2014-11-11T14:00:49-06:00 2013-12-31 CROWE HORWATH LLP 9600 BROWNSBORO ROAD SUITE 400 LOUISVILLE KY 402411122 990 2013-01-01 611028725 NORTON HEALTHCARE INC NORT 5026298249 224 E BROADWAY 5TH FLOOR LOUISVILLE KY 40202 MICHAEL W GOUGH TREASURER 2014-11-11 true Rachel Spurlock P00520729 5023263996 2013 2015-11-30 17:44:51Z STEPHEN A WILLIAMS 4967 US Highway 42 Suite 100 LOUISVILLE KY 40222 592928650 false X WWW.NORTONHEALTHCARE.COM X 1983 KY NORTON HEALTHCARE'S PURPOSE IS TO PROVIDE QUALITY HEALTH CARE TO ALL THOSE WE SERVE, IN A MANNER THAT RESPONDS TO THE NEEDS OF OUR COMMUNITIES AND HONORS OUR FAITH HERITAGE. 21 19 1913 7 0 0 970147 862509 163066375 161469775 14573651 41495121 1623084 2399590 180233257 206226995 1839274 2443621 0 0 113423699 125463544 0 0 0 118837763 123463377 234100736 251370542 -53867479 -45143547 941573437 1131948403 1127687311 1365269544 -186113874 -233321141 X NORTON HEALTHCARE'S PURPOSE IS TO PROVIDE QUALITY HEALTH CARE TO ALL THOSE WE SERVE, IN A MANNER THAT RESPONDS TO THE NEEDS OF OUR COMMUNITIES AND HONORS OUR FAITH HERITAGE. false false 205529634 2443621 163451483 NORTON HEALTHCARE, INC. (NHI) IS A NOT-FOR-PROFIT CORPORATION BASED IN LOUISVILLE, KY. IN 2013, NHI, THROUGH ITS AFFILIATE, NORTON HOSPITALS, INC., HAD A TOTAL OF 1,837 LICENSED BEDS: NORTON HOSPITAL - 640 BEDS; KOSAIR CHILDREN'S HOSPITAL - 265 BEDS; NORTON AUDUBON HOSPITAL - 432 BEDS; NORTON SUBURBAN HOSPITAL - 373 BEDS; AND NORTON BROWNSBORO HOSPITAL - 127 BEDS. THESE FIVE HOSPITALS OPERATE 24 HOURS A DAY, SEVEN DAYS A WEEK. NHI, THROUGH ITS AFFILIATE, COMMUNITY MEDICAL ASSOCIATES, INC. HAD MORE THAN 100 PHYSICIAN PRACTICE LOCATIONS AND 12 IMMEDIATE CARE CENTERS OPERATING IN SEVENTEEN COUNTIES IN KENTUCKY AND FIVE COUNTIES IN SOUTHERN INDIANA. (CONTINUED IN SCHEDULE O) 205529634 true true false true false false false false false true true false false true true false true false false true false false false false false false true true true true false true false false false false false false true true false false false false false true true true false false true X 519 2 true 1913 true false false false false false false false false false false X 21 19 true false false false false false false true true false false true true true true true true true true false X HELENA SCHULZ 5026298263 224 E BROADWAY 5TH FLOOR LOUISVILLE KY 402022025 STEPHEN A WILLIAMS CEO/Trustee 30.00 20.00 X X 2426731 0 213713 CAROLYN GATZ Chair Emeritus 1.00 2.50 X 1500 0 0 CRAIG D GRANT Trustee 1.00 2.50 X 1500 0 0 DONALD H ROBINSON Trustee (partial year) 3.00 2.50 X 0 0 0 EDIE NIXON Trustee 2.00 2.50 X 1500 0 0 ERWIN ROBERTS Trustee 1.00 2.50 X 1500 0 0 G H NIXON Chair Emeritus 1.00 2.50 X 0 0 0 G HUNT ROUSAVALL Trustee (partial year) 3.00 3.50 X 1500 0 0 GAIL LYTTLE Trustee 1.00 2.50 X 0 0 0 GARY L STEWART Trustee 2.00 3.50 X 1500 0 0 GREGORY E MAYES Trustee 5.00 2.50 X 1500 0 0 JAMES L SUBLETT MD Trustee 1.00 2.50 X 1500 0 0 JOSEPH J MCGOWAN EDD Trustee 1.00 2.50 X 1500 0 0 JOSEPH PARADIS III Trustee 4.00 2.50 X 0 0 0 KEVIN J HABLE Trustee 1.00 2.50 X 0 0 0 LOUIS S HEUSER MD Trustee 1.00 2.50 X 1500 0 0 MARIA GERWING HAMPTON Chair 11.00 2.50 X 1500 0 0 MARIA L BOUVETTE Trustee 1.00 2.50 X 1500 0 0 MARTHA K HEYBURN MD Trustee 3.00 2.50 X 1500 0 0 MITCH NICHOLS Trustee 1.00 2.50 X 0 0 0 R K GUILLAUME Vice Chair 4.00 2.50 X 1500 0 0 REV WILLIAM J SCHULTZ Trustee (partial year) 3.00 2.50 X 1500 0 0 RICHARD R IVEY Trustee 1.00 2.50 X 1500 0 0 RICHARD S WOLF MD Honorary Chair Emeritus 1.00 3.50 X 1500 0 0 ROBERT R GOODIN MD Chair Emeritus 1.00 2.50 X 1500 0 0 RONALD LEHOCKY MD Trustee 3.00 2.50 X 0 0 0 WENDELL P WRIGHT Trustee 1.00 2.50 X 1500 0 0 MICHAEL W GOUGH Sys Sr VP CFO/Treasurer 30.00 20.00 X 1050457 0 484459 ROBERT B AZAR Sys VP Chief Legal Officer/Secretary 30.00 20.00 X 536159 0 95391 RUSSELL F COX President and COO 30.00 20.00 X 1287478 0 635804 CHARLES BOHN SYS VP Chief HR Officer 50.00 0 X 528298 0 100444 DOUGLAS WINKELHAKE Division President Adult Services 50.00 0 X 694166 0 146251 JAMES FRAZIER SYS VP Medical Affairs 50.00 0 X 468728 0 96926 KENNETH WILSON SYS VP Clinical Effectiveness 50.00 0 X 496228 0 92626 MARY LYNN MEYER Sys VP and CDO 30.00 20.00 X 185526 311170 96335 MICHAEL ESPOSITO SYS VP Business Development 50.00 1.00 X 418771 0 91496 SANDRA BROOKS VP Research & Prevention 50.00 0 X 536630 0 98183 SCOTT WATKINS Division VP COO 50.00 0 X 502363 0 107795 STEVE HEILMAN Sys VP CMIO 50.00 0 X 506610 0 129657 STEVE HESTER Sys Sr VP, CMO 50.00 0 X 773906 0 283560 STEVE READY Sys VP CIO 50.00 0 X 485350 0 84421 TRACY WILLIAMS Sys Sr VP, CNO 50.00 0 X 438296 0 85648 JIM M MEYERS Sys VP Revenue Cycle 50.00 0 X 334747 0 76085 MARY CORBETT SYS VP CHIEF GOV'T RELATIONS OFFICER 50.00 0 X 335801 0 68272 MARY JO BEAN SYS VP Planning & Bus Analysis 50.00 0 X 348136 0 67143 MAUREEN CAPALBO Sys VP/CNIO 50.00 0 X 379621 0 67079 WILLIAM RITCHIE Sys VP Outpatient Services/ICC 50.00 1.00 X 339592 0 86794 KAREN BOLIN Former VP Women's Services 0.00 0 X 206908 0 33042 KIMBERLY THARP-BARRIE Former VP Institute of Nursing 50.00 0 X 325451 0 71670 RICHARD CARRICO Former VP & Associate CFO 0 X 126307 0 -10791 13760762 311170 3302004 189 true true false EPIC SYSTEMS CORPORATION PO BOX 88314 MILWAUKEE WI 532880314 SOFTWARE AND SERVICES 11677994 THE CSI COMPANIES INC PO BOX 890841 CHARLOTTE NC 282890841 PROFESSIONAL SERVICES 8308159 PARTNER PROFESSIONAL STAFFING 4605 GALBRAIGH RD STE 200 CINCINNATI OH 45236 PROFESSIONAL SERVICES 5747800 FIRSTSOURCE SOLUTIONS USA LLC 6455 RELIABLE PKWY CHICAGO IL 60686 PROFESSIONAL SERVICES 4799605 RIGHT PLACE MEDIA LLC 437 LEWIS HARGETT CIR STE 130 LEXINGTON KY 40503 PROFESSIONAL SERVICES 2621617 95 862509 862509 CLINICAL RESEARCH TRIALS 900099 2987787 2987787 MANAGEMENT FEES 900099 157859854 157859854 INSURANCE ALLOCATION 900099 565403 565403 EDUCATION PROGRAMS 900099 56731 56731 0 0 0 0 0 161469775 9606255 9606255 184733 184733 0 284175 284175 0 284175 284175 418404988 800 384082853 2618802 34322135 -2618002 31704133 31704133 0 0 0 CREDIT CARD REBATE 900099 1564036 1564036 EMPLOYEE EMERGENCY FUND 900099 176949 176949 0 374430 240723 0 133707 2115415 206226995 163451483 0 41913003 X 2223621 2223621 220000 220000 0 0 11338240 6670595 4667645 159279 146710 12569 90644174 79485501 11158673 4071882 3710328 361554 11095642 10186872 908770 8154327 7084315 1070012 0 4282535 3768631 513904 663660 265464 398196 221250 194700 26550 0 1742991 1742991 54737230 48128154 6609076 0 0 3574586 3204827 369759 0 0 6128809 4834892 1293916 1255121 1016290 238831 0 0 27279862 27279862 0 20317375 34382 20282993 0 EQUIPMENT RENTAL & REPAIR 31443545 29171408 2272137 RECRUITMENT 617222 537129 80092 DEBT EXTINGUISHMENT 3804215 3804215 INTEREST ALLOCATION -33820353 -33820353 1215329 841599 373731 0 251370542 205529634 45840909 0 0 -4873834 -4200823 111858689 199639918 6164390 7529306 0 0 3528 0 1732586 1083969 19172013 19481031 369669860 282092295 89679353 87577565 540237484 609031310 117879552 163176778 0 0 59719676 48629349 941573437 1131948403 169946781 178456423 2676479 2558022 734744899 886242756 0 0 220319152 298012343 1127687311 1365269544 X -186503895 -233727257 390021 406116 -186113874 -233321141 941573437 1131948403 X -45143547 17537777 -19601497 X X false true X true true true X X X false false false NORTON HOSPITALS INC 610703799 3 true true true 1284167637 COMMUNITY MEDICAL ASSOCIATES INC 611276316 9 true true true 273468253 NORTON HEALTHCARE FOUNDATION INC 310914919 7 true true true 1695015 THE CHILDREN'S HOSPITAL FND INC 616027530 7 true true true 4614116 4 1563945021 RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED false true false false false false true 6935 false true 221250 228185 false Schedule C, Part II-B, Line 1, Description of the activities reported on Lines 1a through 1i PART II-B, LINE 1(I), OTHER LOBBYING ACTIVITIES: PAYMENTS MADE TO THE FOLLOWING ENTITIES FOR GOVERNMENT AFFAIRS REPRESENTATION TO FOCUS ON GOALS AND PRIORITIES TO ADVOCATE, EDUCATE AND PROMOTE THE INTEREST OF NORTON HEALTHCARE, INC. AND REGISTERED AS APPROPRIATE WITH THE LEGISLATIVE AND/OR EXECUTIVE BRANCH ETHICS COMMISSION AS AGENTS/LOBBYISTS: GOVERNMENT STRATEGIES TOTALING $125,000, ROTUNDA GROUP, LLC TOTALING $96,250. PART II-B, LINE 1(G) AND (H): EMPLOYEES OF NORTON HEALTHCARE, INC. ARE ENGAGED IN LOBBYING HEALTH POLICY ISSUES AT THE STATE LEVEL TO LOBBY THE EXECUTIVE AND LEGISLATIVE BRANCHES OF KENTUCKY'S GOVERNMENT. NORTON HEATLHCARE, INC. IS NOT REGISTERED TO LOBBY AT THE FEDERAL LEVEL. LOBBYING COMPENSATION PAID AS REPORTED TO THE KENTUCKY LEGISLATIVE ETHICS COMMITTEE IS $6,935. 