Form990
Click to see attachment
Department of the Treasury
Internal Revenue Service
Return of Organization Exempt From Income Tax
Under section 501(c), 527, or 4947(a)(1) of the Internal Revenue Code (except black lung benefit trust or private foundation)

MediumBullet The organization may have to use a copy of this return to satisfy state reporting requirements.
OMB No. 1545-0047
2010
Open to Public Inspection
A For the calendar year, or tax year beginning 01-01-2010 and ending 12-31-2010
BCheck if applicable:
CName of organization
NORTON HEALTHCARE INC
 
Doing Business As
 
 
Number and street (or P.O. box if mail is not delivered to street address)
224 E BROADWAY - 5TH FLOOR
 
Room/suite
City or town, state or country, and ZIP + 4
LOUISVILLE, KY40202
D Employer identification number

61-1028725
E Telephone number

G Gross receipts $ 306,511,917
F Name and address of principal officer:
STEPHEN A WILLIAMS
234 E GARY ST STE 225
LOUISVILLE,KY40202
I
Tax-exempt status: (   ) LeftBullet (insert no.) or
J
Website:MediumBullet
WWW.NORTONHEALTHCARE.COM
H(a)
Is this a group return for
affiliates?
H(b)
Are all affiliates included?
If "No," attach a list. (see instructions)
H(c)
Group exemption number MediumBullet  
K Form of organization:
 
L Year of formation: 1983
M State of legal domicile: KY
Part I
Summary
Activities & Governance 1 Briefly describe the organization’s mission or most significant activities: ASSIST ITS TAX EXEMPT AFFILIATED ENTITIES IN CARRYING OUT THEIR HEALTHCARE AND CHARITABLE PURPOSES.
2 Check this box MediumBullet
3 Number of voting members of the governing body (Part VI, line 1a) .... 3 22
4 Number of independent voting members of the governing body (Part VI, line 1b) .... 4 19
5 Total number of individuals employed in calendar year 2010 (Part V, line 2a) ... 5 1,386
6 Total number of volunteers (estimate if necessary) .... 6 22
7a Total unrelated business revenue from Part VIII, column (C), line 12 .. 7a 0
b Net unrelated business taxable income from Form 990-T, line 34 .. 7b 0
Revenues; Prior Year Current Year
8 Contributions and grants (Part VIII, line 1h) ......... 616,143 858,007
9 Program service revenue (Part VIII, line 2g) ......... 146,384,537 154,251,572
10 Investment income (Part VIII, column (A), lines 3, 4, and 7d ) .... 541,108 15,486,421
11 Other revenue (Part VIII, column (A), lines 5, 6d, 8c, 9c, 10c, and 11e) -60,880 13,898,067
12 Total revenue—add lines 8 through 11 (must equal Part VIII, column (A), line 12)................... 147,480,908 184,494,067
Expenses; 13 Grants and similar amounts paid (Part IX, column (A), lines 1–3 )... 3,195,692 2,419,994
14 Benefits paid to or for members (Part IX, column (A), line 4) .... 0 0
15 Salaries, other compensation, employee benefits (Part IX, column (A), lines 5–10) 80,374,950 82,510,670
16a Professional fundraising fees (Part IX, column (A), line 11e).... 0 0
b Total fundraising expenses (Part IX, column (D), line 25) MediumBullet0    
17 Other expenses (Part IX, column (A), lines 11a–11d, 11f–24f).... 85,524,112 85,191,163
18 Total expenses. Add lines 13–17 (must equal Part IX, column (A), line 25) 169,094,754 170,121,827
19 Revenue less expenses. Subtract line 18 from line 12...... -21,613,846 14,372,240
Net Assets or Fund Balances; Beginning of Current Year End of Year
20 Total assets (Part X, line 16)............ 761,341,822 792,733,695
21 Total liabilities (Part X, line 26)............ 938,893,131 947,079,983
22 Net assets or fund balances. Subtract line 21 from line 20 ..... -177,551,309 -154,346,288
Part II
Signature Block
Under penalties of perjury, I declare that I have examined this return, including accompanying schedules and statements, and to the best of my knowledge and belief, it is true, correct, and complete. Declaration of preparer (other than officer) is based on all information of which preparer has any knowledge.
Sign Here
JumboBullet
Signature of officer Date
JumboBullet
Type or print name and title.
Paid Preparer's Use Only Preparer's
signatureBig Right Arrow 		Date
right pointing bullet image Preparer’s taxpayer identification number
(see instructions)
Firm’s name (or yours
if self-employed),
address, and ZIP + 4Big Right Arrow




 		EIN right pointing bullet image
Phone no. right pointing bullet image
May the IRS discuss this return with the preparer shown above? (see instructions) .........
For Privacy Act and Paperwork Reduction Act Notice, see the separate instructions.
Cat. No. 11282Y
Form 990 (2010)
Form 990 (2010)
Page 2
Part III
Statement of Program Service Accomplishments
Check if Schedule O contains a response to any question in this Part III . . . . . . . . . .
1
Briefly describe the organization’s mission: SEE SCHEDULE O
2
Did the organization undertake any significant program services during the year which were not listed on
the prior Form 990 or 990-EZ? ....................
If “Yes,” describe these new services on Schedule O.
3
Did the organization cease conducting, or make significant changes in how it conducts, any program services? ..........................
If “Yes,” describe these changes on Schedule O.
4
Describe the exempt purpose achievements for each of the organization’s three largest program services by expenses.
Section 501(c)(3) and 501(c)(4) organizations and section 4947(a)(1) trusts are required to report the amount of grants and allocations to others, the total expenses, and revenue, if any, for each program service reported.
4a (Code:   ) (Expenses $ 129,367,797 including grants of $ 2,419,994 ) (Revenue $ 167,731,963 )
SEE SCHEDULE O
4b (Code:   ) (Expenses $   including grants of $   ) (Revenue $   )
4c (Code:   ) (Expenses $   including grants of $   ) (Revenue $   )
4d Other program services. (Describe in Schedule O.)
(Expenses $   including grants of $   ) (Revenue $   )
4e Total program service expensesMediumBullet$ 129,367,797
Form 990 (2010)
Form 990 (2010)
Page 3
Part IV
Checklist of Required Schedules
Yes
No
1
Is the organization described in section 501(c)(3) or 4947(a)(1) (other than a private foundation)? If “Yes,” complete Schedule AClick to see attachment.....................
1
Yes
 
2
Is the organization required to complete Schedule B, Schedule of Contributors? Click to see attachment........
2
Yes
 
3
Did the organization engage in direct or indirect political campaign activities on behalf of or in opposition to candidates for public office? If “Yes,” complete Schedule C, Part IClick to see attachment..........
3
 
No
4
Section 501(c)(3) organizations. Did the organization engage in lobbying activities? If “Yes,” complete Schedule C,
Part IIClick to see attachment.........................
4
Yes
 
5
Is the organization a section 501(c)(4), 501(c)(5), or 501(c)(6) organization that receives membership dues, assessments, or similar amounts as defined in Revenue Procedure 98-19? If “Yes,” complete Schedule C, Part IIIClick to see attachment........................
5
 
No
6
Did the organization maintain any donor advised funds or any similar funds or accounts where donors have the right to provide advice on the distribution or investment of amounts in such funds or accounts? If “Yes,” complete
Schedule D, Part IClick to see attachment.......................
6
 
No
7
Did the organization receive or hold a conservation easement, including easements to preserve open space,
the environment, historic land areas or historic structures? If “Yes,” complete Schedule D, Part IIClick to see attachment...
7
 
No
8
Did the organization maintain collections of works of art, historical treasures, or other similar assets? If “Yes,” complete Schedule D, Part III Click to see attachment....................
8
 
No
9
Did the organization report an amount in Part X, line 21; serve as a custodian for amounts not listed in Part X; or provide credit counseling, debt management, credit repair, or debt negotiation services? If “Yes,”
complete Schedule D, Part IVClick to see attachment...................
9
Yes
 
10
Did the organization, directly or through a related organization, hold assets in term, permanent,or quasi-endowments? If “Yes,” complete Schedule D, Part VClick to see attachment
10
 
No
11
If the organization’s answer to any of the following questions is ‘Yes,’ then complete Schedule D, Parts VI, VII, VIII, IX, or X as applicable:
a
Did the organization report an amount for land, buildings, and equipment in Part X, line10? If “Yes,” complete Schedule D, Part VI.Click to see attachment
11a
Yes
 
b
Did the organization report an amount for investments—other securities in Part X, line 12 that is 5% or more of its total assets reported in Part X, line 16? If “Yes,” complete Schedule D, Part VII.Click to see attachment
11b
Yes
 
c
Did the organization report an amount for investments—program related in Part X, line 13 that is 5% or more of its total assets reported in Part X, line 16? If “Yes,” complete Schedule D, Part VIII.Click to see attachment
11c
 
No
d
Did the organization report an amount for other assets in Part X, line 15 that is 5% or more of its total assets reported in Part X, line 16? If “Yes,” complete Schedule D, Part IX.Click to see attachment
11d
Yes
 
e
Did the organization report an amount for other liabilities in Part X, line 25? If “Yes,” complete Schedule D, Part X.Click to see attachment
11e
Yes
 
f
Did the organization’s separate or consolidated financial statements for the tax year include a footnote that addresses the organization’s liability for uncertain tax positions under FIN 48 (ASC 740)? If “Yes,” complete Schedule D, Part X.Click to see attachment
11f
Yes
 
12a
Did the organization obtain separate, independent audited financial statements for the tax year? If “Yes,” complete Schedule D, Parts XI, XII, and XIII Click to see attachment
12a
 
No
b
Was the organization included in consolidated, independent audited financial statements for the tax year? If “Yes,” and if the organization answered ‘No’ to line 12a, then completing Schedule D, Parts XI, XII, and XIII is optional Click to see attachment
12b
Yes
 
13
Is the organization a school described in section 170(b)(1)(A)(ii)? If “Yes,” complete Schedule E
13
 
No
14a
Did the organization maintain an office, employees, or agents outside of the United States?....
14a
 
No
b
Did the organization have aggregate revenues or expenses of more than $10,000 from grantmaking, fundraising, business, and program service activities outside the United States? If “Yes,” complete Schedule F, Part I......... Click to see attachment
14b
Yes
 
15
Did the organization report on Part IX, column (A), line 3, more than $5,000 of grants or assistance to any organization or entity located outside the U.S.? If “Yes,” complete Schedule F, Part II.. Click to see attachment
15
 
No
16
Did the organization report on Part IX, column (A), line 3, more than $5,000 of aggregate grants or assistance to individuals located outside the U.S.? If “Yes,” complete Schedule F, Part III.. Click to see attachment
16
 
No
17
Did the organization report a total of more than $15,000, of expenses for professional fundraising services on Part IX, column (A), lines 6 and 11e? If “Yes,” complete Schedule G, Part I
17
 
No
18
Did the organization report more than $15,000 total of fundraising event gross income and contributions on Part VIII, lines 1c and 8a? If “Yes,” complete Schedule G, Part II..........
18
 
No
19
Did the organization report more than $15,000 of gross income from gaming activities on Part VIII, line 9a? If “Yes,” complete Schedule G, Part III...................
19
 
No
Form 990 (2010)
Form 990 (2010)
Page 4
Part IV
Checklist of Required Schedules (continued)
20a
Did the organization operate one or more hospitals? If “Yes,” complete Schedule H.....
20a
 
No
b
Did the organization attach its audited financial statement to this return? Note: All Form 990 filers that operate one or more hospitals must attach audited financial statements. .....
20b
 
 
21
Did the organization report more than $5,000 of grants and other assistance to governments and organizations in the United States on Part IX, column (A), line 1? If “Yes,” complete Schedule I, Parts I and II.. Click to see attachment
21
Yes
 
22
Did the organization report more than $5,000 of grants and other assistance to individuals in the United States on Part IX, column (A), line 2? If “Yes,” complete Schedule I, Parts I and III..... Click to see attachment
22
Yes
 
23
Did the organization answer “Yes” to Part VII, Section A, questions 3, 4, or 5, about compensation of the organization’s current and former officers, directors, trustees, key employees, and highest compensated employees? If “Yes,” complete Schedule J................ Click to see attachment
23
Yes
 
24a
Did the organization have a tax-exempt bond issue with an outstanding principal amount of more than $100,000 as of the last day of the year, that was issued after December 31, 2002? If “Yes,” answer questions 24b–24d and complete Schedule K. If “No,” go to line 25................ Click to see attachment
24a
Yes
 
b
Did the organization invest any proceeds of tax-exempt bonds beyond a temporary period exception?...
24b
 
No
c
Did the organization maintain an escrow account other than a refunding escrow at any time during the year
to defease any tax-exempt bonds?......................
24c
Yes
 
d
Did the organization act as an “on behalf of” issuer for bonds outstanding at any time during the year?...
24d
 
No
25a
Section 501(c)(3) and 501(c)(4) organizations. Did the organization engage in an excess benefit transaction with a disqualified person during the year? If “Yes,” complete Schedule L, Part I...... Click to see attachment
25a
 
No
b
Is the organization aware that it engaged in an excess benefit transaction with a disqualified person in a prior year, and that the transaction has not been reported on any of the organization’s prior Forms 990 or 990-EZ? If “Yes,” complete Schedule L, Part I................ Click to see attachment
25b
 
No
26
Was a loan to or by a current or former officer, director, trustee, key employee, highly compensated employee, or disqualified person outstanding as of the end of the organization’s tax year? If “Yes,” complete Schedule L,
Part II........................... Click to see attachment
26
Yes
 
27
Did the organization provide a grant or other assistance to an officer, director, trustee, key employee, substantial contributor, or a grant selection committee member, or to a person related to such an individual? If “Yes,” complete Schedule L, Part III............... Click to see attachment
27
 
No
28
Was the organization a party to a business transaction with one of the following parties? (see Schedule L, Part IV instructions for applicable filing thresholds, conditions, and exceptions):
a
A current or former officer, director, trustee, or key employee? If “Yes,” complete Schedule L, Part IV ......................... Click to see attachment
28a
 
No
b
A family member of a current or former officer, director, trustee, or key employee? If “Yes,”
complete Schedule L, Part IV................... Click to see attachment
28b
 
No
c
An entity of which a current or former officer, director, trustee, or key employee (or a family member thereof) was an officer, director, trustee, or owner? If “Yes,” complete Schedule L, Part IV.. Click to see attachment
28c
Yes
 
29
Did the organization receive more than $25,000 in non-cash contributions? If “Yes,” complete Schedule M
29
 
No
30
Did the organization receive contributions of art, historical treasures, or other similar assets, or qualified conservation contributions? If “Yes,” complete Schedule M............
30
 
No
31
Did the organization liquidate, terminate, or dissolve and cease operations? If “Yes,” complete Schedule N,
Part I...........................
31
 
No
32
Did the organization sell, exchange, dispose of, or transfer more than 25% of its net assets? If “Yes,” complete Schedule N, Part II.......................
32
 
No
33
Did the organization own 100% of an entity disregarded as separate from the organization under Regulations sections 301.7701-2 and 301.7701-3? If “Yes,” complete Schedule R, Part I........ Click to see attachment
33
 
No
34
Was the organization related to any tax-exempt or taxable entity? If “Yes,” complete Schedule R, Parts II, III, IV, and V, line 1..................... Click to see attachment
34
Yes
 
35
Is any related organization a controlled entity within the meaning of section 512(b)(13)? .....
35
Yes
 
a
Did the organization receive any payment from or engage in any transaction with a controlled entity within the meaning of section 512(b)(13)? If “Yes,” complete Schedule R, Part V, line 2... Click to see attachment
36
Section 501(c)(3) organizations. Did the organization make any transfers to an exempt non-charitable related organization? If “Yes,” complete Schedule R, Part V, line 2........... Click to see attachment
36
 
No
37
Did the organization conduct more than 5% of its activities through an entity that is not a related organization and that is treated as a partnership for federal income tax purposes? If “Yes,” complete Schedule R, Part VIClick to see attachment
37
 
No
38
Did the organization complete Schedule O and provide explanations in Schedule O for Part VI, lines 11 and 19? Note. All Form 990 filers are required to complete Schedule O. ............
38
Yes
 
Form 990 (2010)
Form 990 (2010)
Page 5
Part V
Statements Regarding Other IRS Filings and Tax Compliance
Check if Schedule O contains a response to any question in this Part V . . . . . . . . . .
Yes
No
1a
Enter the number reported in Box 3 of Form 1096. Enter -0- if not applicable. .......
1a
494
b
Enter the number of Forms W-2G included in line 1a. Enter -0- if not applicable.
1b
0
c
Did the organization comply with backup withholding rules for reportable payments to vendors and reportable gaming (gambling) winnings to prize winners? ..................
1c
Yes
 
2a
Enter the number of employees reported on Form W-3, Transmittal of Wage and Tax Statements filed for the calendar year ending with or within the year covered by this return .....................
2a
1,386
b
If at least one is reported on line 2a, did the organization file all required federal employment tax returns?

