TY 2015 Form 990

(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)	(E) Reportable compensation from related organizations (W- 2/1099-MISC)
(1) Stephen A Williams CEO/Trustee	10.0 ................. 40.0	X	X	2,599,308	135,934
(2) Maria L Bouvette Trustee	1.0 ................. 2.5	X		1,600	0
(3) Brendan Canavan Trustee	1.0 ................. 2.5	X		1,600	0
(4) Sue Davis EdD RN Trustee	1.0 ................. 2.5	X		1,600	0
(5) Craig D Grant Trustee	1.0 ................. 2.5	X		1,600	0
(6) Louis S Heuser MD Trustee	1.0 ................. 2.5	X		1,600	0
(7) Martha K Heyburn MD Trustee	1.0 ................. 4.5	X		1,600	0
(8) Richard R Ivey Trustee	1.0 ................. 2.5	X		1,600	0
(9) Ronald Lehocky MD Trustee	1.0 ................. 4.5	X		1,600	0
(10) Gail Lyttle Trustee	1.0 ................. 2.5	X		1,600	0
(11) Gregory E Mayes Trustee	1.0 ................. 6.5	X		1,600	0
(12) Joseph J McGowan EdD Trustee	1.0 ................. 2.5	X		1,600	0
(13) Edie Nixon Trustee	1.0 ................. 3.5	X		1,600	0
(14) Barry Pennybaker Trustee	1.0 ................. 2.5	X		1,600	0
(15) Erwin Roberts Trustee	1.0 ................. 2.5	X		1,600	0
(16) G Hunt Rounsavall Jr Trustee	1.0 ................. 5.5	X		1,600	0
(17) Rev William J Schultz Trustee	1.0 ................. 4.5	X		1,600	0

(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)	(E) Reportable compensation from related organizations (W- 2/1099-MISC)	(F) Estimated amount of other compensation from the organization and related organizations
(18) Gary L Stewart Trustee	1.0 .......................4.5	X					0	1,600	0
(19) James L Sublett MD Trustee	1.0 .......................2.5	X					0	1,600	0
(20) Richard S Wolf MD Honorary Chair Emeritus	1.0 .......................3.5	X					0	1,600	0
(21) Donald H Robinson Chair	1.0 .......................13.5	X					0	0	0
(22) Maria Gerwing Hampton Vice Chair	1.0 .......................8.5	X					0	1,600	0
(23) Russell F Cox President	10.0 .......................40.0		X				0	1,371,692	763,935
(24) Michael W Gough Sys Sr VP CFO/Treasurer	10.0 .......................40.0		X				0	1,141,474	560,808
(25) Robert B Azar Sys VP Chief Legal Officer/Secretary	10.0 .......................40.0		X				0	653,501	117,515
(26) Thomas Kmetz Division President Women and Children Services	50.0 .......................1.0			X			743,818	0	165,028
(27) Kevin Wardell Hospital CAO	50.0 .......................0			X			699,231	0	118,414
(28) John Harryman Hospital CAO	50.0 .......................0			X			606,355	0	834,940
(29) Mary Gruebbel VP Pediatric Ops/CNO	50.0 .......................0			X			473,135	0	49,351
(30) Charlotte Ipsan Hospital CAO	50.0 .......................0			X			451,259	0	105,330
(31) Matthew Ayers Hospital CAO	50.0 .......................0			X			403,238	0	86,982
(32) Brian Stoll Physician	50.0 .......................0				X		817,293	0	70,691
(33) Aaron Spalding Physician	50.0 .......................0				X		812,268	0	53,146
(34) Michael Hahl Physician	50.0 .......................0				X		805,545	0	48,934
(35) Mark Cornett Physician	50.0 .......................0				X		804,664	0	56,013
(36) Patrick Williams Physician	50.0 .......................0				X		798,447	0	25,374
(37) Steven MacLauchlan Hospital President	0.0 .......................0					X	661,941	0	54,166
(38) Steven Pursell VP Medical Director NCI	50.0 .......................0					X	733,682	0	40,000

(A) Name and business address	(B) Description of services	(C) Compensation
UNIVERSITY OF LOUISVILLE 323 E CHESTNUT ST LOUISVILLE,KY40202	RESIDENCY PROGRAM	9,765,913
WEHR CONSTRUCTORS INC 2517 PLANTSIDE DR LOUISVILLE,KY40299	CONSTRUCTION	5,940,765
JENNER & BLOCK LLP 353 NORTH CLARK ST CHICAGO,IL606543456	LEGAL SERVICES	5,167,097
PEDIATRIC ANESTHESIA ASSOCIATES PSC 702 NORTH SHORE DR SUITE 500 JEFFERSONVILLE,IN47130	ANESTHESIA SERVICES	4,377,536
MORRISON MANAGEMENT SPECIALISTS INC PO BOX 102289 ATLANTA,GA303682289	DIETARY SERVICES	4,237,635
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 130

- TIN:

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.
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Attach to Form 990 or Form 990-EZ.
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Information about Schedule A (Form 990 or 990-EZ) and its instructions is at www.irs.gov/form990.

OMB No. 1545-0047

2015

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.)

A church, convention of churches, or association of churches described in section 170(b)(1)(A)(i).

A school described in section 170(b)(1)(A)(ii). (Attach Schedule E (Form 990 or 990-EZ))

A hospital or a cooperative hospital service organization described in section 170(b)(1)(A)(iii).

A medical research organization operated in conjunction with a hospital described in section 170(b)(1)(A)(iii). Enter the hospital's name, city, and state:

An organization operated for the benefit of a college or university owned or operated by a governmental unit described in section 170(b)(1)(A)(iv). (Complete Part II.)

A federal, state, or local government or governmental unit described in section 170(b)(1)(A)(v).

An organization that normally receives a substantial part of its support from a governmental unit or from the general public described in section 170(b)(1)(A)(vi). (Complete Part II.)

A community trust described in section 170(b)(1)(A)(vi). (Complete Part II.)

An organization that normally receives: (1) more than 331/3% of its support from contributions, membership fees, and gross 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.)

An organization organized and operated exclusively to test for public safety. See section 509(a)(4).

An organization organized and operated exclusively for the benefit of, to perform the functions of, or to carry out the purposes of one or more publicly supported organizations described in section 509(a)(1) or section 509(a)(2). See section 509(a)(3). Check the box in lines 11a through 11d that describes the type of supporting organization and complete lines 11e, 11f, and 11g.

Type I. A supporting organization operated, supervised, or controlled by its supported organization(s), typically by giving the supported organization(s) the power to regularly appoint or elect a majority of the directors or trustees of the supporting organization. You must complete Part IV, Sections A and B.

Type II. A supporting organization supervised or controlled in connection with its supported organization(s), by having control or management of the supporting organization vested in the same persons that control or manage the supported organization(s). You must complete Part IV, Sections A and C.

Type III functionally integrated. A supporting organization operated in connection with, and functionally integrated with, its supported organization(s) (see instructions). You must complete Part IV, Sections A, D, and E.

Type III non-functionally integrated. A supporting organization operated in connection with its supported organization(s) that is not functionally integrated. The organization generally must satisfy a distribution requirement and an attentiveness requirement (see instructions). You must complete Part IV, Sections A and D, and Part V.

Check this box if the organization received a written determination from the IRS that it is a Type I, Type II, Type III functionally integrated, or Type III non-functionally integrated supporting organization.

