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Lurie Children’s.
Building—for kids.

Ann & Robert H. Lurie
Children’s Hospital of Chicago

2012 Annual Report

Building

a brighter future.

What an amazing year it was! We successfully completed the building of
Ann & Robert H. Lurie Children’s Hospital of Chicago, and in partnership with the City of Chicago and emergency medical personnel, we moved 127 patients in 14 hours on June 9.

We successfully transitioned our operations from Lincoln Park to our new downtown facility and became Lurie Children’s. This would not have been possible without the support of our entire community. But our new state-of-the-art building is not just a place. It embodies who we are and where we’re headed. Our new hospital will ensure that Chicago continues to be seen as a center for transformative initiatives impacting pediatric healthcare in our city, the nation and around the world. We have only just begun.

J. Christopher Reyes
Chairman, Board of Directors

Patrick M. Magoon
President & CEO

Building
a higher level of care.

The impact of Lurie Children’s was immediate. Literally within minutes of its opening, the Kenneth and Anne Griffin Emergency Care Center received its first patient. Within 24 hours, the first life-saving brain surgery was performed, and a day later the first solid organ transplant was performed. Four days after opening, the first emergency transport via our helipad resulted in life-saving care for a critically ill patient from downstate Kankakee. Five days after the move, the first stem cell transplant was performed and eight days after the move, the first child received a liver transplant. Nine days after opening, the first mother walked across the bridge from Northwestern Memorial Hospital’s Prentice Women’s Hospital to visit her baby in the Neonatal Intensive Care Unit. And 10 days after opening, a 5-year-old boy received a new heart through the first heart transplant at Lurie Children’s. In addition to these firsts:

Building
stories of hope.

Six-year-old Ava Coulter was born with a rare genetic disorder. She travels to Lurie Children’s Clinical Research Unit every week from her Alabama home to participate in a clinical trial that offers her the only chance at effective treatment.

Watch a video about Ava and other kids helped by Lurie Children’s:

Play Video

Building—a better experience.

Our patient families are enthusiastic about the new Lurie Children’s. From the private patient rooms to the family great rooms on each inpatient floor to our Family Life Center, they tell us that Lurie Children’s is amazing. Thanks to 23 of Chicago’s cultural institutions and organizations that have donated time and talent to create innovative interiors in Lurie Children’s, we have a nationally recognized facility that is conducive to healing. These healing spaces help calm our patients before, during and after medical procedures. But the patient family experience goes far beyond the facility alone, and we want to know more about how a family experiences their child’s care.

Our new Patient and Family Experience Survey at Lurie Children’s allows better assessment of key dimensions of patient/family-centered care—defined as safe, respectful, responsive, collaborative and informative. Survey results will help us to meet our families’ raised expectations and more effectively evaluate the patient family experience as we strive to provide ever better service. More specific behavioral questions in this survey are helping us establish action-oriented targets for continued improvement. Take a tour of all 23 floors!

Early patient family satisfaction survey results have been very positive—inpatient families' overall rating of our hospital jumped by nearly 10 percent! Early performance in the first quarter of FY2013 indicated...

100%

of emergency department visitors would recommend the hospital to family and friends.

97%

of families that use our surgical services and outpatient specialties would recommend the hospital to family and friends.

90%

of families with an inpatient would recommend the hospital to their family and friends.

Building
a healthier community.

Lurie Children’s is home to dedicated pediatric experts. These experts partner with a wide array of organizations to improve the health and well-being of children locally, nationally and globally.

Our Child Health Data Lab analyzes the causes of illness and injury and prompts the creation of community-based interventions in partnership with government and community leaders. For example, the Consortium to Lower Obesity in Chicago Children (CLOCC), based at Lurie Children’s since 2002, has built a vital, broad-based network of more than 3,000 participants representing 1,200 organizations to address the obesity epidemic. CLOCC has become a national model and has partnered with the Chicago Department of Public Health to implement this critical component of Mayor Rahm Emanuel’s Healthy Chicago agenda.

Building on the success and model of CLOCC, Lurie Children’s recently launched an anti-violence consortium called Strengthening Chicago’s Youth (SCY). Already, Lurie Children’s experts are bringing together hundreds of public and private stakeholders working to curb violence in our city.

In FY2012, the hospital invested $118.1 million in community benefit programs and initiatives. This figure includes $80.5 million in losses to the hospital and our physicians due to under-reimbursement from the Medicaid program; resident and fellow training; the investments we made in public health programs like CLOCC and SCY; and support services provided to families in the hospital, such as interpreting services, social work and educational programs.

