2016-05-13T18:04:49-05:00 2015-06-30 221478099 COHNREZNICK LLP 400 CAPITOL MALL SUITE 900 SACRAMENTO CA 95814 990 2014-07-01 951644604 ORTHOPAEDIC HOSPITAL ORTH 2137421044 403 WEST ADAMS BLVD LOS ANGELES CA 900072664 ANTHONY SCADUTO MD PRESIDENT & CEO 2137421044 2016-05-13 1 LISA M CUMMINGS CPA P00043433 9164429100 2014 2016-08-17 19:52:53Z ORTHOPAEDIC INSTIT FOR CHILDREN ANTHONY SCADUTO MD 403 WEST ADAMS BLVD LOS ANGELES CA 900072664 49216133 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 LOS ANGELES ORTHOPAEDIC HOSPITAL 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. 10 9 172 450 0 0 7120916 8916114 36007454 38431380 989275 997976 352740 428659 44470385 48774129 0 0 0 0 10298619 11983161 0 0 0 32026119 35432638 42324738 47415799 2145647 1358330 307170795 300062181 40279162 37685018 266891633 262377163 X THE MISSION OF LOS ANGELES ORTHOPAEDIC HOSPITAL IS TO PROVIDE OUTSTANDING CARE TO PATIENTS WITH MUSCULOSKELETAL DISORDERS AND THROUGH THE SUPPORT OF THE LOS ANGELES ORTHOPAEDIC HOSPITAL 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 35876101 34909375 OUTPATIENT CLINICS - ORTHOPAEDIC HOSPITAL PROVIDES A WIDE RANGE OF PREVENTIVE AND 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 48,377 OUTPATIENT VISITS FOR FISCAL YEAR 2015. 3706234 3422005 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 JOINT CARTILAGE AND CARTILAGE GRAFTS, IMPROVING METHODS FOR FIXATION 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 JOINT REPLACEMENT. 622155 100000 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). 1085046 290962 OTHER PROGRAM SERVICES 1085046 290962 41289536 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 0 0 0 0 0 0 0 0 1 1 1 0 0 1 68 0 1 172 1 0 0 0 0 0 0 0 0 0 0 X 10 9 0 0 0 0 0 1 0 1 1 0 0 1 1 1 1 1 1 1 1 0 CA X DIANE MOON 2137421044 403 WEST ADAMS BLVD LOS ANGELES CA 900072664 ANTHONY SCADUTO MD PRESIDENT & CEO 32.00 8.00 X X 737842 0 49404 JEFFREY J ECKARDT MD TRUSTEE 2.00 X 0 0 0 WILLIAM G MCGAGH TRUSTEE 2.00 X 0 0 0 JOEL M BERNSTEIN TRUSTEE 2.00 X 0 0 0 HILLIARY A NORTON TRUSTEE 2.00 2.00 X 0 0 0 PEVERLY HUKILL PHD TRUSTEE 2.00 2.00 X 0 0 0 STEVEN T VALENTINE TRUSTEE 2.00 X 0 0 0 EDWARD D FOX JR TRUSTEE 2.00 2.00 X 0 0 0 JACK R BORSTING PHD TRUSTEE 2.00 X 0 0 0 RICHARD E GISS TRUSTEE 2.00 2.00 X 0 0 0 DIANE MOON CFO 24.00 16.00 X 236446 0 10040 MICHAEL SULLIVAN CHIEF PHILANTHROPY OFFICER 8.00 32.00 X 234938 0 12054 MAURICIO SILVA MEDICAL DIRECTOR 40.00 X 476253 0 0 RICHARD BOWEN PED ORTHO MD 40.00 X 474244 0 37345 TIGRAN AVOIAN URGENT CARE MD 40.00 X 223750 0 16029 DORIS QUON HTC MD 40.00 X 186449 0 5862 ROBERT WARNOK NURSE PRACTITIONER 40.00 X 155213 0 16029 ZABELLE BOYANDIJIAN PHARMACY DIRECTOR 40.00 X 147315 0 11495 JAMES V LUCK JR MD FORMER PRESIDENT & CEO 2.00 X 143145 0 0 3015595 0 158258 35 1 1 0 KIRKLAND & ELLIS LLC 333 SOUTH HOPE ST LOS ANGELES CA 90071 ATTORNEY FEES 811010 LADUE CURRAN KUEHN LLC 205 WEST JEFFERSON BLVD SOUTH BEND IN 