Enter the number of supported organizations ..............

Provide the following information about the supported organization(s).

(i)Name of supported organization	(ii) EIN	(iv) Is the organization listed in your governing document?		(v) Amount of monetary support (see instructions)	(vi) Amount of other support (see instructions)
(i)Name of supported organization	(ii) EIN	Yes	No	(v) Amount of monetary support (see instructions)	(vi) Amount of other support (see instructions)


Total

For Paperwork Reduction Act Notice, see the Instructions for
Form 990 or 990-EZ.

Cat. No. 11285F

Schedule A (Form 990 or 990-EZ) 2015

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)		(a) 2011	(b) 2012	(c) 2013	(d) 2014	(e) 2015	(f) Total
1	Gifts, grants, contributions, and membership fees received. (Do not include any unusual grants.) ....
2	Tax revenues levied for the organization's benefit and either paid to or expended on its behalf.......
3	The value of services or facilities furnished by a governmental unit to the organization without charge..
4	Total. Add lines 1 through 3
5	The portion of total contributions by each person (other than a governmental unit or publicly supported organization) included on line 1 that exceeds 2% of the amount shown on line 11, column (f)..
6	Public support. Subtract line 5 from line 4.

Section B. Total Support

Calendar year (or fiscal year beginning in)		(a) 2011	(b) 2012	(c) 2013	(d) 2014	(e) 2015	(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 VI.)..
11	Total support. Add lines 7 through 10.

Gross receipts from related activities, etc. (see instructions) ..................

First five years. If the Form 990 is for the organization's first, second, third, fourth, or fifth tax year as a section 501(c)(3) organization, check this box and stop here........................................ right arrow

Section C. Computation of Public Support Percentage

Public support percentage for 2015 (line 6, column (f) divided by line 11, column (f)) .........

Public support percentage for 2014 Schedule A, Part II, line 14 ...............

16a

33 1/3% support test—2015. If the organization did not check the box on line 13, and line 14 is 33 1/3% or more, check this box
and stop here. The organization qualifies as a publicly supported organization ....................... right arrow

33 1/3% support test—2014. If the organization did not check a box on line 13 or 16a, and line 15 is 33 1/3% or more, check this
box and stop here. The organization qualifies as a publicly supported organization ..................... right arrow

17a

10%-facts-and-circumstances test—2015. If the organization did not check a box on line 13, 16a, or 16b, and line 14
is 10% or more, and if the organization meets the facts-and-circumstances test, check this box and stop here. Explain
in Part VI how the organization meets the "facts-and-circumstances" test. The organization qualifies as a publicly supported
organization ..................................................... right arrow

10%-facts-and-circumstances test—2014. If the organization did not check a box on line 13, 16a, 16b, or 17a, and line
15 is 10% or more, and if the organization meets the "facts-and-circumstances" test, check this box and stop here.
Explain in Part VI how the organization meets the "facts-and-circumstances" test. The organization qualifies as a publicly
supported organization ................................................ right arrow

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) 2015

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)		(a) 2011	(b) 2012	(c) 2013	(d) 2014	(e) 2015	(f) Total
1	Gifts, grants, contributions, and membership fees received. (Do not include any "unusual grants.") .
2	Gross receipts from admissions, merchandise sold or services performed, or facilities furnished in any activity that is related to the organization's tax-exempt purpose......
3	Gross receipts from activities that are not an unrelated trade or business under section 513...
4	Tax revenues levied for the organization's benefit and either paid to or expended on its behalf...
5	The value of services or facilities furnished by a governmental unit to the organization without charge..
6	Total. Add lines 1 through 5.
7a	Amounts included on lines 1, 2, and 3 received from disqualified persons...
b	Amounts included on lines 2 and 3 received from other than disqualified persons that exceed the greater of $5,000 or 1% of the amount on line 13 for the year.
c	Add lines 7a and 7b..
8	Public support. (Subtract line 7c from line 6.)

Section B. Total Support

Calendar year (or fiscal year beginning in)		(a) 2011	(b) 2012	(c) 2013	(d) 2014	(e) 2015	(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 VI.) ..
13	Total support. (Add lines 9, 10c, 11, and 12.)..

First five years. If the Form 990 is for the organization's first, second, third, fourth, or fifth tax year as a section 501(c)(3) organization,
check this box and stop here............................................. right arrow

Section C. Computation of Public Support Percentage

Public support percentage for 2015 (line 8, column (f) divided by line 13, column (f)) .........

Public support percentage from 2014 Schedule A, Part III, line 15 ...............

Section D. Computation of Investment Income Percentage

Investment income percentage for 2015 (line 10c, column (f) divided by line 13, column (f)) ......

Investment income percentage from 2014 Schedule A, Part III, line 17 .............

19a

331/3% support tests—2015. If the organization did not check the box on line 14, and line 15 is more than 33 1/3%, and line 17 is not more than 33 1/3%, check this box and stop here. The organization qualifies as a publicly supported organization ....... right arrow

33 1/3% support tests—2014. If the organization did not check a box on line 14 or line 19a, and line 16 is more than 33 1/3% and line 18 is not more than 33 1/3%, check this box and stop here. The organization qualifies as a publicly supported organization .... right arrow

Private foundation. If the organization did not check a box on line 14, 19a, or 19b, check this box and see instructions .... right arrow

Schedule A (Form 990 or 990-EZ) 2015

Page 4

Part IV

Supporting Organizations

(Complete only if you checked a box on line 11 of Part I. If you checked 11a of Part I, complete Sections A and B. If you checked 11b of Part I, complete Sections A and C. If you checked 11c of Part I, complete Sections A, D, and E. If you checked 11d of Part I, complete Sections A and D, and complete Part V.)

Section A. All Supporting Organizations

Yes

Are all of the organization’s supported organizations listed by name in the organization’s governing documents?
If "No," describe in Part VI how the supported organizations are designated. If designated by class or purpose,
describe the designation. If historic and continuing relationship, explain.

Did the organization have any supported organization that does not have an IRS determination of status under section 509(a)(1) or (2)? If "Yes," explain in Part VI how the organization determined that the supported organization was described in section 509(a)(1) or (2).

Did the organization have a supported organization described in section 501(c)(4), (5), or (6)? If "Yes," answer (b) and (c) below.

Did the organization confirm that each supported organization qualified under section 501(c)(4), (5), or (6) and satisfied the public support tests under section 509(a)(2)? If "Yes," describe in Part VI when and how the organization made the determination.

Did the organization ensure that all support to such organizations was used exclusively for section 170(c)(2)(B) purposes? If "Yes," explain in Part VI what controls the organization put in place to ensure such use.

Was any supported organization not organized in the United States ("foreign supported organization")? If “Yes” and if you checked 11a or 11b in Part I, answer (b) and (c) below.

Did the organization have ultimate control and discretion in deciding whether to make grants to the foreign supported organization? If “Yes,” describe in Part VI how the organization had such control and discretion despite being controlled or supervised by or in connection with its supported organizations.

Did the organization support any foreign supported organization that does not have an IRS determination under sections 501(c)(3) and 509(a)(1) or (2)? If “Yes,” explain in Part VI what controls the organization used to ensure that all support to the foreign supported organization was used exclusively for section 170(c)(2)(B) purposes.

