Children's Mercy Hospital
2401 Gillham Rd
Kansas City MO 64108
Web and Phone Contact
Telephone (816) 234-3000
Mission Statement

Improve the health and well-being of children by providing comprehensive, family-centered health care and committing to the highest level of clinical and psychosocial care, and to research, academic and service excellence.

Leadership
CEO/Executive Director Dr. Randall L. O'Donnell
Board Chair Mrs. Debbie Sosland-Edelman
Board Chair Company Affiliation Sosland Foundation
History and Background
Year of Incorporation 1897
Financial Summary
Revenue Expense Area Graph

Comparing revenue to expenses shows how the organizations finances fluctuate over time.

Source: IRS Form 990

 Breakdown
Net Gain/Loss:    in 
Note: When component data are not available, the graph displays the total Revenue and/or Expense values.
Statements
Mission Statement

Improve the health and well-being of children by providing comprehensive, family-centered health care and committing to the highest level of clinical and psychosocial care, and to research, academic and service excellence.

Background Statement

Founded in 1897, Children’s Mercy is one of the nation’s top pediatric medical centers. With not-for-profit hospitals in Missouri and Kansas, and numerous specialty clinics in both states, Children’s Mercy provides the highest level of care for children from birth through the age of 21. U.S. News & World Report has repeatedly ranked Children’s Mercy as one of “America's Best Children's Hospitals.” For the fourth time in a row, Children’s Mercy has achieved Magnet nursing designation, awarded to fewer than seven percent of all hospitals nationally, for excellence in quality care. Its faculty of more than 700 pediatric subspecialists and researchers across more than 40 subspecialties are actively involved in clinical care, pediatric research, and educating the next generation of pediatric subspecialists. Thanks to generous philanthropic and volunteer support, Children’s Mercy provides medical care to every child who passes through its doors, regardless of a family’s ability to pay. For more information about Children’s Mercy and its research, visit childrensmercy.org.  

Impact Statement

We believe improving the lives of the kids in our community should be a shared effort among us all. To that end, no one is better at delivering specialized pediatric health care than Children’s Mercy. We are the experts at treating kids. From our 750-plus physicians, 2,800 nursing professionals and 4,500 colleagues in every discipline from Child Life, Social Work, Family-Centered Care, Research, Spiritual Services and more, everything we do is focused solely on transforming children’s lives. No other health care system in our region can match what we provide.

  • We served 1 in every 3 kids in the greater Kansas City area.

  • We provided $215,756,874in community benefit including $172,145,062in uncompensated care [most recent available information FY2016].

  • We recorded more than half a million outpatient visits for the first time as families sought care, and answers, and hope. Nearly 200,000 of those visits were made to our emergency rooms and urgent care centers.

  • We performed more than 20,000 surgeries for the first time, more than three-fourths of them on an outpatient basis. 

Our doors are open to every child within our community – regardless of the family’s ability to pay. Our community depends on us, and we have delivered for 120 years.
Needs Statement

For more than a century, Children’s Mercy has been providing world-class medical care to every child who passes through its doors – doors that remain open thanks to the generous support of the community. Recent years have seen a sharp increase in the number of patients facing complex and chronic medical conditions who need our services. This, coupled with shifts in payor mix, reductions in reimbursement rates and changing regulatory environment all mean increased pressure on our system.

In order to ensure access, quality and value in pediatric health care for the patients and families we serve, we must build and maintain the proper facilities, clinical services, research programs, faculty and staff.

  • We must ensure we have the resources to add and maintain space, as well as build on our comprehensive service lines to care for the growing number of children who need us.

  • We must also build upon our growing knowledge in pediatric medicine through research that will find the next cure for a childhood disease.

  • We must train and guide the next generation of pediatric health care providers, while setting the gold standard in pediatric medicine in Kansas City and across the globe.

