2011-11-11T11:41:19-06:00 2010-12-31 ERNST & YOUNG US LLP 111 MONUMENT CIRCLE SUITE 2600 Indianapolis IN 46204 990 2010-01-01 131624135 New York Society for the Relief of the Ruptured and Crippled Maintaining the NEWY 2126061000 535 EAST 70TH ST STREET NEW YORK NY 10021 STACEY MALAKOFF 2011-11-11 3176817000 2010 2016-03-07 17:11:31Z LOUIS SHAPIRO 535 EAST 70TH STREET NEW YORK NY 10021 668985600 false X www.hss.edu X 1863 NY PROVIDE THE HIGHEST QUALITY PATIENT CARE, IMPROVE MOBILITY, AND ENHANCE THE QUALITY OF LIFE FOR ALL, AND ADVANCE THE SCIENCE OF ORTHOPEDIC SURGERY, RHEUMATOLOGY, AND THEIR RELATED DISCIPLINES. 44 39 3895 340 336174 -8988 44626203 44853465 517506174 574090241 -9248168 511041 32221472 33895459 585105681 653350206 0 0 0 0 286926035 313635075 0 0 0 266069284 286495810 552995319 600130885 32110362 53219321 678214280 791821780 329591726 378766335 348622554 413055445 X THE MISSION OF HOSPITAL FOR SPECIAL SURGERY IS TO PROVIDE THE HIGHEST QUALITY PATIENT CARE, IMPROVE MOBILITY, AND ENHANCE THE QUALITY OF LIFE FOR ALL AND TO ADVANCE THE SCIENCE OF ORTHOPEDIC SURGERY, RHEYMATOLOGY, AND THEIR RELATED DISCIPLINES THROUGH RESEARCH AND EDUCATION. WE DO THIS REGARDLESS OF RACE, COLOR, CREED, SEXUAL ORIENTATION, OR ETHNIC ORIGIN. false false 469930914 0 570090715 PATIENT CARE: HOSPITAL FOR SPECIAL SURGERY IS COMMITTED TO PROVIDING WORLD-CLASS CARE TO ITS PATIENTS AND HELPING THEM TO REGAIN THEIR MOBILITY, WHILE ALSO ADVANCING RESEARCH INITIATIVES TO EXPLORE AND IMPROVE TREATMENTS FOR ORTHOPEDIC AND RHEUMATOLOGIC CONDITIONS. IN 2010, HOSPITAL FOR SPECIAL SURGERY OPERATED 172 STAFFED BEDS (162 STAFFED BEDS PRIOR TO JULY 16, 2010) AND 29 OPERATING ROOMS (28 PRIOR TO MARCH 2010). WE PERFORMED 25,160 SURGERIES, AN INCREASE OF 1,014 OVER THE PRIOR YEAR, WHILE NON-SURGICAL OUTPATIENT VISITS NUMBERED 305,069, 11,702 MORE THAN 2009. HOSPITAL FOR SPECIAL SURGERY PROVIDED INPATIENT CARE TO 13,535 PATIENTS, 575 MORE THAN LAST YEAR. OF THOSE IN 2010, 13,114 WERE SURGICAL. TOTAL AMBULATORY SURGICAL CASES NUMBERED 11,712, AN INCREASE OF 421 FROM 2009. THE HOSPITAL HAS A DIVERSE PATIENT POPULATION SERVING THOSE WITH PUBLIC INSURANCE (MEDICARE AND MEDICAID), PRIVATE INSURANCE (VARIOUS PAYORS) AND THE UNINSURED. THE HOSPITAL MAINTAINS A FINANCIAL ASSISTANCE PROGRAM TO ASSIST THOSE THAT CAN NOT PAY FOR ITS SERVICES AND PROVIDES NUMEROUS OTHER COMMUNITY BENEFIT PROGRAMS. HOSPITAL FOR SPECIAL SURGERY IS ALSO RECOGNIZED AS A MAGNET HOSPITAL FOR EXCELLENCE IN NURSING CARE. THE HOSPITAL IS RECOGNIZED FOR ITS EXCELLENCE IN PATIENT CARE AND IS CONSISTENTLY RANKED BY U.S. NEWS AND WORLD REPORT IN ITS SPECIALTIES. 32888716 0 30277216 RESEARCH: The Research Division of Hospital for Special Surgery continued its activities in 2010 toward enhancing and expanding our research in musculoskeletal diseases. Research at Hospital for Special Surgery works to advance the understanding and treatment of musculoskeletal disorders through basic, translational and clinical research and education. The goals are to identify genetic, environmental, cellular, structural and molecular mechanisms underlying disorders important in orthopedics, rheumatology and related disciplines and to discover effective approaches for diagnosis prevention, and treatment of these disorders. The Research Division is funded by an operating budget of $35 million, supported in part by approximately $23 million in extramural funds, including 63 NIH grants. This research resulted in 271 publications from 86 scientists in 2010. Highlights for 2010 include: Translating scientific discoveries into clinical practice, expanding the osteoarthritis (OA) initiative designed to foster cross disciplinary research relevant to OA and planning an international conference on orthopedic device registries, patient registry and repository expansion for various morbidities and medical device therapeutics. 20899353 0 7281595 EDUCATION AND ACADEMIC AFFAIRS: The Hospital for Special Surgery Education & Academic Affairs Division continued to make strides towards the mission to be "The Most Trusted Educator" in the field of Musculoskeletal Medicine for patients, physicians, allied health professionals and the general public. In 2010 we strengthened strategic partnerships with our 23 education and academic affairs advisory committees and institutional partners, as well as furthering external community relations, which are now global in scope. The Hospital's Education & Academic Affairs Division trained 41 residents, 70 fellows, and 107 medical students, and credentialed 206 in-rotators and 240 consults. In addition we reached a total of 34,092 participants through education programs. This is a 26% increase from 2009, in which we disseminated state-of-the-art education programs through our establishment of ACGME Programs, CME accredited activities, Bioskills Education Laboratory sessions, International Learning and Training Center initiatives, Kim Barrett Memorial Medical Library users, and Public and Patient Education constituents. We continue to set the highest standard with our ACCME accredited programs with accreditation and facilitation of 14 live CME activities, 17 regularly scheduled sessions and providing 30,206 CME credits. In 2010, we continued to identify quality performance initiatives that will be integrated into CME programs for our faculty and house staff in 2011. 