2020-06-25T11:50:25-05:00 2019-06-30 221478099 COHNREZNICK LLP 400 CAPITOL MALL SUITE 1200 SACRAMENTO CA 95814 990 2018-07-01 951644604 ORTHOPAEDIC HOSPITAL ORTH 2137421044 403 WEST ADAMS BLVD LOS ANGELES CA 900072664 ANTHONY SCADUTO MD PRESIDENT & CEO 2137421044 2020-06-02 1 LISA M CUMMINGS CPA P00043433 9164429100 2020-05-27 209.59.242.35 2020-06-02 06:46:33 ED P DA39A3EE5E6B4B0D3255BFEF95601890AFD80709 5977B2EE4F245A7782B73B46A9C42D0275CA7C2B 2018 2020-09-23 17:36:50Z ORTHOPAEDIC INSTITUTE FOR CHILDREN ANTHONY SCADUTO MD 403 WEST ADAMS BLVD LOS ANGELES CA 900072664 110075349 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 8 239 8 0 0 13535761 9865406 50996148 59140175 474539 1273654 732825 39796114 65739273 110075349 0 0 0 0 16199935 16373492 0 0 2235904 45356635 57204032 61556570 73577524 4182703 36497825 298493505 326210838 45779302 30012457 252714203 296198381 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 54289912 0 56062404 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 64,601 OUTPATIENT VISITS FOR FISCAL YEAR 2019. 2133853 0 1530336 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. 484990 0 223391 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). 56908755 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 1 239 1 0 0 0 0 0 0 0 0 0 0 0 0 X 9 8 0 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 775928 0 56616 CINDY STARRETT ESQ DIRECTOR 2.00 1.00 X 0 0 0 EDWARD D FOX JR DIRECTOR 2.00 2.00 X 0 0 0 FRANCIS J HORNICEK MD PHD DIRECTOR 2.00 1.00 X 0 0 0 HILARY A NORTON DIRECTOR 2.00 1.00 X 0 0 0 JOEL M BERNSTEIN ESQ DIRECTOR 2.00 1.00 X 0 0 0 PEVERLEY J HUKILL PHD DIRECTOR 2.00 2.00 X 0 0 0 RICHARD E GISS DIRECTOR 2.00 2.00 X 0 0 0 STEVEN T VALENTINE DIRECTOR 2.00 1.00 X 0 0 0 DIEMLAN LANNIE TONNU CFO 38.00 12.00 X 379274 0 72260 DEBRA MATHIAS CHIEF OPERATING OFFICER 38.00 12.00 X 309701 0 68955 MAURICIO SILVA MEDICAL DIRECTOR 50.00 X 574552 0 49145 MICHAEL SULLIVAN VP/CHIEF PHILANTHROPY OFFICER 8.00 40.00 X 383216 0 71727 JAMIE WELLS CHIEF NURSING OFFICER 40.00 X 194907 0 53649 JENNIFER BECK PROFESSOR PHYSICIAN 40.00 X 422400 0 44269 RACHEL THOMPSON PROFESSOR PHYSICIAN 40.00 X 384906 0 40084 RICHARD BOWEN PED ORTHO MD 40.00 X 541821 0 71975 TIGRAN AVOIAN URGENT CARE MD 40.00 X 301301 0 60817 4268006 0 589497 38 0 1 0 KIRKLAND & ELLIS LLP 333 SOUTH HOPE ST LOS ANGELES CA 90071 ATTORNEY FEES 675541 LADUE CURRAN KUEHN LLC 100 EAST WAYNE ST SUITE 300 SOUTH BEND IN 466012352 ATTORNEY FEES 368132 SPARKFARM LLC 1722 ROUTH STREET SUITE 900 DALLAS TX 75201 MARKETING & ADVERTISING 321201 ROBERT HALF MANAGEMENT RESOURCES PO BOX 743295 LOS ANGELES CA 90074 STAFFING AGENCY 135190 COHNREZNICK LLP 1900 AVENUE OF THE STARS 28TH FLOO LOS ANGELES