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        <BusinessNameLine1>ERNST &amp; YOUNG US LLP</BusinessNameLine1>
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        <Name>
          <BusinessNameLine1>The New York Gracie Square Hospital Inc</BusinessNameLine1>
        </Name>
        <Address>
          <AddressLine1>420 East 76th STreet</AddressLine1>
          <City>new york</City>
          <State>NY</State>
          <ZIPCode>10021</ZIPCode>
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        <Other>psychiatric hospital</Other>
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          <BusinessNameLine1>The New York Gracie Square Hospital Inc</BusinessNameLine1>
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      <Form990ScheduleHPartVI>
        <Identifier>Schedule H, Supplemental Information</Identifier>
        <ReturnReference>PART I, LINE 3C:</ReturnReference>
        <Explanation>Gracie Square Hospital provides free or discounted care (charity care) to the medically indigent; those who lack the ability to pay for some or all or their medical expenses. Eligibility for charity care is based upon the patient's financial resources. PART I, LINE 7, COLUMN F Bad debt in the amount of $2,776,000 has been excluded from the total expenses utilized to compute the percentages that charity care and other community benefits represent as a percentage of adjusted expenses. PART I, LINE 7 Inpatient costs for the amounts reported were calculated on a cost per patient day basis. PART II See promotion of community health. PART III, LINE 4 The costs to provide care which has become uncollectible or bad debt has been calculated utilizing a cost to charge ratio. Payments, discounts and charity care are excluded from amounts considered to be bad debt. Receivables for Patient Care: Patient accounts receivable for which the Hospital receives payment under cost-based or prospective payment reimbursement formulae or negotiated rates, which cover the majority of the patient services, are stated at the estimated net amount receivable from such payors, which are generally less than the established billing rates of the Hospital. The amount of the allowance for uncollectibles is based on management's assessment of historical and expected collections, business economic conditions, trends in health care coverage and other collection indicators. Additions to the allowance for uncollectibles result from the provision for bad debts. Accounts written off as uncollectible are deducted from the allowance for uncollectibles. For the years ended December 31, 2010 and 2009, bad debt expense of approximately $2.8 million and $2.7 million, respectively. Charity Care: The Hospital provides care to patients who meet certain criteria under its charity care policy without charge or at amounts less than established rates. Because the Hospital does not anticipate collection of amounts determined to qualify as charity care, they are not reported as revenue. The Hospital estimates the costs of providing charity care to aggregate approximately $2.3 million and $1.6 million for the years ended December 31, 2010 and 2009, respectively. PART III, LINE 8 Medicare allowable costs are determined pursuant to the laws and regulations applicable to allowable costs and Medicare's cost step down methodology. PART III, LINE 9B Patients who are known to qualify for charity care are not subject to collection practices. PART V Needs Assessment Gracie Square Hospital continually monitors the health care needs of the community and the services which it can provide. During 2010 the Hospital had 98% occupancy rate evidencing a strong need for the Hospital's services within the community. Patient Education of Eligibility for Assistance Gracie Square Hospital educates patients about financial assistance that may be available to them including government run programs such as Medicare and Medicaid. The Hospital also assists patients in applying for such benefits. Community Information Gracie Square Hospital provides care primarily to patients residing in the greater New York City metropolitan area. Promotion of Community Health Gracie Square Hospital's commitment to our community and Hospital's exempt purpose is demonstrated by our goals and objectives. Successful attainment of our 2010 goals and objectives included maintenance and improvement of patient safety and the quality of services rendered to our patients, continued regulatory certification, an increased level of community service and a reduction in energy consumption. Gracie Square Hospital provides housing, clothing and other assistance to homeless patients upon discharge. Such assistance significantly reduces the chances of re-hospitalization. The Hospital also provided free mental health screenings, conducted educational presentations and provided free meeting space to several community based groups. Screening for Mental Health (SMH) is dedicated to promoting the improvement of mental health by providing the public with education, screening and treatment resources. SMH pioneered the concept of large-scale mental health screening and educational programs in 1991, with its flagship program, National Depression Screening Day (NDSD). SMH programs, provided both in-person and online, educate, raise awareness, and screen individuals for depression, bipolar disorder, generalized anxiety disorder, posttraumatic stress disorder, eating disorders, alcohol use disorders, and suicide. The