Form990
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
2012
Open to Public Inspection
A For the 2012 calendar year, or tax year beginning 01-01-2012 , 2012, and ending 12-31-2012
BCheck if applicable:
CName of organization
NORTON HOSPITALS INC
 
Doing Business As
 
 
Number and street (or P.O. box if mail is not delivered to street address)
Accounting 224 E Broadway
5th Floor
Room/suite
City or town, state or country, and ZIP + 4
Louisville, KY40202
D Employer identification number

61-0703799
E Telephone number

G Gross receipts $ 1,488,683,553
F Name and address of principal officer:
STEPHEN A WILLIAMS
4967 US Highway 42 Suite 100
Louisville,KY40222
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: 1969
M State of legal domicile: KY
Part I
Summary
Activities & Governance 1 Briefly describe the organization’s mission or most significant activities: NORTON HOSPITALS, INC.'S PURPOSE IS TO PROVIDE QUALITY HEALTH CARE TO ALL THOSE WE SERVE, IN A MANNER THAT RESPONDS TO THE NEEDS OF OUR COMMUNITIES AND HONORS OUR FAITH HERITAGE.
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 2011 (Part V, line 2a) ...... 5 9,061
6 Total number of volunteers (estimate if necessary) ............. 6 1,493
7a Total unrelated business revenue from Part VIII, column (C), line 12 ........ 7a 4,995,726
b Net unrelated business taxable income from Form 990-T, line 34 ......... 7b -126,684
Revenues Prior Year Current Year
8 Contributions and grants (Part VIII, line 1h) ......... 11,695,612 16,909,581
9 Program service revenue (Part VIII, line 2g) ......... 1,369,464,955 1,464,215,618
10 Investment income (Part VIII, column (A), lines 3, 4, and 7d ) .... -44,885 -1,181,382
11 Other revenue (Part VIII, column (A), lines 5, 6d, 8c, 9c, 10c, and 11e) 4,937,576 6,358,578
12 Total revenue—add lines 8 through 11 (must equal Part VIII, column (A), line 12)................... 1,386,053,258 1,486,302,395
Expenses; 13 Grants and similar amounts paid (Part IX, column (A), lines 1–3 )... 0 0
14 Benefits paid to or for members (Part IX, column (A), line 4).....   0
15 Salaries, other compensation, employee benefits (Part IX, column (A), lines 5–10) 502,607,452 538,583,528
16a Professional fundraising fees (Part IX, column (A), line 11e).....   0
b Total fundraising expenses (Part IX, column (D), line 25) MediumBullet0    
17 Other expenses (Part IX, column (A), lines 11a–11d, 11f–24e).... 768,583,549 822,692,692
18 Total expenses. Add lines 13–17 (must equal Part IX, column (A), line 25) 1,271,191,001 1,361,276,220
19 Revenue less expenses. Subtract line 18 from line 12....... 114,862,257 125,026,175
Net Assets or Fund Balances; Beginning of Current Year End of Year
20 Total assets (Part X, line 16)............. 961,472,634 1,090,945,217
21 Total liabilities (Part X, line 26)............. 80,980,602 85,442,814
22 Net assets or fund balances. Subtract line 21 from line 20..... 880,492,032 1,005,502,403
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 Use Only
Print/Type preparer's name
 
Preparer's signature
Date
PTIN
Firm's name MediumBullet

Firm's EIN MediumBullet
Firm's address MediumBullet



Phone no.
May the IRS discuss this return with the preparer shown above? (see instructions) ............
For Paperwork Reduction Act Notice, see the separate instructions.
Cat. No. 11282Y
Form 990 (2012)
Form 990 (2012)
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: NORTON HOSPITALS, INC.'S PURPOSE IS TO PROVIDE QUALITY HEALTH CARE TO ALL THOSE WE SERVE, IN A MANNER THAT RESPONDS TO THE NEEDS OF OUR COMMUNITIES AND HONORS OUR FAITH HERITAGE.
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 organization’s program service accomplishments for each of its three largest program services, as measured by expenses. Section 501(c)(3) and 501(c)(4) organizations 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 $ 1,332,148,414 including grants of $   ) (Revenue $ 1,464,403,857 )
NORTON HOSPITALS, INC. (NORTON) WAS FORMED TO: I) ESTABLISH AND MAINTAIN HOSPITALS OR HEALTH CARE FACILITIES, WITHIN AND/OR OUTSIDE THE COMMONWEALTH OF KENTUCKY, WITH PERMANENT FACILITIES THAT INCLUDE INPATIENT BEDS AND MEDICAL SERVICES TO PROVIDE DIAGNOSIS, CARE AND TREATMENT FOR PEDIATRIC AND ADULT PATIENTS; II) CARRY ON EDUCATIONAL ACTIVITIES RELATED TO RENDERING CARE TO THE SICK AND INJURED; III) PROMOTE AND CARRY ON SCIENTIFIC RESEARCH RELATED TO THE CARE OF THE SICK AND INJURED; IV) PARTICIPATE IN ANY ACTIVITY DESIGNED AND RENDERED TO PROMOTE THE GENERAL HEALTH OF THE COMMUNITY; AND V) PROVIDE ON A NONPROFIT BASIS, HOSPITAL OR HEALTH CARE FACILITIES AND SERVICES FOR THE CARE AND TREATMENT OF ILL AND INJURED PERSONS AND THOSE WHO OTHERWISE REQUIRE MEDICAL CARE AND RELATED SERVICES OF THE KIND CUSTOMARILY FURNISHED MOST EFFECTIVELY BY HOSPITALS OR HEALTH CARE FACILITIES. NORTON HAS A TOTAL OF 1,837 LICENSED BEDS, NORTON HOSPITAL - 642 BEDS; KOSAIR CHILDREN'S HOSPITAL - 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 (7) DAYS A WEEK. IN 2012, NORTON'S HOSPITALS AND DIAGNOSTIC CENTERS SERVED 62,486 INPATIENTS, 418,102 OUTPATIENTS, AND 210,617 EMERGENCY ROOM VISITS. IN ADDITION, NORTON'S OPERATING ROOMS CARED FOR 18,773 INPATIENT SURGICAL PATIENTS AND 32,333 OUTPATIENT SURGICAL PATIENTS. ADDITIONALLY, 7,982 DELIVERIES WERE PERFORMED AT NORTON BIRTHING CENTERS. UNDER ITS CHARITY CARE PROGRAM, NORTON PROVIDED FREE CARE TO 7,634 PATIENTS, AT A COST OF $11.2 MILLION. ALSO, NORTON GRANTS PATIENTS A DISCOUNT FROM BILLED CHARGES TO ANY INDIVIDUALS THAT HAVE NO ACCESS TO PRIVATE HEALTH INSURANCE OR DO NOT QUALIFY FOR GOVERNMENT ASSISTANCE OR CHARITY CARE. UNDER THIS PROGRAM, 37,597 PATIENTS CARE AT DISCOUNTED RATES. OTHER CONTRIBUTIONS TO THE COMMUNITY WERE THE UNPAID COST OF MEDICAID AND THE KENTUCKY DISPROPORTIONATE SHARE PROGRAM SERVICES TOTALING $80.4 MILLION AND EDUCATIONAL SUPPORT OF $23.7 MILLION, PRIMARILY TO THE UNIVERSITY OF LOUISVILLE'S SCHOOL OF MEDICINE. ALSO, COMMUNITY HEALTH IMPROVEMENT SERVICES TOTALED $10.2 MILLION, CONTRIBUTIONS TO COMMUNITY GROUPS WERE $976,000, PASTORAL CARE AND COUNSELING PROGRAMS WERE $1.8 MILLION, THE KENTUCKY POISON CONTROL CENTER WAS $1.9 MILLION, AND THE CHILD GUIDANCE AND ADVOCACY PROGRAM WAS $958,000.
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 expensesMediumBullet1,332,148,414
Form 990 (2012)
Form 990 (2012)
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 (see instructions)? 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 I..........
3
 
No
4
Section 501(c)(3) organizations. Did the organization engage in lobbying activities, or have a section 501(h) election in effect during the tax year? 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 III............................
5
 
 
6
Did the organization maintain any donor advised funds or any similar funds or accounts for which 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 I........................
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 II...
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 ....................
8
 
No
9
Did the organization report an amount in Part X, line 21 for escrow or custodial account liability; 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 IV..............
9
 
No
10
Did the organization, directly or through a related organization, hold assets in temporarily restricted endowments, permanent endowments, or quasi-endowments? If “Yes,” complete Schedule D, Part V......
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, line 10?
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.......
11b
 
No
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.......
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 IXClick 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 XClick 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 XClick 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 and XII .................
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 and XII 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, investment, and program service activities outside the United States, or aggregate foreign investments valued at $100,000 or more? If “Yes,” complete Schedule F, Parts I and IV.........
14b
 
No
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 United States? If “Yes,” complete Schedule F, Parts II and IV
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 United States? If “Yes,” complete Schedule F, Parts III and IV...
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 (see instructions)....
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
20a
Did the organization operate one or more hospital facilities? If “Yes,” complete Schedule H.... Click to see attachment
20a
Yes
 
b
If “Yes” to line 20a, did the organization attach a copy of its audited financial statements to this return? Click to see attachment
20b
Yes
 
Form 990 (2012)
Form 990 (2012)
Page 4
Part IV
Checklist of Required Schedules (continued)
21
Did the organization report more than $5,000 of grants and other assistance to any government or organization in the United States on Part IX, column (A), line 1? If “Yes,” complete Schedule I, Parts I and II...
21
 
No
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........
22
 
No
23
Did the organization answer “Yes” to Part VII, Section A, line 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 lines 24b through 24d and complete Schedule K. If “No,” go to line 25................
24a
 
No
b
Did the organization invest any proceeds of tax-exempt bonds beyond a temporary period exception?...
24b
 
 
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
 
 
d
Did the organization act as an “on behalf of” issuer for bonds outstanding at any time during the year?...
24d
 
 
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........
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...................
25b
 
No
26
Was a loan to or by a current or former officer, director, trustee, key employee, highest compensated employee, or disqualified person outstanding as of the end of the organization’s tax year? If “Yes,” complete Schedule L,
Part II..........................
26
 
No
27
Did the organization provide a grant or other assistance to an officer, director, trustee, key employee, substantial contributor or employee thereof, a grant selection committee member, or to a 35% controlled entity or family member of any of these persons? If “Yes,” complete Schedule L, Part III.........
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 ..........................
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
Yes
 
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 direct or indirect owner? If “Yes,” complete Schedule L, Part IV...
28c
 
No
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........
33
 
No
34
Was the organization related to any tax-exempt or taxable entity? If “Yes,” complete Schedule R, Part II, III, or IV, and Part V, line 1........................ Click to see attachment
34
Yes
 
35a
Did the organization have a controlled entity within the meaning of section 512(b)(13)?
35a
 
No
b
If ‘Yes’ to line 35a, 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...
35b
 
No
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.............
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 VI
37
 
No
38
Did the organization complete Schedule O and provide explanations in Schedule O for Part VI, lines 11b and 19? Note. All Form 990 filers are required to complete Schedule O. ............
38
Yes
 
Form 990 (2012)
Form 990 (2012)
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
295
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
9,061
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
Yes
 
b
If “Yes,” has it filed a Form 990-T for this year? If “No,” provide an explanation in Schedule O.....
3b
Yes
 
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, securities account, or other financial account)?..........................
4a
 
No
b
If "Yes," enter the name of the foreign country: MediumBullet
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 as charitable contributions?...
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. See the instructions for additional information the organization must report on Schedule O.
13a
 
 
b
Enter the 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 amount of reserves on hand ............
13c
 
14a
Did the organization receive any payments for indoor tanning services during the tax year?.....
14a
 
No
b
If "Yes," has it filed a Form 720 to report these payments? If “No,” provide an explanation in Schedule O..
14b
 
 
Form 990 (2012)
Form 990 (2012)
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
If there are material differences in voting rights among members of the governing body, or if the governing body delegated broad authority to an executive committee or similar committee, explain in Schedule O.
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
Did the organization have members or stockholders? ................
6
Yes
 
7a
Did the organization have members, stockholders, or other persons who had the power to elect or appoint one or more members of the governing body? ....................
7a
 
No
b
Are any governance decisions of the organization reserved to (or subject to approval by) members, stockholders, or persons other than the governing body? ...................
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
Did the organization have local chapters, branches, or affiliates? ............
10a
 
No
b
If “Yes,” did the organization have written policies and procedures governing the activities of such chapters, affiliates, and branches to ensure their operations are consistent with the organization's exempt purposes?
10b
 
 
11a
Has the organization provided a complete 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 this Form 990. .....
12a
Did the organization have a written conflict of interest policy? If “No,” go to line 13.......
12a
Yes
 
b
Were officers, directors, or trustees, and key employees required to disclose annually interests that could give rise to conflicts? ..........................
12b
Yes
 
c
Did the organization regularly and consistently monitor and enforce compliance with the policy? If “Yes,” describe in Schedule O how this was done.......................
12c
Yes
 
13
Did the organization have a written whistleblower policy? ...............
13
Yes
 
14
Did 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 15a or 15b, 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
Yes
 
b
If “Yes,” did the organization follow a written policy or procedure requiring the organization to evaluate its participation in joint venture arrangements under applicable federal tax law, and take steps to safeguard the organization’s exempt status with respect to such arrangements? ............
16b
 