Service Categories
Ambulatory & Primary Health Care
Pediatrics Research
Sexual Assault Services
Areas of Service
MO
KS
MO - Jackson County
MO - Clay County
MO - Platte County
KS - Wyandotte County
KS - Johnson County
MO - Jackson County Urban Core
KS - Wyandotte County Urban Core
KS - Fort Bend
KS - Franklin County
KS - Leavenworth County
MO - Buchanan
MO - Cass County
MO - Eastern Jackson Co
MO - Liberty
CEO/Executive Director/Board Chair Statement

Rooted in four generations of philanthropic leadership, Debbie Sosland-Edelman Ph.D. has a charitable spirit and commitment to community at the core of her being. Giving back, for Debbie, is also simply a natural extension of being a mother. As a newborn, Debbie’s son, Alex, spent 10 days in the NICU at Children’s Mercy. The quality of neonatal care Children’s Mercy provides and the compelling need for it in the community, coupled with the strength of the hospital’s reputation, inspired the Sosland Foundation’s generous support of the NICU, neonatology and the Elizabeth J. Ferrell Fetal Health Center at Children’s Mercy.

Driven by her maternal spirit for all children, Debbie continues the proud tradition of her family by contributing personally, serving on the Children’s Mercy Board of Directors as Chairman as well as serving as the Executive Director of the Sosland Foundation. 

“My connection to and love for this special hospital started as a mother caring for my own child. Today, I feel called to look out for other children and families who need Children’s Mercy’s expert care. In a sense, my role as a mother now extends beyond my child and my family to all children and all families. 

“Everyone in our community knows that Children’s Mercy is the place you have to go if your child is sick. Children’s Mercy ranks among the best in the country in every pediatric specialty. For the fourth time in a row, Children’s Mercy has achieved Magnet nursing designation, awarded to fewer than seven percent of all hospitals nationally, for excellence in quality care. Its faculty of more than 700 pediatric subspecialists and researchers across more than 40 subspecialties are actively involved in clinical care, pediatric research, and educating the next generation of pediatric subspecialists. 

“Children’s Mercy is a treasure. It’s the place all kids come to get well, regardless of a family’s ability to pay. The only focus is children. “For children. For Families. For answers.” is the hospital’s new advertising tagline, and it appropriately sums up why the hospital is here. 

“Children’s Mercy is at an important point in its 120-year history. The hospital’s new Research Institute is going to bring about even better treatments and cures. With a focus on physical growth and growth in knowledge through research, Children’s Mercy is poised to make transformational contributions to pediatric medicine … here in our community and around the world. By continuing our 120-year history of generous community support, it will happen. And, I am proud to be part of a legacy so important.”

Programs
Description Children's Mercy is a pediatric medical center that provides comprehensive and specialized care to children from a 135-county service region in western Missouri and eastern Kansas.
Program Budget $377,195,000.00
Category Health Care, General/Other Inpatient/Hospital Care
Population Served Children and Youth (0 - 19 years), ,
Program is linked to organization's mssion Yes
Program Frequently Assessed Yes
Short-Term Success Each child and family who come to Children’s Mercy receives the highest level of health care services. Patients and their families are treated with compassion in a family-centered environment that recognizes their physical, emotional, financial, social and spiritual needs.
Long-Term Success

Healthy children, healthy families, healthy communities.