0 0 0 523718983 true true false true false false false false true true true false false true false true false false false true false false false false false true false false false true true false false false false false false false false true true true false false false false true true true false false true X 255 0 true 3895 true true true true CJ VI BD false false false false false false false false X 44 39 false false false false true true true true true false false true true true true true true true true false AL AK AZ AR CA CO CT DC FL GA HI IL KS KY LA ME MD MA MI MN MS NH NJ NM NY NC ND OH OK OR PA RI SC TN UT VA WA WV WI X MARC GOULD 2126061323 535 EAST 70TH STREET NEW YORK NY 10021 X Mathias Bostrom 13.38 X 191099 0 29079 Scott Rodeo 54.83 X 1100676 0 48325 Russell Warren 5.18 X 77383 0 26645 Philip Wilson Jr 1.21 X 0 90934 24403 Atiim Barber 1.65 X 0 0 0 James M Benson 0.37 X 0 0 0 Richard A Brand MD 0.59 X 0 0 0 Peter L Briger Jr 1.17 X 0 0 0 Michael Brooks 0.77 X 0 0 0 Charles Coleman III 0.97 X 0 0 0 Leslie Cornfeld 1.31 X 0 0 0 Cynthia Foster Curry 1.65 X 0 0 0 Barrie M Damson 2.8 X 0 0 0 James G Dinan 0.75 X 0 0 0 Winfield P Jones 0.82 X 0 0 0 Monica Keany 0.55 X 0 0 0 David H Koch 0.59 X 0 0 0 Lara Lerner 0.48 X 0 0 0 Marylin B Levitt 4.48 X 0 0 0 Alan S MacDonald 1.08 X 0 0 0 David M Madden 0.59 X 0 0 0 Richard L Menschel 5.85 X 0 0 0 Carl F Nathan MD 2.36 X 0 0 0 Dean R O'Hare 13.99 X 0 0 0 Aldo Papone 13.99 X 0 0 0 Gordon Pattee 0.37 X 0 0 0 Charlton Reynders Jr 1.26 X 0 0 0 Susan W Rose 3.88 X 0 0 0 William R Salomon 1.67 X 0 0 0 Jonathan Sobel 1.87 X 0 0 0 Robert K Steel 1.4 X 0 0 0 Daniel G Tully 7.37 X 0 0 0 Mrs Douglas A Warner III 5.58 X 0 0 0 Torsten N Wiesel MD 0.64 X 0 0 0 Kendrick R Wilson III 7.28 X 0 0 0 Ellen M Wright 2.41 X 0 0 0 Louis A Shapiro 47.5 X X 2031024 527756 57289 Mary Crow 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TEMPORARILY RESTRICTED FUNDS ARE USED FOR RESEARCH, EDUCATION, PATIENT NEEDS, OR RELATED ADMINISTRATIVE ACTIVITIES IN ACCORDANCE WITH DONOR RESTRICTIONS. PART X: NO FOOTNOTE REPORTING THE HOSPITAL'S LIABILITY FOR UNCERTAIN TAX POSITIONS UNDER ASC 740 WAS INCLUDED IN THE 2010 FINANCIAL STATEMENTS REPORTING, AS THERE WAS NO LIABILITY FOR UNCERTAIN TAX POSITIONS UNDER ASC 740. PART XI, LINE 8: REPRESENTS CHANGE IN DEFINED BENEFIT PENSION AND OTHER RETIREMENT PLAN LIABILITY TO BE RECOGNIZED IN FUTURE PERIODS, AND CHANGE IN INTEREST IN HSS FUND INC. PART XII, LINE 2D: REPRESENTS TRANSFERS FROM SPECIAL PURPOSE FUNDS AND NET ASSETS RELEASED FROM RESTRICTIONS FOR RESEARCH OPERATIONS AND EQUITY EARNING OF ALTERNATIVE INVESTMENTS INCLUDED IN UNRESTRICTED PORTFOLIO NET CHANGE IN UNREALIZED LOSSES ON SECURITIES INCLUDED IN ACCOUNTS MANAGED BY EXTERNAL PARTIES. XII, LINE 4B: REPRESENTS CONTRIBUTIONS TO SPECIFIFIC PURPOSE FUNDS, CONTRIBUTIONS TO ENDOWMENT FUNDS, CONTRIBUTIONS TO PLANT REPLACEMENT & REPLACEMENT FUNDS, FOUNDATION AND INSTITUTIONAL GRANTS (INCLUDES FUND, INC. CONTRIBUTIONS), GOVERNMENT GRANTS, RESTRICTED INVESTMENT INCOME, AND RESTRICTED (LOSS). Central America and the Caribbean Investments 8713028 Central America and the Caribbean 0 0 MEDICAL INSURANCE 15909959 0 0 0 0 24622987 24622987 true false false false true false Schedule F, Supplemental Information Health Education The Hospital reimburses its physicians and scientists for attending conferences, some of which may be outside of the United States. true true true X true X 500. true true true false true true 4765877 650917 4114960 0.00690 17445486 14886372 2559114 0.00430 22211363 15537289 6674074 0.01120 2226277 433914 1792363 0.00300 34191047 7281595 26909452 0.04520 39241722 3373554 35868168 0.06020 75659046 11089063 64569983 0.10830 97870409 26626352 71244057 0.11950 true 1749150 1189422 115584575 125737612 -10153037 true true 1 1 HOSPITAL FOR SPECIAL SURGERY

535 EAST 70TH STREET NEW YORK NY 10021

X X X X HOSPITAL FOR SPECIAL SURGERY 1 3 HOSPITAL FOR SPECIAL SURGERY

635 MADISON AVENUE NEW YORK NY 10022

AFFILIATED PHYSICIAN OFFICE HOSPITAL FOR SPECIAL SURGERY

333 EARLE OVINGTON BLVD UNIONDALE NY 11553

AFFILIATED PHYSICIAN OFFICE HOSPITAL FOR SPECIAL SURGERY

143 SOUND BEACH AVE GREENWICH CT 06870