No
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 made these available. Check all that apply.
19
Describe in Schedule O whether (and if so, how), the organization made its governing documents, conflict of interest policy, and financial statements available to the public during the tax year.
20
State the name, physical address, and telephone number of the person who possesses the books and records of the organization:
MediumBulletHelena Schulz224 E BroadwaylouisvilleKY40202 (502) 629-8263
Form 990 (2012)
Form 990 (2012)
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. 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 organization compensated any current officer, director, or trustee.
(A)
Name and Title 		(B)
Average hours per week (list any hours for related organizations below dotted line) 		(C)
Position (do not check more than one box, unless person is both an officer and a director/trustee) 		(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) STEPHEN A WILLIAMS........................................................................
President/Trustee
 10.00
.......................40.00 		X   X       0 4,686,492 287,592
(2) CAROLYN GATZ........................................................................
Chair Emeritus
 1.00
.......................2.50 		X           0 1,500 0
(3) CHERYL BALKENHOL........................................................................
Trustee (partial year)
 1.00
.......................2.50 		X           0 0 0
(4) CRAIG D GRANT........................................................................
Trustee
 1.00
.......................2.50 		X           0 1,500 0
(5) DONALD H ROBINSON........................................................................
Trustee
 1.00
.......................5.50 		X           0 0 0
(6) EDIE NIXON........................................................................
Trustee
 1.00
.......................2.50 		X           0 1,500 0
(7) G H NIXON........................................................................
Chair Emeritus (Ex-Officio)
 1.00
.......................2.50 		X           0 1,500 0
(8) G HUNT ROUSAVALL........................................................................
Trustee
 1.00
.......................5.50 		X           0 1,500 0
(9) GAIL LYTTLE........................................................................
Trustee
 1.00
.......................2.50 		X           0 1,500 0
(10) GARY L STEWART........................................................................
Trustee
 1.00
.......................4.50 		X           0 1,500 0
(11) GREGORY E MAYES........................................................................
Trustee (partial year)
 1.00
.......................6.50 		X           0 1,500 0
(12) JAMES L SUBLETT MD........................................................................
Trustee
 1.00
.......................2.50 		X           0 1,500 0
(13) JOSEPH J MCGOWAN ED D........................................................................
Trustee
 1.00
.......................2.50 		X           0 1,500 0
(14) JOSEPH PARADIS III........................................................................
Chairman
 1.00
.......................11.50 		X           0 0 0
(15) KEVIN J HABLE........................................................................
Trustee
 1.00
.......................2.50 		X           0 0 0
(16) LOUIS S HEUSER MD........................................................................
Trustee
 1.00
.......................2.50 		X           0 1,500 0
(17) MARIA GERWING HAMPTON........................................................................
Vice Chair
 1.00
.......................7.50 		X           0 1,500 0
Form 990 (2012)
Form 990 (2012)
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 (list any hours for related organizations below dotted line) 		(C)
Position (do not check more than one box, unless person is both an officer and a director/trustee) 		(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) MARIA L BOUVETTE........................................................................
Trustee
 1.00
.......................2.50 		X           0 1,500 0
(19) MARTHA K HEYBURN MD........................................................................
Trustee
 1.00
.......................3.50 		X           0 1,500 0
(20) MITCH NICHOLS........................................................................
Trustee
 1.00
.......................2.50 		X           0 0 0
(21) R K GUILLAUME........................................................................
Trustee
 1.00
.......................4.50 		X           0 1,500 0
(22) REV WILLIAM J SCHULTZ........................................................................
Trustee
 1.00
.......................4.50 		X           0 1,500 0
(23) RICHARD R IVEY........................................................................
Trustee
 1.00
.......................2.50 		X           0 1,500 0
(24) RICHARD S WOLF MD........................................................................
Trustee
 1.00
.......................3.50 		X           0 1,500 0
(25) ROBERT R GOODIN MD........................................................................
Trustee (partial year)
 1.00
.......................2.50 		X           0 1,500 0
(26) RONALD LEHOCKY MD........................................................................
Trustee (partial year)
 1.00
.......................4.50 		X           0 1,500 0
(27) WENDELL P WRIGHT........................................................................
Trustee
 1.00
.......................2.50 		X           0 0 0
(28) MICHAEL W GOUGH........................................................................
Treasurer
 10.00
.......................40.00 		    X       0 1,621,334 542,150
(29) ROBERT B AZAR........................................................................
Secretary
 10.00
.......................40.00 		    X       0 537,060 94,939
(30) RUSSELL F COX........................................................................
Vice President
 10.00
.......................40.00 		    X       0 1,984,644 876,355
(31) DOUGLAS WINKELHAKE........................................................................
Hospital President
 8.50
.......................41.50 		      X     181,938 437,184 128,806
(32) JOHN HARRYMAN........................................................................
Hospital President
 50.00
.......................1.00 		      X     610,260 0 131,118
(33) KEVIN WARDELL........................................................................
Hospital President
 50.00
.......................0 		      X     644,794 0 129,769
(34) ROBERT SHAW........................................................................
Hospital President
 50.00
.......................0 		      X     569,182 0 93,219
(35) STEVEN MACLAUCHLAN........................................................................
Hospital President
 50.00
.......................0 		      X     487,047 0 151,063
(36) THOMAS KMETZ........................................................................
Division President
 50.00
.......................1.00 		      X     669,481 0 138,461
(37) DAVID DOERING........................................................................
Physician
 50.00
.......................0 		        X   744,144 0 43,517
(38) JEFFREY GOLDBERG........................................................................
Physician
 50.00
.......................0 		        X   734,722 0 43,631
(39) JOHN HAMM........................................................................
Physician
 50.00
.......................0 		        X   741,036 0 46,183
(40) MARY GORDINIER........................................................................
Physician
 50.00
.......................0 		        X   741,139 0 18,763
(41) STEVEN PURSELL........................................................................
Physician
 50.00
.......................0 		        X   816,428 0 31,827
(42) JON COOPER........................................................................
Former VP Surgical Services
 12.50
.......................37.50 		          X 55,256 308,567 72,453
1b Sub-Total................MediumBullet
c Total from continuation sheets to Part VII, Section A....MediumBullet
d Total (add lines 1b and 1c)............MediumBullet 6,995,427 9,605,281 2,829,846
2
Total number of individuals (including but not limited to those listed above) who received more than $100,000 of reportable compensation from the organizationMediumBullet302
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. Report compensation for the calendar year ending with or within the organization’s tax year.
(A)
Name and business address 		(B)
Description of services 		(C)
Compensation
MORRISON MANAGEMENT SPECIALISTPO BOX 102289ATLANTAGA30368 DIETARY SERVICES 7,066,624
UNIVERSITY OF LOUISVILLE323 E CHESTNUTLOUISVILLEKY40202 RESIDENCY PROGRAM 5,056,598
PEDIATRIC ANESTHESIA ASSOCIATION462 S 4TH STREETLOUISVILLEKY40202 ANESTHESIA SERVICES 3,756,586
ANESTHESIOLOGY CONSULT ENTERPRISESPO BOX 23354LEXINGTONKY405233354 ANESTHESIA SERVICES 2,983,805
ANESTHESIA ASSOCIATES OF LOUISVILLE PSCPO BOX 950279LOUISVILLEKY40202 ANESTHESIA SERVICES 2,784,500
2
Total number of independent contractors (including but not limited to those listed above) who received more than $100,000 of compensation from the organization MediumBullet142
Form 990 (2012)
Form 990 (2012)
Page 9
Part VIII
Statement of Revenue
Check if Schedule O contains a response to any question in this Part VIII ..............
(A)
Total revenue 		(B)
Related or
exempt
function
revenue 		(C)
Unrelated
business
revenue 		(D)
Revenue
excluded from
tax under sections
512, 513, or 514
Contributions, Gifts, Grants and Other Similar Amounts 1a Federated campaigns..1a  
b Membership dues....1b  
c Fundraising events....1c  
d Related organizations...1d 10,134,372
e Government grants (contributions)1e 731,026
f All other contributions, gifts, grants, and
similar amounts not included above1f 		6,044,183
g Noncash contributions included in lines
1a-1f:$ 		 
h Total. Add lines 1a-1f.......MediumBullet 16,909,581
Program Service Revenue Business Code
2a NET PATIENT REVENUE 621110 1,462,033,165 1,457,151,761 4,881,404  
b HEALTHCARE EDUCATION 611710 2,182,453 2,182,453    
c     0      
d     0      
e     0      
f All other program service revenue . 0 0 0 0
g Total. Add lines 2a–2f........MediumBullet 1,464,215,618
Other Revenue 3 Investment income (including dividends, interest, and other similar amounts).......MediumBullet 8,064     8,064
4 Income from investment of tax-exempt bond proceeds..MediumBullet 0      
5 Royalties...........MediumBullet 0      
(i) Real (ii) Personal
6a Gross rents 1,142,755  
b Less: rental expenses 1,057,734  
c Rental income or (loss) 85,021 0
d Net rental income or (loss).......MediumBullet 85,021     85,021
(i) Securities (ii) Other
7a Gross amount from sales of assets other than inventory   133,978
b Less: cost or other basis and sales expenses   1,323,424
c Gain or (loss) 0 -1,189,446
d Net gain or (loss)..........MediumBullet -1,189,446     -1,189,446
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 0    
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 0      
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 0      
Miscellaneous Revenue Business Code
11a PURCHASING CO-OP INC 561499 2,623,790 2,509,468 114,322  
b PARKING INCOME 812930 1,089,592     1,089,592
c MEANINGFUL USE REIMBURSEMENT 621990 2,471,707 2,471,707    
d All other revenue .... 88,468 88,468 0 0
e Total. Add lines 11a–11d ...... MediumBullet 6,273,557
12 Total revenue. See Instructions......MediumBullet 1,486,302,395 1,464,403,857 4,995,726 -6,769
Form 990 (2012)
Form 990 (2012)
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).Check if Schedule O contains a response to any question in this Part IX ...............
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 United States. See Part IV, line 21 0  
2 Grants and other assistance to individuals in the United States. See Part IV, line 22 0  
3 Grants and other assistance to governments, organizations, and individuals outside the United States. See Part IV, lines 15 and 16 0  
4 Benefits paid to or for members 0  
5 Compensation of current officers, directors, trustees, and key employees .... 2,754,486 2,754,486    
6 Compensation not included above, to disqualified persons (as defined under section 4958(f)(1)) and persons described in section 4958(c)(3)(B) .... 229,680 229,680    
7 Other salaries and wages 423,773,508 423,773,508    
8 Pension plan accruals and contributions (include section 401(k) and 403(b) employer contributions) .... 22,950,199 22,950,199    
9 Other employee benefits ....... 60,160,363 60,160,363    
10 Payroll taxes ........... 28,715,292 28,715,292    
11 Fees for services (non-employees):        
a Management ...... 0      
b Legal ......... 468 468    
c Accounting ........... 0      
d Lobbying ........... 48,591 48,591    
e Professional fundraising services. See Part IV, line 17 0  
f Investment management fees ...... 0      
g Other (If line 11g amount exceeds 10% of line 25, column (A) amount, list line 11g expenses on Schedule O) ........ 109,591,083 109,591,083 0 0
12 Advertising and promotion .... 0      
13 Office expenses ....... 4,287,926 4,287,926    
14 Information technology ...... 0      
15 Royalties .. 0      
16 Occupancy ........... 16,920,063 16,920,063    
17 Travel ............ 1,195,727 1,195,727    
18 Payments of travel or entertainment expenses for any federal, state, or local public officials ...... 0      
19 Conferences, conventions, and meetings .... 0      
20 Interest ........... 34,684,029 34,684,029    
21 Payments to affiliates ....... 0      
22 Depreciation, depletion, and amortization ..... 56,561,588 56,561,588    
23 Insurance .............. 35,798,935 35,798,935    
24 Other expenses. Itemize expenses not covered above (List miscellaneous expenses in line 24e. If line 24e amount exceeds 10% of line 25, column (A) amount, list line 24e expenses on Schedule O.)
a MEDICAL SUPPLIES 304,087,641 304,087,641    
b ALLOCATED SUPPORT 152,901,868 123,774,062 29,127,806  
c BAD DEBT 64,517,983 64,517,983    
d PROVIDER TAX 20,129,732 20,129,732    
e All other expenses 21,967,058 21,967,058 0 0
25 Total functional expenses. Add lines 1 through 24e 1,361,276,220 1,332,148,414 29,127,806 0
26 Joint costs. Complete this line only if the organization reported in column (B) joint costs from a combined educational campaign and fundraising solicitation. Check here MediumBullet if following SOP 98-2 (ASC 958-720). 0      
Form 990 (2012)
Form 990 (2012)
Page 11
Part X Balance Sheet Check if Schedule O contains a response to any question in this Part X ...............
(A)
Beginning of year 		(B)
End of year
Assets 1 Cash—non-interest-bearing ............. 28,915 1 12,609
2 Savings and temporary cash investments .........   2  
3 Pledges and grants receivable, net ...........   3  
4 Accounts receivable, net ............. 151,995,025 4 178,119,023
5 Loans and other receivables from current and former officers, directors, trustees, key employees, and highest compensated employees. Complete Part II of
Schedule L ..................
  5 0
6 Loans and other receivables from other disqualified persons (as defined under section 4958(f)(1)), persons described in section 4958(c)(3)(B), and contributing employers and sponsoring organizations of section 501(c)(9) voluntary employees' beneficiary organizations (see instructions) Complete Part II of Schedule L
  6 0
7 Notes and loans receivable, net .............   7  
8 Inventories for sale or use .............. 43,849,372 8 44,352,563
9 Prepaid expenses and deferred charges .......... 1,481,623 9 1,578,601
10a Land, buildings, and equipment: cost or other basis. Complete Part VI of Schedule D 10a 1,163,934,478
b Less: accumulated depreciation ..... 10b 613,440,066 547,121,278 10c 550,494,412
11 Investments—publicly traded securities ..........   11  
12 Investments—other securities. See Part IV, line 11 ..... 0 12 0
13 Investments—program-related. See Part IV, line 11 ..... 0 13 0
14 Intangible assets ............... 4,446,271 14 7,715,022
15 Other assets. See Part IV, line 11 ........... 212,550,150 15 308,672,987
16 Total assets. Add lines 1 through 15 (must equal line 34)...... 961,472,634 16 1,090,945,217
Liabilities 17 Accounts payable and accrued expenses ......... 53,192,462 17 67,006,157
18 Grants payable .................   18  
19 Deferred revenue ................ 4,465 19  
20 Tax-exempt bond liabilities .............   20  
21 Escrow or custodial account liability. Complete Part IV of Schedule D..   21  
22 Loans and other payables to current and former officers, directors, trustees, key employees, highest compensated employees, and disqualified
persons. Complete Part II of Schedule L..........   22 0
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 (including federal income tax, payables to related third parties, and other liabilities not included on lines 17-24). Complete Part X of Schedule D.................... 27,783,675 25 18,436,657
26 Total liabilities. Add lines 17 through 25......... 80,980,602 26 85,442,814
Net Assets or Fund Balance Organizations that follow SFAS 117 (ASC 958), check here MediumBullet and complete lines 27 through 29, and lines 33 and 34.
27 Unrestricted net assets .............. 871,062,342 27 996,745,075
28 Temporarily restricted net assets ........... 9,429,690 28 8,757,328
29 Permanently restricted net assets ...........   29  
Organizations that do not follow SFAS 117 (ASC 958), 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 ........... 880,492,032 33 1,005,502,403
34 Total liabilities and net assets/fund balances ........ 961,472,634 34 1,090,945,217
Form 990 (2012)
Form 990 (2012)
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
1,486,302,395
2
Total expenses (must equal Part IX, column (A), line 25) ............
2
1,361,276,220
3
Revenue less expenses. Subtract line 2 from line 1 ..............
3
125,026,175
4
Net assets or fund balances at beginning of year (must equal Part X, line 33, column (A)) ..
4
880,492,032
5
Net unrealized gains (losses) on investments ...............
5
 
6
Donated services and use of facilities .................
6
 
7
Investment expenses .....................
7
 
8
Prior period adjustments .....................
8
 
9
Other changes in net assets or fund balances (explain in Schedule O) ........
9
-15,804
10
Net assets or fund balances at end of year. Combine lines 3 through 9 (must equal Part X, line 33, column (B))
10
1,005,502,403
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
If ‘Yes,’ check a box below to indicate whether the financial statements for the year were compiled or reviewed on a separate basis, consolidated basis, or both:
b
Were the organization’s financial statements audited by an independent accountant?
2b
Yes
 
If ‘Yes,’ check a box below to indicate whether the financial statements for the year were audited on a separate basis, consolidated basis, or both:
c
If “Yes,” to line 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?
2c
Yes
 
If the organization changed either its oversight process or selection process during the tax year, explain in Schedule O.
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 (2012)
Form 990, Special Condition Description:
Special Condition Description
Additional Data


Software ID: 12000266
Software Version: v2012.1.0
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
2012
Open to Public
Inspection
Name of the organization
NORTON HOSPITALS INC
 
Employer identification number

61-0703799
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 supported organization? ................
11g(i)
 
 
(ii) A family member of a person described in (i) above? ......................
11g(ii)
 
 
(iii) A 35% controlled entity of a person described in (i) or (ii) above? ................
11g(iii)
 
 
h
Provide the following information about the supported organization(s).
(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 monetary support
Yes No Yes No Yes No
Total                  

For Paperwork Reduction Act Notice, see the Instructions for Form 990 or 990EZ.
Cat. No. 11285F
Schedule A (Form 990 or 990-EZ) 2012
Schedule A (Form 990 or 990-EZ) 2012
Page 2
Part II
Support Schedule for Organizations Described in Sections 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) right arrow (a) 2008 (b) 2009 (c) 2010 (d) 2011 (e) 2012 (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) right arrow (a) 2008 (b) 2009 (c) 2010 (d) 2011 (e) 2012 (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. Do not include gain or loss from the sale of capital assets (Explain in Part IV.)..            
11 Total support (Add lines 7 through 10).            
12
12
 
13
First five years. If the Form 990 is for the organization's first, second, third, fourth, or fifth tax year as a 501(c)(3) organization, check this box and stop here........................................right arrow
Section C. Computation of Public Support Percentage
14
14
 
15
15
 
16a
b
17a
b
18
Private foundation. If the organization did not check a box on line 13, 16a, 16b, 17a, or 17b, check this box and see
instructions ..................................................... right arrow
Schedule A (Form 990 or 990-EZ) 2012
Schedule A (Form 990 or 990-EZ) 2012
Page 3
Part III
Support Schedule for Organizations Described in Section 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) right arrow (a) 2008 (b) 2009 (c) 2010 (d) 2011 (e) 2012 (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) right arrow (a) 2008 (b) 2009 (c) 2010 (d) 2011 (e) 2012 (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) 2012
Schedule A (Form 990 or 990-EZ) 2012
Page 4
Part IV
Supplemental Information. Complete this part to provide the explanations required by Part II, line 10; Part II, line 17a or 17b; and 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) 2012

Additional Data


Software ID: 12000266
Software Version: v2012.1.0
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
2012
Name of the organization
NORTON HOSPITALS INC
 
Employer identification number

61-0703799
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 on line H of its
Form 990-EZ or on Part I, 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) (2012)

Schedule B (Form 990, 990-EZ, or 990-PF) (2012)
Page 2
Name of organization
NORTON HOSPITALS INC
  		Employer identification number

61-0703799
Part I
Contributors (see instructions). Use duplicate copies of Part I if additional space is needed.
     
(a)
No.		 (b)
Name, address, and ZIP + 4		 (c)
Total 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)
Total contributions		 (d)
Type of contribution
 
 
 

     
 
   

$  


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

     
 
   

$  


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

     
 
   

$  


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

     
 
   

$  


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

     
 
   

$  


(Complete Part II if there is a noncash contribution.)
Schedule B (Form 990, 990-EZ, or 990-PF) (2012)

Schedule B (Form 990, 990-EZ, or 990-PF) (2012)
Page 3
Name of organization
NORTON HOSPITALS INC
  		Employer identification number

61-0703799
Part II
Noncash Property (see instructions). Use duplicate copies of Part II if additional space is needed.
     
(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) (2012)

Schedule B (Form 990, 990-EZ, or 990-PF) (2012)
Page 4
Name of organization
NORTON HOSPITALS INC
  		Employer identification number

61-0703799
Part III
Exclusively religious, charitable, etc., individual contributions to section 501(c)(7), (8), or (10) organizations
that total 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 $1,000 or less for the year. (Enter this information once. See instructions.) Arrow Bullet$  
Use duplicate copies of Part III if additional space is needed.
(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) (2012)

Additional Data


Software ID: 12000266
Software Version: v2012.1.0
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
2012
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 35c (Proxy Tax), then
Round Bullet Section 501(c)(4), (5), or (6) organizations: Complete Part III.
Name of the organization
NORTON HOSPITALS INC
 
Employer identification number

61-0703799
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 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 function 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 Paperwork Reduction Act Notice, see the instructions for Form 990 or 990-EZ.
Cat. No. 50084S
Schedule C (Form 990 or 990-EZ) 2012

Schedule C (Form 990 or 990-EZ) 2012
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 SchCMd Bulletexpenses, and share of excess lobbying expenditures).
B Check SchCMd Bullet
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) 2009 (b) 2010 (c) 2011 (d) 2012 (e) Total
             
2a Lobbying nontaxable amount          
             
b Lobbying ceiling amount
(150% of line 2a, column(e)) 		         
             
c Total lobbying expenditures          
             
d Grassroots nontaxable amount          
             
e Grassroots ceiling amount
(150% of line 2d, column (e))		          
             
f Grassroots lobbying expenditures          
Schedule C (Form 990 or 990-EZ) 2012


Schedule C (Form 990 or 990-EZ) 2012
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)).
For each “Yes” response to lines 1a through 1i below, provide in Part IV a detailed description of the lobbying activity.
(a)
No
Yes
(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)? ....
Yes
 
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? ........
Yes
 
903
h
Rallies, demonstrations, seminars, conventions, speeches, lectures, or any similar means? ......
 