Learn more about how Lurie Children’s serves our community.

Building—through transformational philanthropy.

Philanthropy is a catalyst and driver for transformative change in our institution. In FY2012, more than $75.2 million was raised through the support of more than 50,012 donors. As of August 31, 2012, Heroes for Life: Campaign for Ann & Robert H. Lurie Children’s Hospital of Chicago had raised $626 million for the new hospital and its programs. Opening events for the hospital garnered an additional $6.4 million for the new hospital through the Gala Preview event, which raised $5.2 million and the Move for the Kids 5K Run/Walk, which raised $1.27 million. Philanthropic contributions will continue to be critically important as we pursue the best treatments and cures for our children.

Click here to help now!

Financials—
at a glance.

In FY2012, the year of our move to the new Ann & Robert H. Lurie Children’s Hospital of Chicago, the Medical Center reported its third consecutive year of strong financial performance. Pre-interest operating income for the Medical Center was $34.3 million, $1.6 million higher than last year, in spite of nearly $17 million in one-time new hospital costs. Improved payer mix, higher acuity patients, growth in outpatient visits, and strong surgical volumes contributed to the results. With more investment market volatility than prior year, Excess of Revenues over Expenses was $71.9 million, compared to $132.5 million in FY2011, which included $38.4 million in a one-time fund re-designation. Overall, balance sheet measures of liquidity, coverage, and leverage are strong and improving.

Consolidated Financial Summary

for the periods ending August 31, ($ in millions)

Statement of Operations 2012 2011
Patient Care Revenues, Net $ 608.8 $ 564.3
Grants, Gifts, and Endowment Income   65.2    64.9
Other Revenue   47.8   33.7
Total Operating Revenue $ 721.8 $ 662.9
         
Salaries and Benefits $ 400.7 $ 376.6
Supplies, Services, Other   242.0   211.5
Depreciation   44.8   42.1
Total Operating Expenses $ 687.5 $ 630.2
         
Income from Operations before interest expense $ 34.3 $ 32.7
Interest Expense   8.5   4.6
Income from Operations $ 25.8 $ 28.1
         
Other Income (Expense) Net   46.1   104.4
Excess of Revenue over Expenses $ 71.9 $ 132.5
Balance Sheet   2012   2011
Assets
Current Assets $ 215.0 $ 106.7
Investments   866.5   984.5
Property and Other   1,182.1   996.7
Total Assets $ 2,263.6 $ 2,087.9
         
Liabilities and Net Assets        
Current Liabilities $ 206.4 $ 131.6
Long-Term Debt and Other   712.5   680.4
Net Assets $ 1,344.7 $ 1,275.9
Total Liabilities and Net Assets $ 2,263.6 $ 2,087.9
Serving our Community 2012 2011
Charity Care, losses due to Medicaid reimbursement below cost of services, and other uncompensated costs $ 80.5 $ 69.8
Resident and fellow training   15.4   15.5
Language assistance services, pastoral care, social work, art and music therapies, volunteer services, transplant patient family housing and other family support services   6.7   6.8
Research funding   7.1   7.1
Community clinic support   2.9   2.9
Child advocacy programs   5.5   2.6
Per Audited Financial Statement $ 118.1 $ 104.7
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Opening
Ann & Robert H. Lurie Children’s Hospital of Chicago

After five years of planning, construction, move training and preparation, and in partnership with the City of Chicago, Ann & Robert H. Lurie Children’s Hospital of Chicago opened on June 9, 2012, in downtown Chicago, and completed the safe transfer of 127 inpatients from its former facility, Children’s Memorial Hospital, three and a half miles away. Learn More

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Celebrating
with the Community

The opening of Lurie Children’s was heralded by an eight-week period that included 20 celebratory events, beginning with a black tie Gala Preview fundraising event in April and ending with a Ribbon-Cutting Ceremony a few days before Lurie Children’s opened. More than 15,000 individuals previewed the hospital during this time period. Learn More

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Making
an Economic Impact

The construction of Lurie’s Children’s had a strong economic impact in Chicago. Construction created approximately 3,000 jobs and
$168 million in salary and benefits to construction tradespeople. Seventy-three percent of contractors on the project were from Illinois, while 27 percent of contractors and suppliers were Chicago businesses. The hospital exceeded by 21 percent its voluntary goal of $100 million in participation by minority/women-owned firms, with 95 contracts awarded to 67 firms.

