New York Society for the Relief of the Ruptured and Crippled, Maintaining the Hospital for Special Surgery

Transcription

1 New York Society for the Relief of the Ruptured and Crippled, Maintaining the Hospital for Special Surgery CONSOLIDATED FINANCIAL S ATEMENTS June 2017

2 New York Society For the Relief of the Ruptured and Crippled, Maintaining the Hospital for Special Surgery Consolidated Financial Statements For the period ended June 30, 2017 Descriptions Consolidated Statements of Financial Position.... Consolidated Statements of Operations and Changes in Net Assets Consolidated Statements of Cash Flows.... 5

3 New York Society for the Relief of the Ruptured and Crippled, Maintaining the Hospital for Special Surgery Consolidated Statements of Financial Position Assets Current assets: Cash and cash equivalents Receivables: Patient care, less allowance for doubtful accounts (2017 $19,560; 2016 $15,933) Insurance claims receivable Other Total receivables (Unaudited) (Audited) June 30 December (! n Thousands) $ 64,344 $ 95, , ,287 11,738 11,738 32,195 30, , ,022 Liabilities and net assets Current liabilities: Accounts payable and accrued expenses Accrued salaries and related liabilities Current portion of long-term debt Due to third-party payors net Insurance claims liabilities Other current liabilities Total current liabilities (Unaudited) June $ 85,029 39,155 40,699 3,873 11,738 19, ,296 (Audited) December $ 78,074 41,397 41,653 3,873 11,738 22, ,487 Investments Due from atliliates net 433, ,106 8,271 8,292 6,758 6,331 10,058 15,507 5,625 11,267 10, , ,464 Long-tenn debt Insurance claims liabilities, net of current 231,759 61, , , ,199 61, , , , ,131 Page

4 York Society for the Relief of and Crippled, Maintaining Hospital for Special Surgery 'I.A ~,.., '<,A,nat'-'lU\./Hl~ of Operations and Changes in Net Assets (Unaudited) (Unaudited) Six Months Ended June $ 468,547 87,606 8, ,927 $ 427,039 75,980 8, , ,442 64, ,096 4,292 31,645 4, , ,476 60, ,246 4,518 28,899 4, ,660 and change in Surgery attributable to 30,913 17,644 17,480 17,537 20,975 (3,495) 20,340 (2,803) 6,195 5,357 to interest in $ 33,613 1,140 34,753 $ 20, ,779 Page 2

5 New York Society for the Relief of the Ruptured and Crippled, Maintaining the Hospital for Special Surgery Consolidated Statement of Operations and Changes in Net Assets (continued) For the Period Ended June 30, 2017 Unaudited Unrestricted Unrestricted Quasi Endowment N oncontrolling Interest in Subsidiaries Total Unrestricted Temporarily Restricted Plant Replacement Total Specific and Temporarily Permanently Purpose Expansion Research Restricted Restricted Total Operating Income (from page 2) Noncontrolling members' capital contribution Operating loss attributable to noncontrolling interest in subsidiary Net assets released from restrictions for capital expenditures Changes in net unrealized gains and losses on investments Changes defined benefit postretirement plan liability $ 34,753 $ - $ - $ 34,753 $ (1, 140) (1,140) 3,538 3,538 13,385 13,385 - $ - $ - $ - $ - $ 34,753 (1,140) 3,538 13,385 'ontnlbuttorts, including Designated for quasi-endowment 8, ,630 20,945 5,951 26,896

6 New York Society for the Relief of the Ruptured and Crippled, Maintaining the Hospital for Special Surgery Consolidated Statement of Operations and Changes in Net Assets For the Period Ended June 30, 2016 Unaudited lj nrestricted Unrestricted Quasi Endowment Noncontrolling Interest in Subsidiaries Total Unrestricted Temporarily Restricted Plant Replacement Specific and Purpose Expansion Research Total Temporarily Restricted Permanently Restricted Total Operating Income (from page 2) Noncontrolling members' capital contribution Operating loss attributable to noncontrolling interest in subsidiary Net assets released from restrictions for capital expenditures Changes in net unrealized gains and losses on investments Changes in defined benefit pension and other postretirement plan liability to be recognized in $ 20,779 $ - $ - $ 20,779 $ (581) (581) 3,659 3, $ - $ - $ - $ - $ 20,779 (581) 3, ,605 7,158 11,494 23,257 6,237 29,494 4

7 Society for the Relief of and Crippled, Maintaining for Special Surgery Statements of Cash Flows (Unaudited) (Unaudited) Six Months Ended June assets to net cash for Special Surgery $ 63,802 $ 25,503 (6,195) (5,357) 33,387 30,504 (133) (149) (32,722) 883 (3,878) (1,994) (5,951) (6,237) assets net (747) (7,158) (21,000) (18,063) expenses and accrued salaries (10,983) (14,255) ,509 (1,823) 4,713 (7,474) payors 13,396 16,154 (4,801) (5,01 0) 34,057 5,618 (60,584) (41,982) (109) (2,204) 7,656 4,599 (53,037) (39,587) (18,531) (21,353) 19,993 assets- net 747 7,158 5,951 6,237 (11,833) 12,035 (30,813) (21,934) 95,157 89,867 $ 64,344 $ 67,933 Page 5