Note. If the sum of lines 1a and 2a is greater than 250, you may be required to e-file. (see instructions)
2b
Yes
 
3a
Did the organization have unrelated business gross income of $1,000 or more during the year?.............................
3a
 
No
b
If “Yes,” has it filed a Form 990-T for this year? If “No,” provide an explanation in Schedule O.....
3b
 
 
4a
At any time during the calendar year, did the organization have an interest in, or a signature or other authority over, a financial account in a foreign country (such as a bank account or securities account)?.......................
4a
Yes
 
b
If "Yes," enter the name of the foreign country: MediumBulletSZ , SP , HK , MY , SN , UK , AS , BR , CA , NL
See instructions for filing requirements for Form TD F 90-22.1, Report of Foreign Bank and Financial Accounts.
5a
Was the organization a party to a prohibited tax shelter transaction at any time during the tax year?..
5a
 
No
b
Did any taxable party notify the organization that it was or is a party to a prohibited tax shelter transaction?
5b
 
No
c
If “Yes” to line 5a or 5b, did the organization file Form 8886-T? ........
5c
 
 
6a
Does the organization have annual gross receipts that are normally greater than $100,000, and did the organization solicit any contributions that were not tax deductible?..........
6a
 
No
b
If “Yes,” did the organization include with every solicitation an express statement that such contributions or gifts were not tax deductible?........................
6b
 
 
7
Organizations that may receive deductible contributions under section 170(c).
a
Did the organization receive a payment in excess of $75 made partly as a contribution and partly for goods and services provided to the payor?....................
7a
 
No
b
If “Yes,” did the organization notify the donor of the value of the goods or services provided?.....
7b
 
 
c
Did the organization sell, exchange, or otherwise dispose of tangible personal property for which it was required to file Form 8282?...........................
7c
 
No
d
If “Yes,” indicate the number of Forms 8282 filed during the year ....
7d
 
e
Did the organization receive any funds, directly or indirectly, to pay premiums on a personal benefit contract?..........................
7e
 
No
f
Did the organization, during the year, pay premiums, directly or indirectly, on a personal benefit contract?..
7f
 
No
g
If the organization received a contribution of qualified intellectual property, did the organization file Form 8899 as required?...................
7g
 
 
h
If the organization received a contribution of cars, boats, airplanes, or other vehicles, did the organization file a Form 1098-C?...............
7h
 
 
8
Sponsoring organizations maintaining donor advised funds and section 509(a)(3) supporting organizations. Did the supporting organization, or a donor advised fund maintained by a sponsoring organization, have excess business holdings at any time during the year?................
8
 
 
9
Sponsoring organizations maintaining donor advised funds.
a
Did the organization make any taxable distributions under section 4966?.........
9a
 
 
b
Did the organization make a distribution to a donor, donor advisor, or related person?......
9b
 
 
10
Section 501(c)(7) organizations. Enter:
a
Initiation fees and capital contributions included on Part VIII, line 12 ...
10a
 
b
Gross receipts, included on Form 990, Part VIII, line 12, for public use of club facilities
10b
 
11
Section 501(c)(12) organizations. Enter:
a
Gross income from members or shareholders .........
11a
 
b
Gross income from other sources (Do not net amounts due or paid to other sources against amounts due or received from them.) ........
11b
 
12a
Section 4947(a)(1) non-exempt charitable trusts. Is the organization filing Form 990 in lieu of Form 1041?
12a
 
 
b
If “Yes,” enter the amount of tax-exempt interest received or accrued during the year.
12b
 
13
Section 501(c)(29) qualified nonprofit health insurance issuers.
a
Is the organization licensed to issue qualified health plans in more than one state?
Note. All 501(c)(29) organizations must list in Schedule O each state in which they are licensed to issue qualified health plans, the amount of reserves required by each state, and the amount of reserves the organization allocated to each state.
13a
 
 
b
Enter the aggregate amount of reserves the organization is required to maintain by the states in which the organization is licensed to issue qualified health plans.
13b
 
c
Enter the aggregate amount of reserves on hand.
13c
 
14a
Did the organization receive any payments for indoor tanning services during the tax year?.....
14a
 
 
b
If "Yes," has it filed a Form 720 to report these payments? If “No,” provide an explanation in Schedule O..
14b
 
 
Form 990 (2010)
Form 990 (2010)
Page 6
Part VI
Governance, Management, and Disclosure For each “Yes” response to lines 2 through 7b below, and for a “No” response to lines 8a, 8b, or 10b below, describe the circumstances, processes, or changes in Schedule O. See instructions.
Check if Schedule O contains a response to any question in this Part VI . . . . . . . . . .
Section A. Governing Body and Management
Yes
No
1a
Enter the number of voting members of the governing body at the end of the tax year ..............
1a
22
b
Enter the number of voting members included in line 1a, above, who are independent .................
1b
19
2
Did any officer, director, trustee, or key employee have a family relationship or a business relationship with any other officer, director, trustee, or key employee? .................
2
Yes
 
3
Did the organization delegate control over management duties customarily performed by or under the direct supervision of officers, directors or trustees, or key employees to a management company or other person? ..
3
 
No
4
Did the organization make any significant changes to its governing documents since the prior Form 990 was filed?
4
 
No
5
Did the organization become aware during the year of a significant diversion of the organization’s assets? .
5
 
No
6
Does the organization have members or stockholders? ................
6
 
No
7a
Does the organization have members, stockholders, or other persons who may elect one or more members of the governing body? .........................
7a
 
No
b
Are any decisions of the governing body subject to approval by members, stockholders, or other persons? ..
7b
 
No
8
Did the organization contemporaneously document the meetings held or written actions undertaken during the year by the following:
a
The governing body? .........................
8a
Yes
 
b
Each committee with authority to act on behalf of the governing body? ............
8b
Yes
 
9
Is there any officer, director, trustee, or key employee listed in Part VII, Section A, who cannot be reached at the organization’s mailing address? If “Yes,” provide the names and addresses in Schedule O .....
9
 
No
Section B. Policies (This Section B requests information about policies not required by the Internal
Revenue Code.)
Yes
No
10a
Does the organization have local chapters, branches, or affiliates? ............
10a
 
No
b
If “Yes,” does the organization have written policies and procedures governing the activities of such chapters, affiliates, and branches to ensure their operations are consistent with those of the organization? ....
10b
 
 
11a
Has the organization provided a copy of this Form 990 to all members of its governing body before filing the form?
11a
Yes
 
b
Describe in Schedule O the process, if any, used by the organization to review the Form 990. .....
12a
Does the organization have a written conflict of interest policy? If “No,” go to line 13.......
12a
Yes
 
b
Are officers, directors or trustees, and key employees required to disclose annually interests that could give rise to conflicts? ...........................
12b
Yes
 
c
Does the organization regularly and consistently monitor and enforce compliance with the policy? If “Yes,” describe in Schedule O how this is done ....................
12c
Yes
 
13
Does the organization have a written whistleblower policy? ...............
13
Yes
 
14
Does the organization have a written document retention and destruction policy? .........
14
Yes
 
15
Did the process for determining compensation of the following persons include a review and approval by independent persons, comparability data, and contemporaneous substantiation of the deliberation and decision?
a
The organization’s CEO, Executive Director, or top management official ...........
15a
Yes
 
b
Other officers or key employees of the organization ................
15b
Yes
 
If "Yes" to line a or b, describe the process in Schedule O. (See instructions.)
16a
Did the organization invest in, contribute assets to, or participate in a joint venture or similar arrangement with a taxable entity during the year? ......................
16a
 
No
b
If “Yes,” has the organization adopted a written policy or procedure requiring the organization to evaluate its participation in joint venture arrangements under applicable federal tax law, and taken steps to safeguard the organization’s exempt status with respect to such arrangements? ............
16b
 
 
Section C. Disclosure
17
List the States with which a copy of this Form 990 is required to be filedMediumBullet
18
Section 6104 requires an organization to make its Form 1023 (or 1024 if applicable), 990, and 990-T (501(c)(3)s only) available for public inspection. Indicate how you make these available. Check all that apply.
19
Describe in Schedule O whether (and if so, how), the organization makes its governing documents, conflict of interest policy, and financial statements available to the public.
20
State the name, physical address, and telephone number of the person who possesses the books and records of the organization: MediumBullet
HELENA SCHULZ
224 E BROADWAY - 5TH FLOOR
LOUISVILLE,KY402022025
(502) 629-8263
Form 990 (2010)
Form 990 (2010)
Page 7
Part VII
Compensation of Officers, Directors,Trustees, Key Employees, Highest Compensated Employees, and Independent Contractors
Check if Schedule O contains a response to any question in this Part VII . . . . . . . . . .
Section A. Officers, Directors, Trustees, Key Employees, and Highest Compensated Employees
1a Complete this table for all persons required to be listed. Report compensation for the calendar year ending with or within the organization’s tax year.
RoundBullet List all of the organization’s current officers, directors, trustees (whether individuals or organizations), regardless of amount
of compensation, and current key employees. Enter -0- in columns (D), (E), and (F) if no compensation was paid.

RoundBullet List all of the organization’s current key employees, if any. See instructions for definition of "key employee."
RoundBullet List the organization’s five current highest compensated employees (other than an officer, director, trustee or key employee)
who received reportable compensation (Box 5 of Form W-2 and/or Box 7 of Form 1099-MISC) of more than $100,000 from the
organization and any related organizations.

RoundBullet List all of the organization’s former officers, key employees, or highest compensated employees who received more than $100,000
of reportable compensation from the organization and any related organizations.

RoundBullet List all of the organization’s former directors or trustees that received, in the capacity as a former director or trustee of the
organization, more than $10,000 of reportable compensation from the organization and any related organizations.

List persons in the following order: individual trustees or directors; institutional trustees; officers; key employees; highest
compensated employees; and former such persons.
Check this box if neither the organization nor any related organizations compensated any current or former officer, director, or trustee.
(A)
Name and Title 		(B)
Average hours per week (describe hours for related organizations in Schedule O) 		(C)
Position (check all that apply) 		(D)
Reportable compensation from the organization (W- 2/1099-MISC) 		(E)
Reportable compensation from related organizations (W- 2/1099-MISC) 		(F)
Estimated amount of other compensation from the organization and related organizations
Individual Trustee or Director; Institutional Trustee; Officer; Key Employee; Highest compensated employee; Former;
(1) DONALD H ROBINSON
TRUSTEE (CHAIRMAN)
 10.00 X           0 0 0
(2) JOSEPH A PARADISIII
TRUSTEE (VICE CHAIRMAN)
 4.00 X           1,500 0 0
(3) CHERYL BALKENHOL
TRUSTEE
 1.00 X           0 0 0
(4) MARIA L BOUVETTE
TRUSTEE
 1.00 X           0 0 0
(5) ROBERT R GOODIN MD
TRUSTEE
 4.00 X           1,500 0 0
(6) CRAIG D GRANT
TRUSTEE
 1.00 X           1,500 0 0
(7) R K GUILLAUME
TRUSTEE
 3.00 X           1,500 0 0
(8) KEVIN J HABLE
TRUSTEE
 1.00 X           0 0 0
(9) MARIA GERWING HAMPTON
TRUSTEE
 2.00 X           1,500 0 0
(10) MARTHA HEYBURN MD
TRUSTEE
 1.00 X           1,500 0 0
(11) RONALD LEHOCKY MD
TRUSTEE
 1.00 X           1,500 0 0
(12) GREGORY E MAYES
TRUSTEE
 5.00 X           1,500 0 0
(13) MARY MOSELEY
TRUSTEE
 1.00 X           0 0 0
(14) MITCH NICHOLS
TRUSTEE
 1.00 X           0 0 0
(15) GAIL LYTTLE
TRUSTEE
 1.00 X           0 0 0
(16) G HUNT ROUNSAVALL
TRUSTEE
 3.00 X           0 0 0
(17) REV WILLIAM J SCHULTZ
TRUSTEE
 3.00 X           0 0 0
Form 990 (2010)
Form 990 (2010)
Page 8
Part VII
Section A. Officers, Directors, Trustees, Key Employees, and Highest Compensated Employees (continued)
(A)
Name and Title 		(B)
Average hours per week (describe hours for related organizations in Schedule O) 		(C)
Position (check all that apply) 		(D)
Reportable compensation from the organization (W- 2/1099-MISC) 		(E)
Reportable compensation from related organizations (W- 2/1099-MISC) 		(F)
Estimated amount of other compensation from the organization and related organizations
Individual Trustee or Director; Institutional Trustee; Officer; Key Employee; Highest compensated employee; Former;
(18) WENDELL P WRIGHT
TRUSTEE EX-OFFICIO
 1.00 X           1,500 0 0
(19) STEPHEN A WILLIAMS
PRESIDENT/TRUSTEE
 30.00 X   X       1,908,292 0 298,109
(20) GARY L STEWART
TRUSTEE
 1.00 X           1,818 0 0
(21) CAROLYN J GATZ
TRUSTEE
 1.00 X           1,500 0 0
(22) RICHARD S WOLF
TRUSTEE
 1.00 X           0 0 0
(23) RUSSELL F COX
VICE PRESIDENT
 30.00     X       1,087,174 0 199,165
(24) MICHAEL W GOUGH
TREASURER
 30.00     X       918,325 0 170,550
(25) ROBERT B AZAR
SECRETARY
 30.00     X       483,151 0 86,735
(26) STEVEN HESTER
SENIOR VP, CMO
 50.00       X     679,378 0 137,287
(27) TRACY WILLIAMS
SENIOR V P, CNO
 50.00       X     437,141 0 86,197
(28) RICHARD CARRICO
VP & ASSOCIATE CFO
 50.00       X     449,994 0 93,917
(29) JOSEPH DEVENUTO
VICE PRESIDENT/CIO
 50.00       X     461,350 0 272,013
(30) SCOTT WATKINS
VP OPER & EXEC DIR OP SERV
 50.00       X     395,915 0 81,544
(31) MICHAEL ESPOSITO
VP BUSINESS DEV & EXEC DIR
 50.00       X     388,680 0 79,554
(32) CHARLES BOHN
VP HUMAN RESOURCES
 50.00       X     390,755 0 82,363
(33) MARY JO BEAN
VP BUSINESS DEV & EXEC DIR
 50.00       X     407,865 0 56,290
(34) DANA ALLEN
VP CHIEF MARKETING OFFICER
 50.00       X     285,449 0 49,637
(35) MARY CORBETT
VP HEALTH POLICY & GOVERNMT
 50.00       X     284,915 0 52,820
(36) JIM MEYERS
VP REVENUE CYCLE
 50.00       X     219,826 0 35,200
(37) STEVE READY
VP INFORMATION SERVICES
 50.00       X     254,595 0 36,287
(38) JON COOPER
VP SURGICAL SERVICES
 50.00         X   307,465 0 62,566
(39) KIMBERLY THARP-BARRIE
VP INSTITUE OF NURSING/WFD
 50.00         X   306,255 0 53,216
(40) STEVE HEILMAN MD
CHIEF MEDICAL INFOMATION
 50.00         X   340,644 0 42,570
(41) STEVE MENAUGH
VP PR & COMMUNICATIONS
 50.00         X   302,439 0 64,181
(42) KENNETH WILSON MD
VP CLINICAL EFFECTIVENESS
 50.00         X   334,788 0 41,975
(43) GREGG DAVIS
FORMER VP ORTHO,NEUROSPINE
 50.00           X 228,473 0 31,026
(44) JAMES PAROBEK
FORMER VP ANCILLARY SERVS
 50.00           X 178,348 0 12,331
(45) KAREN BOLIN
FORMER VP WOMEN'S SERVICES
 50.00           X 267,483 0 38,770
1b Sub-Total................MediumBullet
c Total from continuation sheets to Part VII, Section A....MediumBullet
d Total (add lines 1b and 1c)............MediumBullet 11,335,518 0 2,164,303
2
Total number of individuals (including but not limited to those listed above) who received more than $100,000 in reportable compensation from the organizationMediumBullet120
Yes
No
3
Did the organization list any former officer, director or trustee, key employee, or highest compensated employee on line 1a? If “Yes,” complete Schedule J for such individual .............
3
Yes
 
