2018-05-14T19:22:57-05:00 2017-06-30 221478099 COHNREZNICK LLP 400 CAPITOL MALL SUITE 1200 SACRAMENTO CA 95814 990 2016-07-01 951644604 ORTHOPAEDIC HOSPITAL ORTH 2137421044 403 WEST ADAMS BLVD LOS ANGELES CA 900072664 ANTHONY SCADUTO MD PRESIDENT & CEO 2137421044 2018-05-08 1 LISA M CUMMINGS CPA P00043433 9164429100 2018-04-30 2016 2022-09-23 18:48:47Z ORTHOPAEDIC INSTIT FOR CHILDREN ANTHONY SCADUTO MD 403 WEST ADAMS BLVD LOS ANGELES CA 900072664 64539824 0 X WWW.ORTHO-INSTITUTE.ORG X 1923 CA THE MISSION OF LOS ANGELES ORTHOPAEDIC HOSPITAL IS TO PROVIDE OUTSTANDING CARE TO PATIENTS WITH MUSCULOSKELETAL DISORDERS AND THROUGH THE SUPPORT OF THE ORTHOPAEDIC INSTITUTE FOR CHILDREN FOUNDATION, TO PROVIDE CARE FOR CHILDREN REGARDLESS OF ABILITY TO PAY AND TO ADVANCE CARE WORLDWIDE FOR ALL MUSCULOSKELETAL PATIENTS THROUGH MEDICAL EDUCATION AND SCIENTIFIC RESEARCH. 9 8 230 8 0 0 21339169 16609861 42840021 47022946 631088 413702 458585 493315 65268863 64539824 0 0 0 0 14355885 14264601 0 0 0 40990047 42488340 55345932 56752941 9922931 7786883 312141885 275244045 36312436 30163015 275829449 245081030 X THE MISSION OF LOS ANGELES ORTHOPAEDIC HOSPITAL IS TO PROVIDE OUTSTANDING CARE TO PATIENTS WITH MUSCULOSKELETAL DISORDERS AND THROUGH THE SUPPORT OF THE ORTHOPAEDIC INSTITUTE FOR CHILDREN FOUNDATION, TO PROVIDE CARE FOR CHILDREN REGARDLESS OF ABILITY TO PAY AND TO ADVANCE CARE WORLDWIDE FOR ALL MUSCULOSKELETAL PATIENTS THROUGH MEDICAL EDUCATION AND SCIENTIFIC RESEARCH. 0 0 42648336 43390861 OUTPATIENT CLINICS - ORTHOPAEDIC HOSPITAL PROVIDES A WIDE RANGE OF PREVENTIVE RESTORATIVE HEALTH CARE SERVICES DESIGNED PARTICULARLY FOR CHILDREN WITH MUSCULOSKELETAL DISORDERS. SPECIFIC DISORDERS TREATED INCLUDE ORTHOPAEDIC TRAUMA, SPINA BIFIDA, CEREBRAL PALSY, CLUB FOOT, NEUROMUSCULAR DISORDERS, SPINAL DEFORMITY, HAND DEFORMITIES, MUSCULOSKELETAL TUMORS, HIP DYSPLASIA AND HEMOPHILIA. THERE WERE 62,041 OUTPATIENT VISITS FOR FISCAL YEAR 2017. 2061528 4086069 RESEARCH PROJECTS - ORTHOPAEDIC HOSPITAL CONDUCTS A NUMBER OF BASIC AND CLINICAL RESEARCH PROGRAMS. AMONG THEM ARE IMPROVING THE DURABILITY OF HUMAN JOINT REPLACEMENTS, UNDERSTANDING THE BIOLOGY AND BIOMECHANICS OF FRACTURES AND DEVELOPING NEW SYNTHETIC MATERIALS AND DEVICES TO HELP ORTHOPAEDIC PATIENTS. THE DEPARTMENT ENJOYS A LEADERSHIP POSITION WORLDWIDE FOR THE DEVELOPMENT OF LONGER LASTING MATERIALS FOR JOINTREPLACEMENT. 457269 35171 MEDICAL EDUCATION - AS PART OF ITS ALLIANCE WITH THE UNIVERSITY OF CALIFORNIA, LOS ANGELES (UCLA), ORTHOPAEDIC HOSPITAL PARTICIPATES IN THE EDUCATION OF MEDICAL STUDENTS, ORTHOPAEDIC SURGERY RESIDENTS AND GRADUATE ORTHOPAEDIC SURGEONS. ORTHOPAEDIC HOSPITAL ALSO CONDUCTS A FELLOWSHIP PROGRAM IN PEDIATRIC ORTHOPEDICS. THE PROGRAM IS FULLY ACCREDITED BY THE ACCREDITATION COUNCIL FOR GRADUATE MEDICAL EDUCATION (ACGME). 