Hospital participated in this community-based mental health screening event that was offered across the country as part of Mental Illness Awareness week. The goals of NDSD are to call attention to the prevalence of mental health disorders, as well as the availability of effective treatments for mental health disorders, and to connect those in need to the mental health care system. The program featured the following: an anonymous mental health self-assessment, a variety of education resources, a confidential interview with a mental health professional to discuss the results of the screening, a list of local referral resources. The National Alliance on Mental Illness of New York City Inc. (NAMI-NYC Metro) is a grassroots organization that provides support, education, and advocacy for families and individuals of all ethnic and socioeconomic backgrounds who live with mental illness. NAMI Walks NYC is a part of a nationwide fundraising and mental health awareness program held in over 50 cities around the country. In 2010, over 4000 participants raised over $400,000 from this event. The Hospital sponsored representatives from the Admitting and Administration Departments to participate in this 5-mile event. National Nutrition Month is a nutrition education and information campaign created by the American Dietetic Association. The campaign focuses attention on the importance of making informed food choices and developing sound eating and physical activity habits. The Hospital sponsored the event locally on each of the five days it was held. Scheduled community service events included: Nutritional Lectures, Nutritional Counseling, Health Food Sample Distribution and Body Fat Exams. The events were publicized in local community newspapers. The University of Miami Global Institute Project Medishare is a program that provided needed medical assistance to the victims of the earthquake in Haiti. The Hospital sponsored one of our registered nurses to work in this program in Haiti for a week. The majority of members of the Gracie Square Hospital's Board of Trustees reside in the community which the Hospital serves and are neither employees nor contractors of the Hospital, nor are members of their families. Requests for medical staff privileges are open to all qualified physicians within the community. During 2010 the Hospital was able to reduce its long term debt by $750,000 and invested $900,000 in capital improvement in order to increase patient safety and satisfaction, improve the Hospital's infrastructure and reduce energy consumption. To further our efforts to increase patient safety and satisfaction the Hospital expended $1,141,000 to provide private duty nurses to patients in need. Affiliated Health Care System Gracie Square Hospital is a member of the New York-Presbyterian Healthcare System. The New York-Presbyterian Healthcare System is a federation of top-quality hospitals, specialty institutes, and continuing care centers throughout New York, New Jersey, and Connecticut. It was founded to bring about a positive change in the way healthcare is delivered to the community. The New York-Presbyterian Healthcare System is dedicated to improving patient care, medical education and research throughout this region of the United States.</Explanation>
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        <Identifier>Supplemental Information</Identifier>
        <ReturnReference>Schedule J, Part I, Line 7</ReturnReference>
        <Explanation>All bonuses are granted at the discretion of and approved by the compensation committee of the Board of Trustees; they are based on the achievement of predetermined goals and objectives. Form 990, Part VII, Section A Certain officers and key employees of the New York and Presbyterian Hospital that are identified in Part VII as officers or trustees of New York Gracie Square Hospital are responsible for executing the mission and management of The New York and Presbyterian Hospital (NYP) and its affiliated entities. Compensation for 2010 of these upper level executives includes the payout of an annual incentive plan and a long-term incentive plan. This performance-oriented program conditions payments upon the achievement of multiple individual and group performance measures. Measures to monitor performance include: operational and financial strength, patient quality and safety, patient satisfaction, advancement of patient care, and people development and partnership. Incentive awards may only be granted if the organization achieves a financial surplus. Even if all relevant performance measurements are achieved, the NYP Board of Trustees retains full discretion to make or not make any incentive awards, or to reduce the amount of any incentive award. This initiative is critical to assuring that NYP has the requisite leadership to create and manage a highly motivated and engaged workforce, to drive superior performance throughout the organization and to achieve top tier medical center status. As a separate matter, due to restrictions imposed by the Internal Revenue Code, upper level executives are limited in the amount of benefits received under a tax-qualified retirement plan. Like many employers, NYP supplements these executives' pension benefits through a supplemental ("nonqualified") retirement plan. The supplemental retirement plan (SERP) is subject to a multi-year vesting requirement which places an executive's supplemental retirement benefit at risk of forfeiture if the vesting requirements