4
For any individual listed on line 1a, is the sum of reportable compensation and other compensation from the organization and related organizations greater than $150,000? If “Yes,” complete Schedule J for such individual...........................
4
Yes
 
5
Did any person listed on line 1a receive or accrue compensation from any unrelated organization or individual for services rendered to the organization? If “Yes,” complete Schedule J for such person .....
5
 
No
Section B. Independent Contractors
1
Complete this table for your five highest compensated independent contractors that received more than $100,000 of compensation from the organization.
(A)
Name and business address 		(B)
Description of services 		(C)
Compensation
LOCKTON COMPANIES LLC
P O BOX 802702
KANSAS CITY,MO64180 		INSURANCE CONSULT & BROKER 6,485,978
FTI CONSULTING INC
P O BOX 418005
BOSTON,MA02241 		PROFESSIONAL SERVICES 3,624,361
MEDASSIST INC
6455 RELIABLE PKWY
CHICAGO,IL60686 		PROFESSIONAL SERVICES 3,595,084
EMC CORPORATION
4246 COLLECTIONS CTR DR
CHICAGO,IL60693 		IS SOFTWARE MAINTENANCE 3,580,919
MESSER CONSTRUCTION CO
5158 FISHWICK DR
CINCINNATI,OH45216 		CONSTRUCTION AND REPAIRS 3,543,109
2
Total number of independent contractors (including but not limited to those listed above) who received more than $100,000 in compensation from the organization MediumBullet98
Form 990 (2010)
Form 990 (2010)
Page 9
Part VIII
Statement of Revenue
(A)
Total revenue 		(B)
Related or
exempt
function
revenue 		(C)
Unrelated
business
revenue 		(D)
Revenue
excluded from
tax under sections
512, 513, or 514
Contributions, gifts, grants and other similar amounts 1a Federated campaigns..1a  
b Membership dues....1b  
c Fundraising events....1c  
d Related organizations...1d 802,303
e Government grants (contributions)1e 55,704
f All other contributions, gifts, grants, and
similar amounts not included above1f 		 
g Noncash contributions included in lines 1a-1f:$  
h Total. Add lines 1a-1f.......MediumBullet 858,007
Program Service Revenue Business Code
2a MANAGEMENT FEE ALLOCAT 900,099 148,045,757 148,045,757    
b CENTRAL SERVICE ALLOCA 900,099 2,781,787 2,781,787    
c INSURANCE ALLOCATION 900,099 2,513,361 2,513,361    
d CLINICAL RESEARCH TRIA 900,099 829,706 829,706    
e EDUCATION PROGRAMS 900,099 80,961 80,961    
f All other program service revenue .        
g Total. Add lines 2a–2f........MediumBullet 154,251,572
Other Revenue 3 Investment income (including dividends, interest
and other similar amounts).....MediumBullet 8,179,760     8,179,760
4 Income from investment of tax-exempt bond proceeds..MediumBullet 2,117,881     2,117,881
5 Royalties............MediumBullet        
(i) Real (ii) Personal
6a Gross Rents 242,076  
b Less: rental expenses    
c Rental income or (loss) 242,076  
d Net rental income or (loss).......MediumBullet 242,076     242,076
(i) Securities (ii) Other
7a Gross amount from sales of assets other than inventory 127,206,630  
b Less: cost or other basis and sales expenses 122,017,850  
c Gain or (loss) 5,188,780  
d Net gain or (loss)..........MediumBullet 5,188,780     5,188,780
8a Gross income from fundraising events (not including
$  
of contributions reported on line 1c). See Part IV, line 18 ...
a  
b Less: direct expenses ...b  
c Net income or (loss) from fundraising events..MediumBullet      
9a Gross income from gaming activities.
See Part IV, line 19 ...
a  
b Less: direct expenses ...b  
c Net income or (loss) from gaming activities...MediumBullet        
10a Gross sales of inventory, less
returns and allowances .
a  
b Less: cost of goods sold ..b  
c Net income or (loss) from sales of inventory..MediumBullet        
Miscellaneous Revenue Business Code
11a FLOOD LOSS REIMBURSE 900,099 12,642,005 12,642,005    
b MISCELLANEOUS INCOME 900,099 308,089 308,089    
c FITNESS CENTER INCOME 900,099 175,600     175,600
d All other revenue .... 530,297 530,297    
e Total. Add lines 11a–11d ......MediumBullet 13,655,991
12 Total revenue. See Instructions....MediumBullet 184,494,067 167,731,963 0 15,904,097
Form 990 (2010)
Form 990 (2010)
Page 10
Part IX
Statement of Functional Expenses
Section 501(c)(3) and 501(c)(4) organizations must complete all columns. All other organizations must complete column (A) but are not required to complete columns (B), (C), and (D).
Do not include amounts reported on lines 6b,
7b, 8b, 9b, and 10b of Part VIII. 		(A)
Total expenses 		(B)
Program service expenses 		(C)
Management and general expenses 		(D)
Fundraising expenses
1 Grants and other assistance to governments and organizations in the U.S. See Part IV, line 21 1,499,580 1,499,580
2 Grants and other assistance to individuals in the U.S. See Part IV, line 22 920,414 920,414
3 Grants and other assistance to governments, organizations, and individuals outside the U.S. See Part IV, lines 15 and 16    
4 Benefits paid to or for members    
5 Compensation of current officers, directors, trustees, and key employees .... 9,885,065 5,360,604 4,524,461  
6 Compensation not included above, to disqualified persons (as defined under section 4958(f)(1)) and persons described in section 4958(c)(3)(B) ....        
7 Other salaries and wages 57,148,972 49,414,685 7,734,287  
8 Pension plan contributions (include section 401(k) and section 403(b) employer contributions) .... 2,265,462 2,159,292 106,170  
9 Other employee benefits ....... 7,131,543 6,834,053 297,490  
10 Payroll taxes ........... 6,079,628 5,320,997 758,631  
11 Fees for services (non-employees):        
a Management ......        
b Legal ......... 1,609,692 1,479,364 130,328  
c Accounting ........... 506,500 202,600 303,900  
d Lobbying ........... 218,750 87,500 131,250  
e Professional fundraising. See Part IV, line 17..    
f Investment management fees ...... 1,141,699   1,141,699  
g Other .......... 35,819,638 23,903,425 11,916,213  
12 Advertising and promotion ....        
13 Office expenses ....... 1,898,692 1,834,630 64,062  
14 Information technology ......        
15 Royalties ..        
16 Occupancy ........... 5,484,534 4,506,185 978,349  
17 Travel ............ 1,198,466 1,001,547 196,919  
18 Payments of travel or entertainment expenses for any federal, state, or local public officials ......        
19 Conferences, conventions, and meetings ....        
20 Interest ........... 31,830,178   31,830,178  
21 Payments to affiliates .......        
22 Depreciation, depletion, and amortization ..... 16,571,642 750,695 15,820,947  
23 Insurance .............. 102,455 92,210 10,245  
24 Other expenses. Itemize expenses not covered above. (Expenses grouped together and labeled miscellaneous may not exceed 5% of total expenses shown on line 25 below.)
a EQUIPMENT RENTAL & REPA 23,825,007 21,990,905 1,834,102  
b SPONSORSHIPS 935,755 771,438 164,317  
c RECRUITMENT 798,183 718,980 79,203  
d DUES & SUBSCRIPTIONS 692,663 518,693 173,970  
e INTEREST ALLOCATION -37,770,726   -37,770,726  
f All other expenses 328,035   328,035  
25 Total functional expenses. Add lines 1 through 24f 170,121,827 129,367,797 40,754,030 0
26 Joint costs. Check here MediumBullet if following
SOP 98-2 (ASC 958-720). Complete this line only if the organization reported in column (B) joint costs from a combined educational campaign and fundraising solicitation 		       
Form 990 (2010)
Form 990 (2010)
Page 11
Part X Balance Sheet
(A)
Beginning of year 		(B)
End of year
Assets 1 Cash—non-interest-bearing .......... -10,516,767 1 -5,078,403
2 Savings and temporary cash investments ....... 175,414,287 2 180,461,800
3 Pledges and grants receivable, net .........   3  
4 Accounts receivable, net ......... 2,370,811 4 2,229,626
5 Receivables from current and former officers, directors, trustees, key employees, and highest compensated employees. Complete Part II of
Schedule L ..........   5  
6 Receivables from other disqualified persons (as defined under section 4958(f)(1)) and persons described in section 4958(c)(3)(B). Complete Part II of
Schedule L .......... 20,144 6 15,528
7 Notes and loans receivable, net .............   7  
8 Inventories for sale or use .............. 1,141,963 8 1,160,395
9 Prepaid expenses and deferred charges ............ 21,221,795 9 22,004,900
10a Land, buildings, and equipment: cost or other basis. Complete Part VI of Schedule D 10a 299,499,738
b Less: accumulated depreciation. ..... 10b 238,144,102 67,238,422 10c 61,355,636
11 Investments—publicly traded securities .......... 289,042,728 11 375,993,164
12 Investments—other securities. See Part IV, line 11 ...... 142,239,323 12 114,397,943
13 Investments—program-related. See Part IV, line 11 ..   13  
14 Intangible assets .........   14  
15 Other assets. See Part IV, line 11 ........... 73,169,116 15 40,193,106
16 Total assets. Add lines 1 through 15 (must equal line 34)... 761,341,822 16 792,733,695
Liabilities 17 Accounts payable and accrued expenses . 129,985,303 17 135,858,091
18 Grants payable .......... 5,499,704 18 3,922,896
19 Deferred revenue ..........   19  
20 Tax-exempt bond liabilities .......... 687,037,966 20 678,082,926
21 Escrow or custodial account liability. Complete Part IV of Schedule D.. 12,470,370 21 9,670,318
22 Payables to current and former officers, directors, trustees, key
employees, highest compensated employees, and disqualified
persons. Complete Part II of Schedule L..........   22  
23 Secured mortgages and notes payable to unrelated third parties ..   23  
24 Unsecured notes and loans payable to unrelated third parties ....   24  
25 Other liabilities. Complete Part X of Schedule D..... 103,899,788 25 119,545,752
26 Total liabilities. Add lines 17 through 25..... 938,893,131 26 947,079,983
Net Assets or Fund Balance Organizations that follow SFAS 117, check here MediumBullet and complete lines 27 through 29, and lines 33 and 34.
27 Unrestricted net assets ..... -177,748,713 27 -154,583,380
28 Temporarily restricted net assets ..... 197,404 28 237,092
29 Permanently restricted net assets .....   29  
Organizations that do not follow SFAS 117, check here MediumBullet and complete lines 30 through 34.
30 Capital stock or trust principal, or current funds .....   30  
31 Paid-in or capital surplus, or land, building or equipment fund .....   31  
32 Retained earnings, endowment, accumulated income, or other funds   32  
33 Total net assets or fund balances ..... -177,551,309 33 -154,346,288
34 Total liabilities and net assets/fund balances ..... 761,341,822 34 792,733,695
Form 990 (2010)
Form 990 (2010)
Page 12
Part XI
Reconcilliation of Net Assets
Check if Schedule O contains a response to any question in this Part XI . . . . . . . . . .
1
Total revenue (must equal Part VIII, column (A), line 12) . . .
1
184,494,067
2
Total expenses (must equal Part IX, column (A), line 25) . . . . .
2
170,121,827
3
Revenue less expenses. Subtract line 2 from line 1 . . . .
3
14,372,240
4
Net assets or fund balances at beginning of year (must equal Part X, line 33, column (A)) . .
4
-177,551,309
5
Other changes in net assets or fund balances (explain in Schedule O) . . . .
5
8,832,781
6
Net assets or fund balances at end of year. Combine lines 3, 4, and 5 (must equal Part X, line 33, column (B)) . . . . . .
6
-154,346,288
Part XII
Financial Statements and Reporting
Check if Schedule O contains a response to any question in this Part XII . . . . . . . . . .
Yes
No
1
Accounting method used to prepare the Form 990:  
If the organization changed its method of accounting from a prior year or checked "Other," explain in
Schedule O.
2a
Were the organization’s financial statements compiled or reviewed by an independent accountant?..
2a
 