45167133 1 1 0 0 0 0 0 0 0 0 1 0 0 1 1 1 0 1 0 0 0 0 0 0 0 0 0 0 0 1 1 0 0 0 0 0 0 0 1 0 0 0 0 0 0 0 1 1 1 0 0 1 94 0 1 230 1 0 0 0 0 0 0 0 0 0 0 X 9 8 1 0 0 0 0 0 0 1 1 0 0 1 1 1 1 1 1 1 1 1 1 CA X DIEMLAN TONNU 2137421044 403 WEST ADAMS BLVD LOS ANGELES CA 900072664 Anthony Scaduto MD President & CEO 38.00 12.00 X X 764009 0 58980 Steven T Valentine Director 2.00 X 0 0 0 Joel M Bernstein director 2.00 X 0 0 0 Richard E Giss director 2.00 X 0 0 0 Jeffrey J Eckardt MD director 2.00 2.00 X 0 0 0 Edward D Fox Jr director 2.00 2.00 X 0 0 0 Peverley J Hukill PhD director 2.00 X 0 0 0 Hilary A Norton director 2.00 2.00 X 0 0 0 Cindy Starrett director 0.00 2.00 X 0 0 0 DEBRA MATHIAS Chief Operating Officer (part year) 34.00 16.00 X X 0 0 0 DIEMLAN LANNIE TONNU CFO 38.00 12.00 X 99547 0 8275 Matthew Niedzwiecki Chief Operating Officer (part year) 34.00 16.00 X 279600 0 16576 Michael Sullivan Chief Philanthropy Officer 8.00 40.00 X 362434 0 34103 Mauricio Silva Medical Director 50.00 X 545598 0 15900 RICHARD BOWEN Ped Ortho MD 40.00 X 514047 0 52228 TIGRAN AVOIAN Urgent Care MD 40.00 X 293715 0 51703 DORIS QUON HTC MD 40.00 X 179904 0 14713 ROBERT WARNOK Nurse Practioner 40.00 X 159929 0 49290 Jennifer Beck Professor Physician 40.00 X 347635 0 3346 3546418 0 305114 9 0 1 0 Kirkland & Ellis LLP 333 SOUTH HOPE ST LOS ANGELES CA 90071 ATTORNEY FEES 1084612 Ladue Curran Kuehn LLC 100 EAST WAYNE ST SUITE 300 SOUTH BEND IN 466012352 ATTORNEY FEES 536054 Resources Global Professionals PO BOX 740909 LOS ANGELES CA 90074 CONSULTANTS 161610 Imagefirst Healthcare Laundry Specialist PO BOX 61323 KING OF PRUSSIA PA 19406 LINEN SERVICES 154341 CohnReznick LLP 1900 AVENUE OF THE STARS 28TH FLOOR lOS ANGELES CA 90067 AUDIT FEES 136263 6 16609861 16609861 OUTPATIENT CLINICS 621400 41663602 41663602 RESEARCH PROJECTS 541700 4086069 4086069 UCLA - ALLIANCE REVENUE 900099 1000000 1000000 RENTS - INTERCOMPANY 531390 273275 273275 47022946 388055 388055 4160 0 4160 4160 4160 25647 0 25647 25647 25647 PURCHASE DISCOUNTS 900099 306535 306535 OTHER REVENUE 900099 113964 113964 PARKING REVENUE 812930 68656 68656 489155 64539824 47512101 0 417862 2441578 1779328 662250 9612924 6885842 2727082 235091 228235 6856 1249020 839303 409717 725988 516847 209141 7499 7499 3385799 10271 3375528 5100 5100 34868 34868 4728847 3135122 1593725 274681 274381 300 744036 554637 189399 707089 2680 704409 126638 117557 9081 31828 25877 5951 609683 609683 2355557 2270337 85220 438643 36595 402048 PLASMA CONCENTRATE 24991484 24991484 