2016-07-07T14:07:26-05:00 2015-08-31 273858252 DEAN DORTON ALLEN FORD PLLC 106 W VINE STREET SUITE 600 LEXINGTON KY 40507 990 2014-09-01 800639940 KENTUCKY EASTER SEAL SOCIETY INC GROUP RETURN KENT 8593677217 2050 VERSAILLES ROAD LEXINGTON KY 40504 GLENN NORVELL BOARD CHAIR 8593677217 2016-06-24 1 LEIGH MCKEE P00169845 8592552341 2014 2016-09-27 15:27:22Z X GARY PAYNE 2050 VERSAILLES ROAD LEXINGTON KY 40504 0 1 1 5231 X WWW.CARDINALHILL.ORG X 1923 KY DEFINING EXCELLENCE IN PHYSICAL REHABILITATION-GIVING HOPE AND ENHANCING OUTCOMES FOR PATIENTS AND FAMILIES. 23 23 0 23 0 0 1316306 0 60739689 0 1206782 0 236224 0 63499001 0 0 0 0 0 37434879 0 0 0 0 23489854 0 60924733 0 2574268 0 107135516 0 29861528 0 77273988 0 X THE KENTUCKY EASTER SEAL SOCIETY WAS FOUNDED IN 1923 WITH THE MISSION OF HELPING PEOPLE WITH DISABILITIES ACHIEVE MAXIMUM INDEPENDENCE. IN ACCORDANCE WITH THIS GOAL THE SOCIETY PROVIDED PROGRAMS AND SERVICES AT SITES THROUGHOUT THE STATE. PROGRAMS INCLUDED PHYSICAL, OCCUPATIONAL AND SPEECH THERAPY, REHABILITATION, VOCATIONAL EDUCATION AND TRAINING, CHILDCARE AND ADULT DAY CARE PROGRAMS. TO THE EXTENT FINANCIALLY FEASIBLE, THE SOCIETY ACCEPTED PATIENTS WHO WERE UNABLE TO PAY. 0 0 THE ORGANIZATION PROVIDED REHABILITATION SERVICES AND SPEECH THERAPY FOR HANDICAPPED INDIVIDUALS. FOR THE CURRENT FISCAL YEAR, THE ACTIVITY HAS BEEN REPORTED ON THE FINAL, SHORT TAX YEAR RETURN FOR CARDINAL HILL REHABILITATION HOSPITAL, WHICH WAS THE LAST AFFILIATE OF THE GROUP RETURN. THIS IS A FINAL RETURN FOR THE GROUP.CARDINAL HILL REHABILITATION HOSPITALLEXINGTON, KYCARDINAL HILL BEGAN AS A HOSPITAL FOR CHILDREN WITH POLIO IN 1950. SINCE THAT TIME, IT EVOLVED INTO ONE OF THE PREMIER POST ACUTE PROVIDERS OF PHYSICAL REHABILITATION SERVICES WITH 158 INPATIENT BEDS AND 74 LICENSED SKILLED BEDS. THE HOSPITAL SPECIALIZED IN THE TREATMENT OF SPINAL CORD INJURY, BRAIN INJURY, STROKE, ORTHOPEDIC AND NEUROLOGICAL CONDITIONS, AMPUTATION AND OTHER DISABLING OR TRAUMATIC CONDITIONS. CARDINAL HILL SERVED MORE THAN 9,000 CHILDREN AND ADULTS ANNUALLY FROM ALL OVER KENTUCKY AND NATIONWIDE. CARDINAL HILL PROVIDED PHYSICAL REHABILITATION FOR PEOPLE NEEDING INPATIENT, OUTPATIENT AND HOME HEALTH CARE SERVICES. CARDINAL HILL ALSO PROVIDED PEDIATRIC SERVICES FOR CHILDREN FROM BIRTH THROUGH ADULTHOOD BY OFFERING CHILD CARE SERVICES, AND THERAPY FOR ANY DISABLING AND/OR TRAUMATIC CONDITION.THE CARDINAL HILL HEALTHCARE SYSTEM WAS A 501(C)3 ORGANIZATION GOVERNED BY THE KENTUCKY EASTER SEAL SOCIETY, INC., AN AFFILIATE OF NATIONAL EASTER SEALS SOCIETY. SERVICES INCLUDED INPATIENT HOSPITAL CARE FOR PHYSICAL REHABILITATION NEEDS AND MEDICALLY COMPLEX CLIENTS. IN ADDITION TO THE THREE INPATIENT PROGRAMS, OUTPATIENT THERAPY, CHILDCARE, ADULT DAY HEALTH, AND RECREATIONAL PROGRAMS WERE ALSO AVAILABLE. THE