Attach to Form 990 or 990-EZ.
Go to www.irs.gov/Form990 for the latest information.
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| PART III, LINE 4A: | INFORMATION SERVICES (POLICY, EVALUATION, ANALYSIS, AND RESEARCH) BECAUSE OF THE EXTRAORDINARY ROLE THAT PUBLIC POLICY PLAYS IN THE FINANCING AND DELIVERY OF CARE BY CHILDREN'S HOSPITALS, NACH PUBLISHES A BROAD ARRAY OF PUBLICATIONS AND INFORMATION SERVICES THAT ENABLE CHILDREN'S HOSPITALS TO UNDERSTAND THE CHANGING PUBLIC POLICY ENVIRONMENT, ITS IMPLICATIONS FOR THE MISSIONS OF CHILDREN'S HOSPITALS, AND THE OPPORTUNITY IT PRESENTS FOR CHILDREN'S HOSPITALS TO PROTECT AND ADVANCE THEIR COMMON BUSINESS INTERESTS. PUBLICATIONS INCLUDE: 1) WASHINGTON UPDATE, A WEEKLY NEWSLETTER HIGHLIGHTING THE LATEST DEVELOPMENTS IN FEDERAL POLICY, BOTH LEGISLATIVE AND REGULATORY, AFFECTING CHILDREN HOSPITALS REGARDING MEDICAID, COMMERCIAL INSURANCE, FEDERAL FUNDING FOR CHILD HEALTH GRANTS, MANAGED CARE, EXCHANGES, AND OTHER POLICIES AFFECTING THE MISSION OF CHILDREN'S HOSPITALS. OTHER INFORMATION SERVICES INCLUDE SPECIAL REPORTS, E-MAIL ALERTS, FACT SHEETS, AND MATERIALS PROVIDING MORE IN-DEPTH INFORMATION ON SPECIFIC EXAMPLES OF HOW STATES ARE IMPLEMENTING MEDICAID AND OTHER FEDERAL AND STATE HEALTH COVERAGE PROGRAMS FOR CHILDREN, SUCH AS STATES' DETERMINATION OF SPECIAL PAYMENTS FOR WHICH CHILDREN'S HOSPITALS QUALIFY IN MOST STATES, AND THE IMPACT OF FEDERAL FUNDING CHANGES ON STATE MEDICAID PAYMENT TO CHILDREN'S HOSPITALS NACH OFFERS CUSTOMIZED INFORMATION SERVICES, RESPONDING TO INDIVIDUAL HOSPITALS' REQUESTS FOR INFORMATION ABOUT SPECIFIC PROVISIONS OF FEDERAL CHILD HEALTH POLICY AND ITS IMPLICATIONS FOR STATE POLICY. NACH ALSO WORKS IN PROJECTS INVOLVING HOSPITALS WITH MAJOR ACADEMIC MISSIONS TO HELP THEM UNDERSTAND THE WAYS IN WHICH DEPARTMENT OF HEALTH AND HUMAN SERVICES POLICIES AFFECT PEDIATRIC GRADUATE MEDICAL EDUCATION. FINALLY, NACH DEVELOPS, ON AN AS NEEDED BASIS, FACT SHEETS, TABLES, AND SIDE-BY-SIDE ANALYSES OF KEY DATA, REPORTS, LEGISLATION, AND OTHER PUBLIC POLICY DOCUMENTS TO ENABLE HOSPITALS TO UNDERSTAND THE CHANGING PUBLIC POLICY ENVIRONMENT. |
| PART III, LINE 4B: | PUBLIC POLICY ADVOCACY NACH ENGAGES IN PUBLIC POLICY ADVOCACY IN TWO WAYS, ASSOCIATION ADVOCACY AND GRASSROOTS ADVOCACY. ASSOCIATION ADVOCACY: NACH DIRECTLY ADVOCATES PUBLIC POLICY POSITIONS ON BEHALF OF THE COMMON INTERESTS OF CHILDREN'S HOSPITALS IN MEETING WITH FEDERAL POLICY MAKERS AND THEIR STAFF, IN TESTIMONY TO CONGRESSIONAL AND EXECUTIVE BRANCH AGENCIES, IN LETTERS AND OTHER WRITTEN COMMUNICATIONS, AND IN COMMUNICATIONS BY COALITIONS INVOLVING OTHER ORGANIZATIONS WITH COMMON INTERESTS, AS WELL AS IN MEDIA RELATED ADVOCACY, SUCH AS PRESS RELEASES AND BRIEFINGS, AND PAID ADVERTISEMENTS. THIS ADVOCACY IS DEFINED BY THE ANNUAL PUBLIC POLICY AGENDA DEVELOPED IN CONSULTATION WITH A COMMITTEE OF THE ASSOCIATION'S BOARD OF TRUSTEES. NACH'S PRIMARY AREAS OF PUBLIC POLICY