2125807 2125807 49625273 35635952 13989321 0 258082092 245760927 12321165 59836689 695417 59141272 87577565 0 0 ALTERNATIVE INVESTMENTS MASTER TRUST UNITS 129348619 F REAL ESTATE MASTER TRUST UNITS 33828159 F 163176778 0 PAYABLE TO AFFILIATES 135036872 SELF INSURANCE TRUST 118104536 OTHER LIABILITIES 35764636 INTEREST RATE SWAP LIABILITY 6396829 OTHER INSURANCE 2259470 CAPITAL LEASE 450000 298012343 X Schedule D, Part X, Line 2, FIN 48 (ASC 740) footnote NORTON HEALTHCARE, INC. AND AFFILIATES (COMMUNITY MEDICAL ASSOCIATES, INC., NORTON ENTERPRISES, INC., NORTON HEALTHCARE FOUNDATION, INC., NORTON HOSPITALS, INC., NORTON PROPERTIES, INC., AND THE CHILDREN'S HOSPITAL FOUNDATION, INC.) COMPLETED AN ANALYSIS OF ITS TAX POSITIONS AT DECEMBER 31, 2013 AND 2012, AND DETERMINED THAT NO UNCERTAIN TAX PROVISIONS WERE REQUIRED TO BE RECOGNIZED UNDER ACCOUNTING STANDARDS CODIFICATION 740, INCOME TAXES, IN THE COMBINED FINANCIAL STATEMENTS. CENTRAL AMERICA AND THE CARIBBEAN 0 0 INVESTMENTS 152354000 0 0 152354000 true false true false false false Schedule F, Part I, Line 3, Method to account for expenditures on org.'s financial statements CENTRAL AMERICA AND THE CARIBBEAN: ACCRUAL Schedule F, Part I, Line 3, Method to account for expenditures on org.'s financial statements CENTRAL AMERICA AND THE CARIBBEAN: ACCRUAL true BELLARMINE UNIVERSITY 2001 NEWBURG ROAD LOUISVILLE KY 40205 610482955 501(C)(3) 615000 GENERAL SUPPORT OF THE UNIVERSITY'S PROGRAMS AND SUPPORT UNIVERSITY'S NURSING PROGRAM AND TO ENDOWMENT OF CHAIR OF DOCTOR OF PHYSICAL THERAPY/SPORTS MEDICINE PROGRAM UNIVERSITY OF LOUISVILLE CONTROLLERS OFFICE UNIVERSITY OF LOUISVILLE LOUISVILLE KY 40292 611014882 501(C)(3) 200000 PROGRAM SUPPORT FOR PEDIATRIC SURGERY RESEARCH UNIVERSITY OF KENTUCKY PHARMACY 789 S LIMESTONE ST STE 114 LEXINGTON KY 40536 616001218 501(C)(3) 200000 PROGRAM SUPPORT FOR PHARMACY EXTERNSHIPS JEFFERSON CO PUBLIC SCHOOLS 3332 NEWBURG RD LOUISVILLE KY 40218 611021128 GOV'T ORGANIZATION 150000 PROGRAM SUPPORT TO ENSURE THAT TRAINERS AND SPORTS MEDICINE EXPERTS ARE AVAILABLE IN THE COUNTY JCTC FOUNDATION INC 109 EAST BROADWAY LOUISVILLE KY 40202 237035648 501(C)(3) 138000 HELP ESTABLISH AN ASSOCIATES DEGREE IN CLINICAL LAB TECHNICIAN PROGRAM SCOLIOSIS RESEARCH SOCIETY 555 E WELLS SUITE 1100 MILWAUKEE WI 53202 237181863 501(C)(3) 125000 GENERAL SUPPORT RESEARCH STUDY OF SPINAL DEFORMITY SURGERY KENTUCKY CANCER FOUNDATION P O BOX 21741 LEXINGTON KY 40522 201510713 501(C)(3) 100000 GENERAL SUPPORT COMMONWEALTH KY STATEWIDE COLON CANCER SCREENINGS METRO UNITED WAY INC DEPT 52860 PO BOX 950148 LOUISVILLE KY 40295 610444680 501(C)(3) 53000 GENERAL PROGRAM SUPPORT HABITAT FOR HUMANITY METRO LOU 2777 S FLOYD ST LOUISVILLE KY 40209 581735528 501(C)(3) 45000 GENERAL SUPPORT OF COSTS TO BUILD A HABITAT HOME 21ST CENTURY PARKS INC 471 W MAIN ST LOUISVILLE KY 40202 201780317 501(C)(3) 30000 GENERAL SUPPORT PARKS INITIATIVE AND HEALTHY OUTDOOR LIVING LEADERSHIP LOUISVILLE CENTER 732 W MAIN ST LOUISVILLE KY 40202 310958491 501(C)(3) 30000 GENERAL SUPPORT OF LEADERSHIP DEVELOPMENT FUND FOR THE ARTS 623 W MAIN ST LOUISVILLE KY 40202 610479626 501(C)(3) 30000 GENERAL PROGRAM SUPPORT PREGNANCY HELPLINE INC OF LOUISVILLE 515 WEST OAK ST LOUISVILLE KY 40203 611055060 501(C)(3) 25000 GENERAL SUPPORT OF SERVICES FOR EXPECTANT MOTHERS A WOMEN'S CHOICE RESOURCE CENTER 101 WEST MARKET LOUISVILLE KY 40202 611142823 501(C)(3) 25000 GENERAL SUPPORT OF SERVICES FOR EXPECTANT MOTHERS DREPUNG GOMANG INSTITUTE 411 N HUBBARDS LN LOUISVILLE KY 40207 611399694 501(C)(3) 25000 GENERAL SUPPORT FOR THE 2013 VISIT FROM HIS HOLINESS THE DALAI LAMA KENTUCKY PHYSICIANS HEALTH FOUNDATION 9000 WESSEX PL STE 305 LOUISVILLE KY 40222 611242062 501(C)(3) 21500 GENERAL SUPORT OF INTERVENTIION, THERAPY, ETC FOR IMPARIED PHYSICIANS THE CENTER FOR COURAGEOUS KIDS 1501 BURNLEY RD SCOTTSVILLE KY 42164 201789905 501(C)(3) 20000 GENERAL SUPPORT OF CAMP FOR PEDIATRIC PATIENTS WHAS CRUSADE FOR CHILDREN INC 520 W CHESTNUT ST LOUISVILLE KY 40202 237075524 501(C)(3) 20000 GENERAL PROGRAM SUPPORT LOUISVILLE AREA CHAMBER OF COMMERCE 614 W MAIN ST LOUISVILLE KY 40202 610434089 501(C)(6) 20000 GENERAL PROGRAM SUPPORT LOUISVILLE METRO PARKS FOUNDATION 611 WEST JEFFERSON ST LOUISVILLE KY 40202 204372292 501(C)(3) 15000 GENERAL SUPPORT FOR ANNUAL HEALTH & FITNESS EVENT KY CHAMBER OF COMMERCE 464 CHENAULT AVE FRANKFORT KY 40601 610405718 501(C)(6) 15000 GENERAL PROGRAM SUPPORT YMCA OF GREATER LOUISVILLE 545 S 2ND ST LOUISVILLE KY 40202 610444843 501(C)(3) 15000 GENERAL SUPPORT FOR SAFE PLACE AND FOR PHYSICAL FITNESS/THERAPY FOR CANCER PATIENTS JUNIOR ACHIEVEMENT 1401 W MUHAMMAD ALI BLVD LOUISVILLE KY 40203 610476694 501(C)(3) 14800 GENERAL SUPPORT OF YOUTH LEADERSHIP DEVELOPMENT AMERICAN CANCER SOCIETY 701 W MUHAMMAD ALI BLVD LOUISVILLE KY 40202 237040934 501(C)(3) 14500 GENERAL SUPPORT COLON CANCER PREVENTION PROJECT PO BOX 4039 LOUISVILLE KY 40204 201510713 501(C)(3) 13500 GENERAL SUPPORT OF COLON CANCER PREVENTION AND OUTREACH BRAIN INJURY ASSOCIATION OF KY 7431 NEW LAGRANGE RD STE 100 LOUISVILLE KY 40222 611128496 501(C)(3) 11500 GENERAL SUPPORT EDUCATION FOR BRAIN INJURIES AND DISEASE KENTUCKY COUNTRY DAY SCHOOL 4100 SPRINGDALE RD LOUISVILLE KY 40241 610731998 501(C)(3) 10821 GENERAL PROGRAM SUPPORT INDIAN COMMUNITY OF KENTUCKY 9709 WHITE BLOSSOM BLVD LOUISVILLE KY 40241 000769349 501(C)(3) 10000 GENERAL SUPPORT CULTURAL AWARENESS AMERICAN DIABETES ASSOCIATION 161 ST MATTHEWS AVE 3 LOUISVILLE KY 40207 131623888 501(C)(3) 10000 GENERAL SUPPORT OF DIABETES PREVENTION AND OUTREACH FOR AFRICAN AMERICANS CYSTIC FIBROSIS FOUNDATION 1230 S HURSTBOURNE PKWY STE 255 LOUISVILLE KY 40222 131930701 501(C)(3) 10000 GENERAL SUPPORT FOR CYSTIC FIBROSIS RESEARCH AND OUTREACH PENTECOSTAL FIRE CONF AMERICA 1710 CAMPBELLSVILLE RD HODGENVILLE KY 42748 261301145 501(C)(3) 10000 GENERAL SUPPORT OF PROGRAM SUPPORT FOR CHRISTIAN LIVING TOOLS FOR ADOLESCENTS RONALD MCDONALD HOUSE 550 S 1ST ST LOUISVILLE KY 40202 311053467 501(C)(3) 10000 GENERAL SUPPORT TO HELP HOUSE FAMILIES AND PATIENTS WITH LONG-TERM TREATMENTS/HOSPITAL STAY MARYHURST 1015 DORSEY LANE LOUISVILLE KY 40223 311542209 501(C)(3) 10000 GENERAL SUPPORT LEADERSHIP SOUTHERN INDIANA 8204 HWY 311 SELLERSBURG IN 47172 311644080 501(C)(3) 10000 GENERAL SUPPORT OF LEADERSHIP DEVELOPMENT AMERICAN LUNG ASSOCIATION OF THE MIDLAND STATES 4100 CHURCHMAN AVE LOUISVILLE KY 40215 314379531 501(C)(3) 10000 GENERAL SUPPORT FOR LUNG HEALTH OUTREACH KENTUCKIANA HEALTH COLLABORATIVE 1930 BISHOP LN STE 1023 LOUISVILLE KY 40218 450700087 501(C)(3) 10000 GENERAL SUPPORT TO COORDINATE ACTION-ORIENTED COMMUNITY EFFORTS FOR HEALTH AND WELL-BEING EFFORTS TO MOBILIZE THE COMMUNITY TO IMPROVE HEALTH AND WELL-BEING. NATIONAL MULTIPLE SCLEROSIS SOCIETY 1201 STORY AVE STE 200 LOUISVILLE KY 40208 610702202 501(C)(3) 10000 GENERAL SUPPORT OF MULTIPLE SCLEROSIS RESEARCH HOSPARUS 3532 EPHRAIM MCDOWELL DR LOUISVILLE KY 40205 610921718 501(C)(3) 10000 GENERAL SUPPORT PEDIATRIC BEREAVEMENT PROGRAM SHIVELY AREA MINISTRIES 4415 DIXIE HWY LOUISVILLE KY 40216 611134579 501(C)(3) 10000 GENERAL SUPPORT OF EMERGENCY ASSISTANCE FOR RESIDENTS OF SHIVELY AREA MARCH OF DIMES P O BOX 932852 ATLANTA GA 31193 131846366 501(C)(3) 8500 GENERAL SUPPORT OF PRE-AND-POSTNATAL EDUCATION FOR FAMILIES WITH PREMATURE BABIES THE HEALING PLACE 1020 W MARKET ST LOUISVILLE KY 40202 611164775 501(C)(3) 8500 GENERAL SUPPORT OF INDIVIDUALS IN THERAPY FOR ADDICTION RECOVERY FAMILY SCHOLAR HOUSE 403 REG SMITH CIRCLE LOUISVILLE KY 40208 611285124 501(C)(3) 8000 GENERAL SUPPORT OF SINGLE PARENTS SEEKING COLLEGE EDUCATION CORE COMMITTEE INC P O BOX 1621 ELIZABETHTOWN KY 42702 208105293 501(C)(3) 7500 GENERAL SUPPORT OF EFFORTS AT FORT KNOX BASE REALIGNMENT EPILEPSY FOUNDATION KENTUCKIANA 982 EASTERN PKWY LOUISVILLE KY 40217 611314540 501(C)(3) 7500 GENERAL SUPPORT OF EPILEPSY EDUCATION AND OUTREACH SOUTHEAST CHRISTIAN CHURCH 920 BLANKENBAKER PKWY LOUISVILLE KY 40243 610850307 501(C)(3) 7000 GENERAL PROGRAM SUPPORT LOUISVILLE YOUTH TRAINING CENTER 2040 METAL LN LOUISVILLE KY 40206 611380344 501(C)(3) 7000 GENERAL SUPPORT OF YOUTH FITNESS INITIATIVES LEADERSHIP KENTUCKY FOUNDATION 464 CHENAULT RD FRANKFORT KY 40601 311096215 501(C)(3) 6000 GENERAL SUPPORT OF LEADERSHIP DEVELOPMENT HOSPITAL HOSPITALITY HOUSE 120 W BROADWAY LOUISVILLE KY 40202 611256969 501(C)(3) 6000 GENERAL SUPPORT TO HELP HOUSE FAMILIES AND PATIENTS WITH LONG-TERM TREATMENTS/HOSPITAL STAY CROHN'S & COLITIS FDTN OF AMERICA P O BOX 573 PROSPECT KY 40059 136193105 501(C)(3) 5000 GENERAL SUPPORT FOR CHRON'S AND COLITIS PATIENT EDUCATION/SUPPORT PRP ALUMNI ASSOCIATION PO BOX 58051 LOUISVILLE KY 40268 320087730 501(C)(3) 5000 GENERAL SUPPORT FOR SCHOLARSHIPS AT PLEASURE RIDGE PARK HIGH SCHOOL ARTHRITIS FOUNDATION KY CHAPTER 2908 BROWNSBORO RD STE 117 LOUISVILLE KY 40206 610492349 501(C)(3) 5000 GENERAL SUPPORT OF THE ARTHRITIS KIDS BACKPACK PROGRAM CEREBRAL PALSY KIDS CENTER 982 EASTERN PKWY LOUISVILLE KY 40217 610492378 501(C)(3) 5000 GENERAL SUPPORT FOR SERVICES FOR CHILDREN WITH CEREBRAL PALSY CHRISTIAN ACADEMY OF LOUISVILLE 700 S ENGLISH STATION RD LOUISVILLE