2011-09-12T17:42:03-05:00 2010-10-31 JH COHN LLP 11755 WILSHIRE BLVD STE 1700 LOS ANGELES CA 90025 990 2009-11-01 951644604 Orthopaedic Hospital ORTH 2137421037 2400 S Flower Street los angeles CA 900072697 LOURDES ABCEDE 2137421037 2011-09-12 1 Stephen M Day 3104773722 2009 2016-03-07 17:11:31Z LOS ANGELES ORTHOPAEDIC MEDICAL CENT JAMES V LUCK JR MD 2400 S FLOWER STREET LOS ANGELES CA 900072697 38625182 0 X orthohospital.org X 1923 CA THE MISSION OF ORTHOPAEDIC HOSPITAL IS TO PROVIDE OUTSTANDING CARE FOR 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. 14 13 178 0 0 0 10747736 15731391 16777943 19627115 229809 249936 2654419 2446814 30409907 38055256 0 0 9738542 9684302 0 0 23800592 25093714 33539134 34778016 -3129227 3277240 282541298 286060695 66450982 59655280 216090316 226405415 SAME AS PART I, LINE 1. 0 0 20050571 18197966 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 54,050 OUTPATIENT VISITS FOR FISCAL YEAR 2010. 3310761 1329129 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. IN 2010, THESE MATERIALS GENERATED MORE THAN $1.9 MILLION IN ROYALTIES. 686449 100020 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). 24047781 1 1 0 0 0 0 0 0 0 1 0 1 0 0 0 0 0 0 0 0 1 1 0 1 0 0 0 0 0 0 0 0 0 0 0 0 0 1 0 0 0 1 65 0 1 178 1 0 0 0 0 0 0 0 0 0 0 0 0 0 0 14 13 1 0 0 0 1 1 1 1 1 0 0 1 1 1 1 1 1 1 1 0 CA X ORTHOPAEDIC HOSPITAL CO LOURDES ABCEDE 2137421037 2400 s flower street los angeles CA 90007 JAMES V LUCK JR MD 40.00 X X 393686 98422 125253 JACK R BORSTING PHD 2.00 X 0 0 0 JEFFREY J ECKARDT MD 2.00 X 0 0 0 WILLIAM G MCGAGH 2.00 X 0 0 0 CHRISTOPHER C MARTIN FAIA 2.00 X 0 0 0 JOEL M BERSTEIN 2.00 X 0 0 0 EDWARD SCHRECK PHD 2.00 X 0 0 0 NICCHOLAS V MCCLURE 2.00 X 0 0 0 STEVEN T VALENTINE 2.00 X 0 0 0 PAUL S VIVIANO 2.00 X 0 0 0 MICHAEL R LOMBARDI 2.00 X 0 0 0 EDWARD D FOX JR 2.00 X 0 0 0 EDWARD L SCHNEIDER MD 2.00 X 0 0 0 HUGH M GRANT 2.00 X 0 0 0 LOURDES ABCEDE 40.00 X 80138 80138 6154 HARRY A MCKELLOP PHD 40.00 X 1281761 0 21588 ANTHONY SCADUTO MD 40.00 X 560463 0 23389 MAURICIO SILVA MD 40.00 X 367666 0 11103 RICHARD BOWEN MD 40.00 X 429766 0 18343 VICTOR MARDER MD 32.00 X 224502 0 17689 DEBORAH JUSTICE 40.00 X 149600 0 10112 LEWIS ZIONTS MD 40.00 X 141634 0 21594 3629216 178560 255225 13 0 1 0 FU-WEN SHEN PHD 20308 TRAILS END ROAD WALNUT CA 91789 RESEARCH, INVENTOR 791256 1 15731391 15731391 outpatient clinics 621400 18197966 18197966 research projects 541700 1329129 1329129 medical education 611600 100020 100020 19627115 134148 134148 1939403 1939403 324697 27612 297085 297085 297085 658102 542314 115788 115788 115788 PARKING REVENUE 812930 109060 109060 OTHER REVENUE 900099 101266 101266 210326 38055256 19627115 0 2696750 2521454 813199 1708255 5345479 5170066 175413 408959 206542 202417 932335 669591 262744 476075 338439 137636 9448 9448 108052 108052 50000 50000 41745 41745 2108059 2108059 14812989 13254318 1558671 803341 666773 136568 96267 62426 33841 55567 13514 42053 2747667 2747667 3211295 323314 2887981 275401 61505 213896 PURCHASED SERVICES 395107 76519 318588 PROVISION FOR BAD DEBT 219571 219571 OTHER DIRECT EXPENSES 96899 40959 55940 TAXES & LICENSES 37323 9913 27410 DUES & SUBSCRIPTIONS 24983 13073 11910 34778016 