Program Success Monitored By Children's Mercy is dedicated to providing pediatric care that is safe, evidenced-based and family centered. The Hospital's Patient Care Services department and Quality Council lead initiatives for continuously improving patient care and clinical outcomes. In 2005, Children's Mercy created the Evidence-Based Medicine Collaborative. The goal of the Collaborative is to develop and refine practitioners’ skills and to create an institutional environment which allows the integration of the best available scientific evidence with clinicians’ practice experiences in the context of improving the care for each patient.
Examples of Program Success Children's Mercy offers the area's only Level 1 Pediatric Trauma Center and Emergency Department. Our Level IIIc Intensive Care Nursery provides a level of care unmatched in the region, including ECMO, high frequency oscillation, nitric oxide and other advanced treatments. We are also the only hospital in the region where a board-certified pediatric intensive-care specialist is on hand 24 hours per day to aid in recovery. The hospital offers liver, kidney and bone marrow transplant programs with patient outcomes among the best in the nation. Institutionally, Children’s Mercy Hospitals and Clinics is fully accredited by the Joint Commission on Accreditation of Healthcare Organizations (JCAHO) and adheres to the highest practices and standards set forth by the commission. Children's Mercy was also the first hospital in Missouri or Kansas, the third children's hospital in the nation and the 66th hospital overall to receive Magnet Recognition, nursing's highest honor.
Description World-class, compassionate pediatric care is provided to all children in the region, regardless of their family's ability to pay.
Program Budget $19,000,000.00
Category Health Care, General/Other Patient Care/Health Care Delivery
Population Served Children and Youth (0 - 19 years), Poor,Economically Disadvantaged,Indigent,
Program is linked to organization's mssion Yes
Program Frequently Assessed Yes
Short-Term Success All children will receive the same level of extraordinary pediatric medical care, regardless of a family's income, race, ethnicity or creed.
Long-Term Success Healthier children, healthy families, healthy communities.
Program Success Monitored By Children's Mercy maintains an open-access policy for all children in our region. This is a tradition dating back to our founding in 1897.
Examples of Program Success Each year, Children’s Mercy provides millions of dollars of charity care to children whose families cannot afford to pay, plus absorbing much more in Medicaid shortfalls. We are proud of staying true to our founding mission of providing medical services to children who are uninsured or under-insured, and of offering the same world-class care to every child who comes through our doors, regardless of the family’s financial situation.
Description

By building a robust pediatric research enterprise at Children’s Mercy – integrating science and medicine – we will ensure that ALL children receive the precise therapies they need and families receive the answers they deserve.

Program Budget $12,000,000.00
Category Medical Research, General/Other Medical Research, General/Other
Population Served Children and Youth (0 - 19 years), ,
Program is linked to organization's mssion Yes
Program Frequently Assessed Yes
Short-Term Success

To accelerate ever more precise preventions, diagnoses and treatments for complex childhood diseases to children, Children’s Mercy will require the right infrastructure. With help from the community, Children’s Mercy will build an effective, sustainable research organizational structure that will advance and strengthen our mission.

Long-Term Success
  • Markedly enhance our ability to safely and effectively treat children of all ages and with rare diseases, using therapy based on an individual child’s unique attributes.

  • Minimize delayed diagnoses and painful and costly medical procedures for children.

  • Reduce health care costs and provide greater value for families.

  • Increase opportunities to garner support from funding agencies investing in translational biomedical research such as NIH, PCORI, CDC and research foundations.

  • Transport and apply our findings to other pediatric centers.

  • Elevate our hospital and education partners, as well as continue to strengthen The University of Kansas Cancer Center’s comprehensive cancer designation.

  • Gain recognition by biomedical companies as an incubator for the development of novel therapeutic approaches for infants, children and adolescents.

  • Propel Children’s Mercy to a position as an international leader in clinical care and research.

  • Define Kansas City as a medical destination for pediatric patient families, physicians, clinicians, scientists and students from around the globe.

Program Success Monitored By

The Children's Research Institute

Examples of Program Success

Children’s Mercy established the Children’s Research Institute in July 2015. The Institute, led by internationally recognized scientist Tom Curran, PhD, FRS, will build on our foundation of clinical excellence to expand our translation research programs – weaving research into every facet of clinical care. 

Our current momentum and future growth in pediatric research and medical innovation will be centralized, initially, around four key areas identified in our strategic plan: Health Outcomes, Genomics, Clinical Pharmacology and Health Care Delivery. The recently opened Core Biorepository is state-of-the-art and the only one of its kind in the region. It is designed to provide a centralized, secure specimen storage facility to bolster current and future research.

Description

Children's Mercy Hospital is committed to excellence in graduate medical education. The Hospital is an accredited Accreditation Council for Graduate Medical Education (ACGME) Sponsoring Institution and supports more than 20 fellowship programs for physician specialty and subspecialty training. Children's Mercy is an affiliated teaching hospital and the Department of Pediatrics for the UMKC School of Medicine and provides the core Pediatrics rotation for the Kansas City University of Medical and Biological Sciences.