Did the organization add, substitute, or remove any supported organizations during the tax year? If “Yes,” answer (b) and (c) below (if applicable). Also, provide detail in Part VI, including (i) the names and EIN numbers of the supported organizations added, substituted, or removed; (ii) the reasons for each such action; (iii) the authority under the organization's organizing document authorizing such action; and (iv) how the action was accomplished (such as by amendment to the organizing document).

Type I or Type II only. Was any added or substituted supported organization part of a class already designated in the organization's organizing document?

Substitutions only. Was the substitution the result of an event beyond the organization's control?

Did the organization provide support (whether in the form of grants or the provision of services or facilities) to anyone other than (i) its supported organizations, (ii) individuals that are part of the charitable class benefited by one or more of its supported organizations, or (iii) other supporting organizations that also support or benefit one or more of the filing organization’s supported organizations? If “Yes,” provide detail in Part VI.

Did the organization provide a grant, loan, compensation, or other similar payment to a substantial contributor (defined in section 4958(c)(3)(C)), a family member of a substantial contributor, or a 35% controlled entity with regard to a substantial contributor? If “Yes,” complete Part I of Schedule L (Form 990 or 990-EZ) .

Did the organization make a loan to a disqualified person (as defined in section 4958) not described in line 7? If “Yes,” complete Part I of Schedule L (Form 990 or 990-EZ).

Was the organization controlled directly or indirectly at any time during the tax year by one or more disqualified persons as defined in section 4946 (other than foundation managers and organizations described in section 509(a)(1) or (2))? If “Yes,” provide detail in Part VI.

Did one or more disqualified persons (as defined in line 9a) hold a controlling interest in any entity in which the supporting organization had an interest? If “Yes,” provide detail in Part VI.

Did a disqualified person (as defined in line 9a) have an ownership interest in, or derive any personal benefit from, assets in which the supporting organization also had an interest? If “Yes,” provide detail in Part VI.

10a

Was the organization subject to the excess business holdings rules of section 4943 because of section 4943(f) (regarding certain Type II supporting organizations, and all Type III non-functionally integrated supporting organizations)? If “Yes,” answer line 10b below.

10a

Did the organization have any excess business holdings in the tax year? (Use Schedule C, Form 4720, to determine whether the organization had excess business holdings).

10b

Schedule A (Form 990 or 990-EZ) 2015

Page 5

Part IV

Supporting Organizations (continued)

Yes

Has the organization accepted a gift or contribution from any of the following persons?

A person who directly or indirectly controls, either alone or together with persons described in (b) and (c) below, the governing body of a supported organization?

11a

A family member of a person described in (a) above?

11b

A 35% controlled entity of a person described in (a) or (b) above? If “Yes” to a, b, or c, provide detail in Part VI.

11c

Section B. Type I Supporting Organizations

Yes

Did the directors, trustees, or membership of one or more supported organizations have the power to regularly appoint or elect at least a majority of the organization’s directors or trustees at all times during the tax year? If “No,” describe in Part VI how the supported organization(s) effectively operated, supervised, or controlled the organization’s activities. If the organization had more than one supported organization, describe how the powers to appoint and/or remove directors or trustees were allocated among the supported organizations and what conditions or restrictions, if any, applied to such powers during the tax year.

Did the organization operate for the benefit of any supported organization other than the supported organization(s) that operated, supervised, or controlled the supporting organization? If “Yes,” explain in Part VI how providing such benefit carried out the purposes of the supported organization(s) that operated, supervised or controlled the supporting organization.

Section C. Type II Supporting Organizations

Yes

Were a majority of the organization’s directors or trustees during the tax year also a majority of the directors or trustees of each of the organization’s supported organization(s)? If “No,” describe in Part VI how control or management of the supporting organization was vested in the same persons that controlled or managed the supported organization(s).

Section D. All Type III Supporting Organizations

Yes

Did the organization provide to each of its supported organizations, by the last day of the fifth month of the organization’s tax year, (i) a written notice describing the type and amount of support provided during the prior tax year, (ii) a copy of the Form 990 that was most recently filed as of the date of notification, and (iii) copies of the organization’s governing documents in effect on the date of notification, to the extent not previously provided?

Were any of the organization’s officers, directors, or trustees either (i) appointed or elected by the supported organization(s) or (ii) serving on the governing body of a supported organization? If "No," explain in Part VI how the organization maintained a close and continuous working relationship with the supported organization(s).

By reason of the relationship described in (2), did the organization’s supported organizations have a significant voice in the organization’s investment policies and in directing the use of the organization’s income or assets at all times during the tax year? If "Yes," describe in Part VI the role the organization’s supported organizations played in this regard.

Section E. Type III Functionally-Integrated Supporting Organizations

Check the box next to the method that the organization used to satisfy the Integral Part Test during the year (see instructions):

The organization satisfied the Activities Test. Complete line 2 below.

The organization is the parent of each of its supported organizations. Complete line 3 below.

The organization supported a governmental entity. Describe in Part VI how you supported a government entity (see instructions)

Activities Test. Answer (a) and (b) below.

Yes

Did substantially all of the organization’s activities during the tax year directly further the exempt purposes of the supported organization(s) to which the organization was responsive? If "Yes," then in Part VI identify those supported organizations and explain how these activities directly furthered their exempt purposes, how the organization was responsive to those supported organizations, and how the organization determined that these activities constituted substantially all of its activities.

Did the activities described in (a) constitute activities that, but for the organization’s involvement, one or more of the organization’s supported organization(s) would have been engaged in? If "Yes," explain in Part VI the reasons for the organization’s position that its supported organization(s) would have engaged in these activities but for the organization’s involvement.

Parent of Supported Organizations. Answer (a) and (b) below.

Did the organization have the power to regularly appoint or elect a majority of the officers, directors, or trustees of each of the supported organizations? Provide details in Part VI.

Did the organization exercise a substantial degree of direction over the policies, programs and activities of each of its supported organizations? If "Yes," describe in Part VI. the role played by the organization in this regard.

Schedule A (Form 990 or 990-EZ) 2015

Page 6

Part V

Type III Non-Functionally Integrated 509(a)(3) Supporting Organizations

Check here if the organization satisfied the Integral Part Test as a qualifying trust on Nov. 20, 1970. See instructions. All other Type III non-functionally integrated supporting organizations must complete Sections A through E.

	Section A - Adjusted Net Income		(A) Prior Year	(B) Current Year (optional)
1	Net short-term capital gain	1
2	Recoveries of prior-year distributions	2
3	Other gross income (see instructions)	3
4	Add lines 1 through 3	4
5	Depreciation and depletion	5
6	Portion of operating expenses paid or incurred for production or collection of gross income or for management, conservation, or maintenance of property held for production of income (see instructions)	6
7	Other expenses (see instructions)	7
8	Adjusted Net Income (subtract lines 5, 6 and 7 from line 4)	8

	Section B - Minimum Asset Amount		(A) Prior Year	(B) Current Year (optional)
1	Aggregate fair market value of all non-exempt-use assets (see instructions for short tax year or assets held for part of year):	1
a	Average monthly value of securities	1a
b	Average monthly cash balances	1b
c	Fair market value of other non-exempt-use assets	1c
d	Total (add lines 1a, 1b, and 1c)	1d
e	Discount claimed for blockage or other factors (explain in detail in Part VI):
2	Acquisition indebtedness applicable to non-exempt use assets	2
3	Subtract line 2 from line 1d	3
4	Cash deemed held for exempt use. Enter 1-1/2% of line 3 (for greater amount, see instructions).	4
5	Net value of non-exempt-use assets (subtract line 4 from line 3)	5
6	Multiply line 5 by .035	6
7	Recoveries of prior-year distributions	7
8	Minimum Asset Amount (add line 7 to line 6)	8