AFFILIATED PHYSICIAN OFFICE Supplemental Information Required Descriptions Part I, Line 3A &3b Free care is provided to pediatric patients for clinic and diagnostic services whose family income is 100% or below the Federal Poverty Guidelines. Adult patients with family income 100% or below the Federal Poverty Guidelines are charged a nominal fee. Discounted care is provided to all other patients on a sliding scale basis whose family income is at or below 500% of The Federal Poverty Guidelines. Part I, Line 7, Column F: 2010 bad debt expense presented on the 2010 audited financial statements was $6,547,592. This included an amount of $2,375,000 for a specific case that was expected to be uncollectible. In 2011, subsequent to the issuance of the audited financial statements, payment was received on this specific case. Therefore, for purposes of Schedule H, Bad Debt Expense has been adjusted to exclude the reserve for the specific case. Adjusted Bad Debt Expense is $4,172,592. Part III, Line 4: A cost to charge ratio of 41.92% as calculated per the applicable Form 990 instructions was applied to the bad Debt Expense (at charges) of $4,172,592 to calculate the bad debt expense of $1,749,150 at cost. The uncompensated care text of the footnote to the organization's financial statement states, "As a matter of policy, the Hospital provides significant amounts of partially or totally uncompensated patient care. For Accounting purposes, such uncompensated care is treated either as charity care under the Hospital's Financial Assistance Policy or as Bad Debt Expense. The Hospital's Financial Assistance Policy ensures the provision of quality health care to the community served while carefully considering and taking into account the ability of the patient to pay. The Hospital's Financial Assistance Program's eligibility threshold is 500% of the Federal Poverty Guidelines, which is in excess of the New York State minimum requirements of 300%. The Hospital has defined charity care for accounting and disclosure purposes as the difference between its customary charges and the discounted rates given to patients in need of financial assistance. As the collection of amounts determined to qualify as charity is not pursued, such amounts are not reported as revenue. Patients who do not qualify for discounted fees are billed at the Hospital's established charges. Uncollected balances for these patients are categorized as bad debts. Total uncompensated care in 2010 and 2009 for all patient services aggregated approximately $10.4 million and $5.9 million respectively. In addition, the Hospital operates its clinics at a loss, to help meet the needs of low income and uninsured individuals, and also operates numerous outreach and education programs which benefit the communities it serves." Part III, Line 8: Over 40% of the Hospital's inpatient population is represented by Medicare. The Medicare shortfall of $10,153,037 as reported in Part III, Line 7 was calculated using Medicare cost reporting principles and a cost to charge ratio methodology. The Medicare shortfall should be considered as a community benefit because the Hospital is providing care to these patients with full knowledge that the Medicare reimbursement will not cover the cost of providing care to these residents of our community. Part III, Line 9B: Self pay balances, including those balances due after payment from an insurance carrier and the patient responsibility portion related to financial assistance after the discount has been applied, are handled according to the following policy: All patients are billed using standard cycles including the issuance of a detailed bill, collection letters and/or telephone calls, and then transfer to a "pre-collection status." These collection efforts are documented electronically in the patient's file. During the pre-collection phase, additional telephone calls and/or letters are made to attempt to collect payment in full. If unsuccessful, the account is transferred to a professional collection agency, no less than 120 days after the original self pay billing date. These reasonable collection efforts include all patient accounts, for both Medicare and non-Medicare patients. Medicare and non-Medicare accounts are recorded separately. Payments received by the collection agency reduce the amount recorded as Bad Debt. It is the Hospital's practice not to file suit, attach assets, or pursue liens. In certain instances, in coordination with the Hospital's internal legal counsel, the Hospital may take such measures if deemed warranted. Payment arrangements: if patients are unable to pay the entire balance in full, payment arrangements of monthly payment will be offered. Under such arrangements, accounts are typically paid in full within six to twelve months unless otherwise extended as part of the financial assistance program. A confirmation letter will be sent within 5 days, explaining the terms of the agreement. If monthly payment is missed, the account will progress to the next stage in the cycle. Supplemental Information Needs