RESEARCH PROJECTS 1468259 1468259 OTHER SUPPLIES 1279444 1249938 29506 OTHER MEDICAL SUPPLIES 490817 463827 26990 808068 304014 504054 56752941 45167133 11585808 0 1918169 777307 6503476 6803004 17129650 329035 568228 201401 247443 42183004 10164661 55321180 32018343 18075047 20638370 120898 75394 229672679 196986306 312141885 275244045 6019703 6474515 121543 98494 24725000 21775000 5446190 1815006 36312436 30163015 X 75863570 83282944 171658011 143662644 28307868 18135442 275829449 245081030 312141885 275244045 X 7786883 2184491 -40719793 X X 0 1 X 1 0 X RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED 35498977 4881109 30617868 6684027 5283552 1400475 32018343 DUE FROM LAOHF 1704702 DUE FROM ASC 1345204 DUE FROM OHC 16323 INTEREST IN NET ASSETS - LAOHF 171970512 PREPAID RENT 21740888 OTHER ASSETS 199549 AWUIL - CURRENT TTEE HELD FUND 9128 196986306 OTHER LIABILITIES - NON-CURRENT 1050167 EST LIAB. - SELF INSURED W/COM 665030 INTEREST PAYABLE 99809 1815006 X Part X, Line 2: OIC, OF, and OHC are separate legal not-for-profit organizations that are tax-exempt under Section 501(c)(3) of the Internal Revenue Code and Section 23701(d) of the Revenue and Taxation Code of California. However, the Organization is subject to income taxes on any net income that is derived from a trade or business, regularly carried on, and not in furtherance of the purposes for which it was granted exemption. No provision for income taxes is included in the accompanying combined financial statements. The Organization has no unrecognized tax benefits at June 30, 2017 and 2016. The Organization's federal and state income tax returns prior to fiscal years 2014 and 2013, respectively, are closed and management continually evaluates expiring statutes of limitations, audits, proposed settlements, changes in tax law and new authoritative rulings. If applicable, the Organization recognizes interest and penalties associated with tax matters as part of income tax expense and includes accrued interest and penalties with accounts payable and accrued expenses in the combined statements of financial position. X 0 0 0 0 0 0 0 0 0 Anthony Scaduto MD President & CEO 763199 0 0 0 810 0 15900 0 43080 0 822989 0 0 0 Matthew Niedzwiecki Chief Operating Officer (part year) 278502 0 0 0 1098 0 10970 0 5606 0 296176 0 0 0 Michael Sullivan Chief Philanthropy Officer 316192 0 45000 0 1242 0 15900 0 18203 0 396537 0 0 0 Mauricio Silva Medical Director 544788 0 0 0 810 0 15900 0 0 0 561498 0 0 0 RICHARD BOWEN Ped Ortho MD 513237 0 0 0 810 0 14558 0 37670 0 566275 0 0 0 TIGRAN AVOIAN Urgent Care MD 292905 0 0 0 810 0 13395 0 38308 0 345418 0 0 0 DORIS QUON HTC MD 179047 0 0 0 857 0 