2011-11-11T08:26:52-06:00 2010-12-31 CROWE HORWATH LLP 9600 BROWNSBORO ROAD SUITE 400 LOUISVILLE KY 40241 990 2010-01-01 611028725 NORTON HEALTHCARE INC NORT 5026298249 224 E BROADWAY - 5TH FLOOR LOUISVILLE KY 40202 MICHAEL W GOUGH 5026298249 2011-11-11 5023263996 2010 2016-03-07 17:11:31Z STEPHEN A WILLIAMS 234 E GARY ST STE 225 LOUISVILLE KY 40202 306511917 0 X WWW.NORTONHEALTHCARE.COM X 1983 KY ASSIST ITS TAX EXEMPT AFFILIATED ENTITIES IN CARRYING OUT THEIR HEALTHCARE AND CHARITABLE PURPOSES. 22 19 1386 22 0 0 616143 858007 146384537 154251572 541108 15486421 -60880 13898067 147480908 184494067 3195692 2419994 0 0 80374950 82510670 0 0 0 85524112 85191163 169094754 170121827 -21613846 14372240 761341822 792733695 938893131 947079983 -177551309 -154346288 SEE SCHEDULE O 0 0 129367797 2419994 167731963 SEE SCHEDULE O 129367797 1 1 0 1 0 0 0 0 1 0 1 1 0 1 1 1 0 1 0 0 1 0 0 0 0 0 0 1 1 1 1 0 1 0 0 0 1 0 0 0 1 0 0 0 0 0 1 1 1 0 0 1 X 494 0 1 1386 1 0 1 SZ SP HK MY SN UK AS BR CA NL 0 0 0 0 0 0 0 0 X 22 19 1 0 0 0 0 0 0 1 1 0 0 1 1 1 1 1 1 1 1 0 X HELENA SCHULZ 5026298263 224 E BROADWAY - 5TH FLOOR LOUISVILLE KY 402022025 X DONALD H ROBINSON 10.00 X 0 0 0 JOSEPH A PARADISIII 4.00 X 1500 0 0 CHERYL BALKENHOL 1.00 X 0 0 0 MARIA L BOUVETTE 1.00 X 0 0 0 ROBERT R GOODIN MD 4.00 X 1500 0 0 CRAIG D GRANT 1.00 X 1500 0 0 R K GUILLAUME 3.00 X 1500 0 0 KEVIN J HABLE 1.00 X 0 0 0 MARIA GERWING HAMPTON 2.00 X 1500 0 0 MARTHA HEYBURN MD 1.00 X 1500 0 0 RONALD LEHOCKY MD 1.00 X 1500 0 0 GREGORY E MAYES 5.00 X 1500 0 0 MARY MOSELEY 1.00 X 0 0 0 MITCH NICHOLS 1.00 X 0 0 0 GAIL LYTTLE 1.00 X 0 0 0 G HUNT ROUNSAVALL 3.00 X 0 0 0 REV WILLIAM J SCHULTZ 3.00 X 0 0 0 WENDELL P WRIGHT 1.00 X 1500 0 0 STEPHEN A WILLIAMS 30.00 X X 1908292 0 298109 GARY L STEWART 1.00 X 1818 0 0 CAROLYN J GATZ 1.00 X 1500 0 0 RICHARD S WOLF 1.00 X 0 0 0 RUSSELL F COX 30.00 X 1087174 0 199165 MICHAEL W GOUGH 30.00 X 918325 0 170550 ROBERT B AZAR 30.00 X 483151 0 86735 STEVEN HESTER 50.00 X 679378 0 137287 TRACY WILLIAMS 50.00 X 437141 0 86197 RICHARD CARRICO 50.00 X 449994 0 93917 JOSEPH DEVENUTO 50.00 X 461350 0 272013 SCOTT WATKINS 50.00 X 395915 0 81544 MICHAEL ESPOSITO 50.00 X 388680 0 79554 CHARLES BOHN 50.00 X 390755 0 82363 MARY JO BEAN 50.00 X 407865 0 56290 DANA ALLEN 50.00 X 285449 0 49637 MARY CORBETT 50.00 X 284915 0 52820 JIM MEYERS 50.00 X 219826 0 35200 STEVE READY 50.00 X 254595 0 36287 JON COOPER 50.00 X 307465 0 62566 KIMBERLY THARP-BARRIE 50.00 X 306255 0 53216 STEVE HEILMAN MD 50.00 X 340644 0 42570 STEVE MENAUGH 50.00 X 302439 0 64181 KENNETH WILSON MD 50.00 X 334788 0 41975 GREGG DAVIS 50.00 X 228473 0 31026 JAMES PAROBEK 50.00 X 178348 0 12331 KAREN BOLIN 50.00 X 267483 0 38770 11335518 0 2164303 120 1 1 0 LOCKTON COMPANIES LLC P O BOX 802702 KANSAS CITY MO 64180 INSURANCE CONSULT & BROKER 6485978 FTI CONSULTING INC P O BOX 418005 BOSTON MA 02241 PROFESSIONAL SERVICES 3624361 MEDASSIST INC 6455 RELIABLE PKWY CHICAGO IL 60686 PROFESSIONAL SERVICES 3595084 EMC CORPORATION 4246 COLLECTIONS CTR DR CHICAGO IL 60693 IS SOFTWARE MAINTENANCE 3580919 MESSER CONSTRUCTION CO 5158 FISHWICK DR CINCINNATI OH 45216 CONSTRUCTION AND REPAIRS 3543109 98 802303 55704 858007 MANAGEMENT FEE ALLOCAT 900099 148045757 148045757 CENTRAL SERVICE ALLOCA 900099 2781787 2781787 INSURANCE ALLOCATION 900099 2513361 2513361 CLINICAL RESEARCH TRIA 900099 829706 829706 EDUCATION PROGRAMS 900099 80961 80961 154251572 8179760 8179760 2117881 2117881 242076 242076 242076 242076 127206630 122017850 5188780 5188780 5188780 FLOOD LOSS REIMBURSE 900099 12642005 12642005 MISCELLANEOUS INCOME 900099 308089 308089 FITNESS CENTER INCOME 900099 175600 175600 530297 530297 13655991 184494067 167731963 0 15904097 1499580 1499580 920414 920414 9885065 5360604 4524461 57148972 49414685 7734287 2265462 2159292 106170 7131543 6834053 297490 6079628 5320997 758631 1609692 1479364 130328 506500 202600 303900 218750 87500 131250 1141699 1141699 35819638 23903425 11916213 1898692 1834630 64062 5484534 4506185 978349 1198466 1001547 196919 31830178 31830178 16571642 750695 15820947 102455 92210 10245 EQUIPMENT RENTAL & REPA 23825007 21990905 1834102 SPONSORSHIPS 935755 771438 164317 RECRUITMENT 798183 718980 79203 DUES & SUBSCRIPTIONS 692663 518693 173970 INTEREST ALLOCATION -37770726 -37770726 328035 328035 170121827 129367797 40754030 0 -10516767 -5078403 175414287 180461800 2370811 2229626 20144 15528 1141963 1160395 21221795 22004900 299499738 238144102 67238422 61355636 289042728 375993164 142239323 114397943 73169116 40193106 761341822 792733695 129985303 135858091 5499704 3922896 687037966 678082926 12470370 9670318 103899788 119545752 938893131 947079983 X -177748713 -154583380 197404 237092 -177551309 -154346288 761341822 792733695 X 14372240 8832781 X X 0 1 1 X 1 1 X X X 0 0 0 NORTON HOSP INC 610703799 3 1 1 1 1155298131 COMMUNITY MED ASSOC INC 611276316 9 1 1 1 177420528 NORTON PROP INC 611028724 11A-TYPE I 1 1 1 7992623 NORTON HLTH FOUNDATION 310914919 7 1 1 1 2027414 CHILDREN'S HOSP FND 616027530 7 1 1 1 3527622 5 1346266318 RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED 0 0 0 0 0 0 0 0 1 218750 218750 0 EXPLANATION OF OTHER LOBBYING ACTIVITIES: PART II-B, LINE 1I: 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 $105,000 AND TO ROTUNDA GROUP, LLC TOTALING $113,750. 