KY 40245 610907309 501(C)(3) 5000 GENERAL PROGRAM SUPPORT KENTUCKY PEDIATRIC SOCIETY 420 CAPITAL AVE LOUISVILLE KY 40601 611125554 501(C)(3) 5000 GENERAL SUPPORT FOR CONTINUING MEDICAL EDUCATION FOR KY PEDIATRIC PHYSICIANS FRIEND FOR LIFE 4007 KRESGE WAY LOUISVILLE KY 40207 611139410 501(C)(3) 5000 GENERAL SUPPORT CANCER SUPPORT NETWORK CATHEDRAL HERITAGE FOUNDATION 415 W MUHAMMED ALI BLVD STE 101 LOUISVILLE KY 40202 611149619 501(C)(3) 5000 GENERAL SUPPORT FOR INTERRELIGOUS EDUCATION CLOUT 1112 S 4TH ST LOUISVILLE KY 40203 611202173 501(C)(3) 5000 GENERAL SUPPORT INTERFAITH RELATIONS AND SOCIAL JUSTICE SUSAN G KOMEN FOR THE CURE 2301 HURSTBOURNE VILLAGE DR STE 700 LOUISVILLE KY 40299 752855046 501(C)(3) 5000 GENERAL PROGRAM SUPPORT THE ALS ASSOCIATION KY CHAPTER 2807 AMSTERDAM RD VILLA HILLS KY 41017 943124729 501(C)(3) 5000 GENERAL SUPPORT ALS EDUCATION AND OUTREACH 57 2 UNDERGRADUATE SCHOLARSHIPS FOR STUDENTS PURSUING EDUCATION FOR A CAREER IN THE HEALTHCARE FIELD 160 220000 Schedule I, Part I, Line 2, Procedures for monitoring use of grant funds ALL GRANT APPLICANTS ARE REQUIRED TO SUBMIT A GRANT APPLICATION TO THE MANAGER OF STEWARDSHIP. THE GRANT IS REVIEWED AND APPROVED BY NORTON HEALTHCARE MANAGEMENT. ALL GRANT REQUESTS GREATER THAN $250,000 REQUIRE THE APPROVAL OF THE NORTON HEALTHCARE BOARD OF DIRECTORS. SELECTION CRITERIA INCLUDES APPROPRIATENESS OF THE REQUEST, LEVEL OF NEED AND WHETHER THE REQUEST IS IN ALIGNMENT WITH THE ORGANIZATION'S GOALS AND OBJECTIVES. UPON APPROVAL, THE GRANT IS ENTERED INTO THE GRANT DATABASE AND THE FINANCIAL SYSTEM. THE ORGANIZATION REQUIRES THAT A PROGRESS REPORT BE SUBMITTED MIDWAY THROUGH THE PROJECT, AND A FINAL REPORT IS REQUIRED AT THE END OF THE PROJECT FOR WHICH FUNDING IS RECEIVED. GRANT REPORT DEADLINES AND GUIDELINES THAT EXPLAIN WHAT TO INCLUDE IN REPORTS WILL BE SENT TO THE PROJECT DIRECTOR/GRANTEE UPON GRANT AWARD NOTIFICATION. GRANT REPORTS MUST INCLUDE AN ACCOUNTING OF FUNDS EXPENDED AND ENCUMBERED, INCLUDING SUPPORTING DOCUMENTATION. GRANT RECIPIENTS WHO FAIL TO SUBMIT REPORTS OR ACCOUNT FOR THE EXPENSE OF GRANT FUNDS WILL NOT BE ALLOWED TO APPLY FOR FUTURE FUNDING UNTIL THE REPORTING REQUIREMENTS ARE MET. GRANTS WILL BE AWARDED FROM THE BOARD-DESIGNED FUND TO ADVANCE INITIATIVES THAT ARE ALIGNED WITH OR A DIRECT PART OF NORTON HEALTHCARE STRATEGIC PLAN. AWARDS ARE GRANTED FOR EDUCATION, RESEARCH, WORKFORCE DEVELOPMENT, COMMUNITY HEALTH AND/OR TECHNOLOGY OR EQUIPMENT OF SPECIAL NATURE. CASH ASSISTANCE IS AWARDED THROUGH THE COMMUNITY INITIATIVE COMMITTEE AND EXPENSED IN THE YEAR THAT THE CASH ASSISTANCE IS AWARDED. A REQUEST PROCESS IS IN PLACE TO ENSURE THAT THE REQUEST IS IN ALIGNMENT WITH THE NORTON HEALTHCARE VALUES AND STRATEGIC PLAN. Schedule I, Part II, Column H, Purpose of grant or assistance BELLARMINE UNIVERSITY, 61-0482955:GENERAL SUPPORT OF THE UNIVERSITY'S PROGRAMS AND SUPPORT UNIVERSITY'S NURSING PROGRAM AND TO ENDOWMENT OF CHAIR OF DOCTOR OF PHYSICAL THERAPY/SPORTS MEDICINE PROGRAM;JEFFERSON CO PUBLIC SCHOOLS, 61-1021128:PROGRAM SUPPORT TO ENSURE THAT TRAINERS AND SPORTS MEDICINE EXPERTS ARE AVAILABLE IN THE COUNTY;YMCA OF GREATER LOUISVILLE, 61-0444843:GENERAL SUPPORT FOR SAFE PLACE AND FOR PHYSICAL FITNESS/THERAPY FOR CANCER PATIENTS;RONALD MCDONALD HOUSE, 31-1053467:GENERAL SUPPORT TO HELP HOUSE FAMILIES AND PATIENTS WITH LONG-TERM TREATMENTS/HOSPITAL STAY;KENTUCKIANA HEALTH COLLABORATIVE, 45-0700087:GENERAL SUPPORT TO COORDINATE ACTION-ORIENTED COMMUNITY EFFORTS FOR HEALTH AND WELL-BEING EFFORTS TO MOBILIZE THE COMMUNITY TO IMPROVE HEALTH AND WELL-BEING.;MARCH OF DIMES, 13-1846366:GENERAL SUPPORT OF PRE-AND-POSTNATAL EDUCATION FOR FAMILIES WITH PREMATURE BABIES;HOSPITAL HOSPITALITY HOUSE, 61-1256969:GENERAL SUPPORT TO HELP HOUSE FAMILIES AND PATIENTS WITH LONG-TERM TREATMENTS/HOSPITAL STAY; X X true true X X X X X true true false false false false false true false STEPHEN A WILLIAMS CEO/TRUSTEE 957232 0 594080 0 875419 0 193323 0 20390 0 2640445 0 127109 0 ROBERT B AZAR SYS VP CHIEF LEGAL OFFICER/SECRETARY 369824 0 128247 0 38089 0 86464 0 8927 0 631551 0 0 0 RUSSELL F COX PRESIDENT AND COO 736492 0 301538 0 249448 0 610658 0 25147 0 1923283 0 99540 0 MICHAEL W GOUGH SYS SR VP CFO/TREASURER 586472 0 254035 0 209950 0 459560 0 24898 0 1534916 0 83860 0 KAREN BOLIN FORMER VP WOMEN'S SERVICES 0 0 0 0 206908 0 33042 0 0 0 239950 0 188273 0 RICHARD CARRICO FORMER VP & ASSOCIATE CFO 0 0 0 0 126307 0 -10791 0 0 0 115517 0 125836 0 KIMBERLY THARP-BARRIE FORMER VP INSTITUTE OF NURSING 223454 0 60522 0 41474 0 50860 0 20810 0 397121 0 25644 0 CHARLES BOHN SYS VP CHIEF HR OFFICER 320083 0 121986 0 86229 0 78841 0 21603 0 628742 0 42280 0 SANDRA BROOKS VP RESEARCH & PREVENTION 317718 0 80663 0 138249 0 75233 0 22950 0 634813 0 100669 0 MICHAEL ESPOSITO SYS VP BUSINESS DEVELOPMENT 278615 0 71406 0 68750 0 70234 0 21262 0 510267 0 33240 0 JAMES FRAZIER SYS VP MEDICAL AFFAIRS 345589 0 83975 0 39163 0 72073 0 24853 0 565654 0 9900 0 STEVE HEILMAN SYS VP CMIO 342087 0 93962 0 70561 0 105530 0 24127 0 636267 0 36492 0 STEVE HESTER SYS SR VP, CMO 503704 0 169474 0 100728 0 259590 0 23970 0 1057467 0 63000 0 MARY LYNN MEYER SYS VP AND CDO 185526 128678 0 123648 0 58845 0 79991 0 16344 185526 407505 0 39200 STEVE READY SYS VP CIO 346490 0 91803 0 47057 0 61191 0 23230 0 569770 0 35700 0 SCOTT WATKINS DIVISION VP COO 341270 0 93452 0 67641 0 83851 0 23943 0 610158 0 33240 0 TRACY WILLIAMS SYS SR VP, CNO 300488 0 98093 0 39716 0 71368 0 14280 0 523944 0 0 0 KENNETH WILSON SYS VP CLINICAL EFFECTIVENESS 311103 0 81704 0 103421 0 74843 0 17784 0 588854 0 34788 0 DOUGLAS WINKELHAKE DIVISION PRESIDENT ADULT SERVICES 463608 0 140837 0 89722 0 121763 0 24488 0 840418 0 47040 0 MARY JO BEAN SYS VP PLANNING & BUS ANALYSIS 250044 0 58909 0 39184 0 59065 0 8078 0 415279 0 26712 0 MAUREEN CAPALBO SYS VP/CNIO 241639 0 72421 0 65560 0 56169 0 10910 0 446699 0 0 0 MARY CORBETT SYS VP CHIEF GOV'T RELATIONS OFFICER 266714 0 18835 0 50253 0 52641 0 15631 0 404073 0 0 0 JIM M MEYERS SYS VP REVENUE CYCLE 230121 0 67080 0 37546 0 52965 0 23121 0 410833 0 0 0 WILLIAM RITCHIE SYS VP OUTPATIENT SERVICES/ICC 207309 0 71329 0 60954 0 69823 0 16971 0 426386 0 26904 0 Schedule J, Part I, Line 1a, Tax indemnification and gross-up payments TAX INDEMNIFICATION AND GROSS-UP PAYMENTS ARE TREATED AS TAXABLE COMPENSATION TO THE INTERESTED PERSONS LISTED BELOW AT TIME OF PAYMENT. PAYMENTS ARE IN ACCORDANCE WITH EXISTING COMPENSATION POLICY. GROSS-UP PAYMENTS SHALL BE MADE ONLY WHEN SPECIFIED IN AN EMPLOYEE'S EMPLOYMENT CONTRACT, OR AS APPROVED IN WRITING BY THE PRESIDENT AND CEO OF NORTON HEALTHCARE, EXECUTIVE VICE PRESIDENT OR CFO. DURING 2013, GROSS-UP PAYMENTS WERE PROCESSED AS OUTLINED IN THE EMPLOYMENT CONTRACT FOR THE CEO. SEE NARRATIVE PROVIDED IN SCHEDULE O, REFERENCING PART VI, LINE 15, WHICH DESCRIBES THE PROCESS FOR DETERMINING COMPENSATION FOR THE CEO, OFFICERS AND KEY EMPLOYEES OF THE ORGANIZATION. ANNUITY - THE ANNUITY REPRESENT ACCULUATED RETIREMENT BENEFITS EARNED RELATED TO A NON-QUALIFIED DEFINED BENEFIT PENSION RESTORATION PLAN IN EFFECT SINCE 1990. CONTRIBUTIONS TO THIS PLAN HAVE BEEN MADE EACH YEAR, BEGINNING IN 2005. THE TOTAL VALUE OF THIS YEAR'S BENEFIT IS $503,879, OF WHICH $225,367 WAS A GROSS-UP PAYMENT TO COVER THE APPLICABLE TAXES AND $278,512 WAS USED TO PURCHASE THE ANNUITY. THE FULL VALUE OF THIS YEAR'S BENEFIT WAS INCLUDED IN 2013 TAXABLE COMPENSATION OF MR. WILLIAMS. DISABILITY COVERAGE (AND ASSOCIATED GROSS-UP) FOR MR. WILLIAMS - DURING 2013 NET DISABILITY COVERAGE PREMIUMS TOTALED $30,921, AND THE ASSOCIATED GROSS-UP OF SUCH PREMIUMS TOTALED $25,095. THUS, THE TOTAL OF THESE AMOUNTS - $56,016 - WAS INCLUDED IN THE TAXABLE COMPENSATION OF MR. WILLIAMS IN 2013. Schedule J, Part I, Line 1a, Discretionary spending account DISCRETIONARY SPENDING ACCOUNTS ARE TREATED AS TAXABLE COMPENSATION. THE ORGANIZATION PROVIDES A DISCRETIONARY SPENDING ACCOUNT FOR ELIGIBLE NORTON HEALTHCARE EXECUTIVES, EFFECTIVE OCTOBER 1, 2007. NORTON HEALTHCARE PROVIDES BENEFITS TO ITS IDENTIFIED EXECUTIVE STAFF TO PROVIDE A TOTAL COMPENSATION PACKAGE THAT IS COMPETITIVE WITH THE MARKET AND WHICH CONFORMS TO THE PHILOSOPHY AND GUIDELINES SET OUT BY THE BOARD OF TRUSTEES, THROUGH THE EXECUTIVE COMPENSATION PHILOSOPHY AND PROGRAMS. THROUGH THE DISCRETIONARY SPENDING ACCOUNT POLICY, EXECUTIVES ARE FREE TO CHOOSE WHATEVER BENEFITS THEY FIND MOST USEFUL OR IMPORTANT TO THEM AND NORTON HEALTHCARE DOES NOT REIMBURSE FOR THE COST OF THOSE BENEFITS, AS THEY ARE PART OF THE DISCRETIONARY SPENDING ACCOUNT. THE INTERESTED PERSONS LISTED BELOW RECEIVED THE BENEFIT OF A DISCRETIONARY SPENDING ACCOUNT IN 2013: STEPHEN A. WILLIAMS -$58,120 RUSSELL F. COX - 59,434 MICHAEL G. GOUGH - 52,208 ROBERT B. AZAR - 17,500 TRACY WILLIAMS - 17,500 STEVE HESTER - 17,500 SCOTT WATKINS - 10,000 MICHAEL ESPOSITO - 10,000 