6384 0 8329 0 194617 0 0 0 ROBERT WARNOK Nurse Practioner 159133 0 0 0 796 0 7706 0 41584 0 209219 0 0 0 Jennifer Beck Professor Physician 347203 0 0 0 432 0 3346 0 0 0 350981 0 0 0 A CALIFORNIA MUNICIPAL FINANCE AUTHORITY 201563466 2012-06-22 37025000 REFUNDING ISSUE FOR JULY 2000 BOND 1 0 0 A 40125000 40125000 37025000 3788425 325579 40813425 354484 1 0 1 1 A 0 0 0 0 0 0 0 A 1 0 0 0 0 1 A 0 Joel Bernstein Board Vice Chairman 297138 See Part V 0 Part IV Description of Transaction JOEL BERNSTEIN, VICE CHAIRMAN OF ORTHOPAEDIC HOSPITAL, IS A RETIRED PARTNER WITH THE FIRM OF MCDERMOTT WILL & EMERY LLP. OTHOPAEDIC HOSPITAL ENGAGED THIS FIRM FOR LEGAL SERVICES DURING FISCAL YEAR 2017. ALL SERVICES WERE NEGOTIATED AT ARMS-LENGTH. FORM 990, PART IV, LINE 20A: LINE 20A IS CHECKED "NO" BECAUSE ORTHOPAEDIC INSTITUTE FOR CHILDREN (OPERATED BY ORTHOPAEDIC HOSPITAL) IS A CLINIC LICENSED UNDER SECTION 1204 OF THE CALIFORNIA HEALTH AND SAFETY CODE AND NOT A HEALTH FACILITY SUBJECT TO THE PROVISIONS OF 1250. FORM 990, PART IV, LINE 32: ON APRIL 11, 2017, ORTHOPAEDIC HOSPITAL COMPLETED A TRANSACTION TO FINANCE THE CONSTRUCTION OF ITS AMBULATORY SURGERY CENTER AND THE RENOVATION OF ITS OUTPATIENT BUILDING ("THE LOWMAN BUILDING") THROUGH THE NEW MARKETS TAX CREDIT PROGRAM. IN CONNECTION WITH THE NMTC, ORTHOPAEDIC HOSPITAL FORMED A NONPROFIT SUPPORTING 501(C)(3) CORPORATION NAMED OIC HOLDING CORP. WHICH RECEIVED A DONATION FROM ORTHOPAEDIC HOSPITAL OF A PORTION OF ITS FIXED ASSETS. THE TRANSFER CONSTITUTES LESS THAN 25% OF THE HOSPITAL'S NET ASSETS. Form 990, Part VI, Section A, line 2 JOAN AND JEFF PRESTINE ARE MOTHER AND SON. BOTH INDIVIDUALS ARE ON THE BOARD OF TRUSTEES. Form 990, Part VI, Section B, line 11b FORM 990 IS COMPLETED BY AN OUTSIDE ACCOUNTING FIRM AND REVIEWED BY INDIVIDUALS IN THE FOLLOWING ORDER: CFO THEN CEO, SENIOR ADMINISTRATIVE TEAM AND THE AUDIT COMMITTEE BEFORE FINALIZING. THE 990 WILL ALSO BE MADE AVAILABLE FOR BOARD REVIEW PRIOR TO FILING. Form 990, Part VI, Section B, line 12c THE GOVERNANCE COMMITTEE OF THE ORTHOPAEDIC HOSPITAL'S BOARD OF DIRECTORS AND THE ORTHOPAEDIC INSTITUTE FOR CHILDREN FOUNDATION'S BOARD OF TRUSTEES REQUIRE ALL DIRECTORS AND TRUSTEES TO SUBMIT A "CONFLICT OF INTEREST STATEMENT" ANNUALLY. THE COMMITTEE REVIEWS THESE STATEMENTS AND PRESENTS ANY POTENTIAL CONFLICT TO BOARDS FOR DISCUSSION AND APPROVAL OF ANY ACTION NEEDED. OFFICERS AND KEY EMPLOYEES ARE ALSO REQUIRED TO SUBMIT A "CONFLICT OF INTEREST STATEMENT" ANNUALLY TO THE HUMAN RESOURCES DEPARTMENT. STATEMENTS ARE REVIEWED BY THE COMPLIANCE OFFICER WHO CHECKS FOR ANY EXISTING CONFLICT. FOR ANY POTENTIAL CONFLICT, THE BOARD, WITH THE ABSTENTION OF THE