Program Budget $19,000,000.00
Category Health Care, General/Other Patient Care/Health Care Delivery
Population Served Children and Youth (0 - 19 years), General/Unspecified, General/Unspecified
Short-Term Success Our short term success is defined by successful recruiting, physician success in achieving Board Certification and trainee program satisfaction.
Long-Term Success Our teaching program's long term success is defined by the quality of pediatric medical care in the community.
Program Success Monitored By Success for our medical education program is monitored by Children's Mercy Hospital's Department of Graduate Medical Education and the University of Missouri-Kansas City School of Medicine.  Success is monitored by ACGME program accreditation and successful placement of physicians in the community.
Examples of Program Success Children's Mercy's Pediatric Residency Program is one of the finest in the Midwest. Residents in Medicine and Pediatrics, Family Medicine, Emergency Medicine, Surgery and several surgical sub-specialties receive pediatric training at Children's Mercy. We have visiting physicians and surgeons from China, Panama, India, Peru, Brazil, Japan, Ukraine and Egypt who seek observership and training at our hospital and return to their home country to practice the same.  Our hospital is also the home of the nation's first Pediatric Emergency Medicine Fellowship. Pediatric fellows also receive training in the sections of Asthma/Immunology, Critical Care, Developmental Medicine, Endocrinology, Gastroenterology, Hematology/Oncology, Infectious Disease, Neonatology, Nephrology, Pathology, Surgery, Pediatric Surgical Critical Care, Pediatric Critical Care, Child Neurology, Child Abuse and Neglect, Pediatric Dermatology, Pediatric Ophthalmology and Optometry, Pediatric Otolaryngology, Pediatric Radiology, Pediatric Rehab Medicine, Pediatric Pharmacology, Pediatric Dentistry and Pediatric Cardiology.
CEO Comments

Children have a remarkable way of asking questions. Their natural curiosity drives them to ask “Why this?” “Why that?” and, perhaps my favorite, “Are we there yet?”

At Children’s Mercy, we’re just like the children we serve in that respect. We are driven by a natural curiosity and a desire for answers. For children and their families.

And because of the help we receive from the community, we came up with a lot of answers in fiscal year 2017. In fact, it was one for the record books.

-      We again ranked among the top children’s hospitals by US News and World Report.

-      We were awarded Magnet Designation for the fourth time last year and were told by the surveyors they are likely never to find a more outstanding example of quality health care, until they return to Children’s Mercy.

-      We were named a recipient of Microsoft Corp.’s 2017 Health Innovation Awards for our Cardiac High Acuity Monitoring Program (CHAMP). This program combines traditional single-ventricle home monitoring, a service where nurse coordinators provide triage at home for highly fragile infants, with an innovative new app developed by the Ward Family Heart Center team at Children’s Mercy.

-      We recorded more than half a million outpatient visits for the first time as families sought care, and answers, and hope. Nearly 200,000 of those visits were made to our emergency rooms and urgent care centers.

-      We performed more than 20,000 surgeries for the first time, more than three-fourths of them on an outpatient basis.

The never-ending quest for answers is not an easy one. But the children keep asking: Are we there yet?

I can assure them that we won’t stop until we are.

Executive Director/CEO
Executive Director Dr. Randall L. O'Donnell
Term Start Jan 1993
Experience