No
 
i
Other activities? ..........................
Yes
 
48,591
j
Total. Add lines 1c through 1i ...............................
49,494
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 carry over 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) and if either (a) BOTH Part III-A, lines 1 and 2, are answered “No” OR (b) Part III-A, line 3, is answered “Yes."
1
Dues, assessments and similar amounts from members .....................
1
 
2
Section 162(e) nondeductible 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; Part II-A (affiliated group list); Part II-A, line 2; and Part ll-B, line 1. Also, complete this part for any additional information.
Identifier Return Reference Explanation
Description of the activities reported on Lines 1a through 1i Schedule C, Part II-B, Line 1 AN EMPLOYEE OF NORTON HOSPITALS, INC. (NHI) IS ENGAGED IN LOBBYING HEALTH POLICY ISSUES AT THE STATE LEVEL WITH THE EXECUTIVE AND LEGISLATIVE BRANCHES OF KENTUCKY STATE GOVERNMENT. NHI IS NOT REGISTERED TO LOBBY AT THE FEDERAL LEVEL. LOBBYING COMPENSATION PAID AS REPORTED TO THE KENTUCKY LEGISLATIVE ETHICS COMMISSION IS $903. NHI PAYS DUES TO THE KENTUCKY HOSPITAL ASSOCIATION. A PORTION OF THOSE DUES IN THE AMOUNT OF $48,591 IS SPENT ON LOBBYING.
Schedule C (Form 990 or 990EZ) 2012

Additional Data


Software ID: 12000266
Software Version: v2012.1.0

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, 11a, 11b, 11c, 11d, 11e, 11f, 12a, or 12b
SchDMd Bullet Attach to Form 990. SchDMd Bullet See separate instructions.
OMB No. 1545-0047
2012
Open to Public Inspection
Name of the organization
NORTON HOSPITALS INC
 
Employer identification number

61-0703799
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 can 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 through 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, and not on a historic structure listed in the National Register .................... 2d  
3
Number of conservation easements modified, transferred, released, extinguished, or terminated by the organization during
the tax 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 section 170(h)(4)(B)(ii)? .......................................
9
In Part XIII, 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 (ASC 958), 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 XIII, the text of the footnote to its financial statements that describes these items.
b
If the organization elected, as permitted under SFAS 116 (ASC 958), 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 (ASC 958) 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 Paperwork Reduction Act Notice, see the Instructions for Form 990.
Cat. No. 52283D
Schedule D (Form 990) 2012

Schedule D (Form 990) 2012
Page 2
Part III
Organizations Maintaining Collections of Art, Historical Treasures, or Other Similar Assets (continued)
3
Using the organization’s acquisition, 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 XIII.
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 XIII 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 XIII. Check here if the explanation has been provided in Part XIII ........
Part V
Endowment Funds. Complete if the organization answered "Yes" to Form 990, Part IV, line 10.
(a)Current year (b)Prior year b (c)Two years back (d)Three years back (e)Four years back
1a Beginning of year balance ....          
b Contributions ........          
c Net investment earnings, gains, and 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 current year end balance (line 1g, column (a)) held as:
a
Board designated or quasi-endowment SchDMd Bullet  
b
Permanent endowment SchDMd Bullet  
c
Temporarily restricted endowment SchDMd Bullet  
The percentages in lines 2a, 2b, and 2c should equal 100%.
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 XIII the intended uses of the organization's endowment funds.
Part VI
Land, Buildings, and Equipment. See Form 990, Part X, line 10.
Description of property (a) Cost or other basis (investment) (b)Cost or other basis (other) (c) Accumulated depreciation (d) Book value
1a Land .................   23,866,564 23,866,564
b Buildings ................   582,338,427 220,971,712 361,366,715
c Leasehold improvements ............       0
d Equipment ................   510,576,494 386,943,414 123,633,080
e Other .................   47,152,993 5,524,940 41,628,053
Total. Add lines 1a through 1e. (Column (d) must equal Form 990, Part X, column (B), line 10(c).).......SchDMdBullet 550,494,412
Schedule D (Form 990) 2012

Schedule D (Form 990) 2012
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    
Other








Total. (Column (b) must equal Form 990, Part X, col. (B) line 12.)Small Bullet  
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) must 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) MISCELLANEOUS RECEIVABLES 3,393,319
(2) INVESTMENT IN PREMIER PURCHASING PARTNERS LP 8,701,450
(3) RECEIVABLE FROM AFFILIATE 295,801,883
(4) PHYSICIAN GUARANTEE ASSET 776,335





Total. (Column (b) must equal Form 990, Part X, col.(B) line 15.)...........Small Bullet 308,672,987
Part X
Other Liabilities. See Form 990, Part X, line 25.
1.(a) Description of liability (b) Book value
Federal income taxes 0
DUE TO THIRD PARTY PAYORS 11,572,987
ASSET RETIREMENT OBLIGATION 6,087,335
PHYSICIAN GURANTEE LIABILITY 776,335






Total. (Column (b) must equal Form 990, Part X, col.(B) line 25.)Small Bullet 18,436,657
2. Fin 48 (ASC 740) Footnote. In Part XIII, 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 (ASC 740). Check here if the text of the footnote has been provided in Part XIII .....................................................
Schedule D (Form 990) 2012

Schedule D (Form 990) 2012
Page 4
Part XI Reconciliation of Revenue per Audited Financial Statements With Revenue per Return
1 Total revenue, gains, and other support per audited financial statements ....... 1 1,489,491,960
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 XIII.) ............ 2d 9,722,493
e Add lines 2a through 2d ..................... 2e 9,722,493
3 Subtract line 2e from line 1..................... 3 1,479,769,467
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 XIII.) ........... 4b 6,532,928
c Add lines 4a and 4b....................... 4c 6,532,928
5 Total revenue. Add lines 3 and 4c. (This must equal Form 990, Part I, line 12.) ...... 5 1,486,302,395
Part XII Reconciliation of Expenses per Audited Financial Statements With Expenses per Return
1 Total expenses and losses per audited financial statements ........... 1 1,369,809,265
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 XIII.) ............ 2d 8,533,045
e Add lines 2a through 2d...................... 2e 8,533,045
3 Subtract line 2e from line 1..................... 3 1,361,276,220
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 XIII.) ............ 4b 0
c Add lines 4a and 4b....................... 4c 0
5 Total expenses. Add lines 3 and 4c. (This must equal Form 990, Part I, line 18.) ...... 5 1,361,276,220
Part XIII
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, line 2; Part XI, lines 2d and 4b; and Part XII, lines 2d and 4b. Also complete this part to provide any additional information.
Identifier Return Reference Explanation
FIN 48 (ASC 740) footnote Schedule D, Part X, Line 2 NORTON HEALTHCARE, INC. AND AFFILIATES (NORTON HOSPITALS, INC., COMMUNITY MEDICAL ASSOCIATES, NORTON ENTERPRISES, INC., NORTON HEALTHCARE FOUNDATION, INC., NORTON PROPERTIES, INC., THE CHILDREN'S HOSPITAL FOUNDATION, INC. ) COMPLETED AN ANALYSIS OF ITS TAX POSITION AT DECEMBER 31, 2012 AND 2011, AND DETERMINED THAT NO MATERIAL AMOUNTS WERE REQUIRED TO BE RECOGNIZED UNDER ACCOUNTING STANDARDS CODIFICATION 740, INCOME TAXES, IN THE COMBINED FINANCIAL STATEMENTS AT DECEMBER 31, 2012 AND 2011.
Other revenues in audited financial statements not in form 990 Schedule D, Part XI, Line 2d RENTAL INCOME INTERNAL - 8533046; GAIN(LOSS) ON SALE OF ASSET - 1189447;
Other revenues in form 990 not in audited financial statements Schedule D, Part XI, Line 4b CONTRIBUTIONS & GRANTS - 6532928;
Other expenses in audited financial statements not in form 990 Schedule D, Part XII, Line 2d RENTAL INCOME - 7475312; REIMBURSEMENT OF UTILITY EXPENSE - 238990; PHYSICIAN PRACTICE SUBSIDY - 818743;
Schedule D (Form 990) 2012

Additional Data


Software ID: 12000266
Software Version: v2012.1.0




SCHEDULE H (Form 990)
Department of the Treasury
Internal Revenue Service
Hospitals
MediumBullet Complete if the organization answered "Yes" to Form 990, Part IV, question 20.
MediumBullet Attach to Form 990. MediumBullet See separate instructions.
OMB No. 1545-0047
2012
Open to Public Inspection
Name of the organization
NORTON HOSPITALS INC
 
Employer identification number

61-0703799
Part I
Financial Assistance and Certain Other Community Benefits at Cost
Yes
No
1a
Did the organization have a financial assistance policy during the tax year? If "No," skip to question 6a ...
1a
Yes
 
b
If "Yes," was it a written policy? .......................
1b
Yes
 
2
If the organization had multiple hospital facilities, indicate which of the following best describes application of the financial assistance policy to its various hospital facilities during the tax year.
3
Answer the following based on the financial assistance eligibility criteria that applied to the largest number of the organization's patients during the tax year.
a
Did the organization use Federal Poverty Guidelines (FPG) as a factor in determining eligibility for providing free care?
If "Yes," indicate which of the following was the FPG family income limit for eligibility for free care:
3a
Yes
 
b
Did the organization use FPG as a factor in determining eligibility for providing discounted care? If "Yes," indicate
which of the following was the family income limit for eligibility for discounted care: .........
3b
 
No
%
c
If the organization used factors other than FPG in determining eligibility, describe in Part VI the income based criteria for determining eligibility for free or discounted care. Include in the description whether the organization used an asset test or other threshold, regardless of income, as a factor in determining eligibility for free or discounted care.
4
Did the organization's financial assistance policy that applied to the largest number of its patients during the tax year provide for free or discounted care to the "medically indigent"? ..............

4

Yes

 
5a
Did the organization budget amounts for free or discounted care provided under its financial assistance policy during the tax year? ............................

5a

Yes

 
b
If "Yes," did the organization's financial assistance expenses exceed the budgeted amount? ......
5b
Yes
 
c
If "Yes" to line 5b, as a result of budget considerations, was the organization unable to provide free or discountedcare to a patient who was eligibile for free or discounted care? ..............
5c
 
No
6a
Did the organization prepare a community benefit report during the tax year? ..........
6a
Yes
 
b
If "Yes," did the organization make it available to the public? ..............
6b
Yes
 
Complete the following table using the worksheets provided in the Schedule H instructions. Do not submit these worksheets with the Schedule H.
7
Financial Assistance and Certain Other Community Benefits at Cost
Financial Assistance and
Means-Tested
Government Programs
 (a) Number of activities or programs (optional) (b) Persons served (optional) (c) Total community benefit expense (d) Direct offsetting revenue (e) Net community benefit expense (f) Percent of total expense
a Financial Assistance at cost
(from Worksheet 1) .. 		    11,247,096 0 11,247,096 0.870 %
b Medicaid (from Worksheet 3,
column a) .... 		    282,272,877 201,835,861 80,437,016 6.200 %
c Costs of other means-tested
government programs (from
Worksheet 3, column b) . 		    9,184,772 4,085,730 5,099,042 0.390 %
d Total Financial Assistance
and Means-Tested
Government Programs . 		0 0 302,704,745 205,921,591 96,783,154 7.460 %
Other Benefits
     10,827,022 0 10,827,022 0.840 %
e Community health
improvement services and
community benefit operations
(from Worksheet 4) ..
f Health professions education
(from Worksheet 5) .. 		    27,996,332 3,803,991 24,192,341 1.870 %
g Subsidized health services
(from Worksheet 6) .. 		    0 0 0 0 %
h Research (from Worksheet 7)     3,900,613 0 3,900,613 0.300 %
i Cash and in-kind
contributions for community
benefit (from Worksheet 8) 		    1,046,453 0 1,046,453 0.080 %
j Total. Other Benefits .. 0 0 43,770,420 3,803,991 39,966,429 3.090 %
k Total. Add lines 7d and 7j . 0 0 346,475,165 209,725,582 136,749,583 10.550 %
For Paperwork Reduction Act Notice, see the Instructions for Form 990. Cat. No. 50192T Schedule H (Form 990) 2012
Schedule H (Form 990) 2012
Page
Part II
Community Building Activities Complete this table if the organization conducted any community building activities during the tax year, and describe in Part VI how its community building activities promoted the health of the communities it serves.
(a) Number of activities or programs (optional) (b) Persons served (optional) (c) Total community building expense (d) Direct offsetting
revenue 		(e) Net community building expense (f) Percent of total expense
1 Physical improvements and housing     0 0 0 0 %
2 Economic development     25,000 0 25,000 0 %
3 Community support     994,736 0 994,736 0.070 %
4 Environmental improvements     0 0 0 0 %
5 Leadership development and training for community members     0 0 0 0 %
6 Coalition building     1,904 0 1,904 0 %
7 Community health improvement advocacy     2,469 0 2,469 0 %
8 Workforce development     0 0 0 0 %
9 Other     0 0 0 0 %
10 Total 0 0 1,024,109 0 1,024,109 0.080 %
Part III
Bad Debt, Medicare, & Collection Practices
Section A. Bad Debt Expense
Yes
No
1
Did the organization report bad debt expense in accordance with Heathcare Financial Management Association Statement No. 15? ..........................
1
Yes
 
2
Enter the amount of the organization's bad debt expense. Explain in Part VI the methodology used by the organization to estimate this amount. ......
2
64,517,983
3
Enter the estimated amount of the organization's bad debt expense attributable to patients eligible under the organization's financial assistance policy. Explain in Part VI the methodology used by the organization to estimate this amount and the rationale, if any, for including this portion of bad debt as community benefit. ......
3
5,709,822
4
Provide in Part VI the text of the footnote to the organization’s financial statements that describes bad debt expense or the page number on which this footnote is contained in the attached financial statements.
Section B. Medicare
5
Enter total revenue received from Medicare (including DSH and IME).....
5
337,874,082
6
Enter Medicare allowable costs of care relating to payments on line 5.....
6
361,484,195
7
Subtract line 6 from line 5. This is the surplus (or shortfall)........
7
-23,610,113
8
Describe in Part VI the extent to which any shortfall reported in line 7 should be treated as community benefit.Also describe in Part VI the costing methodology or source used to determine the amount reported on line 6.Check the box that describes the method used:
Section C. Collection Practices
9a
Did the organization have a written debt collection policy during the tax year? ..........
9a
Yes
 
b
If "Yes," did the organization’s collection policy that applied to the largest number of its patients during the tax year contain provisions on the collection practices to be followed for patients who are known to qualify for financial assistance? Describe in Part VI.......................