24047781 10730235 0 4148664 385965 5711054 5685313 1874203 1955481 305885 305885 344927 368972 205290 99767 72205926 17985626 55725466 54220300 8202406 11150806 206023403 211888206 282541298 286060695 17652417 12308443 902216 711472 42999046 41607177 4897303 5028188 66450982 59655280 X 55346569 59370110 136152704 141218500 24591043 25816805 216090316 226405415 282541298 286060695 X 0 1 1 X 0 X RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED 313523 313523 27394520 12358391 15036129 6791986 4767766 2024220 37705897 859469 36846428 54220300 DUE FROM LOS ANGELES ORTHOPAEDIC HOSP. FOUNDATION 2248279 DUE FROM ORTHOPAEDIC HOSPITAL MED. GROUP, INC. 217453 DEFERRED FINANCING COST 1985483 INTEREST IN NET ASSETS - L.A. 166817852 ORTHOPAEDIC HOSP. FOUNDATION 34413171 OTHER ASSETS 2129556 OTHER RECEIVABLES 1334 AWUIL- CURRENT TRUSTEE HELD FUND 4075078 211888206 CAPITAL LEASE LIABILITY 179201 OTHER LIABILITIES- NON-CURRENT 4409453 EST LIAB. - SELF INSURED W/COMP 439534 5028188 38055256 34778016 3277240 746301 6291558 7037859 10315099 38787424 746301 27612 773913 38013511 41745 41745 38055256 34763883 27612 27612 34736271 41745 41745 34778016 Part X: Description of Uncertain Tax Positions Under FIN 48: THE ORGANIZATION HAS NO UNRECOGNIZED TAX BENEFITS AT OCTOBER 31, 2010 AND 2009. THE ORGANIZATION'S FEDERAL AND STATE INCOME TAX RETURNS PRIOR TO FISCAL YEAR 2007 AND 2006, RESPECTIVELY, ARE CLOSED AND MANAGEMENT CONTINUALLY EVALUATES EXPIRING STATUTES OF LIMITATIONS, AUDITS, PROPOSED SETTLEMENTS, CHANGES IN TAX LAW AND NEW AUTHORITATIVE RULINGS. Part XI, Line 8 - Other Adjustments: Change in value of assets - Temporarily Restricted: 5065796. change in value of assets - Permanently Restricted: 1225762. Part XII, Line 2d - Other Adjustments: Rental - Occupancy: 27612. Part XIII, Line 2d - Other Adjustments: Rental - Occupancy: 27612. 1 1 1 X 1 X 1 1 1 0 1 1 2 2108 2040160 0 2040160 0.05900 7 21149 6741957 4584531 2157426 0.06240 7 17303 8236166 5600593 2635573 0.07630 16 40560 17018283 10185124 6833159 0.19770 2 54589 44868 9721 0.00030 1 686450 100000 586450 0.01700 10454836 8728585 1726251 0.05000 2 3566131 3268531 297600 0.00860 0 0 5 14762006 12141984 2620022 0.07590 21 40560 31780289 22327108 9453181 0.27360 1 219571 132000 Orthopaedic Medical Center Campus

2400 South Flower Street los angeles CA 90007

X X X X X Part I, Line 3c: THE ORGANIZATION EXTENDS CHARITY CARE TO THOSE WHO QUALIFY UNDER THE ORGANIZATION'S ESTABLISHED MEDICAL AND FINANCIAL CONDITION REQUIREMENTS. Part VI, Line 2: Orthopaedic Hospital (OH) operates a community clinic in the Downtown Los Angeles area. The community clinic is licensed as "Los Angeles Orthopaedic Medical Center"Orthopaedic Hospital (OH) is the safety net provider of pediatric orthopaedic services in Los Angeles, with the highest population based concentration of under and uninsured children in the Country. Los Angeles County, OH's primary catchment area, supports 43 Federally Qualified Community Health Clinics (FQHCs) for the uninsured and under insured residents of Los Angeles. FQHCs provide only primary care, often posing a quandary for specialty care. OH works closely with this network of FQHCs to make the services