MARY JO BEAN - 10,000 CHARLES BOHN - 17,500 KAREN BOLIN - 8,846 MARY CORBETT -15,000 STEVE READY - 10,000 JAMES FRAZIER - 10,000 STEVE HEILMAN - 10,000 KENNETH WILSON - 10,000 KIMBERLY THARP-BARRIE - 10,000 JIM MEYERS - 10,000 DOUGLAS WINKLEHAKE - 17,500 WILLIAM RITCHIE - 10,000 Schedule J, Part I, Line 4a, Severance or change-of-control payment SEVERANCE PAYMENT WAS RECEIVED DURING 2013 BY FORMER KEY EMPLOYEES: KAREN BOLIN IN THE AMOUNT OF $188,273, OTHER COMPENSATION, INCLUDED IN SCHEDULE J COLUMN B(III). MS. BOLIN CONTINUED TO RECEIVE SEVERANCE PAYMENT THROUGH OCTOBER 30,2013. Schedule J, Part I, Line 4b, Supplemental nonqualified retirement plan THE FOLLOWING INTERESTED PERSONS PARTICIPATED IN OR RECEIVED PAYMENT FROM SUPPLEMENTAL NONQUALIFIED RETIREMENT PLANS AS DESCRIBED IN IRC SECTION 457(F). THE INTERESTED PERSONS BELOW MAY HAVE PARTICIPATED IN ONE OR MORE OF THE FOLLOWING PLANS: THE EXECU-FLEX BENEFIT PLAN, THE EXECU-PLUS BENEFIT PLAN, DEFINED BENEFIT AND DEFINED CONTRIBUTION RESTORATION PLANS, AND THE PHYSICIAN DEFERRED PLAN. THE "PAY CREDIT" OUTLINED BELOW REPRESENTS A REASONABLE ESTIMATE OF THE ANNUAL INCREASE IN ACTUARIAL VALUE OF THE PLANS; AND THEREFORE, REPRESENTS THE ORGANIZATION'S CONTRIBUTION TO THE VALUE OF THE BENEFITS. NAME - PAY CREDIT STEPHEN A. WILLIAMS - $ 134,851 RUSSELL F. COX - 593,016 MICHAEL W. GOUGH - 441,391 ROBERT AZAR - 71,313 MARY LYNN MEYER - 61,430 MARY JO BEAN - 37,704 CHARLES BOHN - 63,541 KAREN BOLIN - 20,460 SANDRA BROOKS - 58,170 MAUREEN CAPALBO - 37,576 MARY CORBETT - 37,298 MICHAEL ESPOSITO - 48,884 JAMES FRAZIER - 56,654 STEVEN HEILMAN - 90,126 STEVEN HESTER - 239,895 JIM MEYERS - 34,419 STEVE READY - 49,812 WILLIAM RICHIE - 36,439 KIMBERLY THARP-BARRIE - 32,310 SCOTT WATKINS - 62,471 TRACY WILLIAMS - 55,875 KENNETH WILSON - 56,216 DOUGLAS WINKELHAKE - 101,360 THE "PAYMENT RECEIVED" OUTLINED BELOW REPRESENTS CASH PAYMENTS THAT THE EMPLOYEE RECEIVED DURING 2013 AND CAN BE COMPRISED OF PRIOR YEARS EMPLOYEE AND EMPLOYER CONTRIBUTIONS. NAME - PAYMENT RECEIVED STEPHEN A. WILLIAMS - $ 232,232 RUSSELL F. COX - 110,669 MICHAEL W. GOUGH - 92,970 ROBERT AZAR - 0 MARY LYNN MEYER - 39,201 MARY JO BEAN - 26,713 CHARLES BOHN - 48,065 KAREN BOLIN - 18,634 SANDRA BROOKS - 136,857 MAUREEN CAPALBO - 51,433 MARY CORBETT - 29,779 MICHAEL ESPOSITO - 36,580 JAMES FRAZIER - 9,900 STEVEN HEILMAN - 49,688 STEVEN HESTER - 76,531 JIM MEYERS - 25,801 STEVE READY - 41,834 WILLIAM RICHIE - 29,616 KIMBERLY THARP-BARRIE - 47,940 SCOTT WATKINS - 38,312 TRACY WILLIAMS - 0 KENNETH WILSON - 67,988 DOUGLAS WINKELHAKE - 53,090 Schedule J, Part I, Line 7, Non-fixed payments IN 2013, NHI HAD IN PLACE A VARIABLE COMPENSATION PLAN FOR EXECUTIVES, ELIGIBILITY UNDER WHICH EXTENDED TO EMPLOYEES HOLDING A FULL-TIME POSITION AS SENIOR OFFICER, OFFICER, SYSTEM DIRECTOR OR OTHER DESIGNATED DIRECTOR LEVEL POSITION. UNDER THE PLAN, A VARIABLE COMPENSATION POOL AMOUNT IS APPROVED BY THE BOARD OF TRUSTEES. EACH PARTICIPANT'S PERFORMANCE IS EVALUATED RELATIVE TO THE GOALS AND OBJECTIVES DOCUMENTED AS PART OF THE PARTICIPANT'S PLAN; AND AN AWARD IS DETERMINED FOR THE PARTICIPANT, BASED ON ACHIEVEMENT OF THE GOALS AND OBJECTIVES, SUBJECT TO THE FUNDING OF THE VARIABLE COMPENSATION POOL. AT THE END OF EACH YEAR, THE COMMITTEE ON EXECUTIVE COMPENSATION AND BENEFITS DETERMINES AN APPROPRIATE AWARD FOR THE NHI'S PRESIDENT & CHIEF EXECUTIVE OFFICER, AND THE PRESIDENT & CHIEF EXECUTIVE OFFICER RECOMMENDS APPROPRIATE AWARDS FOR OTHER SENIOR EXECUTIVES TO THE COMMITTEE ON EXECUTIVE COMPENSATION AND BENEFITS FOR ITS REVIEW AND APPROVAL. A LOUISVILLEJEFFERSON COUNTY METRO GOVERNMENT 320049006 54659LAC8 2006-10-12 315474736 SEE SUPPLEMENTAL INFORMATION false false false B LOUISVILLEJEFFERSON COUNTY METRO GOVERNMENT 320049006 54659LAL8 2011-08-10 75000000 SEE SUPPLEMENTAL INFORMATION false false false C LOUISVILLEJEFFERSON COUNTY METRO GOVERNMENT 320049006 2011-08-24 23775000 SEE SUPPLEMENTAL INFORMATION false false false D LOUISVILLEJEFFERSON COUNTY METRO GOVERNMENT 320049006 2012-10-31 21100000 SEE SUPPLEMENTAL INFORMATION false false false A 1630000 0 330185271 0 958005 0 2885257 0 5900000 183389691 170832224 0 2009 false true true true B 0 0 75000300 0 0 0 953000 2000 0 74045259 41 0 2011 false false true true C 3675000 0 23775000 0 0 0 150000 0 0 0 23625000 0 true false true true D 3150000 0 21100000 0 0 0 171313 0 0 0 20928687 0 true false true true A false true true true true true 0.01790 0.00670 0.02460 false false true B false true true true true true 0.02190 0.00670 0.02860 false false true C 0.00000 0.00000 0.00000 D 0.00000 0.00000 0.00000 A true false false true MORGAN STANLEY 3.2 true false true B false true true false false false true C false true true false false false true D false true false false 0.0 false 0.0 false true A true B true C true D true SCHEDULE K, PART I, COLUMN (F), ISSUER NAME: LOUISVILLE/JEFFERSON COUNTY METRO GOVERNMENT ROW C, TO REFUND A PORTION OF THE COUNTY OF JEFFERSON, KENTUCKY HEALTH SYSTEM REVENUE BONDS, SERIES 1997 (ALLIANT HEALTH SYSTEM, INC.) AND PAY CERTAIN COSTS OF ISSUANCE OF THE BONDS. SCHEDULE K, PART I, COLUMN (F), ISSUER NAME: LOUISVILLE/JEFFERSON COUNTY METRO GOVERNMENT ROW B, TO REIMBURSE THE CORPORATION FOR THE COSTS OF CONSTRUCTING AND EQUIPPING THE NORTON CANCER INSTITUTE DOWNTOWN RADIATION CENTER, CONSTRUCTING AND EQUIPPING A PEDIATRIC AMBULATORY CARE CENTER (KOSAIR CHILDREN'S MEDICAL CENTER - BROWNSBORO) AND RENOVATING, EXPANDING AND EQUIPPING OTHER PATIENT CARE RELATED PROJECTS AND HOSPITAL PROJECTS AND ITS AFFILIATES AND PAY CERTAIN COSTS OF ISSUANCE OF THE BONDS. SCHEDULE K, PART I, COLUMN (F), ISSUER NAME: LOUISVILLE/JEFFERSON COUNTY METRO GOVERNMENT ROW A, TO REFINANCE, IN AN ADVANCE REFUNDING TRANSACTION, A PORTION OF THE OUTSTANDING KENTUCKY ECONOMIC DEVELOPMENT FINANCE AUTHORITY HEALTH SYSTEM REVENUE BONDS, SERIES 2000A, AND SERIES 2000C, TO FINANCE OR REIMBURSE THE CORPORATION FOR THE COSTS OF CONSTRUCTING AND EQUIPPING A NEW HOSPITAL FACILITY TO BE OWNED AND OPERATED BY NORTON HOSPITALS, TO FINANCE OR REIMBURSE THE CORPORATION FOR THE COSTS OF RENOVATION AND EXPANSION OF VARIOUS PATIENT CARE AREAS AND THE ACQUISITIONS OF EQUIPMENT AND TO PAY CERTAIN COSTS OF ISSUANCE. SCHEDULE K, PART I, COLUMN (F), ISSUER NAME: LOUISVILLE/JEFFERSON COUNTY METRO GOVERNMENT ROW D, TO REFUND THE REMAINDER OF THE COUNTY OF JEFFERSON, KENTUCKY HEALTH SYSTEM REVENUE BONDS, SERIES 1997 (ALLIANT HEALTH SYSTEM, INC.) AND PAY CERTAIN COSTS OF ISSUANCE OF THE BONDS. SCHEDULE K, PART I, COLUMN (F), DESCRIPTION OF PURPOSE ROW E, TO REIMBURSE THE CORPORATION FOR THE COSTS OF (I) RENOVATIONS AND EQUIPMENT TO CONVERT NORTON SUBURBAN HOSPITAL TO A WOMEN'S AND CHILDREN'S HOSPITAL, (II) RENOVATIONS AND EQUIPMENT FOR KOSAIR CHILDREN'S HOSPITAL, (III) RENOVATION AND EXPANSION OF VARIOUS PATIENT CARE AREAS AND THE ACQUISITION OF HOSPITAL EQUIPMENT, INCLUDING BUT NOT LIMITED TO SOFTWARE, MEDICAL AND SURGICAL EQUIPMENT, IMAGING EQUIPMENT AND MONITORING EQUIPMENT AT THE FACILITIES OF THE OBLIGATED GROUP MEMBERS AND (IV) RENOVATING, EXPANDING AND EQUIPPING OTHER PATIENT CARE RELATED PROJECTS AND HOSPITAL PROJECTS AT ITS AFFILIATES. SCHEDULE K, PART II, LINE 3, TOTAL PROCEEDS OF ISSUE DIFFERENCE BETWEEN SERIES 2006 ISSUE PRICE (ISSUE DATE 10/12/2006) IN PART I, COLUMN E AND TOTAL PROCEEDS OF ISSUE IN PART II, LINE 3 IS INVESTMENT EARNINGS DURING THE PROJECT PERIOD. ADDITIONALLY THE BONDS ISSUED 10/12/2006 PROCEEDS ARE IMPACTED BY AN ARBITRAGE REBATE PAYMENT MADE IN 2011. DIFFERENCE BETWEEN SERIES 2011 ISSUE PRICE (ISSUE DATE 8/10/11) IN PART I, COLUMN E AND TOTAL PROCEEDS OF ISSUE IN PART II, LINE 3 IS INVESTMENT EARNINGS DURING THE PROJECT PERIOD. DIFFERENCE BETWEEN SERIES 2013 ISSUE PRICE (ISSUE DATE 8/10/13) AND TOTAL PROCEEDS OF ISSUE IN PART II, LINE 3 IS INVESTMENT EARNINGS DURING THE PROJECT PERIOD AND GAIN/LOSS ON SETTLEMENT OF ASSETS. SCHEDULE K, PART II, LINE 7, ISSUANCE COSTS FROM PROCEEDS COLUMN E - 2013 BOND ISSUE - ALL ISSUANCE COSTS FOR THE 2013 BOND ISSUE WERE PAID FOR WITH CASH FROM NORTON'S EQUITY. NO BOND PROCEEDS WERE USED TO PAY FOR COST OF ISSUANCE. SCHEDULE K, PART IV, LINE 4A, IS THE BOND ISSUE A VARIABLE RATE ISSUE? COLUMN E - 2013A BOND ISSUE IS FIXED RATE DEBT AND 2013C BOND ISSUE IS VARIABLE RATE DEBT. PROCEEDS FROM BOTH BOND ISSUES WERE REPORTED ON ONE IRS FORM 8038 AND COMBINED INTO ONE PROJECT ACCOUNT WITH THE TRUSTEE. A LOUISVILLEJEFFERSON COUNTY METRO GOVERNMENT 320049006 54659LAW4 2013-09-26 200000887 SEE SUPPLEMENTAL INFORMATION false false false A 0 0 200005895 0 0 0 0 0 0 126452416 0 73553479 false false false true A false true true true true true 0.01460 0.00670 0.02130 false false true A false true false false true false 0.0 false 0.0 false true A true PATRICIA TRASATTI FAMILY MEMBER OF CHARLES BOHN, KEY EMPLOYEE 104744 COMPENSATION false CHELSEA R MAYES FAMILY MEMBER