9b

Yes

 
Part IV
Management Companies and Joint Ventures(owned 10% or more by officers, directors, trustees, key employees, and physicians—see instructions)
(a) Name of entity (b) Description of primary
activity of entity 		(c) Organization's
profit % or stock
ownership % 		(d) Officers, directors,
trustees, or key
employees' profit %
or stock ownership % 		(e) Physicians'
profit % or stock
ownership %
1
2
3
4
5
6
7
8
9
10
11
12
13
Schedule H (Form 990) 2012
Schedule H (Form 990) 2012
Page
Part VFacility Information
Section A. Hospital Facilities
(list in order of size from largest to smallest—see instructions)
How many hospital facilities did the organization operate during the tax year?5
Name, address, and primary website address 		Licensed Hospital General-Medical-Surgical Children's Hospital Teaching Hospital Critical Hospital Research Facility ER-24Hours ER-Other Other (Describe) Facility reporting group
1 NORTON HOSPITAL
200 E CHESTNUT ST
LOUISVILLE,KY40202 		X X   X     X     A
2 KOSAIR CHILDREN'S HOSPITAL
231 E CHESTNUT ST
LOUISVILLE,KY40202 		X X X X     X     A
3 NORTON AUDUBON HOSPITAL
ONE AUDUBON PLAZA DRIVE
LOUISVILLE,KY40217 		X X   X     X     A
4 NORTON SUBURBAN HOSPITAL
4001 DUTCHMANS LANE
LOUISVILLE,KY40207 		X X   X     X     A
5 NORTON BROWNSBORO HOSPITAL
4950 NORTON HEALTHCARE BLVD
LOUISVILLE,KY40241 		X X         X     A
Schedule H (Form 990) 2012
Schedule H (Form 990) 2012
Page
Part VFacility Information (continued)

Section B. Facility Policies and Practices

(Complete a separate Section B for each of the hospital facilities or facility reporting groups listed in Part V, Section A)
A
Name of hospital facility or facility reporting group  
For single facility filers only: line Number of Hospital Facility (from Schedule H, Part V, Section A) 1
Yes No
Community Health Needs Assessment (Lines 1 through 8c are optional for tax years begining on or before March 23, 2012)
1 During the tax year or either of the two immediately preceding tax years, did the hospital facility conduct a community health needs assessment (CHNA)? If "No," skip to line 9.................... 1   No
If “Yes,” indicate what the CHNA report describes (check all that apply):
a
b
c
d
e
f
g
h
i
j
2 Indicate the tax year the hospital facility last conducted a CHNA: 20  
3 In conducting its most recent CHNA, did the hospital facility take into account input from representatives of the community served by the hospital facility, including those with special knowledge of or expertise in public health? If “Yes,” describe in Part VI how the hospital facility took into account input from persons who represent the community, and identify the persons the hospital facility consulted .................... 3    
4 Was the hospital facility’s CHNA conducted with one or more other hospital facilities? If “Yes,” list the other hospital facilities in Part VI................................ 4    
5 Did the hospital facility make its CHNA report widely available to the public? ............. 5    
If “Yes,” indicate how the CHNA report was made widely available (check all that apply):
a
b
c
6 If the hospital facility addressed needs identified in its most recently conducted CHNA, indicate how (check all that apply to date):
a
b
c
d
e
f
g
h
i
7 Did the hospital facility address all of the needs identified in its most recently conducted CHNA? If “No,” explain in Part VI which needs it has not addressed and the reasons why it has not addressed such needs ........ 7    
8a Did the organization incur an excise tax under section 4959 for the hospital facility's failure to conduct a CHNA as required by section 501(r)(3)? ........................... 8a    
b If "Yes" to line 8a, did the organization file Form 4720 to report the section 4959 excise tax? ...... 8b    
c If "Yes" to line 8b, what is the total amount of section 4959 excise tax the organization reported on Form 4720 for all of its hospital facilities? $  

Schedule H (Form 990) 2012
Schedule H (Form 990) 2012
Page
Part VFacility Information (continued)

Financial Assistance Policy Yes No
9 Did the hospital facility have in place during the tax year a written financial assistance policy that:
Explained eligibility criteria for financial assistance, and whether such assistance includes free or discounted care? 9 Yes  
10 Used federal poverty guidelines (FPG) to determine eligibility for providing free care?........... 10 Yes  
If "Yes," indicate the FPG family income limit for eligibility for free care: 300%
If "No," explain in Part VI the criteria the hospital facility used.
11 Used FPG to determine eligibility for providing discounted care?................. 11   No
If “Yes,” indicate the FPG family income limit for eligibility for discounted care:   %
If "No," explain in Part VI the criteria the hospital facility used.
12 Explained the basis for calculating amounts charged to patients?................. 12 Yes  
If “Yes,” indicate the factors used in determining such amounts (check all that apply):
a
b
c
d
e
f
g
h
13 Explained the method for applying for financial assistance?................... 13 Yes  
14 Included measures to publicize the policy within the community served by the hospital facility?....... 14 Yes  
If “Yes,” indicate how the hospital facility publicized the policy (check all that apply):
a
b
c
d
e
f
g
Billing and Collections
15 Did the hospital facility have in place during the tax year a separate billing and collections policy, or a written financial assistance policy (FAP) that explained actions the hospital facility may take upon non-payment?....... 15 Yes  
16 Check all of the following actions against an individual that were permitted under the hospital facility's policies during the tax year before making reasonable efforts to determine the patient’s eligibility under the facility’s FAP:
a
b
c
d
e
17 Did the hospital facility or an authorized third party perform any of the following actions during the tax year before making reasonable efforts to determine the patient’s eligibility under the facility’s FAP?.......... 17   No
If “Yes,” check all actions in which the hospital facility or a third party engaged:
a
b
c
d
e
Schedule H (Form 990) 2012
Schedule H (Form 990) 2012
Page
Part VFacility Information (continued)

18 Indicate which efforts the hospital facility made before initiating any of the actions listed in line 17 (check all that apply):
a
b
c
d
e
Policy Relating to Emergency Medical Care
Yes No
19 Did the hospital facility have in place during the tax year a written policy relating to emergency medical care that requires the hospital facility to provide, without discrimination, care for emergency medical conditions to individuals regardless of their eligibility under the hospital facility’s financial assistance policy?.......... 19 Yes  
If “No,” indicate why:
a
b
c
d
Charges to Individuals Eligible for Assistance under the FAP (FAP-Eligible Individuals)
20 Indicate how the hospital facility determined, during the tax year, the maximum amounts that can be charged to FAP-eligible individuals for emergency or other medically necessary care.
a
b
c
d
21 During the tax year, did the hospital facility charge any FAP-eligible individuals to whom the hospital facility provided emergency or other medically necessary services, more than the amounts generally billed to individuals who had insurance covering such care? ............................ 21   No
If “Yes,” explain in Part VI.
22 During the tax year, did the hospital facility charge any FAP-eligible individuals an amount equal to the gross charge for any service provided to that individual? ......................... 22   No
If “Yes,” explain in Part VI.
Schedule H (Form 990) 2012
Schedule H (Form 990) 2012
Page
Part VFacility Information (continued)