0 1 2115807 2115807 38765230 28923413 9841817 227908589 208600302 19308287 30710112 620387 30089725 61355636 ALTERNATIVE INVESTMENT MASTER TRUST UNITS 74813910 F REAL ESTATE MASTER TRUST UNITS 29913715 F SECURITIES LENDING COLLATERAL 9670318 F 114397943 INVESTMENTS IN HEALTHCARE & OTHER RELATED ORGANIZATIONS 568362 DEPOSIT - PFG EQUIPMENT LEASE 68557 OTHER LT ASSETS 2395455 2006 BOND ISSUE COST 2519414 1997 BOND ISSUE COSTS 312980 2000 BOND ISSUE COST 11631556 REFUNDABLE ADVANCE 4478102 RECEIVABLE FROM AFFILIATES 5351436 PENSION 12867244 40193106 SELF INSURANCE TRUST 82156180 OTHER INSURANCE 2948858 MARKET VALUE OF SWAP - UNFAVORABLE 14748375 CAPITAL LEASE 1350000 OTHER LIABILITIES 18342339 119545752 184494067 170121827 14372240 21408714 -12575933 8832781 23205021 PART IV, LINE 2B: NORTON HEALTHCARE, INC. PARTICIPATES IN A SECURITIES LENDING PROGRAM, WHEREBY SECURITIES OWNED BY THE CORPORATION ARE LOANED TO OTHER INSTITUTIONS. THE CORPORATION REQUIRES THAT COLLATERAL FROM THE BORROWER IN AN AMOUNT EQUAL TO 102% IN THE CASE OF SECURITIES OF UNITED STATES ISSUERS, AND 105% IN THE CASE OF SECURITIES OF NON-UNITED STATES ISSUERS OF THE MARKET VALUE OF THE LOANED SECURITIES BE PLACED WITH A THIRD PARTY TRUSTEE. THE MARKET VALUE OF CASH COLLATERAL HELD FOR LOANED MARKETABLE SECURITIES IS REPORTED AS COLLATERAL HELD FOR SECURITIES LENDING AGREEMENT, PART X LINE 12, AND A CORRESPONDING PAYABLE, PART X LINE 21, IS REPORTED FOR REPAYMENT OF SUCH COLLATERAL UPON SETTLEMENT OF THE SECURITIES LENDING ARRANGEMENTS. DESCRIPTION OF UNCERTAIN TAX POSITIONS UNDER FIN 48: PART X: THE CORPORATION COMPLETED AN ANALYSIS OF ITS TAX POSITION AT DECEMBER 2010 AND 2009 AND DETERMINED THAT NO MATERIAL AMOUNTS WERE REQUIRED TO BE RECOGNIZED UNDER ASC 740, INCOME TAXES IN THE COMBINED FINANCIAL STATEMENTS AT DECEMBER 31, 2010 AND 2009. SCHEDULE D PART IX OTHER ASSETS, FORM 990, PART X, LINE 15 REFUNDABLE ADVANCES OF $4,478,102 REPRESENT ASSETS TRANSFERRRED FROM THE NORTON HEALTHCARE JAMES R PETERSDORF FUND (COMMUNITY TRUST FUND) TO THE CHILDREN'S HOSPITAL FOUNDATION AND NORTON HEALTHCARE FOUNDATION OF 2,284,102 AND 2,194,000 RESPECTIVELY. THE PRINCIPAL OF THESE FUNDS IS RESTRICTED AND IF THE RESTRICTED PURPOSE CANNOT BE FULFILLED OR NO LONGER ACCORDS WITH THE STRATEGIC PLAN OF NORTON HEALTHCARE, THE FUNDS ASSETS SHALL REVERT BACK TO THE TRUST. SCHEDULE D PART PART XI, LINE 8 COMPONENTS: AFFILIATE TRANSFERS - 69,200 SWAP MARKET TO MARKET ADJUSTMENT -9,785,145 CHANGE IN MINIMUM PENSION LIABILITY 9,928,920 ASSET IMPAIRMENT -12,650,508 TOTAL PART XI, LINE 8: -12,575,933 CENTRAL AMERICA AND THE CARRIBEAN INVESTMENTS 94597581 EAST ASIA AND THE PACIFIC INVESTMENTS 11310797 EUROPE INVESTMENTS 2123751 NORTH AMERICA INVESTMENTS 3025343 RUSSIA INVESTMENTS 880000 SOUTH AMERICA INVESTMENTS 340114 0 0 0 112277586 0 112277586 1 0 0 0 0 0 METHOD USED TO ACCCOUNT FOR EXPENDITURES: SCHEDULE F, PART I, LINE 3: INVESTMENTS ARE RECORDED AT FAIR MARKET VALUE 1 SHAWNEE CHRISTIAN HEALTHCARE CENTER 234 AMY AVENUE LOUISVILLE KY 40212 264345390 501(C)(3) 425000 PROVIDE START-UP FINANCIAL SUPPORT FOR FAITH BASED HEALTHCARE CLINIC SHAWNEE AREA LOUISVILLE COMPREHENSIVE CARE MS CENTER 3991 DUTCHMANS LANE LOUISVILLE KY 40207 201512570 501(C)(3) 100000 MS CONPREHENSIVE CENTER OF EXCELLENCE TO OPTIMIZE CARE FOR GREATEST NUMBER OF PEOPLE WITH MS UNIVERSITY PEDIATRIC SURGERY ASSOCIATES 234 E GRAY ST STE 766 LOUISVILLE KY 40202 611238961 501(C)(3) 250000 PEDIATRIC ACADEMIC SUPPORT AND PEDIATRIC SURGICAL SERVICES U OF L PEDIATRIC SURGERY RESEARCH DEPARTMENT OF SURGERY LOUISVILLE KY 40202 611014882 501(C)(3) 250000 FOR PEDIATRIC SURGERY RESEARCH SUPPORT TO THE U OF L RESEARCH FOUNDATION NORTON LEATHERMAN SPINE CENTER 210 E GRAY ST STE 900 LOUISVILLE KY 40202 611276316 501(C)(3) 856301 STUDY THE TREATMENT OF CHRONIC MECHANICAL BACK PAIN WITH EITHER SURGICAL OR NON-SURGICAL CHOICE NORTON LEATHERMAN SPINE CENTER 210 E GRAY ST STE 900 LOUISVILLE KY 40202 611276316 501(C)(3) -1077281 ADJUSTMENT FOR PRIOR YEARS RECORDING OF GRANT U OF L RESEARCH FOUNDATION 550 S JACKSON STREET LOUISVILLE KY 40202 611029626 501(C)(3) 88804 PEDIATRIC RESEARCH LEADERSHIP LOUISVILLE CENTER 732 W MAIN ST LOUISVILLE KY 40202 310958491 501(C)(3) 20000 PROMOTE LEADERSHIP WITHIN THE LOUISVILLE COMMUNITY THROUGH ORGANIZATION REPRESENTATION DOCTORS WITHOUT BORDERS 333 SEVENTH AVE 2ND FLOOR NEW YORK NY 10001 133433452 501(C)(3) 43379 HAITI RELIEF EDGE OUTREACH INC 1500 ARLINTON AVE LOUISVILLE KY 40206 611262016 501(C)(3) 43379 HAITI RELIEF AMERICAN HEART ASSOCIATION 5455 N HIGH ST COLUMBUS OH 43214 135613797 501(C)(3) 40000 2010 KENTUCKIANA GO RED WOMEN 4 WOMEN INC 323 W BROADWAY SUITE 502 LOUISVILLE KY 40202 611240049 501(C)(3) 40000 2010 CHAMPIONS 4 HER WALK, RUN & FESTIVAL TITLE SPONSOR HABITAT FOR HUMANITY 2777 S FLOYD ST LOUISVILLE KY 40209 581735528 501(C)(3) 37000 HABITAT FOR HUMANITY PROJECT AMERICAN CANCER SOCIETY 701 W MUHAMMED ALI BLVD LOUISVILLE KY 40203 131788491 501(C)(3) 27000 SPONSOR FOR WALKS/RELAY FOR LIFE WITHIN VARIOUS COUNTIES IN KENTUCKY AND SOUTHERN INDIANA CENTER FOR WOMEN AND FAMILIES 927 S 2ND STREET LOUISVILLE KY 40201 610444846 501(C)(3) 35000 PRESENTING SPONSOR FOR 2010 CELEBRATION OF SERVICE & SURVIVAL AND THE SANE PROGRAM THE CENTER FOR COURAGEOUS KIDS 1501 BURNLEY RD SCOTTSVILLE KY 42164 201789905 501(C)(3) 30000 FAMILY RETREAT SPONSORSHIP THE SALUTE TO CATHOLIC SCHOOL ALUMNI 325 W MAIN ST SUITE 1906 LOUISVILLE KY 40202 356078141 501(C)(3) 30000 2010 BENEFACTOR OF THE FATHER JOSEPH MCGEE AWARD SPONSOR EPILEPSY FOUNDATION KENTUCKIANA 982 EASTERN PARKWAY LOUISVILLE KY 40217 611314540 501(C)(3) 25000 SPONSOR OF THE 2010 BRAINSTORM CONFERENCE GILDA'S CLUB LOUISVILLE INC P O BOX 4061 LOUISVILLE KY 40204 201635170 501(C)(3) 25000 SUPPORT FOR THE BUILDING FAMILY RESLIENCE LECTURE SERIES AMERICAN HEART ASSOCIATION 240 WHITTINGTON PKWY LOUISVILLE KY 40222 135613797 501(C)(3) 19000 BLOOD PRESSURE SCREENINGS; GALA AND GENERAL PROGRAM SUPPORT AMERICAN LUNG ASSOCIATION OF KY P O BOX 9067 LOUISVILLE KY 40209 610444714 501(C)(3) 17000 EVENT SPONSOR AND LUNG WALK LOUISVILLE METRO PARKS P O BOX 37280 LOUISVILLE KY 40233 320049006 501(C)(3) 20000 SUPPORT FOR HEALTHY HOMETOWN HIKE AND BIKE SERIES HEUSER HEARING INSTITUTE 115 E KENTUCKY ST LOUISVILLE KY 40203 610492369 501(C)(3) 125000 ENDOWED RESEARCH CHAIR OTOLOGY