	Section C - Distributable Amount		Current Year
1	Adjusted net income for prior year (from Section A, line 8, Column A)	1
2	Enter 85% of line 1	2
3	Minimum asset amount for prior year (from Section B, line 8, Column A)	3
4	Enter greater of line 2 or line 3	4
5	Income tax imposed in prior year	5
6	Distributable Amount. Subtract line 5 from line 4, unless subject to emergency temporary reduction (see instructions)	6

Check here if the current year is the organization's first as a non-functionally-integrated Type III supporting organization (see instructions)

Schedule A (Form 990 or 990-EZ) 2015

Page 7

Part V

Type III Non-Functionally Integrated 509(a)(3) Supporting Organizations (continued)

Section D - Distributions		Current Year
1 Amounts paid to supported organizations to accomplish exempt purposes
2 Amounts paid to perform activity that directly furthers exempt purposes of supported organizations, in excess of income from activity
3 Administrative expenses paid to accomplish exempt purposes of supported organizations
4 Amounts paid to acquire exempt-use assets
5 Qualified set-aside amounts (prior IRS approval required)
6 Other distributions (describe in Part VI). See instructions
7Total annual distributions. Add lines 1 through 6.
8 Distributions to attentive supported organizations to which the organization is responsive (provide details in Part VI). See instructions
9 Distributable amount for 2015 from Section C, line 6
10 Line 8 amount divided by Line 9 amount

Section E - Distribution Allocations (see instructions)		(i) Excess Distributions	(ii) Underdistributions Pre-2015	(iii) Distributable Amount for 2015
1 Distributable amount for 2015 from Section C, line 6
2 Underdistributions, if any, for years prior to 2015 (reasonable cause required--see instructions)
3 Excess distributions carryover, if any, to 2015:
a
b
c
d From 2013.......
e From 2014.......
fTotal of lines 3a through e
g Applied to underdistributions of prior years
h Applied to 2015 distributable amount
i Carryover from 2010 not applied (see instructions)
j Remainder. Subtract lines 3g, 3h, and 3i from 3f.
4Distributions for 2015 from Section D, line 7:
$
a Applied to underdistributions of prior years
b Applied to 2015 distributable amount
c Remainder. Subtract lines 4a and 4b from 4.
5 Remaining underdistributions for years prior to 2015, if any. Subtract lines 3g and 4a from line 2 (if amount greater than zero, see instructions)
6 Remaining underdistributions for 2015. Subtract lines 3h and 4b from line 1 (if amount greater than zero, see instructions)
7 Excess distributions carryover to 2016. Add lines 3j and 4c.
8 Breakdown of line 7:
a
b
c Excess from 2013.......
d From 2014.......
e From 2015.......

Schedule A (Form 990 or 990-EZ) (2015)

Schedule A (Form 990 or 990-EZ) 2015

Page 8

Part VI

Supplemental Information. Provide the explanations required by Part II, line 10; Part II, line 17a or 17b; Part III, line 12; Part IV, Section A, lines 1, 2, 3b, 3c, 4b, 4c, 5a, 6, 9a, 9b, 9c, 11a, 11b, and 11c; Part IV, Section B, lines 1 and 2; Part IV, Section C, line 1; Part IV, Section D, lines 2 and 3; Part IV, Section E, lines 1c, 2a, 2b, 3a and 3b; Part V, line 1; Part V, Section B, line 1e; Part V Section D, lines 5, 6, and 8; and Part V, Section E, lines 2, 5, and 6. Also complete this part for any additional information. (See instructions).

Facts And Circumstances Test

Return Reference	Explanation

Schedule A (Form 990 or 990-EZ) 2015

Additional Data

Software ID:	15000238
Software Version:	2015v2.1

- TIN:

Schedule B
(Form 990, 990-EZ,
or 990-PF)

Department of the Treasury
Internal Revenue Service

Schedule of Contributors

Attach to Form 990, 990-EZ, or 990-PF.

Information about Schedule B (Form 990, 990-EZ, or 990-PF) and its instructions is at www.irs.gov/form990.

OMB No. 1545-0047

2015

Name of the organization

Norton Hospitals Inc

Employer identification number

61-0703799

Organization type (check one):

Filers of:

Section:

Form 990 or 990-EZ

501(c)( ) (enter number) organization

4947(a)(1) nonexempt charitable trust not treated as a private foundation

527 political organization

Form 990-PF

501(c)(3) exempt private foundation

4947(a)(1) nonexempt charitable trust treated as a private foundation

501(c)(3) taxable private foundation

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

For an organization filing Form 990, 990-EZ, or 990-PF that received, during the year, contributions totaling $5,000 or more (in money or other property) from any one contributor. Complete Parts I and II. See instructions for determining a contributor's total contributions.

Special Rules

For an organization described in section 501(c)(3) filing Form 990 or 990-EZ that met the 33¹/3% support test of the regulations
under sections 509(a)(1) and 170(b)(1)(A)(vi), that checked Schedule A (Form 990 or 990-EZ), Part II, line 13, 16a, or 16b, and that received from any one contributor, during the year, total contributions of the greater of (1) $5,000 or (2) 2% of the amount on (i) Form 990, Part VIII, line 1h, or (ii) Form 990-EZ, line 1. Complete Parts I and II.

For an organization described in section 501(c)(7), (8), or (10) filing Form 990 or 990-EZ that received from any one contributor,
during the year, total contributions of more than $1,000 exclusively for religious, charitable, scientific, literary, or educational purposes, or for the prevention of cruelty to children or animals. Complete Parts I, II, and III.

For an organization described in section 501(c)(7), (8), or (10) filing Form 990 or 990-EZ that received from any one contributor,
during the year, contributions exclusively for religious, charitable, etc., purposes, but no such contributions totaled more than $1,000. If this box is checked, enter here the total contributions that were received during the year for an exclusively religious, charitable, etc., purpose. Do not complete any of the parts unless the General Rule applies to this organization because it received nonexclusively religious, charitable, etc., contributions totaling $5,000 or more during the year ......... 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 its Form 990PF, Part I, line 2, 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) (2015)

Schedule B (Form 990, 990-EZ, or 990-PF) (2015) Page 2

Name of organization Norton Hospitals Inc

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	Person Payroll Noncash (Complete Part II for noncash contributions.)
(a) No.	(b) Name, address, and ZIP + 4	(c) Total contributions	(d) Type of contribution
		$	Person Payroll Noncash (Complete Part II for noncash contributions.)
(a) No.	(b) Name, address, and ZIP + 4	(c) Total contributions	(d) Type of contribution
		$	Person Payroll Noncash (Complete Part II for noncash contributions.)
(a) No.	(b) Name, address, and ZIP + 4	(c) Total contributions	(d) Type of contribution
		$	Person Payroll Noncash (Complete Part II for noncash contributions.)
(a) No.	(b) Name, address, and ZIP + 4	(c) Total contributions	(d) Type of contribution
		$	Person Payroll Noncash (Complete Part II for noncash contributions.)
(a) No.	(b) Name, address, and ZIP + 4	(c) Total contributions	(d) Type of contribution
		$	Person Payroll Noncash (Complete Part II for noncash contributions.)
Schedule B (Form 990, 990-EZ, or 990-PF) (2015)

Schedule B (Form 990, 990-EZ, or 990-PF) (2015)

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) (2015)

Schedule B (Form 990, 990-EZ, or 990-PF) (2015)

Page 4


Name of organization Norton Hospitals Inc			Employer identification number 61-0703799
Part III Exclusively religious, charitable, etc., contributions to organizations described in section 501(c)(7), (8), or (10) that total more than $1,000 for the year from any one contributor. 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.) $ Use duplicate copies of Part III if additional space is needed.