GREGORY MAYES, TRUSTEE 54535 COMPENSATION false FORM 990, PART I, LINE 18, CURRENT YEAR TOTAL EXPENSES DURING 2013, THE CORPORATION CONTINUED THE IMPLEMENTATION OF AN ELECTRONIC MEDICAL RECORD SYSTEM (EMR). THE SYSTEM IS AN INTEGRATED EMR SYSTEM THAT ALLOWS SEAMLESS SHARING OF PATIENT INFORMATION AMONG CAREGIVERS, PATIENTS AND FAMILIES. ALL OF THE CORPORATION'S PHYSICIAN PRACTICES, IMMEDIATE CARE CENTERS AND HOSPITALS WILL BE CONNECTED AND ABLE TO VIEW ELECTRONIC MEDICAL RECORDS USING ONE SYSTEM, RATHER THAN A VARIETY OF DISPARATE SYSTEMS. DUE TO THE SIGNIFICANT NON-CAPITAL IMPLEMENTATION COSTS IN 2013 ($37.6 MILLIONS), WHICH INCLUDE: LABOR AND BENEFITS, TRAINING, SUPPLIES, FEES AND SPECIAL SERVICES AND OTHER; THE CORPORATION HAS BROKEN OUT THESE OPERATING COSTS IN THE COMBINED STATEMENT OF OPERATIONS AND CHANGES IN NET ASSETS INTO A SEPARATE LINE TITLED ELECTRONIC MEDICAL RECORDS IMPLEMENTATION. DURING 2013 IMPLEMENTATION ENCOMPASSED THREE HOSPITALS AND THE UPGRADE PREPARATION. THE IMPLEMENTATION WAS CONCLUDED BY THE END OF 2013. FOR PURPOSES OF THE 990 WE HAVE BROKEN OUT THE LINE TITLED ELECTRONIC MEDICAL RECORDS IMPLEMENTATION FROM THE AUDITED FINANCIAL STATEMENTS AND RECLASSED THE EXPENSES BY THEIR NATURAL CLASS. FORM 990, PART III, LINE 4A, PROGRAM SERVICE ACCOMPLISHMENTS (CONTINUED FROM PART III) IN 2013, NORTON HEALTHCARE'S HOSPITALS, AND DIAGNOSTIC CENTERS SERVED 61,281 INPATIENTS, 281,486 OUTPATIENTS AND 208,008 EMERGENCY ROOM VISITS. NORTON HEALTHCARE HOSPITALS' OPERATING ROOMS PROVIDED 18,110 INPATIENT SURGERIES AND 30,773 OUTPATIENT SURGERIES. ADDITIONALLY, 8,173 DELIVERIES OCCUREED AT NORTON HEALTHCARE BIRTHING FACILITIES, NORTON HOSPITAL AND NORTON SUBURBAN HOSPITAL. IN 2013, AS IN YEARS PAST, NORTON HEALTHCARE HOSPITALS PROVIDED CHARITY CARE AND FINANCIAL ASSISTANCE FOR INDIGENT PATIENTS AND DISCOUNTED SERVICES FOR THOUSANDS OF PEOPLE IN THE LOCAL COMMUNITY AND THROUGHOUT THE STATE. IN ADDITION, DONATIONS WERE GIVEN TOWARD COMMUNITY AND PROFESSIONAL EDUCATION, SUPPORT FOR THE UNIVERSITY OF LOUISVILLE SCHOOL OF MEDICINE AND OTHER COMMUNITY PROGRAM AND SERVICES. SPECIFICALLY, NORTON HEALTHCARE'S TOTAL COMMUNITY BENEFIT IN 2013 WAS $157.2 MILLION, INCLUDING $109.8 MILLION IN MEDICAL CARE FOR PATIENTS THROUGH CHARITY CARE AND UPAID COST OF MEDICAID RECIPIENTS AND KENTUCKY DISPROPORTIONATE SHARE PROGRAM SERVICES. THE COMMUNITY BENEFIT OF MORE THAN $13 MILLION A MONTH ALSO INCLUDED COMMUNITY INITIATIVES AND PROGRAMS SUCH AS EDUCATIONAL SUPPORT, SPONSORSHIPS, PASTORAL CARE AND COUNSELING PROGRAMS, THE KENTUCKY REGIONAL POISON CONTROL CENTER OF KOSAIR CHILDREN'S HOSPITAL, AND CHILD GUIDANCE AND ADVOCACY PROGRAMS. NORTON HEALTHCARE'S EMPLOYEES PROVIDED MORE THAN 93,000 HOURS IN SERVICE AS BOARD AND COMMITTEE MEMBERS AND ACTIVE PARTICIPANTS WITH MORE THAN 200 COMMUNITY, STATE AND NATIONAL NONPROFIT ORGANIZATIONS THAT ENDEAVOR TO IMPROVE THE HEALTH STATUS OF INDIVIDUALS. ADDITIONALLY, EMPLOYEES PERSONALLY REPORTED 8,284 COMMUNITY SERVICE HOURS IN SUPPORT OF THEIR FAITH COMMUNITIES, CIVIC ORGANIZATIONS AND OTHER IMPORTANT COMMUNITY GROUPS. NORTON HEALTHCARE PROVIDES PROGRAMMATIC SUPPORT TO THE UNIVERSITY OF LOUISVILLE SCHOOL OF MEDICINE THROUGH FUNDS AND FACILITIES. DURING THE 2013 CALENDAR YEAR, 416 RESIDENTS COMPLETED CLINICAL ROTATIONS IN 38 SPECIALTIES AT NORTON HEALTHCARE FACILITIES. RESIDENCY PROGRAMS ARE PART OF $ 28.4 MILLION IN SUPPORT PROVIDED TO THE SCHOOL. OFFICE OF CHURCH AND HEALTH MINISTRIES *THE OFFICE OF CHURCH AND HEALTH MINISTRIES PROVIDES FREE EDUCATION, RESOURCES AND SERVICES TO FAITH COMMUNITY NURSES AND OTHERS WORKING IN CONGREGATIONAL HEALTH MINISTRIES. IN 2013, THE MINISTRIES SERVED 187 FAITH COMMUNITIES WITH ACTIVE HEALTH AND WELLNESS PROGRAMS. DONATIONS TO THE COMMUNITY *NORTON HEALTHCARE EMPLOYEES AND PHYSICIANS GAVE MORE THAN $960,000 TO THE 2013 COMBINED GIVING CAMPAIGN TO HELP SUPPORT THE WHAS CRUSADE FOR CHILDREN, METRO UNITED WAY, FUND FOR THE ARTS, CHILDREN'S HOSPITAL FOUNDATION, NORTON HEALTHCARE FOUNDATION AND KOSAIR CHARITIES. *NORTON HEALTHCARE EMPLOYEES RAISED THE ROOF ON A HABITAT FOR HUMANITY HOUSE IN THE PORTLAND NEIGHBORHOOD IN LOUISVILLE, KY. THIS IS THE SEVENTH HABITAT HOME NORTON HEALTHCARE HAS FUNDED AND EMPLOYEES HAVE BUILT. *IN 2013, NORTON HEALTHCARE EMPLOYEES DONATED 1,462 POUNDS OF NONPERISHABLE FOOD FOR DARE TO CARE FOOD BANK AND MORE THAN 200 BLANKETS FOR BLANKET LOUISVILLE. THESE NONPROFIT ORGANIZATIONS ARE ON THE FRONT LINE HELPING HUNGRY AND HOMELESS PEOPLE IN OUR COMMUNITY. NORTON HEART CARE *NORTON HEART CARE PROVIDES THE REGION'S MOST COMPREHENSIVE SCREENING, EDUCATION AND PREVENTION PROGRAM AND IS COMMITTED TO EDUCATING OUR COMMUNITY ABOUT HEART HEALTH AND RISK FACTOR MANAGEMENT. IN 2013 THE NORTON HEALTHCARE CENTERS FOR PREVENTION & WELLNESS SCREENED 4,437 PEOPLE FOR HIGH BLOOD PRESSURE, DIABETES, HIGH CHOLESTEROL AND OSTEOPOROSIS AND PROVIDED INFORMATION ABOUT SMOKING CESSATION, DIET AND EXERCISE. IN AUGUST 2013, CARDIOVASCULAR DISEASE NAVIGATION WAS PROVIDED TO AT-RISK PATIENTS IN THE COMMUNITY. MORE THAN 450 PATIENTS WERE CONTACTED FOR FOLLOW-UP. *HEART RISK ASSESSMENTS AND EDUCATION WERE PROVIDED THROUGH THE NORTON WOMEN'S HEART & VASCULAR CENTER, THE REGION'S ONLY CENTER SOLELY DEDICATED TO EDUCATION, PREVENTION AND TREATMENT OF HEART DISEASE. *NORTON WOMEN'S HEART & VASCULAR CENTER OFFERED ITS FREE CIRCLE OF HEARTS PROGRAM, A SERIES OF MONTHLY HEART DISEASE AND PREVENTION CLASSES THAT FOCUS ON HEART HEALTH EDUCATION AND OTHER WELLNESS ISSUES OF INTEREST TO WOMEN. NORTON CANCER INSTITUTE *IN 2013, THE NORTON CANCER INSTITUTE MOBILE PREVENTION CENTER PROVIDED SERVICES IN 139 LOCATIONS IN COLLABORATION WITH MORE THAN 400 COMMUNITY PARTNERS, 50 PERCENT OF WHICH WERE IN UNDERSERVED COMMUNITIES. THIS OUTREACH RESULTED IN 2,348 PEOPLE BEING SCREENED FOR CANCER. OF THESE, APPROXIMATELY 22 PERCENT EITHER HAD NEVER BEEN SCREENED FOR CANCER OR HAD NOT BEEN SCREENED IN THE PAST FIVE YEARS. IN 2013, 15 INDIVIDUALS WERE DIAGNOSED AND TREATED FOR PREINVASIVE AND INVASIVE CANCER. SINCE THE INCEPTION OF THE PROGRAM, 110 INDIVIDUALS HAVE BEEN DIAGNOSED AND TREATED FOR PREINVASIVE AND INVASIVE CANCER. *IN MAY 2013, THE NORTON HEALTHCARE CENTERS FOR PREVENTION & WELLNESS PUBLISHED AN ARTICLE TITLED "MOBILE MAMMOGRAPHY IN UNDERSERVED POPULATIONS: ANALYSIS OF OUTCOMES OF 3,923 WOMEN" IN THE JOURNAL OF COMMUNITY HEALTH. IT WAS ONE OF THE FIRST ARTICLES OF ITS KIND EXAMINING OUTCOMES OF WOMEN SCREENED ON A MOBILE UNIT. *EACH YEAR APPROXIMATELY 100 PATIENTS PARTICIPATE IN SMOKING CESSATION CLASSES AT NORTON HEALTHCARE. *NORTON CANCER INSTITUTE'S GENETIC COUNSELING SERVICES PROVIDED SERVICES TO 377 NEW PATIENTS IN 2013. STAFFED BY AN ONCOLOGIST AND TWO GENETIC COUNSELORS SPECIALIZING IN CANCER GENETICS AND HEREDITARY CANCER SYNDROMES, IT IS THE ONLY DEDICATED SERVICE CENTER OF ITS KIND IN THE REGION. NORTON ORTHOPAEDIC CARE *NORTON ORTHOPAEDIC CARE EARNED THE JOINT COMMISSION'S GOLD SEAL OF APPROVAL FOR KNEE AND HIP REPLACEMENT. THIS RECOGNITION CONFIRMS NORTON ORTHOPAEDIC CARE PROVIDES A CONSISTENTLY HIGH LEVEL OF QUALITY CARE, EXPERT TRAINING ON BEST PRACTICES, A TEAM APPROACH TO PATIENT CARE AND A CULTURE OF EXCELLENCE THROUGHOUT NORTON HEALTHCARE HOSPITALS AND DOCTORS' OFFICES. *IN LATE 2013, NORTON HEALTHCARE OPENED THE NORTON ORTHOPAEDIC & HAND CENTER ON THE CAMPUS OF NORTON BROWNSBORO HOSPITAL. THIS NEW STATE-OF-THE-ART FACILITY ENABLES SPECIALISTS OF NORTON ORTHOPAEDIC CARE, NORTON SPORTS HEALTH AND NORTON HEALTHCARE TO PROVIDE A MULTIDISCIPLINARY APPROACH TO INNOVATIVE ORTHOPAEDIC CARE IN A FACILITY THAT ALSO SUPPORTS RESEARCH, TRAINING AND EDUCATION. THE NEW FACILITY OFFERS PATIENTS SUBSPECIALIZED TRAINED ORTHOPAEDISTS, A NORTON IMMEDIATE CARE CENTER WITH A FOCUS ON ORTHOPAEDICS, REHABILITATION SERVICES, ADVANCED SPORTS TRAINING AND PRIMARY CARE SERVICES WITH AN EMPHASIS ON ORTHOPAEDICS. WOMEN'S SERVICES *FREE CHILDBIRTH EDUCATION CLASSES WERE PROVIDED TO 7,671 ATTENDEES AT NORTON HOSPITAL AND NORTON SUBURBAN HOSPITAL. *EDUCATIONAL CLASSES AND SUPPORT GROUPS WERE PROVIDED OR COORDINATED FOR 16,245 PEOPLE IN THE COMMUNITY THROUGH THE MARSHALL WOMEN'S HEALTH & EDUCATION CENTER AND NORTON WOMEN'S CARE AT NORTON HOSPITAL AND NORTON SUBURBAN HOSPITAL. NORTON HEALTHCARE ALSO OFFERS FREE PREVENTION AND WELLNESS CLASSES, FACILITY TOURS, EDUCATIONAL MATERIALS AND CLINICAL NAVIGATION SERVICES. PEDIATRIC SERVICES *SPECIALISTS AT KOSAIR CHILDREN'S HOSPITAL AND KOSAIR CHILDREN'S MEDICAL CENTER - BROWNSBORO CARED FOR MORE THAN 155,000 CHILDREN THROUGHOUT KENTUCKY AND SOUTHERN INDIANA. *KOSAIR CHILDREN'S HOSPITAL IS HOME TO THE KENTUCKY REGIONAL POISON CONTROL CENTER. IN 2013 THE CENTER RECEIVED 57,103 CALLS FROM CONCERNED FAMILIES WITHIN ALL 120 COUNTIES IN KENTUCKY. THE CENTER PROVIDED TREATMENT ADVICE AND EDUCATION ABOUT HOW TO CORRECTLY HANDLE EXPOSURES TO POISON. IN