Section C. Other Health Care Facilities That Are Not Licensed, Registered, or Similarly Recognized as a Hospital Facility
(list in order of size, from largest to smallest)
How many non-hospital health care facilities did the organization operate during the tax year?  
Name and address Type of Facility (describe)
1
2
3
4
5
6
7
8
9
10
Schedule H (Form 990) 2012
Schedule H (Form 990) 2012
Page
Part VI
Supplemental Information
Complete this part to provide the following information.
1 Required descriptions. Provide the descriptions required for Part I, lines 3c, 6a, and 7; Part II; Part III, lines 4, 8, and 9b; Part V, Section A; and Part V, Section B, lines 1j, 3, 4, 5c, 6i, 7, 10, 11, 12h, 14g, 16e, 17e, 18e, 19c, 19d, 20d, 21, and 22.
2 Needs assessment. Describe how the organization assesses the health care needs of the communities it serves, in addition to any needs assessments reported in Part V, Section B.
3 Patient education of eligibility for assistance. Describe how the organization informs and educates patients and persons who may be billed for patient care about their eligibility for assistance under federal, state, or local government programs or under the organization’s financial assistance policy.
4 Community information. Describe the community the organization serves, taking into account the geographic area and demographic constituents it serves.
5 Promotion of community health. Provide any other information important to describing how the organization’s hospital facilities or other health care facilities further its exempt purpose by promoting the health of the community (e.g., open medical staff, community board, use of surplus funds, etc.).
6 Affiliated health care system. If the organization is part of an affiliated health care system, describe the respective roles of the organization and its affiliates in promoting the health of the communities served.
7 State filing of community benefit report. If applicable, identify all states with which the organization, or a related organization, files a community benefit report.
8 Facility reporting group(s). If applicable, for each hospital facility in a facility reporting group provide the descriptions required for Part V, Section B, lines 1j, 3, 4, 5c, 6i, 7, 10, 11, 12h, 14g, 16e, 17e, 18e, 19c, 19d, 20d, 21, and 22.
Identifier ReturnReference Explanation
Eligibility criteria for free or discounted care Schedule H, Part I, Line 3c NORTON HOSPITALS, INC HAS A POLICY WHERE WE DISCOUNT CHARGES FOR ALL SELF PAY PATIENTS WITH NO INSURANCE COVERAGE REGARDLESS OF INCOME QUALIFICATIONS. BECAUSE OF THIS POLICY, WE RESPONDED NO TO LINE 3B IN THAT WE DO NOT UTILIZE FEDERAL POVERTY GUIDELINES FOR PROVIDING DISCOUNTED CARE.
Community benefit report prepared by related organization Schedule H, Part I, Line 6a COMMUNITY BENEFIT IS REPORTED UNDER NORTONHEALTHCARE.COM, PARENT OF NORTON HOSPITALS, INC.
Costing Methodology used to calculate financial assistance Schedule H, Part I, Line 7 THE COSTING METHODOLOGY USED TO CALCULATE THE COMMUNITY BENEFIT EXPENSES WERE TO CALCULATE THE COST BY HOSPITAL LOCATION (FIVE SEPARATE HOSPITAL LOCATIONS UNDER ONE MEDICARE PROVIDER NUMBER). THE COST WAS DETERMINED BASED ON A SPECIFIC LOCATION COST TO CHARGE RATIO. THE COST TO CHARGE RATIO WAS ADJUSTED FOR BAD DEBT EXPENSE AND OTHER COSTS. THE COST USED IN THE CALCULATION WAS REDUCED BY BAD DEBT EXPENSE, PROVIDER TAXES, GRADUATE MEDICAL EDUCATION EXPENSES, AND OTHER COSTS. THE ADJUSTED COST TO CHARGE RATIO WAS THEN MULTIPLIED TIMES THE GROSS CHARGES FOR QUALIFIED FINANCIAL ASSISTANCE CHARGES, MEDICAID AND THE STATE DISPROPORTIONATE PROGRAM (OTHER MEANS TESTED GOVERNMENT PROGRAM) TO OBTAIN THE SPECIFIC COMMUNITY BENEFIT EXPENSE.
COMMUNITY HEALTH IMPROVEMENT SERVICES AND COMMUNITY BENEFIT OPERATIONS SCHEDULE H, PART I, LINE 7E AMOUNTS PRESENTED ARE BASED ON ACTUAL SPENT FOR THOSE SERVICES AND BENEFITS PROVIDED DEEMED TO IMPROVE THE HEALTH OF THE COMMUNITIES IN WHICH WE SERVE AND CONFORM TO THE MISSION OF OUR EXEMPT PURPOSE.
Bad Debt Expense excluded from financial assistance calculation Schedule H, Part I, Line 7, column(f) 64,517,983
HEALTH PROFESSIONS EDUCATION SCHEDULE H, PART I, LINE 7F AMOUNTS PRESENTED ARE BASED UPON ACTUAL SPEND AND ARE IN CONFORMITY WITH AGREED UPON COMMITMENTS WITH VARIOUS EDUCATIONAL PROGRAMS.
RESEARCH SCHEDULE H, PART I, LINE 7H AMOUNTS PRESENTED REPRESENT ACTUAL SPEND TO SUPPORT COMMUNITY HEALTH RESEARCH REGARDING OUTCOMES AND EFFECTIVENESS OF TREATMENTS.
CASH AND IN-KIND CONTRIBUTIONS FOR COMMUNITY BENEFITS SCHEDULE H, PART I, LINE 7I IN KEEPING WITH OUR MISSION AND COMMITMENT TO THE COMMUNITIES IN WHICH WE SERVE, NORTON HOSPITALS, INC. CONTINUES ITS TRADITION OF CONTRIBUTING MONIES TO NUMEROUS ORGANIZATIONS. AMOUNTS PRESENTED REPRESENT ACTUAL MONIES CONTRIBUTED TO ORGANIZATIONS THROUGHOUT OUR COMMUNITIES.
Bad debt expense - methodology used to estimate amount Schedule H, Part III, Line 2 BAD DEBT EXPENSE IS BASED ON MANAGEMENT ASSESSMENT OF EXPECTED NET COLLECTIONS CONSIDERING ECONOMIC CONDITIONS AND HISTORICAL BUSINESS, TRENDS IN HEALTHCARE COLLECTIONS AND INSURANCE COVERAGE, AND OTHER COLLECTION INDICATORS. MANAGEMENT ASSESSES THE ADEQUACY OF THE ALLOWANCE FOR UNCOLLECTIBLE ACCOUNTS BASED UPON HISTORICAL WRITE-OFF EXPERIENCE BY PAYOR CATEGORY. THIS REVIEW IS THEN USED TO MAKE CHANGES TO THE PROVISION FOR UNCOLLECTIBLE ACCOUNTS TO ESTABLISH AN APPROPRIATE ALLOWANCE FOR UNCOLLECTIBLE RECEIVABLES. THE BAD DEBT EXPENSE IS BASED ON THE NET ESTIMATED AMOUNT EXPECTED TO BE DUE FROM THE PATIENT/PAYOR. BAD DEBT EXPENSE FALLS INTO THREE CATEGORIES, TRUE SELF PAY, PATIENT RESPONSIBILITY AFTER INSURANCE, AND OTHER. * TRUE SELF PAY - FOR TRUE SELF PAY PATIENTS, THE SELF PAY DISCOUNT IS APPLIED TO THE ACCOUNT ASSUMING THE PATIENT DOES NOT QUALIFY FOR FINANCIAL ASSISTANCE. THE BAD DEBT EXPENSE WRITE-OFF IS THE DISCOUNTED AMOUNT LESS ANY PAYMENTS MADE BY THE PATIENT. * PATIENT RESPONSIBILITY AFTER INSURANCE - THE BAD DEBT EXPENSE WRITE-OFF FOR PATIENT'S RESPONSIBILITY AFTER INSURANCE IS BASED ON THE PATIENT'S LIABILITY PER THE EXPLANATION OF BENEFITS AND CONTRACT WITH THE INSURANCE COMPANY. THE BAD DEBT EXPENSE WRITE-OFF IS THE EXPECTED AMOUNT DUE LESS ANY PAYMENTS MADE BY THE PATIENT. * OTHER - THE OTHER CATEGORY IS FOR INSURANCE AMOUNTS DUE FROM PAYORS. MOST EXPECTED PAYMENTS NOT RECEIVED FROM AN INSURANCE COMPANY AFTER INVESTIGATION INTO PAYMENT DIFFERENCE ARE WRITTEN OFF TO CONTRACTUAL ALLOWANCE/DENIAL CATEGORY.
Bad debt expense - methodology used to estimate amount as community benefit Schedule H, Part III, Line 3 THE METHOD USED TO DETERMINE THE AMOUNT THAT REASONABLY COULD BE ATTRIBUTABLE TO PATIENTS WHO LIKELY WOULD QUALIFY FOR FINANCIAL ASSISTANCE UNDER OUR FINANCIAL ASSISTANCE POLICY IS BASED ON OUR OUTSIDE ELIGIBILITY VENDOR'S EXPERIENCE WITH QUALIFYING ACCOUNTS AS FINANCIAL ASSISTANCE. MEDASSIST, OUR OUTSIDE VENDOR, SCREENS ALL SELF PAY ACCOUNTS AND BASED ON AN INITIAL SCREENING, WILL CLASSIFY THE ACCOUNT AS "PROBABLE" FINANCIAL ASSISTANCE IF THE ACCOUNTS APPEARS TO MEET NORTON HOSPITALS, INC.'S (NHI) FINANCIAL ASSISTANCE PROGRAM GUIDELINES. THESE ACCOUNTS ARE THEN REQUIRED TO SUBMIT THE NECESSARY DOCUMENTATION TO ULTIMATELY BE CLASSIFIED AS A FINANCIAL ASSISTANCE ACCOUNT. BASED ON ALL ACCOUNTS THAT ARE CLASSIFIED AS "PROBABLE FINANCIAL ASSISTANCE" BY MEDASSIST AND THEIR EXPERIENCE WITH GETTING ACCOUNTS QUALIFIED AS FINANCIAL ASSISTANCE, IT IS ESTIMATED THAT 75% OF THOSE ACCOUNTS CLASSIFIED AS PROBABLE FINANCIAL ASSISTANCE AND WHICH DO NOT SUBMIT THE REQUIRED DOCUMENTATION WOULD QUALIFY AS A NHI FINANCIAL ASSISTANCE ACCOUNT. THE ESTIMATED COST OF ACCOUNTS THAT ARE ESTIMATED TO QUALIFY FOR OUR FINANCIAL ASSISTANCE PROGRAM IS CALCULATED BASED ON GROSS CHARGES FOR ACCOUNTS FOR THE YEAR THAT ARE PROBABLE, BUT DON'T SUBMIT THE NECESSARY DOCUMENTATION MULTIPLIED TIMES OUR COST TO CHARGE RATIO TIMES THE 75% ESTIMATED CONVERSION FACTOR.
Bad debt expense - financial statement footnote Schedule H, Part III, Line 4 THE PROVISION FOR DOUBTFUL ACCOUNTS IS BASED UPON MANAGEMENT'S ASSESSMENT OF HISTORICAL AND EXPECTED NET COLLECTIONS CONSIDERING HISTORICAL BUSINESS AND ECONOMIC CONDITIONS, TRENDS IN HEALTH CARE COVERAGE AND OTHER COLLECTION INDICATORS. PERIODICALLY THROUGHOUT THE YEAR, MANAGEMENT ASSESSES THE ADEQUACY OF THE ALLOWANCE FOR DOUBTFUL ACCOUNTS BASED UPON HISTORICAL WRITE-OFF EXPERIENCE BY PAYOR CATEGORY. THE RESULTS OF THIS REVIEW ARE THEN USED TO MAKE MODIFICATIONS TO THE PROVISION FOR DOUBTFUL ACCOUNTS TO ESTABLISH AN APPROPRIATE ALLOWANCE FOR DOUBTFUL RECEIVABLES.
Community benefit & methodology for determining medicare costs Schedule H, Part III, Line 8 THE COSTING METHODOLOGY USED TO DETERMINE THE MEDICARE ALLOWABLE COST WAS BASED ON THE MEDICARE PRINCIPLES USED IN COMPLETING THE MEDICARE COST REPORT. ALL COST REPORTED CAME FROM THE MEDICARE COST REPORT. NORTON HOSPITALS, INC. (NHI) ACCEPTS ALL MEDICARE PATIENTS WITH THE KNOWLEDGE THAT THERE MAY BE SHORTFALLS AND OPERATES TO PROMOTE THE HEALTH OF THE COMMUNITY. NHI BELIEVES THAT THE MEDICARE SHORTFALL SHOULD BE TREATED AS A COMMUNITY BENEFIT BECAUSE MEDICARE DOES NOT FULLY COMPENSATE HOSPITALS FOR THE COST OF PROVIDING HOSPITAL CARE TO MEDICARE BENEFICIARIES. NHI EXPERIENCED SIGNIFICANT LOSSES ($23.6 MILLION FOR THE FISCAL YEAR ENDING 2012) DUE TO UNDERPAYMENT FOR MEDICARE PATIENTS. UNREIMBURSED MEDICARE COSTS REPRESENT A SIGNIFICANT VALUE THAT NONPROFIT HOSPITALS PROVIDE TO THE COMMUNITY AS THE HOSPITAL RELIEVES THE FEDERAL GOVERNMENT OF A FINANCIAL BURDEN WHEN IT PROVIDES ESSENTIAL HEALTHCARE SERVICES TO MEDICARE COVERED PATIENTS.
Collection practices for patients eligible for financial assistance Schedule H, Part III, Line 9b AFTER THE PATIENT'S INITIAL SCREENING FOR FINANCIAL ASSISTANCE, IF IT APPEARS THAT THE PATIENT QUALIFIES FOR FINANCIAL ASSISTANCE, NORTON HOSPITALS, INC. WILL NOT START COLLECTION EFFORTS PENDING THE PATIENT SUBMITTING THE NECESSARY INFORMATION TO DOCUMENT MEETING THE FINANCIAL ASSISTANCE QUALIFICATIONS. IF THE PATIENT SUBMITS THE NECESSARY DOCUMENTATION WITHIN A REASONABLE TIME PERIOD, THEN THERE WILL NOT BE ANY COLLECTION EFFORTS MADE TO COLLECT ANY AMOUNT FROM THE PATIENT. THE PATIENT WILL RECEIVE A STATEMENT/BILL REFLECTING THE AMOUNT DUE THROUGH THE FINANCIAL ASSISTANCE APPLICATION PROCESS PENDING THE PATIENT'S FINANCIAL ASSISTANCE APPLICATIONS, BUT THERE WILL BE NO COLLECTION EFFORTS. ONLY AFTER SEVERAL ATTEMPTS TO CONTACT THE PATIENT TO GET THE NECESSARY DOCUMENTATION FOR COMPLETING THE FINANCIAL ASSISTANCE APPLICATION AND THE PATIENT NOT RESPONDING, WILL COLLECTION EFFORTS BEGIN. THERE IS AN ONGOING EFFORT THROUGHOUT THE COLLECTION PROCESS TO SCREEN FOR MEDICAID ELIGIBILITY, DSH, AND THE NEED FOR PROVIDING FINANCIAL ASSISTANCE APPLICATIONS TO PATIENTS. WHEN A PATIENT IS APPROVED FOR FINANCIAL ASSISTANCE, THEIR ACCOUNT IS WRITTEN OFF.
Used FPG to determine eligibility for providing discounted care criteria Schedule H, Part V Section B, Line 11 (1) NORTON HOSPITAL - NORTON HOSPITALS, INC. (NHI) DOES NOT HAVE A SLIDING SCALE FOR FINANCIAL ASSISTANCE. NHI PROVIDES TOTAL FREE CARE THAT IS DISCOUNTED 100% FOR INDIVIDUALS THAT MET THE FEDERAL POVERTY GUIDELINES (FPG) UP TO 300% OF THE FPG AND COMPLETE THE APPLICATION PROCESS. ALL SELF PAY FINANCIAL CLASS PATIENTS RECEIVE A SELF PAY DISCOUNT.;(2) KOSAIR CHILDREN'S HOSPITAL - NORTON HOSPITALS, INC. (NHI) DOES NOT HAVE A SLIDING SCALE FOR FINANCIAL ASSISTANCE. NHI PROVIDES TOTAL FREE CARE THAT IS DISCOUNTED 100% FOR INDIVIDUALS THAT MET THE FEDERAL POVERTY GUIDELINES (FPG) UP TO 300% OF THE FPG. ALL SELF PAY FINANCIAL CLASS PATIENTS RECEIVE A SELF PAY DISCOUNT.;(3) NORTON AUDUBON HOSPITAL - NORTON HOSPITALS, INC. (NHI) DOES NOT HAVE A SLIDING SCALE FOR FINANCIAL ASSISTANCE. NHI PROVIDES TOTAL FREE CARE THAT IS DISCOUNTED 100% FOR INDIVIDUALS THAT MET THE FEDERAL POVERTY GUIDELINES (FPG) UP TO 300% OF THE FPG. ALL SELF PAY FINANCIAL CLASS PATIENTS RECEIVE A SELF PAY DISCOUNT.;(4) NORTON SUBURBAN HOSPITAL - NORTON HOSPITALS, INC. (NHI) DOES NOT HAVE A SLIDING SCALE FOR FINANCIAL ASSISTANCE. NHI PROVIDES TOTAL FREE CARE THAT IS DISCOUNTED 100% FOR INDIVIDUALS THAT MET THE FEDERAL POVERTY GUIDELINES (FPG) UP TO 300% OF THE FPG. ALL SELF PAY FINANCIAL CLASS PATIENTS RECEIVE A SELF PAY DISCOUNT.;(5) NORTON BROWNSBORO HOSPITAL - NORTON HOSPITALS, INC. (NHI) DOES NOT HAVE A SLIDING SCALE FOR FINANCIAL ASSISTANCE. NHI PROVIDES TOTAL FREE CARE THAT IS DISCOUNTED 100% FOR INDIVIDUALS THAT MET THE FEDERAL POVERTY GUIDELINES (FPG) UP TO 300% OF THE FPG. ALL SELF PAY FINANCIAL CLASS PATIENTS RECEIVE A SELF PAY DISCOUNT.;
Other ways hospital publicized Financial Assistance Policy Schedule H, Part V Section B, Line 14g (1) NORTON HOSPITAL - SEE RESPONSE TO PART VI, LINE 3 PATIENT EDUCATION OF ELIGIBILITY FOR ASSISTANCE. ;(2) KOSAIR CHILDREN'S HOSPITAL - SEE RESPONSE TO PART VI, LINE 3; PATIENT EDUCATION OF ELIGIBILITY FOR ASSISTANCE.;(3) NORTON AUDUBON HOSPITAL - SEE RESPONSE TO PART VI, LINE 3; PATIENT EDUCATION OF ELIGIBILITY FOR ASSISTANCE.;(4) NORTON SUBURBAN HOSPITAL - SEE RESPONSE TO PART VI, LINE 3; PATIENT EDUCATION OF ELIGIBILITY FOR ASSISTANCE.;(5) NORTON BROWNSBORO HOSPITAL - SEE RESPONSE TO PART VI, LINE 3; PATIENT EDUCATION OF ELIGIBILITY FOR ASSISTANCE.;
Other actions taken before collection actions Schedule H, Part V Section B, Line 18e (2) KOSAIR CHILDREN'S HOSPITAL - NORTON HOSPITALS, INC. (NHI) ATTEMPTS TO GET SELF PAY PATIENTS TO COMPLETE A FINANCIAL ASSISTANCE APPLICATION. ALSO, MEDASSIST, THE OUTSIDE VENDOR CONTRACTED BY NHI ATTEMPTS TO GET PATIENTS QUALIFIED FOR FINANCIAL ASSISTANCE. OUR EARLY OUT VENDOR HIRED BY NHI IS REQUIRED TO GIVE PATIENTS A COPY OF THE FINANCIAL ASSISTANCE APPLICATION TO COMPLETE WITH THE INITIAL BILLING STATEMENT. THE BAD DEBT AGENCY CONTRACTED WITH NHI WILL SEND THE INITIAL NOTICE AS REQUIRED BY THE FAIR DEBT COLLECTION PRACTICES ACT FIRST, AND THEN AFTER THE LETTER IS SENT, WILL SEND TO THE PATIENT A FINANCIAL ASSISTANCE APPLICATION WITH A LETTER OF INSTRUCTIONS.;(3) NORTON AUDUBON HOSPITAL - NORTON HOSPITALS, INC. (NHI) ATTEMPTS TO GET SELF PAY PATIENTS TO COMPLETE A FINANCIAL ASSISTANCE APPLICATION. ALSO, MEDASSIST, THE OUTSIDE VENDOR CONTRACTED BY NHI ATTEMPTS TO GET PATIENTS QUALIFIED FOR FINANCIAL ASSISTANCE. OUR EARLY OUT VENDOR HIRED BY NHI IS REQUIRED TO GIVE PATIENTS A COPY OF THE FINANCIAL ASSISTANCE APPLICATION TO COMPLETE WITH THE INITIAL BILLING STATEMENT. THE BAD DEBT AGENCY CONTRACTED WITH NHI WILL SEND THE INITIAL NOTICE AS REQUIRED BY THE FAIR DEBT COLLECTION PRACTICES ACT FIRST, AND THEN AFTER THE LETTER IS SENT, WILL SEND TO THE PATIENT A FINANCIAL ASSISTANCE APPLICATION WITH A LETTER OF INSTRUCTIONS.;(4) NORTON SUBURBAN HOSPITAL - NORTON HOSPITALS, INC. (NHI) ATTEMPTS TO GET SELF PAY PATIENTS TO COMPLETE A FINANCIAL ASSISTANCE APPLICATION. ALSO, MEDASSIST, THE OUTSIDE VENDOR CONTRACTED BY NHI ATTEMPTS TO GET PATIENTS QUALIFIED FOR FINANCIAL ASSISTANCE. OUR EARLY OUT VENDOR HIRED BY NHI IS REQUIRED TO GIVE PATIENTS A COPY OF THE FINANCIAL ASSISTANCE APPLICATION TO COMPLETE WITH THE INITIAL BILLING STATEMENT. THE BAD DEBT AGENCY CONTRACTED WITH NHI WILL SEND THE INITIAL NOTICE AS REQUIRED BY THE FAIR DEBT COLLECTION PRACTICES ACT FIRST, AND THEN AFTER THE LETTER IS SENT, WILL SEND TO THE PATIENT A FINANCIAL ASSISTANCE APPLICATION WITH A LETTER OF INSTRUCTIONS.;(5) NORTON BROWNSBORO HOSPITAL - NORTON HOSPITALS, INC. (NHI) ATTEMPTS TO GET SELF PAY PATIENTS TO COMPLETE A FINANCIAL ASSISTANCE APPLICATION. ALSO, MEDASSIST, THE OUTSIDE VENDOR CONTRACTED BY NHI ATTEMPTS TO GET PATIENTS QUALIFIED FOR FINANCIAL ASSISTANCE. OUR EARLY OUT VENDOR HIRED BY NHI IS REQUIRED TO GIVE PATIENTS A COPY OF THE FINANCIAL ASSISTANCE APPLICATION TO COMPLETE WITH THE INITIAL BILLING STATEMENT. THE BAD DEBT AGENCY CONTRACTED WITH NHI WILL SEND THE INITIAL NOTICE AS REQUIRED BY THE FAIR DEBT COLLECTION PRACTICES ACT FIRST, AND THEN AFTER THE LETTER IS SENT, WILL SEND TO THE PATIENT A FINANCIAL ASSISTANCE APPLICATION WITH A LETTER OF INSTRUCTIONS.;
Needs assessment. Schedule H, Part VI, Line 2 NORTON HOSPITALS, INC. (NHI) REGULARLY AND CONSISTENTLY EVALUATES WORKFORCE AND COMMUNITY HEALTH CARE NEEDS THROUGH PARTNERSHIPS WITH LOCAL HEALTH DEPARTMENTS, EMERGENCY MEDICAL SERVICE, LOCAL AND STATE UNIVERSITIES, AND KENTUCKIANA WORKS, THE WORKFORCE INVESTMENT BOARD FOR THE SEVEN COUNTY REGION SURROUNDING LOUISVILLE. PARTNERSHIPS WITH THESE ORGANIZATIONS, ALONG WITH NOT-FOR-PROFIT HEALTH CARE ORGANIZATIONS SUCH AS THE AMERICAN CANCER SOCIETY, AMERICAN HEART ASSOCIATION AND OTHERS, ALSO PROVIDE NHI IMPORTANT STATISTICS AND DATA TO USE IN EVALUATING COMMUNITY ACCESS TO HEALTH CARE SERVICES AND HEALTH CARE DISPARITIES. ADDITIONALLY, NHI ACCESSES DATA FROM ORGANIZATIONS SUCH AS THE CENTERS FOR DISEASE CONTROL AND THE UNITED STATES CENSUS BUREAU TO ASSESS AREAS OF GREATEST ANTICIPATED POPULATION GROWTH AND LOW-INCOME AREAS - BOTH OF WHICH MAY BE IN GREATEST NEED FOR PREVENTION EDUCATION, FREE SCREENINGS AND ACCESS TO HEALTH CARE. NHI INITIATED A COMMUNITY HEALTH NEEDS ASSESSMENT (CHNA) FOR ALL HOSPITALS AND HAS SUBSEQUENTLY COMPLETED THE CHNA IN 2013. THE CHNA DEFINED THE PATIENT SERVICE AREA BY PATIENT ORIGIN FOR INPATIENT STAYS. DEMOGRAPHIC, SOCIOECONOMIC, POPULATION, AND OTHER HEALTH RELATED INDICATORS WERE UTILIZED TO PROVIDE INFORMATION ON THE HEALTH STATUS OF THE COMMUNITY. THE HEALTH NEEDS THAT WERE IDENTIFIED WERE PRIORITIZED AND ACTION PLANS DEVELOPED.