ADVOCACY FOCUSED ON LEGISLATION THAT DIRECTLY AFFECTS THE ABILITY OF CHILDREN'S HOSPITALS TO FULFILL THEIR MISSION OF PROVIDING CLINICAL CARE FOR CHILDREN REGARDLESS OF ECONOMIC OR MEDICAL CONDITION, TRAINING THE NEXT GENERATION OF PHYSICIANS FOR CHILDREN, SPONSORING RESEARCH TO IMPROVE CHILDREN'S HEALTH CARE, AND EDUCATING THE PUBLIC ABOUT BROADER ISSUES THAT AFFECT CHILDREN'S HEALTH CARE. IN PARTICULAR, NACH FOCUSES ON LEGISLATION THAT AFFECTS THE STANDARDS FOR PUBLIC AND PRIVATE HEALTH COVERAGE INVOLVING THE PATIENTS WHO COME TO CHILDREN'S HOSPITALS AND THE HOSPITALS' ABILITY TO RECEIVE ADEQUATE REIMBURSEMENT FOR THEIR CARE, THE REIMBURSEMENT THE FEDERAL GOVERNMENT PROVIDES FOR ALL TEACHING HOSPITALS INCLUDING CHILDREN'S HOSPITALS FOR THEIR GRADUATE MEDICAL EDUCATION PROGRAMS, FEDERAL FUNDING FOR RESEARCH MOSTLY LIKELY TO AFFECT THE HEALTH CARE NEEDS OF CHILDREN, AND FEDERAL FUNDING FOR GRANTS THAT ADDRESS THE NEEDS OF SPECIAL POPULATIONS OF CHILDREN. NACH ALSO SEEKS TO INFLUENCE DEPARTMENT OF DEFENSE POLICY BOTH THROUGH CONGRESS AND THE DEPARTMENT - AFFECTING ACCESS TO AND REIMBURSEMENT FOR CLINICAL CARE PROVIDED BY CHILDREN'S HOSPITALS FOR CHILDREN WHO ARE MILITARY DEPENDENTS. GRASSROOTS ADVOCACY: NACH SEEKS TO ASSIST INDIVIDUAL CHILDREN'S HOSPITALS TO ADVOCATE - THROUGH THE HOSPITAL STAFF, HOSPITAL SUPPORTERS, AND MEMBERS OF THEIR COMMUNITIES - ON BEHALF OF THE NATIONAL ASSOCIATION'S PUBLIC POLICY AGENDA, WHICH ADVANCES THE COMMON INTERESTS OF ALL CHILDREN'S HOSPITALS. SUCH ASSISTANCE INCLUDES WASHINGTON DC ADVOCACY DAYS, ACTION ALERTS, SAMPLE ADVOCACY LETTERS, SAMPLE PRESS RELEASES, AND SAMPLE ORGANIZING ACTIVITIES. FOR EXAMPLE, NACH WORKED WITH INDIVIDUAL HOSPITALS TO EQUIP THEIR LEADERS TO ADVOCATE ON BEHALF OF FEDERAL GRADUATE MEDICAL EDUCATION FUNDING FOR CHILDREN'S HOSPITALS AND FEDERAL FUNDING FOR MEDICAID. |
| FORM 990, PART VI, SECTION A, LINE 4 | NACH BYLAWS WERE AMENDED IN NOVEMBER 2021. THE MAXIMUM NUMBER OF TRUSTEES HAS INCREASED FROM 12 TO 14, IN ADDITION TO THE CEO. THE COMPOSITION OF THE BOARD WILL NOW REFLECT SIGNIFICANT RELATIVE PARTICIPATION IN AND SUPPORT OF THE PROGRAMS, SERVICES AND ADVOCACY INITIATIVES OF NACH, NACHRI, AND CHCA TAKING INTO ACCOUNT ADDITIONAL PROFESSIONAL, DEMOGRAPHIC, AND GEOGRAPHIC CRITERIA AS DETERMINED BY THE BOARD. |
| FORM 990, PART VI, SECTION A, LINE 6 | NACH HAS TWO CATEGORIES OF MEMBERS, VOTING AND NON-VOTING. VOTING MEMBERS ARE HOSPITALS AND THOSE RELATED INSTITUTIONS EMPHASIZING THE CLINICAL CARE OF CHILDREN. NON-VOTING MEMBERS ARE INSTITUTIONS AND INDIVIDUALS. MEMBERSHIP MAY BE GRANTED UPON APPLICATION TO THE BOARD OF TRUSTEES, WHICH SHALL ESTABLISH MEMBERSHIP CRITERIA, GRANT OR DENY MEMBERSHIP AND ASSIGN APPLICANTS TO MEMBERSHIP CATEGORIES AT ITS PLEASURE. |
| FORM 990, PART VI, SECTION A, LINE 7A | THE VOTING MEMBERS ELECT THE TRUSTEES. |
| FORM 990, PART VI, SECTION A, LINE 7B | THE MEMBERSHIP MAY APPROVE VARIOUS DECISIONS OF THE GOVERNING BOARD. |