No
b
Were the organization’s financial statements audited by an independent accountant?........
2b
Yes
 
c
If “Yes,” to 2a or 2b, does the organization have a committee that assumes responsibility for oversight of the audit, review, or compilation of its financial statements and selection of an independent accountant?
If the organization changed either its oversight process or selection process during the tax year, explain in Schedule O............................
2c
Yes
 
d
If “Yes” to line 2a or 2b, check a box below to indicate whether the financial statements for the year were issued on a separate basis, consolidated basis, or both:
3a
As a result of a federal award, was the organization required to undergo an audit or audits as set forth in the Single Audit Act and OMB Circular A-133? ................
3a
Yes
 
b
If “Yes,” did the organization undergo the required audit or audits? If the organization did not undergo the required audit or audits, explain why in Schedule O and describe any steps taken to undergo such audits. ..
3b
Yes
 
Form 990 (2010)
Additional Data


Software ID:  
Software Version:  
Form 990, Special Condition Description:
Special Condition Description
SCHEDULE A
(Form 990 or 990EZ)

Department of the Treasury
Internal Revenue Service
Public Charity Status and Public Support

Complete if the organization is a section 501(c)(3) organization or a section
4947(a)(1) nonexempt charitable trust.
right arrow Attach to Form 990 or Form 990-EZ. right arrow See separate instructions.
OMB No. 1545-0047
2010
Open to Public
Inspection
Name of the organization
NORTON HEALTHCARE INC
 
Employer identification number

61-1028725
Part I
Reason for Public Charity Status (All organizations must complete this part.) See instructions
The organization is not a private foundation because it is: (For lines 1 through 11, check only one box.)
1
2
3
4
5
section 170(b)(1)(A)(iv). (Complete Part II.)
6
7
8
9
receipts from activities related to its exempt functions—subject to certain exceptions, and (2) no more than 331/3% of
its support from gross investment income and unrelated business taxable income (less section 511 tax) from businesses
acquired by the organization after June 30, 1975. See section 509(a)(2). (Complete Part III.)
10
11
e
f
g
(i) a person who directly or indirectly controls, either alone or together with persons described in (ii)
Yes
No
and (iii) below, the governing body of the the supported organization? ................
11g(i)
 
No
(ii) a family member of a person described in (i) above? ......................
11g(ii)
 
No
(iii) a 35% controlled entity of a person described in (i) or (ii) above? ................
11g(iii)
 
No
h
(i)
Name of supported organization 		(ii)
EIN 		(iii)
Type of organization (described on lines 1- 9 above or IRC section (see instructions)) 		(iv)
Is the organization in col. (i) listed in your governing document? 		(v)
Did you notify the organization in col. (i) of your support? 		(vi)
Is the organization in col. (i) organized in the U.S.? 		(vii)
Amount of support?
Yes No Yes No Yes No
(1) NORTON HOSP INC
  		610703799 3 Yes   Yes   Yes   1,155,298,131
(2) COMMUNITY MED ASSOC INC
  		611276316 9 Yes   Yes   Yes   177,420,528
(3) NORTON PROP INC
  		611028724 11A-TYPE I Yes   Yes   Yes   7,992,623
(4) NORTON HLTH FOUNDATION
  		310914919 7 Yes   Yes   Yes   2,027,414
(5) CHILDREN'S HOSP FND
  		616027530 7 Yes   Yes   Yes   3,527,622
Total                 1,346,266,318

For Paperwork Reduction Act Notice, see the Instructions for Form 990.
Cat. No. 11285F
Schedule A (Form 990 or 990-EZ) 2010
Schedule A (Form 990 or 990-EZ) 2010
Page 2
Part II
Support Schedule for Organizations Described in IRC 170(b)(1)(A)(iv) and 170(b)(1)(A)(vi)
(Complete only if you checked the box on line 5, 7, or 8 of Part I or if the organization failed to qualify under Part III. If the organization fails to qualify under the tests listed below, please complete Part III.)
Section A. Public Support
Calendar year(or fiscal year beginning in) (a) 2006 (b) 2007 (c) 2008 (d) 2009 (e) 2010 (f) Total
1 Gifts, grants, contributions, and membership fees received. (Do not include any "unusual grants.") ....            
2 Tax revenues levied for the organization's benefit and either paid to or expended on its behalf.......            
3 The value of services or facilities furnished by a governmental unit to the organization without charge..            
4 Total. Add lines 1 through 3..            
5 The portion of total contributions by each person (other than a governmental unit or publicly supported organization) included on line 1 that exceeds 2% of the amount shown on line 11, column (f)..            
6 Public Support. Subtract line 5 from line 4.            
Section B. Total Support
Calendar year(or fiscal year beginning in) (a) 2006 (b) 2007 (c) 2008 (d) 2009 (e) 2010 (f) Total
7 Amounts from line 4..            
8 Gross income from interest, dividends, payments received on securities loans, rents, royalties and income from similar sources..            
9 Net income from unrelated business activities, whether or not the business is regularly carried on..            
10 Other income. (Explain in Part IV.) Do not include gain or loss from the sale of capital assets..            
11 Total support (Add lines 7 through 10).            
12
12
 
13
Section C. Computation of Public Support Percentage
14
14
 
15
15
 
16a
b
17a
b
18
Schedule A (Form 990 or 990-EZ) 2010
Schedule A (Form 990 or 990-EZ) 2010
Page 3
Part III
Support Schedule for Organizations Described in IRC 509(a)(2)
(Complete only if you checked the box on line 9 of Part I or if the organization failed to qualify under Part II. If the organization fails to qualify under the tests listed below, please complete Part II.)
Section A. Public Support
Calendar year(or fiscal year beginning in) (a) 2006 (b) 2007 (c) 2008 (d) 2009 (e) 2010 (f) Total
1 Gifts, grants, contributions, and membership fees received. (Do not include any "unusual grants.") .            
2 Gross receipts from admissions, merchandise sold or services performed, or facilities furnished in any activity that is related to the organization's tax-exempt purpose......            
3 Gross receipts from activities that are not an unrelated trade or business under section 513..            
4 Tax revenues levied for the organization's benefit and either paid to or expended on its behalf...            
5 The value of services or facilities furnished by a governmental unit to the organization without charge..            
6 Total. Add lines 1 through 5.            
7a Amounts included on lines 1, 2, and 3 received from disqualified persons...            
b Amounts included on lines 2 and 3 received from other than disqualified persons that exceed the greater of $5,000 or 1% of the amount on line 13 for the year.            
c Add lines 7a and 7b..            
8 Public Support (Subtract line 7c from line 6.)            
Section B. Total Support
Calendar year (or fiscal year beginning in) (a) 2006 (b) 2007 (c) 2008 (d) 2009 (e) 2010 (f) Total
9 Amounts from line 6...            
10a Gross income from interest, dividends, payments received on securities loans, rents, royalties and income from similar sources..            
b Unrelated business taxable income (less section 511 taxes) from businesses acquired after June 30, 1975.            
c Add lines 10a and 10b.            
11 Net income from unrelated business activities not included in line 10b, whether or not the business is regularly carried on.            
12 Other income. Do not include gain or loss from the sale of capital assets (Explain in Part IV.)            
13 Total support (Add lines 9, 10c, 11 and 12.).            
14
Section C. Computation of Public Support Percentage
15
15
 
16
16
 
Section D. Computation of Investment Income Percentage
17
17
 
18
18
 
19a
b
20
Schedule A (Form 990 or 990-EZ) 2010
Schedule A (Form 990 or 990-EZ) 2010
Page 4
Part IV
Supplemental Information. Supplemental Information. Complete this part to provide the explanation required by Part II, line 10; Part II, line 17a or 17b; or Part III, line 12. Also complete this part for any additional information. (See instructions).
Facts And Circumstances Test
 
Explanation
 
 
 
 
Schedule A (Form 990 or 990-EZ) 2010

Additional Data


Software ID:  
Software Version:  
Schedule B
(Form 990, 990-EZ,
or 990-PF)
Department of the Treasury
Internal Revenue Service
Schedule of Contributors
Arrow Bullet Attach to Form 990, 990-EZ, or 990-PF.
OMB No. 1545-0047
2010
Name of organization
NORTON HEALTHCARE INC
 
Employer identification number

61-1028725
Organization type (check one):
Filers of:
Section:
Form 990 or 990-EZ





Form 990-PF




Check if your organization is covered by the General Rule or a Special Rule.  
Note. Only a section 501(c)(7), (8), or (10) organization can check boxes for both the General Rule and a Special Rule. See instructions.
General Rule—
Special Rules
......................... Arrow Bullet   $    
Caution. An Organization that is not covered by the General Rule and/or the Special Rules does not file Schedule B (Form 990,
990-EZ, or 990-PF), but it must answer “No” on Part IV, line 2 of its Form 990, or check the box in the heading of its
Form 990-EZ, or on line 2 of its Form 990-PF, to certify that it does not meet the filing requirements of Schedule B (Form 990,
990-EZ, or 990-PF).
For Paperwork Reduction Act Notice, see the Instructions
for Form 990, 990-EZ, or 990-PF.
Cat. No. 30613XSchedule B (Form 990, 990-EZ, or 990-PF) (2010)

Schedule B (Form 990, 990-EZ, or 990-PF) (2010)
Page 1 of 1 of Part I
Name of organization
NORTON HEALTHCARE INC
  		Employer identification number

61-1028725
Part I
Contributors (see Instructions)
     
(a)
No.		 (b)
Name, address, and ZIP + 4		 (c)
Aggregate contributions		 (d)
Type of contribution
RESTRICTED
RESTRICTED
 

     
RESTRICTED
RESTRICTED  
RESTRICTED, RESTRICTED   RESTRICTED

$RESTRICTED




(Complete Part II if there is
a noncash contribution.)
(a)
No.		 (b)
Name, address, and ZIP + 4		 (c)
Aggregate contributions		 (d)
Type of contribution
 
 
 

     
 
   

$  




(Complete Part II if there is
a noncash contribution.)
(a)
No.		 (b)
Name, address, and ZIP + 4		 (c)
Aggregate contributions		 (d)
Type of contribution
 
 
 

     
 
   

$  




(Complete Part II if there is
a noncash contribution.)
(a)
No.		 (b)
Name, address, and ZIP + 4		 (c)
Aggregate contributions		 (d)
Type of contribution
 
 
 

     
 
   

$  




(Complete Part II if there is
a noncash contribution.)
(a)
No.		 (b)
Name, address, and ZIP + 4		 (c)
Aggregate contributions		 (d)
Type of contribution
 
 
 

     
 
   

$  




(Complete Part II if there is
a noncash contribution.)
(a)
No.		 (b)
Name, address, and ZIP + 4		 (c)
Aggregate contributions		 (d)
Type of contribution
 
 
 

     
 
   

$  




(Complete Part II if there is
a noncash contribution.)
Schedule B (Form 990, 990-EZ, or 990-PF) (2010)

Schedule B (Form 990, 990-EZ, or 990-PF) (2010)
Page 1 of 1 of Part II
Name of organization
NORTON HEALTHCARE INC
  		Employer identification number

61-1028725
Part II
Noncash Property (see Instructions)
     
(a) No.
from
Part I		 (b)
Description of noncash property given		 (c)
FMV (or estimate)
(see instructions) 		(d)
Date received
 
$    
(a) No.
from
Part I		 (b)
Description of noncash property given		 (c)
FMV (or estimate)
(see instructions) 		(d)
Date received
 
$    
(a) No.
from
Part I		 (b)
Description of noncash property given		 (c)
FMV (or estimate)
(see instructions) 		(d)
Date received
 
$    
(a) No.
from
Part I		 (b)
Description of noncash property given		 (c)
FMV (or estimate)
(see instructions) 		(d)
Date received
 
$    
(a) No.
from
Part I		 (b)
Description of noncash property given		 (c)
FMV (or estimate)
(see instructions) 		(d)
Date received
 
$    
(a) No.
from
Part I		 (b)
Description of noncash property given		 (c)
FMV (or estimate)
(see instructions) 		(d)
Date received
 
$    
Schedule B (Form 990, 990-EZ, or 990-PF) (2010)

Schedule B (Form 990, 990-EZ, or 990-PF) (2010)
Page 1 of 1 of Part III
Name of organization
NORTON HEALTHCARE INC
  		Employer identification number

61-1028725
Part III
Exclusively religious, charitable, etc., individual contributions to section 501(c)(7), (8), or (10) organizations
aggregating more than $1,000 for the year. (Complete columns (a) through (e) and the following line entry.)
For organizations completing Part III, enter the total of exclusively religious, charitable, etc.,
contributions of $1,000 or less for the year. (Enter this information once. See instructions.) Arrow Bullet $  
(a) No.
from
Part I		 (b)
Purpose of gift		 (c)
Use of gift		 (d)
Description of how gift is held
 
(e)
Transfer of gift
Transferee's name, address, and ZIP 4 Relationship of transferor to transferee
 
 
       
 
(a) No.
from
Part I		 (b)
Purpose of gift		 (c)
Use of gift		 (d)
Description of how gift is held
 
(e)
Transfer of gift
Transferee's name, address, and ZIP 4 Relationship of transferor to transferee
 
 
       
 
(a) No.
from
Part I		 (b)
Purpose of gift		 (c)
Use of gift		 (d)
Description of how gift is held
 
(e)
Transfer of gift
Transferee's name, address, and ZIP 4 Relationship of transferor to transferee
 
 
       
 
(a) No.
from
Part I		 (b)
Purpose of gift		 (c)
Use of gift		 (d)
Description of how gift is held
 
(e)
Transfer of gift
Transferee's name, address, and ZIP 4 Relationship of transferor to transferee
 
 
       
 
Schedule B (Form 990, 990-EZ, or 990-PF) (2010)

Additional Data


Software ID:  
Software Version:  
SCHEDULE C
(Form 990 or 990-EZ)

Department of the Treasury
Internal Revenue Service
Political Campaign and Lobbying Activities

For Organizations Exempt From Income Tax Under section 501(c) and section 527
SchCMd Bullet Complete if the organization is described below.
SchCMd Bullet Attach to Form 990 or Form 990-EZ. SchCMd Bullet See separate instructions.
OMB No. 1545-0047
2010
Open to Public
Inspection
If the organization answered “Yes,” to Form 990, Part IV, Line 3, or Form 990-EZ, Part V, line 46 (Political Campaign Activities), then
Round Bullet Section 501(c)(3) organizations: Complete Parts I-A and B. Do not complete Part I-C.
Round Bullet Section 501(c) (other than section 501(c)(3)) organizations: Complete Parts I-A and C below. Do not complete Part I-B.
Round Bullet Section 527 organizations: Complete Part I-A only.
If the organization answered “Yes,” to Form 990, Part IV, Line 4, or Form 990-EZ, Part VI, line 47 (Lobbying Activities), then
Round Bullet Section 501(c)(3) organizations that have filed Form 5768 (election under section 501(h)) Complete Part II-A. Do not complete Part II-B.
Round Bullet Section 501(c)(3) organizations that have NOT filed Form 5768 (election under section 501(h)): Complete Part II-B. Do not complete Part II-A.
If the organization answered “Yes,” to Form 990, Part IV, Line 5 (Proxy Tax) or Form 990-EZ, Part V, line 35a (Proxy Tax), then
Round Bullet Section 501(c)(4), (5), or (6) organizations: Complete Part III.
Name of the organization
NORTON HEALTHCARE INC
 
Employer identification number

61-1028725
Part I-A
Complete if the organization is exempt under section 501(c) or is a section 527 organization.

