBER; AND P) APPROVE ANY VOLUNTARY CHANGE TO THE CORPORATION'S FEDERAL INCOME TAX EXEMPTION UNDER CODE SECTION 501(C)(3). |
| FORM 990 REVIEW PROCESS | FORM 990, PART VI, QUESTION 11B THE DRAFT FORM 990 IS PREPARED BY THE CORPORATION'S ACCOUNTING FIRM WITH ASSISTANCE FROM THE SYSTEM FINANCE DEPARTMENT. THE RETURN IS THEN REVIEWED BY MANAGEMENT, INCLUDING SENIOR LEADERS FROM LEGAL, COMPLIANCE, HUMAN RESOURCES AND THE SYSTEM CEO FOR ACCURACY AND COMPLETENESS. AS NECESSARY, MANAGEMENT CONSULTS WITH EXTERNAL LEGAL AND OTHER EXPERTS TO ASSURE ACCURACY. THE FINAL FORM 990 IS PROVIDED TO THE CORPORATION'S BOARD OF DIRECTORS FOR REVIEW PRIOR TO FILING. |
| PROCEDURES FOR ADDRESSING CONFLICTS OF INTEREST | FORM 990, PART VI, LINE 12C THE PURPOSE OF THE CONFLICT OF INTEREST POLICY IS TO PROTECT THE INTERESTS OF PRESENCE HEALTH NETWORK AND ALL OF ITS AFFILIATED MINISTRIES (COLLECTIVELY "PRESENCE HEALTH") WHEN IT IS CONTEMPLATING ENTERING INTO A TRANSACTION OR ARRANGEMENT THAT MIGHT BENEFIT THE PRIVATE INTEREST OF ANY DIRECTOR, TRUSTEE, OFFICER, CORPORATE MEMBER APPOINTEE, MEMBER OF A COMMITTEE WITH BOARD-DELEGATED POWERS, SENIOR LEADERS, AND OTHERS IN A RECENT POSITION TO EXERCISE SUBSTANTIAL INFLUENCE OVER PRESENCE HEALTH ("INTERESTED PERSONS"), AND CLARIFY THE STANDARDS OF CONDUCT, DUTIES AND OBLIGATIONS OF INTERESTED PERSONS IN THE CONTEXT OF POTENTIAL CONFLICTS OF INTEREST BY PROVIDING A METHOD FOR DISCLOSING AND RESOLVING SUCH POTENTIAL CONFLICTS. NO PRESENCE HEALTH ENTITY WILL ENGAGE IN ANY CONTRACT, TRANSACTION OR ARRANGEMENT INVOLVING A CONFLICT OF INTEREST UNLESS DISINTERESTED MEMBERS OF THE APPLICABLE BOARD OF DIRECTORS OR OTHER GOVERNING BODY DETERMINE BY A MAJORITY VOTE THAT APPROPRIATE SAFEGUARDS TO PROTECT THE CHARITABLE MISSION OF PRESENCE HEALTH HAVE BEEN IMPLEMENTED. TO FACILITATE THIS POLICY, ALL INTERESTED PERSONS HAVE A CONTINUING OBLIGATION TO PROMPTLY DISCLOSE THE EXISTENCE AND NATURE OF ANY ACTUAL, APPARENT, OR POTENTIAL CONFLICTS OF INTEREST HE/SHE MAY HAVE. ALL DISCLOSURES MUST BE PROVIDED TO THE SYSTEM COMPLIANCE OFFICER AND GENERAL COUNSEL IN A WRITTEN DESCRIPTION OF THE MATERIAL FACTS. DISCLOSURE SHALL BE ON A CONFLICTS OF INTEREST QUESTIONNAIRE OR SIMILAR FORMAT AS DESCRIBED IN THE CONFLICTS OF INTEREST POLICY. ALL INTERESTED PERSONS SHALL ALSO COMPLETE A QUESTIONNAIRE BASED ON THE ASSUMPTION OF THE BOARD (OR OTHER RELEVANT) POSITION, AND THEREAFTER ON AT LEAST AN ANNUAL BASIS OR WHEN AN ACTUAL, APPARENT, OR POTENTIAL CONFLICT ARISES. AT ANY TIME THAT AN ACTUAL, APPARENT OR A POTENTIAL CONFLICT OF INTEREST IS IDENTIFIED TO THE CORPORATION'S BOARD OF DIRECTORS, WHETHER THROUGH THE VOLUNTARY SUBMISSION OF A DISCLOSURE STATEMENT BY AN INTERESTED PERSON, OR BY A DISCLOSURE BY A PERSON OTHER THAN THE SUBJECT INTERESTED PERSON, THE CORPORATION'S BOARD OR APPLICABLE COMMITTEE SHALL REVIEW THE MATTER AND DETERMINE WHETHER A CONFLICT OF INTEREST EXISTS. ONCE ALL NECESSARY INFORMATION HAS BEEN OBTAINED, ONLY DISINTERESTED DIRECTORS/COMMITTEE MEMBERS VOTE TO DETERMINE WHETHER A CONFLICT OF INTEREST EXISTS. IF A CONFLICT IS FOUND TO EXIST THE INTERESTED PERSON WILL GENERALLY BE REQUIRED TO RECUSE HIM OR HERSELF DURING