Assessment Hospital for Special Surgery's needs assessment process incorporates relevant National, State, and City health data, goals, and priorities. The Hospital utilizes the US Government Report, Healthy People 2010, which sets broad-based goals and objectives to expand Americans access to care, and to eliminate health disparities by age, gender, race, or disabilities, and pays special attention to information regarding the needs of all New Yorkers. The Hospital routinely conducts needs assessments among key groups in its community, on which to base multi-year programs. Other needs assessment data is gathered through a rigorous evaluation process of public programs. All Hospital public and patient education programs include participant questionnaires, and the feedback from these are tabulated, evaluated, and used in formulating new or refined offerings for the public health. Further, the Hospital's Service Excellence Council Reviews Press Ganey monthly patient comments and quarterly reports, and along with departmental managers and multidisciplinary teams develops improvements in services based on this feedback of patients' needs. Finally, to ensure the range of needs is interpreted at the highest level of management, The Board of Trustees receives and reviews ongoing reports that include results of patients' satisfaction surveys and a summary of the hospital-wide quality assessment and performance improvement program. Supplemental Information Patient Education of Eligibility for Assistance: Information about the availability of the Financial Assistance Program is posted in signage in all areas of the Hospital and ancillary service locations where a patient is registered for services. Information is also posted on the Hospital's web-site. Any Hospital bill received by the patient for service contains information on the availability of the Financial Assistance Program. Additionally, any bill sent to a patient by the Hospital or the Hospital's collection service contains information on the availability of the Financial Assistance Program. All registration, customer service, and patient accounting staff are trained on the availability of the program and instructed on how and when to communicate this information. The Financial Assistance Counselor informs patients if they qualify for free or low-cost health insurance such as Medicaid, Child Health Plus, and Family Health Plus, and makes the eligibility determination for the HSS Financial Assistance Program. The Counselor assists the patient in filling out all the forms. Supplemental Information Community Information: The Hospital for Special Surgery's community is defined by the five boroughs. The suburban counties in New York, New Jersey and Connecticut also comprise our secondary service area. The immediate community is defined by New York City's Community Board #8, which extends from 59th Street to 96th Street and East from Fifth Avenue to the East River. HSS patients come from many communities locally, regionally, nationally, as well as internationally. Also as a premier research and educational facility, HSS's community is broader than the immediate service area. We address needs of orthopedists and orthopedic scientists on a local, national, and international basis. Supplemental Information Promotion of Community Health: Hospital for Special Surgery's Community and Professional Outreach brings information to the community, educational and faith-based organizations, health fairs, and public events, as well as to public schools and health clinics. We reach out to underserved populations and seek to serve and collaborate with organizations to engage communities around major health issues. In 2010, the Hospital sponsored various community outreach programs including the Lupus Line, Lupus Asian Network, Osteoarthritis and Rheumatoid Arthritis Support and Education Program, Osteoporosis Program, and Myositis Support and Education Group. The Hospital also participated in community-based events sponsored by the Arthritis Foundation North East Region and the New York Chapter and The Alliance for Lupus Research's NYC Lupus Walk. The Hospital reached approximately 6,500 individuals through 200 outreach programs and distributed health education materials to over 40,000 individuals. The Hospital is also part of a National Clinical Research Translational Consortium whose goal is to assess and implement the needs of underserved populations in order to develop health programs to diverse cultural communities in the New York City five boroughs. As the Nation's leading Hospital for Orthopedics and Musculoskeletal care, the HSS community is National in that HSS plays a leading role in providing research and education in the treatment of orthopedic and musculoskeletal illness and conditions. Supplemental Information State Filing of Community Benefit Report The Hospital files