this organization is capable of providing relevant and accessible to this patient population. The FQHCs, under one Medical Group called Health Care LA IPA, are the largest referral source of pediatric orthopaedic patients to Orthopaedic Hospital. Part VI, Line 3: Patient education and assistance with obtaining third party coverage starts with registration and extends through Patient Accounting. New patients without coverage presenting to the Orthopaedic Hospital Clinics for pediatric orthopedic care are advised upon their first encounter on the availability of Medi-Cal, CCS/Medi-Cal and Healthy Families coverage. Each of these programs starts with enrollment in an HMO and assignment to a primary care provider. The surest route to coverage is via an enrollment specialist in any of the 43 FQHCs that are convenient to the patient's home. Additionally, the social Services department at OH regularly engages patients in treatment who are likely to incur high out of pocket costs in assessment and enrollment in applicable coverage. Patients who are eventually billed, upon calling the Patient Accounting Department are advised of and encouraged to come and complete a charity application form, allowing the Orthopaedic Hospital personnel to make a fair and qualified assessment of the family's financial situation, and implement Orthopaedic Hospital's Charity Care policy, often resulting in a drastically reduced payment plan or a charitable write off. Part VI, Line 4: Orthopaedic Hospital's primary catchment area is Los Angeles County. In 2010, Orthopaedic Hospital's pediatric orthopedic patient care clinics provided care to 13,782 children with 36,024 visits. More than 65% of these services were provided to children with government based health coverage. The demographic compositions of the Orthopaedic Hospital clinics reflect the demographics of this community very closely. Part VI, Line 5: In July 2008, Orthopaedic Hospital and the EveryChild Foundation joined with other benefactors to build a playground on the Orthopaedic Hospital campus. While this may seem minor to an out-of-area reader, it is one of a very limited number of play areas open 7 days a week in this urban area that is packed with children. In addition to the playground being well used by families seeking close to home outside play-time, the playground area is used by several community outreach groups to promote increasing active lifestyles in this population prone to weight gain and its' ensuing health complications. Part VI, Line 6: In July 2005, Orthopaedic Hospital terminated its inpatient services and outpatient surgical services and transferred such activities to the Santa Monica-UCLA Medical Center, now relicensed as " Santa Monica-UCLA Medical Center and Orthopaedic Hospital". Orthopaedic Hospital continues to operate its outpatient clinics, medical education and research programs at its downtown Los Angeles facilty.Orthopaedic Hospital also continues to support the Orthopaedic Hospital Medical Magnet High School (OHMMHS) located adjacent to Orthopaedic Hospital. This high school (OHMMS) attracts children who have some interest in a health career. The Medical and Ancillary Staff at OH are very engaged in providing many learning experiences through in-school lectures, labs and volunteer opportunities, providing teenagers with a wide range of chances to see and even try out potential careers. 