1
Provide a description of the organization's direct and indirect political campaign activities on behalf of or in opposition to candidates for public office in Part IV.
2
Political expenditures ....................................SchCMd Bullet
$  
3
Volunteer hours ........................................
 

Part I-B
Complete if the organization is exempt under section 501(c)(3).
1
Enter the amount of any excise tax incurred by the organization under section 4955 .........SchCMd Bullet
$  
2
Enter the amount of any excise tax incurred by organization managers under section 4955 ......SchCMd Bullet
$  
3
If the organization incurred a section 4955 tax, did it file Form 4720 for this year? ..............
4a
Was a correction made? .........................................
b
If "Yes," describe in Part IV.
Part I-C
Complete if the organization is exempt under section 501(c) except section 501(c)(3).
1
Enter the amount directly expended by the filing organization for section 527 exempt function activities SchCMd Bullet
$  
2
Enter the amount of the filing organization's funds contributed to other organizations for section 527 exempt funtion activities ....................................SchCMd Bullet

$  
3
Total exempt function expenditures. Add lines 1 and 2. Enter here and on Form 1120-POL, line 17b..SchCMd Bullet

$  
4
Did the filing organization file Form 1120-POL for this year? ..........................
5
Enter the names, addresses and employer identification number (EIN) of all section 527 political organizations to which the filing
organization made payments. For each organization listed, enter the amount paid from the filing organization’s funds. Also enter the amount of political contributions received that were promptly and directly delivered to a separate political organization, such as a separate segregated fund or a political action committee (PAC). If additional space is needed, provide information in Part IV.
(a) Name (b) Address (c) EIN (d) Amount paid from filing organization's funds. If none, enter -0-. (e) Amount of political contributions received and promptly and directly delivered to a separate political organization. If none, enter -0-.










For Privacy Act and Paperwork Reduction Act Notice, see the instructions for Form 990.
Cat. No. 50084S
Schedule C (Form 990 or 990-EZ) 2010

Schedule C (Form 990 or 990-EZ) 2010
Page 2
Part II-A
Complete if the organization is exempt under section 501(c)(3) and filed Form 5768 (election under section 501(h)).
A Check
B Check
Limits on Lobbying Expenditures
(The term "expenditures" means amounts paid or incurred.) 		(a) Filing
Organization's
Totals 		(b) Affiliated Group
Totals
1a Total lobbying expenditures to influence public opinion (grass roots lobbying) ......    
b Total lobbying expenditures to influence a legislative body (direct lobbying) .......    
c Total lobbying expenditures (add lines 1a and 1b) ...................    
d Other exempt purpose expenditures ........................    
e Total exempt purpose expenditures (add lines 1c and 1d) ...............    
f Lobbying nontaxable amount. Enter the amount from the following table in both
columns.		    
  If the amount on line 1e, column (a) or (b) is:The lobbying nontaxable amount is:    
  Not over $500,00020% of the amount on line 1e.    
  Over $500,000 but not over $1,000,000$100,000 plus 15% of the excess over $500,000.    
  Over $1,000,000 but not over $1,500,000$175,000 plus 10% of the excess over $1,000,000.    
  Over $1,500,000 but not over $17,000,000$225,000 plus 5% of the excess over $1,500,000.    
  Over $17,000,000$1,000,000.    
       
g Grassroots nontaxable amount (enter 25% of line 1f) .................    
h Subtract line 1g from line 1a. If zero or less, enter -0-. ................    
i Subtract line 1f from line 1c. If zero or less, enter -0-. ................    
j If there is an amount other than zero on either line 1h or line 1i, did the organization file Form 4720 reporting
section 4911 tax for this year? ......................................

4-Year Averaging Period Under Section 501(h)
(Some organizations that made a section 501(h) election do not have to complete all of the five
columns below. See the instructions for lines 2a through 2f on page 4.)
Lobbying Expenditures During 4-Year Averaging Period
  Calendar year (or fiscal year
beginning in) 		(a) 2007 (b) 2008 (c) 2009 (d) 2010 (e) Total
             
2a Lobbying non-taxable amount          
             
b Lobbying ceiling amount
(150% of line 2a, column(e)) 		         
             
c Total lobbying expenditures          
             
d Grassroots non-taxable amount          
             
e Grassroots ceiling amount
(150% of line 2d, column (e))		          
             
f Grassroots lobbying expenditures          
Schedule C (Form 990 or 990-EZ) 2010


Schedule C (Form 990 or 990-EZ) 2010
Page 3
Part II-B
Complete if the organization is exempt under section 501(c)(3) and has NOT filed Form 5768 (election under section 501(h)).
(a)
Yes
No
(b)
Amount
1
During the year, did the filing organization attempt to influence foreign, national, state or local legislation, including any attempt to influence public opinion on a legislative matter or referendum, through the use of:
a
Volunteers? .........................................
 
No
b
Paid staff or management (include compensation in expenses reported on lines 1c through 1i)? ....
 
No
c
Media advertisements? ....................................
 
No
 
d
Mailings to members, legislators, or the public? .........................
 
No
 
e
Publications, or published or broadcast statements? .......................
 
No
 
f
Grants to other organizations for lobbying purposes? .......................
 
No
 
g
Direct contact with legislators, their staffs, government officials, or a legislative body? ........
 
No
 
h
Rallies, demonstrations, seminars, conventions, speeches, lectures, or any similar means? ......
 
No
 
i
Other activities? If "Yes," describe in Part IV ..........................
Yes
 
218,750
j
Total. lines 1c through 1i ...................................
218,750
2a
Did the activities in line 1 cause the organization to be not described in section 501(c)(3)? .....
 
No
b
If "Yes," enter the amount of any tax incurred under section 4912 .................
 
c
If "Yes," enter the amount of any tax incurred by organization managers under section 4912 .....
 
d
If the filing organization incurred a section 4912 tax, did it file Form 4720 for this year? .......
 
 
Part III-A
Complete if the organization is exempt under section 501(c)(4), section 501(c)(5), or section 501(c)(6).
Yes
No
1
Were substantially all (90% or more) dues received nondeductible by members? ................
1
 
 
2
Did the organization make only in-house lobbying expenditures of $2,000 or less? ................
2
 
 
3
Did the organization agree to carryover lobbying and political expenditures from the prior year? ..........
3
 
 
Part III-B
Complete if the organization is exempt under section 501(c)(4), section 501(c)(5), or section 501(c)(6) if BOTH Part III-A, lines 1 and 2 are answered “No” OR if Part III-A, line 3 is answered “Yes”.
1
Dues, assessments and similar amounts from members .....................
1
 
2
Section 162(e) non-deductible lobbying and political expenditures (do not include amounts of political
expenses for which the section 527(f) tax was paid).
a
Current year .........................................
2a
 
b
Carryover from last year ....................................
2b
 
c
Total ...........................................
2c
 
3
Aggregate amount reported in section 6033(e)(1)(A) notices of nondeductible section 162(e) dues .
3
 
4
If notices were sent and the amount on line 2c exceeds the amount on line 3, what portion of the excess does the organization agree to carryover to the reasonable estimate of nondeductible lobbying and political expenditure next year? ................................
4
 
5
Taxable amount of lobbying and political expenditures (see instructions) ..............
5
 
Part IV
Supplemental Information
Complete this part to provide the descriptions required for Part l-A, line 1; Part l-B, line 4; Part l-C, line 5; and Part ll-B, line 1i.
Also, complete this part for any additional information.
Identifier Return Reference Explanation
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.
Schedule C (Form 990 or 990EZ) 2010

Additional Data


Software ID:  
Software Version:  

SCHEDULE D
(Form 990)
Department of the Treasury
Internal Revenue Service
Supplemental Financial Statements
SchDMd Bullet Complete if the organization answered "Yes," to Form 990,
Part IV, line 6, 7, 8, 9, 10, 11, or 12.
SchDMd Bullet Attach to Form 990. SchDMd Bullet See separate instructions.
OMB No. 1545-0047
2010
Open to Public Inspection
Name of the organization
NORTON HEALTHCARE INC
 
Employer identification number

61-1028725
Part I
Organizations Maintaining Donor Advised Funds or Other Similar Funds or Accounts. Complete if the organization answered "Yes" to Form 990, Part IV, line 6.
(a) Donor advised funds (b) Funds and other accounts
1 Total number at end of year .......    
2 Aggregate contributions to (during year) ...    
3 Aggregate grants from (during year) ...    
4 Aggregate value at end of year .......    
5
Did the organization inform all donors and donor advisors in writing that the assets held in donor advised
funds are the organization's property, subject to the organization's exclusive legal control? ............
6
Did the organization inform all grantees, donors, and donor advisors in writing that grant funds may be
used only for charitable purposes and not for the benefit of the donor or donor advisor, or for any other purpose conferring impermissible private benefit. ...................................
Part II
Conservation Easements. Complete if the organization answered "Yes" to Form 990, Part IV, line 7.
1
Purpose(s) of conservation easements held by the organization (check all that apply).
2
Complete lines 2a–2d if the organization held a qualified conservation contribution in the form of a conservation easement on the last day of the tax year.
Held at the End of the Year
a Total number of conservation easements ....................... 2a  
b Total acreage restricted by conservation easements .................. 2b  
c Number of conservation easements on a certified historic structure included in (a) ..... 2c  
d Number of conservation easements included in (c) acquired after 8/17/06 ........ 2d  
3
Number of conservation easements modified, transferred, released, extinguished, or terminated by the organization during
the taxable year SchDMd Bullet  
4
Number of states where property subject to conservation easement is located SchDMd Bullet  
5
Does the organization have a written policy regarding the periodic monitoring, inspection, handling of violations, and
enforcement of the conservation easements it holds? .............................
6
Staff and volunteer hours devoted to monitoring, inspecting and enforcing conservation easements during the year SchDMd Bullet  
7
Amount of expenses incurred in monitoring, inspecting, and enforcing conservation easements during the year SchDMd Bullet $  
8
Does each conservation easement reported on line 2(d) above satisfy the requirements of section
170(h)(4)(B)(i) and 170(h)(4)(B)(ii)? ....................................
9
In Part XIV, describe how the organization reports conservation easements in its revenue and expense statement, and
balance sheet, and include, if applicable, the text of the footnote to the organization’s financial statements that describes
the organization’s accounting for conservation easements.
Part III
Organizations Maintaining Collections of Art, Historical Treasures, or Other Similar Assets.
Complete if the organization answered "Yes" to Form 990, Part IV, line 8.
1a
If the organization elected, as permitted under SFAS 116, not to report in its revenue statement and balance sheet works of
art, historical treasures, or other similar assets held for public exhibition, education or research in furtherance of public service,
provide, in Part XIV, the text of the footnote to its financial statements that describes these items.
b
If the organization elected, as permitted under SFAS 116, to report in its revenue statement and balance sheet works of art,
historical treasures, or other similar assets held for public exhibition, education, or research in furtherance of public service,
provide the following amounts relating to these items:
(i)
Revenues included in Form 990, Part VIII, line 1 ........................SchDMd Bullet $  
(ii)
Assets included in Form 990, Part X ..............................SchDMd Bullet $  
2
If the organization received or held works of art, historical treasures, or other similar assets for financial gain, provide the
following amounts required to be reported under SFAS 116 relating to these items:
a
Revenues included in Form 990, Part VIII, line 1 ..........................SchDMd Bullet $  
b
Assets included in Form 990, Part X ...............................SchDMd Bullet $  
For Privacy Act and Paperwork Reduction Act Notice, see the Intructions for Form 990
Cat. No. 52283D
Schedule D (Form 990) 2010

Schedule D (Form 990) 2010
Page 2
Part III
Organizations Maintaining Collections of Art, Historical Treasures, or Other Similar Assets (continued)
3
Using the organization’s accession and other records, check any of the following that are a significant use of its collection
items (check all that apply):
a
d
b
e
 
c
4
Provide a description of the organization’s collections and explain how they further the organization’s exempt purpose in
Part XIV.
5
During the year, did the organization solicit or receive donations of art, historical treasures or other similar
assets to be sold to raise funds rather than to be maintained as part of the organization’s collection?........
Part IV
Escrow and Custodial Arrangements. Complete if the organization answered "Yes" to Form 990,
Part IV, line 9, or reported an amount on Form 990, Part X, line 21.
1a
Is the organization an agent, trustee, custodian or other intermediary for contributions or other assets not
included on Form 990, Part X? ....................................
b
If "Yes," explain the arrangement in Part XIV and complete the following table:
Amount
c Beginning balance ................................. 1c  
d Additions during the year .............................. 1d  
e Distributions during the year ............................. 1e  
f Ending balance ................................... 1f  
2a
Did the organization include an amount on Form 990, Part X, line 21? .....................
b
If “Yes,” explain the arrangement in Part XIV.
Part V
Endowment Funds. Complete if the organization answered "Yes" to Form 990, Part IV, line 10.
(a)Current Year (b)Prior Year (c)Two Years Back (d)Three Years Back (e)Four Years Back
1a Beginning of year balance ....      
b Contributions ........      
c Investment earnings or losses ...      
d Grants or scholarships .....      
e Other expenditures for facilities
and programs ........ 		     
f Administrative expenses ....      
g End of year balance ......      
2
Provide the estimated percentage of the year end balance held as:
a
Board designated or quasi-endowment: SchDMd Bullet  
b
Permanent endowment: SchDMd Bullet  
c
Term endowment: SchDMd Bullet  
3a
Are there endowment funds not in the possession of the organization that are held and administered for the
organization by:

Yes
No
(i) unrelated organizations ........................
3a(i)
 
 
(ii) related organizations ........................
3a(ii)
 
 
b
If "Yes" to 3a(ii), are the related organizations listed as required on Schedule R? .........
3b
 
 
4
Describe in Part XIV the intended uses of the organization's endowment funds.
Part VI
Investments—Land, Buildings, and Equipment. See Form 990, Part X, line 10.
Description of investment (a) Cost or other basis (investment) (b)Cost or other basis (other) (c) Accumulated depreciation (d) Book value
1a Land .................   2,115,807 2,115,807
b Buildings ................   38,765,230 28,923,413 9,841,817
c Leasehold improvements ............        
d Equipment ................   227,908,589 208,600,302 19,308,287
e Other .................   30,710,112 620,387 30,089,725
Total. Add lines 1a-1e. (Column (d) should equal Form 990, Part X, column (B), line 10(c).)........SchDMdBullet 61,355,636
Schedule D (Form 990) 2010

Schedule D (Form 990) 2010
Page 3
Part VII
Investments—Other Securities. See Form 990, Part X, line 12.
(a) Description of security or category
(including name of security)		 (b)Book value (c) Method of valuation:
Cost or end-of-year market value
(1)Financial derivatives    
(2)Closely-held equity interests    
(3)Other
(A) ALTERNATIVE INVESTMENT MASTER TRUST UNITS 		74,813,910 F