ARENA SUPPORT 24 UNDERGRADUATE SCHOLARSHIPS FOR STUDENTS PURSUING EDUCATION FOR A CAREER IN THE HEALTHCARE FIELD 78 94000 ASSISTANCE TO CURRENT NORTON HEALTHCARE CLINICAL PERSONNEL 667 825414 PROCEDURE FOR MONITORING GRANTS IN THE U.S.: PART I, LINE 2: SCHEDULE I, PART I, LINE 2: 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. OTHER INFORMATION: PART IV: PART I, LINE 2 - 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 STRATEGIC PLAN. X X 1 1 X X X X X 1 1 0 0 0 0 0 0 0 STEPHEN A WILLIAMS 922287 0 517078 0 468927 0 277463 0 20646 0 2206401 0 0 0 RUSSELL F COX 690430 0 241507 0 155237 0 172291 0 26874 0 1286339 0 0 0 MICHAEL W GOUGH 599288 0 203578 0 115459 0 145308 0 25242 0 1088875 0 0 0 ROBERT B AZAR 260914 0 101412 0 120825 0 77943 0 8792 0 569886 0 0 0 STEVEN HESTER 427976 0 123201 0 128201 0 108807 0 28480 0 816665 0 80319 0 TRACY WILLIAMS 207007 0 81286 0 148848 0 64558 0 21639 0 523338 0 39827 0 RICHARD CARRICO 310829 0 98898 0 40267 0 74093 0 19824 0 543911 0 0 0 JOSEPH DEVENUTO 195386 0 92811 0 173153 0 252423 0 19590 0 733363 0 69465 0 SCOTT WATKINS 266234 0 76655 0 53026 0 61279 0 20265 0 477459 0 26253 0 MICHAEL ESPOSITO 262269 0 72065 0 54346 0 60652 0 18902 0 468234 0 27220 0 CHARLES BOHN 296274 0 61957 0 32524 0 61933 0 20430 0 473118 0 0 0 MARY JO BEAN 204468 0 47333 0 156064 0 48636 0 7654 0 464155 0 128449 0 DANA ALLEN 167368 0 46883 0 71198 0 40926 0 8711 0 335086 0 0 0 MARY CORBETT 223953 0 45080 0 15882 0 40827 0 11993 0 337735 0 0 0 JIM MEYERS 185431 0 21917 0 12478 0 17751 0 17449 0 255026 0 0 0 STEVE READY 196333 0 25845 0 32417 0 18166 0 18121 0 290882 0 0 0 JON COOPER 204326 0 69072 0 34067 0 42965 0 19601 0 370031 0 16767 0 KIMBERLY THARP-BARRIE 197107 0 52370 0 56778 0 43801 0 9415 0 359471 0 24117 0 STEVE HEILMAN MD 301412 0 36799 0 2433 0 23414 0 19156 0 383214 0 0 0 STEVE MENAUGH 201945 0 43953 0 56541 0 42564 0 21617 0 366620 0 44724 0 KENNETH WILSON MD 266464 0 49084 0 19240 0 26138 0 15837 0 376763 0 0 0 GREGG DAVIS 122198 0 47142 0 59133 0 16296 0 14730 0 259499 0 31818 0 JAMES PAROBEK 64155 0 56342 0 57851 0 6296 0 6035 0 190679 0 47669 0 KAREN BOLIN 164487 0 43788 0 59208 0 36305 0 2465 0 306253 0 21241 0 PART I, LINE 1A 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 2010, 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. STEPHEN A. WILLIAMS: THE TOTAL TAX GROSS-UP BENEFITS INCLUDED IN TAXABLE COMPENSATION FOR MR. WILLIAMS ARE $129,637. THE TAX GROSS-UPS ARE RELATED TO THE BENEFIT OUTLINED BELOW: ANNUITY - THE TAX GROSS-UP ASSOCIATED WITH THE ANNUITY BENEFIT IS $129,637. THIS PURCHASED ANNUITY REPRESENTS ACCUMULATED BENEFITS EARNED IN PRIOR YEARS RELATED TO A NON-QUALIFIED DEFINED BENEFIT PENSION RESTORATION PLAN IN EFFECT SINCE 1990. CONTRIBUTIONS TO THIS PLAN WERE MADE IN 2005, 2006, 2007, 2008, 2009 AND 2010. INCLUDED IN MR. WILLIAMS COMPENSATION IN 2010 IS $252,772 WHICH IS THE COST OF THE PURCHASED ANNUITY. THE TOTAL COST OF THE PURCHASED ANNUITY AND THE ASSOCIATED TAX GROSS-UP IS $382,409, WHICH WAS INCLUDED IN TAXABLE COMPENSATION. 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 2010: STEPHEN A. WILLIAMS $58,789 RUSSELL F. COX 59,434 MICHAEL W. GOUGH 52,208 ROBERT B. AZAR 17,500 STEVEN HESTER 17,500 RICHARD CARRICO 17,500 TRACY WILLIAMS 17,500 JOSEPH DEVENUTO 7,115 SCOTT WATKINS 10,000 MICHAEL ESPOSITO 10,000 GREGG DAVIS 6,731 JAMES PAROBEK 3,077 JON COOPER 10,000 KAREN BOLIN 10,000 CHARLES BOHN 17,500 KIMBERLY THARP-BARRIE 10,000 MARY JO BEAN 10,000 DANA ALLEN 10,000 MARY CORBETT 15,000 JIM MEYERS 1,923 STEVE READY 1,154 STEVE HEILMAN 1,538 STEVE MENAUGH 10,000 KENNETH WILSON 1,538 PART I, LINES 4A-B SEVERANCE PAYMENT WAS RECEIVED DURING 2010 BY KEY EMPLOYEE, JOSEPH DEVENUTO IN THE AMOUNT OF $81,060.00, OTHER COMPENSATION,INCLUDED IN SCHEDULE J COLUMN B(III). MR. DEVENUTO WILL CONTINUE TO RECEIVE SEVERANCE PAYMENTS THROUGH SEPTEMBER 3, 2011; THEREFORE INCLUDED IN SCHEDULE J, COLUMN C, $199,948.00 IS INCLUDED AS THE ESTIMATED PAYMENT TO BE PAID IN 2011. PART I, LINE 4B: 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" COLUMN 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. THE "PAYMENT RECEIVED" COLUMN REPRESENTS CASH PAYMENTS THAT THE EMPLOYEE RECEIVED DURING 2010 AND CAN BE COMPRISED OF PRIOR YEARS EMPLOYEE AND EMPLOYER CONTRIBUTIONS. PARTICIPANTS NAME PAY CREDIT PAYMENT RECEIVED STEPHEN A. WILLIAMS $ 252,963 $ 0 RUSSELL F. COX 155,141 0 MICHAEL W. GOUGH 128,158 0 ROBERT B. AZAR 63,243 0 STEVEN HESTER 91,657 80,319 RICHARD CARRICO 59,393 0 TRACY WILLIAMS 49,858 88,616 JOSEPH DEVENUTO 52,475 69,465 SCOTT WATKINS 44,129 26,253 MICHAEL ESPOSITO 43,502 27,220 GREGG DAVIS 16,296 31,818 KIMBERLY THARP-BARRIE 29,101 33,664 MARY JO BEAN 31,486 128,449 JAMES PAROBEK 6,296 47,669 KAREN BOLIN 24,055 21,241 CHARLES BOHN 49,683 0 DANA ALLEN 28,676 0 MARY CORBETT 28,577 0 JIM MEYERS 4,300 10,404 JON COOPER 28,265 16,767 STEVE READY 5,916 34,690 STEVE HEILMAN 11,164 0 STEVE MENAUGH 27,864 44,724 KENNETH WILSON 11,438 0 LOUISVILLEJEFFERSON COUNTY METRO GOVERNMENT 320049006 54659LAC8 2006-10-12 315474736 SEE SCH K PART V 0 0 0 265000 329981080 958005 73383337 2885257 5900000 183389691 2009 0 1 1 1 0 1 1 1 1 0.04130 0.00570 0.04700 1 0 0 0 1 MORGAN STANLEY 3.200000000000 1 0 0 PART I, COLUMN F DESCRIPTION OF PURPOSE OF BOND ISSUE 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. PART IV, ARBITRAGE, LINE 4C TERM OF GIC THE GIC WAS ENTERED INTO OCTOBER 26, 2006. AS OF OCTOBER 31, 2009 WE HAD OFFICIALLY SPENT ALL OF THE GIC. THE OFFICIAL TERMINATION DATE OF THIS GIC WAS JANUARY 1, 2010. WE CONCLUDE THAT THE TERM OF THE GIC IS FROM OCTOBER 26, 2006 TO JANUARY 1, 2010 OR 3.2 YEARS. KAYCEE THARP DAUGHTER OF KIMBER NORTON HEALTHCARE SCHOLARS PROGRAM (SEE SCHEDULE O CONTINUED DISCLOSURE) X 20144 15528 0 1 1 15528 AL J SCHNEIDER COMPANY MARY MOSELEY TRUSTEE