2017-05-12T19:40:11-05:00 2016-06-30 221478099 COHNREZNICK LLP 400 CAPITOL MALL SUITE 1200 SACRAMENTO CA 95814 990 2015-07-01 951644029 LOS ANGELES ORTHOPAEDIC HOSPITAL FOUNDATION LOSA 2137421044 403 WEST ADAMS BLVD LOS ANGELES CA 900072664 ANTHONY SCADUTO MD PRESIDENT 2137421044 2017-05-12 1 LISA M CUMMINGS CPA P00043433 9164429100 2015 2021-01-29 14:40:06Z ORTHOPAEDIC FOUNDATION ANTHONY SCADUTO MD 403 WEST ADAMS BLVD LOS ANGELES CA 900072664 54172474 0 X WWW.ORTHO-INSTITUTE.ORG X 1918 CA THE MISSION OF LOS ANGELES ORTHOPAEDIC HOSPITAL FOUNDATION IS TO SUPPORT THE MEDICAL CARE, RESEARCH AND EDUCATION ACTIVITIES OF ORTHOPAEDIC HOSPITAL, A 501(C)(3) CORPORATION. ORTHOPAEDIC HOSPITAL PROVIDES CARE FOR CHILDREN WITH MUSCULOSKELETAL DISORDERS, REGARDLESS OF ABILITY TO PAY AND ADVANCES CARE WORLDWIDE THROUGH SCIENTIFIC RESEARCH AND MEDICAL EDUCATION. 25 24 0 500 0 0 2537669 4430103 0 0 10256797 8155058 13695 -220020 12808161 12365141 8916114 21339169 0 0 1172584 1585585 0 0 2408560 1609062 1889340 11697760 24814094 1110401 -12448953 199148250 173750767 1271458 3218112 197876792 170532655 X THE MISSION OF LOS ANGELES ORTHOPAEDIC HOSPITAL FOUNDATION IS TO SUPPORT THE MEDICAL CARE, RESEARCH AND EDUCATION ACTIVITIES OF ORTHOPAEDIC HOSPITAL, A 501(C)(3) CORPORATION. ORTHOPAEDIC HOSPITAL PROVIDES CARE FOR CHILDREN WITH MUSCULOSKELETAL DISORDERS, REGARDLESS OF ABILITY TO PAY AND ADVANCES CARE WORLDWIDE THROUGH SCIENTIFIC RESEARCH AND MEDICAL EDUCATION. 0 0 21339169 21339169 123088 FINANCIAL SUPPORT - THE LOS ANGELES ORTHOPAEDIC HOSPITAL FOUNDATION PROVIDES FINANCIAL SUPPORT TO ORTHOPAEDIC HOSPITAL IN ORDER TO CARRY OUT ITS MISSION TO PROVIDE OUTSTANDING MEDICAL CARE FOR CHILDREN WITH MUSCULOSKELETAL DISORDERS, REGARDLESS OF ABILITY TO PAY, AND ADVANCE CARE WORLDWIDE FOR THOSE PATIENTS THROUGH MEDICAL EDUCATION AND SCIENTIFIC RESEARCH. THERE WERE 62,041 OUTPATIENT VISITS FOR FISCAL YEAR 2016. THE FOUNDATION ALSO PROVIDED SUPPORT IN FISCAL YEAR 2016 FOR THE NEW AMBULATORY SURGERY CENTER IN THE AMOUNT OF $8,951,634. 189723 113 COMMUNITY SERVICES - THE LOS ANGELES ORTHOPAEDIC HOSPITAL FOUNDATION CONDUCTS A NUMBER OF COMMUNITY SERVICES. ONE OF THEM IS THE VOLUNTEER PROGRAM WHICH PROVIDES SUPPORT TO ORTHOPAEDIC HOSPITAL'S PATIENTS AND THEIR IMMEDIATE FAMILY MEMBERS. 500 VOLUNTEERS CONTRIBUTED TO THE PROGRAM FOR FISCAL YEAR 2016. 391558 45 COMMUNITY OUTHREACH - THE LOS ANGELES ORTHOPAEDIC HOSPITAL FOUNDATION GRANTS SCHOLARSHIPS TO PATIENTS OF ORTHOPAEDIC HOSPITAL AND TO GRADUATE STUDENTS OF ORTHOPAEDIC HOSPITAL MAGNET HIGH SCHOOL. THE RECIPIENTS ARE EVALUATED UNDER THREE CRITERIA: ACADEMIC RECORDS, COMMUNITY SERVICE AND PERSONAL QUALITIES. GRANTS ARE PAID DIRECTLY TO THE SCHOOLS WHERE STUDENTS ARE ACCEPTED FOR COLLEGE. 