(B) REAL ESTATE MASTER TRUST UNITS 		29,913,715 F

(C) SECURITIES LENDING COLLATERAL 		9,670,318 F






Total. (Column (b) should equal Form 990, Part X, col.(B) line 12.)Small Bullet 114,397,943
Part VIII
Investments—Program Related. See Form 990, Part X, line 13.
(a) Description of investment type (b) Book value (c) Method of valuation:
Cost or end-of-year market value








Total. (Column (b) should equal Form 990, Part X, col.(B) line 13.)Small Bullet  
Part IX
Other Assets. See Form 990, Part X, line 15.
(a) Description (b) Book value
(1) INVESTMENTS IN HEALTHCARE & OTHER RELATED ORGANIZATIONS 568,362
(2) DEPOSIT - PFG EQUIPMENT LEASE 68,557
(3) OTHER LT ASSETS 2,395,455
(4) 2006 BOND ISSUE COST 2,519,414
(5) 1997 BOND ISSUE COSTS 312,980
(6) 2000 BOND ISSUE COST 11,631,556
(7) REFUNDABLE ADVANCE 4,478,102
(8) RECEIVABLE FROM AFFILIATES 5,351,436
(9) PENSION 12,867,244
Total. (Column (b) should equal Form 990, Part X, col.(B) line 15.)...........Small Bullet 40,193,106
Part X
Other Liabilities. See Form 990, Part X, line 25.
1.(a) Description of Liability (b) Amount
Federal Income Taxes  
SELF INSURANCE TRUST 82,156,180
OTHER INSURANCE 2,948,858
MARKET VALUE OF SWAP - UNFAVORABLE 14,748,375
CAPITAL LEASE 1,350,000
OTHER LIABILITIES 18,342,339




Total. (Column (b) should equal Form 990, Part X, col.(B) line 25.)Small Bullet 119,545,752
2. Fin 48 (ASC 740) Footnote. In Part XIV, provide the text of the footnote to the organization's financial statements that reports the organization's liability for uncertain tax positions under FIN 48 (ASC740).
Schedule D (Form 990) 2010

Schedule D (Form 990) 2010
Page 4
Part XI Reconciliation of Change in Net Assets from Form 990 to Financial Statements
1 Total revenue (Form 990, Part VIII, column (A), line 12) .................... 1 184,494,067
2 Total expenses (Form 990, Part IX, column (A), line 25) ..................... 2 170,121,827
3 Excess or (deficit) for the year. Subtract line 2 from line 1 ............. 3 14,372,240
4 Net unrealized gains (losses) on investments .......................... 4 21,408,714
5 Donated services and use of facilities ............................. 5  
6 Investment expenses ................................... 6  
7 Prior period adjustments .................................. 7  
8 Other (Describe in Part XIV) ................................. 8 -12,575,933
9 Total adjustments (net). Add lines 4 - 8 ............................. 9 8,832,781
10 Excess or (deficit) for the year per financial statements. Combine lines 3 and 9 ......... 10 23,205,021
Part XII Reconciliation of Revenue per Audited Financial Statements With Revenue per Return
1 Total revenue, gains, and other support per audited financial statements ....... 1  
2 Amounts included on line 1 but not on Form 990, Part VIII, line 12:
a Net unrealized gains on investments .......... 2a  
b Donated services and use of facilities ......... 2b  
c Recoveries of prior year grants ........... 2c  
d Other (Describe in Part XIV): ............ 2d  
e Add lines 2a through 2d ..................... 2e  
3 Subtract line 2e from line 1..................... 3  
4 Amounts included on Form 990, Part VIII, line 12, but not on line 1:
a Investment expenses not included on Form 990, Part VIII, line 7b . 4a  
b Other (Describe in Part XIV): ........... 4b  
c Add lines 4a and 4b....................... 4c  
5 Total Revenue. Add lines 3 and 4c. (This should equal Form 990, Part I, line 12.) ...... 5  
Part XIII Reconciliation of Expenses per Audited Financial Statements With Expenses per Return
1 Total expenses and losses per audited financial statements ............. 1  
2 Amounts included on line 1 but not on Form 990, Part IX, line 25:
a Donated services and use of facilities .......... 2a  
b Prior year adjustments .............. 2b  
c Other losses ................ 2c  
d Other (Describe in Part XIV): ............ 2d  
e Add lines 2a through 2d...................... 2e  
3 Subtract line 2e from line 1..................... 3  
4 Amounts included on Form 990, Part IX, line 25, but not on line 1:
a Investment expenses not included on Form 990, Part VIII, line 7b .. 4a  
b Other (Describe in Part XIV): ............ 4b  
c Add lines 4a and 4b....................... 4c  
5 Total expenses. Add lines 3 and 4c. (This should equal Form 990, Part I, line 18.) ...... 5  
Part XIV
Supplemental Information
Complete this part to provide the descriptions required for Part II, lines 3, 5, and 9; Part III, lines 1a and 4; Part lV, lines 1b and 2b;
Part V, line 4; Part X; Part XI, line 8; Part XII, lines 2d and 4b; and Part XIII, lines 2d and 4b. Also complete this part to provide any additional information.
Identifier Return Reference Explanation
  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
Schedule D (Form 990) 2010

Additional Data


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Software Version:  




SCHEDULE F
(Form 990)

Department of the Treasury
Internal Revenue Service
Statement of Activities Outside the United States
Right pointing arrow large image Complete if the organization answered "Yes" to Form 990,
Part IV, line 14b, 15, or 16.
Right pointing arrow large image Attach to Form 990. Right pointing arrow large image See separate instructions.
OMB No. 1545-0047
2010
Open to Public Inspection
Name of the organization
NORTON HEALTHCARE INC
 
Employer identification number

61-1028725
Part I
General Information on Activities Outside the United States. Complete if the organization answered
“Yes” to Form 990, Part IV, line 14b.
1
For grantmakers. Does the organization maintain records to substantiate the amount of the grants or
assistance, the grantees' eligibility for the grants or assistance, and the selection criteria used to award
the grants or assistance? ...................................
2
For grantmakers. Describe in Part V the organization’s procedures for monitoring the use of grant funds outside the
United States.
3
Activites per Region. (Use Part V if additional space is needed.)
(a) Region (b) Number of offices in the region (c) Number of employees or agents in region or independent contractors (d) Activities conducted in region (by type) (e.g., fundraising, program services, investments, grants to recipients located in the region) (e) If activity listed in (d) is a program service, describe specific type of
service(s) in region		 (f) Total
expenditures for region/investments
in region
CENTRAL AMERICA AND THE CARRIBEAN     INVESTMENTS   94,597,581
EAST ASIA AND THE PACIFIC     INVESTMENTS   11,310,797
EUROPE     INVESTMENTS   2,123,751
NORTH AMERICA     INVESTMENTS   3,025,343
RUSSIA     INVESTMENTS   880,000
SOUTH AMERICA     INVESTMENTS   340,114
           
           
           
           
           
           
           
           
           
           
           
3a Sub-total .....   0 112,277,586
b Total from continuation sheets to Part I ...   0 0
c Totals (add lines 3a and 3b)   0 112,277,586
For Privacy Act and Paperwork Reduction Act Notice, see the Instructions for Form 990.Cat. No. 50082W Schedule F (Form 990) 2010
Schedule F (Form 990) 2010
Page 2
Part II
Grants and Other Assistance to Organizations or Entities Outside the United States. Complete if the organization answered "Yes" to Form 990,
Part IV, line 15, for any recipient who received more than $5,000. Check this box if no one recipient received more than $5,000 ........ MediumBullet
Use Part V if additional space is needed.
1 (a) Name of organization (b) IRS code section
and EIN (if applicable)		 (c) Region (d) Purpose of
grant 		(e) Amount of
cash grant 		(f) Manner of
cash
disbursement 		(g) Amount of
of non-cash
assistance 		(h) Description
of non-cash
assistance 		(i) Method of
valuation
(book, FMV,
appraisal, other)
             
             
             
             
             
             
             
             
             
             
             
             
             
             
             
             
2
Enter total number of recipient organizations listed above that are recognized as charities by the foreign country, recognized as tax-exempt by the IRS, or for which the grantee or counsel has provided a section 501(c)(3) equivalency letter .....MediumBullet
 
3
Enter total number of other organizations or entities ........................MediumBullet
 
Schedule F (Form 990) 2010
Schedule F (Form 990) 2010Page 3
Part III
Grants and Other Assistance to Individuals Outside the United States. Complete if the organization answered "Yes" to Form 990, Part IV, line 16.
Use Part V if additional space is needed.
(a) Type of grant or assistance (b) Region (c) Number of recipients (d) Amount of
cash grant 		(e) Manner of cash
disbursement 		(f) Amount of
non-cash
assistance 		(g) Description
of non-cash
assistance 		(h) Method of
valuation
(book, FMV,
appraisal, other)
               
               
               
               
               
               
               
               
               
               
               
               
               
               
               
               
               
               
Schedule F (Form 990) 2010
Schedule F (Form 990) 2010
Page 4
Part IV
Foreign Forms
1 Was the organization a U.S. transferor of property to a foreign corporation during the tax year? If "Yes," the organization may be required to file Form 926 (see instructions for Form 926).................
2 Did the organization have an interest in a foreign trust during the tax year? If " Yes," the organization may be required to file Form 3520 and/or Form 3520-A. (see instructions for Forms 3520 and 3520-A)..........
3 Did the organization have an ownership interest in a foreign corporation during the tax year? If "Yes," the organization may be required to file Form 5471, Information Return of U.S. Persons with respect to Certain Foreign Corporations. (see instructions for Form 5471)..............................
4 Was the organization a direct or indirect shareholder of a passive foreign investment company or a qualified electing fund during the tax year? If "Yes," the organization may be required to file Form 8621, Return by a Shareholder of a Passive Foreign Investment Company or Qualified Electing Fund. (see instructions for Form 8621)
5 Did the organization have an ownership interest in a foreign partnership during the tax year? If "Yes," the organization may be required to file Form 8865, Return of U.S. Persons with respect to Certain Foreign Partnerships. (see instructions for Form 8865)....................................
6 Did the organization have any operations in or related to any boycotting countries during the tax year? If "Yes," the organization may be required to file Form 5713, International Boycott Report (see instructions for Form 5713)................................................
Schedule F (Form 990) 2010
Schedule F (Form 990) 2010
Page 5
Part V
Supplemental Information
Complete this part to provide the information (see instructions) required in Part I, line 2, and any additional information.
Identifier ReturnReference Explanation
METHOD USED TO ACCCOUNT FOR EXPENDITURES:   SCHEDULE F, PART I, LINE 3: INVESTMENTS ARE RECORDED AT FAIR MARKET VALUE
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
Schedule F (Form 990) 2010
Additional Data


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Software Version:  



Schedule I
(Form 990)
Department of the Treasury
Internal Revenue Service
Grants and Other Assistance to Organizations,
Governments and Individuals in the United States
Complete if the organization answered "Yes," to Form 990, Part IV, line 21 or 22.
lBullet Attach to Form 990
OMB No. 1545-0047
2010
Open to Public
Inspection
Name of the organization
NORTON HEALTHCARE INC
 
Employer identification number
61-1028725
Part I
General Information on Grants and Assistance
1
Does the organization maintain records to substantiate the amount of the grants or assistance, the grantees' eligibility for the grants or assistance, and
the selection criteria used to award the grants or assistance? ....................................
2
Describe in Part IV the organization's procedures for monitoring the use of grant funds in the United States.
Part II
Grants and Other Assistance to Governments and Organizations in the United States. Complete if the organization answered "Yes" to
Form 990, Part IV, line 21 for any recipient that received more than $5,000. Check this box if no one recipient received more than $5,000. Use
Part IV and Schedule I-1 (Form 990) if additional space is needed ......................... lBullet
(a) Name and address of organization
or government		 (b) EIN (c) IRC Code section
if applicable		 (d) Amount of cash grant (e) Amount of non-cash
assistance		 (f) Method of valuation
(book, FMV, appraisal,
other)		 (g) Description of
non-cash assistance		 (h) Purpose of grant
or assistance
(1) SHAWNEE CHRISTIAN HEALTHCARE CENTER234 AMY AVENUE
LOUISVILLE,KY40212 		26-4345390 501(C)(3) 425,000       PROVIDE START-UP FINANCIAL SUPPORT FOR FAITH BASED HEALTHCARE CLINIC SHAWNEE AREA
(2) LOUISVILLE COMPREHENSIVE CARE MS CENTER3991 DUTCHMANS LANE
LOUISVILLE,KY40207 		20-1512570 501(C)(3) 100,000       MS CONPREHENSIVE CENTER OF EXCELLENCE TO OPTIMIZE CARE FOR GREATEST NUMBER OF PEOPLE WITH MS
(3) UNIVERSITY PEDIATRIC SURGERY ASSOCIATES234 E GRAY ST STE 766
LOUISVILLE,KY40202 		61-1238961 501(C)(3) 250,000       PEDIATRIC ACADEMIC SUPPORT AND PEDIATRIC SURGICAL SERVICES
(4) U OF L PEDIATRIC SURGERY RESEARCHDEPARTMENT OF SURGERY
LOUISVILLE,KY40202 		61-1014882 501(C)(3) 250,000       FOR PEDIATRIC SURGERY RESEARCH SUPPORT TO THE U OF L RESEARCH FOUNDATION
(5) NORTON LEATHERMAN SPINE CENTER210 E GRAY ST STE 900
LOUISVILLE,KY40202 		61-1276316 501(C)(3) 856,301       STUDY THE TREATMENT OF CHRONIC MECHANICAL BACK PAIN WITH EITHER SURGICAL OR NON-SURGICAL CHOICE
(6) NORTON LEATHERMAN SPINE CENTER210 E GRAY ST STE 900
LOUISVILLE,KY40202 		61-1276316 501(C)(3) -1,077,281       ADJUSTMENT FOR PRIOR YEARS RECORDING OF GRANT
(7) U OF L RESEARCH FOUNDATION550 S JACKSON STREET
LOUISVILLE,KY40202 		61-1029626 501(C)(3) 88,804       PEDIATRIC RESEARCH
(8) LEADERSHIP LOUISVILLE CENTER732 W MAIN ST
LOUISVILLE,KY40202 		31-0958491 501(C)(3) 20,000       PROMOTE LEADERSHIP WITHIN THE LOUISVILLE COMMUNITY THROUGH ORGANIZATION REPRESENTATION
(9) DOCTORS WITHOUT BORDERS333 SEVENTH AVE 2ND FLOOR
NEW YORK,NY10001 		13-3433452 501(C)(3) 43,379       HAITI RELIEF
(10) EDGE OUTREACH INC1500 ARLINTON AVE
LOUISVILLE,KY40206 		61-1262016 501(C)(3) 43,379       HAITI RELIEF
(11) AMERICAN HEART ASSOCIATION5455 N HIGH ST
COLUMBUS,OH43214 		13-5613797 501(C)(3) 40,000       2010 KENTUCKIANA GO RED
(12) WOMEN 4 WOMEN INC323 W BROADWAY SUITE 502
LOUISVILLE,KY40202 		61-1240049 501(C)(3) 40,000       2010 CHAMPIONS 4 HER WALK, RUN & FESTIVAL TITLE SPONSOR
(13) HABITAT FOR HUMANITY2777 S FLOYD ST
LOUISVILLE,KY40209 		58-1735528 501(C)(3) 37,000       HABITAT FOR HUMANITY PROJECT
(14) AMERICAN CANCER SOCIETY701 W MUHAMMED ALI BLVD
LOUISVILLE,KY40203 		13-1788491 501(C)(3) 27,000       SPONSOR FOR WALKS/RELAY FOR LIFE WITHIN VARIOUS COUNTIES IN KENTUCKY AND SOUTHERN INDIANA
(15) CENTER FOR WOMEN AND FAMILIES927 S 2ND STREET
LOUISVILLE,KY40201 		61-0444846 501(C)(3) 35,000       PRESENTING SPONSOR FOR 2010 CELEBRATION OF SERVICE & SURVIVAL AND THE SANE PROGRAM
(16) THE CENTER FOR COURAGEOUS KIDS1501 BURNLEY RD
SCOTTSVILLE,KY42164 		20-1789905 501(C)(3) 30,000       FAMILY RETREAT SPONSORSHIP
(17) THE SALUTE TO CATHOLIC SCHOOL ALUMNI325 W MAIN ST SUITE 1906
LOUISVILLE,KY40202 		35-6078141 501(C)(3) 30,000       2010 BENEFACTOR OF THE FATHER JOSEPH MCGEE AWARD SPONSOR
(18) EPILEPSY FOUNDATION KENTUCKIANA982 EASTERN PARKWAY
LOUISVILLE,KY40217 		61-1314540 501(C)(3) 25,000       SPONSOR OF THE 2010 BRAINSTORM CONFERENCE
(19) GILDA'S CLUB LOUISVILLE INCP O BOX 4061
LOUISVILLE,KY40204 		20-1635170 501(C)(3) 25,000       SUPPORT FOR THE BUILDING FAMILY RESLIENCE LECTURE SERIES
(20) AMERICAN HEART ASSOCIATION240 WHITTINGTON PKWY
LOUISVILLE,KY40222 		13-5613797 501(C)(3) 19,000       BLOOD PRESSURE SCREENINGS; GALA AND GENERAL PROGRAM SUPPORT
(21) AMERICAN LUNG ASSOCIATION OF KYP O BOX 9067
LOUISVILLE,KY40209 		61-0444714 501(C)(3) 17,000       EVENT SPONSOR AND LUNG WALK
(22) LOUISVILLE METRO PARKSP O BOX 37280
LOUISVILLE,KY40233 		32-0049006 501(C)(3) 20,000       SUPPORT FOR HEALTHY HOMETOWN HIKE AND BIKE SERIES
(23) HEUSER HEARING INSTITUTE115 E KENTUCKY ST
LOUISVILLE,KY40203 		61-0492369 501(C)(3) 125,000       ENDOWED RESEARCH CHAIR OTOLOGY ARENA SUPPORT
2
Enter total number of section 501(c)(3) and government organizations ......................... Bullet Image
24
3
Enter total number of other organizations ................................ . Bullet Image
 