(a)
No.from Part I

(b) Purpose 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

(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

(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

(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) (2015)

Additional Data

Software ID:	15000238
Software Version:	2015v2.1

- TIN:

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

Information about Schedule C (Form 990 or 990-EZ) and its instructions is at www.irs.gov/form990.

OMB No. 1545-0047

2015

Open to Public
Inspection

If the organization answered "Yes" on 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" on 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" on Form 990, Part IV, Line 5 (Proxy Tax) (see separate instructions) or Form 990-EZ, Part V, line 35c (Proxy Tax) (see separate instructions), 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.

Provide a description of the organization’s direct and indirect political campaign activities in Part IV.

Political expenditures ...................................................................................................................... SchCMd Bullet

Volunteer hours .............................................................................................................................

Part I-B

Complete if the organization is exempt under section 501(c)(3).

Enter the amount of any excise tax incurred by the organization under section 4955 ................................ SchCMd Bullet

Enter the amount of any excise tax incurred by organization managers under section 4955 ....................... SchCMd Bullet

If the organization incurred a section 4955 tax, did it file Form 4720 for this year? .........................................

Yes No

Was a correction made? ......................................................................................................................

Yes No

If "Yes," describe in Part IV.

Part I-C

Complete if the organization is exempt under section 501(c), except section 501(c)(3).

Enter the amount directly expended by the filing organization for section 527 exempt function activities ..... SchCMd Bullet

Enter the amount of the filing organization's funds contributed to other organizations for section 527 exempt function activities ............................................................................................................................ SchCMd Bullet

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

Did the filing organization file Form 1120-POL for this year? ...................................................................

Yes No

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-.
1
2
3
4
5
6

For Paperwork Reduction Act Notice, see the instructions for Form 990 or 990-EZ.

Cat. No. 50084S

Schedule C (Form 990 or 990-EZ) 2015

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 Bullet

if the filing organization belongs to an affiliated group (and list in Part IV each affiliated group member's name, address, EIN, expenses, and share of excess lobbying expenditures).
B Check SchCMd Bullet

if the filing organization checked box A and "limited control" provisions apply.

Limits on Lobbying Expenditures (The term "expenditures" means amounts paid or incurred.)		(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? ..............................................................................................................	Yes No

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 separate instructions for lines 2a through 2f.)
Lobbying Expenditures During 4-Year Averaging Period
	Calendar year (or fiscal year beginning in)	(a) 2012	(b) 2013	(c) 2014	(d) 2015	(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) 2015

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 on lines 1a through 1i below, provide in Part IV a detailed description of the lobbying activity.

(a)

Yes

(b)

Amount

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:

Volunteers? ...........................................................................................................

Paid staff or management (include compensation in expenses reported on lines 1c through 1i)? ........

Media advertisements? ...................................................................................................

Mailings to members, legislators, or the public? .............................................................................

Publications, or published or broadcast statements? ...........................................................

Grants to other organizations for lobbying purposes? ..........................................................

Direct contact with legislators, their staffs, government officials, or a legislative body? .......................

Rallies, demonstrations, seminars, conventions, speeches, lectures, or any similar means? ..................

Other activities? ...................................................................................................................

Yes

55,819

Total. Add lines 1c through 1i ....................................................................................................

55,819

Did the activities in line 1 cause the organization to be not described in section 501(c)(3)? .....

If "Yes," enter the amount of any tax incurred under section 4912 ...........................................

If "Yes," enter the amount of any tax incurred by organization managers under section 4912 ...................

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

Were substantially all (90% or more) dues received nondeductible by members? ...............................................

Did the organization make only in-house lobbying expenditures of $2,000 or less? ............................................

Did the organization agree to carry over lobbying and political expenditures from the prior year? .................................

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."

Dues, assessments and similar amounts from members ......................................................................

Section 162(e) nondeductible lobbying and political expenditures (do not include amounts of political expenses for which the section 527(f) tax was paid).

Current year .............................................................................................................................

Carryover from last year ............................................................................................................

Total ...........................................................................................................................................

Aggregate amount reported in section 6033(e)(1)(A) notices of nondeductible section 162(e) dues .

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? ......................................................................................................................

Taxable amount of lobbying and political expenditures (see instructions) .........................................

Part IV

Supplemental Information

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, lines 1 and 2 (see instructions), and Part ll-B, line 1. Also, complete this part for any additional information.

Return Reference	Explanation
Schedule C, Part II-B, Line 1 DETAILED DESCRIPTION OF THE LOBBYING ACTIVITY	NORTON HOSPITALS, INC. PAYS DUES TO THE KENTUCKY HOSPITAL ASSOCIATION. A PORTION OF THOSE DUE IN THE AMOUNT OF $55,819 IS SPENT ON LOBBYING.
Schedule C, Part II-B, Line 1 DETAILED DESCRIPTION OF THE LOBBYING ACTIVITY	NORTON HOSPITALS, INC. PAYS DUES TO THE KENTUCKY HOSPITAL ASSOCIATION. A PORTION OF THOSE DUE IN THE AMOUNT OF $55,819 IS SPENT ON LOBBYING.

Schedule C (Form 990 or 990EZ) 2015

Additional Data

Software ID:	15000238
Software Version:	2015v2.1

- TIN:

SCHEDULE D
(Form 990)

Department of the Treasury
Internal Revenue Service

Supplemental Financial Statements

Complete if the organization answered "Yes," on 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.
Information about Schedule D (Form 990) and its instructions is at www.irs.gov/form990.

OMB No. 1545-0047

2015

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" on Form 990, Part IV, line 6.

			(a) Donor advised funds	(b) Funds and other accounts

1	Total number at end of year ....
2	Aggregate value of contributions to (during year)
3	Aggregate value of grants from (during year)
4	Aggregate value at end of year ....

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? ...........

Yes No

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? ............................

Yes No

Part II

Conservation Easements. Complete if the organization answered "Yes" on Form 990, Part IV, line 7.

Purpose(s) of conservation easements held by the organization (check all that apply).

Preservation of land for public use (e.g., recreation or education) Preservation of an historically important land area

Protection of natural habitat Preservation of a certified historic structure

Preservation of open space

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.


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

Number of conservation easements modified, transferred, released, extinguished, or terminated by the organization during the
tax year SchDMd Bullet

Number of states where property subject to conservation easement is located SchDMd Bullet

Does the organization have a written policy regarding the periodic monitoring, inspection, handling of violations, and enforcement of the conservation easements it holds? ............

Yes No

Staff and volunteer hours devoted to monitoring, inspecting, handling of violations, and enforcing conservation easements during the year
SchDMd Bullet

Amount of expenses incurred in monitoring, inspecting, handling of violations, and enforcing conservation easements during the year
SchDMd Bullet

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)? .............................

Yes No

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" on Form 990, Part IV, line 8.