are not satisfied. Once vested, however, provisions of the Internal Revenue Code require that the vested executive include in current income the value of his or her vested supplemental retirement benefit. Notwithstanding the legal requirement to recognize the vested value of the supplemental retirement benefit as current income, the supplemental retirement benefit will not be distributed to the executive until the executive actually retires from NYP (although, as permitted by the Internal Revenue Code, the supplemental retirement plan will effect a distribution of an amount necessary to satisfy the executive's tax liability resulting from the income recognition upon vesting). As noted, this supplemental retirement benefit will not be distributed to the executive until the executive actually retires from NYP. There are constantly changing legal, tax, accounting, and public disclosure rules for a SERP (supplemental employee retirement plan) in not-for-profit organizations. The Executive Compensation Committee continuously monitors these changes and incorporates any changes into the overall SERP plan design. In 2010, the plan was redesigned in anticipation of changes in deferred compensation rules in the not-for-profit environment and to make the value of the benefit easier to understand for participants. The redesigned plan maintains the target level of SERP benefits and modifies the vesting schedules to commence after five years of participation in the SERP, in prorated amounts through age 65. Consequently, for 2010, for certain individuals, there was a one time as well as an ongoing increase in the amount reflected in the SERP compensation due to the change in the vesting and amortization periods. As noted, this supplemental retirement benefit will not be distributed to the executive until the executive actually retires from NYP. As in past years, the Executive Compensation Committee of NYP requires a third party complete a review of the organization's compensation program to ensure its effectiveness in terms of government regulations, market conditions and the need to continually elevate organizational performance. The report also serves to meet the regulatory obligations to ensure that all elements of the executive compensation programs are reasonable. The individuals listed in Part VII that are compensated by New York Presbyterian Hospital devote an average of sixty hours per week to perform their responsibilities for the New York Presbyterian Hospital and other related organizations in the aggregate. Form 990, Part VII, Column B The hours shown for each officer and key employee are estimated average hours per week devoted to his/her responsibilities for the hospital. 35 of the 75 hours per week provided by Dr. Baturone were for on-call services, 26 of the 75 hours per week provided by Dr. Abkari were for on-call services. All of the 61 hours per week provided by Dr. Kambli were for on-call services.</Explanation>
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    <IRS990ScheduleO documentId="IRS990ScheduleO">
      <GeneralExplanation>
        <Identifier>Form 990 Supplemental Information</Identifier>
        <ReturnReference>Part VI, Section A, Line 2</ReturnReference>
        <Explanation>Family Relationships Board members Mrs. Cynthia Zirinsky and Mr. Joseph Peyronnin have a family relationship. Part VI, Section A, Lines 6 &amp; 7a Members or Stockholers The Hospital is a membership corporation, whose members are selected by New York-Presbyterian Healthcare System, Inc. (System, Inc.). System, Inc. is a tax-exempt organization, whose members are selected by New York-Presbyterian Foundation, Inc., which is also a tax exempt organization. The members of the organization elect the Hospital's board of trustees. Part VI, Section A, Line 11b Form 990 provided to Governing Board The Hospital's Controller prepares and compiles supporting work papers and related documents required to prepare the Form 990 and related schedules (the "return") than prepares a draft of the return to be reviewed by the Hospital's Chief Financial Officer ("CFO"). Upon satisfactory review by the CFO the draft return is forwarded to Ernst &amp; Young U.S. LLP (E&amp;Y). E&amp;Y performs review procedures designed to evaluate the correctness and mechanical accuracy of the return. Upon completion of their review procedures, E&amp;Y prepares a final draft which is reviewed by the Hospital's CFO and presented to the Board of Trustees for approval. A copy of the approved return is provided to all members of the Board of Trustees, prior to its filing with the IRS. Part VI, Section B, Line 12c Monitor and Enforce Compliance with Policies Conflict of interest questionnaires are obtained from officers, trustees and key employees upon appointment or hire and on an annual basis thereafter. The questionnaires are also required to be updated by these individuals at any time that there is a change in their circumstances that would alter their prior disclosures. The Questionnaires are reviewed by the Hospital's Corporate Compliance Officer ("CCO"). Any potential conflicts of interest are reported to the Hospital's Chief Executive Officer ("CEO"). If a potential conflict is not resolved the Hospital would refer the matter to legal counsel and reported it to the Audit and Compliance Committee of the Board of Trustees (the "Committee"). The CEO or CCO reports on the status of the Hospitals compliance with its conflict of interest policy to the