a community benefit report in the State of New York. X true true X X X X X false false false true false true false false false Mathias Bostrom 191099 0 0 0 0 0 18093 0 10986 0 220178 0 0 0 Scott Rodeo 348829 0 0 0 751847 0 22050 0 26275 0 1149001 0 0 0 Louis A Shapiro 793772 198443 1212000 303000 25252 26313 14700 3675 31131 7783 2076855 539214 0 0 Stacey Malakoff 571358 100828 594600 104929 25494 14499 18743 3308 20433 3606 1230628 227170 0 0 Constance B Margolin 377391 66598 123236 21748 12032 2123 18743 3308 15291 2698 546693 96475 0 0 Deborah Sale 131834 244834 133106 247198 597 1108 7718 14333 14797 27480 288052 534953 0 0 Ralph Bianco 282880 31431 85933 9548 5698 633 19845 2205 25463 2829 419819 46646 0 0 Stephanie Goldberg 352887 0 124875 0 19 0 18375 0 17237 0 513393 0 0 0 Helen Pavlov 316538 0 347897 0 608195 0 22050 0 37908 0 1332588 0 0 0 Mary Crow 441314 0 143750 0 1821 0 22050 0 12135 0 621070 0 0 0 Lisa Goldstein 584720 87372 579928 86656 20189 3017 19184 2867 22472 3358 1226493 183270 0 0 Friedrich Boettner 293940 0 0 0 1268546 0 18375 0 28575 0 1609436 0 0 0 Jordan Metzi 163928 0 0 0 1220479 0 22050 0 13989 0 1420446 0 0 0 James Farmer 420100 0 0 0 793496 0 22050 0 27222 0 1262868 0 0 0 Edward Craig 268580 0 0 0 766394 0 22050 0 42342 0 1099366 0 0 0 Hollis Potter 202580 0 0 0 826706 0 22050 0 38383 0 1089719 0 0 0 Charles Cornell 216340 0 0 0 882 0 19800 0 20661 0 257683 0 0 0 Steven Goldring 464580 0 129001 0 2600 0 18375 0 25296 0 639852 0 0 0 Gregory Liguori 408581 0 60000 0 684 0 22050 0 27295 0 518610 0 0 0 Stephen Paget 499690 0 381250 0 95746 0 22050 0 36745 0 1035481 0 0 0 Thomas Sculco 993581 0 660000 0 9175 0 22050 0 23834 0 1708640 0 0 0 SCHEDULE J SUPPLEMENTAL INFORMATION Part I, Line 1A-First Class Travel The HSS travel policy states for business class travel prior approval from the CEO is required and usually only approved if the length of the flight is greater than 5 hours. Upgrade to first class occurs only if business class does not exist. With regards to the CEO and Surgeon-in-Chief travel, the CEO and Surgeon-in-Chief have approval from the Compensation Committee of the Board to fly business class if the flight is greater than 5 hours, in addition on a quarterly basis a committee of the Board of Trustees reviews the CEO's and Surgeon-in-Chief' expenses. Business class or first class travel are not treated as taxable compensation. Part I, Line 5A Certain employed physcians listed on Part VII, Section A, Line 1A receive compensation in part, based on professional service revenue generated from services they personally performed in their individual practices. No Physician is paid compensation contingent upon the organization's overall revenue or net earnings. Part I, Line 6A Performance based incentive awards are paid to officers and key employees based on a number of important quality, satisfaction, efficiency, and financial measures, of which achieving budget is a factor. Part II-Column B(ii) bonus and incentive compensation In 2010, certain executives received a long term incentive payment earned over a three year period, thus distorting the year to year comparison of compensation information. 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DOUGLAS A. WARNER III, A MEMBER OF HSS' BOARD OF TRUSTEES, IS THE SPOUSE OF A MEMBER OF THE BOARD OF DIRECTORS OF GENERAL ELECTRIC COMPANY ("GE"). HSS HAS HAD A LONG-STANDING BUSINESS RELATIONSHIP WITH GE THAT PRECEDED THE DATE THAT MRS. WARNER JOINED HSS' BOARD OF TRUSTEES, AND MRS. WARNER DOES NOT HAVE ANY ROLE IN THE CONSIDERATION OR ACQUISITION OF GE PRODUCTS. AMOUNT OF TRANSACTION: $1,465,463 DESCRIPTION OF TRANSACTION: IN 2010, HSS PURCHASED MISCELLANEOUS MEDICAL EQUIPMENT FROM GE. SPINE ART: THE BROTHER OF LISA GOLDSTEIN, EXECUTIVE VICE PRESIDENT AND CHIEF OPERATING OFFICER (EVP/COO) OF HSS, WAS A DISTRIBUTOR FOR SPINE ART. HIS RELATIONSHIP WITH SPINE ART WAS DISCONTINUED IN DECEMBER 2010. THE EXECUTIVE VP HAD NO ROLE IN THE CONSIDERATION OR ACQUISITION OF SPINE ART PRODUCTS. AMOUNT OF TRANSACTION: $18,500 DESCRIPTION OF TRANSACTION: SPINE ART IS A COMPANY BASED IN SWITZERLAND AND NEW YORK. SPINE ART DESIGNS AND MARKETS SPINE PRODUCTS INCLUDING FUSION AND MOTION PRESERVATION DEVICES. HSS PURCHASED SPINE PRODUCTS FROM SPINE ART IN 2010. THE EVP'S BROTHER MAY HAVE RECEIVED COMMISSIONS ARISING FROM SUCH PURCHASES (AMOUNT, IF ANY, UNKNOWN). 