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.

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)

Revenue included on Form 990, Part VIII, line 1 ......................... SchDMd Bullet

(ii)

Assets included in Form 990, Part X ............................... SchDMd Bullet

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:

Revenue included on Form 990, Part VIII, line 1 .......................... SchDMd Bullet

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) 2015

Page 2

Part III

Organizations Maintaining Collections of Art, Historical Treasures, or Other Similar Assets (continued)

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):

Public exhibition

Loan or exchange programs

Scholarly research

Other

Preservation for future generations

Provide a description of the organization’s collections and explain how they further the organization’s exempt purpose in
Part XIII.

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?...

Yes No

Part IV

Escrow and Custodial Arrangements. Complete if the organization answered "Yes" on Form 990, Part IV, line 9, or reported an amount on Form 990, Part X, line 21.

Is the organization an agent, trustee, custodian or other intermediary for contributions or other assets not
included on Form 990, Part X? ....................................

Yes No


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

Did the organization include an amount on Form 990, Part X, line 21, for escrow or custodial account liability?

Yes No

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" on Form 990, Part IV, line 10.

		(a)Current year	(b)Prior year	(c)Two years back	(d)Three years back	(e)Four years back

1a	Beginning of year balance ....	20,430,388	20,805,488	17,481,086	16,388,339	17,701,307
b	Contributions ...	-86,737	-90,195	1,923,249	-79,862	-91,902
c	Net investment earnings, gains, and losses	-772,654	489,431	1,984,289	1,540,851	-546,855
d	Grants or scholarships ...
e	Other expenditures for facilities and programs ...	848,402	774,336	583,136	368,242	674,211
f	Administrative expenses ....
g	End of year balance ......	18,722,595	20,430,388	20,805,488	17,481,086	16,388,339

Provide the estimated percentage of the current year end balance (line 1g, column (a)) held as:

Board designated or quasi-endowment SchDMd Bullet

Permanent endowment SchDMd Bullet

3.55 %

Temporarily restricted endowment SchDMd Bullet

96.45 %

The percentages on lines 2a, 2b, and 2c should equal 100%.

Are there endowment funds not in the possession of the organization that are held and administered for the
organization by:

Yes

(i) unrelated organizations .................

3a(i)

(ii) related organizations .................

3a(ii)

If "Yes" on 3a(ii), are the related organizations listed as required on Schedule R? .........

Describe in Part XIII the intended uses of the organization's endowment funds.

Part VI

Land, Buildings, and Equipment.
Complete if the organization answered 'Yes' on Form 990, Part IV, line 11a. 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 ...	25,560,360		25,560,360
b	Buildings	732,743,116	296,323,481	436,419,635
c	Leasehold improvements
d	Equipment ...	573,745,571	473,896,040	99,849,531
e	Other ...	40,831,265	6,494,281	34,336,984
Total. Add lines 1a through 1e. (Column (d) must equal Form 990, Part X, column (B), line 10(c).)..				596,166,510

Schedule D (Form 990) 2015

Page 3

Part VII

InvestmentsOther Securities. Complete if the organization answered 'Yes' on Form 990, Part IV, line 11b. See Form 990, Part X, line 12.

(a) Description of security or category (including name of security)	(b)Book value	(c)Method of valuation: Cost or end-of-year market value
(1)Financial derivatives
(2)Closely-held equity interests
(3)Other
(A)
(B)
(C)
(D)
(E)
(F)
(G)
(H)
Total. (Column (b) must equal Form 990, Part X, col. (B) line 12.)

Part VIII

InvestmentsProgram Related. Complete if the organization answered 'Yes' on Form 990, Part IV, line 11c. See Form 990, Part X, line 13.

(a) Description of investment	(b) Book value	(c) Method of valuation: Cost or end-of-year market value

(1)
(2)
(3)
(4)
(5)
(6)
(7)
(8)
(9)
Total. (Column (b) must equal Form 990, Part X, col.(B) line 13.)

Part IX

Other Assets. Complete if the organization answered 'Yes' on Form 990, Part IV, line 11d. See Form 990, Part X, line 15.

(a) Description				(b) Book value
(1) RECEIVABLE FROM AFFILIATE				819,163,783
(2) PHYSICIAN GUARANTEE ASSET				656,680
(3) INVESTMENT IN PREMIER PURCHASING PARTNERS LP				27,519,373
(4) MISCELLANEOUS RECEIVABLES				358,584
(4)
(5)
(6)
(7)
(8)
(9)
Total. (Column (b) must equal Form 990, Part X, col.(B) line 15.)...........				847,698,420

Part X

Other Liabilities. Complete if the organization answered 'Yes' on Form 990, Part IV, line 11e or 11f. See Form 990, Part X, line 25.

1.(a) Description of liability	(b) Book value
(1) Federal income taxes
DUE TO THIRD PARTY PAYORS	25,649,174
PHYSICIAN GUARANTEE LIABILITY	656,680
ASSET RETIREMENT OBLIGATION	7,021,688
(4)
(5)
(6)
(7)
(8)
(9)
Total. (Column (b) must equal Form 990, Part X, col.(B) line 25.)	33,327,542
2. Liability for uncertain tax positions. 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) 2015

Page 4

Part XI Reconciliation of Revenue per Audited Financial Statements With Revenue per Return Complete if the organization answered 'Yes' on Form 990, Part IV, line 12a.
1	Total revenue, gains, and other support per audited financial statements .......			1	1,733,366,816
2	Amounts included on line 1 but not on Form 990, Part VIII, line 12:
a	Net unrealized gains (losses) 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	9,149,313
e	Add lines 2a through 2d .....................			2e	9,149,313
3	Subtract line 2e from line 1..................			3	1,724,217,503
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	5,860,439
c	Add lines 4a and 4b....................			4c	5,860,439
5	Total revenue. Add lines 3 and 4c. (This must equal Form 990, Part I, line 12.) ......			5	1,730,077,942

Part XII Reconciliation of Expenses per Audited Financial Statements With Expenses per Return. Complete if the organization answered 'Yes' on Form 990, Part IV, line 12a.
1	Total expenses and losses per audited financial statements ...........			1	1,477,866,007
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	9,149,313
e	Add lines 2a through 2d....................			2e	9,149,313
3	Subtract line 2e from line 1...................			3	1,468,716,694
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	1,468,716,694

Part XIII

Supplemental Information

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.

Return Reference	Explanation
Schedule D, Part V, Line 4 Intended uses of endowment funds	THE CHILDREN'S HOSPITAL FOUNDATION AND NORTON HEALTHCARE FOUNDATION UTILIZE INCOME GENERATED FROM ENDOWMENT FUNDS TO SUPPORT VARIOUS PROGRAMS AND SERVICES AND CAPITAL PROJECTS FOR THE BENEFIT OF NORTON HOSPITALS, INC.
Schedule D, Part XI, Line 2(d) Other revenues in audited financial statements not in form 990	RENTAL INCOME-INTERNAL - 8008721 REIMBURSEMENT OF SALARY AND UTILITY EXPENSE - 1260168 GAIN OF SALE OF ASSETS - -80612 FEES AND SPECIAL SERVICES - -38964
Schedule D, Part XI, Line 4(b) Other revenues in form 990 not in audited financial statements	CONTRIBUTIONS AND GRANTS - 5860439
Schedule D, Part XII, Line 2(d) Other expenses in audited financial statements not in form 990	RENTAL INCOME-INTERNAL - 8008721 REIMBURSEMENT OF SALARY AND UTILITY EXPENSE - 1260168 GAIN OF SALE OF ASSETS - -80612 FEES AND SPECIAL SERVICES - -38964

Schedule D (Form 990) 2015

Additional Data

Software ID:	15000238
Software Version:	2015v2.1

- TIN:

SCHEDULE H
(Form 990)

Department of the Treasury
Internal Revenue Service

Hospitals

Complete if the organization answered "Yes" on Form 990, Part IV, question 20.
MediumBullet

Attach to Form 990.
MediumBullet

Information about Schedule H (Form 990) and its instructions is at www.irs.gov/form990.