Dr. O'Donnell has served as Children's Mercy Hospital's president and chief executive officer since 1993. Before coming to Kansas City, he spent 13 years as chief executive officer of Arkansas Children's Hospital in Little Rock and previously was associate administrator of The Children's Hospital of Buffalo, New York. Dr. O'Donnell earned his bachelor's degree magna cum laude from California Lutheran College and his doctorate in health and health administration from the University of Iowa. Dr. O'Donnell is a national leader in the field of psychosocial services within pediatric health care and led efforts in Congress to obtain federal funding for children's teaching hospitals. He has volunteered for various organizations devoted to children's health care, including service in China, Russia, Romania, Cambodia and Jamaica. Dr. O'Donnell is a member of the Children's Hospitals International Executive Forum (CHIEF); a member of the Board of Trustees of the Midwest Research Institute; a member of the Board of Trustees of the University of Missouri-Kansas City; a member of the Kansas City President's Organization; a member of the Community Council of Partnership for Children; and a member of the FRA Policy Committee of the Missouri Hospital Association. He is a past president of MHA's Kansas City District Council, former chairman of the Hospital Leadership Advisory Council of the Association for the Care of Children's Health; former board member of the National Association of Children's Hospitals and Related Institutions; and former chairman of the Osmond Foundation/Children's Miracle Network.

Co-CEO/Executive Director
Term Start 0
Compensation Last Year
Former CEOs
NameTerm
Dr. Richard L Dreher Jan 1970 - Dec 1986
Mr. Lawrence McAndrews Jan 1986 - Dec 1992
Senior Staff
Title Executive Medical Director, Executive Vice President
Experience/Biography  

 

Charles C. Roberts, MD, has served as Executive Vice President/Executive Medical Director for Children'sMercyHospitalsand Clinics since July, 2010. He previously served as Vice President/Associate Executive Medical Director from 1996-2010 and as Medical Director for Children's Mercy South from 1997-2010. He also served as Chief of the Section of Gastroenterology from 1980-2008.

 

Dr. Roberts is Professor of Pediatrics at the University of Missouri-Kansas City School of Medicine and served as the hospital's Medical Staff President in 1993-1994. He is board-certified in pediatric gastroenterology.

 

Dr. Roberts received his medical degree fromChicagoMedicalSchoolin 1975 and completed his residency in pediatrics at Children'sMercyHospital. He completed a fellowship in pediatric gastroenterology at theUniversityofUtahin 1980, at which time he returned to Children's Mercy as chief of gastroenterology.