HEALTHCARE SYSTEM WAS ONE OF THE COMMONWEALTH'S LARGEST PROVIDERS OF PHYSICAL REHABILITATION SERVICES, WITH CORPORATE HEADQUARTERS LOCATED IN LEXINGTON, KY. 1 0 0 0 0 0 0 0 0 1 0 0 0 0 0 0 0 1 0 0 0 0 0 0 0 0 0 0 0 1 0 0 0 0 0 0 0 0 0 0 1 0 0 1 0 0 0 1 0 0 0 0 0 0 0 0 0 0 0 0 0 X 23 23 0 0 0 0 0 0 0 1 1 0 0 1 1 1 1 1 1 1 1 0 KY X THE ORGANIZATION 8593677217 2050 VERSAILLES ROAD LEXINGTON KY 40504 J HAGAN CODELL ASST. TREASURER 1.00 X 0 0 0 MIKE KANAREK DIRECTOR 1.00 X 0 0 0 CHARLOTTE LUNDERGAN ASST. SECRETARY 1.00 X 0 0 0 GLENN NORVELL VICE CHAIR 1.00 X 0 0 0 RICHARD STURGILL SECRETARY 1.00 X 0 0 0 TED RENAKER TREASURER 1.00 X 0 0 0 PAUL HONEYCUTT DIRECTOR 1.00 X 0 0 0 GREGG THORNTON DIRECTOR 1.00 X 0 0 0 ROGER DALTON DIRECTOR 1.00 X 0 0 0 JIMMY NASH CHAIR 1.00 X 0 0 0 RODNEY PARSONS DIRECTOR 1.00 X 0 0 0 LAWRENCE KUHL DIRECTOR 1.00 X 0 0 0 JOHN G SULLIVAN DIRECTOR 1.00 X 0 0 0 SPENCER NOE DIRECTOR 1.00 X 0 0 0 BOB ROKICKI DIRECTOR 1.00 X 0 0 0 ROGERS BEASLEY DIRECTOR 1.00 X 0 0 0 WES BRANSTETTER DIRECTOR 1.00 X 0 0 0 CONNIE BARNHART DIRECTOR 1.00 X 0 0 0 GARY COX DIRECTOR 1.00 X 0 0 0 SISI HOWARD DIRECTOR 1.00 X 0 0 0 WARREN HOFFMAN DIRECTOR 1.00 X 0 0 0 ROBERT ELLIOTT DIRECTOR 1.00 X 0 0 0 KEN HILER DIRECTOR 1.00 X 0 0 0 MARTIN LAUTNER CFO 39.00 1.00 X 0 183959 14470 MAUREEN COUTURE VP NURSING SERVICES UNTIL 01/16/15 40.00 X 0 146474 8956 GARY PAYNE CEO 39.00 1.00 X 0 384502 20828 DANIEL HUDSON VP THERAPY SERVICES 40.00 X 0 117772 5819 NANCY MITCHELL VP NURSING SERVICES 40.00 X 0 88519 9890 0 921226 59963 0 0 1 0 0 0 0 0 0 0 0 0 0 10043348 0 0 0 10605639 0 0 0 0 516388 0 781987 0 0 0 58682354 0 21152244 0 0 0 0 5353556 0 107135516 0 -13062214 0 9227 0 38653783 0 2576008 0 1684724 0 29861528 0 X 63609187 0 9044854 0 4619947 0 77273988 0 107135516 0 X 0 -77273988 X X 0 1 X 1 0 X 1704130 1995450 2914580 1316306 7930466 1704130 1995450 2914580 1316306 7930466 1809262 6121204 583667 601218 644910 621031 2450826 10381292 241904673 0.58960 0.61310 X 21580537 0 0 21580537 19079173 65362 2575867 139865 21580537 24957384 1823554 2457286 10159051 19079173 29158036 100121 1743226 6043999 24957384 31888635 102968 4735861 7569428 29158038 1 0 0 PART V, LINE 4: ENDOWMENT FUNDS SUPPORTED THE MISSION OF THE KENTUCKY EASTER SEAL SOCIETY, PROVIDING FACILITIES AND QUALITY CARE TO PATIENTS AND CLIENTS. ENDOWMENT FUNDS REPRESENT THE ASSETS HELD IN TRUST BY OTHERS AND RESTRICTIONS PLACED BY DONORS WITH THE GIFT. ENDOWMENT FUNDS WERE DISTRIBUTED TO KENTUCKY EASTER SEAL SOCIETY, INC. (KESS) AS PART OF THE CARDINAL HILL REHABILITATION HOSPITAL'S LIQUIDATION. KESS RETAINED THE ENDOWMENT CHARACTER OF THESE FUNDS. 