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Serving our communities

October 18, 2010

Since our founding in 1882, Children's Memorial Hospital has dedicated its energy, resources, and talent to improving the health and well-being of children. This mission is as active today as it was in 1882, and it is this mission that is our guide as we look to the future.

President and CEO, Patrick Magoon, explains how we invest in the community through patient care, research, education and advocacy. Watch video »

Over the past year, Children's Memorial has sought to articulate, in a concrete way, how our mission comes to life in terms of tangible and distinctive services to our community. These "community benefits" constitute the legal justification for Children's Memorial's tax-exempt status, as well as demonstrate the essential role we play in improving the health of the children and families we serve.

As you may know, Children's Memorial is the State of Illinois' primary partner in the provision of healthcare services to Medicaid-eligible children. Families rely on Medicaid when they cannot afford or have exhausted private insurance. In State Fiscal Year 2010, Children’s Memorial provided 75 percent more combined pediatric Medicaid inpatient, outpatient and physician services than the next highest hospital in Illinois. 

At present, more than half of our patients rely on Medicaid to pay for necessary healthcare services. Since All Kids was initiated in 2006, Children’s Memorial has experienced a staggering 19 percent growth in outpatient utilization and a 13 percent growth in inpatient utilization. Medicaid does not fully reimburse Children's Memorial for the cost of providing this care and, as a result, Children's Memorial's community benefits include $32.8 million in uncompensated Medicaid services during our Fiscal Year 2010 alone.

In addition to our cornerstone role in the provision of pediatric Medicaid services, Children's Memorial provides certain community benefits that reflect the broad range of our service to children. We incur costs associated with teaching the medical students and pediatric residents for Northwestern University Feinberg School of Medicine, educating the next general of pediatric specialists. We invest in research that yields cures and improved treatment for children with medical challenges. We provide important staff support for our multi-lingual community through translation and interpretation services and social work. We recruit and support caregivers and researchers who are passionate about making our communities safer. We partner with individuals and organizations to create programs such as the Consortium to Lower Obesity in Chicago Children, the Injury Prevention and Research Center and the Illinois Violent Death Reporting System, which seek innovative solutions for children in crisis or need. Our clinical experts devote thousands of hours every year in providing expertise to governmental agencies in developing public policies that advance the well-being of children. 

Further, along with providing essential pediatric services, Children’s Memorial supports and strengthens the economic viability of the community and state.  Children’s Memorial, like hospitals across Illinois, positively impacts the economy by providing jobs for a wide range of healthcare workers, purchasing goods and services, investing in capital improvements to maintain our facilities and update major medical equipment, and renovating or building facilities to continue to provide high quality healthcare. 

While the construction industry grapples with the economic downturn, Children’s Memorial is proud that our new hospital project is helping 40 Illinois-based construction subcontractor companies remain strong. The new hospital, Ann & Robert H. Lurie Children's Hospital of Chicago, opens in summer 2012 and is more than 60 percent complete. Our project has awarded 75 percent of its construction contracts and subcontracts to Illinois companies to date. This translates to $474 million in economic impact to Illinois. In addition, more than 600 workers are onsite each day, from sheet metal workers and pipefitters to electricians and painters. In total, the new hospital will directly generate approximately 3,000 new construction-related jobs.

It is an honor to work with the many outstanding members of the Children's Memorial family who, year in and year out, offer their time and talent to further our mission and benefit the community because it is the right thing to do. 

Please send me your comments, read more about how Children’s Memorial serves its communities and watch a video.


Content last reviewed: March 2011