OMB No. 1545-0047

2015

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

Did the organization have a financial assistance policy during the tax year? If "No," skip to question 6a . . . .

Yes

If "Yes," was it a written policy? ......................

Yes

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.

Applied uniformly to all hospital facilities Applied uniformly to most hospital facilities Generally tailored to individual hospital facilities

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.

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:

Yes

100% 150% 200% Other 30000 %

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: . . . . . . . .

200% 250% 300% 350% 400% Other %

If the organization used factors other than FPG in determining eligibility, describe in Part VI the criteria used 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.

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"? . . . . . . . . . . . . .

Yes

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

Yes

If "Yes," did the organization's financial assistance expenses exceed the budgeted amount? . . . . . .

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? . . . . . . . . . . . . .

Did the organization prepare a community benefit report during the tax year? . . . . . . . . .

Yes

If "Yes," did the organization make it available to the public? . . . . . . . . . . . . .

Yes

Complete the following table using the worksheets provided in the Schedule H instructions. Do not submit these worksheets with the Schedule H.

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) . . .			8,066,713	0	8,066,713	0.57 %
b	Medicaid (from Worksheet 3, column a) . . . . .			403,539,772	328,780,883	74,758,889	5.29 %
c	Costs of other means-tested government programs (from Worksheet 3, column b) . .			275,056	4,610,060	0	0 %
d	Total Financial Assistance and Means-Tested Government Programs . . . . .	0	0	411,881,541	333,390,943	82,825,602	5.86 %
Other Benefits
e	Community health improvement services and community benefit operations (from Worksheet 4).			11,245,566	100,913	11,144,653	0.79 %
f	Health professions education (from Worksheet 5) . . .			42,904,714	3,950,851	38,953,863	2.75 %
g	Subsidized health services (from Worksheet 6) . . . .			0	0	0	0 %
h	Research (from Worksheet 7) .			2,420,288	0	2,420,288	0.17 %
i	Cash and in-kind contributions for community benefit (from Worksheet 8) . . . .			1,963,919	0	1,963,919	0.14 %
j	Total. Other Benefits . .	0	0	58,534,487	4,051,764	54,482,723	3.85 %
k	Total. Add lines 7d and 7j .	0	0	470,416,028	337,442,707	137,308,325	9.71 %

For Paperwork Reduction Act Notice, see the Instructions for Form 990. Cat. No. 50192T Schedule H (Form 990) 2015

Schedule H (Form 990) 2015

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	(e) Net community building expense	(f) Percent of total expense
1	Physical improvements and housing			0	0	0 %
2	Economic development			0	0	0 %
3	Community support			1,229,661	1,229,661	0.09 %
4	Environmental improvements			0	0	0 %
5	Leadership development and training for community members			0	0	0 %
6	Coalition building			490	490	0 %
7	Community health improvement advocacy			320	320	0 %
8	Workforce development			0	0	0 %
9	Other			0	0	0 %
10	Total	0	0	1,230,471	1,230,471	0.09 %

Part III

Bad Debt, Medicare, & Collection Practices

Section A. Bad Debt Expense

Yes

Did the organization report bad debt expense in accordance with Heathcare Financial Management Association Statement No. 15? ..........................

Yes

Enter the amount of the organization's bad debt expense. Explain in Part VI the methodology used by the organization to estimate this amount. ......

54,315,739

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. ......

2,567,290

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

Enter total revenue received from Medicare (including DSH and IME).....

343,555,939

Enter Medicare allowable costs of care relating to payments on line 5.....

356,016,637

Subtract line 6 from line 5. This is the surplus (or shortfall)........

-12,460,698

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:

Cost accounting system Cost to charge ratio Other

Section C. Collection Practices

Did the organization have a written debt collection policy during the tax year? ..........

Yes

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 .........................

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) 2015

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, primary website address, and state license number (and if a group return, the name and EIN of the subordinate hospital organization that operates the hospital facility)							Facility reporting group
1	Norton Hospital 200 E Chestnut St Louisville,KY40202 http://www.nortonhealthcare.com/nortonhospital 100234	X	X		X	X	A
2	Kosair Children's Hospital 231 E Chestnut St Louisville,KY40202 http://www.kosairchildrenshospital.com/ 100234	X	X	X	X	X	A
4	Norton Women's and Kosair Children's Hospital 4001 Dutchmans Lane Louisville,KY40207 http://www.nortonhealthcare.com/nortonsuburbanhospital 100255	X	X		X	X	A
3	Norton Audubon Hospital One Audubon Plaza Drive Louisville,KY40217 http://www.nortonhealthcare.com/NortonAudubonHospital 100252	X	X		X	X	A
5	Norton Brownsboro Hospital 4950 Norton Healthcare Blvd Louisville,KY40241 http://www.nortonhealthcare.com/nortonbrownsborohospital 100475	X	X			X	A

Schedule H (Form 990) 2015

Page 4

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 letter of facility reporting group

Line number of hospital facility, or line numbers of hospital facilities in a facility
reporting group (from Part V, Section A):

Yes

Community Health Needs Assessment

Was the hospital facility first licensed, registered, or similarly recognized by a state as a hospital facility in the current tax year or the immediately preceding tax year?........................

Was the hospital facility acquired or placed into service as a tax-exempt hospital in the current tax year or the immediately preceding tax year? If “Yes,” provide details of the acquisition in Section C...............

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 12......................

Yes

If "Yes," indicate what the CHNA report describes (check all that apply):

A definition of the community served by the hospital facility

Demographics of the community

Existing health care facilities and resources within the community that are available to respond to the health needs of the community

How data was obtained

The significant health needs of the community

Primary and chronic disease needs and other health issues of uninsured persons, low-income persons, and minority groups

The process for identifying and prioritizing community health needs and services to meet the community health needs

The process for consulting with persons representing the community’s interests

Information gaps that limit the hospital facility’s ability to assess the community’s health needs

Other (describe in Section C)

Indicate the tax year the hospital facility last conducted a CHNA: 20 13

In conducting its most recent CHNA, did the hospital facility take into account input from persons who represent the broad interests of the community served by the hospital facility, including those with special knowledge of or expertise in public health? If "Yes," describe in Section C how the hospital facility took into account input from persons who represent the community, and identify the persons the hospital facility consulted .................

Yes

6 a

Was the hospital facility’s CHNA conducted with one or more other hospital facilities? If "Yes," list the other hospital facilities in Section C..................................

Yes

Was the hospital facility’s CHNA conducted with one or more organizations other than hospital facilities?” If “Yes,” list the other organizations in Section C. ............................

Yes

Did the hospital facility make its CHNA report widely available to the public?..............