Title Executive Vice President and Co-Chief Operating Officer
Experience/Biography Jo Stueve, a native of Kansas City, received her bachelor's degree from the University of Kansas in 1971 and her master's degree in health services administration from KU in 2002, where she received the Bret Hammig Award as outstanding student. Jo came to Children's Mercy in 1988 as a supervisor in the commercial billing department. She was later promoted to director, and in 1994 was named executive director of the hospital's managed care department. She was promoted to vice president in 1997, and later expanded her duties to become Vice President of Patient Financial Services and Managed Care. In 2004, Jo was named Senior Vice President for Administrative Services, and in 2006 she was again promoted to Executive Vice President and Co-Chief Operating Officer.
Title Executive Vice President and Co-Chief Operating Officer
Experience/Biography Karen Cox, RN, Ph.D., CNAA has been with Children's Mercy Hospital since 1986, where she began as the head nurse for the Infectious Disease unit, then served as manager for Hematology/Oncology and then was promoted to Senior Vice President for Patient Care Services. In 2006, she was promoted again to Co-Chief Operating Officer. Dr. Cox holds a bachelor's degree in nursing from the University of Kansas and a master's degree and Ph.D. in nursing from the University of Missouri-Kansas City. She also is professionally certified as a Critical Care Registered Nurse, a Certified Pediatric Oncology Nurse, a Pediatric Nurse Practitioner and a Certified Nursing Administrator Advanced. In 2005 she became one of only a few nurses in the Kansas City region to be selected for fellowship in the American Academy of Nursing.
Title Executive Vice President / Chief Admin Officer
Staff
Paid Full-Time Staff 8000
Paid Part-Time Staff 0
Volunteers 864
Paid Contractors 0
Retention Rate 87%
Formal Evaluations
CEO Formal Evaluation Yes
CEO/Executive Formal Evaluation Frequency Annually
Senior Management Formal Evaluation Yes
Senior Management Formal Evaluation Frequency Annually
Non-Management Formal Evaluation Yes
Non-Management Formal Evaluation Frequency Annually
Plans & Policies
Organization Has a Fundraising Plan Yes
Organization Has a Strategic Plan Yes
Management Succession Plan Yes
Organization Policy and Procedures Yes
Nondiscrimination Policy Yes
Whistleblower Policy Yes
Document Destruction Policy Yes
Collaborations
Children’s Mercy has teaching relationships with the University of Missouri--Kansas City’s Schools of Medicine, Dentistry, Pharmacy and Nursing as well as 20 other nursing programs. Children's Mercy is a founding partner and the pediatric arm of the Kansas City Area Life Sciences Institute. The hospital also has collaborative agreements for research activities with the University of Kansas, Midwest Research Institute and the Stowers Institute.
External Assessment and Accreditations
Assessment/AccreditationYear
Joint Commission on Accreditation of Healthcare Organizations (JCAHO) - Ambulatory Care Accreditation2002
Joint Commission on Accreditation of Healthcare Organizations (JCAHO) - Home Care Accreditation2005
Joint Commission on Accreditation of Healthcare Organizations (JCAHO) - Hospital Accreditation2005
Joint Commission on Accreditation of Healthcare Organizations (JCAHO) - Laboratory Services Accreditation2005
Joint Commission on Accreditation of Healthcare Organizations (JCAHO) - Home Care Accreditation2008
Joint Commission on Accreditation of Healthcare Organizations (JCAHO) - Hospital Accreditation2008
Joint Commission on Accreditation of Healthcare Organizations (JCAHO) - Ambulatory Care Accreditation2011
Joint Commission on Accreditation of Healthcare Organizations (JCAHO) - Behavioral Health Care Accreditation2014
Joint Commission on Accreditation of Healthcare Organizations (JCAHO) - Home Care Accreditation2014
Joint Commission on Accreditation of Healthcare Organizations (JCAHO) - Hospital Accreditation2014
Awards
Award/RecognitionOrganizationYear
Environmental Leadership in Asthma ManagementEnvironmental Protection Agency2005
Medal of Honor for Organ DonationU.S. Dept. of Health and Human Services2006
Top 5 Emergency Medicine departments in the U.S.Child Magazine2007
Magnet AwardAmerican Nurses Credentialing Center2007
Outstanding Achievement AwardAmerican College of Surgeons' Commission on Cancer2007
Transport Program of the YearAssociation of Air Medical Services2007
Best Children's Hospitals in U.S.U.S. News & World Report Magazine2008
Best Children's Hospitals in U.S.U.S. News & World Report Magazine2009
Top Company in Kansas CityKC Business Magazine2009
Best Places to Work in Kansas CityKansas City Business Journal/Ingram's Magazine2009
Level IV Epilepsy CenterNational Association of Epilepsy2011
Children’s Mercy Kidney and Bone Marrow Centers of Excellence DesignationOptumHealth Centers for Excellence2011
America’s Best Children’s HospitalsU.S. News & World Report2011
Best Places to WorkKansas City Business Journal2011
America's Best Children's HospitalsU.S. News & World Reports2012
America's Best Children's HospitalsU.S. News & World Reports2014
Best Places to Work in Kansas CityKansas City Business Journal2014
Best Children's Hospitals in U.S.U.S. News & World Report Magazine2015
25 of the Nation's Best Practices in Patient and Family EngagmentCaregiver Action Network2014
Best Children's Hospitals in AmericaU.S. News & World Rrport2015
Best Places to Work in Kansas CityKansas City Business Journal2015
Healthy KC Gold CertifiedCertified Healthy KC Companies2015
Best Children's Hospitals in AmericaU.S. News & World Report2016
Best Places to Work for LGBT EqualityHealthcare Equality Index2016
Magnet DesignationAmerican Nurses Credentialing Center2016
Best Children's Hospitals in AmericaU.S. News & World Report2017
Microsoft Corp.Health Innovation Award2017
American Association of Neuromuscular & Electrodiagnostic MedicinExemplary Status for Electromyography (EMG) Lab2017
Government Licenses
Is your organization licensed by the government? Yes
CEO Comments The hospital is facing many fresh challenges in the new millennium, including: new reimbursement methodologies which are shifting the financial risk to care providers and creating financial incentives to shorten length of stay and limit test orders that could potentially work at cross purposes to quality of care issues; the impact of managed care on clinical care which is necessitating the identification of separate streams of funding for medical research and education; recruiting in a tight labor market while trying to contain costs in order to be competitive in negotiating managed care contracts is severely constraining the hospital operating budget, particularly in certain pediatric specialties where the pool of highly qualified candidates is extremely limited nationally and even internationally. Based on the analysis of these and other issues, the hospital's strategic plan has identified the following as critical success factors: a management team committed to pursuing excellence and positioning the hospital in a way that is consistent with its mission, vision statement, and objectives; a physician team that understands the mission of the hospital and is committed to carrying out that mission consistent with standards of excellence in care, hospital policies and sound business practices; facilities and equipment that are state-of-the-art, accessible and family-friendly; a positive internal operating environment, including a user-friendly and efficient information system, a service-excellence orientation by all staff, competitive compensation, effective communications and empowerment through application of strong leadership principles; adequate sources of funding for capital expenditures, research, equipment and programs; a positive external environment, including relations with physicians, hospitals, insurers, other third party payers, employers, government agencies and allied health professionals; a dynamic and effective communications and marketing plan.
Board Chair
Board Chair Mrs. Debbie Sosland-Edelman
Company Affiliation Sosland Foundation
Term July 2016 to June 20178
Board Members
NameAffiliation
Mr. Jonathan Baum George K. Baum Company
Ms. Betsy Braham Epiq Systems, Inc.
Dr. Caroyln Davis Pediatric Care Specialists
Mr. David Goebel Mr. Goodscents
Mr. Bill Krueger
Mr. Paul McLaughlin Stinson Morrison Hecker LLP- Partner
Dr. Randall L. O'Donnell Children's Mercy Hospital
Mr. Charles Schellhorn Community Volunteer
Mrs. Debbie Sosland-Edelman Sosland Foundation
Mr. Andrew Teigen
Dr. Robert Weatherly Children's Mercy
Mr. Tom Weir Blue Ridge Bank and Trust
Dr. Gerald Woods Children's Mercy
Board Demographics - Ethnicity
African American/Black 1
Asian American/Pacific Islander 0
Caucasian 12
Hispanic/Latino 0
Native American/American Indian 0
Other 0
Board Demographics - Gender
Male 10
Female 3
Unspecified 0
Governance
Board Term Lengths 3
Board Term Limits 3
Board Meeting Attendance % 87%
Written Board Selection Criteria? No
Written Conflict of Interest Policy? Yes
Percentage Making Monetary Contributions 100%
Percentage Making In-Kind Contributions 0%
Constituency Includes Client Representation Yes
Number of Full Board Meetings Annually 6
Standing Committees
Building
By-laws
Finance
Nominating
Audit, Compliance and Controls
CEO Comments