IS AN OFFICER OF THE COMPANY 195444 SERVICES INCLUDING BUT NOT LIMITED TO SERVICE BANQUET, CONFERENCES AND OTHER BUSINESS FUNCTIONS 0 FORM 990, PART VI, SECTION A, LINE 2 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 AND NORTON PROPERTIES. MARIA L. BOUVETTE, PRESIDENT AND CEO OF PORTER BANCORP, INC. IS A TRUSTEE FOR NORTON HEALTHCARE, INC., NORTON HOSPITALS, INC., COMMUNITY MEDICAL ASSOCIATES AND NORTON PROPERTIES. MR. WILLIAMS IS A BOARD MEMBER OF PORTER BANCORP, INC. FORM 990, PART VI, SECTION B, LINE 11 ALL FORMS 990 WERE REVIEWED IN ADVANCE OF FILING WITH THE NORTON HEALTHCARE, INC. (NORTON) FINANCE COMMITTEE ON OCTOBER 6, 2011 AND THE FULL NORTON BOARD OF TRUSTEES ON NOVEMBER 8, 2011. NORTON IS THE PARENT OF COMMUNITY MEDICAL ASSOCIATES, INC., NORTON HEALTHCARE FOUNDATION, INC., NORTON HOSPITALS, INC., NORTON PROPERTIES, INC., AND THE CHILDREN'S HOSPITAL FOUNDATION. ALSO, ELECTRONIC COPIES OF ALL FORMS 990 WERE MADE AVAILABLE TO ALL MEMBERS OF THE FINANCE COMMITTEE AND BOARD OF TRUSTEES. FORM 990, PART VI, SECTION B, LINE 12C 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, SECTION B, LINE 15 THE ORGANIZATION TAKES ALL NECESSARY STEPS TO ENSURE THAT ALL OFFICERS, DIRECTORS AND KEY EMPLOYEES ARE COMPENSATED WITHIN APPROPRIATE LEVELS FOR THE SERVICES PROVIDED TO THE ORGANIZATION. THE ORGANIZATION PROVIDES 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. NORTON HEALTHCARE INC. (NHI) ENGAGES AN OUTSIDE INDEPENDENT COMPENSATION CONSULTANT, INTEGRATED HEALTHCARE STRATEGIES (IHS), TO PREPARE COMPENSATION ANALYSIS UTILIZING DATA FROM SIMILAR-SIZED HEALTH SYSTEMS AND HOSPITAL ORGANIZATIONS. IN ADDITION, THE ORGANIZATION PARTICIPATES IN THIRD PARTY SURVEYS WHICH PROVIDE AGGREGATE, COMPARATIVE COMPENSATION DATA FOR OFFICERS AND KEY EMPLOYEES IN SIMILAR-TYPE POSITIONS. IHS CONSULTANTS MET IN 2009 WITH THE COMMITTEE OF BOARD LEADERSHIP (NOW EXECUTIVE COMMITTEE) OF THE BOARD OF TRUSTEES (BOARD) CONCERNING EXECUTIVE COMPENSATION AND BENEFITS PROGRAM FOR NHI EXECUTIVES AND TOTAL COMPENSATION FOR THE CEO. THE CONSULTANTS REVIEWED SOURCES OF COMPARABILITY DATA AND MARKET MOVEMENT COMPARISONS. NHI'S VARIABLE COMPENSATION PROGRAM WAS REVIEWED ALONG WITH BENCHMARK COMPARISONS. BASED ON THE RECOMMENDATIONS OF IHS, EMPLOYMENT CONTRACTS FOR THE CEO, COO AND CFO WERE SUBSEQUENTLY COMPLETED AND APPROVED BY THE BOARD. THE EXECUTIVE COMMITTEE ALSO REVIEWED AND APPROVED ALL KEY EMPLOYEE COMPENSATION BASED ON THE THIRD-PARTY REPORT FURNISHED AND DISCUSSED WITH COMMITTEE MEMBERS, AND SUBSEQUENTLY APPROVED BY THE BOARD. FORM 990, PART VI, SECTION C, LINE 19 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 AT THIS TIME. CHANGES IN NET ASSETS OR FUND BALANCES: FORM 990, PART XI, LINE 5: NET UNREALIZED GAINS ON INVESTMENTS: 21,408,714. ASSET IMPAIRMENT -12,650,508. SWAP MARK TO MARKET ADJUSTMENTS -9,785,145. AFFILIATE TRANSFER -69,200. CHANGE IN MINIMUM PENSION LIABILITY 9,928,920. TOTAL TO FORM 990, PART XI, LINE 5: 8,832,781. FORM 990, PART XII, LINE 2C: THE ORGANIZATION DID NOT CHANGE EITHER ITS OVERSIGHT, PROCESS OR SELECTION PROCESS DURING THE TAX YEAR. FORM 990 PART III, LINE 1, ORGANIZATION'S MISSION: NORTON HEALTHCARE, INC.'S (NHI) EXEMPT 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. THIS INCLUDES, BUT NOT LIMITED TO, CONDUCTING EDUCATIONAL AND RESEARCH ACTIVITIES RELATING TO THE RENDERING OF CARE TO THE SICK AND INJURED AND TO PROVIDE PATIENT CARE THROUGH ITS AFFILIATED HOSPITALS NORTON HOSPITAL, KOSAIR CHILDREN'S HOSPITAL, NORTON AUDUBON HOSPITAL, NORTON SUBURBAN HOSPITAL AND NORTON BROWNSBORO HOSPITAL. EACH HOSPITAL, IN ITS DELIVERY OF SERVICES TO PATIENTS AND IN ITS DEALINGS WITH EMPLOYEES, PHYSICIANS, FAMILY MEMBERS AND THE COMMUNITY AS A WHOLE, SEEKS TO REFLECT THE VALUES AND STANDARDS OF THE ORGANIZATION'S FAITH HISTORY. NHI AND ITS AFFILIATED HOSPITALS WILL A) RESPECT EVERY PERSON, B) SET THE STANDARD FOR QUALITY AND CARE, C) CONTINUALLY IMPROVE CARE AND SERVICE, D) DEMONSTRATE STEWARDSHIP OF RESOURCES AND ACCEPT ACCOUNTABILITY FOR RESULTS, E) SUCCEED WITH INTEGRITY, AND F) COLLABORATE INTERNALLY WITH ONE ANOTHER, WITH PHYSICIANS, AND WITH OTHER PROVIDERS TO DELIVER COMPREHENSIVE, INTEGRATED AND HIGH QUALITY HEALTHCARE. FORM 990, PART III, PROGRAM SERVICE ACCOMPLISHMENTS NORTON HEALTHCARE, INC. (NHI) IS A NOT-FOR-PROFIT CORPORATION BASED IN LOUISVILLE, KENTUCKY. IN 2010, NHI, THROUGH ITS AFFILIATE, NORTON HOSPITALS, INC., NORTON HAS A TOTAL OF 1,837 LICENSED BEDS, NORTON HOSPITAL-642 BEDS; KOSAIR CHILDREN'S HOSPITAL (KCH)-263 BEDS; NORTON AUDUBON HOSPITAL-432 BEDS; NORTON SUBURBAN HOSPITAL-373 BEDS; AND NORTON BROWNSBORO HOSPITAL-127 BEDS. THESE HOSPITALS OPERATE TWENTY-FOUR (24) HOURS A DAY, SEVEN DAYS (7) DAYS A WEEK. NHI, THROUGH ITS AFFILIATE, COMMUNITY MEDICAL ASSOCIATES, INC. HAD A TOTAL OF 67 PHYSICIAN PRACTICES AND 12 IMMEDIATE CARE CENTERS OPERATING IN EIGHT COUNTIES IN KENTUCKY AND SOUTHERN INDIANA. IN 2010, NORTON'S HOSPITALS SERVED 60,408 INPATIENTS, 373,239 OUTPATIENTS, AND 167,457 EMERGENCY ROOM VISITS. IN ADDITION, NORTON'S OPERATING ROOMS CARED FOR 19,466 INPATIENT SURGICAL PATIENTS AND 32,274 OUTPATIENT SURGICAL PATIENTS. ADDITIONALLY, 8,082 BABIES WERE DELIVERED AT NORTON BIRTHING CENTERS. IN 2010, AS IN YEARS PAST, NORTON'S HOSPITALS PROVIDED 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 PROGRAMS AND SERVICES. SPECIFICALLY, IN 2010 NORTON HEALTHCARE'S TOTAL COMMUNITY BENEFIT WAS $107.4 MILLION, OVER $2 MILLION A WEEK, AND INCLUDES COMMUNITY INITIATIVES AND PROGRAMS SUCH AS INDIGENT OR FINANCIAL ASSISTANCE, EDUCATIONAL SUPPORT, UNPAID COSTS OF MEDICAID SERVICES, CORPORATE SPONSORSHIPS, PASTORAL CARE AND COUNSELING PROGRAMS, KENTUCKY POISON CONTROL CENTER AND CHILD GUIDANCE AND ADVOCACY PROGRAMS. NORTON HEALTHCARE'S EMPLOYEES PROVIDED 6,000 COMMUNITY SERVICE HOURS THAT SUPPORTED