8 Society for the Relief of and Crippled, Maintaining for Special Surgery Consolidated Financial Statements 30,2017 Accounting Policies """"''A""''L'"'""""""''-" uuuuvw statements include the accounts of New York Society Maintaining the Hospital for Special Surgery (the LLC (Manhattan ASC), HSS Westside ASC, LLC Surgery, P.C. but do not include the Hospital's separately Corporation ("Properties"), The Hospital for Special Horizons, Inc. ("Horizons"), HSS Ventures, Inc. and Medical company organized under the laws of the State of New 2014 and will offer outpatient orthopedic surgery Hospital surgeons. The Hospital owns 51 o/o of the is owned by certain members of the Hospital's surgical non-controlling interests relating to the investment in the interests represent the portion of the Manhattan ASC not ""'-"~"'"H""u to be presented in the Hospital's consolidated ~uuuunuu ASC are expected to commence August cotnpany organized under the laws of the State of New 2016 and will offer outpatient orthopedic surgery Hospital surgeons. The Hospital owns 67% of the is owned by certain members of the Hospital's surgical non-controlling interests relating to the investment in the interests represent the portion of the Westside ASC not are required to be presented in the Hospital's consolidated Westside ASC are expected to commence during the Agreement with The Stamford Hospital (SH), an connecncm:, and Stamford Health, Inc. (SHI), the sole member ahr.rahr.n Agreement, the Hospital will manage the SH Department of discrete orthopedic space and activities within the main as HSS Orthopedics at Stamford Hospital and within SH's as HSS Orthopedics at Tully) that SH will operate. Page 6

9 AJU4"'""'',<;4' statements. York Society for the Relief of Ruptured and Crippled, Maintaining for Special Surgery Financial Statements (continued) 30,2017 Accounting Policies (continued) Agreement, only SH-credentialed surgeons employed by or with TJA Orthopedic Surgery, P.C. (PC), a New York owned by a designee of the Hospital will be permitted to utvijvul'-'" at Statnford Hospital and HSS Orthopedics at Tully. The U!UIJ'-'U"""" at Tullv commenced in March financial information have read or have access to the that the adequacy of additional disclosures needed for that context. The audited financial statements of the December 31, 2016 and 2015 are on file, with a nationally HH.4UVH repository, Digital Assurance Certification LLC, in accordance uu,..,,~,..,,,,a~ agreetnent with the Donnitory Authority ofthe State ofnew York, is incorporated herein. Accordingly, footnotes and other duplicate the disclosures contained in the Hospital's most statements have been omitted. In the opinion of management, all nec~essar v for a fair presentation of the results have been included in the such adjustments are considered by management to be of revenues are subject to seasonal variations caused by a not necessarily limited to, clitnate and weather conditions, "''::ttlents and admitting physicians and other factors relating to the procedures. Monthly operating results are not necessarily year for various reasons, including levels of occupancy and unusual or non-recurring items and other seasonal to all year-to-year comparisons.!j'-'luuu 6 Page 7

10 York Society for the Relief of Ruptured and Crippled, Maintaining Hospital for Special Surgery \.U..nvu Financial Statements (continued) 30,2017 '-'";o.""u"""... " Accounting Policies (continued) financial statements in conformity with U.S. generally tnanagement to tnake estimates and assumptions that assets and liabilities, such as estimated uncollectible for accounts fair values of alternative investments, insurance claims '"'"UHl'-H'-'U receivables from and payables to third-party payors, and assets and liabilities at the date of the consolidated financial the reported amounts of revenue and expenses during the lmuan'"'~ for doubtful accounts, the fair value of investments that are not 'VWU.lh> liabilities and receivables and the estimated net amount due accounts, require significant use of estimates. Actual results Management believes that amounts recorded based on are reasonable and any differences between estimates and actual on the Hospital's consolidated financial position. organization exempt from Federal income tax under Section and is exempt frmn New York state and local income taxes. are New York limited liability companies classified as u'""""'"'-'"" tax purposes. ~~~uvu ,.. ". statements. through July 13, 2017, which is the date the consolidated No subsequent events have occurred that require disclosure in Page 8

11 York Society for the Relief of and Crippled, Maintaining Hospital for Special Surgery Financial Statements (continued) June 30, 2017 certain legal actions arising out of the normal course of its cannot presently be determined. Hospital management is any, with respect to all of these matters will not have a financial position. $18.1 million, to its defined benefit pension plan for 6, respectively. Pension expense pertaining to the approximately $11.1 million and $12.6 million, respectively, measured at fair value, the Hospital measures fair value to sell an asset or paid to transfer a liability in an participants at the tneasurement date. Fair value unit of account from the Hospital's perspective. Page 9