21920450 1 1 0 0 0 0 0 0 0 1 1 1 0 0 1 1 0 1 0 0 0 0 0 0 1 0 0 1 0 1 0 0 0 0 0 0 0 0 1 0 0 0 0 1 0 0 0 1 19 0 1 0 0 0 0 0 0 0 0 0 0 1 0 X 25 24 1 0 0 0 1 1 0 1 1 0 0 1 1 1 1 1 1 1 1 0 CA OR X DIEMLAN TONNU 2137421044 403 WEST ADAMS BLVD LOS ANGELES CA 900072664 ANTHONY A SCADUTO MD PRESIDENT & CEO 12.00 38.00 X X 0 846525 71534 PEVERLY HUKILL PHD TRUSTEE 2.00 2.00 X 0 0 0 JOAN PRESTINE TRUSTEE 2.00 2.00 X 0 0 0 JASON SILLETTI TRUSTEE 2.00 2.00 X 0 0 0 KATIE KROMER TRUSTEE 2.00 2.00 X 0 0 0 HAROLD A DAVIDSON DBA CRA TRUSTEE 2.00 2.00 X 0 0 0 RACHEL DAVIS TRUSTEE 2.00 2.00 X 0 0 0 EDWARD D FOX JR TRUSTEE 2.00 2.00 X 0 0 0 RICHARD GISS TRUSTEE 2.00 2.00 X 0 0 0 DAVID GOLDBERG ESQ TRUSTEE 2.00 2.00 X 0 0 0 LAWRENCE B GOTLIEB TRUSTEE 2.00 2.00 X 0 0 0 JAMES V LUCK JR MD TRUSTEE 2.00 2.00 X 0 0 0 STEVE MCDONALD TRUSTEE 2.00 2.00 X 0 0 0 HILARY A NORTON TRUSTEE 2.00 2.00 X 0 0 0 JEFFREY B PRESTINE TRUSTEE 2.00 2.00 X 0 0 0 CHRISTINE WRIGHT ROPER TRUSTEE 2.00 2.00 X 0 0 0 CORINA VILLARAIGOSA TRUSTEE 2.00 2.00 X 0 0 0 MARK WILBUR TRUSTEE 2.00 2.00 X 0 0 0 STEVEN T VALENTINE TRUSTEE 2.00 2.00 X 0 0 0 JOEL M BERNSTEIN ESQ TRUSTEE 2.00 2.00 X 0 0 0 0 846525 71534 0 0 1 0 FOX ENTERTAINMENT FOX ENTERTAINMENT FILE 55864 LOS ANGELES CA 900745864 RENTAL, SECURITY, AND FOOD SERVICES 173814 1 413494 4016609 154597 4430103 2979721 2979721 134 134 46430000 41254663 5175337 5175337 5175337 209270 413494 552670 -343400 -343400 OTHER INCOME 900099 123246 123246 123246 12365141 123246 0 7811792 21339169 21339169 1309247 224048 1085199 52085 10399 41686 156893 29622 127271 67360 15238 52122 27170 27170 76679 76679 477035 477035 274985 124978 150007 140538 4434 8049 128055 40649 40649 25279 9898 15381 570 570 20296 10897 9399 163695 163695 OTHER DIRECT EXPENSES 308319 9405 298914 SUPPLIES 242225 78636 163589 COMMUNITY OUTREACH 57679 56304 1375 RECRUITING 11600 850 10750 22621 6572 16049 24814094 21920450 485084 2408560 534072 433221 538101 898687 38735 38932 632792 454436 191100 178356 180169626 155481372 17444419 16402160 232197 318039 199148250 173750767 508301 610055 12950 12950 750207 2595107 1271458 3218112 X 147456353 121233603 22129864 22034590 28290575 27264462 197876792 170532655 199148250 173750767 X -12448953 -11728540 -3166644 X X 0 1 X 1 0 X X 1 ORTHOPAEDIC HOSPITAL 951644604 3 1 21339169 0 1 21339169 0 1 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1 0 RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED 28300044 -1159770 27140274 29591746 64817 -24519 1332000 28300044 27114993 311820 3384933 1220000 29591746 26778415 85134 251444 27114993 25714415 549000 515000 26778415 1 0 126943 126943 353398 342151 11247 141979 110535 31444 10472 1750 8722 178356 ALTERNATIVE INVESTMENTS 16402160 C 16402160 DUE TO AFFILIATES 2595107 2595107 X PART X, LINE 2: OIC AND OF 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 THEY WERE 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, 2016 AND 2015. THE