0 X X X X X X X 0 1 0 0 0 0 0 0 0 JAMES V LUCK JR MD 393686 98422 0 0 0 0 107000 0 14602 3651 515288 102073 630795 100499 LOURDES ABCEDE 80138 80138 0 0 0 0 0 0 3077 3077 83215 83215 112801 72001 HARRY A MCKELLOP PHD 173999 0 0 0 1107762 0 0 0 21588 0 1303349 0 1498655 0 ANTHONY SCADUTO MD 560463 0 0 0 0 0 0 0 23389 0 583852 0 434095 0 MAURICIO SILVA MD 367666 0 0 0 0 0 0 0 11103 0 378769 0 395888 0 RICHARD BOWEN MD 429766 0 0 0 0 0 0 0 18343 0 448109 0 340302 0 VICTOR MARDER MD 224502 0 0 0 0 0 0 0 17689 0 242191 0 172933 0 DEBORAH JUSTICE 149600 0 0 0 0 0 0 0 10112 0 159712 0 0 0 LEWIS ZIONTS MD 141634 0 0 0 0 0 0 0 21594 0 163228 0 0 0 Part I, Line 4b: JAMES V. LUCK, JR., M.D. $88,705 457(F) PLAN Form 990, Part VI, Section A, line 2 CHRISTOPHER MARTIN'S FIRM HAS CONTRACTED WITH A COMPANY WHERE MICHAEL LOMBARDI IS A SENIOR OFFICER ON AN UNRELATED REAL ESTATE DEVELOPMENT PROJECT IN LOS ANGELES. EDWARD SCHNEIDER IS A LIMITED PARTNER IN A PARTNERSHIP WHERE MICHAEL LOMBARDI IS A GENERAL PARTNER. Form 990, Part VI, Section A, line 6 ORTHOPAEDIC HOSPITAL is a California non profit public benefit membership corporation. ORTHOPAEDIC HOSPITAL's members are individuals who serve as ORTHOPAEDIC HOSPITAL'S Board of Directors and responsible for exercising all powers of ORTHOPAEDIC HOSPITAL, including electing directors and officers, approving budgets and overseeing all aspects of ORTHOPAEDIC HOSPITAL's activities. 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 DILIGENCE PROCESS OF REVIEWING POTENTIAL MEMBER'S STATUS IN THE COMMUNITY AND QUALIFICATIONS FOR BOARD MEMBERSHIP AND THEN MAKES ITS RECOMMENDATIONS TO EACH BOARD. Form 990, Part VI, Section A, line 7b 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 DILIGENCE PROCESS OF REVIEWING POTENTIAL MEMBER'S STATUS IN THE COMMUNITY AND QUALIFICATIONS FOR BOARD MEMBERSHIP AND THEN MAKES ITS RECOMMENDATIONS 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, CEO, SENIOR ADMINISTRATIVE TEAM, AUDIT COMMITTEE AND THE BOARD OF DIRECTORS. Form 990, Part VI, Section B, line 12c THE GOVERNANCE COMMITTEE OF THE ORTHOPAEDIC HOSPITAL'S BOARD OF DIRECTORS AND THE LOS ANGELES OTHOPAEDIC 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 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. 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 - COMPENSATIONS ARE REVIEWED BY CONSULTANT, LAWYER AND THEN APPROVED BY THE STRATEGIC COMMITTEE AND THE BOARD OF DIRECTORS. OTHER OFFICERS AND KEY EMPLOYEES - COMPENSATIONS ARE 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 ORTHOPAEDIC HOSPITAL OFFICER. FORM 990, PART XI, LINE 2C: No change FROM PRIOR YEAR LOS ANGELES ORTHOPAEDIC HOSPITAL FOUNDATION 2400 SOUTH FLOWER STREET LOS ANGELES CA 900072697 951644029 FUNDRAISING CA 501(c)(3) Line 11a, I 0 0 1 0 0 0 0 0 0 0 0 0 1 1 0 1 0 0 LA ORTHOPAEDIC HOSPITAL FOUNDATION C 15731390 LA ORTHOPAEDIC HOSPITAL FOUNDATION M 415265 LA ORTHOPAEDIC HOSPITAL FOUNDATION N 415265 LA ORTHOPAEDIC HOSPITAL FOUNDATION P 415266