ADDITION, THE CENTER DISTRIBUTED MORE THAN 20,000 PREVENTION EDUCATION RESOURCES TO PHYSICIANS' OFFICES, HEALTH DEPARTMENTS AND SCHOOLS AND MORE THAN 2,000 PACKETS OF MATERIALS TO INDIVIDUALS WHO CALLED THE TOLL-FREE POISON HELP LINE, (800) 222-1222, AVAILABLE 24 HOURS A DAY, 7 DAYS A WEEK. *CHILD PASSENGER SAFETY TECHNICIANS FROM KOSAIR CHILDREN'S HOSPITAL CHECKED 780 CAR AND BOOSTER SEATS AND PROVIDED 146 CAR SEATS AT FREE CHECKUP CLINICS STATEWIDE. *KOSAIR CHILDREN'S HOSPITAL LEADS SAFE KIDS LOUISVILLE AND JEFFERSON COUNTY, A PROGRAM THAT CONDUCTS SAFETY EVENTS AT SCHOOLS AND IN THE COMMUNITY. IN 2013, 21,175 STUDENTS IN GRADES THREE THROUGH FIVE THROUGHOUT KENTUCKY PARTICIPATED IN 153 BIKE SAFETY "RODEOS." *APPROXIMATELY 425 AREA ELEMENTARY SCHOOL STUDENTS, 14 TEACHERS AND NINE TEACHER'S AIDES PARTICIPATED IN "SAFE KIDS WALK THIS WAY," A PROGRAM LED BY KOSAIR CHILDREN'S HOSPITAL. THE PROGRAM IS DESIGNED TO POINT OUT DANGEROUS AREAS AROUND ROADWAYS AND TEACH CHILDREN SAFE PEDESTRIAN HABITS. *KOSAIR CHILDREN'S HOSPITAL'S "JUST FOR KIDS" TRANSPORT TEAM MADE 1,889 TRIPS TO TRANSPORT SICK, INJURED PREMATURE BABIES AND CHILDREN FROM ACROSS THE REGION TO KOSAIR CHILDREN'S HOSPITAL IN 2013. TRANSPORTATION WAS PROVIDED BY AIRPLANE, HELICOPTER AND SPECIALLY EQUIPPED AMBULANCES (MOBILE INTENSIVE CARE UNITS). FORM 990, PART III, LINE 4A, PROGRAM SERVICE ACCOMPLISHMENT PEDIATRIC SERVICES (CONTINUED) *IN 2013, KOSAIR CHILDREN'S HOSPITAL OPENED THE WENDY L. NOVAK DIABETES CARE CENTER, THANKS TO A GENEROUS $5 MILLION GIFT FROM THE LIFT A LIFE FOUNDATION. THIS IS A STATE-OF-THE-ART, COMPREHENSIVE CENTER OFFERING EDUCATION AND TREATMENT OF TYPE 1 DIABETES, PREVIOUSLY KNOWN AS JUVENILE DIABETES. TYPE 1 DIABETES HAS BEEN ON THE RISE FOR THE PAST 50 YEARS AND IS GROWING ANNUALLY, ESPECIALLY IN YOUNGER AGE GROUPS. MORE THAN 1,200 CHILDREN ARE CURRENTLY BEING TREATED FOR TYPE 1 DIABETES BY SPECIALISTS AT KOSAIR CHILDREN'S HOSPITAL AND THE UNIVERSITY OF LOUISVILLE. APPROXIMATELY 150 CHILDREN ARE DIAGNOSED EACH YEAR, OF WHOM NEARLY 50 PERCENT REQUIRE HOSPITALIZATION IN THE CRITICAL CARE CENTER AT KOSAIR CHILDREN'S HOSPITAL. THE WENDY L. NOVAK DIABETES CARE CENTER INCLUDES DIABETES INPATIENT SERVICES; AN UPCOMING DEDICATED OUTPATIENT CENTER; DIABETES EDUCATORS AND DIABETES NURSE PRACTITIONERS TO HELP KIDS AND FAMILIES LEARN TO MANAGE DIABETES; PEDIATRIC PHYSICIAN SPECIALISTS; DIABETES CARE USING THE MOST ADVANCED INSULIN MANAGEMENT AND GLUCOSE SENSING TECHNOLOGY; PERSONALIZED PROGRAMS FOR PATIENT, FAMILY AND COMMUNITY DIABETES EDUCATION; A TELEMEDICINE PROGRAM SERVING RURAL AREAS OF KENTUCKY; AND AN EXTENDED DIABETES CARE PROGRAM FOR YOUNG ADULTS AGES 18 TO 25. *NEARLY 3,900 KINDERGARTEN STUDENTS, 176 TEACHERS, 529 CHAPERONES AND 203 VOLUNTEERS ATTENDED THE 30TH ANNUAL CHILDREN & HOSPITALS WEEK EVENT LED BY KOSAIR CHILDREN'S HOSPITAL. THE PROGRAM WAS HELD AT LOUISVILLE SLUGGER FIELD AND SUPPORTED BY A KOHL'S CARES GRANT. CHILDREN & HOSPITALS WEEK, HELD EACH YEAR IN MARCH, IS DESIGNED TO ENSURE HEALTH, WELLNESS AND SAFETY AND TO HELP LESSEN THE FEAR AND ANXIETY CHILDREN MAY HAVE ABOUT HOSPITALS. *THOMAS D. KMETZ, DIVISION PRESIDENT, WOMEN'S AND CHILDREN'S SERVICES AND KOSAIR CHILDREN'S HOSPITAL, IS A CONTINUING MEMBER OF THE STEERING COMMITTEE OF THE CHILDREN'S HOSPITAL ASSOCIATION. THE COMMITTEE'S GOALS ARE TO LEAD EFFORTS TO REFORM MEDICAID SERVICES FOR MEDICALLY COMPLEX CHILDREN AND IMPROVE THEIR CARE WHILE REDUCING MEDICAID SPENDING FOR THE STATE AND FEDERAL GOVERNMENTS. AMONG MANY PROFESSIONAL MEMBERSHIPS AND COMMUNITY ACTIVITIES, KMETZ IS ON THE EXECUTIVE COMMITTEE OF THE BOARD OF TRUSTEES AT THE CHILDREN'S HOSPITAL ASSOCIATION, PAST CHAIR OF THE KENTUCKY HOSPITAL ASSOCIATION BOARD OF TRUSTEES, ON THE PASTORAL COUNCIL OF HOLY TRINITY CATHOLIC PARISH AND PAST MEMBER OF THE FINANCE COUNCIL OF THE ARCHDIOCESE OF LOUISVILLE. KMETZ ALSO SERVES AS A BOARD MEMBER WITH THE UNIVERSITY OF KENTUCKY MASTER OF HEALTH ADMINISTRATION BOARD OF ADVISORS. HE IS A FELLOW IN THE AMERICAN COLLEGE OF HEALTHCARE EXECUTIVES. NORTON NEUROSCIENCE INSTITUTE NORTON NEUROSCIENCE INSTITUTE CONTINUED ITS INVESTMENT IN THE COMMUNITY. THE INSTITUTE IS CONTINUING ITS QUEST TO BE THE REGIONAL AND NATIONAL LEADER IN TREATMENT, RESEARCH AND ACADEMIC TRAINING FOR ALL ADULT AND PEDIATRIC NEUROSCIENCE DISCIPLINES. THE INSTITUTE ALLOWS PATIENTS TO BE TREATED FOR NEUROLOGICAL DISORDERS WITHOUT HAVING TO LEAVE THE STATE FOR CARE, AS WAS SOMETIMES NECESSARY IN THE PAST. MORE THAN TWO DOZEN SUBSPECIALTY FELLOWSHIP-TRAINED NEUROSURGEONS, NEUROLOGISTS AND OTHER NEUROLOGICAL-RELATED SPECIALISTS HAVE JOINED THE GROWING PRACTICE. THESE PHYSICIANS PROVIDE EXPERTISE IN STROKE CARE, EPILEPSY, PARKINSON'S DISEASE, MULTIPLE SCLEROSIS, BRAIN TUMORS, HEADACHES, CONCUSSIONS AND MANY OTHER NEUROLOGICAL CONDITIONS. THE FOLLOWING SERVICES ALSO ARE AVAILABLE TO OUR COMMUNITY AS A RESULT OF NORTON HEALTHCARE'S SIGNIFICANT COMMITMENT TO PROVIDE THE BEST NEUROLOGICAL CARE: *AN ENDOVASCULAR NEUROSURGERY TEAM IS AVAILABLE AT TWO NORTON HEALTHCARE ADULT-SERVICE FACILITIES, MAKING ADVANCED STROKE, ANEURYSM AND ARTERIOVENOUS MALFORMATION (RANDOM BRAIN HEMORRHAGE OR RUPTURE) TREATMENT POSSIBLE WHEN IT WAS PREVIOUSLY NOT AVAILABLE IN THE REGION. *A STATE-OF-THE ART EPILEPSY CENTER AT NORTON BROWNSBORO HOSPITAL PROVIDES THE REGION'S MOST ADVANCED EPILEPSY MONITORING UNIT AND IS DEDICATED TO PROVIDING ACCURATE DIAGNOSES AND QUALITY CARE FOR INDIVIDUALS LIVING WITH SEIZURES AND EPILEPSY. AS PART OF NORTON NEUROSCIENCE INSTITUTE'S MULTIDISCIPLINARY APPROACH TO EPILEPSY CARE, THE NORTON BROWNSBORO HOSPITAL EPILEPSY MONITORING UNIT IS A SPECIALIZED INPATIENT UNIT DESIGNED TO EVALUATE AND DIAGNOSE SEIZURE DISORDERS. *A CENTRALIZED NORTON NEUROSCIENCE INSTITUTE RESOURCE CENTER IS AVAILABLE TO PATIENTS, OFFERING FREE EDUCATION AND SUPPORT SERVICES. THE RESOURCE CENTER OFFERS SUPPORT GROUPS, MENTAL HEALTH COUNSELING, CLINICAL TRIAL INFORMATION AND EDUCATIONAL, THERAPEUTIC AND EXERCISE PROGRAMS. IN ADDITION, PATIENTS HAVE ACCESS TO NATIONAL INSTITUTES OF HEALTH CLINICAL TRIALS THROUGH THE CENTER. *THE REGION'S FIRST REHABILITATION PROGRAM FOCUSED SOLELY ON TREATING PATIENTS WITH NEUROLOGICAL AND SPINE DISORDERS HAS THE ONLY LOKOMAT SYSTEM AVAILABLE TO LOUISVILLE-AREA PATIENTS. LOKOMAT ASSISTS WITH WALKING MOVEMENTS FOR PATIENTS RECEIVING THERAPY FOR PARALYSIS OR MOVEMENT DISORDERS. NORTON COMMUNITY MEDICAL ASSOCIATES *NETWORK OF PHYSICIAN PRACTICES LOCATED THROUGHOUT KENTUCKY AND SOUTHERN INDIANA *THIS NETWORK CONSISTS OF PHYSICIAN PRACTICE LOCATIONS AND IMMEDIATE CARE CENTERS, TREATING APPROXIMATELY 1.38 MILLION PATIENTS IN 2013. *ONE AREA OF SERVICE PROVIDED BY THE CMA IS TO STUDY THE NEEDS OF SPECIALTY SERVICES THAT ARE UNDERSERVED IN THE COMMUNITY AND STRIVE TO PROVIDE A QUALITY AND STABLE WORKFORCE TO SATISFY THOSE NEEDS. *PROVIDED PHYSICIANS AND A CHAPLAIN WHO MAKE HOUSE CALLS FOR PATIENTS WHO HAVE DIFFICULTY LEAVING HOME FOR MEDICAL CARE. *PHYSICIANS ARE INVOLVED IN MEDICAL SCREENING, COMMUNITY OUTREACH AND COMMUNITY EDUCATION ACTIVITIES TO PROMOTE WELLNESS AND EARLY INTERVENTIONS. RESEARCH *IN 2013, NORTON HEALTHCARE PARTICIPATED IN MORE THAN 600 RESEARCH PROJECTS. THIS RESEARCH GIVES NORTON HEALTHCARE PATIENTS ACCESS TO NEW, INNOVATIVE TREATMENTS AND HELPS EXPAND THE MEDICAL COMMUNITY'S KNOWLEDGE. THESE EFFORTS IMPROVE THE QUALITY OF MEDICAL CARE AND WILL CONTINUE TO DO SO FOR FUTURE GENERATIONS. *NORTON HEALTHCARE OFFICE OF RESEARCH ADMINISTRATION PARTNERED WITH NORTON UNIVERSITY TO OFFER RESEARCH EDUCATION TO ALL RESEARCHERS IN METRO LOUISVILLE AND BEYOND. IN 2013, NINE PROGRAMS WERE OFFERED. ATTENDEES INCLUDED NORTON HEALTHCARE, KENTUCKYONE HEALTH, UNIVERSITY OF LOUISVILLE HOSPITAL, FLOYD MEMORIAL HOSPITAL, CINCINNATI CHILDREN'S HOSPITAL MEDICAL CENTER, ST. VINCENT HEALTH, UNIVERSITY OF KENTUCKY, UNIVERSITY OF LOUISVILLE AND VARIOUS COMMUNITY-BASED PRACTICES. CHILDREN'S HOSPITAL FOUNDATION THE CHILDREN'S HOSPITAL FOUNDATION RAISES FUNDS TO SUPPORT PROGRAMS, EQUIPMENT AND FACILITIES, RESEARCH, ADVOCACY AND EDUCATION FOR KOSAIR CHILDREN'S HOSPITAL. THE CHILDREN'S HOSPITAL FOUNDATION IS PLEASED TO BE ABLE TO PLAY SUCH A LARGE ROLE IN ENSURING THAT CHILDREN IN THE LOUISVILLE AREA HAVE THE MEDICAL CARE THEY NEED WHEN THEY NEED IT. THANKS TO SUPPORT FROM THE COMMUNITY, KOSAIR CHILDREN'S HOSPITAL HAS SOME OF THE MOST TALENTED AND DEDICATED PEDIATRIC SPECIALISTS AND CLINICAL AND CAREGIVING TEAMS IN THE COUNTRY READY TO CARE FOR CHILDREN. THIS SUPPORT ENABLED THE HOSPITAL TO PROVIDE CARE TO MORE THAN 156,000 CHILDREN IN 2013. KOSAIR CHILDREN'S HOSPITAL, A 265-BED HOSPITAL IS THE ONLY FULL-SERVICE, LEVEL 1 TRAUMA CENTER AND FREE-STANDING PEDIATRIC HOSPITAL IN KENTUCKY AND THE PRIMARY TEACHING FACILITY FOR THE UNIVERSITY OF LOUISVILLE SCHOOL OF MEDICINE DEPARTMENT OF PEDIATRICS. IN ORDER TO CONTINUE TO ADDRESS