ORGANIZATION'S FEDERAL AND STATE INCOME TAX RETURNS PRIOR TO FISCAL YEAR 2013 AND 2012, 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. STAND FOR KIDS GALA 525608 379383 146225 2544 50000 130040 16185 290856 GOLF TOURNAMENT 97156 34111 63045 13600 20700 17076 11669 622764 413494 209270 16144 70700 147116 16185 302525 552670 -343400 FORM 990, SCHEDULE G, PART II FUNDRAISING EVENTS: IN ADDITION TO GROSS RECEIPTS REPORTED ON LINE 1, THE "STAND FOR KIDS GALA" HAD PLEDGES RECEIVABLE TOTALING $213,825 AT JUNE 30, 2016, WHICH WERE COLLECTED IN JULY 2016. 1 ORTHOPAEDIC HOSPITAL 403 WEST ADAMS BLVD LOS ANGELES CA 900072664 951644604 501(C)(3) 21339169 SUPPORT TO PROVIDE MEDICAL CARE TO CHILDREN WITH MUSCULOSKELETAL DISORDERS 1 PART I, LINE 2: THE ORGANIZATION MONITORS THE GRANTS TO THE HOSPITAL TO ENSURE THAT THE GRANTS ARE USED FOR ITS EXEMPT PURPOSE. 0 0 0 0 0 0 0 0 0 ANTHONY A SCADUTO MD PRESIDENT & CEO 0 843960 0 0 0 2565 0 36000 0 35534 0 918059 0 0 X 1 64639 FMV X 1 5899 FMV X 1600 TOYS VALUED AT $9 EACH 1 14400 FMV X STAND FOR KIDS GALA - GOODIE BAGS 500 TICKETS LA SPARKS 1 10476 FMV X STAND FOR KIDS GALA - SAFARI RETREAT 1 10000 FMV X STAND FOR KIDS GALA - RAISED TIDE PAINTING 1 10000 FMV X STAND FOR KIDS GALA - CHILDREN AT PLAY STATUE 1 8000 FMV X STAND FOR KIDS GALA - 512 STICKY NOTES/504 JOURNALS 1 7083 FMV X STAND FOR KIDS GALA - 250 BENEDICTINE BLESSED BRACELET 1 7000 FMV X STAND FOR KIDS GALA - CARTIER LOVE BRACELET 1 6700 FMV X 600 TOYS VALUED AT $9 EACH 1 5400 FMV X GIFT CERTIFICATE - FAMILY OR INDIVIDUAL SITTING 1 5000 FMV 0 1 0 FORM 990, PART VI, SECTION A, LINE 2 JOAN AND JEFF PRESTINE ARE MOTHER AND SON AND ARE BOTH ON THE BOARD OF TRUSTEES. FORM 990, PART VI, SECTION A, LINE 6 ORTHOPAEDIC HOSPITAL, A CALIFORNIA NONPROFIT PUBLIC BENEFIT CORPORATION EXEMPT UNDER SECTION 501(C)(3) OF THE CODE, IS THE SOLE MEMBER OF LOS ANGELES ORTHOPAEDIC HOSPITAL FOUNDATION AS MENTIONED IN ITS ARTICLES OF INCORPORATION. FORM 990, PART VI, SECTION A, LINE 7A THE ORGANIZATION HAS THE NOMINATING AND GOVERNANCE COMMITTEE, A JOINT COMMITTEE OF THE BOARD OF DIRECTORS AND BOARD OF TRUSTEES, WITH THE POWER TO ELECT OR APPOINT MEMBERS OF THE GOVERNING BODY. CANDIDATES ARE PROPOSED VIA THE GOVERNANCE COMMITTEE AND APPROVAL BY THE BOARD OF DIRECTORS. FORM 990, PART VI, SECTION B, LINE 11 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 LOS ANGELES ORTHOPAEDIC HOSPITAL 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 THE 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: CHANGE IN VALUE OF SPLIT-INTEREST AGREEMENTS -642,266. CHANGES IN NET ASSETS DUE TO DECONSOLIDATION OF AUDITED FINANCIAL STMTS -2,524,378. 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 HOSPITAL 2400 SOUTH FLOWER STREET LOS ANGELES CA 90007 951644604 OUTPATIENT CA 501(C)(3) LINE 3 0 0 1 0 0 0 0 0 0 0 0 0 0 0 0 1 1 0 0 0