CA 90067 AUDIT FEES 125691 8 X 9865406 9865406 OUTPATIENT CLINICS 621400 54281510 54281510 RENTS - INTERCOMPANY 531390 1571527 1571527 RESEARCH PROJECTS 541700 1314974 1314974 ASSETS RELEASED FROM RESTRICTIONS 900099 1072164 1072164 UCLA - ALLIANCE REVENUE 900099 900000 900000 59140175 1273654 1273654 41120158 41120158 OTHER REVENUE 900099 450721 450721 PURCHASE DISCOUNTS 900099 288878 288878 PARKING REVENUE 812930 56373 56373 -2120016 -2120016 -1324044 110075349 57816131 0 42393812 X 2700429 1719569 742090 238770 10896113 6938386 2994299 963428 633200 403207 174006 55987 1331684 847985 365952 117747 812066 517104 223159 71803 1600 855 642 103 5238023 34420 5195814 7789 46917 25081 18831 3005 76234 76234 7684523 5791067 1630289 263167 84047 44930 33733 5384 667458 621412 38900 7146 713384 647520 58417 7447 157957 147060 9206 1691 11756 6285 4718 753 601836 584783 17053 2347340 1935885 402511 8944 333394 120724 160731 51939 PLASMA CONCENTRATE 36374236 33864881 2119916 389439 OTHER SUPPLIES 1218979 1134885 71043 13051 OTHER DIRECT EXPENSES 679702 622756 38984 17962 OTHER MEDICAL SUPPLIES 530549 493948 30921 5680 436097 406012 25416 4669 73577524 56908755 14432865 2235904 2042078 1522491 7216348 7714096 17129650 17129650 1097801 1252859 183298 272031 43958199 12430478 31248947 31527721 22147110 61160403 40864 217387409 205631587 298493505 326210838 10010111 9081198 98689 68002 18900000 16125000 16770502 4738257 45779302 30012457 X 88528914 128619881 149442063 149442063 14743226 18136437 252714203 296198381 298493505 326210838 X 36497825 1473132 -6 5513227 X X 0 1 X 1 0 X RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED 35525227 6614021 28911206 8365837 5816457 2549380 67135 67135 31527721 DUE FROM RELATED ORGANIZATIONS 7907928 INTEREST IN NET ASSETS - LAOHF 177749931 PREPAID RENT 19652106 OTHER ASSETS 199549 AWUIL - CURRENT TTEE HELD FUND 9128 INTEREST RECEIVABLE 112945 205631587 OTHER LIABILITIES - NON-CURRENT 1878668 EST LIAB. - SELF INSURED W/COM 706111 INTEREST PAYABLE 45365 DUE TO RELATED ORGANIZATIONS 2108113 4738257 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, 2019 AND 2018. THE ORGANIZATION'S FEDERAL AND STATE INCOME TAX RETURNS PRIOR TO FISCAL YEARS 2016 AND 2015, 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 0 0 0 0 0 0 0 0 0 ANTHONY SCADUTO MD PRESIDENT & CEO 756568 0 0 0 19360 0 53500 0 3116 0 832544 0 0 0 DIEMLAN LANNIE TONNU CFO 329212 0 33000 0 17062 0 41000 0 31260 0 451534 0 0 0 DEBRA MATHIAS CHIEF OPERATING OFFICER 296793 0 6000 0 6908 0 37133 0 31822 0 378656 0 0 0 MAURICIO SILVA MEDICAL DIRECTOR 491438 0 20000 0 63114 0 49145 0 0 0 623697 0 0 0 MICHAEL SULLIVAN VP/CHIEF PHILANTHROPY OFFICER 339512 0 20000 0 23704 0 48617 