46601 ATTORNEY FEES 259516 MCDERMOTT WILL & EMERY LLP PO BOX 6043 CHICAGO IL 606806043 ATTORNEY FEES 173960 ARNOLD HAGEMAN MD 2100 SAWTELLE BLVD 103A LOS ANGELES CA 90025 MEDICAL SERVICES 147629 COHNREZNICK LLP 1900 AVENUE OF THE STARS 28TH FLOO LOS ANGELES CA 90067 ACCOUNTING FEES 117790 5 8916114 8916114 OUTPATIENT CLINICS 621400 34909375 34909375 RESEARCH PROJECTS 541700 3422005 3422005 MEDICAL EDUCATION 611600 100000 100000 38431380 458643 458643 55357 0 55357 55357 55357 981337 442004 539333 539333 539333 OTHER REVENUE 900099 290962 290962 PARKING REVENUE 812930 82340 82340 373302 48774129 38722342 0 1135673 X 1756977 815434 941543 8407053 6877696 1529357 335405 215961 119444 896705 122501 774204 587021 396501 190520 5949 5949 21535 6220 15315 50000 50000 62839 62839 6953940 6214677 739263 174047 48006 126041 714709 714709 62692 46377 16315 826109 132820 693289 3805592 3538357 267235 320620 318407 2213 MEDICAL SUPPLIES 21304181 21102038 202143 OTHER SUPPLIES 432652 432652 REPAIRS AND MAINTENANCE 250929 85388 165541 BAD DEBT EXPENSE 243954 63227 180727 202890 89777 113113 47415799 41289536 6126263 0 73733 438489 3373903 4813927 573293 497493 272427 172740 72828636 24480419 49908285 48348217 16987006 18089403 228704 171970 235753444 227529942 307170795 300062181 3777935 4307934 277629 303290 30775000 27725000 5448598 5348794 40279162 37685018 X 65829016 65224089 172413547 168847206 28649070 28305868 266891633 262377163 307170795 300062181 X 1358330 -83255 -5789545 X X 0 1 X 1 0 X RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED 313523 313523 63381117 19072486 44308631 5533034 3931758 1601276 3600962 1476175 2124787 48348217 DUE FROM LAOHF 721412 INTEREST IN NET ASSETS - LAOHF 198373074 PREPAID RENT 28197984 OTHER ASSETS 199549 AWUIL - CURRENT TTEE HELD FUND 9128 INTERCOMPANY TRANSFERS 28795 227529942 OTHER LIABILITIES - NON-CURRENT 4767666 EST LIAB. - SELF INSURED W/COM 517013 INTEREST PAYABLE 64115 5348794 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, 2015 AND 2014. THE ORGANIZATION'S FEDERAL AND STATE INCOME TAX RETURNS PRIOR TO FISCAL YEAR 2012 AND 2011, 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 X X X X 0 0 0 0 0 0 0 0 0 ANTHONY SCADUTO MD PRESIDENT & CEO 735530 0 0 0 2312 0 17500 0 31904 0 787246 0 0 0 DIANE MOON CFO 234134 0 0 0 2312 0 0 0 10040 0 246486 0 0 0 MICHAEL SULLIVAN CHIEF PHILANTHROPY OFFICER 232626 0 0 0 2312 0 0 0 12054 0 246992 0 0 0 MAURICIO SILVA MEDICAL DIRECTOR 473941 0 0 0 2312 0 0 0 0 0 476253 0 0 0 RICHARD BOWEN PED ORTHO MD 471932 0 0 0 2312 0 13357 0 23988 0 511589 0 0 0 TIGRAN AVOIAN URGENT CARE MD 221438 0 0 0 2312 0 0 0 16029 0 239779 0 0 0 DORIS QUON HTC MD 184137 0 0 0 2312 0 0 0 5862 0 192311 0 0 0 ROBERT WARNOK NURSE PRACTITIONER 152901 0 0 0 2312 0 0 0 16029 0 171242 0 0 0 ZABELLE BOYANDIJIAN PHARMACY DIRECTOR 145003 0 0 0 2312 0 0 0 11495 0 158810 0 0 0 JAMES V LUCK JR MD FORMER PRESIDENT & CEO 143145 0 0 0 0 0 0 0 0 0 