OVER 250 ORGANIZATIONS INCLUDING 150 ORGANIZATIONS WITH BOARD AND COMMITTEE REPRESENTATION. NORTON HEALTHCARE EMPLOYEES ALSO PROVIDED A SIGNIFICANT CONTRIBUTION TO THE HAITI RELIEF EFFORTS AND ALMOST 4,000 HOURS OF PERSONAL COMMUNITY SERVICE TO OVER 100 ORGANIZATIONS. THE ORGANIZATION IS ALSO PARTNERING WITH OTHER NON-PROFIT ORGANIZATIONS, LOCAL GOVERNMENT AND CENTERS FOR DISEASE CONTROL AND PREVENTION TO IMPROVE THE HEALTH STATUS OF OUR COMMUNITY THROUGH EVIDENCE-BASED INITIATIVES. COMMUNITY EDUCATION AND WORKFORCE DEVELOPMENT * NORTON HEALTHCARE PROVIDES PROGRAMMATIC SUPPORT TO THE UNIVERSITY OF LOUISVILLE SCHOOL OF MEDICINE THROUGH FUNDS AND FACILITIES. DURING THE JULY 2009- JUNE 2010 ACADEMIC YEAR, 152 RESIDENTS COMPLETED CLINICAL ROTATIONS IN 15 SPECIALTIES AT NORTON HEALTHCARE FACILITIES. RESIDENCY PROGRAMS ARE PART OF $23.1 MILLION IN SUPPORT PROVIDED TO THE SCHOOL. * PROVIDED 1,681 DIFFERENT EDUCATIONAL OPPORTUNITIES/CLASSES TO HELP EMPLOYEES ATTAIN THEIR CAREER GOALS. IN 2010, 11,934 EMPLOYEES PARTICIPATED IN THESE COURSES (AN ADDITIONAL 270 VENDORS, NURSING STUDENTS, CONTRACT PHYSICIANS AND VOLUNTEERS ALSO COMPLETED EDUCATIONAL ACTIVITIES AT NORTON HEALTHCARE). 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 2010, THEY SERVED MORE THAN 143 FAITH COMMUNITIES WITH ACTIVE HEALTH AND WELLNESS PROGRAMS. DONATIONS TO THE COMMUNITY * NORTON EMPLOYEES AND PHYSICIANS GAVE $944,383 THROUGH THE 2010 COMBINED GIVING CAMPAIGN. THROUGH THE ANNUAL COMBINED GIVING CAMPAIGN, EMPLOYEES 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 BUILT A HABITAT FOR HUMANITY HOUSE IN THE LOW-INCOME SMOKETOWN NEIGHBORHOOD IN LOUISVILLE, KY. THIS IS THE FOURTH HABITAT HOME BUILT BY NORTON HEALTHCARE EMPLOYEES. * NORTON HEALTHCARE EMPLOYEES DONATED MORE THAN THREE AND ONE HALF TONS OF FOOD (7,245 POUNDS) TO DARE TO CARE, EXCEEDING THE GOAL OF 6,000 POUNDS OF FOOD THAT WAS SET AT THE BEGINNING OF THE FOOD DRIVE. * NORTON HEALTHCARE PARTNERED WITH THE LOUISVILLE METRO DEPARTMENT OF PUBLIC HEALTH AND WELLNESS IN 2010 TO PROVIDE FREE H1N1 AND SEASONAL FLU IMMUNIZATIONS IN THE 41 JEFFERSON COUNTY PUBLIC IN WHICH 80 PERCENT OR MORE OF THE STUDENTS ARE ON FREE OR REDUCED-PRICE LUNCHES. NORTON CONTRIBUTED TO THE SCHOOL IMMUNIZATION CAMPAIGN BY PROVIDING 66 NURSING SHIFTS FOR A TOTAL DONATED LABOR COST OF $9,198. THIS IS THE SECOND YEAR NORTON HEALTHCARE HAS PROVIDED STAFFING, AT NO COST, FOR IMMUNIZATIONS IN JEFFERSON COUNTY PUBLIC SCHOOLS. ACCORDING TO THE LOUISVILLE METRO DEPARTMENT OF PUBLIC HEALTH AND WELLNESS, 8,126 VACCINATIONS WERE ADMINISTERED. 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 2010 THIS INCLUDED PROVIDING INFORMATION ABOUT SMOKING CESSATION, DIET AND EXERCISE, AS WELL AS PERFORMING MORE THAN 9,700 FREE CHOLESTEROL AND BLOOD PRESSURE SCREENINGS AND BODY FAT AND BODY MASS ANALYSES AT MORE THAN 106 LOCATIONS AND EVENTS THROUGH METRO LOUISVILLE. * SCREENINGS AND EDUCATION ALSO WERE PROVIDED THROUGH THE NORTON WOMEN'S HEART CENTER, THE REGION'S ONLY CENTER DEDICATED SOLELY TO EDUCATION, PREVENTION AND TREATMENT OF HEART DISEASE. * THE CENTER'S CIRCLE OF HEARTS PROGRAM IS A FREE MONTHLY SUPPORT AND WELLNESS GROUP THAT FOCUSES ON HEART DISEASE AND OTHER RELATED HEALTH ISSUES FOR WOMEN. * IN 2010 NORTON HEART CARE CONTINUED ITS PARTNERSHIP WITH THE AMERICAN HEART ASSOCIATION THROUGH THE CAMPAIGN TO LOWER BLOOD PRESSURE IN THE AFRICAN-AMERICAN COMMUNITY. BY PROVIDING FREE SCREENINGS AND EDUCATIONAL INFORMATION THROUGH EVENTS AT LOUISVILLE-AREA CHURCHES, BUSINESSES AND CIVIC ORGANIZATIONS, THE THREE-YEAR PARTNERSHIP HAS REACHED ITS GOAL OF SCREENING MORE THAN 1,000 AFRICAN AMERICANS IN JEFFERSON COUNTY. NORTON CANCER INSTITUTE * IN 2010, THE NORTON CANCER INSTITUTE PREVENTION OUTREACH TEAM SCREENED 2,810 PEOPLE FOR CANCER ON THE NORTON CANCER INSTITUTE MOBILE PREVENTION CENTER. NEARLY ONE-THIRD OF THOSE PARTICIPANTS HAD RARELY, OR NEVER BEFORE, BEEN SCREENED. MAJORITY OF THE PEOPLE SERVED BY THE UNIT WERE INDIVIDUALS IN LOW-INCOME AREAS OF THE COMMUNITY. SINCE SCREENINGS BEGAN ON THE MOBILE PREVENTION UNIT, 51 INDIVIDUALS WERE DIAGNOSED WITH INVASIVE CANCER AND PRE-INVASIVE CANCER. * HELPED 87 INDIVIDUALS STOP SMOKING THROUGHH SMOKING CESSATION CLASSES IN 2010. A MEDICAL COMPONENT WAS ADDED SO THAT PRESCRIPTION SMOKING CESSATION MEDICATIONS ALSO ARE AVAILABLE TO THOSE WHO NEED IT. * PROVIDED THE NORTON CANCER INSTITUTE GENETIC COUNSELING SERVICES, THE ONLY DEDICATED SERVICE CENTER OF ITS KIND IN THE REGION, STAFFED BY AN ONCOLOGIST AND TWO GENETIC COUNSELORS SPECIALIZING IN CANCER GENETICS AND HEREDITARY CANCER SYNDROMES. IN 2010, THE PROGRAM PROVIDED SERVICES TO 357 NEW PATIENTS. OF THOSE, 40 WERE FOUND TO HAVE POSITIVE GENETIC TESTING RESULTS. WOMEN'S SERVICES * DELIVERED 8,082 BABIES AT NORTON WOMEN'S PAVILION BIRTHING CENTERS. * PROVIDED FREE EDUCATIONAL CLASSES TO NEARLY 1,000 WOMEN IN THE COMMUNITY THROUGH THE MARSHALL WOMEN'S HEALTH & EDUCATION CENTER AT NORTON SUBURBAN HOSPITAL. THE CENTER OFFERS FREE PREVENTION CLASSES, EDUCATIONAL MATERIALS AND CLINICAL NAVIGATION SERVICES PEDIATRIC SERVICES * KOSAIR CHILDREN'S HOSPITAL RECEIVED THE PRESTIGIOUS RANKING AS ONE OF THE TOP PEDIATRIC MEDICAL CENTERS FROM ACROSS THE UNITED STATES TO BE RANKED IN U.S. NEWS MEDIA GROUP'S 2010 EDITION OF AMERICA'S BEST CHILDREN'S HOSPITALS. THIS WAS THE SECOND TIME KOSAIR CHILDREN'S HOSPITAL HAS BEEN INCLUDED ON THE LIST. IT RANKS 26TH IN THE COUNTRY IN THE TREATMENT OF RESPIRATORY DISORDERS, SCORING PARTICULARLY WELL IN CYSTIC FIBROSIS OUTCOMES AND LOW INCIDENCE OF BLOODSTREAM INFECTIONS. * IN MAY 2010, KOSAIR CHILDREN'S HOSPITAL, KENTUCKY'S ONLY FULL-SERVICE, FREE-STANDING HOSPITAL DESIGNED 'JUST FOR KIDS', EXPANDED TO OFFER CARE AT THE STATE'S FIRST PEDIATRIC OUTPATIENT CENTER, KOSAIR CHILDREN'S MEDICAL CENTER-BROWNSBORO. THIS NEW