| FORM 990, PART VI, SECTION B, LINE 11B | INITIAL COMPILATION OF INFORMATION IS COMPLETED BY FINANCE STAFF FOR TRANSMISSION TO AN OUTSIDE FIRM FOR TAX RETURN PREPRATION. THE DRAFT RETURN IS REVIEWED BY FINANCE STAFF AND THE CFAO. THE DRAFT RETURN IS PROVIDED TO THE BOARD OF TRUSTEES; ANY BOARD COMMENTS OR QUESTIONS ARE CLEARED PRIOR TO FILING THE FINAL RETURN. |
| FORM 990, PART VI, SECTION B, LINE 12C | PERIODICALLY, THE BOARD OF TRUSTEES MUST FILL OUT A CONFLICT OF INTEREST QUESTIONNAIRE AND ALSO SUBMIT TO BACKGROUND CHECKS OF VARYING DEGREES. THE RESULTS ARE REVIEWED BY THE CEO AND ALSO THE EXTERNAL AUDITORS. AT THE START OF ALL BOARD AND COMMITTEE MEETINGS, THE PARTICIPATING MEMBERS ARE ASKED TO DECLARE ANY CONFLICT OF INTEREST ACCORDINGLY. PERIODICALLY, ALL STAFF MUST FILL OUT A CONFLICT OF INTEREST FORM AND MUST ADHERE TO THE ASSOCIATION'S CONFLICT OF INTEREST POLICY. ANY CONFLICTS OF INTEREST ARE RESOLVED AS APPROPRIATE. THE HUMAN RESOURCES DEPARTMENT ENCOURAGES STAFF TO BRING ANY SITUATIONS TO THEIR ATTENTION AND MAKE PROMPT AND FULL DISCLOSURE OF ANY POTENTIAL SITUATIONS THAT MAY INVOLVE A CONFLICT OF INTEREST. THE POLICY IS INCLUDED IN OUR EMPLOYEE MANUAL AND WHISTLEBLOWER POLICY. |
| FORM 990, PART VI, SECTION B, LINE 15 | THE CURRENT CEO WAS HIRED IN SEPTEMBER 2011 AND THE CURRENT PRESIDENT WAS HIRED IN DECEMBER 2011. THIS PROCESS INVOLVED A NATIONAL SEARCH FIRM THAT WAS CLOSELY MONITORED BY A TASK FORCE AND THE BOARD OF TRUSTEES. IN ADDITION, THE GOVERNANCE COMMITTEE ALSO ACTS AS THE COMPENSATION COMMITTEE AND REVIEWS AND APPROVES ALL COMPENSATION RELATED MATTERS. THE CEO AND PRESIDENT'S COMPENSATION WAS BASED ON MARKET COMPARABLES OF SIMILAR SIZED ORGANIZATIONS AND RESPONSIBILITIES. THE COMPENSATION IS ALSO INCLUDED IN A WRITTEN EMPLOYMENT AGREEMENT. A COMPLETE REVIEW OF ALL SALARIES OCCURRED DURING 2018. SALARY INCREASES ARE RECOMMENDED BY THE GOVERNANCE COMMITTEE TO THE FULL BOARD FOR APPROVAL IN EXECUTIVE SESSION WITHOUT THE CEO PRESENT. FOR ALL OTHER STAFF, THE ASSOCIATION PERIODICALLY ENGAGES AN OUTSIDE CONSULTANT FOR COMPENSATION STUDIES TO REVIEW ALL JOB DESCRIPTIONS AND SALARIES. THIS CONSULTANT HAS EXPERTISE IN THE NON-PROFIT AND HEALTH FIELDS AND IS VERY FAMILIAR WITH THE COMPENSATION PRACTICES. THE CONSULTANT REVIEWS THE COMPENSATION OF OTHER NATIONAL ASSOCIATIONS AND PEER GROUPS. SELECTED SENIOR STAFF WERE GIVEN RAISES AS A RESULT OF A CONSOLIDATION OF POSITIONS AND THESE WERE REVIEWED BY THE GOVERNANCE COMMITTEE. A FORMAL EVALUATION OF ALL CURRENT SALARIES OCCURRED DURING 2018. ALL OTHER STAFF RECEIVED MINIMAL INCREASES IN LINE WITH THE MOST RECENT COMPENSATION STUDIES COMPLETED. |
| FORM 990, PART VI, SECTION C, LINE 19 | THE GOVERNING DOCUMENTS AND CONFLICT OF INTREST POLICY ARE NOT GENERALLY MADE AVAILABLE TO THE PUBLIC. AUDITED FINANCIAL STATEMENTS AND FORM 990 ARE AVAILABLE UPON REQUEST. |
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