THE COMMUNITY'S NEED FOR SPECIALIZED PEDIATRIC CARE AND MEET THE EVER-GROWING NEEDS FOR CHILDREN SERVED BY KOSAIR CHILDREN'S HOSPITAL, 2013 BROUGHT SEVERAL SPECIFIC FUNDRAISING INITIATIVES FORWARD TO DONORS AND THE COMMUNITY AT LARGE. THESE EFFORTS FOCUSED ON RAISING FUNDS FOR PEDIATRIC CANCER PREVENTIVE AND CARE, NEONATAL INTENSIVE CARE AND TYPE 1 DIABETES TREATMENT. WHILE THE FOUNDATION'S "JUST FOR KIDS" CAMPAIGN CONCLUDED IN 2011, THE THREE GENERAL AREAS OF DEVELOPMENT FROM THE CAMPAIGN - WORKFORCE, RESEARCH AND FACILITIES - CONTINUE TO GUIDE FUNDRAISING GROWTH IN EACH OF THE AFOREMENTIONED PEDIATRIC SERVICES. ADDITIONALLY, ONGOING AREAS OF NEED, SUCH AS CHILD ADVOCACY; PEDIATRIC PASTORAL CARE AND BEREAVEMENT PROGRAMS; ENDOWED RESEARCH CHAIRS; AND SPECIALTY THERAPIES, INCLUDING CHILD LIFE, EXPRESSIVE AND MUSIC THERAPIES, CONTINUE TO BE AREAS OF FUNDING AND PRIORITY FOR THE CHILDREN'S HOSPITAL FOUNDATION TO ENSURE A TRULY "JUST FOR KIDS" EXPERIENCE FOR PATIENTS AND FAMILIES. THE FOUNDATION CONTINUES TO EXPAND PARTNERSHIPS WITHIN THE COMMUNITY AND ENHANCE THE HOSPITAL'S ABILITY TO SERVE ALL CHILDREN REGARDLESS OF THEIR FAMILIES' ABILITY TO PAY. THE STRENGTH AND VALUE OF THE COMMUNITY'S SUPPORT FOR THE HOSPITAL ARE VISIBLE THROUGH FUNDING AND SUPPORT OF MANY PROJECTS IN 2013, INCLUDING: *MORE THAN $9 MILLION IN INVESTMENTS GRANTED TO KOSAIR CHILDREN'S HOSPITAL TO BENEFIT DOZENS OF AREAS OF CARE THROUGHOUT THE FACILITY. FORM 990, PART III, LINE 4A, PROGRAM SERVICE ACCOMPLISHMENT CHILDREN'S HOSPITAL FOUNDATION (CONTINUED) *$2.5 MILLION GRANTED TO KOSAIR CHILDREN'S HOSPITAL FOR PHASE III NEONATAL INTENSIVE CARE UNIT EXPANSION. CONSTRUCTION IS CURRENTLY UNDERWAY TO PROVIDE PRIVATE AND SEMIPRIVATE ROOMS TO ALLOW ADDITIONAL PRIVACY FOR FAMILIES AND THEIR INFANTS. A NEW FAMILY CENTER WITH AMENITIES TO MAKE THE HOSPITAL FEEL MORE LIKE HOME, A MILK LAB, SEVERAL HIGH-TECH ROOMS AND ROOMS FOR MULTIPLES WILL ENHANCE THE UNIT AND PROVIDE A HEALING ENVIRONMENT FOR THE TINY PATIENTS IN THE HOSPITAL'S CARE. *ENHANCES PEDIATRIC CARDIOLOGY STUDY ON BASIC SCIENCE AND CLINICAL TRANSLATION. *RENOVATIONS TO THE ORTHOPAEDICS ON THE ST. MATTHEWS CAMPUS *FUNDED THE PURCHASE OF ADDITIONAL TRANSPORT TEAM EQUIPMENT *FUNDED THE DESIGN OF THE DIABETES OUTPATIENT CENTER AND TELEMETRY BEDS. *THE CHILDREN'S HOSPITAL FOUNDATION OFFICE OF CHILD ADVOCACY OF KOSAIR CHILDREN'S HOSPITAL, PROVIDES SAFETY AND OUTREACH INFORMATION AIMED AT KEEPING KIDS OUT OF THE HOSPITAL. *ENDOWED RESEARCH CHAIRS IN PEDIATRIC HEMATOLOGY/ONCOLOGY, SLEEP MEDICINE AND ENDOCRINOLOGY. *PROVIDED STAFF EDUCATIONAL OPPORTUNITIES AND ADVANCED CERTIFICATIONS THAT CAN LEAD TO IMPROVED PATIENT TREATMENT. SUPPORT FROM THE CHILDREN'S HOSPITAL FOUNDATION ALLOWS THE PEDIATRIC SPECIALISTS AT KOSAIR CHILDREN'S HOSPITAL TO CONTINUE TO RESPOND TO THE UNIQUE MEDICAL NEEDS OF CHILDREN FROM BIRTH TO AGE 18. NORTON HEALTHCARE FOUNDATION THE NORTON HEALTHCARE FOUNDATION IS THE PHILANTHROPIC ARM OF THE NOT-FOR-PROFIT NORTON HEALTHCARE ADULT-SERVICE HOSPITALS: NORTON AUDUBON HOSPITAL, NORTON BROWNSBORO HOSPITAL, NORTON HOSPITAL AND NORTON SUBURBAN HOSPITAL. THE FOUNDATION RAISES FUNDS EACH YEAR FOR PROGRAMS, EQUIPMENT AND FACILITIES, RESEARCH AND EDUCATION, ENABLING THE HOSPITALS TO STAY UP-TO-DATE WITH MEDICAL ADVANCES AND TECHNOLOGY, AND MAINTAINING THE COMMUNITY'S ACCESS TO HEALTH CARE. COMMUNITY SUPPORT THROUGH THE NORTON HEALTHCARE FOUNDATION ALLOWS CAREGIVERS TO CONTINUE MAKING A DIFFERENCE FOR PATIENTS SERVED BY NORTON HEALTHCARE INC. IN 2013 THAT SUPPORT HELPED THE FOUNDATION PROVIDE FUNDING TO: *PROVIDE ENHANCEMENTS FOR THE MARSHALL WOMEN'S HEALTH & EDUCATION CENTER, LOCATED AT NORTON SUBURBAN HOSPITAL, WHICH PROVIDES A HEALING AND EDUCATIONAL GATHERING SPACE FOR EXPECTANT MOTHERS, WOMEN AT ALL STAGES OF LIFE AND THEIR FAMILIES TO LEARN HOW THEY CAN LIVE THEIR HEALTHIEST. *SUPPORT NORTON CANCER INSTITUTE INITIATIVES THAT PROVIDE EARLY DETECTION SCREENINGS, EDUCATION AND CLINICAL RESEARCH. *PROVIDE ENHANCEMENTS FOR NORTON WOMEN'S CARE AT NORTON HOSPITAL AND NORTON SUBURBAN HOSPITAL, HELPING FAMILIES WELCOME BABIES AS WELL AS SUPPORTING OUTREACH CARE FOR HIGH-RISK PREGNANT WOMEN. *SUPPORT PASTORAL CARE SERVICES FOR PATIENTS, THEIR FAMILIES AND STAFF MEMBERS AT ALL NORTON HEALTHCARE ADULT-SERVICE FACILITIES. *PROVIDE EDUCATIONAL OPPORTUNITIES FOR THE COMMUNITY AND CAREGIVERS, SUCH AS THE GAIL KLEIN GARLOVE LECTURESHIP SERIES AND NIXON LECTURESHIP SERIES, WHICH FOCUS ON TOPICS RELATED TO CANCER CARE, PREVENTION AND RESEARCH. *ALLOW NURSES TO OBTAIN ONCOLOGY-CERTIFIED NURSE DESIGNATION, ENABLING THEM TO PROVIDE THE MOST ADVANCED AND COMPREHENSIVE CARE TO CANCER PATIENTS. *PROVIDE BABY-FRIENDLY HOSPITAL INITIATIVES TO SUPPORT BREASTFEEDING AT NORTON HOSPITAL AND NORTON SUBURBAN HOSPITAL. *PROVIDE SUPPORT FOR BREAST CANCER SURVIVORS. CAPITAL PROJECTS ARE ALSO FUNDED BY THE NORTON HEALTHCARE FOUNDATION. IN 2013, THE FOUNDATION FUNDED THE FOLLOWING PROJECTS: *RENOVATION OF THE ADULT INTENSIVE CARE UNIT AND THE NEONATAL INTENSIVE CARE UNIT AT NORTON SUBURBAN HOSPITAL. *EXPANSION OF THE LERMAN MUSIC LIBRARY AT NORTON AUDUBON HOSPITAL *RENOVATION OF THE REGISTRATION AREA AT NORTON AUDUBON HOSPITAL *RENOVATION OF THE PAIN CENTER AT NORTON HOSPITAL. THE NORTON HEALTHCARE FOUNDATION WILL CONTINUE TO FUND: *SCREENINGS AND EDUCATIONAL PROGRAMS FOR PREVENTION AND EARLY DETECTION OF CANCER IN HIGH-RISK AND MEDICALLY UNDERSERVED AREAS OF KENTUCKY AND SOUTHERN INDIANA. *INTITIATE AND DESIGNED TO IMPROVE CARDIOVASCULAR CARE. *WOMEN'S CARE FOR THOSE WELCOMING A NEW CHILD TO THE FAMILY, AS WELL AS FOR OTHER WOMEN'S ISSUES. *ADVANCED CARE THROUGH NORTON NEUROSCIENCE INSTITUTE FOR PATIENTS REQUIRING TREATMENT OF NEUROLOGICAL DISORDERS. *PREVENTION, SCREENING, CLINICAL RESEARCH AND PROGRAMS FOR NORTON CANCER INSTITUTE, PROVIDING ACCESS TO CARE AT EVERY STAGE OF CANCER. PHILANTHROPY PLAYS AN INCREASINGLY IMPORTANT ROLE AT NORTON HEALTHCARE AS CAREGIVERS STRIVE TO CONTINUOUSLY IMPROVE THE HEALTH OF THE COMMUNITY. FORM 990, PART V, LINE 1A, COMMON PAYING AGENT 1099S NORTON HEALTHCARE, INC., EIN 61-1028725 IS THE COMMON PAYING AGENT FOR NORTON HEALTHCARE, INC., NORTON HOSPITALS, INC., COMMUNITY MEDICAL ASSOCIATES, INC., NORTON PROPERTIES, INC., NORTON HEALTHCARE FOUNDATION, INC. AND THE CHILDREN'S HOSPITAL FOUNDATION INC. THEREFORE, ALL VENDORS, INCLUDING INDEPENDENT CONTRACTORS, ARE PAID AND REPORTED BY NORTON HEALTHCARE, INC. ON BEHALF OF THESE NAMED ENTITIES. FOR PURPOSES OF PART V, LINE 1, THE NUMBER OF 1099S REPORTED AND FILED FOR 2013 BY NORTON HEALTHCARE, INC., WAS APPROXIMATELY 519. NORTON HEALTHCARE, INC., HAS APPROXIMATELY 95 INDEPENDENT CONTRACTORS EXCEEDING $100,000 FOR 2013. NORTON HEALTHCARE, INC., THE COMMON PAYING AGENT, REPORTED 945 VENDORS ON FORM 1096 FOR 2013. FORM 990, PART V, LINE 1B, W-2 G COMMON PAYING AGENT NORTON HEALTHCARE INC., AS THE COMMON PAYING AGENT, FILED TWO FORM W-2G ON BEHALF OF THE CHILDREN'S HOSPITAL FOUNDATION. FORM 990, PART V, LINE 1C, COMMON PAYING AGENT FOR VENDORS NORTON HEALTHCARE, INC., EIN 61-1028725 IS THE COMMON PAYING AGENT FOR NORTON HEALTHCARE INC, AND ALL AFFILIATES. NORTON HEALTHCARE, INC. REQUIRES THAT ALL VENDORS PROVIDE AN ACCURATE TAXPAYER IDENTIFICATION NUMBER ON A FORM W-9, AS REQUIRED BY LAW, PRIOR TO ASSURANCE OF ANY PAYMENT. FORM 990, PART V, LINE 2A, COMMON PAYING AGENT FOR EMPLOYEES NORTON HEALTHCARE, INC EIN 61-1028725 IS THE COMMON PAYING AGENT FOR NORTON HOSPITALS, INC., NORTON PROPERTIES, INC., COMMUNITY MEDICAL ASSOCIATES, INC., NORTON HEALTHCARE FOUNDATION, INC., AND THE CHILDREN'S HOSPITAL FOUNDATION, INC. THEREFORE, ALL APPLICABLE IRS TAX COMPLIANCE FILINGS ARE REPORTED BY NORTON HEALTHCARE, INC. ON BEHALF OF THESE NAMED ENTITIES. NORTON HEALTHCARE, INC. HAS APPROXIMATELY 1,913 EMPLOYEES. NORTON HEALTHCARE, INC., THE COMMON PAYING AGENT, REPORTED 13,098 EMPLOYEES ON FORM W-3 FOR 2013. Form 990, Part VI, Sec A, Line 1a, Delegate broad authority to a committee THE EXECUTIVE COMMITTEE SHALL POSSESS AND MAY EXERCISE ALL THE POWERS AND AUTHORITY OF THE BOARD OF TRUSTEES IN THE MANAGEMENT AND DIRECTION OF THE BUSINESS AND AFFAIRS OF THE CORPORATION. HOWEVER, THE EXECUTIVE COMMITTEE DOES NOT POSSESS THE AUTHORITY TO DO THE FOLLOWING: A) FILL VACANCIES ON THE BOARD; B) CHANGE THE MEMBERSHIP OF THE EXECUTIVE COMMITTEE; C) MAKE DECISIONS TO MERGE, LIQUIDATE, OR OTHERWISE MAKE DECISIONS OUTSIDE OF THE NORMAL COURSE OF BUSINESS; D) MAKE FINAL DETERMINATIONS OF LONG-TERM POLICY; E)HIRE OR FIRE THE CHIEF EXECUTIVE OFFICER; AND F)AMEND THE ARTICLES OF INCORPORATION OR BYLAWS. Form 990, Part VI, Sec A, Line 2, Family/business relationships amongst interested persons MR. STEPHEN A. WILLIAMS, PRESIDENT AND CEO OF NORTON HEALTHCARE, INC., IS ALSO AN OFFICER FOR NORTON HEALTHCARE, INC., NORTON HOSPITALS, INC., COMMUNITY MEDICAL ASSOCIATES, INC., AND NORTON