12 Society for the Relief of and Crippled, Maintaining for Special Surgery Financial Statements (continued) June 30, 2017 IVI~c~a~nrlt-mPn1t~ (continued) is being measured by reference to the level at which the disaggregated) for purposes of applying other accounting that prioritizes observable and unobservable inputs levels, which are described below: active tnarkets that are accessible at the measurement fair value hierarchy gives the highest priority to are based on inputs not quoted in active markets, but when little or no market data is available. The fair to Level 3 inputs. '"'"~""'"'"''V.!L;U,U\.]U within the valuation hierarchy is based upon the lowest value measurement. In determining fair value, the maximize the use of observable inputs and minimize the extent possible and considers nonperformance risk in its Page 10

13 york Society for the Relief of and Crippled, Maintaining for Special Surgery '""""""'"" Financial Statements (continued) June 30, 2017 '-' u'-' n" (continued) uvuuvu benefit plan assets, carried at fair value as of June one of the three categories described above: Levell Level2 Level3 Total $ 64,344 $ - $ - $ 64,344 24, , , , , ,417 24,307-24,307 69,791 69,791 $470, $470,565 defined benefit plan assets, carried at fair value as of table below in one of the three categories described Levell Level2 Level3 Total $ 104,185 $ $ $ 104,185 22,561 22, , , , ,728 24,265 24,265 69,746 69,746 $497,168 $497,168...,~uuvul~, excluding alternative investments in the defined benefit and $185.2 million for the periods ending June 30, 2017 are reported using the equity method of accounting and, Page 11

14 York Society for the Relief of Ruptured and Crippled, Maintaining Hospital for Special Surgery ~VU..:JVJ.lUUL\,AJ rements (continued) Financial Statements (continued) 30,2017 value as of June 30, 2017 are classified in the table above: Levell Level2 Level3 Total 34,945 32,138 96,697 $163,780 34,945 32,138 96,697 $163,780 at net 105,372 2,973 $ 272,124 value as of Decetnber 31, 2016 are classified in the described above: Levell Leve12 Leve13 Total 20,013 25,475 94,218 $139,706 20,013 25,475 94,218 $139,706 v0c!hvull> "''"''"'"'~'"-'""at net 93,390 3,007 $ 236,103 Page 12

15 rements (continued) Society for the Relief of Crippled, Maintaining for Special Surgery... U.H'-'U Financial Statements (continued) June 30, 2017 common of corporations primarily domiciled in the United HJ.UlUC.U funds that invest primarily in short-term debt securities, paper and certificates of deposit. UVJUV>JU'-' and international equity 1nutual funds and exchange UlVVUJV tnutual fund which maintains a diverse portfolio of shortmanaged across the 1nortgage backed security, U.S. r.t-"'""~"'l,:.;. ~.!.u... fixed income sectors. '"'''"'..,H>JUHo;,. of credit mortgage and asset backed securities and common collective trust funds of common stock of corporations United States. coinrr1on stock of corporations primarily domiciled outside of the """",4"""''''' llivtuuu1~ emerging market countries. '-'>JUUVLU>J consisting primarily of publicly traded equity holdings short positions. are designed to provide returns largely movement, with lower correlations to domestic Underlying strategies can include credit, event driven, arbitrage strategies. debt partnerships. Page 13

16 rements (continued) Society for the Relief of and Crippled, Maintaining for Special Surgery UU\.'-tU Financial Statements (continued) June 30, 2017 v"ultal valuation methodologies for assets measured at fair quoted market prices. The methods described above not be indicative of net realizable value or reflective of future Hospital believes its valuation methods are appropriate and "'~pants, the use of different methodologies or assumptions to m:u-i-nu-. financial instruments could result in a different estimate of fair v0ullvlll"' including alternative investments reported using the on the Hospital's ability to redeem its investments at capital commitments and investments strategies of the defined benefit plan: Unfunded Redemption Fair Value Commitments Notice Period Funds Availabilit}: 52,328 n/a 0-30 days 1 month to 1.5 years 51,498 n/a days 1 week to 1.0 year 116,722 n/a days 1 month to 1.5 years 78,912 n/a days 3 months to 6 months 2,760 n/a 0-45 days 3 months to 6 months 14,703 14,843 n/a 6 months to 12 years $ 316,923 $ 14,843 Page 14

17 York Society for the Relief of Ruptured and Crippled, Maintaining Hospital for Special Surgery re:rnents (continued) uul\.ju Financial Statements (continued) June 30, 2017 Hospital's financial instruments that are not required 06/30/17 12/31/16 Fair Carrying Fair Carrying Value Value Value Value $ 278,283 $ 272,458 $ 296,966 $ 290,852 debt is based on discounted cash flow analysis, using debt and is classified as Level 2 within the valuation Page 15