Committee on an annual basis. Part VI, Section B, Lines 15a &amp; 15b Determination of Compensation The Hospital's Executive Compensation Committee of the Board of Trustees (the "Committee") oversees matters concerning compensation and benefits for officers and other executives. The members of the Committee include independent Trustees. Part of the Committees deliberation and decision process includes review of comparable and contemporaneous data. Part VI, Section C, Line 19 GOVERNING DOCUMENTS, CONFLICT OF INTEREST POLICY, AND FINANCIAL Statements Public inspection of the Hospital's Form 990, governing documents, conflict of interest policy and financial statements will be arranged upon request. PART VII, SECTION A DEVOTED HOURS TO RELATED ORGANIZATION ESTIMATED AVERAGE HOURS PER WEEK DEVOTED TO RELATED ORGANIZATIONS FOR WHICH COMPENSATION WAS REPORTED IN COLUMNS E OR F: IF NO AMOUNT WAS REPORTED IN COLUMN E NO HOURS WERE DEVOTED TO RELATED ORGANIZATIONS. IF AN AMOUNT WAS REPORTED IN COLUMN E, ALL HOURS EXCLUDING THOSE ESTIMATED IN COLUMN B WERE DEVOTED TO RELATED ORGANIZATIONS. Certain officers and key employees of the New York and Presbyterian Hospital that are identified in Part VII as officers or trustees of New York Gracie Square Hospital are responsible for executing the mission and management of The New York and Presbyterian Hospital (NYP) and its affiliated entities. Compensation for 2010 of these upper level executives includes the payout of an annual incentive plan and a long-term incentive plan. This performance-oriented program conditions payments upon the achievement of multiple individual and group performance measures. Measures to monitor performance include: operational and financial strength, patient quality and safety, patient satisfaction, advancement of patient care, and people development and partnership. Incentive awards may only be granted if the organization achieves a financial surplus. Even if all relevant performance measurements are achieved, the NYP Board of Trustees retains full discretion to make or not make any incentive awards, or to reduce the amount of any incentive award. This initiative is critical to assuring that NYP has the requisite leadership to create and manage a highly motivated and engaged workforce, to drive superior performance throughout the organization and to achieve top tier medical center status. As a separate matter, due to restrictions imposed by the Internal Revenue Code, upper level executives are limited in the amount of benefits received under a tax-qualified retirement plan. Like many employers, NYP supplements these executives' pension benefits through a supplemental ("nonqualified") retirement plan. The supplemental retirement plan (SERP) is subject to a multi-year vesting requirement which places an executive's supplemental retirement benefit at risk of forfeiture if the vesting requirements are not satisfied. Once vested, however, provisions of the Internal Revenue Code require that the vested executive include in current income the value of his or her vested supplemental retirement benefit. Notwithstanding the legal requirement to recognize the vested value of the supplemental retirement benefit as current income, the supplemental retirement benefit will not be distributed to the executive until the executive actually retires from NYP (although, as permitted by the Internal Revenue Code, the supplemental retirement plan will effect a distribution of an amount necessary to satisfy the executive's tax liability resulting from the income recognition upon vesting). As noted, this supplemental retirement benefit will not be distributed to the executive until the executive actually retires from NYP. There are constantly changing legal, tax, accounting, and public disclosure rules for a SERP (supplemental employee retirement plan) in not-for-profit organizations. The Executive Compensation Committee continuously monitors these changes and incorporates any changes into the overall SERP plan design. In 2010, the plan was redesigned in anticipation of changes in deferred compensation rules in the not-for-profit environment and to make the value of the benefit easier to understand for participants. The redesigned plan maintains the target level of SERP benefits and modifies the vesting schedules to commence after five years of participation in the SERP, in prorated amounts through age 65. Consequently, for 2010, for certain individuals, there was a one time as well as an ongoing increase in the amount reflected in the SERP compensation due to the change in the vesting and amortization periods. As noted, this supplemental retirement benefit will not be distributed to the executive until the executive actually retires from NYP. As in past years, the Executive Compensation Committee of NYP requires a third party complete a review of the organization's compensation program to ensure its effectiveness in terms of government regulations, market conditions and the need to continually elevate organizational performance. The report also serves to meet the regulatory obligations to ensure that all elements of the executive compensation programs are reasonable. The individuals listed in Part VII that are compensated by New York Presbyterian Hospital devote an average of sixty hours per week to perform their responsibilities for the New York Presbyterian Hospital and other related organizations in the aggregate.</Explanation>
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