PROPERTIES, INC. MARIA L. BOUVETTE, PRESIDENT AND CEO (THROUGH JULY 31, 2013) OF PORTER BANCORP, INC. IS A TRUSTEE FOR NORTON HEALTHCARE, INC., NORTON HOSPITALS, INC., COMMUNITY MEDICAL ASSOCIATES, INC. AND NORTON PROPERTIES, INC. MR. WILLIAMS IS A BOARD MEMBER OF PORTER BANCORP, INC. - BUSINESS RELATIONSHIP, JAMES FRAZIER, KEY EMPLOYEE, NORTON HEALTHCARE, INC. BUSINESS RELATIONSHIP WITH STEVE HEILMAN AND DOUGLAS WINKELHAKE. - BUSINESS RELATIONSHIP, STEVE HEILMAN, KEY EMPLOYEE, NORTON HEALTHCARE, INC BUSINESS RELATIONSHIP WITH JAMES FRAZIER AND DOUGLAS WINKELHAKE. - BUSINESS RELATIONSHIP, DOUGLAS WINKELHAKE, KEY EMPLOYEE, NORTON HEALTHCARE, INC BUSINESS RELATIONSHIP WITH JAMES FRAZIER AND STEVE HEILMAN - BUSINESS RELATIONSHIP Form 990, Part VI, Sec B, Line 11b, Review of form 990 by governing body AT THE OCTOBER 9, 2014 FINANCE COMMITTEE MEETING OF NORTON HEALTHCARE, INC. (NORTON), THE 990S WERE DISCUSSED AND COMMITTEE MEMBERS HAD AN OPPORTUNITY TO ASK QUESTIONS. COINCIDING WITH THE FINANCE COMMITTEE MEETING, ELECTRONIC COPIES OF THE 990S WERE MADE AVAILABLE TO ALL MEMBERS OF THE FINANCE COMMITTEE AND THE BOARD OF TRUSTEES THROUGH THE DIRECTOR'S PORTAL SITE. NORTON IS THE PARENT OF COMMUNITY MEDICAL ASSOCIATES, INC., NORTON HOSPITALS, INC., NORTON PROPERTIES, INC., NORTON HEALTHCARE FOUNDATION, INC., AND THE CHILDREN'S HOSPITAL FOUNDATION, INC. Form 990, Part VI, Sec B, Line 12c, Conflict of interest policy THE ORGANIZATION REGULARLY AND CONSISTENTLY MONITORS AND ENFORCES COMPLIANCE WITH THE CONFLICT OF INTEREST POLICY BY ANNUALLY DISTRIBUTING A QUESTIONNAIRE THAT REQUIRES OFFICERS, TRUSTEES, AND KEY EMPLOYEES TO DISCLOSE INTERESTS THAT MAY GIVE RISE TO CONFLICTS. IF A CONFLICT ARISES, THE POLICY PROVIDES PROCEDURES FOR ADDRESSING CONFLICTS TO ENSURE DECISIONS ARE MADE IN THE BEST INTEREST OF THE ORGANIZATION. Form 990, Part VI, Sec B, Line 15a, Process to establish compensation of top management official PLEASE SEE EXPLANATION PROVIDED FOR FORM 990, PART VI, LINE 15B Form 990, Part VI, Sec B, Line 15b, Process to establish compensation of other employees THE ORGANIZATION TAKES ALL NECESSARY STEPS TO ENSURE THAT COMPENSATION FOR ALL OFFICERS, DIRECTORS AND KEY EMPLOYEES IS REASONABLE AND APPROPRIATE FOR THE SERVICES PROVIDED TO THE ORGANIZATION. THE ORGANIZATION PROVIDES A TOTAL COMPENSATION PACKAGE THAT IS ON PAR WITH COMPENSATION PROVIDED BY SIMILAR ORGANIZATIONS AND WHICH CONFORMS TO THE POLICIES AND GUIDELINES SET OUT BY THE BOARD OF TRUSTEES. NORTON HEALTHCARE, INC. (NHI) ENGAGES AN OUTSIDE INDEPENDENT COMPENSATION CONSULTANT, INTEGRATED HEALTHCARE STRATEGIES (IHS), TO PROVIDE COMPARABILITY DATA FOR NHI'S OFFICERS AND KEY EMPLOYEES ON TOTAL COMPENSATION FOR SIMILAR POSITIONS AT HEALTH SYSTEMS AND HOSPITAL ORGANIZATIONS SIMILAR IN SIZE, SCOPE OF SERVICES, AND CIRCUMSTANCES. IN ADDITION, THE ORGANIZATION PARTICIPATES IN THIRD PARTY SURVEYS WHICH PROVIDE AGGREGATE, COMPARATIVE COMPENSATION DATA FOR OFFICERS AND KEY EMPLOYEES IN SIMILAR POSITIONS AT SIMILAR ORGANIZATIONS. IHS CONSULTANTS PRESENTED AND DISCUSSED THIS COMPARABILITY DATA IN 2012 FOR THE 2013 COMPENSATION REVIEW AND MET IN 2013 FOR THE 2014 COMPENSATION REVIEW WITH THE COMMITTEE OF BOARD LEADERSHIP (NOW EXECUTIVE COMMITTEE) OF THE BOARD OF TRUSTEES (BOARD) THE COMMITTEE REVIEWED THE EXECUTIVE COMPENSATION AND BENEFITS PROGRAM, DETERMINED TOTAL COMPENSATION FOR THE CEO, AND APPROVED COMPENSATION FOR OTHER OFFICERS AND KEY EMPLOYEES. THE COMMITTEE REVIEWED NHI'S VARIABLE COMPENSATION PROGRAM AND DETERMINED APPROPRIATE AWARDS FOR PERFORMANCE RELATIVE TO GOALS SET FOR THE YEAR. AFTER THE COMMITTEE DETERMINED APPROPRIATE COMPENSATION AND BENEFITS FOR OFFICERS AND KEY EMPLOYEES, THE BOARD APPROVED THEIR TOTAL COMPENSATION. EMPLOYMENT CONTRACTS FOR THE CEO, COO, AND CFO AND KEY EMPLOYEES ARE SIGNED, AND REVIEWED AS NECESSARY. Form 990, Part VI, Sec C, Line 19, Required documents available to the public FINANCIAL STATEMENTS, GOVERNING DOCUMENTS, AND CONFLICT OF INTEREST POLICIES ARE NOT REQUIRED DISCLOSURES PURSUANT TO INTERNAL REVENUE CODE (IRC) SECTION 6104. THESE DOCUMENTS ARE NOT AVAILABLE TO THE PUBLIC. FORM 990, PART VII, SECTION A, LINE 1A, COLUMN (D), BOARD MEMBER STIPEND PAYMENTS NORTON HEALTHCARE, INC. (NHI) AND AFFILIATES (NORTON HOSPITALS, INC., COMMUNITY MEDICAL ASSOCIATES, INC., NORTON PROPERTIES, INC., NORTON HEALTHCARE FOUNDATION, INC., AND THE CHILDREN'S HOSPITAL FOUNDATION, INC.) ENCOURAGES AND FACILITATES BOARD MEMBER ATTENDANCE AT EDUCATIONAL PROGRAMS AND CONFERENCES ON SUBJECTS RELEVANT TO NHI. NHI'S TRAVEL POLICY FOR BOARD OF TRUSTEES PROVIDES THAT FOR EACH TRUSTEE THAT ATTENDS AT LEAST ONE OUT OF TOWN EDUCATIONAL CONFERENCE, A LUMP SUM STIPEND WILL BE PAID TO COVER UNREIMBURSED TRAVEL EXPENSE AND OTHER MISCELLANEOUS EXPENSES ASSOCIATED WITH CONFERENCE PREPARATION, ATTENDANCE OR FOLLOW UP. IN COMPLIANCE WITH IRS REGULATIONS, NHI PROVIDES A FORM 1099 TO ANY TRUSTEE THAT RECEIVES A STIPEND. THESE AMOUNTS HAVE BEEN REPORTED IN PART VII OR THE FORM 990 AS REPORTABLE COMPENSATION TO THE TRUSTEE RECEIVING STIPENDS IN 2013. FORM 990, PART IX, LINE 11G, INTEREST EXPENSE LINE 20 AND INTEREST ALLOCATION LINE 24D NORTON HEALTHCARE, INC.'S (NHI) METHODOLOGY FOR INTEREST EXPENSE ALLOCATION IS TO DETERMINE A BUDGET INTEREST EXPENSE AMOUNT BASED ON ANTICIPATED INTEREST EXPENSE TO BE RECORDED ON NHI'S OUTSTANDING DEBT. THE BUDGETED BOND INTEREST EXPENSE IS ALLOCATED TO ITS AFFILIATES MONTHLY THROUGHOUT THE FISCAL YEAR. FOR PURPOSES OF THE FORM 990 THE AMOUNT OF INTEREST EXPENSE ALLOCATED TO NHI'S AFFILIATES IS REPORTED ON PART IX, LINE 24D. ANY INCREASE OR DECREASE TO THE ACTUAL BOND INTEREST EXPENSE DURING THE FISCAL YEAR IS NOT ALLOCATED TO ITS AFFILIATES BUT IS REFLECTED IN NHI'S FINANCIAL STATEMENTS AND THE FORM 990, PART IX, LINE 20 ACCORDINGLY. IN 2013, THE AMOUNTS BUDGETED FOR THE INTEREST EXPENSE ALLOCATIONS WERE IN EXCESS OF THE ACTUAL AMOUNTS RECORDED. FACTORS CONTRIBUTING TO THE FAVORABLE INTEREST EXPENSE WERE: EARNINGS ON THE CASH FLOW ON THE SWAP AGREEMENTS EXCEEDED EXPECTATIONS, CONTINUATION OF LOW VARIABLE RATES THAT WERE LESS THAN EXPECTATIONS AND A BOND REFUNDING TO A MUCH LOWER INTEREST RATE. Form 990, Part IX, Line 11g, Other Expenses OUTSIDE SERVICES - TOTAL EXPENSE: 54024283, PROGRAM SERVICE EXPENSE: 47541367, MANAGEMENT AND GENERAL EXPENSES: 6482916, FUNDRAISING EXPENSES: ; OTHER EXPENSES - TOTAL EXPENSE: 423124, PROGRAM SERVICE EXPENSE: 356673, MANAGEMENT AND GENERAL EXPENSES: 66451, FUNDRAISING EXPENSES: ; CONTRACT LABOR - TOTAL EXPENSE: 274584, PROGRAM SERVICE EXPENSE: 214875, MANAGEMENT AND GENERAL EXPENSES: 59709, FUNDRAISING EXPENSES: ; PROFESSIONAL FEES - TOTAL EXPENSE: 15239, PROGRAM SERVICE EXPENSE: 15239, MANAGEMENT AND GENERAL EXPENSES: , FUNDRAISING EXPENSES: ; Form 990 , Part XI, Line 9, Other changes in net assets or fund balances AFFILIATE TRANSFER - -188031; SWAP MARK TO MARKET ADJUSTMENT - -9964772; CHANGE IN MINIMUM PENSION LIABILITY - -9448694; FORM 990, PART XII, LINE 3A, A-133 AUDITS PART XII LINE 3A AND 3B AS REQUIRED BY THE U.S. OFFICE OF MANAGEMENT AND BUDGET CIRCULAR A-133, AUDITS OF STATES, LOCAL GOVERNMENTS, AND NON-PROFITS ORGANIZATIONS, IN 2013 NORTON HEALTHCARE, INC. AND AFFILIATES (NORTON HOSPITALS, INC., COMMUNITY MEDICAL ASSOCIATES, INC., NORTON PROPERTIES, INC., AND THE CHILDREN'S HOSPITAL FOUNDATION) RECEIVED AN AUDIT IN ACCORDANCE WITH THE SINGLE AUDIT ACT. NORTON HOSPITALS INC 224 E BROADWAY 5TH FLOOR LOUISVILLE KY 40202 610703799 PROVIDE HOSPITAL SERVICES KY 501(C)(3) 3 NA true COMMUNITY MEDICAL ASSOCIATES INC 224 E BROADWAY 5TH FLOOR LOUISVILLE KY 40202 611276316 OPERATES A NETWORK OF PHYSICIAN PRACTICES KY 501(C)(3) 9 NA true NORTON PROPERTIES INC 224 E BROADWAY 5TH FLOOR LOUISVILLE KY 40202 611028724 MAINTAINS OFFICE AND PARKING FACILITIES KY 501(C)(3) 11 - Type I NA true THE CHILDREN'S HOSPITAL FOUNDATION INC 224 E BROADWAY 5TH FLOOR LOUISVILLE KY 40202 616027530 GENERATE FUNDS TO SUPPORT PROGRAMS AND SERVICES KY 501(C)(3) 7 NA true NORTON HEALTHCARE FOUNDATION INC 224 E BROADWAY 5TH FLOOR LOUISVILLE KY 40202 310914919 GENERATE FUNDS TO SUPPORT PROGRAMS AND SERVICES KY 501(C)(3) 7 NA true NORTON ENTERPRISES INC 224 E BORADWAY 5TH FLOOR LOUISVILLE KY 40202 611054301 PROVIDE NURSING AND PATHOLOGY SERVICES KY NA C CORPORATION 34888665 36849149 1 true false false false false false false false false false false false false false false false false false true true NORTON HOSPITALS INC R 1284167637 FMV NORTON HOSPITALS INC S 1392945080 FMV COMMUNITY MEDICAL ASSOCIATES INC R 273468253 FMV COMMUNITY MEDICAL ASSOCIATES INC S 234956137 FMV NORTON PROPERTIES INC R 37210886 FMV NORTON PROPERTIES INC S 31355352 FMV THE CHILDREN'S HOSPITAL FOUNDATION INC R 4614116 FMV THE CHILDREN'S HOSPITAL FOUNDATION INC S 4750569 FMV NORTON HEALTHCARE FOUNDATION INC R 1695015 FMV NORTON HEALTHCARE FOUNDATION INC S 1439459 FMV