1 X X X 0 0 0 0 0 0 0 0 0 MARTIN LAUTNER CFO 0 183959 0 0 0 0 0 8334 0 6136 0 198429 0 0 MAUREEN COUTURE VP NURSING SERVICES UNTIL 01/16/15 0 146474 0 0 0 0 0 26 0 8930 0 155430 0 0 GARY PAYNE CEO 0 384502 0 0 0 0 0 8638 0 12190 0 405330 0 0 PROPERTY, PLANT AND EQUIPMENT 2015-04-30 42579546 FAIR MARKET VALUE 630860407 HEALTHSOUTH CORPORATION AND SUBSIDIARIES 3660 GRANDVIEW PARKWAY SUITE 200 BIRMINGHAM AL 35243 FOR PROFIT CORPORATION CERTIFICATE OF NEED 2015-04-30 5548000 FAIR MARKET VALUE 630860407 HEALTHSOUTH CORPORATION AND SUBSIDIARIES 3660 GRANDVIEW PARKWAY SUITE 200 BIRMINGHAM AL 35243 FOR PROFIT CORPORATION NONCOMPETE AGREEMENT 2015-04-30 18000 FAIR MARKET VALUE 630860407 HEALTHSOUTH CORPORATION AND SUBSIDIARIES 3660 GRANDVIEW PARKWAY SUITE 200 BIRMINGHAM AL 35243 FOR PROFIT CORPORATION TRADE NAME 2015-04-30 780000 FAIR MARKET VALUE 630860407 HEALTHSOUTH CORPORATION AND SUBSIDIARIES 3660 GRANDVIEW PARKWAY SUITE 200 BIRMINGHAM AL 35243 FOR PROFIT CORPORATION MEDICARE 2015-04-30 180000 FAIR MARKET VALUE 630860407 HEALTHSOUTH CORPORATION AND SUBSIDIARIES 3660 GRANDVIEW PARKWAY SUITE 200 BIRMINGHAM AL 35243 FOR PROFIT CORPORATION ACCOUNTS RECEIVABLE AND OTHER CURRENT ASSETS 2015-04-30 9831867 FAIR MARKET VALUE 630860407 HEALTHSOUTH CORPORATION AND SUBSIDIARIES 3660 GRANDVIEW PARKWAY SUITE 200 BIRMINGHAM AL 35243 FOR PROFIT CORPORATION NET ASSETS 2015-04-30 77273988 NET BOOK VALUE 610444712 KENTUCKY EASTER SEAL SOCIETY INC 2050 VERSAILLES ROAD LEXINGTON KY 40504 501(C)(3) 1 1 0 0 1 0 0 1 1 1 PART I, LINE 2E: EXPLANATION OF INVOLVEMENT: CARDINAL HILL REHABILITATION HOSPITAL (CHRH) WAS THE LAST ORGANIZATION OF THE GROUP AND PRIMARILY THE ASSETS WERE SOLD TO HEALTHSOUTH CORPORATION, AN UNRELATED ENTITY, IN AN ARM'S LENGTH TRANSACTION. THE CEO, CFO, AND MOST OTHER MANAGEMENT AND EMPLOYEES TRANSITIONED FROM CHRH TO HEALTHSOUTH. VIRGINIA WURZBACK BECAME THE EXECUTIVE DIRECTOR OF KENTUCKY EASTER SEALS SOCIETY, INC. (KESS). THE BOARD OF DIRECTORS CONTINUED ON AS THE BOARD OF DIRECTORS OF KESS. NO OTHER OFFICER, DIRECTOR, OR KEY EMPLOYEE HAD A BUSINESS RELATIONSHIP WITH HEALTHSOUTH, BEFORE OR AFTER THE TRANSACTION, OTHER THAN THE EMPLOYEES WHO TRANSITIONED TO HEALTHSOUTH. CHRH'S REMAINING NET ASSETS WERE TRANSFERRED TO KESS, ITS 501(C)(3) PARENT IN COMPLETE LIQUIDATION. PART I, LINE 6C: $40,265,044 OF TAX EXEMPT BONDS WERE PAID OFF WITH PROCEEDS RECEIVED FROM THE SALE OF THE HOSPITAL TO HEALTHSOUTH CORPORATION. FORM 990, PART VI, SECTION B, LINE 11 THE BOARD OF DIRECTORS HAVE BEEN GIVEN THE OPPORTUNITY TO REVIEW FORM 990 IN ITS ENTIRETY. ADDITIONALLY, KEY MEMBERS OF THE BOARD OF DIRECTORS HAVE REVIEWED FORM 990 WITH THE ACCOUNTING MANAGER. FORM 990, PART VI, SECTION B, LINE 12C THE ENTITY REQUIRED OFFICERS, DIRECTORS, AND TRUSTEES TO ANNUALLY REVIEW AND DISCLOSE IN WRITING TRANSACTIONS WITH THE ENTITY. FORM 990, PART VI, SECTION B, LINE 15 QUESTION 15A THE OVERSIGHT COMMITTEE, COMPRISED SOLELY OF INDEPENDENT MEMBERS OF THE