Patient education of eligibility for assistance. Schedule H, Part VI, Line 3 NORTON HOSPITALS, INC. (NHI) EMPLOYS AN OUTSIDE ELIGIBILITY VENDOR, MEDASSIST/FIRSTSOURCE. ALL SELF PAY ACCOUNTS FOR THE ADULT FACILITIES ARE PLACED FOR ELIGIBILITY SCREENING WITH MEDASSIST/FIRSTSOURCE. THEY SCREEN FOR: NORTON FINANCIAL ASSISTANCE, MEDICAID, MEDICAID MANAGED CARE ORGANIZATIONS, AND DSH/KHCP. IN ADDITION, THEY ALSO PROVIDE EDUCATION AND REFERRAL ASSISTANCE TO THE APPROPRIATE COUNTY/STATE DEPARTMENTS FOR FOOD STAMPS, RENT ASSISTANCE, HEATING ASSISTANCE, ETC., WITH THE PROCESS OF COMPLETING THE APPLICATION IS OFTEN PERFORMED BY MEDASSIST/FIRSTSOURCE THEMSELVES. THEY PROTECT FILING DEADLINES BY SUBMITTING THE APPROPRIATE FORMS TO THE STATE/COUNTY, THEY FOLLOW UP TO SECURE PROOF OF INCOME DOCUMENTS FOR NORTON FINANCIAL ASSISTANCE, AND FOLLOW-UP WITH THE PATIENT'S ASSIGNED STATE CASEWORKER AS NEEDED. MEDASSIST/FIRSTSOURCE ALSO MAKES OUTSIDE FIELD CALLS OR HOME VISITS TO THE PATIENTS TO SECURE THE NEEDED INFORMATION FOR ELIGIBILITY ASSISTANCE IF THEY ARE HOMEBOUND AS WELL AS PROVIDING ASSISTANCE WITH PATIENT TRANSPORTATION NEEDS SO THAT THE PATIENT CAN MAKE THEIR SCHEDULED APPOINTMENTS WITH THEIR CASEWORKER. ALL OF THE SERVICES PROVIDED BY MEDASSIST/FIRSTSOURCE ELIGIBILITY ARE AT NO COST TO THE PATIENT. NHI PAYS FOR THESE ELIGIBILITY SERVICES AT WELL OVER $1,000,000 PER YEAR. NHI HAS A STAFF OF 11 FULL-TIME EMPLOYEES, INCLUDING A SUPERVISOR, THAT ARE DEDICATED TO MAKING OUT-BOUND CALL AND PROCESSING, REVIEWING, APPROVING THE HUNDREDS OF FINANCIAL ASSISTANCE APPLICATIONS THAT ARE RECEIVED EACH WEEK. FINANCIAL ASSISTANCE FOR NORTON FINANCIAL ASSISTANCE OR KOSAIR CHARITIES FINANCIAL ASSISTANCE IS NOT LIMITED TO THE SELF PAY POPULATION. EVEN PATIENTS WITH INSURANCE COVERAGE ARE ENCOURAGED TO APPLY FOR ASSISTANCE SO THAT THEIR DEDUCTIBLES, CO-PAYMENTS, AND CO-INSURANCE AMOUNTS ARE COVERED UNDER THE VARIOUS ASSISTANCE PROGRAMS. FINANCIAL COUNSELORS/SOCIAL WORKERS AT THE ADULT FACILITIES AS WELL AS KOSAIR CHILDREN'S HOSPITAL ARE EDUCATED AND TRAINED TO ASSIST WITH COUNSELING PATIENTS AND DETERMINING AND EXPLAINING OUR FINANCIAL ASSISTANCE PROGRAMS. THEY CONTINUE TO RECEIVE ON-GOING EDUCATION THROUGHOUT THE YEAR REGARDING ELIGIBILITY CHANGES AND ADDITIONS FOR NORTON FINANCIAL ASSISTANCE, KOSAIR CHARITIES, DSH/KHCP, MEDICAID, ETC. THE FOUNDATION OFFICE SENDS POTENTIAL REFERRALS TO PATIENT FINANCIAL SERVICES TO SCREEN FOR POSSIBLE FINANCIAL ASSISTANCE AS THEY RECEIVE INQUIRIES IN THE FOUNDATION OFFICE. IF A PATIENT DOES NOT QUALIFY FOR KOSAIR CHARITY, THEN THOSE DENIED APPLICATIONS ARE REFERRED TO THE DIRECTOR OF PATIENT FINANCIAL SERVICES FOR CONSIDERATION FOR SPECIAL FUNDING THROUGH THE CHILDREN'S FOUNDATION AS WELL AS OTHER PROGRAMS. ON THE BACK OF EVERY HOSPITAL MONTHLY PATIENT ACCOUNT STATEMENT THAT IS SENT FROM NHI TO NON-OUTSOURCED ACCOUNTS, THE FINANCIAL ASSISTANCE APPLICATION IS PRINTED. COLLECTION AGENCIES CHOSEN BY NHI PRINT ON THE BACK OF THEIR INITIAL PLACEMENT LETTER, OR AN INSERT IS MAILED WITH THE INITIAL PLACEMENT LETTER, A COPY OF THE FINANCIAL ASSISTANCE APPLICATION FOR THE GUARANTOR TO COMPLETE. CONTAINED ON THE INITIAL NOTIFICATION LETTER THAT IS REQUIRED BY THE FAIR DEBT COLLECTION PRACTICE ACT THAT THE AGENCIES SEND TO THE GUARANTOR IS A PHRASE WRITTEN IN SPANISH THAT ALERTS SPANISH SPEAKING GUARANTORS TO CONTACT A SPECIFIC NUMBER TO SPEAK WITH A SPANISH SPEAKING COLLECTOR. THAT SPANISH SPEAKING COLLECTOR WILL ALSO PROVIDE FINANCIAL ASSISTANCE INFORMATION. NHI HAS TRANSLATED A SERIES OF FINANCIAL ASSISTANCE LETTERS IN SPANISH AND VIETNAMESE. THESE LETTERS AND THE APPLICATION ARE MADE AVAILABLE TO THE COLLECTION AGENCIES TO USE WITH THOSE GUARANTORS TO APPLY FOR FINANCIAL ASSISTANCE. NHI CUSTOMER SERVICE DEPARTMENT ROUTINELY INSTRUCTS AND SCREENS PATIENTS IN THE PROTOCOL REGARDING FINANCIAL ASSISTANCE THRU KOSAIR CHARITIES OR NORTON FINANCIAL ASSISTANCE. BEGINNING IN 2007, NHI OFFERED AT THE TIME OF FINAL BILLING ALL TRUE SELF PAY PATIENTS A SIGNIFICANT DISCOUNT OFF OF TOTAL CHARGES THAT WERE REFLECTED ON THEIR MONTHLY STATEMENTS. AN ADDITIONAL PROMPT PAY DISCOUNT IS ALSO PROVIDED IF THE REMAINING BALANCE IS PAID WITHIN 30 DAYS FROM DATE OF FIRST BILL. CONTRACTED COLLECTION AGENCIES ARE REQUIRED TO SOLICIT CHARITY APPLICATIONS WHEN THE GUARANTOR/PATIENT INDICATES "CANNOT PAY". NHI PAYS A COMMISSION TO OUR CONTRACTED COLLECTION AGENCIES FOR EVERY APPROVED CHARITY APPLICATION THAT IS FINALIZED. THIS COMMISSION IS AN INCENTIVE FOR THE REPRESENTATIVES TO OBTAIN CHARITY APPLICATIONS AND NOT JUST COLLECT MONEY OWED ON THE ACCOUNT. IN 2012, NHI HAD EVENING HOURS FOR THEIR INTERNAL STAFF TO MAKE OUTBOUND PHONE CALLS AND TAKE INBOUND PHONE CALLS FROM GUARANTORS IN ORDER TO PROVIDE EVENING HOURS TO NOTIFY THEM AND ALLOW THEM TO APPLY FOR FINANCIAL ASSISTANCE. NHI MANAGEMENT MONITORS THE NUMBER OF APPROVED FINANCIAL ASSISTANCE APPLICATIONS THAT ARE PROVIDED AS A DIRECT RESULT OF THE COLLECTION AGENCIES EFFORTS. TRENDING IS REVIEWED AND INQUIRES ARE MADE BY NHI MANAGEMENT TO THE AGENCIES' MANAGEMENT WHEN THE MONTHLY NUMBERS SHOW A VARIANCE SHORT OF THE AVERAGE NUMBER APPROVED.
Community information. Schedule H, Part VI, Line 4 PRIMARY SERVICE AREA NORTON HOSPITALS INC.'S (NHI) PRIMARY SERVICE AREA POPULATION IS OVER ONE MILLION AND EXPECTED TO INCREASE 2.8% BETWEEN 2013 AND 2018. THE PRIMARY SERVICE AREA INCLUDES SEVEN COUNTIES, THREE OF WHICH ARE LOCATED ALONG THE OHIO RIVER BORDER IN KENTUCKY AND THE OTHER FOUR ARE BORDERING THE RIVER IN INDIANA. EIGHTY-ONE PERCENT OF NHI'S PATIENTS ARE DERIVED FROM THIS SERVICE AREA. APPROXIMATELY 27% OF THE POPULATION IS OVER 55 YEARS OLD; COMPARED TO 26% IN THE USA. THIS PORTION OF THE POPULATION TENDS TO USE ADDITIONAL HEALTHCARE SERVICES. THE PEDIATRIC POPULATION IN 2012 WAS ESTIMATED AT 269,702 AND IS EXPECTED TO INCREASE TO 274,242 WITHIN FIVE YEARS AND REPRESENTS 24% OF THE POPULATION. THE NUMBER OF HOUSEHOLDS IN THE PRIMARY SERVICE AREA WAS ESTIMATED AT 462,907 IN 2012 AND IS EXPECTED TO INCREASE 2.8% BY 2018. CURRENTLY 13% OF THE ADULT POPULATION DOES NOT HAVE A HIGH SCHOOL DEGREE AND 27% OF THE HOUSEHOLD INCOME IS LESS THAN $25,000 A YEAR; THE AVERAGE HOUSEHOLD INCOME IS $62,515 COMPARED TO $69,637 FOR THE UNITED STATES. NHI TREATS 45% OF THE ADULT INPATIENT CASES IN THE COMMUNITY AND ITS PAYOR MIX IS 38% MEDICARE, 8% MEDICAID/PASSPORT AND 4% SELF PAY. THE LARGEST COUNTY IN THE SERVICE AREA IS JEFFERSON COUNTY AND ITS MAY 2013 PRELIMINARY NON-SEASONALLY ADJUSTED UNEMPLOYMENT RATE WAS 8.3% COMPARED TO 8.3% FOR KENTUCKY AND 7.3% FOR THE UNITED STATES. SECONDARY SERVICE AREA NHI'S SECONDARY SERVICE AREA POPULATION WAS 738,591 IN 2012 AND IS EXPECTED TO INCREASE 3.3% BETWEEN 2013 AND 2018. THE SECONDARY SERVICE AREA SPREADS ACROSS 22 KENTUCKY COUNTIES AND 4 INDIANA COUNTIES. THE 55+ AGE COHORT REPRESENTS 27% OF THE SECONDARY SERVICE AREA POPULATION AND IS RELATIVELY CONSISTENT WITH KENTUCKY AND THE UNITED STATES. THE PEDIATRIC POPULATION IN 2012 WAS ESTIMATED AT 177,661 AND EXPECTED TO INCREASE TO 181,479 BY 2018. ALTHOUGH THE PEDIATRIC POPULATION IS EXPECTED TO REMAIN FLAT THERE IS A NEED FOR CHILDREN TO HAVE ACCESS TO PEDIATRIC SPECIALTY CARE IN THE RURAL AREAS OF KENTUCKY. THE NUMBER OF HOUSEHOLDS IN THE SECONDARY SERVICE AREA WAS ESTIMATED AT 286,341 IN 2012 AND IS EXPECTED TO INCREASE BY 10,307 BY 2018. ALMOST 89,000 ADULTS IN THIS SERVICE AREA DO NOT HAVE A HIGH SCHOOL EDUCATION AND THE HOUSEHOLD INCOME IS UNDER $25,000 FOR 32% OF THIS POPULATION. THE AVERAGE HOUSEHOLD INCOME IS $51,972, LESS THAN KENTUCKY AND 20% LESS THAN THE PRIMARY SERVICE AREA.
Promotion of community health Schedule H, Part VI, Line 5 A THIRD OF THE ORGANIZATION'S MISSION STATEMENT SPEAKS TO THE COMMITMENT TO PROVIDE QUALITY HEALTHCARE THAT "RESPONDS TO THE NEEDS OF OUR COMMUNITIES." NORTON HOSPITALS, INC. (NHI) ORGANIZATIONAL VALUES DIRECTLY ADDRESS THE NEED TO "CONTINUALLY IMPROVE CARE AND SERVICES" WHILE "DEMONSTRATING STEWARDSHIP OF RESOURCES." AS AN ORGANIZATION COMMITTED TO THE CONSTANT UNDERSTANDING AND ASSESSMENT OF THOSE SERVED, INITIATIVES AND PROGRAMS THAT ADDRESS THESE CONSTITUENTS ARE DEVELOPED AND IMPLEMENTED. IN 2012 NHI'S TOTAL COMMUNITY BENEFIT WAS $137.8 MILLION, OVER $2.6 MILLION A WEEK, AND INCLUDES COMMUNITY INITIATIVES AND PROGRAMS SUCH AS 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. NHI EMPLOYEES PROVIDED NEARLY 5,500 COMMUNITY SERVICE HOURS THAT SUPPORTED 147 ORGANIZATIONS. NHI PARTNERS WITH OTHER NON-PROFIT ORGANIZATIONS, LOCAL GOVERNMENT AND THE CENTERS FOR DISEASE CONTROL TO IMPROVE THE HEALTH STATUS OF OUR COMMUNITY THROUGH EVIDENCE-BASED INITIATIVES. THE ORGANIZATION'S PUBLICLY ACCESSIBLE WEBSITE OFFERS AN ONLINE ASSESSMENT GUIDE TO IDENTIFY AND UNDERSTAND SYMPTOMS. GET HEALTHY VIDEOS OFFER A VISUAL RESOURCE AND AID ABOUT MANY OF THE MOST WORRISOME HEALTH PROBLEMS IN THE COMMUNITY. THROUGHOUT THE YEAR FREE SEMINARS PLACE CLINICAL EXPERTS WITH COMMUNITY AUDIENCES ON SUCH TOPICS AS DIABETES, JOINT PAIN, WEIGHT MANAGEMENT, CANCER ASSESSMENTS - ALL CONDITIONS THAT KENTUCKY, UNFORTUNATELY, LEADS THE NATION IN HAVING. THE PUBLICLY AVAILABLE QUALITY REPORT ENSURES THAT THE COMMUNITY HAS ACCESS TO INFORMATION ABOUT THE QUALITY OF CARE PROVIDED BY THE ORGANIZATION. THIS DATA NOT ONLY EMPOWERS COMMUNITY MEMBERS, BUT ALSO DRIVES THE HEALTHCARE QUALITY AGENDA IN THE COMMUNITY. AN ESTIMATED 1.1 MILLION CONTACTS/EXPOSURES DICTATES THE ORGANIZATION'S OVERALL HEALTHCARE AGENDA FOR THE COMMUNITY. THE OFFICE OF CHURCH AND HEALTH MINISTRIES (OFFICE) PROVIDES EDUCATIONAL PROGRAMS FOR CHURCH LEADERS AND MEMBERS TO LEARN ABOUT FAITH COMMUNITY NURSING, ETHICS, WHOLE-PERSON CARE AND OTHER TOPICS RELATED TO HEALTH MINISTRIES. IN 2012, A FREE SEMINAR ABOUT HEART HEALTH WAS ATTENDED BY 92 MEMBERS OF THE CLERGY AND CHURCH STAFF AND A FREE WORKSHOP INTRODUCING THE REVISED STANDARDS OF PRACTICE FOR FAITH COMMUNITY NURSING WAS HELD FOR 50 ATTENDEES. THE OFFICE HAS CREATED A NETWORK OF MORE THAN 170 FAITH COMMUNITIES THAT HAVE HEALTH AND WELLNESS ACTIVITIES FOR THEIR MEMBERS AND THE LARGER COMMUNITY. STAFF MEMBERS, INCLUDING FOUR REGISTERED NURSES, TEACH THE CONCEPTS OF THE FAITH COMMUNITY NURSING SPECIALTY AND MENTOR CHURCH LEADERS AS THEY DEVELOP HEALTH AND WELLNESS INITIATIVES. THE OFFICE FREQUENTLY PROVIDES COMMUNICATIONS ABOUT HEALTH AND WELLNESS ISSUES TO CHURCHES IN THE LOUISVILLE AND SOUTHERN INDIANA REGION. FOR INSTANCE, THIS SUMMER, STAFF ISSUED AN ADVISORY EMAIL ABOUT HEART RELATED ILLNESS TO MORE THAN 170 FAITH COMMUNITIES IN THE ORGANIZATION'S HEALTH MINISTRIES NETWORK. AN ELECTRONIC NEWS BULLETIN AND PRINTED NEWSLETTER FEATURING DISEASE PREVENTION AND WELLNESS NEWS AND EVENTS ARE SENT TO NEARLY 2000 INDIVIDUALS AND ORGANIZATIONS AND ALSO ARE WIDELY DISTRIBUTED THROUGHOUT THE REGION. THE OFFICE CONTINUALLY PROMOTES NETWORKING OPPORTUNITIES AMONG CHURCHES WANTING TO LEARN HOW TO CREATE AND ENHANCE FAITH COMMUNITY NURSING AND HEALTH AND WELLNESS ACTIVITIES. AN ANNUAL HEALTH MINISTRIES DIRECTORY FOR KENTUCKY AND SOUTHERN INDIANA IS PUBLISHED AND DISTRIBUTED BY THE OFFICE TO ENCOURAGE COLLABORATION. IN PARTNERSHIP WITH NORTON UNIVERSITY, THE OFFICE OFFERS COMPLIMENTARY COURSES TO PASTORS AND STAFF OF CHURCHES IN THE ORGANIZATION'S FOUNDING FAITHS. THE OFFICE SUPPORTED THE MID-KENTUCKY PRESBYTERY DISASTER PREPAREDNESS AND RESPONSE TEAM WHICH OFFERS PERSONAL AND FAITH COMMUNITY PREPAREDNESS REGIONAL TRAINING TO CHURCHES. NORTON HEALTHCARE, INC. (NORTON) HAS ESTABLISHED THE CENTERS FOR PREVENTION AND WELLNESS (CPW) TO SERVE AS AN UMBRELLA FOR PREVENTION, OUTREACH, AND WELLNESS ACTIVITIES FOR NORTON. LED BY SANDRA E. BROOKS, M.D., MBA, SYSTEM VICE PRESIDENT OF PREVENTION AND RESEARCH, OUR STAFF OF ADVANCED PRACTICE AND REGISTERED NURSES, TECHNICIANS, SUPPORT STAFF AND COMMUNITY HEALTH OUTREACH WORKER PERFORMS EDUCATION, OUTREACH, SCREENING AND HEALTH PROMOTION FOR OUR COMMUNITY. APPROXIMATELY 50% OF OUR COMMUNITY OUTREACH ACTIVITIES FOCUS ON MEDICALLY UNDERSERVED, UNDERINSURED AND UNINSURED INDIVIDUALS. CPW USES EVIDENCE-BASED APPROACHES TO PROVIDE NO COST AND LOW COST SCREENINGS FOR MAMMOGRAM, PAP SMEAR, PROSTATE-SPECIFIC ANTIGEN, OR PSA TESTING, BLOOD PRESSURE, BODY MASS INDEX, GLUCOSE, CHOLESTEROL, COLON CANCER TESTING AND TOBACCO CESSATION RESOURCES-INCREASING ACCESS TO CARE IN THE COMMUNITY THROUGH THE MOBILE PREVENTION CENTER. OUR MOBILE PREVENTION CENTERS (A 40-FOOT MOBILE UNIT) EQUIPPED WITH A DIGITAL MAMMOGRAPHY UNIT, CLINICAL EXAM ROOM, A SMALL LABORATORY AND AN EDUCATION CENTER. IN 2012, OUR OUTREACH TEAM SCREENED MORE THAN 7,900 MEN AND WOMEN FOR CANCER AND CARDIOVASCULAR DISEASE. WE PROVIDED OUTREACH IN 406 CHURCHES, SCHOOLS, NEIGHBORHOOD CENTERS, AND HEALTH CLINICS THROUGHOUT LOUISVILLE METRO. WE NAVIGATED HUNDREDS OF INDIVIDUALS TO HEALTH RESOURCES AND PRIMARY CARE OR SPECIALIST APPOINTMENTS. OF THOSE SCREENED, APPROXIMATELY 24% WERE ABNORMAL REQUIRING NURSE NAVIGATION TO DIAGNOSTIC OR MEDICAL INTERVENTION. SINCE 2007, CPW HAS DIAGNOSED AND TREATED 94 INDIVIDUALS FOR PRE-INVASIVE AND INVASIVE CENTER. KOSAIR CHILDREN'S HOSPITAL IS HOME TO THE KENTUCKY REGIONAL POISON CONTROL CENTER, WHERE IN 2012 OVER 64,000 CONCERNED INDIVIDUALS FROM ALL 120 COUNTIES IN KENTUCKY CALLED THE CENTER TO LEARN HOW TO CORRECTLY HANDLE EXPOSURES TO POISON AND FOR TREATMENT ADVICE. NHI IS COMMITTED TO INVESTING IN THE COMMUNITY IT SERVES AND "DEMONSTRATING STEWARDSHIP OF RESOURCES" IS ONE OF OUR ORGANIZATIONAL VALUES. WE DO THIS IN A VARIETY OF WAYS, SUCH AS: WORKFORCE DEVELOPMENT EFFORTS; SUPPORTING LOCAL EDUCATIONAL INSTITUTIONS - INCLUDING THE UNIVERSITY OF LOUISVILLE SCHOOL OF MEDICINE; OFFERING SCHOLARSHIPS TO STUDENTS; PROVIDING STUDENTS WITH FORGIVABLE LOANS FOR THEIR EDUCATION; PLACING MEDICAL PROFESSIONALS IN MEDICALLY-UNDERSERVED AREAS; PROVIDING FREE HEALTH SCREENINGS AND EDUCATION; CONTRIBUTING FUNDS TO OTHER NON-PROFIT HEALTH CARE ORGANIZATIONS; AND BUILDING A NEW HOSPITAL THAT FOLLOWS THE GREEN GUIDE TO HEALTH CARE, A BEST PRACTICES TOOL KIT FOR PLANNING, DESIGN, CONSTRUCTION, OPERATIONS AND MAINTENANCE OF NEW HOSPITALS. IN AN EFFORT TO ENSURE THE BEST CARE FOR ITS PATIENTS, NHI GENERALLY EXTENDS MEDICAL STAFF PRIVILEGES TO ALL QUALIFIED PHYSICIANS IN ITS COMMUNITY FOR SOME OR ALL OF ITS SERVICE LINES/DEPARTMENTS, AS APPLICABLE. IN FACT, MORE THAN 2,000 PHYSICIANS ARE ON NHI MEDICAL STAFF. NHI OPERATES SIX (6) FULL-TIME EMERGENCY ROOMS WHERE NO ONE REQUIRING EMERGENCY CARE IS DENIED TREATMENT. NHI INVESTS IN ITS COMMUNITY BY APPLYING SURPLUS FUNDS TO IMPROVEMENTS IN PATIENT CARE - INCLUDING MANY FREE HEALTH CARE SCREENINGS AND EDUCATION PROGRAMS, MEDICAL EDUCATION AND RESEARCH. NHI UTILIZES EXCESS FUNDS BY INVESTING IN THE EXPANSION AND REPLACEMENT OF EXISTING FACILITIES AND EQUIPMENT. NHI PROVIDED $23.7 MILLION IN EDUCATIONAL SUPPORT, PRIMARILY TO THE UNIVERSITY OF LOUISVILLE SCHOOL OF MEDICINE. BY ESTABLISHING PARTNERSHIPS, NHI HELPS TO BUILD A STRONGER AND MORE COHESIVE COMMUNITY THAT WORKS TOGETHER FOR THE GOOD OF ITS CITIZENS. BY INVESTING IN EDUCATION, NHI IS - IN ESSENCE - INVESTING IN OUR COMMUNITY'S FUTURE BY MAKING SURE THAT WELL-PREPARED GRADUATES ARE EXITING LOCAL COLLEGES AND UNIVERSITIES, ULTIMATELY TO WORK IN A VARIETY OF LOCAL BUSINESSES - INCLUDING HEALTH CARE. BY PROVIDING FREE EDUCATION AND SCREENINGS AND PLACING MEDICAL PROFESSIONALS IN UNDERSERVED AREAS, NHI IS POSSIBLY PREVENTING MORE TRAGIC AND COSTLY MEDICAL EMERGENCIES AND DISEASES THAT MIGHT NOT HAVE OTHERWISE BEEN PREVENTED. BY INVESTING IN ENVIRONMENTALLY-FRIENDLY AND PATIENT-FRIENDLY FACILITIES, NHI HELPS TO ENSURE THAT PATIENTS WILL FEEL COMFORTABLE SEEKING HEALTH CARE WHEN THEY NEED IT MOST, RATHER THAN WAITING UNTIL A MEDICAL SITUATION EXACERBATES. THIS COMMITMENT ALSO ENSURES THAT WE DO OUR PART TO PRESERVE THE WORLD AND THE ENVIRONMENT IN WHICH WE LIVE.
Affiliated health care system Schedule H, Part VI, Line 6 NORTON HEALTHCARE, INC. (NHC), PARENT OF NORTON HOSPITALS, INC. (NHI), IS INDEPENDENTLY OVERSEEN BY A 23 MEMBER BOARD OF TRUSTEES. WITH THE EXCEPTION OF NHC'S PRESIDENT AND CHIEF EXECUTIVE OFFICER, NONE OF THESE INDIVIDUALS ARE EMPLOYEES OF THE ORGANIZATION. ALL MEMBERS OF THE BOARD RESIDE IN THE ORGANIZATION'S PRIMARY SERVICE ARE. COMMUNITY MEDICAL ASSOCIATES, INC. (CMA) IS ALSO A WHOLLY OWNED AFFILIATE OF NHC. CMA'S PHYSICIANS PROVIDE CHARITY CARE FOR PATIENTS THAT MEET THE CHARITY GUIDELINES OF CMA.
STATE FILING OF COMMUNITY BENEFIT REPORT SCHEDULE H, PART VI, LINE 7 STATE FILING OF COMMUNITY BENEFIT REPORT; NOT REQUIRED AT THIS TIME.
Schedule H (Form 990) 2012
Additional Data


