Shaping a Brighter Tomorrow for Kids

The Future is Bright

Our first full year in our new facility has been one of transformation in the work we do on behalf of the more than 153,000 children we serve annually. It's also been a year of planning for the future in a changing healthcare environment. Together, we are shaping a brighter tomorrow for children. The work that we do today will impact how care is provided to the most vulnerable among us—children in need of specialized medical care.

We are uniquely positioned to provide this care, which contributes to the health and well-being of our entire community. We continue to rise in the rankings published by U.S. News & World Report this year at number eight with five specialties in the top 10. We are constantly seeking ways to partner with other providers and community advocates to improve children's lives. The future looks bright!

J. Christopher Reyes
Chairman, Board of Directors

Patrick M. Magoon
President & CEO

Highlights

In a time of national change for the delivery of healthcare, Lurie Children's is forging a sustainable business model for a pediatric healthcare system that enables higher quality, better outcomes and lower costs through stronger partnerships and more coordinated care.

The Future is Bright

Video: A Brighter Future for Kaysen

Hours after birth, baby Kaysen was rushed by ambulance to Lurie Children's in acute cardiac arrest. In the days and weeks to come, Kaysen would face a second cardiac arrest and then a heart transplant. Watch a video about Kaysen's lifesaving treatment in one of the few pediatric units of its kind: the Regenstein Cardiac Care Unit.



  • From New Lenox to Geneva to Waukegan
  • From New Lenox to Geneva to WaukeganLurie Children's now provides care at 12 partner hospitals and 12 outpatient sites across the greater Chicago metro area. In the last year services expanded to include Presence Mercy Medical Center in Aurora, Vista Medical Center East in Waukegan, pulmonary services at La Rabida Children's Hospital in Chicago and an expanded outpatient center in Lake Forest.

  • Almost Home Kids
  • Almost Home KidsSince opening in 1999, the model of care Almost Home Kids offers has saved the State of Illinois millions of dollars in Medicaid expenses. The not-for-profit organization, which provides transitional and respite care for children who are medically complex outside of the hospital, became an affiliate of the hospital in fall 2013. Children discharged from Lurie Children's account for approximately 65 percent of the children transferred to Almost Home Kids.

  • Center of Excellence
  • Center of ExcellenceThe multidisciplinary Center of Excellence was established to unify critical teams that focus on providing an excellent care experience for our patients and their families. This new infrastructure has increased collaboration and strengthened the alignment of strategic plans. This year the Center of Excellence provided support for process improvement projects and other initiatives. In addition, it was an integral part of the launch of the Family Initiated Rapid Safety Team (FIRST) which allows inpatient families to request urgent assistance if they have concerns about their child's medical condition or clinical care.

  • Recruiting the Best
  • Dana M. Thompson, MD, joined Lurie Children's as Head, Division of Otolaryngology. She was previously at the Mayo Clinic, where she was Chair of the Division of Pediatric Otorhinolaryngology and Associate Professor of Otolaryngology at the Mayo College of Medicine.Recruiting the Best

  • Training tomorrow's leaders
  • Training tomorrow's leadersThe pediatric residency program at Lurie Children's, which is affiliated with the McGaw Medical Center at Northwestern University, continues to attract excellent candidates through the National Resident Matching Program. In 2013, the residency program received 1,406 applications to fill 31 positions in the Department of Pediatrics, accounting for 69 percent of all U.S. applications to pediatric residency programs, a seven percent increase over last year.

  • Strategic Planning for Pediatric Research
  • Strategic Planning for Pediatric ResearchA vision for the future of pediatric research was mapped out in a long-range strategic plan for Lurie Children's Research Center. Aggressive faculty recruitment and additional laboratory space in Streeterville will provide enhanced synergies with Northwestern University and enable Lurie Children's to continue to attract the world's most innovative pediatric physician-scientists and researchers.

  • Center for Gender, Sexuality and HIV Prevention Opens
  • Center for Gender, Sexuality and HIV Prevention OpensThe Center for Gender, Sexuality and HIV Prevention, headed by Robert Garofalo, MD, opened in the Uptown community on Chicago's North Side. The center is the only one of its kind in the Midwest.

  • Innovative ICU Design Recognized
  • Innovative ICU Design RecognizedThe Lefkofsky Pediatric Intensive Care Unit received the 2013 ICU Design Citation Award from the Society of Critical Care Medicine National Congress. The award is given to an intensive care unit that best resolves both functional and humanitarian issues in a unique and complementary manner.

Shaping a better community for kids

The dedicated pediatric experts of Lurie Children's are committed to caring for children well beyond the walls of the hospital. These experts partner with a wide array of community and educational organizations to improve the health and well-being of children locally, nationally and globally.

In FY2013, the hospital invested $130.1 million in community benefit programs and initiatives. This figure includes $93 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 Consortium to Lower Obesity in Chicago (CLOCC) and Strengthening Chicago Youth (SCY); and support services provided to families in the hospital, such as interpreting services, social work and educational programs.