0 23110 0 454943 0 0 0 JAMIE WELLS CHIEF NURSING OFFICER 176412 0 0 0 18495 0 25265 0 28384 0 248556 0 0 0 JENNIFER BECK PROFESSOR PHYSICIAN 376395 0 25000 0 21005 0 35000 0 9269 0 466669 0 0 0 RACHEL THOMPSON PROFESSOR PHYSICIAN 347599 0 15000 0 22307 0 30808 0 9276 0 424990 0 0 0 RICHARD BOWEN PED ORTHO MD 486338 0 10000 0 45483 0 51520 0 20455 0 613796 0 0 0 TIGRAN AVOIAN URGENT CARE MD 272316 0 0 0 28985 0 35000 0 25817 0 362118 0 0 0 A CALIFORNIA MUNICIPAL FINANCE AUTHORITY 201563466 2012-06-22 37025000 REFUNDING ISSUE FOR JULY 2000 BOND 1 0 0 A 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 160523 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 2019. 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 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 VIII, LINE 5: IN OCTOBER 2018, ORTHOPAEDIC HOSPITAL ("OH") SETTLED A PATENT INFRINGEMENT LAWSUIT THAT STARTED IN 2012. AS A RESULT OF THIS SETTLEMENT, OH RECEIVED A NET SETTLEMENT AMOUNT OF $41,120,158 IN NOVEMBER 2018. FORM 990, PART IX, LINE 11G MEDICAL SERVICES & FEES: PROGRAM SERVICE EXPENSES 19,131. MANAGEMENT AND GENERAL EXPENSES 14,364. FUNDRAISING EXPENSES 2,292. TOTAL EXPENSES 35,787. OTHER PURCHASED SERVICES: PROGRAM SERVICE EXPENSES 1,985,574. MANAGEMENT AND GENERAL EXPENSES 124,295. FUNDRAISING EXPENSES 22,834. TOTAL EXPENSES 2,132,703. OTHER PROFESSIONAL FEES: PROGRAM SERVICE EXPENSES 1,975,012. MANAGEMENT AND GENERAL EXPENSES 1,482,834. FUNDRAISING EXPENSES 236,637. TOTAL EXPENSES 3,694,483. RESEARCH: PROGRAM SERVICE EXPENSES 1,799,634. MANAGEMENT AND GENERAL EXPENSES 0. FUNDRAISING EXPENSES 0. TOTAL EXPENSES 1,799,634. RECRUITMENT: PROGRAM SERVICE EXPENSES 11,716. MANAGEMENT AND GENERAL EXPENSES 8,796. FUNDRAISING EXPENSES 1,404. TOTAL EXPENSES 21,916. FORM 990, PART XI, LINE 9: CHANGES IN VALUE OF INTEREST IN LAOHF'S ASSETS - PERMANENTLY RESTRICTED 3,393,211. K-1 ORTHOPAEDIC INSTITUTE FOR CHILDREN AMBULATORY SURGERY CENTER, LLC 2,120,016. 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 W ADAMS LOS ANGELES CA 90007 951644029 FUNDRAISING CA 501(C)(3) LINE 12A, I ORTHOPAEDIC HOSPITAL 1 OIC HOLDING CORP 403 W ADAMS 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 CTR LLC 403 W ADAMS LOS ANGELES CA 90007 812159060 AMBULATORY SURGERY CENTER CA ORTHOPAEDIC HOSPITAL RELATED -2120016 173903 0 1 0.99000 ORTHOPAEDIC HOSPITAL MEDICAL GROUP INC 403 W ADAMS LOS ANGELES CA 90007 954595086 MEDICAL CARE CA N/A C 0 0 0 1 0 0 0 0 0 0 0 0 0 0 1 1 1 0 0 0 ORTHOPAEDIC INSTITUTE FOR CHILDREN FOUNDATION C 9865406 CASH ORTHOPAEDIC INSTITUTE FOR CHILDREN FOUNDATION N 342088 CASH ORTHOPAEDIC INSTITUTE FOR CHILDREN FOUNDATION O 383159 CASH ORTHOPAEDIC INSTITUTE FOR CHILDREN FOUNDATION P 5147000 CASH