Orthopaedic Hospital

“Joan and jeff prestine are mother and son. Both individuals are on the board of trustees.”

“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.”

“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.”

“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.”

“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.”

“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.”

“On april 11, 2017, orthopaedic hospital completed a transaction to finance the construction of its ambulatory surgery center and the renovation of its outpatient building ("the lowman building") through the new markets tax credit program. In connection with the nmtc, orthopaedic hospital formed a nonprofit supporting 501(c)(3) corporation named oic holding corp. Which received a donation from orthopaedic hospital of a portion of its fixed assets. The transfer constitutes less than 25% of the hospital's net assets.”

“Changes in value of interest in laohf's assets - temporarily restricted -27,995,367. Transfer of assets to oic holding corp - permanently restricted -10,172,426. Redesignation of unrestricted net assets to temp restricted net assets -2,552,000.”

“The process of overseeing the audit and selecting an independent accountant has not changed from the prior year.”