  • Assessing the community's health needs
  • Assessing the community's health needsUnder the leadership of Jenifer Cartland, PhD, Administrator, Data Analytics and Reporting, Lurie Children's conducted and implemented a community health needs assessment in order to identify barriers to good health and well-being for Chicago children and adolescents and to make recommendations that will guide the hospital's efforts to improve their health and well-being. With input from representatives of public health agencies, organizations that serve communities in Chicago that experience health disparities, and the hospital's patient population, the assessment's implementation plan builds on Lurie Children's decades long commitment to advocacy and community partnerships. The plan focuses on eleven specific causes of poor health outcomes for children that were identified as targeted priority areas in the community health needs assessment.

  • Youth Violence Prevention Program Recognized by NIH
  • Youth Violence Prevention Program Recognized by NIHLurie Children's Strengthening Chicago's Youth (SCY) anti-violence program was awarded a three-year, $30,000 grant from the National Institutes of Health to support the program's efforts in developing a community-academic partnership focused on youth development and violence prevention. Led by Karen Sheehan, MD, Medical Director, Injury Prevention and Research Center, and Rebecca Levin, Strategic Director, Injury Prevention and Research Center, the SCY program also receives support from the hospital's Founders' Board.

  • Advocating for children with food and other allergies
  • Advocating for children with food and other allergiesUnder the leadership of Jacqueline Pongracic, MD, Division Head of Allergy and Immunology, Lurie Children's advocated for the enactment of The School Access to Emergency Epinephrine Act introduced by U.S. Senator Dick Durbin (D-IL) and U.S. Senator Mark Kirk (R-IL). This federal legislation encourages improved school access to epinephrine auto-injectors to be used if students have life-threatening allergic reactions. Senators Durbin and Kirk announced the introduction and celebrated the passage of this important legislation at Lurie Children's.

Philanthropy

Philanthropy has been vital to the hospital for well over a century. It remains so today, enhancing and advancing programs and research to create brighter futures for children. In FY2013, more than $46.7 million was raised through the support of more than 51,170 individuals, groups, corporations and foundations.

Celebrating a heroic campaign

Heroes for Life: Campaign for Ann & Robert H. Lurie Children's Hospital of Chicago, the most successful campaign in the hospital's history and one of the nation's largest on behalf of children's health, concluded with $675 million raised. The comprehensive campaign made possible the state-of-the-art new hospital, funded its programs and services, and ushered in a new era in pediatric medicine and research.

Campaign donors and civic leaders gathered to celebrate the campaign's success in May. Lester Crown, an honorary campaign chair and the hospital's longest-serving board member, was presented with the Children's Trust Award during the event.

Philanthropy statistic

Financials

Even with a full year of higher new hospital costs, Fiscal Year 2013 operating performance at the hospital exceeded expectations, with strong cash flow and continued balance sheet improvement. Pre-interest operating income was $29.7 million, only $4.6 million lower than last year, in spite of FY13 depreciation which was $17.3 million greater than last year.

Inpatient volume growth, particularly in higher acuity services together with improved payer mix contributed to this strong performance. The Hospital, Lurie Children's Medical Group, and the Pediatric Faculty Foundation all surpassed their budgeted targets for the year. Operating cash flow was strong at $91.8 million, compared to $79.1 million last year. Our balance sheet continues to improve, with total cash and investments of $916.2 million, up 5.7% and long-term debt of $457.0 million, down 19.0% from prior year.

Consolidated Financial Summary

for the periods ending 8/31, ($ in millions)

Statement of Operations 2013 2012
Patient Care Revenues, Net $ 645.2 $ 599.6
Grants, Gifts, and Endowment Income $ 62.5 $ 65.2
Other Revenue $ 51.8 $ 47.8
Total Operating Revenue $ 759.5 $ 712.6
Salaries and Benefits $ 428.3 $ 400.7
Supplies, Services, Other $ 239.4 $ 232.8
Depreciation $ 62.1 $ 44.8
Total Operating Expenses $ 729.8 $ 678.3
Income from Operations before interest expense $ 29.7 $ 34.3
Interest Expense $ 24.7 $ 8.5
Income from Operations $ 5.0 $ 25.8
Other Income (Expense) Net $ 37.8 $ 46.1
Excess of Revenue over Expenses $ 42.8 $ 71.9
Download printable version here.

Balance Sheet

2013 2012
Assets
Current Assets $ 141.1 $ 215.0
Investments $ 916.2 $ 866.5
Property and Other $ 1,106.2 $ 1,182.1
Total Assets $ 2,163.5 $ 2,263.6
Liabilities and Net Assets    
Current Liabilities $ 140.5 $ 206.4
Long-Term Debt and Other $ 579.8 $ 712.5
Net Assets $ 1,443.2 $ 1,344.7
Total Liabilities and Net Assets $ 2,163.5 $ 2,263.6

Serving Our Community

2013 2012
Charity care, losses due to Medicaid reimbursement below cost of services, and other uncompensated costs $ 93.0 $ 80.5
Resident and fellow training $ 15.8 $ 15.4
Language assistance services, pastoral care, social work, art and music therapies, volunteer services, transplant patient family housing and other family support services $ 7.3 $ 6.7
Research funding $ 7.5 $ 7.1
Community clinic support $ 2.8 $ 2.9
Child advocacy programs $ 3.7 $ 5.5
Total $ 130.1 $ 118.1
Source: FY2013 Audit Report
Download printable version here.

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