OUTPATIENT CENTER IS THE ONLY FACILITY OF ITS TYPE IN KENTUCKY, PROVIDING PEDIATRIC SERVICES FOR RESIDENTS OF GROWING NORTHEASTERN JEFFERSON AND SURROUNDING COUNTIES. IT OFFERS OUTPATIENT DIAGNOSTICS, EMERGENCY SERVICES AND OUTPATIENT SURGERY. * KOSAIR CHILDREN'S HOSPITAL LED THE EFFORT TO ENACT A NEW CHILD ABUSE LAW. THE CHILDREN'S HOSPITAL FOUNDATION OFFICE OF CHILD ADVOCACY OF KOSAIR CHILDREN'S HOSPITAL PLAYED AN IMPORTANT ROLE IN THE 2010 KENTUCKY LEGISLATIVE SESSION THAT CREATED A NEW LAW AIMED AT PREVENTING CHILD ABUSE. THROUGH A COLLABORATIVE EFFORT, HOUSE BILL 285, DRAFTED SPECIFICALLY TO REDUCE PEDIATRIC ABUSIVE HEAD TRAUMA THROUGH INCREASED EDUCATION AND AWARENESS EFFORTS, WAS INTRODUCED IN THE HEALTH AND WELFARE COMMITTEE BY REP. ADDIA WUCHNER. * KOSAIR CHILDREN'S HOSPITAL IS HOME TO THE KENTUCKY REGIONAL POISON CENTER WHERE IN 2010, NEARLY 72,000 CONCERNED INDIVIDUALS FROM ALL 120 COUNTIES IN KENTUCKY CALLED THE CENTER TO LEARN HOW TO CORRECTLY HANDLE EXPOSURES TO POISON AND FOR TREATMENT ADVICE. * CHILD PASSENGER SAFETY TECHNICIANS FROM KOSAIR CHILDREN'S HOSPITAL CHECKED MORE THAN 500 CAR SEATS AND BOOSTER SEATS AND PROVIDED APPROXIMATELY 128 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 2010, APPROXIMATELY 20,000 THIRD THROUGH FIFTH-GRADERS THROUGHOUT KENTUCKY PARTICIPATED IN BIKE SAFETY 'RODEOS'. * APPROXIMATELY 500 AREA ELEMENTARY STUDENTS PARTICIPATED IN SAFE KIDS WALK THIS WAY, ANOTHER PROGRAM LED BY KOSAIR CHILDREN'S HOSPITAL AND DESIGNED TO POINT OUT DANGEROUS AREAS AND TEACH CHILDREN SAFE PEDESTRIAN HABITS. * KOSAIR CHILDREN'S HOSPITAL RECEIVED DESIGNATION FROM THE U.S. DEPARTMENT OF HEALTH AND HUMAN SERVICES AS A MEDAL OF HONOR HOSPITAL. KOSAIR CHILDREN'S RECEIVED THIS RECOGNITION FOR ACHIEVING AND SUSTAINING NATIONAL GOALS FOR ORGAN DONATION, INCLUDING A DONATION RATE OF 75 PERCENT OR MORE OF ELIGIBLE DONORS. THE HOSPITAL'S PEDIATRIC KIDNEY TRANSPLANT PROGRAM RECEIVED A BRONZE MEDAL FOR ITS SUCCESSFUL OUTCOMES OF KIDNEY TRANSPLANTS, INCLUDING ONE-YEAR POST-TRANSPLANT SURVIVAL RATES, DECEASED DONOR TRANSPLANTATION RATES AND LOW RATES FOR WAITLIST MORTALITY. * KOSAIR CHILDREN'S HOSPITAL 'JUST FOR KIDS' TRANSPORT TEAM ASSISTED IN THE TRANSPORT OF 1,268 SICK BABIES AND INJURED CHILDREN FROM ACROSS THE REGION TO KOSAIR CHILDREN'S HOSPITAL EACH YEAR BY WAY OF TWO MOBILE INTENSIVE CARE UNITS, AND THEIR SERVICES ON HELICOPTERS AND AIRPLANES. * MORE THAN 5,000 KINDERGARTEN STUDENTS AND 1,200 PARENTS AND TEACHERS ATTENDED CHILDREN AND HOSPITALS WEEK AT KOSAIR CHILDREN'S HOSPITAL. THE WEEKLONG EVENT IS HELD EVERY MARCH AND IS DESIGNED TO HELP LESSEN THE FEAR AND ANXIETY CHILDREN MAY HAVE ABOUT HOSPITALS. * A PATIENT CARE SYSTEMS ANALYST IN THE 'JUST FOR KIDS' CRITICAL CARE CENTER AT KOSAIR CHILDREN'S HOSPITAL WAS RECOGNIZED BY THE NATIONAL ASSOCIATION OF CHILDREN'S HOSPITALS AND RELATED INSTITUTIONS (NACHRI) COUNCIL ON MANAGEMENT INFORMATION SYSTEM, FOR THE EXCEPTIONAL USES OF NACHRI ANALYTICS PROGRAM DATA TO IMPROVE THE EFFICIENCY, SAFETY, TIMELINESS AND EFFECTIVENESS OF CARE IN CHILDREN'S HOSPITALS. * THE KOSAIR CHILDREN'S HOSPITAL INTERVENTIONAL RADIOLOGY SUITE WAS COMPLETED. THIS NEW RESOURCE ALLOWS CLINICIANS THE ABILITY TO DELIVER MINIMALLY INVASIVE TREATMENT THROUGH NEEDLES AND CATHETERS WITH THE AID OF CT, X-RAY OR ULTRASOUND, INSTEAD OF SURGERY. ORTHO/NEURO/SPINE SERVICES * NORTON NEUROSCIENCE INSTITUTE CONTINUED ITS $100 MILLION, 10-YEAR INVESTMENT IN THE COMMUNITY IT SERVES. THE INSTITUTE IS POISED TO BE THE FUTURE REGIONAL AND NATIONAL LEADER IN TREATMENT, RESEARCH AND ACADEMIC TRAINING FOR ALL ADULT AND PEDIATRIC NEUROSCIENCE DISCIPLINES. THE INSTITUTE IS DESIGNED TO TREAT THESE PATIENTS FOR THEIR NEUROLOGICAL DISORDERS WITHOUT HAVING TO LEAVE THE STATE FOR CARE AS WAS SOMETIMES NECESSARY IN THE PAST. NEARLY 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, MOVEMENT DISORDERS, PARKINSON'S DISEASE, MULTIPLE SCLEROSIS, BRAIN TUMORS AND CONCUSSIONS. ALSO AS A RESULT OF NORTON'S $100 MILLION COMMITMENT, THE FOLLOWING SERVICES BEGAN IN 2010 AND NOW ARE AVAILABLE TO THE COMMUNITY. * THE NEUROENDOVASCULAR PROGRAM BECAME AVAILABLE AT ALL NORTON HEALTHCARE ADULT FACILITIES MAKING ADVANCED STROKE, ANEURYSM AND ARTERIOVENOUS MALFORMATION (RANDOM BRAIN HEMORRHAGE OR RUPTURE) TREATMENT POSSIBLE -- NOT PREVIOUSLY AVAILABLE IN THE REGION. * A STATE-OF-THE ART EPILEPSY CENTER OPENED AT NORTON BROWNSBORO HOSPITAL, PROVIDING THE REGION'S MOST ADVANCED EPILEPSY MONITORING UNIT, 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 MULTIPLE SCLEROSIS (MS) CENTER OPENED AT NORTON SUBURBAN HOSPITAL, PROVIDING MS PATIENTS DEDICATED PROVIDERS THAT OFFER COMPREHENSIVE CARE, ENHANCED PATIENT RESOURCES, AND SUPPORT SERVICES ALL IN ONE CENTRALIZED LOCATION. IN ADDITION, MS 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 OPENED WITH THE ONLY "LOKOMAT" SYSTEM IN LOUISVILLE. THE SYSTEM ASSISTS PARALYZED PATIENTS OR THOSE WITH MOVEMENT DISORDERS. COMMUNITY MEDICAL ASSOCIATES * TREATED IN EXCESS OF 878,000 PATIENTS IN 2010. * THIS NETWORK CONSISTS OF 67 PRACTICES AND 12 IMMEDIATE CARE CENTERS IN EIGHT COUNTIES IN KENTUCKY AND SOUTHERN INDIANA. * COMMUNITY MEDICAL ASSOCIATES ONE AREA OF SERVICE 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. * 2010 SPECIALTY GROUPS ADDED INCLUDE BREAST HEALTH, NEUROLOGY, BARIATRICS AND ORTHOPEDIC SURGERY. * PHYSICIANS AND CHAPLAINS ALSO MAKE HOUSE CALLS FOR PATIENTS WHO HAVE DIFFICULTY LEAVING THEIR HOMES FOR MEDICAL CARE. * PHYSICIANS ARE INVOLVED IN MEDICAL SCREENING, COMMUNITY OUTREACH AND COMMUNITY EDUCATION ACTIVITIES TO PROMOTE WELLNESS AND EARLY INTERVENTIONS. PHYSICIANS ALSO SERVE IN A VARIETY OF CAPACITIES FOR BOTH MEDICAL AND COMMUNITY RESOURCE ORGANIZATIONS. RESEARCH * ADDED NEW NORTON-EMPLOYED RESEARCH GROUPS: NORTON CARDIOVASCULAR ASSOCIATES AND NORTON BLUEGRASS