Annual Report

A Message from the CEO and Chairman of the Board

Dear Friends and Supporters:

We are pleased to report that 2007 was an outstanding year for Children's Medical Center.

Our ambitious investment in clinical programs and facilities expansion remains a defining priority. These efforts are aimed at increasing the hospital's ability to provide the best possible medical care to every child who needs us, and that number continues to grow — up 22 percent in the last five years. During this same period, the hospital's charity care provision has risen 62 percent, to more than $53 million in 2007. As we face this economic challenge, our family of dedicated philanthropists and corporate donors is becoming even more vital to our future. Since 2002, pledges and gifts to Children's are up 40 percent, and we are deeply grateful for this continually increasing level of community support.

As anticipated, 2007 was a highly productive year for the Children's Medical Center Legacy campus. The primary activities centered upon clinical program development, physician staffing collaboration with UT Southwestern, clinical services staffing and final stage construction. The outpatient center, called the Ambulatory Care Pavilion at Legacy, will open by April of this year. The Children's Legacy hospital is on schedule to open in the early fall. We believe this unique campus represents a signature achievement of world-class pediatric care provision in a suburban setting.

Downtown, the new 10-story tower construction advanced significantly and is now emerging as an impressive architectural addition to our Dallas campus. This tower will face Medical District Drive (formerly Motor Street) and will become a convenient, family-friendly main entrance to the hospital. On track to open in the second quarter of 2009, this addition will house The Annette Simmons Heart Hospital, a new neonatal intensive care unit and an expanded cancer center.

Physician recruitment for our growing hospital system is an ongoing and essential cornerstone of our vision toward national preeminence. In 2007, Children's and UT Southwestern were pleased to welcome more than 58 outstanding new pediatric physicians to the hospital medical staff, all of whom either trained here with us or at one of the nation's top medical schools and children's hospitals.

On behalf of the patients and families we serve at Children's, we offer our sincere gratitude for the generosity, advocacy and leadership you provide. It is your support and your investment in our mission and vision that makes our work possible.

Sincerely,

Christopher J. Durovich
President & Chief Executive Officer

John L. Adams
Chairman of the Board