ANY MEETING IN WHICH THE BOARD OF DIRECTORS OR APPLICABLE COMMITTEE CONDUCTS THE EVALUATION OF THE SUBJECT TRANSACTION, EXCEPT TO ANSWER QUESTIONS AS MAY BE NECESSARY. TO ENSURE THAT THE PRESENCE HEALTH OPERATES IN A MANNER CONSISTENT WITH ITS CHARITABLE PURPOSES AND THAT IT DOES NOT ENGAGE IN ACTIVITIES THAT COULD JEOPARDIZE ITS EXEMPT STATUS, TRANSACTIONS INVOLVING INTERESTED PERSONS ARE ONLY APPROVED IF, AFTER EXERCISING REASONABLE DUE DILIGENCE, THE BOARD DETERMINES THEY ARE FAIR AND REASONABLE, TAKING INTO ACCOUNT FACTORS SUCH AS WHETHER PRESENCE HEALTH COULD OBTAIN A MORE ADVANTAGEOUS CONTRACT, TRANSACTION OR ARRANGEMENT. HOWEVER, LENDING MONEY OR GUARANTYING AN OBLIGATION OF A DIRECTOR, OFFICER, OR EMPLOYEE OF PRESENCE HEALTH (EXCLUSIVE OF CUSTOMARY INSURANCE COVERAGE FOR ACTS DONE IN CONNECTION WITH SUCH INDIVIDUAL'S SERVICE TO OR EMPLOYMENT BY PRESENCE HEALTH) IS STRICTLY PROHIBITED. |
| COMPENSATION AND APPROVAL PROCESS FOR OFFICERS AND KEY EMPLOYEES | FORM 990, PART VI, QUESTIONS 15A AND 15B, AND PART V, QUESTION 2A COMPENSATION FOR THE CORPORATION'S CEO AND OTHER OFFICERS OR KEY EMPLOYEES IS DETERMINED IN ACCORDANCE WITH WRITTEN POLICIES AND PROCEDURES ADOPTED BY THE CORPORATION'S BOARD OF DIRECTORS AND APPLIED BY THE HUMAN RESOURCES COMMITTEE OF THE BOARD. THE CORPORATION USES MARKET DATA COMPILED BY AN INDEPENDENT COMPENSATION CONSULTANT TO ESTABLISH BASE SALARIES AND TOTAL CASH COMPENSATION OPPORTUNITIES. THE BOARD'S HUMAN RESOURCES COMMITTEE MONITORS EXECUTIVE TOTAL COMPENSATION BY APPROVING ALL COMPONENTS OF EXECUTIVE TOTAL COMPENSATION, ANNUALLY REVIEWING AND APPROVING COMPENSATION CHANGES FOR EACH EXECUTIVE, AND REGULARLY REPORTING ITS ACTIVITIES TO THE BOARD. THE CORPORATION ANSWERS "NO" TO FORM 990. PART VI, QUESTION 15A AND 15B AS ALL COMPENSATION IS PAID BY A RELATED ORGANIZATION, PRESENCE RESURRECTION MEDICAL CENTER, THE SYSTEM'S STATUTORY EMPLOYER. |
| DOCUMENT AVAILABILITY | FORM 990, PART VI, LINE 19 THE CORPORATION'S ARTICLES OF INCORPORATION ARE ON FILE WITH THE STATE OF ILLINOIS. THE CONSOLIDATED AUDITED FINANCIAL STATEMENTS OF THE CORPORATION, TOGETHER WITH ITS AFFILIATES, ARE AVAILABLE FROM THE NATIONAL DISSEMINATION AGENT AS REQUIRED BY PRESENCE HEALTH SYSTEM'S BOND DOCUMENTS. CONFLICTS OF INTEREST POLICIES ARE NOT MADE AVAILABLE TO THE PUBLIC, HOWEVER A SUMMARY OF THE CURRENT POLICY IS ANNUALLY INCLUDED IN SCHEDULE O OF THE CORPORATION'S FORM 990. |
| STATUTORY EMPLOYER | FORM 990, PART VII, SECTIONS A & B PRESENCE RESURRECTION MEDICAL CENTER ("PRMC")(FEIN 36-3330926) ACTS AS THE PAYROLL AGENT FOR THE CORPORATION. CASH IS SWEPT FROM THE CORPORATION ON A DAILY BASIS TO PRMC AND PRMC ISSUES ALL PAYROLL AND ACCOUNTS PAYABLE CHECKS ON BEHALF OF AND AS PAYROLL AGENT FOR THE CORPORATION AND THE APPROPRIATE ACCOUNTING ENTRIES ARE RECORDED. |
| AUDITED FINANCIAL STATEMENTS | FORM 990, PART XII, LINE 2B AN INDEPENDENT ACCOUNTANT ANNUALLY AUDITS THE CONSOLIDATED FINANCIAL STATEMENTS OF PRESENCE HEALTH NETWORK AND ITS AFFILIATES. THE AUDIT OPINION IS ISSUED ON THE CONSOLIDATED FINANCIAL STATEMENTS AND EACH AFFILIATE IS NOT SEPARATELY AUDITED. |
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