Software ID: 12000266
Software Version: v2012.1.0
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
2012
Open to Public Inspection
Name of the organization
NORTON HOSPITALS INC
 
Employer identification number

61-0703799
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 or provision of all of 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 filing organization used to establish the compensation of the
organization's CEO/Executive Director. Check all that apply. Do not check any boxes for methods
used by a related organization to establish compensation of the CEO/Executive Director, but explain in Part III.
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
 
No
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 Regulations 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 Paperwork Reduction Act Notice, see the Instructions for Form 990.
Cat. No. 50053T
Schedule J (Form 990) 2012

Schedule J (Form 990) 2012
Page 2
Part II
Officers, Directors, Trustees, Key Employees, and Highest Compensated Employees. Use duplicate copies if additional space is 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) for each listed individual must equal the total amount of Form 990, Part VII, Section A, line 1a, applicable column (D) and (E) amounts for that individual.
(A) Name and Title (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 as deferred
in prior Form 990
(i) Base compensation (ii) Bonus & incentive compensation (iii) Other reportable compensation
(1)DAVID DOERINGPHYSICIAN (i)
(ii)		 398,095
0 		327,500
0 		18,548
0 		21,698
0 		21,819
0 		787,660
0 		0
0
(2)DOUGLAS WINKELHAKEHOSPITAL PRESIDENT (i)
(ii)		 74,024
361,582 		94,914
0 		12,999
75,601 		17,970
87,778 		4,509
18,549 		204,417
543,511 		0
47,040
(3)JEFFREY GOLDBERGPHYSICIAN (i)
(ii)		 405,422
0 		327,500
0 		1,800
0 		20,996
0 		22,635
0 		778,353
0 		0
0
(4)JOHN HAMMPHYSICIAN (i)
(ii)		 411,988
0 		327,500
0 		1,548
0 		27,531
0 		18,652
0 		787,219
0 		0
0
(5)JOHN HARRYMANHOSPITAL PRESIDENT (i)
(ii)		 400,800
0 		106,740
0 		102,720
0 		107,742
0 		23,375
0 		741,378
0 		58,520
0
(6)JON COOPERFORMER VP SURGICAL SERVICES (i)
(ii)		 53,288
155,309 		0
99,976 		1,968
53,283 		13,423
39,120 		4,509
15,401 		73,188
363,088 		0
24,576
(7)KEVIN WARDELLHOSPITAL PRESIDENT (i)
(ii)		 426,066
0 		118,026
0 		100,702
0 		109,747
0 		20,023
0 		774,564
0 		58,520
0
(8)MARY GORDINIERPHYSICIAN (i)
(ii)		 396,099
0 		327,500
0 		17,540
0 		12,787
0 		5,976
0 		759,902
0 		0
0
(9)MICHAEL W GOUGHTREASURER (i)
(ii)		 0
586,193 		0
824,521 		0
210,620 		0
517,448 		0
24,702 		0
2,163,484 		0
83,860
(10)ROBERT B AZARSECRETARY (i)
(ii)		 0
359,568 		0
140,001 		0
37,492 		0
86,668 		0
8,271 		0
631,999 		0
0
(11)ROBERT SHAWHOSPITAL PRESIDENT (i)
(ii)		 345,516
0 		112,525
0 		111,141
0 		77,182
0 		16,038
0 		662,401
0 		69,069
0
(12)RUSSELL F COXVICE PRESIDENT (i)
(ii)		 0
738,791 		0
1,000,020 		0
245,833 		0
853,982 		0
22,373 		0
2,861,000 		0
99,540
(13)STEPHEN A WILLIAMSPRESIDENT/TRUSTEE (i)
(ii)		 0
906,721 		0
541,463 		0
3,238,307 		0
268,751 		0
18,842 		0
4,974,084 		0
2,047,208
(14)STEVEN MACLAUCHLANHOSPITAL PRESIDENT (i)
(ii)		 367,013
0 		79,105
0 		40,929
0 		86,910
0 		64,153
0 		638,110
0 		0
0
(15)STEVEN PURSELLPHYSICIAN (i)
(ii)		 466,780
0 		327,500
0 		22,148
0 		21,532
0 		10,294
0 		848,255
0 		0
0
(16)THOMAS KMETZDIVISION PRESIDENT (i)
(ii)		 446,290
0 		124,479
0 		98,712
0 		115,156
0 		23,305
0 		807,942
0 		58,520
0
Schedule J (Form 990) 2012

Schedule J (Form 990) 2012
Page 3
Part III
Supplemental Information
Complete this part to provide the information, explanation, or descriptions required for Part I, lines 1a, 1b, 3, 4a, 4b, 4c, 5a, 5b, 6a, 6b, 7, and 8, and for Part II.
Also complete this part for any additional information.
Identifier Return Reference Explanation
Tax indemnification and gross-up payments Schedule J, 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 2012, GROSS-UP PAYMENTS WERE PROCESSED AS OUTLINED IN THE EMPLOYMENT CONTRACT FOR THE CEO. SEE NARRATIVE PROVIDED IN SCHEDULE O, REFERENCING PART VI, LINE 15, WHICH DESCRIBES THE PROCESS FOR DETERMINING COMPENSATION FOR THE CEO, OFFICERS AND KEY EMPLOYEES OF THE ORGANIZATION. ANNUITY - THE TAX GROSS-UP ASSOCIATED WITH THE ANNUITY BENEFIT IS $279,327. 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, 2010, 2011 AND 2012. INCLUDED IN MR. WILLIAMS COMPENSATION IN 2012 IS $356,953 WHICH IS THE COST OF THE PURCHASED ANNUITY. THE TOTAL COST OF THE PURCHASED ANNUITY AND THE ASSOCIATED TAX GROSS-UP IS $636,280, WHICH WAS INCLUDED IN TAXABLE COMPENSATION. TEMPORARY TOTAL DISABLITY COVERAGE AND LONG TERM DISABILITY- THIS COMBINED TRANSACTION CONSIST OF PARTIAL REFUND FOR PAYMENT PAID ON BEHALF OF MR. WILLIAMS DURING THE 2011 TAX YEAR FOR TEMPORARY TOTAL DISABILITY AND ONE YEAR PREMIUM FOR LONG TERM DISABILITY. THE TAX GROSS-UP CREDIT ASSOCIATED WITH THE REFUND AND PURCHASE OF THIS COVERAGE IS ($9,480). INCLUDED IN MR. WILLIAMS COMPENSATION IN 2012 IS $(12,115) WHICH IS THE COST OF THE PURCHASED COVERAGE OF $6,911 AND REFUND OF $19,026. THE TOTAL COST /CREDIT AND THE ASSOCIATED TAX GROSS-UP IS CREDIT $21,595, WHICH WAS INCLUDED IN TAXABLE COMPENSATION.
Discretionary spending account Schedule J, Part I, Line 1a 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 2012: STEPHEN A. WILLIAMS - $57,229 RUSSELL F. COX - 59,434 MICHAEL G. GOUGH - 52,208 ROBERT B. AZAR - 17,500 KEVIN WARDELL - 17,500 JOHN HARRYMAN - 17,500 THOMAS KMETZ - 17,500 DOUGLAS WINKELHAKE - 17,500 STEVEN MACLAUCHLAN - 17,500 ROBERT SHAW - 20,000 JON COOPER - 10,000
Arrangement used to establish the top management official's compensation Schedule J, Part I, Line 3 NORTON HEALTHCARE INC (NHI) EIN 61-1028725 IS THE PARENT ORGANIZATION FOR NORTON HOSPITALS, INC AND THEREFORE ESTABLISHES COMPENSATION FOR THE CEO, OFFICERS AND KEY EMPLOYEES THROUGH ENGAGING WITH THE EXECUTIVE COMMITTEE OF NHI; AN INDEPENDENT COMPENSATION CONSULTANT;WRITTEN EMPLOYMENT AGREEMENTS; THIRD PARTY COMPENSATION SURVEYS AND APPROVAL BY THE EXECUTIVE COMMITTEE AND BOARD. SEE NARRATIVE IN SCHEDULE O, REFERENCING PART VI, LINE 15 WHICH FURTHER DESCRIBES THE PROCESS FOR DETERMINING COMPENSATION FOR THE ORGANIZATION.
ARRANGEMENT USED TO ESTABLISH THE TOP MANAGEMENT OFFICIAL'S COMPENSATION SCHEDULE J, PART I, LINE 3 NORTON HEALTHCARE INC (NHI) EIN 61-1028725 IS THE PARENT ORGANIZATION FOR NORTON HOSPITALS, INC AND THEREFORE ESTABLISHES COMPENSATION FOR THE CEO, OFFICERS AND KEY EMPLOYEES THROUGH ENGAGING WITH THE EXECUTIVE COMMITTEE OF NHI; AN INDEPENDENT COMPENSATION CONSULTANT; WRITTEN EMPLOYMENT AGREEMENTS; THIRD PARTY COMPENSATION SURVEYS AND APPROVAL BY THE EXECUTIVE COMMITTEE AND BOARD. SEE NARRATIVE IN SCHEDULE O, REFERENCING PART VI, LINE 15 WHICH FURTHER DESCRIBES THE PROCESS FOR DETERMINING COMPENSATION FOR THE ORGANIZATION.
Supplemental nonqualified retirement plan Schedule J, 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" OULINED BELOW REPRESENTS A REASONABLE ESTIMATE OF THE ANNUAL INCREASE IN ACTUARIAL VALUE OF THE PLANS; AND THEREFORE, REPRESENTS THE ORGANIZATION'S CONTRIBUTION TO THE VALUE OF THE BENEFITS. NAME - PAY CREDIT STEPHEN A. WILLIAMS - $ 130,924 RUSSELL F. COX - 829,613 MICHAEL W. GOUGH - 493,579 ROBERT AZAR - 70,050 GINGER FIGG - 71,214 WILLIAM RICHIE - 37,892 JON COOPER - 33,266 JOHN HARRYMAN - 83,767 THOMAS KMETZ - 90,379 STEVE MACLAUCHLAN - 74,410 ROBERT SHAW - 62,387 KEVIN WARDELL - 88,387 DOUGLAS WINKELHAKE - 80,742 THE "PAYMENT RECEIVED" OUTLINED BELOW REPRESENTS CASH PAYMENTS THAT THE EMPLOYEE RECEIVED DURING 2012 AND CAN BE COMPRISED OF PRIOR YEARS EMPLOYEE AND EMPLOYER CONTRIBUTIONS. NAME - PAYMENT RECEIVED STEPHEN A. WILLIAMS - $2,540,883 RUSSELL F. COX - 108,074 MICHAEL W. GOUGH - 93,007 ROBERT AZAR - 0 GINGER FIGG - 50,923 WILLIAM RICHIE - 28,257 JON COOPER - 25,548 JOHN HARRYMAN - 62,008 THOMAS KMETZ - 60,169 STEVE MACLAUCHLAN - 0 ROBERT SHAW - 75,901 KEVIN WARDELL - 56,263 DOUGLAS WINKELHAKE - 52,587
Schedule J (Form 990) 2012

Additional Data


Software ID: 12000266
Software Version: v2012.1.0
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, line 38a or 40b.
MediumBullet Attach to Form 990 or Form 990-EZ. MediumBullet See separate instructions.
OMB No. 1545-0047
2012
Open to Public Inspection
Name of the organization
NORTON HOSPITALS INC
 