143 SOUND BEACH AVENUE ASSOCIATES, L.P.: HSS SUBLEASES PHYSICIAN OFFICE SPACE FROM HSS PROPERTIES CORPORATION, AN AFFILIATE, WHICH, IN TURN, LEASES PHYSICIAN OFFICE SPACE FROM 143 SOUND BEACH AVENUE ASSOCIATES, L.P. A SON OF RUSSELL F. WARREN, M.D., THE FORMER SURGEON-IN-CHIEF OF HSS AND AN ELECTED MEMBER OF HSS' BOARD OF TRUSTEES, IS A PART OWNER OF 143 SOUND BEACH AVENUE ASSOCIATES, L.P., THE LESSOR. HSS PROPERTIES CORPORATION ENTERED INTO THE ORIGINAL LEASE IN OCTOBER 2000, FOLLOWING A LENGTHY SEARCH FOR SUITABLE OFFICE SPACE IN THE AREA, AND AFTER AN INDEPENDENT VALUATION OF THE TERMS OF THE LEASE BY A PROFESSIONAL, COMMERCIAL REAL ESTATE FIRM CONFIRMED THE FAIR MARKET VALUE OF THE TERMS. AT THAT TIME, DR. WARREN WAS THE SURGEON-IN-CHIEF OF HSS AND AN EX OFFICIO MEMBER OF HSS' BOARD OF TRUSTEES. THE POTENTIAL CONFLICT OF INTEREST WAS DISCLOSED TO HSS' BOARD OF TRUSTEES AND TO THE BOARD OF TRUSTEES OF HSS PROPERTIES CORPORATION. DR. WARREN RECUSED HIMSELF FROM THE REVIEW, DELIBERATION AND VOTE. THIS SAME DUE DILIGENCE, DISCLOSURE AND REVIEW PROCESS (INCLUDING RECUSAL OF DR. WARREN) WAS FOLLOWED WHEN THE LEASE WAS RENEWED IN JUNE 2010. THE APPROVAL OF THE ORIGINAL LEASE AND OF THE RENEWAL WERE MADE BY THE VOTE OF THE DISINTERESTED MEMBERS OF THE RESPECTIVE BOARDS OF HSS AND HSS PROPERTIES CORPORATION. AMOUNT OF TRANSACTION: $317,536 DESCRIPTION OF TRANSACTION: HSS PROPERTIES CORPORATION (AN AFFILIATE OF HSS) MADE LEASE PAYMENTS IN 2010 FOR PHYSICIAN OFFICE SPACE IT LEASES THAT IS OWNED BY 143 SOUND BEACH AVENUE ASSOCIATES, L.P. HSS PROPERTIES SUBLEASES THE SPACE TO HSS. AMERICAN EXPRESS: ALDO PAPONE, CO-CHAIRMAN OF HSS' BOARD OF TRUSTEES, IS CURRENTLY A SENIOR ADVISOR AT AMERICAN EXPRESS. THE DECISION TO SELECT AMERICAN EXPRESS FOR THE BUYER INITIATED PAYMENT PROGRAM (BIPP) WAS MADE THROUGH A COMPETITIVE BID PROCESS AND INDEPENDENT OF MR. PAPONE. AMOUNT OF TRANSACTION: $39,432,970 DESCRIPTION OF TRANSACTION: IN 2010, HSS PAID ITS PARTICIPATING VENDORS $39,202,311 THROUGH THE AMERICAN EXPRESS BUYER INITIATED PAYMENT PROGRAM (BIPP). THE BIPP IS A PROGRAM NEGOTIATED THROUGH THE GREATER NEW YORK HOSPITAL ASSOCIATION (GNYHA). PARTICIPATING VENDORS HAVE THE BENEFIT OF GETTING PAID QUICKER VIA USE OF BIPP AND IN RETURN THE PARTICIPATING VENDORS PAY A FEE TO AMERICAN EXPRESS. HSS RECEIVES A REBATE BASED ON ITS PERCENTAGE OF THE TOTAL AMOUNT SPENT THROUGH THE GYNHA PROGRAM. SEPARATELY FROM THE BIPP PROGRAM, HSS INCURRED BUSINESS RELATED CHARGES OF $230,659 USING HSS' AMERICAN EXPRESS CORPORATE CARDS. FORTRESS INVESTMENT GROUP LLC: PETER BRIGER, A MEMBER OF HSS' BOARD OF TRUSTEES AND ONE OF TWO CO-CHAIRS OF HSS' INVESTMENT COMMITTEE OF THE BOARD'S FINANCE COMMITTEE, IS THE PRESIDENT AND A MEMBER OF THE BOARD OF DIRECTORS OF FORTRESS INVESTMENT GROUP, LLC. THE HSS INVESTMENT COMMITTEE IS COMPRISED OF SEVEN MEMBERS OF HSS' BOARD OF TRUSTEES, INCLUDING MR. BRIGER AND ANOTHER HSS BOARD MEMBER WHO SERVE AS CO-CHAIRS OF THE INVESTMENT COMMITTEE. ALL INVESTMENT COMMITTEE MEMBERS PARTICIPATE IN THE DELIBERATION AND DETERMINATION AS TO WHERE HSS FUNDS WILL BE INVESTED; FURTHER, IN ADDITION TO THE SEVEN VOTING MEMBERS OF THE INVESTMENT COMMITTEE, THERE ARE FOUR INDIVIDUALS WHO ATTEND THE INVESTMENT COMMITTEE MEETINGS AS NON-VOTING ADVISORS. HSS DOES NOT INVEST ANY FUNDS IN FORTRESS. AMOUNT OF TRANSACTION: N/A DESCRIPTION OF TRANSACTION: NEITHER HSS NOR ITS AFFILIATES INVEST IN FORTRESS; HOWEVER, HSS AND ITS AFFILIATES INVEST A PORTION OF ITS ENDOWMENT AND PENSION PORTFOLIO IN INVESTMENT FUNDS THAT MAY ALSO INVEST IN FORTRESS AND THE INVESTMENT FUNDS IN WHICH HSS INVESTS MAY ALSO RECEIVE FUNDS FOR INVESTMENT FROM FORTRESS. SYNTHES: DAVID HELFET, M.D., DIRECTOR OF THE ORTHOPEDIC TRAUMA SERVICE OF HSS AND AN EX-OFFICIO, NON-VOTING MEMBER OF HSS' BOARD OF TRUSTEES, IS A MEMBER OF THE BOARD OF DIRECTORS OF SYNTHES. HSS' PURCHASE OF PRODUCTS FROM SYNTHES IS MADE WITH INDEPENDENT INPUT AND PROCESSES IN PLACE AT HSS. AMOUNT OF TRANSACTION: $2,101,655 DESCRIPTION OF TRANSACTION: IN 2010, HSS PURCHASED ORTHOPEDIC IMPLANTS AND OTHER MEDICAL DEVICES AND SUPPLIES FROM SYNTHES. X 23 1364865 FMV false true true SCHEDULE M, PART I, LINE 32B All publicly traded securities are sold through JP Morgan Chase, 270 Park Avenue, New York, NY 10017. SUPPLEMENTAL INFORMATION Part VI-Various line items FROM 990, PART VI, SECTION A - LINE 6 & 7A MEMBERSHIP The Hospital for Special Surgery is a membership corporation. There are five members of the Corporation. Three of the five Hospital's members come from the Hospital's Board of Trustees (with one of three also designated by the Hospital to serve on the Board of an affiliate of New York-Presbyterian Hospital), a fourth member serves on the Board of the Affiliate of the New York-Presbyterian Hospital, and the fifth member serves on the Board of Trustees of Weill Cornell Medical College. The five Hospital members elect the Board of Trustees of the Hospital, upon the recommendation of candidates either by a member or by the Hospital Board of Trustees. FROM 990, PART VI, SECTION B - LINE 11B REVIEW PROCESS Prior to submitting the Form 990 to the Internal Revenue Service (IRS), there is an established process for review of the document in its entirety by the governing body whose evaluations are made in the best interest of HSS. The Form 990 is first reviewed with the Executive Compensation