For Privacy Act and Paperwork Reduction Act Notice, see the Instructions for Form 990.
Cat. No. 50055P
Schedule I (Form 990) 2010

Schedule I (Form 990) 2010
Page 2
Part III
Grants and Other Assistance to Individuals in the United States. Complete if the organization answered "Yes" to Form 990, Part IV, line 22.
Use Schedule I-1 (Form 990) if additional space is needed.
(a)Type of grant or assistance (b)Number of
recipients		 (c)Amount of
cash grant		 (d)Amount of
non-cash assistance		 (e)Method of valuation (book,
FMV, appraisal, other)		 (f)Description of non-cash assistance
(1) UNDERGRADUATE SCHOLARSHIPS FOR STUDENTS PURSUING EDUCATION FOR A CAREER IN THE HEALTHCARE FIELD 78 94,000      
(2) ASSISTANCE TO CURRENT NORTON HEALTHCARE CLINICAL PERSONNEL 667 825,414      











Part IV
Supplemental Information. Complete this part to provide the information required in Part I, line 2, and any other additional information.
Identifier Return Reference Explanation
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.
Schedule I (Form 990) 2010


Additional Data


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Software Version:  


Schedule J
(Form 990)
Department of the Treasury
Internal Revenue Service
Compensation Information
For certain Officers, Directors, Trustees, Key Employees, and Highest
Compensated Employees
SchJMediumBullet Complete if the organization answered "Yes" to Form 990,
Part IV, question 23.
SchJMediumBullet Attach to Form 990. SchJMediumBullet See separate instructions.
OMB No. 1545-0047
2010
Open to Public Inspection
Name of the organization
NORTON HEALTHCARE INC
 
Employer identification number

61-1028725
Part I
Questions Regarding Compensation
Yes
No
1a
Check the appropiate box(es) if the organization provided any of the following to or for a person listed in Form
990, Part VII, Section A, line 1a. Complete Part III to provide any relevant information regarding these items.
b
If any of the boxes in line 1a are checked, did the organization follow a written policy regarding payment or reimbursement orprovision of all the expenses described above? If "No," complete Part III to explain....
1b
Yes
 
2
Did the organization require substantiation prior to reimbursing or allowing expenses incurred by all
officers, directors, trustees, and the CEO/Executive Director, regarding the items checked in line 1a? ....
2
Yes
 
3
Indicate which, if any, of the following the organization uses to establish the compensation of the
organization's CEO/Executive Director. Check all that apply.
4
During the year, did any person listed in Form 990, Part VII, Section A, line 1a with respect to the filing organization or a related organization:
a
Receive a severance payment or change-of-control payment? ...............
4a
Yes
 
b
Participate in, or receive payment from, a supplemental nonqualified retirement plan? ........
4b
Yes
 
c
Participate in, or receive payment from, an equity-based compensation arrangement? ........
4c
 
No
If "Yes" to any of lines 4a-c, list the persons and provide the applicable amounts for each item in Part III.
Only 501(c)(3) and 501(c)(4) organizations only must complete lines 5-9.
5
For persons listed in form 990, Part VII, Section A, line 1a, did the organization pay or accrue any
compensation contingent on the revenues of:
a
The organization? ...........................
5a
 
No
b
Any related organization? .........................
5b
 
No
If "Yes," to line 5a or 5b, describe in Part III.
6
For persons listed in form 990, Part VII, Section A, line 1a, did the organization pay or accrue any
compensation contingent on the net earnings of:
a
The organization? ...........................
6a
 
No
b
Any related organization? .........................
6b
 
No
If "Yes," to line 6a or 6b, describe in Part III.
7
For persons listed in Form 990, Part VII, Section A, line 1a, did the organization provide any non-fixed
payments not described in lines 5 and 6? If "Yes," describe in Part III ............
7
 
No
8
Were any amounts reported in Form 990, Part VII, paid or accured pursuant to a contract that was
subject to the initial contract exception described in Regs. section 53.4958-4(a)(3)? If "Yes," describe
in Part III .............................
8
 
No
9
If "Yes" to line 8, did the organization also follow the rebuttable presumption procedure described in Regulations section 53.4958-6(c)? .........................
9
 
 
For Privacy Act and Paperwork Reduction Act Notice, see the Intructions for Form 990
Cat. No. 50053T
Schedule J (Form 990) 2010

Schedule J (Form 990) 2010
Page 2
Part II
Officers, Directors, Trustees, Key Employees, and Highest Compensated Employees. Use Schedule J-1 if additional space needed.
For each individual whose compensation must be reported in Schedule J, report compensation from the organization on row (i) and from related organizations, described in the
instructions on row (ii). Do not list any individuals that are not listed on Form 990, Part VII.

Note. The sum of columns (B)(i)-(iii) must equal the applicable column (D) or column (E) amounts on Form 990, Part VII, line 1a.
(A) Name (B) Breakdown of W-2 and/or 1099-MISC compensation (C) Retirement and other deferred compensation (D) Nontaxable
benefits		 (E) Total of columns
(B)(i)-(D) 		(F) Compensation
reported in prior
Form 990 or
Form 990-EZ
(i) Base compensation (ii) Bonus & incentive compensation (iii) Other reportable compensation
(1) STEPHEN A WILLIAMS (i)
(ii)		 922,287
0 		517,078
0 		468,927
0 		277,463
0 		20,646
0 		2,206,401
0 		0
0
(2) RUSSELL F COX (i)
(ii)		 690,430
0 		241,507
0 		155,237
0 		172,291
0 		26,874
0 		1,286,339
0 		0
0
(3) MICHAEL W GOUGH (i)
(ii)		 599,288
0 		203,578
0 		115,459
0 		145,308
0 		25,242
0 		1,088,875
0 		0
0
(4) ROBERT B AZAR (i)
(ii)		 260,914
0 		101,412
0 		120,825
0 		77,943
0 		8,792
0 		569,886
0 		0
0
(5) STEVEN HESTER (i)
(ii)		 427,976
0 		123,201
0 		128,201
0 		108,807
0 		28,480
0 		816,665
0 		80,319
0
(6) TRACY WILLIAMS (i)
(ii)		 207,007
0 		81,286
0 		148,848
0 		64,558
0 		21,639
0 		523,338
0 		39,827
0
(7) RICHARD CARRICO (i)
(ii)		 310,829
0 		98,898
0 		40,267
0 		74,093
0 		19,824
0 		543,911
0 		0
0
(8) JOSEPH DEVENUTO (i)
(ii)		 195,386
0 		92,811
0 		173,153
0 		252,423
0 		19,590
0 		733,363
0 		69,465
0
(9) SCOTT WATKINS (i)
(ii)		 266,234
0 		76,655
0 		53,026
0 		61,279
0 		20,265
0 		477,459
0 		26,253
0
(10) MICHAEL ESPOSITO (i)
(ii)		 262,269
0 		72,065
0 		54,346
0 		60,652
0 		18,902
0 		468,234
0 		27,220
0
(11) CHARLES BOHN (i)
(ii)		 296,274
0 		61,957
0 		32,524
0 		61,933
0 		20,430
0 		473,118
0 		0
0
(12) MARY JO BEAN (i)
(ii)		 204,468
0 		47,333
0 		156,064
0 		48,636
0 		7,654
0 		464,155
0 		128,449
0
(13) DANA ALLEN (i)
(ii)		 167,368
0 		46,883
0 		71,198
0 		40,926
0 		8,711
0 		335,086
0 		0
0
(14) MARY CORBETT (i)
(ii)		 223,953
0 		45,080
0 		15,882
0 		40,827
0 		11,993
0 		337,735
0 		0
0
(15) JIM MEYERS (i)
(ii)		 185,431
0 		21,917
0 		12,478
0 		17,751
0 		17,449
0 		255,026
0 		0
0
(16) STEVE READY (i)
(ii)		 196,333
0 		25,845
0 		32,417
0 		18,166
0 		18,121
0 		290,882
0 		0
0
(17) JON COOPER (i)
(ii)		 204,326
0 		69,072
0 		34,067
0 		42,965
0 		19,601
0 		370,031
0 		16,767
0
(18) KIMBERLY THARP-BARRIE (i)
(ii)		 197,107
0 		52,370
0 		56,778
0 		43,801
0 		9,415
0 		359,471
0 		24,117
0
(19) STEVE HEILMAN MD (i)
(ii)		 301,412
0 		36,799
0 		2,433
0 		23,414
0 		19,156
0 		383,214
0 		0
0
(20) STEVE MENAUGH (i)
(ii)		 201,945
0 		43,953
0 		56,541
0 		42,564
0 		21,617
0 		366,620
0 		44,724
0
(21) KENNETH WILSON MD (i)
(ii)		 266,464
0 		49,084
0 		19,240
0 		26,138
0 		15,837
0 		376,763
0 		0
0
(22) GREGG DAVIS (i)
(ii)		 122,198
0 		47,142
0 		59,133
0 		16,296
0 		14,730
0 		259,499
0 		31,818
0
(23) JAMES PAROBEK (i)
(ii)		 64,155
0 		56,342
0 		57,851
0 		6,296
0 		6,035
0 		190,679
0 		47,669
0
(24) KAREN BOLIN (i)
(ii)		 164,487
0 		43,788
0 		59,208
0 		36,305
0 		2,465
0 		306,253
0 		21,241
0
Schedule J (Form 990) 2010

Schedule J (Form 990) 2010
Page 3
Part III
Supplemental Information
Complete this part to provide the information, explanation, or descriptions required for Part I, lines 1a, 1b, 4c, 5a, 5b, 6a, 6b, 7, and 8. Also complete this part for any additional information.
Identifier Return Reference Explanation
  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
Schedule J (Form 990) 2010

Additional Data


Software ID:  
Software Version:  
Schedule K
(Form 990)
Department of the Treasury
Internal Revenue Service
Supplemental Information on Tax Exempt Bonds
SchKMediumBullet Complete if the organization answered "Yes" to Form 990, Part IV, line 24a. Provide descriptions,
explanations, and any additional information in Schedule O (Form 990).
SchKMediumBullet Attach to Form 990. SchKMediumBullet See separate instructions.
OMB No. 1545-0047
2010
Open to Public
Inspection
Name of the organization
NORTON HEALTHCARE INC
 
Employer identification number
61-1028725
Part I
Bond Issues
(a) Issuer Name (b) Issuer EIN (c) CUSIP # (d) Date Issued (e) Issue Price (f) Description of Purpose (g) Defeased (h) On
Behalf of
Issuer 		(i) Pool
financing
Yes No Yes No Yes No
A LOUISVILLEJEFFERSON COUNTY METRO GOVERNMENT
  		32-0049006 54659LAC8 10-12-2006 315,474,736 SEE SCH K PART V   X   X   X
Part II
Proceeds
A B C D
1 Amount of bonds retired. . . . . 265,000      
2 Amount of bonds defeased . . . .        
3 Total proceeds of issue . . . . 329,981,080      
4 Gross proceeds in reserve funds . .        
5 Capitalized interest from proceeds. 958,005      
6 Proceeds in refunding escrow. . . . . 73,383,337      
7 Issuance costs from proceeds . . . 2,885,257      
8 Credit enhancement from proceeds.        
9 Working capital expenditures from proceeds . . 5,900,000      
10 Capital expenditures from proceeds . . 183,389,691      
11 Other spent proceeds . .        
12 Other unspent proceeds. . .        
13 Year of substantial completion . . . 2009
Yes No Yes No Yes No Yes No
14 Were the bonds issued as part of a current refunding issue?   X            
15 Were the bonds issued as part of an advance refunding issue? X              
16 Has the final allocation of proceeds been made? . . X              
17 Does the organization maintain adequate books and records to support the final allocation of proceeds? . X              
Part III
Private Business Use
A B C D
Yes No Yes No Yes No Yes No
1 Was the organization a partner in a partnership, or a member of an LLC, which owned property financed by tax-exempt bonds? . . .   X            
2 Are there any lease arrangements that may result in private business use of bond-financed property? . . . . . X              
For Privacy Act and Paperwork Reduction Act Notice, see the Instructions for Form 990.
Cat. No. 50193E
Schedule K (Form 990) 2010
Schedule K (Form 990) 2010
Page 2
Part III
Private Business Use (Continued)
A B C D
Yes No Yes No Yes No Yes No
3a Are there any management or service contracts that may result in private business use? X              
b Are there any research agreements that may result in private business use of bond-financed property? . . X              
c Does the organization routinely engage bond counsel or other outside counsel to review any management or service contracts or research agreements relating to the financed property? . X              
4 Enter the percentage of financed property used in a private business use by entities other than a section 501(c)(3) organization or a state or local government . . . . . . . . . . . . . SchKMediumBullet 4.130 %      
5 Enter the percentage of financed property used in a private business use as a result of unrelated trade or business activity carried on by your organization, another section 501(c)(3) organization, or a state or local government . SchKMediumBullet 0.570 %      
6 Total of lines 4 and 5 . . .. . . . . . 4.700 %      
7 Has the organization adopted management practices and procedures to ensure the post-issuance compliance of its tax-exempt bond liabilities? X              
Part IV
Arbitrage
A B C D
Yes No Yes No Yes No Yes No
1 Has a Form 8038-T, Arbitrage Rebate, Yield Reduction and Penalty in Lieu of Arbitrage Rebate, been filed with respect to the bond issue? . . .   X            
2 Is the bond issue a variable rate issue?   X            
3a Has the organization or the governmental issuer entered into a hedge with respect to the bond issue?   X            
b Name of provider .  
  		 