Employer identification number

61-0703799
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) Relationship between disqualified person and organization (c) Description of transaction (d) Corrected?
Yes No





2
Enter the amount of tax incurred by 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-EZ, Part V, line 38a, or Form 990, Part IV, line 26; or if the organization reported an amount on Form 990, Part X, line 5, 6, or 22
(a) Name of interested person (b) Relationship with organization (c) Purpose of loan (d) Loan to or from the organization? (e)Original principal amount (f)Balance due (g) In default? (h) Approved by board or committee? (i)Written agreement?
To From Yes No Yes No Yes No
Total ......Small Bullet $  
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 assistance (d) Type of assistance (e) Purpose of assistance
For Paperwork Reduction Act Notice, see the Instructions for Form 990 or 990-EZ.
Cat. No. 50056A
Schedule L (Form 990 or 990-EZ) 2012
Schedule L (Form 990 or 990-EZ) 2012
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) JASON NACAZEL
  		FAMILY MEMBER OF RONALD LEHOCKY, TRUSTEE 77,706 COMPENSATION   No
(2) ANNE ROBINSON
  		FAMILY MEMBER OF DONALD H ROBINSON, TRUSTEE 41,427 COMPENSATION   No
(3) AMY TONN
  		FAMILY MEMBER OF RUSSELL F. COX, OFFICER 44,849 COMPENSATION   No
(4) PEDIATRIC ANESTHESIA ASSOCIATES PSC (PAA)
  		DR MARY BOUVETTE PARTNER IN PAA IS REALTED TO MARIA L BOUVETTE, TRUSTEE 1,919,732 PROFESSIONAL SERVICES   No
(5) BARBARA KMETZ
  		FAMILY MEMBER OF THOMAS KMETZ, KEY EMPLOYEE 65,698 COMPENSATION   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) 2012

Additional Data


Software ID: 12000266
Software Version: v2012.1.0




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
2012
Open to Public
Inspection
Name of the organization
NORTON HOSPITALS INC
 
Employer identification number

61-0703799
Identifier Return Reference Explanation
COMMON PAYING AGENT 1099S FORM 990, PART V, LINE 1A NORTON HEALTHCARE, INC., EIN 61-1028725 IS THE COMMON PAYING AGENT FOR NORTON HOSPITALS, INC. AND THEREFORE, ALL VENDORS, INCLUDING INDEPENDENT CONTRACTORS, ARE PAID AND REPORTED BY NORTON HEALTHCARE, INC. ON BEHALF OF NORTON HOSPITALS, INC. FOR PURPOSES OF PART V, LINE 1, THE NUMBER OF 1099S REPORTED AND FILED FOR 2012 BY NORTON HEALTHCARE, INC. FOR NORTON HOSPITALS, INC., WAS APPROXIMATELY 295. NORTON HOSPITALS, INC., HAS APPROXIMATELY 142 INDEPENDENT CONTRACTORS EXCEEDING $100,000 FOR 2012.
COMMON PAYING AGENT FOR EMPLOYEES FORM 990, PART V, LINE 2A NORTON HEALTHCARE, INC. EIN 61-102875 IS THE COMMON PAYING AGENT FOR NORTON HOSPITALS, INC. THEREFORE, ALL APPLICABLE IRS TAX COMPLIANCE FILINGS ARE REPORTED BY NORTON HEALTHCARE, INC. ON BEHALF OF NORTON HOSPITALS, INC. NORTON HOSPITALS, INC AS APPROXIMATELY 9,061 EMPLOYEES.
Delegate broad authority to a committee Form 990, Part VI, Section A, Line 1a THE EXECUTIVE COMMITTEE SHALL POSSESS AND MAY EXERCISE ALL THE POWERS AND AUTHORITY OF THE BOARD OF TRUSTEES IN THE MANAGEMENT AND DIRECTION OF THE BUSINESS AND AFFAIRS OF THE CORPORATION. HOWEVER, THE EXECUTIVE COMMITTEE DOES NOT POSSESS THE AUTHORITY TO DO THE FOLLOWING: A)FILL VACANCIES ON THE BOARD; B)CHANGE THE MEMBERSHIP OF THE EXECUTIVE COMMITTEE; C)MAKE DECISIONS TO MERGE, LIQUIDATE, OR OTHERWISE MAKE DECISIONS OUTSIDE OF THE NORMAL COURSE OF BUSINESS; D)MAKE FINAL DETERMINATIONS OF LONG-TERM POLICY; E)HIRE OR FIRE THE CHIEF EXECUTIVE OFFICER; AND F)AMEND THE ARTICLES OF INCORPORATION OR BYLAWS.
Family/business relationships amongst interested persons 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, INC., AND NORTON PROPERTIES, INC. MARIA L. BOUVETTE, PRESIDENT AND CEO OF PORTER BANCORP, INC. IS A TRUSTEE FOR NORTON HEALTHCARE, INC., NORTON HOSPITALS, INC., COMMUNITY MEDICAL ASSOCIATES, INC. AND NORTON PROPERTIES, INC. MR. WILLIAMS IS A BOARD MEMBER OF PORTER BANCORP, INC. - BUSINESS RELATIONSHIP
Classes of members or stockholders Form 990, Part VI, Section A, Line 6 NORTON HEALTHCARE, INC. EIN 61-1028725 IS THE SOLE MEMBER OF NORTON HOSPITALS, INC.
Review of form 990 by governing body Form 990, Part VI, Section B, Line 11b AT THE OCTOBER 3, 2013 FINANCE COMMITTEE MEETING OF NORTON HEALTHCARE, INC. (NORTON), THE 990S WERE DISCUSSED AND COMMITTEE MEMBERS HAD AN OPPORTUNITY TO ASK QUESTIONS. COINCIDING WITH THE FINANCE COMMITTEE MEETING, ELECTRONIC COPIES OF THE 990S WERE MADE AVAILABLE TO ALL MEMBERS OF THE FINANCE COMMITTEE AND BOARD OF TRUSTEES THROUGH THE DIRECTOR'S PORTAL SITE. NORTON IS THE PARENT OF COMMUNITY MEDICAL ASSOCIATES, INC., NORTON HOSPITALS, INC., NORTON PROPERTIES, INC., NORTON HEALTHCARE FOUNDATION, INC. AND THE CHILDREN'S HOSPITAL FOUNDATION, INC.
Conflict of interest policy 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.
Process used to establish compensation of top management official Form 990, Part VI, Section B, Line 15a PLEASE SEE EXPLANATION PROVIDED FOR FORM 990, PART VI, LINE 15B
Process used to establish compensation of other officers/key employees Form 990, Part VI, Section B, Line 15b THE ORGANIZATION TAKES ALL NECESSARY STEPS TO ENSURE THAT COMPENSATION FOR ALL OFFICERS, DIRECTORS AND KEY EMPLOYEES IS REASONABLE AND APPROPRIATE FOR THE SERVICES PROVIDED TO THE ORGANIZATION. THE ORGANIZATION PROVIDES A TOTAL COMPENSATION PACKAGE THAT IS ON PAR WITH COMPENSATION PROVIDED BY SIMILAR ORGANIZATIONS AND WHICH CONFORMS TO THE POLICIES AND GUIDELINES SET OUT BY THE BOARD OF TRUSTEES. NORTON HEALTHCARE, INC. (NHI) ENGAGES AN OUTSIDE INDEPENDENT COMPENSATION CONSULTANT, INTEGRATED HEALTHCARE STRATEGIES (IHS), TO PROVIDE COMPARABILITY DATA FOR NHI'S OFFICERS AND KEY EMPLOYEES ON TOTAL COMPENSATION FOR SIMILAR POSITIONS AT HEALTH SYSTEMS AND HOSPITAL ORGANIZATIONS SIMILAR IN SIZE, SCOPE OF SERVICES, AND CIRCUMSTANCES. IN ADDITION, THE ORGANIZATION PARTICIPATES IN THIRD PARTY SURVEYS WHICH PROVIDE AGGREGATE, COMPARATIVE COMPENSATION DATA FOR OFFICERS AND KEY EMPLOYEES IN SIMILAR POSITIONS AT SIMILAR ORGANIZATIONS. IHS CONSULTANTS PRESENTED AND DISCUSSED THIS COMPARABILITY DATA IN 2011 FOR THE 2012 COMPENSATION REVIEW AND MET IN 2012 FOR THE 2013 COMPENSATION REVIEW WITH THE COMMITTEE OF BOARD LEADERSHIP (NOW EXECUTIVE COMMITTEE) OF THE BOARD OF TRUSTEES (BOARD) THE COMMITTEE REVIEWED THE EXECUTIVE COMPENSATION AND BENEFITS PROGRAM, DETERMINED TOTAL COMPENSATION FOR THE CEO, AND APPROVED COMPENSATION FOR OTHER OFFICERS AND KEY EMPLOYEES. THE COMMITTEE REVIEWED NHI'S VARIABLE COMPENSATION PROGRAM AND DETERMINED APPROPRIATE AWARDS FOR PERFORMANCE RELATIVE TO GOALS SET FOR THE YEAR. AFTER THE COMMITTEE DETERMINED APPROPRIATE COMPENSATION AND BENEFITS FOR OFFICERS AND KEY EMPLOYEES, THE BOARD APPROVED THEIR TOTAL COMPENSATION. EMPLOYMENT CONTRACTS FOR THE CEO, COO, AND CFO AND KEY EMPLOYEES ARE SIGNED, AND REVIEWED AS NECESSARY.
Governing documents, conflict of interest policy and financial statements available to the public Form 990, Part VI, Section C, Line 19 FINANCIAL STATEMENTS, GOVERNING DOCUMENTS, AND CONFLICTS OF INTEREST POLICIES ARE NOT REQUIRED DISCLOSURES PURSUANT TO INTERNAL REVENUE CODE (IRC) SECTION 6104. THESE DOCUMENTS ARE NOT AVAILABLE TO THE PUBLIC
BOARD MEMBER STIPEND PAYMENTS FORM 990, PART VII, SECTION A, LINE 1A, COLUMN (E) NORTON HEALTHCARE, INC. (NHI) AND AFFILIATES (NORTON HOSPITALS, INC., COMMUNITY MEDICAL ASSOCIATES, INC., NORTON PROPERTIES, INC., NORTON HEALTHCARE FOUNDATION, INC., AND THE CHILDREN'S HOSPITAL FOUNDATION, INC.) ENCOURAGES AND FACILITATES BOARD MEMBER ATTENDANCE AT EDUCATIONAL PROGRAMS AND CONFERENCES ON SUBJECTS RELEVANT TO NHI. NHI'S TRAVEL POLICY FOR BOARD OF TRUSTEES PROVIDES THAT FOR EACH TRUSTEE THAT ATTENDS AT LEAST ONE OUT OF TOWN EDUCATIONAL CONFERENCE, A LUMP SUM STIPEND WILL BE PAID TO COVER UNREIMBURSED TRAVEL EXPENSE AND OTHER MISCELLANEOUS EXPENSES ASSOCIATED WITH CONFERENCE PREPARATION, ATTENDANCE OR FOLLOW UP. IN COMPLIANCE WITH IRS REGULATIONS, NHI PROVIDES A FORM 1099 TO ANY TRUSTEE THAT RECEIVES A STIPEND. THESE AMOUNTS HAVE BEEN REPORTED IN PART VII OR THE FORM 990 AS REPORTABLE COMPENSATION TO THE TRUSTEE RECEIVING STIPENDS IN 2012.
Other changes in net assets or fund balances Form 990 , Part XI, Line 9 AFFILIATE TRANSFER - -15804;
A-133 AUDITS PART XII LINE 3A AND 3B FORM 990, PART XII, LINE 3A AS REQUIRED BY THE U.S. OFFICE OF MANAGEMENT AND BUDGET CIRCULAR A-133, AUDITS OF STATES, LOCAL GOVERNMENTS, AND NON-PROFITS ORGANIZATIONS, IN 2011 NORTON HEALTHCARE, INC. AND AFFILIATES (NORTON HOSPITALS, INC. COMMUNITY MEDICAL ASSOCIATES, INC., NORTON ENTERPRISES, INC., NORTON HEALTHCARE FOUNDATION, INC., NORTON PROPERTIES, INC., AND THE CHILDREN'S HOSPITAL FOUNDATION) RECEIVED AN AUDIT IN ACCORDANCE WITH SINGLE AUDIT ACT.
For Paperwork Reduction Act Notice, see the Instructions for Form 990 or 990-EZ.
Cat. No. 51056K
Schedule O (Form 990 or 990-EZ) 2012

Additional Data


Software ID: 12000266
Software Version: v2012.1.0
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
2012
Open to Public Inspection
Name of the organization
NORTON HOSPITALS INC
 
Employer identification number

61-0703799
Part I
Identification of Disregarded Entities (Complete if the organization answered "Yes" to Form 990, Part IV, line 33.)
(a)
Name, address, and EIN (if applicable) 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" to 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 entity?
Yes No
(1) NORTON HEALTHCARE INC

ACCOUNTING 224 E BROADWAY 5TH FLOOR

LOUISVILLE,KY40202
 PROVIDE ADMINISTRATIVE AND SUPPORT SERVICES KY 501(C)(3) 11 - Type II NA
 
 
No
(2) COMMUNITY MEDICAL ASSOCIATES INC

ACCOUNTING 224 E BROADWAY 5TH FLOOR

LOUISVILLE,KY40202
 OPERATES A NETWORK OF PHYSICIAN PRACTICES KY 501(C)(3) 9 NORTON HEALTHCARE INC
 
 
No
(3) NORTON PROPERTIES INC

ACCOUNTING 224 E BROADWAY 5TH FLOOR

LOUISVILLE,KY40202
 MAINTAIN OFFICE AND PARKING FACILITIES KY 501(C)(3) 11 - Type I NORTON HEALCARE INC
 
 
No
(4) THE CHILDREN'S HOSPITAL FOUNDATION INC

ACCOUNTING 224 E BROADWAY 5TH FLOOR

LOUISVILLE,KY40202
 GENERATE FUNDS TO SUPPORT PROGRAMS AND SERVICES KY 501(C)(3) 7 NORTON HEALTHCARE INC
 
 
No
(5) NORTON HEALTHCARE FOUNDATION INC

ACCOUNTING 224 E BROADWAY 5TH FLOOR

LOUISVILLE,KY40202
 GENERATE FUNDS TO SUPPORT PROGRAMS AND SERVICES KY 501(C)(3) 7 NORTON HEALTHCAREINC
 
 
No




For Paperwork Reduction Act Notice, see the Instructions for Form 990.
Cat. No. 50135Y
Schedule R (Form 990) 2012
Schedule R (Form 990) 2012
Page 2
Part III
Identification of Related Organizations Taxable as a Partnership (Complete if the organization answered "Yes" to 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" to 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
 		(i)
Section 512(b)(13) controlled entity?
Yes No












Schedule R (Form 990) 2012
Schedule R (Form 990) 2012
Page 3
Part V
Transactions With Related Organizations (Complete if the organization answered "Yes" to Form 990, Part IV, line 34, 35b, or 36.)
Note. Complete line 1 if any entity is listed in Parts II, III, or IV of this schedule.
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 or (iv) rent from a controlled entity . . . . . . . . . . . . . . . . . . . . . . .
1a
 
No
b Gift, grant, or capital contribution to related organization(s) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
1b
 
No
c Gift, grant, or capital contribution from related organization(s) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
1c
Yes
 
d Loans or loan guarantees to or for related organization(s) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
1d
 
No
e Loans or loan guarantees by related organization(s) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
1e
 
No
f Dividends from related organization(s) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
1f
 
No
g Sale of assets to related organization(s) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
1g
 
No
h Purchase of assets from related organization(s) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
1h
 
No
i Exchange of assets with related organization(s) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
1i
 
No
j Lease of facilities, equipment, or other assets to related organization(s) . . . . . . . . . . . . . . . . . . . . . . . . . . . .
1j
 
No
k Lease of facilities, equipment, or other assets from related organization(s) . . . . . . . . . . . . . . . . . . . . . . . . . . .
1k
 
No
l Performance of services or membership or fundraising solicitations for related organization(s) . . . . . . . . . . . . . . . . . . . .
1l
 
No
m Performance of services or membership or fundraising solicitations by related organization(s) . . . . . . . . . . . . . . . . . . . .
1m
 
No
n Sharing of facilities, equipment, mailing lists, or other assets with related organization(s) . . . . . . . . . . . . . . . . . . . . .
1n
 
No
o Sharing of paid employees with related organization(s) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
1o
Yes
 
p Reimbursement paid to related organization(s) for expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
1p
 
No
q Reimbursement paid by related organization(s) for expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
1q
 
No
r Other transfer of cash or property to related organization(s) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
1r
Yes
 
s Other transfer of cash or property from related organization(s) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
1s
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-s) 		(c)
Amount involved 		(d)
Method of determining amount involved





Schedule R (Form 990) 2012
Schedule R (Form 990) 2012
Page 4
Part VI
Unrelated Organizations Taxable as a Partnership (Complete if the organization answered "Yes" to 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)
Predominant income (related, unrelated, excluded from tax under section 512-514)

(e)
Are all partners
section
501(c)(3)
organizations? 		(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 Yes No






























Schedule R (Form 990) 2012
Schedule R (Form 990) 2012
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

Additional Data


Software ID: 12000266
Software Version: v2012.1.0