Northwestern Memorial Foundation

What it reported doing in 2009

Northwestern Memorial HealthCare (NMHC) is the not-for-profit corporate parent of Northwestern Memorial Hospital (NMH), Northwestern Lake Forest Hospital (NLFH) and Northwestern Memorial Foundation (NMF). Collectively, these organizations and their subsidiaries are referred to in this document as Northwestern Memorial. NMH is a not-for-profit corporation and is part of an academic medical center in downtown Chicago, Illinois that provides a full range of adult inpatient and outpatient services in an educational and research environment. The main patient care sites of NMH are the Feinberg and Galter pavilions, Prentice Women's Hospital, Olson Pavilion and Stone Institute of Psychiatry. NLFH is a not-for-profit corporation that provides patient care services at its main hospital in Lake Forest, Illinois and at many locations across Lake County and northern Cook County, with a large outpatient campus in Grayslake. NMF is a not-for-profit organization that provides fundraising and grantmaking in support of the mission and strategic goals of NMH and NLFH. Northwestern Memorial prepares an Annual Nonprofit Hospital Community Benefits Plan Report. That report is filed with the Illinois Attorney General's Office and is available on request. A summary version is also available on the nmh.org website. The following is the "Executive Summary and Background" section from the report. With a mission-driven commitment to providing quality medical care, regardless of the ability to pay, Northwestern Memorial has, in recent years, significantly broadened its efforts to improve the health of the most medically underserved members of its community by: A. Providing approximately $276.7 million in community benefit in fiscal year 2010 including charity care, other unreimbursed care, research, education and other community benefit. B. More than doubling the amount of charity care provided over the last five years, resulting in approximately $44 million in hospital services provided to those who could not afford to pay in fiscal year 2010. C. Providing more than $71.5 million in funding for research and medical education in fiscal year 2010 including performing more than 2,100 clinical research studies and training more than 900 medical students, residents and fellows. D. Funding and implementing long-term community-based programs to help individuals better manage conditions such as diabetes and breast health. E. Supporting Chicago's safety net at every level by providing assistance to community-based hospitals, Federally Qualified Health Centers and free clinics; through the sharing of clinical information, information technology systems; funding for targeted programs; and volunteer efforts. F. Participating in community-based public health initiatives aimed at improving nutrition, promoting exercise and reducing violence. For 146 years, NMH and its predecessor institutions, Passavant and Wesley Memorial hospitals, have served the people of Chicago. The commitment to provide healthcare, regardless of the ability to pay, reaches back to the founding principles of Passavant and Wesley and continues to be integral to our Patients First mission. Importantly, it provides the foundation for our mission-driven commitment to improve the health of the communities we serve. This commitment is advanced by focusing on enhancing patient access, safety and quality through hospital-based care and services and through partnerships with community health centers that date back more than 50 years. As the primary teaching hospital for Northwestern University Feinberg School of Medicine (Feinberg), the more than 1,600 physicians on the medical staff at NMH carry faculty appointments at Feinberg and represent virtually every medical specialty. Through Northwestern Medicine(TM), Northwestern Memorial shares a vision with Feinberg to work to positively impact the future of healthcare through exceptional patient care, medical education and breakthrough scientific research

Financial Efficiency

• Mission deployment rate: Limited
• Program expense ratio: Limited
• Fundraising efficiency: Limited

Transparency & Controls

• Consistency checks: 100%; rating input score 100; 63rd percentile among comparable filings
• Pay-setting controls: 6 of 6 controls in place; rating input score 100
  • Compensation committee: Pass
  • Independent consultant: Pass
  • Other Form 990s reviewed: Pass
  • Written employment contract: Pass
  • Compensation survey or study: Pass
  • Board or committee approval: Pass
• Foreign activity oversight: Limited
• Grant itemization coverage: 99.9%; rating input score 100; 37th percentile among comparable filings
• Major donor itemization: Yes; rating input score 100
• Related-party transparency: Limited

Accountability

• Independent voting board: 94.8%; rating input score 95; 62nd percentile among comparable filings
• Governance controls: 9 of 9 controls in place; rating input score 100
  • Conflict-of-interest policy: Pass
  • Whistleblower policy: Pass
  • Document-retention policy: Pass
  • CEO compensation review process: Pass
  • Other executive compensation review process: Pass
  • Form 990 shared with the board: Pass
  • Board meeting minutes documented: Pass
  • Audit committee oversight: Pass
  • Independent financial-statement audit: Pass

Sustainability

• Operating margin: 37.9%; rating input score 98; 98th percentile among comparable filings
• Total-asset coverage ratio: 15.11; rating input score 99; 99th percentile among comparable filings
• Liabilities to assets ratio: 0.07; rating input score 96; 96th percentile among comparable filings
• Officer compensation ratio: 4%; rating input score 16; 16th percentile among comparable filings

Growth

• Program expense growth: Limited
• Revenue growth: Limited
• Asset growth: Limited