Committee of the Board of Trustees. The reviewed Form 990 is then submitted to the full Board of Trustees. The trustees are provided a copy of the Form 990 via compact disk prior to submission of the form. In addition, significant areas of Form 990 are discussed at a Board of Trustees meeting. FROM 990, PART VI, SECTION B - LINE 12C CONFLICT OF INTEREST POLICY On an annual basis, conflict of interest questionnaires are sent to all Board members, medical staff, management, fellows, residents, research professional staff, IRB members, and other designated groups. Our Conflict of Interest Policy also requires that any changes be communicated to the Office of Corporate Compliance within 30 days. The information received is entered into a database and reviewed for potential conflict of interest. The database information is also reviewed by the Executive Vice President, Legal Affairs, the Chief Executive Officer, and the Audit and Corporate Compliance Committee of the Board of Trustees. Summary information is provided to service chiefs, so that they are aware of the financial interests of the medical staff within their specialty. In addition to sending questionnaires directly to the group noted above, industry websites are monitored for disclosures related to HSS employees and medical staff, and letters are sent to vendors requesting they provide HSS with the information on any relationships that they have with HSS employees and/or medical staff. This information is entered into the database as well. HSS has a Conflict of Interest Task Force that meets three times a year or as necessary to review and update the Conflict of Interest Policies and Procedures. FROM 990, PART VI, SECTION B - LINE 15A & 15B PROCESS FOR DETERMINING COMPENSATION HSS is committed to ensuring that its Executive Compensation Program adheres to the highest standards of regulatory compliance and best corporate governance. The HSS Board has charged the Compensation Committee (which is composed of independent Board members with no conflicts of interest in regard to executive compensation) with making all decisions related to compensation for officers and key employees. The Committee retains an independent compensation consultant to assist it in this process. Compensation levels are established considering data for functionally comparable roles in comparable organizations, an assessment of performance, and other business judgment factors, consistent with HSS's executive compensation philosophy. The Committee's decisions are made in the best interests of HSS, and are intended to ensure the recruitment and retention of key executive talent, consistent with the market practices of other not-for-profit health care organizations of comparable scope, mission, and complexity. On an annual basis (including 2010), the Committee provides the full Board with an overview of its determinations and process. HSS established this process in an effort to comply with the intermediate sanctions guidelines for qualifying for the rebuttable presumption of reasonableness. FROM 990, PART VI, SECTION B - LINE 19 EXPLANATION OF DISCLOSURE GOVERNING DOCUMENTS Hospital for Special Surgery makes governing documents available to the general public upon request from the Development Office. Conflict of Interest Policy - Hospital for Special Surgery makes its Conflict of Interest Policy available to the general public upon request from the Development Office. Financial Statements - Hospital for Special Surgery makes its audited financial statements available to the general public upon request from the Development Office. HSS also provides summarized financial information in its annual report and website. The annual report is distributed throughout the Hospital and patient waiting rooms, and administration offices, and is accessible as a downloadable file from the HSS website. In 2010, the Annual Report was mailed to 4,304 donors, public officials, and other healthcare professionals and organizations. Part VII Column B- Average Hours Per Week Devoted to Related Organizations Part VII - Column B - Average Hours Per Week Devoted to Related Organizations Mathias Bostrom - Assistant Attending - .2 hrs/wk HSS Fund Inc., .2 hrs/wk HSS Properties Corp. Gregory Liguori - Assistant Attending - .2 hrs/wk HSS Fund Inc., .2 hrs/wk HSS Properties Corp. Scott Rodeo - Attending Physician - .2 hrs/wk HSS Fund Inc., .2 hrs/wk HSS Properties Corp. Russell Warren - Attending Physician - .2 hrs/wk HSS Fund Inc., .2 hrs/wk HSS Properties Corp. Phillip Wilson, Jr. - Attending Physician - 9.09 hrs/wk HSS Fund Inc., .2 hrs/wk HSS Properties Corp. Atiim Barber - Member - .2 hrs/wk HSS Fund Inc., .1 hrs/wk HSS Properties Corp. James M. Benson - Member - .04 hrs/wk HSS Fund Inc., .02 hrs/wk HSS Properties Corp. Richard A. Brand, MD - Member - .07 hrs/wk HSS Fund Inc., .04 hrs/wk HSS Properties Corp. Peter