The hospital is facing many fresh challenges in the new millennium, including: new reimbursement methodologies which are shifting the financial risk to care providers and creating financial incentives to shorten length of stay and limit test orders that could potentially work at cross purposes to quality of care issues; the impact of managed care on clinical care which is necessitating the identification of separate streams of funding for medical research and education; recruiting in a tight labor market while trying to contain costs in order to be competitive in negotiating managed care contracts is severely constraining the hospital operating budget, particularly in certain pediatric specialties where the pool of highly qualified candidates is extremely limited nationally and even internationally. Based on the analysis of these and other issues, the hospital's strategic plan has identified the following as critical success factors: a management team committed to pursuing excellence and positioning the hospital in a way that is consistent with its mission, vision statement, and objectives; a physician team that understands the mission of the hospital and is committed to carrying out that mission consistent with standards of excellence in care, hospital policies and sound business practices; facilities and equipment that are state-of-the-art, accessible and family-friendly; a positive internal operating environment, including a user-friendly and efficient information system, a service-excellence orientation by all staff, competitive compensation, effective communications and empowerment through application of strong leadership principles; adequate sources of funding for capital expenditures, research, equipment and programs; a positive external environment, including relations with physicians, hospitals, insurers, other third party payers, employers, government agencies and allied health professionals; a dynamic and effective communications and marketing plan.