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Recognized
for Innovative Design

Lurie Children’s, through the leadership of its new hospital project team and its design and construction partners, was recognized with several awards spotlighting the new facility’s innovative design. These include the Healthcare Facilities Symposium’s Symposium Distinction Team Award; the Caritas Project’s Generative Space Award; and the Modern Healthcare Design Award Citation. Additionally, in December Lurie Children’s hosted the Children’s Hospital Association’s 2012 International Facilities Design and Capacity Conference. The hospital’s leadership team opened the conference, highlighting some of the unique aspects of the new hospital, the move and early impact of the new facility. Learn More

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Safety Net
for Children

Despite unprecedented threats to government funding for Medicaid, Lurie Children’s remains committed to partnering with the State of Illinois to provide essential healthcare for children who rely on this program.  Medicaid is the single largest insurer of children in our country, and half of all children in Illinois are insured by Medicaid. Lurie Children’s treats more children insured by Medicaid than any other hospital in Illinois. Because more than 50 percent of our inpatients are insured by Medicaid, Lurie Children’s was among the 19 hospitals deemed a “safety net hospital” by the State of Illinois in 2012. 

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Nationally Recognized
for Exceptional Care

Lurie Children’s was among only 12 children’s hospitals nationwide to qualify for the Honor Roll in the 2012-2013 U.S.News & World Report Best Children’s Hospitals. Lurie Children’s has five specialties ranked in the top 10, including Urology (#6), Kidney Diseases (#7), Gastroenterology (#8), Cancer (#10) and Orthopaedics (#10). For the second time, Lurie Children’s earned the Top Performer award from The Joint Com­mission for pediatric asthma care, placing us among just seven hospitals in the U.S. to achieve this recognition.

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Recruiting
the Best

Recruitments this year included
Arun K. Gosain, MD, as Head, Division of Plastic Surgery and Professor of Pediatrics at Northwestern University Feinberg School of Medicine, and Z. Leah Harris, MD, Head, Division of Critical Care Medicine and Associate Professor of Pediatrics at Feinberg. Dr. Gosain came from Rainbow Babies and Children’s Hospital in Cleveland, OH. Dr. Harris was recruited from Vanderbilt University School of Medicine and Monroe Carell Jr. Children’s Hospital at Vanderbilt in Nashville, TN.

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Focusing
on Quality

The hospital’s commitment to providing the highest quality medical care resulted in the creation of a new position, Chief Clinical Excellence Officer, held by Maureen Mahoney, under the direction of Michael Kelleher, MD, Interim Chief Medical Officer. She will head a new organizational structure that will better integrate the hospital’s efforts in patient safety, quality, clinical informatics and patient experience. Mahoney began her career at the hospital as a nurse in 1984 and most recently served as Chief of Transition and Occupancy Planning for the last four years.

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Milestone
1,000th Stem Cell Transplant

The Pediatric Stem Cell Transplant Program performed its 1,000th life-saving transplant since 1992, making it one of the nation's largest pediatric programs. The program has pioneered the use of reduced intensity and reduced toxicity transplants, as well as the use of peripheral blood stem cells in pediatric patients. Learn More

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Promising
new drug therapy for Alzheimer’s, multiple sclerosis and brain injury

Mark Wainright, MD, PhD, director of the Center for Interdisciplinary Research in Pediatric Critical Illness & Injury at Ann & Robert H. Lurie Children’s Hospital of Chicago Research Center and an attending physician in Neurology and Critical Care Medicine at Lurie Children’s, is participating in a study on a new class of drug developed at Northwestern University Feinberg School of Medicine. The drug shows early promise of being a “one-size-fits-all” therapy for Alzheimer’s disease, Parkinson’s disease, multiple sclerosis and traumatic brain injury by reducing inflammation in the brain. Wainwright is also the Bernard L. Mirkin Research Scholar in Pediatric Neurology. Learn More

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Training
the Brightest

The pediatric residency program at Lurie Children’s continues to attract high numbers of qualified applicants through the National Resident Matching Program. In 2012, the residency program received 1,192 applications—accounting for over 62 percent of all U.S. applications to pediatric residency programs nationwide—to fill 31 pediatric residency positions. The hospital’s three-year pediatric residency program is affiliated with the McGaw Medical Center of Northwestern University.

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"Excellence
in Life Support" Award

The Extracorporeal Membrane Oxygenation (ECMO) Program at Lurie Children’s was recognized by the Extracorporeal Life Support Organization (ELSO) with the “Excellence in Life Support” award. Hospitals designated as “Centers of Excellence” with this award are leaders in critical care and demonstrate a commitment to exceptional patient care, specialized equipment and supplies, defined patient protocols, advanced education of all staff members, and high quality standards.