  		 
  		 
 
c Term of hedge . .        
d Was the hedge superintegrated? .                
e Was a hedge terminated? .                
4a Were gross proceeds invested in a GIC? . X              
b Name of provider . MORGAN STANLEY
  		 
  		 
  		 
 
c Term of GIC . . 3.200000000000      
d Was the regulatory safe harbor for establishing the fair market value of the GIC satisfied? . X              
5 Were any gross proceeds invested beyond an available temporary period? .   X            
6 Did the bond issue qualify for an exception to rebate? . . .   X            
Schedule K (Form 990) 2010

Schedule K (Form 990) 2010
Page 3
Part V
Supplemental Information
Complete this part to provide additional information for responses to questions on Schedule K (see instructions).
Identifier Return Reference Explanation
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.
Schedule K (Form 990) 2010

Additional Data


Software ID:  
Software Version:  

Schedule L
(Form 990 or 990-EZ)
Department of the Treasury
Internal Revenue Service
Transactions with Interested Persons
MediumBullet Complete if the organization answered
"Yes" on Form 990, Part IV, lines 25a, 25b, 26, 27, 28a, 28b, or 28c,
or Form 990-EZ, Part V lines 38a or 40b.
MediumBullet Attach to Form 990 or Form 990-EZ. MediumBulletSee separate instructions.
OMB No. 1545-0047
2010
Open to Public Inspection
Name of the organization
NORTON HEALTHCARE INC
 
Employer identification number

61-1028725
Part I
Excess Benefit Transactions (section 501(c)(3) and section 501 (c)(4) organizations only).
Complete if the organization answered "Yes" on Form 990, Part IV, line 25a or 25b, or Form 990-EZ, Part V, line 40b.
1(a) Name of disqualified person (b) Description of transaction (c) Corrected?
Yes No





2
Enter the amount of tax imposed on the organization managers or disqualified persons during the year under section 4958. ......................... Bullet Image$
 
3
Enter the amount of tax, if any, on line 2, above, reimbursed by the organization ....... Bullet Image$
 

Part II
Loans to and/or From Interested Persons.
Complete if the organization answered "Yes" on Form 990, Part IV, line 26, or Form 990-EZ, Part V, line 38a.
(a) Name of interested person and purpose (b) Loan to or from the organization? (c)Original principal amount (d)Balance due (e) In default? (f) Approved by board or committee? (g)Written agreement?
To From Yes No Yes No Yes No
(1) KAYCEE THARP DAUGHTER OF KIMBER
NORTON HEALTHCARE SCHOLARS PROGRAM (SEE SCHEDULE O CONTINUED DISCLOSURE) 		  X 20,144 15,528   No Yes   Yes  
Total ...............Small Bullet $ 15,528
Part III
Grants or Assistance Benefitting Interested Persons.
Complete if the organization answered "Yes" on Form 990, Part IV, line 27.
(a) Name of interested person (b)Relationship between interested person and the organization (c)Amount of grant or type of assistance
For Privacy Act and Paperwork Reduction Act Notice, see the
Instructions for Form 990 or 990-EZ.
Cat. No. 50056A
Schedule L (Form 990 or 990-EZ) 2010
Schedule L (Form 990 or 990-EZ) 2010
Page 2
Part IV
Business Transactions Involving Interested Persons.
Complete if the organization answered "Yes" on Form 990, Part IV, line 28a, 28b, or 28c.
(a) Name of interested person (b) Relationship between interested person and the organization (c) Amount of transaction (d) Description of transaction (e) Sharing of organization's revenues?
Yes No
(1) AL J SCHNEIDER COMPANY
  		MARY MOSELEY TRUSTEE IS AN OFFICER OF THE COMPANY 195,444 SERVICES INCLUDING BUT NOT LIMITED TO SERVICE BANQUET, CONFERENCES AND OTHER BUSINESS FUNCTIONS   No
Part V
Supplemental Information
Complete this part to provide additional information for responses to questions on Schedule L (see instructions).
Identifier Return Reference Explanation
Schedule L (Form 990 or 990-EZ) 2010

Additional Data


Software ID:  
Software Version:  




SCHEDULE O
(Form 990 or 990-EZ)

Department of the Treasury
Internal Revenue Service
Supplemental Information to Form 990 or 990-EZ

Complete to provide information for responses to specific questions on
Form 990 or to provide any additional information.
MediumBullet Attach to Form 990 or 990-EZ.
OMB No. 1545-0047
2010
Open to Public
Inspection
Name of the organization
NORTON HEALTHCARE INC
 
Employer identification number

61-1028725
Identifier Return Reference Explanation
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.
For Paperwork Reduction Act Notice, see the Instructions for Form 990 or 990-EZ.
Cat. No. 51056K
Schedule O (Form 990 or 990-EZ) 2010

Additional Data


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SCHEDULE R
(Form 990)
Department of the Treasury
Internal Revenue Service
Related Organizations and Unrelated Partnerships
MediumBulletComplete if the organization answered "Yes" to Form 990, Part IV, line 33, 34, 35, 36, or 37.
MediumBulletAttach to Form 990. MediumBullet See separate instructions.

OMB No. 1545-0047
2010
Open to Public Inspection
Name of the organization
NORTON HEALTHCARE INC
 
Employer identification number

61-1028725
Part I
Identification of Disregarded Entities (Complete if the organization answered "Yes" on Form 990, Part IV, line 33.)
(a)
Name, address, and EIN of disregarded entity


(b)
Primary activity


 		(c)
Legal domicile (state
or foreign country)

 		(d)
Total income
(e)
End-of-year assets


 		(f)
Direct controlling
entity

















Part II
Identification of Related Tax-Exempt Organizations (Complete if the organization answered "Yes" on Form 990, Part IV, line 34 because it had one or more related tax-exempt organizations during the tax year.)
(a)
Name, address, and EIN of related organization


(b)
Primary activity


 		(c)
Legal domicile (state
or foreign country)

 		(d)
Exempt Code section
(e)
Public charity status
(if section 501(c)(3))

 		(f)
Direct controlling
entity

 		(g)
Section 512(b)(13) controlled organization
Yes No
(1) NORTON HOSPITALS INC

224 E BROADWAY 5TH FLOOR

LOUISVILLE,KY40202
61-0703799 		PROVIDE HOSPITAL SERVICES KY 501(C)3 3 N/A
Yes
 
(2) COMMUNITY MEDICAL ASSOCIATES INC

224 E BROADWAY 5TH FLOOR

LOUISVILLE,KY40202
61-1276316 		OPERATES A NETWORK OF PHYSICIAN PRACTICES KY 501(C)3 9 N/A
Yes
 
(3) NORTON PROPERTIES INC

224 E BROADWAY 5TH FLOOR

LOUISVILLE,KY40202
61-1028724 		MAINTAINS OFFICE AND PARKING FACILITIES KY 501(C)3 11A-TYPEI N/A
Yes
 
(4) THE CHILDREN'S HOSPITAL FOUNDATION

224 E BROADWAY 5TH FLOOR

LOUISVILLE,KY40202
61-6027530 		GENERATE FUNDS TO SUPPORT PROGRAMS AND SERVICES KY 501(C)3 7 N/A
Yes
 
(5) NORTON HEALTHCARE FOUNDATION INC

224 E BROADWAY 5TH FLOOR

LOUISVILLE,KY40202
31-0914919 		GENERATE FUNDS TO SUPPORT PROGRAMS AND SERVICES KY 501(C)3 7 N/A
Yes
 




For Privacy Act and Paperwork Reduction Act Notice, see the Instructions for Form 990.
Cat. No. 50135Y
Schedule R (Form 990) 2010
Schedule R (Form 990) 2010
Page 2
Part III
Identification of Related Organizations Taxable as a Partnership (Complete if the organization answered "Yes" on Form 990, Part IV, line 34 because it had one or more related organizations treated as a partnership during the tax year.)
(a)
Name, address, and EIN of
related organization



 		(b)
Primary activity




 		(c)
Legal
domicile
(state or foreign
country)


 		(d)
Direct controlling
entity



 		(e)
Predominant income(related, unrelated, excluded from tax under sections 512-514)

(f)
Share of total income




 		(g)
Share of end-of-year
assets



 		(h)
Disproprtionate allocations?




 		(i)
Code V—UBI
amount in box 20 of
Schedule K-1
(Form 1065)
 		(j)
General or
managing
partner?



 		(k)
Percentage
ownership
Yes No Yes No












Part IV
Identification of Related Organizations Taxable as a Corporation or Trust (Complete if the organization answered "Yes" on Form 990, Part IV, line 34 because it had one or more related organizations treated as a corporation or trust during the tax year.)
(a)
Name, address, and EIN of related organization



 		(b)
Primary activity



 		(c)
Legal domicile
(state or
foreign
country)
 		(d)
Direct controlling
entity


 		(e)
Type of entity
(C corp, S corp,
or trust)

 		(f)
Share of total income



 		(g)
Share of
end-of-year
assets

 		(h)
Percentage
ownership
(1) NORTON ENTERPRISES INC
224 E BROADWAY 5TH FLOOR
LOUISVILLE,KY40202
61-1054301 		PROVIDE NURSING AND PATHOLOGY SERVICES KY N/A
 C 33,570,138 27,338,805 100.000 %












Schedule R (Form 990) 2010
Schedule R (Form 990) 2010
Page 3
Part V
Transactions With Related Organizations (Complete if the organization answered "Yes" on Form 990, Part IV, line 34, 35, 35A, or 36.)
Note. Complete line 1 if any entity is listed in Parts II, III or IV.
Yes
No
1 During the tax year, did the orgranization engage in any of the following transactions with one or more related organizations listed in Parts II-IV?
a Receipt of (i) interest (ii) annuities (iii) royalties (iv) rent from a controlled entity . . . . . . . . . . . . . . . . . . . . . . .
1a
 
No
b Gift, grant, or capital contribution to other organization(s) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
1b
 
No
c Gift, grant, or capital contribution from other organization(s) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
1c
 
No
d Loans or loan guarantees to or for other organization(s) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
1d
 
No
e Loans or loan guarantees by other organization(s) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
1e
 
No
f Sale of assets to other organization(s) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
1f
 
No
g Purchase of assets from other organization(s) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
1g
 
No
h Exchange of assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
1h
 
No
i Lease of facilities, equipment, or other assets to other organization(s) . . . . . . . . . . . . . . . . . . . . . . . . . . . .
1i
 
No
j Lease of facilities, equipment, or other assets from other organization(s) . . . . . . . . . . . . . . . . . . . . . . . . . . .
1j
 
No
k Performance of services or membership or fundraising solicitations for other organization(s) . . . . . . . . . . . . . . . . . . . . . .
1k
 
No
l Performance of services or membership or fundraising solicitations by other organization(s) . . . . . . . . . . . . . . . . . . . . . .
1l
 
No
m Sharing of facilities, equipment, mailing lists, or other assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
1m
 
No
n Sharing of paid employees . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
1n
 
No
o Reimbursement paid to other organization for expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
1o
 
No
p Reimbursement paid by other organization for expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
1p
 
No
q Other transfer of cash or property to other organization(s) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
1q
Yes
 
r Other transfer of cash or property from other organization(s) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
1r
Yes
 
2
If the answer to any of the above is "Yes," see the instructions for information on who must complete this line, including covered relationships and transaction thresholds.
(a)
Name of other organization 		(b)
Transaction
type(a-r) 		(c)
Amount involved 		(d)
Method of determining amount involved
(1) NORTON ENTERPRISES INC

 Q 20,518,874 FMV
(2) NORTON ENTERPRISES INC

 R 21,131,324 FMV
(3) NORTON HOSPITALS INC

 Q 1,155,298,131 FMV
(4) NORTON HOSPITALS INC

 R 1,219,597,203 FMV
(5) COMMUNITY MEDICAL ASSOCIATES

 Q 177,420,528 FMV
(6) COMMUNITY MEDICAL ASSOCIATES

 R 146,373,903 FMV
(7) NORTON PROPERTIES INC

 Q 7,992,623 FMV
(8) NORTON PROPERTIES INC

 R 5,422,719 FMV
(9) THE CHILDREN'S HOSPITAL FOUNDATION INC

 Q 3,527,622 FMV
(10) THE CHILDREN'S HOSPITAL FOUNDATION INC

 R 3,766,562 FMV
(11) NORTON HEALTHCARE FOUNDATION INC

 Q 2,027,414 FMV
(12) NORTON HEALTHCARE FOUNDATION INC

 R 2,002,450 FMV
Schedule R (Form 990) 2010
Schedule R (Form 990) 2010
Page 4
Part VI
Unrelated Organizations Taxable as a Partnership (Complete if the organization answered "Yes" on Form 990, Part IV, line 37.)
Provide the following information for each entity taxed as a partnership through which the organization conducted more than five percent of its activities (measured by total assets or gross revenue) that was not a related organization. See instructions regarding exclusion for certain investment partnerships.
(a)
Name, address, and EIN of entity 		(b)
Primary activity 		(c)
Legal domicile
(state or foreign
country) 		(d)
Are all
partners
section
501(c)(3)
organizations? 		(e)
Share of
end-of-year
assets 		(f)
Disproprtionate allocations? 		(g)
Code V—UBI
amount in box
20 of Schedule K-1
(Form 1065) 		(h)
General or
managing
partner?
Yes No Yes No Yes No






























Schedule R (Form 990) 2010
Schedule R (Form 990) 2010
Page 5
Part VII
Supplemental Information
Complete this part to provide additional information for responses to questions on Schedule R (see instructions).
Identifier Return Reference Explanation
    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.
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