CARDIOLOGY. * NORTON HEALTHCARE OFFICE OF RESEARCH ADMINISTRATION PARTNERED WITH NORTON UNIVERSITY TO OFFER RESEARCH EDUCATION TO ALL RESEARCHERS IN THE LOUISVILLE METRO AREA AND BEYOND. IN 2010, NINE PROGRAMS WERE OFFERED. INSTITUTIONAL ATTENDEES INCLUDED: NORTON HEALTHCARE, JEWISH HOSPITAL & ST. MARY'S HEALTHCARE, UNIVERSITY OF LOUISVILLE HOSPITAL, FLOYD MEMORIAL HOSPITAL, OWENSBORO HOSPITAL MEDICAL SYSTEM (OHMS), CENTRAL BAPTIST, UNIVERSITY OF KENTUCKY, UNIVERSITY OF LOUISVILLE, AND VARIOUS COMMUNITY-BASED PRACTICES. CHILDREN'S HOSPITAL FOUNDATION THE CHILDREN'S HOSPITAL FOUNDATION IS THE PHILANTHROPIC ARM OF KOSAIR CHILDREN'S HOSPITAL AND WORKS TO RAISE AWARENESS AND FUNDS IN SUPPORT OF THE HOSPITAL. EACH YEAR, MORE THAN 120,000 CHILDREN IN OUR REGION DEPEND ON KOSAIR CHILDREN'S FOR SPECIALIZED MEDICAL CARE. THE FOUNDATION HAS EXPANDED PARTNERSHIPS WITHIN THE COMMUNITY AND ENHANCED 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 PROJECTS THAT INCLUDE: * THE NEW KOSAIR CHILDREN'S MEDICAL CENTER-BROWNSBORO, FEATURING A MEDITATION GARDEN, PLAYGROUND AND FUN ZONES TO HELP EASE THE MINDS OF PATIENTS AND FAMILIES, PLUS THE GETWELL NETWORK, WHICH PROVIDES INTERACTIVE PROGRAMMING AND EDUCATION THROUGH TELEVISION MONITORS. * A NEW SURGICAL EPILEPSY PROGRAM AND SEIZURE MONITORING UNIT THAT BRINGS NEW TREATMENT OPTIONS FOR CHILDREN SUFFERING FROM SEIZURES. * THE CHILDREN'S HOSPITAL FOUNDATION OFFICE OF CHILD ADVOCACY OF KOSAIR CHILDREN'S HOSPITAL, WHICH HELPS PROVIDE SAFETY AND OUTREACH INFORMATION AIMED AT KEEPING KIDS OUT OF THE HOSPITAL. * PEDIATRIC BEREAVEMENT AND PASTORAL CARE PROGRAMS, WHICH PROVIDE EMOTIONAL AND SPIRITUAL SUPPORT TO FAMILIES OF CHILDREN IN THE HOSPITAL. * CHILD LIFE, EXPRESSIVE THERAPY AND MUSIC THERAPY PROGRAMS. * ENDOWED RESEARCH CHAIRS IN PEDIATRIC HEMATOLOGY/ONCOLOGY, SLEEP MEDICINE AND ENDOCRINOLOGY. * A NEW SYSTEM TO MORE EFFECTIVELY DIAGNOSE AND TREAT GASTROESOPHAGEAL REFLUX IN CHILDREN-A CONDITION THAT IF LEFT UNTREATED, CAN DAMAGE THE ESOPHAGUS OR CAUSE RECURRENT PNEUMONIA, VOMITING AND WEIGHT LOSS. * STAFF EDUCATIONAL OPPORTUNITIES AND ADVANCED CERTIFICATIONS THAT CAN LEAD TO IMPROVED PATIENT TREATMENT. * NEW ELECTROCARDIOGRAM MONITORING EQUIPMENT THAT ALLOWS ANESTHESIOLOGISTS TO BETTER DETECT ARRHYTHMIA'S DURING SURGERY AS WELL AS MONITOR CHILDREN'S AWARENESS. * RENOVATION OF THE PLAY ROOM AND FAMILY RESOURCE CENTER FOR THE CANCER CARE AND RENAL CENTER TO GIVE PATIENTS AND THEIR FAMILIES A MORE HOME-LIKE ATMOSPHERE WHEN THEY ARE HOSPITALIZED FOR LONG PERIODS OF TIME. * CONTINUATION OF SAFETY CITY, A PROGRAM FOR AREA SECOND-GRADE STUDENTS THAT TEACHES BICYCLE, PEDESTRIAN, SCHOOL BUS, STRANGER-DANGER AND TRAFFIC SAFETY. NORTON HEALTHCARE FOUNDATION THE NORTON HEALTHCARE FOUNDATION IS THE PHILANTHROPIC ARM OF THE NOT-FOR-PROFIT NORTON HEALTHCARE ADULT-SERVICE HOSPITALS-NORTON HOSPITAL, NORTON AUDUBON HOSPITAL, NORTON BROWNSBORO HOSPITAL AND NORTON SUBURBAN HOSPITAL. THE FOUNDATION RAISES FUNDS EACH YEAR TO UNDERWRITE AND EXPAND PROGRAMS, EQUIPMENT AND FACILITIES, RESEARCH AND EDUCATION, AND 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 IN GREATER LOUISVILLE. IN 2010 THAT SUPPORT HELPED THE FOUNDATION PROVIDE FUNDING TO: * SUPPORT NORTON CANCER INSTITUTE INITIATIVES THAT PROVIDE EARLY DETECTION SCREENINGS, EDUCATION AND CLINICAL RESEARCH * PROVIDE FUNDING TO AID IN THE CONSTRUCTION OF THE NEW NORTON CANCER INSTITUTE-DOWNTOWN BUILDING, WHICH IS EQUIPPED TO PROVIDE THE LATEST IN RADIATION AND TUMOR TREATMENT FOR PEDIATRIC AND ADULT PATIENTS. FUNDING INCLUDES ART GLASS WINDOWS AND AREAS THAT ASSIST IN EASING PATIENTS AND FAMILIES' ANXIETY WHILE ALSO HEALING THE MIND AND SPIRIT. * SUPPORT PASTORAL CARE SERVICES FOR PATIENTS, THEIR FAMILIES AND STAFF MEMBERS AT ALL NORTON HEALTHCARE ADULT-SERVICE FACILITIES * PURCHASE ADDITIONAL EQUIPMENT AND PROVIDE ENHANCEMENTS FOR NORTON WOMEN'S PAVILION AT NORTON SUBURBAN HOSPITAL AND NORTON HOSPITAL, HELPING FAMILIES WELCOMING A NEW BABY TO THE FAMILY. * PURCHASE ADDITIONAL EQUIPMENT FOR THE NORTON AUDUBON HOSPITAL CRITICAL CARE AREA, IMPROVING CARE GIVEN TO PATIENTS RECOVERING FROM THE MOST SERIOUS SURGERIES AND ILLNESSES. * CONTINUE OFFERING COMMUNITY HEALTH INFORMATION CLASSES AND SUPPORT THROUGH THE MARSHALL WOMEN'S HEALTH & EDUCATION CENTER AT NORTON SUBURBAN HOSPITAL. * PROVID A NURSE COORDINATOR TO PROVIDE ASSISTANCE TO ADULT CYSTIC FIBROSIS PATIENTS. * PROVIDE EDUCATIONAL OPPORTUNITIES FOR THE COMMUNITY AND CAREGIVERS, SUCH AS THE GAIL KLEIN GARLOVE LECTURESHIP AND NIXON LECTURESHIP, 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 COMPREHENSIVE CARE TO CANCER PATIENTS. * ALLOW NURSES TO OBTAIN CERTIFIED NEUROSPINE NURSE DESIGNATION, ENABLING THEM TO PROVIDE THE HIGHEST LEVELS OF NEUROSPINE CARE FOR THOSE WITH DISEASES AND INJURIES TO THE BRAIN AND SPINE. * ENHANCE UNITS AND REPLACE AGING EQUIPMENT AT NORTON HOSPITAL. FORM 990, PART V, LINE 1A AND PART VII, SECTION B, LINE 1 AND 2: 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. 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 2010 BY NORTON HEALTHCARE, INC. WAS APPROXIMATELY 494. NORTON HEALTHCARE, INC. HAS APPROXIMATELY 98 INDEPENDENT CONTRACTORS EXCEEDING $100,000 FOR 2010. NORTON HEALTHCARE, INC., THE COMMON PAYING AGENT, REPORTED 870 ON FORM 1096 FOR 2010. FORM 990 PART V LINE 1B: NORTON HEALTHCARE INC., AS THE COMMON PAYING AGENT, FILED A FORM W-2G ON BEHALF OF THE CHILDREN'S HOSPITAL FOUNDATION. FORM 990, PART V LINE 1C: NORTON HEALTHCARE, INC., EIN 61-1028725 IS THE COMMON PAYING AGENT FOR NORTON HEALTHCARE INC, AND ALL AFFILITIES. NORTON HEALTHCARE, INC. REQUIRES THAT ALL VENDORS PROVIDE AN ACCRUATE TAXPAYER IDENTIFICAION NUMBER ON A FORM W-9, AS REQURIED BY LAW, PRIOR TO ISSURANCE OF ANY PAYMENT. FORM 990, PART V, LINE 2A AND PART I, LINE 5: NORTON HEALTHCARE, INC EIN 61-1028725 IS THE COMMON PAYING AGENT FOR NORTON HOSPTIALS, INC., NORTON PROPERTIES, INC., COMMUNITY MEDICAL ASSOCIATES, INC., NORTON HEALTHCARE FOUNDATION, INC., AND THE CHILDREN'S HOSPITAL FOUNDATION. THEREFORE, ALL APPLICABLE IRS TAX COMPLIANCE FILINGS ARE REPORTED BY NORTON HEALTHCARE, INC. ON BEHALF OF THESE NAMED ENTITIES. NORTON HEALTHCARE, INC. HAS APPROXIMATELY 1,386 EMPLOYEES. NORTON HEALTHCARE, INC., THE COMMON PAYING AGENT, REPORTED 12,156 EMPLOYEES ON FORM W-3 FOR 2010. FORM 990, PART VII, SECTION A, LINE 1A, COLUMN B: THE INTERESTED PERSONS LISTED BELOW ARE OFFICERS FOR NORTON HEALTHCARE, INC AND AFFILIATES, WHICH INCLUDES: NORTON HEALTHCARE, INC.