BOARD OF DIRECTORS, SERVING AS A COMPENSATION COMMITTEE, REVIEWED COMPARABILITY AND OTHER COMPENSATION DATA OBTAINED FROM INDEPENDENT COMPENSATION DATA SOURCES TO DETERMINE THE COMPENSATION OF THE CEO. THE DELIBERATION AND DECISION OF THE CEO'S COMPENSATION WAS DOCUMENTED IN THE STANDARD DOCUMENTATION OF COMPENSATION ADJUSTMENTS MAINTAINED IN PERSONNEL RECORDS. THE HUMAN RESOURCE DIRECTOR ASSISTED THE COMMITTEE IN PREPARING AND EXECUTING THE APPROPRIATE PERSONNEL AND PAYROLL RECORDS. THE HUMAN RESOURCE DIRECTOR MAINTAINED CONTROL OF THE PERSONNEL RECORDS OF THE CEO. QUESTION 15B THE CHIEF EXECUTIVE OFFICER REVIEWED COMPENSATION OF OFFICERS OF THE COMPANY. IN THE COURSE OF DETERMINING COMPENSATION FOR THE OFFICERS OF THE ORGANIZATION, THE HUMAN RESOURCE DIRECTOR REVIEWED OUTSIDE COMPETITIVE SOURCES. IN ADDITION, FORMAL, WRITTEN PERFORMANCE EVALUATIONS WERE COMPLETED ANNUALLY ON THE OFFICERS BY THE CEO. THE DELIBERATION AND DECISION OF THE OFFICER'S COMPENSATION WAS DOCUMENTED IN THE STANDARD DOCUMENTATION OF COMPENSATION ADJUSTMENTS MAINTAINED IN PERSONNEL RECORDS. THE HUMAN RESOURCE DIRECTOR MAINTAINED THE OFFICERS' PERSONNEL RECORDS AND WERE UNDER HIS CONTROL AND SECURITY. FORM 990, PART VI, SECTION C, LINE 19 THE ORGANIZATION MADE ITS GOVERNING DOCUMENTS, CONFLICT OF INTEREST POLICY, AND FINANCIAL STATEMENTS AVAILABLE TO THE PUBLIC UPON REQUEST, AND AT THE DISCRETION OF THE BOARD OF DIRECTORS AND MANAGEMENT. FORM 990, PART XI, LINE 9: DISTRIBUTION OF NET ASSETS TO KENTUCKY EASTER SEAL SOCIETY, INC -77,273,988. FORM 990, PART XII, QUESTION 2C THE FINANCE AND AUDIT COMMITTEE WAS RESPONSIBLE FOR THE OVERSIGHT OF THE AUDIT AND SELECTION OF THE INDEPENDENT ACCOUNTANT. THIS PROCESS DID NOT CHANGED FROM THE PRIOR YEAR. FORM 990, PART VI, SECTION A, LINE 1A THE EXECUTIVE COMMITTEE OF THE BOARD OF DIRECTORS, LED BY THE BOARD CHAIRPERSON, HAD AUTHORITY TO ACT ON BEHALF OF THE BOARD OF DIRECTORS ON ALL MATTERS WHICH CANNOT BE DELAYED UNTIL THE NEXT REGULARLY SCHEDULED BOARD MEETING, EXCLUDING THE POWER TO AMEND ARTICLES OF INCORPORATION AND BYLAWS. ALL SUCH ACTIONS ARE THEN REPORTED TO THE BOARD OF DIRECTORS AT THE NEXT MEETING. FORM 990 THE GROUP RETURN DID NOT HAVE ANY ORGANIZATIONS INCLUDED FOR THIS FISCAL YEAR BECAUSE ALL THE AFFILIATES HAVE BEEN DISOLVED AND/OR SOLD IN CURRENT AND PRIOR TAX YEARS. CARDINAL HILL REHABILITATION HOSPITAL (CHRH) WAS THE LAST ORGANIZATION IN THE GROUP AND WAS LIQUIDATED AS OF 04/30/2015. CHRH HAS ALREADY FILED A FINAL SHORT YEAR TAX RETURN. KENTUCKY EASTER SEAL SOCIETY INC 2050 VERSAILLES ROAD LEXINGTON KY 40504 610444712 EXCELLENCE IN PHYSICAL REHABILITATION - GIVING HOPE AND ENHANCING OUTCOMES KY 501(C)(3) LINE 7 N/A 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1 0 KENTUCKY EASTER SEAL SOCIETY INC R 77273988 NET BOOK VALUE