L. Briger, Jr. - Member - .14 hrs/wk HSS Fund Inc., .07 hrs/wk HSS Properties Corp. Michael Brooks - Member - .09 hrs/wk HSS Fund Inc., .05 hrs/wk HSS Properties Corp. Charles Coleman, III - Member - .11 hrs/wk HSS Fund Inc., .06 hrs/wk HSS Properties Corp. Leslie Cornfeld - Member - .16 hrs/wk HSS Fund Inc., .08 hrs/wk HSS Properties Corp. Cynthia Foster Curry - Member - .2 hrs/wk HSS Fund Inc., .1 hrs/wk HSS Properties Corp. Barrie M. Damson - Member - .35 hrs/wk HSS Fund Inc., .18 hrs/wk HSS Properties Corp., .18 hrs/wk HSS Horizons Inc. James G. Dinan - Member - .09 hrs/wk HSS Fund Inc., .05 hrs/wk HSS Properties Corp. Anne Ehrenkranz - Member - .06 hrs/wk HSS Fund Inc., .03 hrs/wk HSS Properties Corp. Michael Esposito - Member - .01 hrs/wk HSS Fund Inc., .01 hrs/wk HSS Properties Corp. Winfield P. Jones - Member - .1 hrs/wk HSS Fund Inc., .05 hrs/wk HSS Properties Corp. Monica Keany - Member - .07 hrs/wk HSS Fund Inc., .04 hrs/wk HSS Properties Corp. Thomas J. Kelly - Member - .04 hrs/wk HSS Fund Inc., .02 hrs/wk HSS Properties Corp. David H. Koch - Member - .07 hrs/wk HSS Fund Inc., .04 hrs/wk HSS Properties Corp. Lara Learner - Member - .06 hrs/wk HSS Fund Inc., .03 hrs/wk HSS Properties Corp. Marylin B. Levitt - Member - .53 hrs/wk HSS Fund Inc., .27 hrs/wk HSS Properties Corp. Alan S. MacDonald - Member - .13 hrs/wk HSS Fund Inc., .07 hrs/wk HSS Properties Corp. David M. Madden - Member - .07 hrs/wk HSS Fund Inc., .04 hrs/wk HSS Properties Corp. Richard L. Menschel - Chairman, Emeritus - .69 hrs/wk HSS Fund Inc., .35 hrs/wk HSS Properties Corp. Carl F. Nathan - Member - .28 hrs/wk HSS Fund Inc., .14 hrs/wk HSS Properties Corp. Dean R. O'Hare - Co-Chair - 1.75 hrs/wk HSS Fund Inc., .88 hrs/wk HSS Properties Corp., .88 hrs/wk HSS Horizons Inc. Aldo Papone - Co-Chair - 1.75 hrs/wk HSS Fund Inc., .88 hrs/wk HSS Properties Corp., .88 hrs/wk HSS Horizons Inc. Gordon Pattee - Member - .04 hrs/wk HSS Fund Inc., .02 hrs/wk HSS Properties Corp. Charlton Reynders, Jr. - Member - .15 hrs/wk HSS Fund Inc., .08 hrs/wk HSS Properties Corp. Susan W. Rose - Member - .46 hrs/wk HSS Fund Inc., .23 hrs/wk HSS Properties Corp. William R. Salomon - Member - .2 hrs/wk HSS Fund Inc., .1 hrs/wk HSS Properties Corp. Jonathan Sobel - Member - .22 hrs/wk HSS Fund Inc., .11 hrs/wk HSS Properties Corp. Robert K. Steel - Member - .17 hrs/wk HSS Fund Inc., .09 hrs/wk HSS Properties Corp. Daniel G. Tully - Vice Chair - 0.87 hrs/wk HSS Fund Inc., .44 hrs/wk HSS Properties Corp. Mrs. Douglas A. Warner, III - Member - .66 hrs/wk HSS Fund Inc., .33 hrs/wk HSS Properties Corp. Torsten N. Wiesel, MD - Member - .08 hrs/wk HSS Fund Inc., .04 hrs/wk HSS Properties Corp. Kendrick R. Wilson - Member - .86 hrs/wk HSS Fund Inc., .43 hrs/wk HSS Properties Corp. Ellen M. Wright - Member - .29 hrs/wk HSS Fund Inc., .15 hrs/wk HSS Properties Corp. Louis A. Shapiro - President & CEO - 9.0 hrs/wk HSS Fund Inc., 3.0 hrs/wk HSS Properties Corp., 3.0 hrs/wk HSS Horizons. Lisa Goldstein - EVP & COO - 6.0 hrs/wk HSS Properties Corp. Stacey Malakoff - EVP & CFO - 1.8 hrs/wk HSS Fund Inc., 7.2 hrs/wk HSS Properties Corp., 3.0 hrs/wk HSS Horizons Inc. Constance B. Margolin-SVP & Secretary- 3.0 hrs/wk HSS Fund Inc., 6.0 hrs/wk HSS Properties Corp., 3.0 hrs/wk HSS Horizons. Deborah Sale - EVP External Affairs - 36.0 hrs/wk HSS Fund Inc., 3.0 hrs/wk HSS Properties Corp. Part XI, Line 5 Reconciliation of Net Assets-Other Changes in Net Assets or Fund Balances: Includes Net Unrealized Gains $19,793,879, increase in interest of HSS Fund, Inc. $3,372,407 and increase in defined pension and post retirement plan liabilities ($11,952,716). HOSPITAL FOR SPECIAL SURGERY FUND INC 535 EAST 70TH STREET NEW YORK NY 10021 136714749 FUNDRAISING NY 501(C)(3) 7 NA HSS PROPERTIES CORPORATION 535 EAST 70TH STREET NEW YORK NY 10021 133246249 REAL ESTATE NY 501(C)(3) 11B HSS FUND INC HSS HORIZONS INC 535 EAST 70TH STREET NEW YORK NY 10021 134152131 RESEARCH SUPP NY 501(C)(3) 11B HSS FUND INC NEW YORK-PRESBYTERIAN FOUNDATION INC 525 EAST 68TH STREET BOX 156 NEW YORK NY 10065 134153668 HLTH CARE ORG NY 501(C)(3) 11A NA MIAC 535 EAST 70TH STREET NEW YORK NY 10021 SELF-INDEMNITY CJ HSS FUND INC C CORP 0 0 0.00000 HSS VENTURES 535 EAST 70TH STREET NEW YORK NY 10021 061624300 HEALTH CARE NY HSS FUND INC C CORP 0 0 0.00000 false false true true false false false false true true false true false false true true false false HSS FUND INC C 445763 HSS FUND INC I 262000 HSS FUND INC L 4807351 HSS FUND INC P 2090953 HSS PROPERTIES CORPORATION J 22211045 HSS PROPERTIES CORPORATION P 4294348 HSS HORIZONS INC D 121720 MIAC O 15909963 THE HOSPITAL FOR SPECIAL SUR 535 EAST 70TH STREET NEW YORK NY 10021 136714749 0 150000 150000 6158384 6308384 465419 116355 0 0 0 HOSPITAL FOR SPECIAL SURGERY 535 EAST 70TH STREET NEW YORK NY 10021 131624135 X 0 60006 60006 600070879 600130885 1000000 250000 0 0 0