INTERESTED DIRECTOR, MAY DECIDE WHETHER SUCH DIRECTOR MAY PARTICIPATE IN ANY REPORTING, DISCUSSION, OR VOTE ON THE ISSUE THAT GAVE RISE TO THE POTENTIAL CONFLICT. A MAJORITY OF A QUORUM OF DISINTERESTED DIRECTORS MUST APPROVE OR RATIFY THE TRANSACTION, CONTRACT, OR OTHER MATTER GIVING RISE TO THE ISSUE. THE INTERESTED DIRECTOR MAY BE COUNTED IN DETERMINING WHETHER A QUORUM EXISTS EVEN THOUGH HE OR SHE CANNOT VOTE ON THE ISSUE. ANY DIRECTOR WITH AN INTEREST, RELATIONSHIP, OR RESPONSIBILITY THAT CONFLICTS WITH THE INTEREST OF THE ORGANIZATION SHALL RECUSE HIMSELF OR HERSELF FROM ANY REPORTING, DISCUSSIONS, AND VOTE ON THE ISSUE THAT GIVES RISE TO THE CONFLICT AND, PREFERABLY, FROM THE BOARD OR COMMITTEE MEETING OR APPLICABLE PORTION OF SUCH MEETING. Form 990, Part VI, Section B, line 15 Officer positions are reviewed and documented by the committee of the board of trustees annually. Key Physician positions compensation is reviewed by consultant, attorney and approved by the strategic committee and the board of directors. Other officers and key employees, compensation is reviewed by the CEO with the director of Human Resources. Orthopaedic Hospital participates in some salary surveys and benchmarking tools to compare salaries against the market. Form 990, Part VI, Section C, line 19 ANY INQUIRIES REGARDING THE GOVERNING DOCUMENTS, CONFLICT OF INTEREST POLICY, AND FINANCIAL STATEMENTS SHOULD BE DIRECTED TO THE CFO OR TO AN ORTHOPAEDIC HOSPITAL OFFICER. Form 990, Part XI, line 9: CHANGES IN VALUE OF INTEREST IN LAOHF'S ASSETS - TEMPORARILY RESTRICTED -27,995,367. TRANSFER OF ASSETS TO OIC HOLDING CORP - PERMANENTLY RESTRICTED -10,172,426. REDESIGNATION OF UNRESTRICTED NET ASSETS TO TEMP RESTRICTED NET ASSETS -2,552,000. Form 990, Part XII, Line 2c: THE PROCESS OF OVERSEEING THE AUDIT AND SELECTING AN INDEPENDENT ACCOUNTANT HAS NOT CHANGED FROM THE PRIOR YEAR. ORTHOPAEDIC INSTITUTE FOR CHILDREN FOUNDATION 403 WEST ADAMS BLVD LOS ANGELES CA 90007 951644029 FUNDRAISING CA 501(c)(3) Line 12a, I ORTHOPAEDIC HOSPITAL 1 OIC HOLDING CORP 403 WEST ADAMS BLVD LOS ANGELES CA 90007 820778259 SUPPORTS CHARITABLE PURPOSES OF ORTHOPAEDIC HOSPITAL CA 501(c)(3) Line 12a, I ORTHOPAEDIC HOSPITAL 1 ORTHOPAEDIC INSTITUTE FOR CHILDREN AMBULATORY SURGERY CENTER LLC 403 WEST ADAMS BLVD LOS ANGELES CA 90007 812159060 AMBULATORY SURGERY CENTER CA ORTHOPAEDIC HOSPITAL RELATED -1220990 141958 0 1 0.99000 0 0 1 0 0 0 0 0 0 0 0 0 0 1 0 1 0 1 0 ORTHOPAEDIC INSTITUTE FOR CHILDREN FOUNDATION C 16609861 CASH ORTHOPAEDIC INSTITUTE FOR CHILDREN FOUNDATION N 70125 CASH ORTHOPAEDIC INSTITUTE FOR CHILDREN FOUNDATION P 1677433 CASH OIC HOLDING CORP R 10172426 net book value