Financials
Fiscal Year Start July 01, 2017
Fiscal Year End June 30, 2018
Projected Revenue $1,176,708,113
Projected Expenses $1,149,371,827
Endowment Value $196,583,686
Spending Policy Percentage
Percentage 5
IRS Letter of Exemption
Foundation Comments
  • FYE 6/30/2014, 2013, 2012: Financial data reported using IRS Form 990.
  • Revenue from foundations/corporations may include individual contributions. 
Detailed Financials
 
Revenue SourcesHelpThe financial analysis involves a comparison of the IRS Form 990 and the audit report (when available) and revenue sources may not sum to total based on reconciliation differences. Revenue from foundations and corporations may include individual contributions when not itemized separately.
Fiscal Year201420132012
Foundation and
Corporation Contributions
$4,394,291$16,285,327$15,155,458
Government Contributions$9,909,465$10,624,146$11,028,695
Federal--$0$0
State--$0$0
Local--$0$0
Unspecified$9,909,465$10,624,146$11,028,695
Individual Contributions--$0$0
$897,771$1,017,106$1,053,271
$1,002,116,827$927,003,991$839,704,262
Investment Income, Net of Losses$17,499,723$12,078,241$938,906
Membership Dues$0$0$0
Special Events$1,805,483$556,951$577,839
Revenue In-Kind$812,128$178,663$190,623
Other$12,168,229$4,212,442$4,587,909
Expense Allocation
Fiscal Year201420132012
Program Expense$812,551,911$736,683,380$681,184,693
Administration Expense$175,465,842$170,468,468$149,146,398
Fundraising Expense$2,490,896$2,626,169$3,077,053
Payments to Affiliates--$0$0
Total Revenue/Total Expenses1.071.071.05
Program Expense/Total Expenses82%81%82%
Fundraising Expense/Contributed Revenue15%9%11%
Assets and Liabilities
Fiscal Year201420132012
Total Assets$1,291,671,043$1,166,481,377$1,038,666,908
Current Assets$406,784,955$379,542,580$311,636,138
Long-Term Liabilities$82,467,495$69,652,826$61,204,580
Current Liabilities$330,597,247$310,574,619$310,952,244
Total Net Assets$878,606,301$786,253,932$665,510,084
Short-Term Solvency
Fiscal Year201420132012
Current Ratio: Current Assets/Current Liabilities1.231.221.00
Long-Term Solvency
Fiscal Year201420132012
Long-Term Liabilities/Total Assets6%6%6%
Top Funding Sources
Fiscal Year201420132012
Top Funding Source & Dollar Amount --Individual $1,800,000Anonymous $1,000,000
Second Highest Funding Source & Dollar Amount --W.T. Kemper Foundation $1,000,000J.E. & L.E. Mabee Foundation $1,000,000
Third Highest Funding Source & Dollar Amount --Individual $608,000Truman Medical Center Charitable Foundation $525,000
Capital Campaign
Currently in a Capital Campaign? No
Capital Campaign Anticipated in Next 5 Years Yes
Organization Comments The hospital is conservatively managed from a financial standpoint with active oversight by the board. It has a substantial endowment and an excellent debt rating. However, the hospital continues to face many financial challenges, including the provision of charity care, massive contractual allowances with Medicaid and insurance companies, under-funding of medical education, rising labor costs--particularly in certain specialties, and financing of equipment and facilities.
Organization Name Children's Mercy Hospital
Address 2401 Gillham Rd
Kansas City, MO 64108
Primary Phone (816) 234-3000
Contact Email sstone@cmh.edu
CEO/Executive Director Dr. Randall L. O'Donnell
Board Chair Mrs. Debbie Sosland-Edelman
Board Chair Company Affiliation Sosland Foundation
Year of Incorporation 1897