143145 0 0 0 A CALIFORNIA MUNICIPAL FINANCE AUTHORITY 201563466 2012-06-22 37025000 REFUNDING ISSUE - JULY 2000 BOND 1 0 0 A 40125000 40125000 37025000 3788425 325579 40813425 354484 1 0 0 1 A 0 0 0 0 0 0 0 A 1 0 0 0 0 1 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 VI, SECTION A, LINE 7A THE GOVERNANCE COMMITTEE OF THE ORTHOPAEDIC HOSPITAL'S BOARD OF DIRECTORS AND THE LOS ANGELES ORTHOPAEDIC HOSPITAL FOUNDATION'S BOARD OF TRUSTEES IS ASSIGNED WITH THE RESPONSIBILITY OF RECRUITING NEW DIRECTORS AND TRUSTEES FOR BOTH ORGANIZATIONS. THE COMMITTEE GOES THROUGH ITS DUE DILIGENCE PROCESS OF REVIEWING EACH POTENTIAL MEMBER'S STATUS IN THE COMMUNITY AND QUALIFICATIONS FOR BOARD MEMBERSHIP AND THEN MAKES IT RECOMMENDATION TO EACH BOARD. 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 BOARD OF DIRECTORS BEFORE FINALIZING. 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 REQUIRES 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 CEO - COMPENSATION IS REVIEWED AND DOCUMENTED BY THE COMMITTEE OF THE BOARD OF TRUSTEES ANNUALLY. KEY PHYSICIAN POSITIONS - COMPENSATION IS REVIEWED BY CONSULTANT, ATTORNEY AND THEN 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 USES THIS INFORMATION TO COMPARE SALARIES IN THE ORGANIZATION. FORM 990, PART VI, SECTION C, LINE 19 ANY INQUIRY SHOULD BE DIRECTED TO THE CFO OR TO AN ORTHOPAEDIC HOSPITAL OFFICER. FORM 990, PART IX, LINE 11G MEDICAL SERVICES & FEES: PROGRAM SERVICE EXPENSES 1,267,539. MANAGEMENT AND GENERAL EXPENSES 0. FUNDRAISING EXPENSES 0. TOTAL EXPENSES 1,267,539. PURCHASED SERVICES: PROGRAM SERVICE EXPENSES 1,005,114. MANAGEMENT AND GENERAL EXPENSES 573,756. FUNDRAISING EXPENSES 0. TOTAL EXPENSES 1,578,870. CONSULTING FEES: PROGRAM SERVICE EXPENSES 77,436. MANAGEMENT AND GENERAL EXPENSES 109,657. FUNDRAISING EXPENSES 0. TOTAL EXPENSES 187,093. CONTRACTED SERVICES: PROGRAM SERVICE EXPENSES 41,884. MANAGEMENT AND GENERAL EXPENSES 0. FUNDRAISING EXPENSES 0. TOTAL EXPENSES 41,884. OTHER PROFESSIONAL FEES: PROGRAM SERVICE EXPENSES 109,972. MANAGEMENT AND GENERAL EXPENSES 55,850. FUNDRAISING EXPENSES 0. TOTAL EXPENSES 165,822. RESEARCH PROJECTS: PROGRAM SERVICE EXPENSES 3,712,732. MANAGEMENT AND GENERAL EXPENSES 0. FUNDRAISING EXPENSES 0. TOTAL EXPENSES 3,712,732. FORM 990, PART XI, LINE 9: CHANGES IN VALUE OF ASSETS - TEMPORARILY RESTRICTED -2,346,341. CHANGES IN VALUE OF ASSETS - PERMANENTLY RESTRICTED -343,202. BOND PRINCIPAL -3,100,000. OTHER CHANGES IN NET ASSETS -2. FORM 990, PART XII, LINE 2C: THE PROCESS OF OVERSEEING THE AUDIT AND SELECTING AN INDEPENDENT ACCOUNTANT HAS NOT CHANGED FROM THE PRIOR YEAR. LA ORTHOPAEDIC HOSPITAL FOUNDATION 403 WEST ADAMS BLVD LOS ANGELES CA 90007 951644029 FUNDRAISING CA 501(C)(3) LINE 11A, I ORTHOPAEDIC HOSPITAL 1 0 0 1 0 0 0 0 0 0 0 0 0 0 0 1 0 1 0 0 LA ORTHOPAEDIC HOSPITAL FOUNDATION C 8916114 CASH LA ORTHOPAEDIC HOSPITAL FOUNDATION O 217319 CASH LA ORTHOPAEDIC HOSPITAL FOUNDATION Q 841909 CASH