(NHI), NORTON HOSPITALS, INC. (HOSPITALS), COMMUNITY MEDICAL ASSOCIATES, INC. (CMA), NORTON PROPERTIES, INC.(PROPERTIES), NORTON HEALTHCARE FOUNDATION, INC. (NHF) AND THE CHILDREN'S HOSPITAL FOUNDATION (CHF). ESTIMATED BELOW ARE THE AVERAGE HOURS PER WEEK DEVOTED TO EACH ORGANIZATION DURING 2010: NHI HOSPITALS CMA PROPERTIES NHF CHF TOTAL STEPHEN A. WILLIAMS 30 10 6 2 1 1 50 RUSSELL F. COX 30 10 6 2 1 1 50 MICHAEL W. GOUGH 30 10 6 2 1 1 50 ROBERT B. AZAR 30 10 6 2 1 1 50 FORM 990, PART VII, SECTION A, LINE 1A, COLUMN D: NORTON HEALTHCARE, INC. (NHI) AND AFFILIATES (NORTON HOSPITALS, INC., COMMUNITY MEDICAL ASSOCIATES, INC. AND NORTON PROPERTIES, INC. AND NORTON HEALTHCARE 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 OF THE FORM 990 AS REPORTABLE COMPENSATION TO THE TRUSTEE RECEIVING STIPENDS IN 2010. FORM 990 PART IX LINE 20, INTEREST EXPENSE AND LINE 24E, INTEREST EXPENSE ALLOCATION: 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 24E. 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 2010, THE AMOUNTS BUDGETED FOR THE INTEREST EXPENSE ALLOCATIONS WERE IN EXCESS OF THE ACTUAL AMOUNTS RECORDED. FACTORS CONTRIBUTING TO THE FAVORABLE INTEREST EXPENSE WERE: THE PURCHASE OF NHI'S 2003 BOND ISSUE IN EARLY 2009 (AND ULTIMATELY EXTINGUISHED LATER IN 2009); EARNINGS ON THE CASH FLOW ON THE SWAP AGREEMENTS EXCEEDED EXPECTATIONS AND GREATER THAN ANTICIPATED CAPITALIZED INTEREST, WHICH LOWERED THE AMOUNT RECORDED AS INTEREST EXPENSE. FORM 990, 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 2010 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. SCHEDULE L, PART II, LOANS TO AND FROM INTERESTED PERSONS REGARDING NORTON HEALTHCARE SCHOLARS PROGRAM: NORTON HEALTHCARE SCHOLARS PROGRAM IS A STUDENT LOAN PROGRAM THAT PROVIDES EDUCATIONAL FUNDING TO STUDENTS INTERESTED IN PURSUING DESIGNATED HEALTHCARE CAREERS. IT IS A PARTNERSHIP WITH KENTUCKY AND SOUTHERN INDIANA COLLEGES AND UNIVERSITIES. THIS PROGRAM WAS STARTED BY NORTON HEALTHCARE AS A RESULT OF THE HEALTHCARE WORKER SHORTAGE AND WAS BEGUN AS A WORKFORCE DEVELOPMENT INITIATIVE TO ENSURE THE COMMUNITY HAS ENOUGH HEALTHCARE WORKERS. UPON GRADUATION, NORTON HEALTHCARE SCHOLARS BEGIN CAREERS WITH NORTON HEALTHCARE AND ARE ELIGIBLE TO HAVE THEIR LOAN FORGIVEN. CURRENTLY NORTON HEALTHCARE HAS 335 SCHOLARS IN SCHOOL. THIS PROGRAM HAS 1,640 GRADUATES AND 1,252 OF THESE GRADUATES HAVE CONTINUED THEIR CAREERS WITH NORTON HEALTHCARE. APPLICANTS ARE REVIEWED EACH YEAR FOR THIS PROGRAM. FOR 2010, 205 APPLICANTS WERE GRANTED ENROLLMENT INTO THE NORTON HEALTHCARE SCHOLARS PROGRAM. SCHOLARS WHO FAIL TO GRADUATE OR FULFILL THEIR COMMITMENT WITH NORTON HEALTHCARE ARE REQUIRED TO REPAY THE LOAN AT THE TIME OF WITHDRAWAL FROM THE PROGRAM. NORTON HOSPITALS INC 224 E BROADWAY 5TH FLOOR LOUISVILLE KY 40202 610703799 PROVIDE HOSPITAL SERVICES KY 501(C)3 3 N/A 1 COMMUNITY MEDICAL ASSOCIATES INC 224 E BROADWAY 5TH FLOOR LOUISVILLE KY 40202 611276316 OPERATES A NETWORK OF PHYSICIAN PRACTICES KY 501(C)3 9 N/A 1 NORTON PROPERTIES INC 224 E BROADWAY 5TH FLOOR LOUISVILLE KY 40202 611028724 MAINTAINS OFFICE AND PARKING FACILITIES KY 501(C)3 11A-TYPEI N/A 1 THE CHILDREN'S HOSPITAL FOUNDATION 224 E BROADWAY 5TH FLOOR LOUISVILLE KY 40202 616027530 GENERATE FUNDS TO SUPPORT PROGRAMS AND SERVICES KY 501(C)3 7 N/A 1 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 N/A 1 NORTON ENTERPRISES INC 224 E BROADWAY 5TH FLOOR LOUISVILLE KY 40202 611054301 PROVIDE NURSING AND PATHOLOGY SERVICES KY N/A C 33570138 27338805 1.00000 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1 1 NORTON ENTERPRISES INC Q 20518874 FMV NORTON ENTERPRISES INC R 21131324 FMV NORTON HOSPITALS INC Q 1155298131 FMV NORTON HOSPITALS INC R 1219597203 FMV COMMUNITY MEDICAL ASSOCIATES Q 177420528 FMV COMMUNITY MEDICAL ASSOCIATES R 146373903 FMV NORTON PROPERTIES INC Q 7992623 FMV NORTON PROPERTIES INC R 5422719 FMV THE CHILDREN'S HOSPITAL FOUNDATION INC Q 3527622 FMV THE CHILDREN'S HOSPITAL FOUNDATION INC R 3766562 FMV NORTON HEALTHCARE FOUNDATION INC Q 2027414 FMV NORTON HEALTHCARE FOUNDATION INC R 2002450 FMV FORM 990, SCHEDULE R, PART V, LINE 2: NORTON HEALTHCARE, INC. (NHI) OWNS 100% OF THE OUTSTANDING STOCK OF NORTON ENTERPRISES, INC. (NEI), A FOR-PROFIT CORPORATION. NHI PROCESSES ALL PAYROLL, ACCOUNTS PAYABLE TRANSACTIONS, AND PURCHASE ORDERS ON BEHALF OF NEI. THESE OPERATING EXPENSES ARE TRANSFERRED TO NEI THROUGH AN INTERCOMPANY TRANSFER AND ARE REPORTED WITH TRANSACTION TYPE Q. ALL OPERATING RECEIPTS OF NEI ARE TRANSFERRED TO NHI THROUGH AN INTERCOMPANY TRANSFER AND ARE REPORTED WITH TRANSACTION TYPE R. NORTON HEALTHCARE, INC. (NHI) PROCESSES ALL PAYROLL, ACCOUNTS PAYABLE TRANSACTIONS, AND PURCHASE ORDERS ON BEHALF OF ITS AFFILIATES (NORTON HOSPITALS, INC., COMMUNITY MEDICAL ASSOCIATES, NORTON PROPERTIES, INC., NORTON HEALTHCARE FOUNDATION, INC. AND THE CHILDREN'S HOSPITAL FOUNDATION) THESE OPERATING EXPENSES ARE TRANSFERRED TO THE AFFILIATES THROUGH AN INTERCOMPANY TRANSFER AND ARE REPORTED WITH TRANSACTION TYPE Q. ALL OPERATING RECEIPTS OF THE AFFILIATES ARE TRANSFERRED TO NHI THROUGH AN INTERCOMPANY TRANSFER AND ARE REPORTED WITH TRANSACTION TYPE R.