Yes

If "Yes," indicate how the CHNA report was made widely available (check all that apply):

Hospital facility’s website (list url): nortonhealthcare.com (about us; community health needs)

Other website (list url):

Made a paper copy available for public inspection without charge at the hospital facility

Other (describe in Section C)

Did the hospital facility adopt an implementation strategy to meet the significant community health needs
identified through its most recently conducted CHNA? If "No," skip to line 11. ..............

Yes

Indicate the tax year the hospital facility last adopted an implementation strategy: 20 13

Is the hospital facility's most recently adopted implementation strategy posted on a website?.........

Yes

If "Yes" (list url): nortonhealthcare.com (About us, community health needs)

If "No," is the hospital facility’s most recently adopted implementation strategy attached to this return? ......

10b

Describe in Section C how the hospital facility is addressing the significant needs identified in its most recently conducted CHNA and any such needs that are not being addressed together with the reasons why such needs are not being addressed.

12a

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)?...............................

12a

If "Yes" on line 12a, did the organization file Form 4720 to report the section 4959 excise tax?........

12b

If "Yes" on line 12b, 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) 2015

Page 5

Part VFacility Information (continued)

Financial Assistance Policy (FAP)

	A
Name of hospital facility or letter of facility reporting group

Yes

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 included free or discounted care?

Yes

If “Yes,” indicate the eligibility criteria explained in the FAP:

Federal poverty guidelines (FPG), with FPG family income limit for eligibility for free care of 300.0% and FPG family income limit for eligibility for discounted care of %

Income level other than FPG (describe in Section C)

Asset level

Medical indigency

Insurance status

Underinsurance discount

Residency

Other (describe in Section C)

Explained the basis for calculating amounts charged to patients?.................

Yes

Explained the method for applying for financial assistance?...................

Yes

If “Yes,” indicate how the hospital facility’s FAP or FAP application form (including accompanying instructions) explained the method for applying for financial assistance (check all that apply):

Described the information the hospital facility may require an individual to provide as part of his or her application

Described the supporting documentation the hospital facility may require an individual to submit as part of his or
her application

Provided the contact information of hospital facility staff who can provide an individual with information about the
FAP and FAP application process

Provided the contact information of nonprofit organizations or government agencies that may be sources of
assistance with FAP applications

Other (describe in Section C)

Included measures to publicize the policy within the community served by the hospital facility?........

Yes

If "Yes," indicate how the hospital facility publicized the policy (check all that apply):

The FAP was widely available on a website (list url):

The FAP application form was widely available on a website (list url):

www.nortonhealthcare.com/FAP

A plain language summary of the FAP was widely available on a website (list url):
www.nortonhealthcare.com/FAP

The FAP was available upon request and without charge (in public locations in the hospital facility and by mail)

The FAP application form was available upon request and without charge (in public locations in the hospital facility
and by mail)

A plain language summary of the FAP was available upon request and without charge (in public locations in the
hospital facility and by mail)

Notice of availability of the FAP was conspicuously displayed throughout the hospital facility

Notified members of the community who are most likely to require financial assistance about availability of the FAP

Other (describe in Section C)

Billing and Collections

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 all of the actions the hospital facility or other authorized party may take upon non-payment?..................................

Yes

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 individual’s eligibility under the facility’s FAP:

Reporting to credit agency(ies)

Selling an individual’s debt to another party

Actions that require a legal or judicial process

Other similar actions (describe in Section C)

None of these actions or other similar actions were permitted

Schedule H (Form 990) 2015

Page 6

Part VFacility Information (continued)

	A
Name of hospital facility or letter of facility reporting group

Yes

Did the hospital facility or other authorized party perform any of the following actions during the tax year before making reasonable efforts to determine the individual’s eligibility under the facility’s FAP?............

If "Yes," check all actions in which the hospital facility or a third party engaged:

Reporting to credit agency(ies)

Selling an individual’s debt to another party

Actions that require a legal or judicial process

Other similar actions (describe in Section C)

Indicate which efforts the hospital facility or other authorized party made before initiating any of the actions listed (whether or not checked) in line 19. (check all that apply):

Notified individuals of the financial assistance policy on admission

Notified individuals of the financial assistance policy prior to discharge

Notified individuals of the financial assistance policy in communications with the individuals regarding the individuals’ bills

Documented its determination of whether individuals were eligible for financial assistance under the hospital facility’s financial assistance policy

Other (describe in Section C)

None of these efforts were made

Policy Relating to Emergency Medical Care

Did the hospital facility have in place during the tax year a written policy relating to emergency medical care that required 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?..................

Yes

If "No," indicate why:

The hospital facility did not provide care for any emergency medical conditions

The hospital facility’s policy was not in writing

The hospital facility limited who was eligible to receive care for emergency medical conditions (describe in Section C)

Other (describe in Section C)

Charges to Individuals Eligible for Assistance Under the FAP (FAP-Eligible Individuals)

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.

The hospital facility used its lowest negotiated commercial insurance rate when calculating the maximum amounts that
can be charged

The hospital facility used the average of its three lowest negotiated commercial insurance rates when calculating the maximum amounts that can be charged

The hospital facility used the Medicare rates when calculating the maximum amounts that can be charged

Other (describe in Section C)

During the tax year, did the hospital facility charge any FAP-eligible individual 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? ...............................

If "Yes," explain in Section C.

During the tax year, did the hospital facility charge any FAP-eligible individual an amount equal to the gross charge for any service provided to that individual? ...........................

If "Yes," explain in Section C.

Schedule H (Form 990) 2015

Page 7

Part V

Facility Information (continued)

Section C. Supplemental Information for Part V, Section B. Provide descriptions required for Part V, Section B, lines 2, 3j, 5, 6a, 6b, 7d, 11, 13b, 13h, 15e, 16i, 18d, 19d, 20e, 21c, 21d, 22d, 23, and 24. If applicable, provide separate descriptions for each hospital facility in a facility reporting group, designated by facility reporting group letter and hospital facility line number from Part V, Section A (“A, 1,” “A, 4,” “B, 2,” “B, 3,” etc.) and name of hospital facility.
Form and Line Reference	Explanation
Schedule H, Part V, Section B, Line 5 Facility A, 1	Facility A, 1 - ALL HOSPITALS. COMMUNITY INPUT WAS PROVIDED THROUGH FIVE COMMUNITY FORUMS AND A COMMUNITY HEALTH SURVEY WAS WIDELY DISTRIBUTED BY THE LOUISVILLE METRO DEPARTMENT OF PUBLIC HEALTH AND WELLNESS. THE COMMUNITY HEALTH SURVEY WAS COMPLETED BY 45 INDIVIDUALS THAT ATTENDED THE PUBLIC FORUMS ALONG WITH 1,826 ONLINE SURVEY RESPONDENTS; IN ADDITION TO ANOTHER FORUM WHERE 40 BUSINESS LEADERS AND PHYSICIANS ATTENDED. FINDINGS ARE DESCRIBED IN THE COMMUNITY HEALTH SURVEY SECTION OF THIS SCHEDULE.
Schedule H, Part V, Section B, Line 6a Facility A, 1	Facility A, 1 - ALL HOSPITALS. NORTON HOSPITALS, INC. OWNS AND OPERATES FIVE HOSPITALS LOCATED IN LOUISVILLE, JEFFERSON COUNTY, KENTUCKY. THE HOSPITALS ARE: - NORTON HOSPITAL - KOSAIR CHILDREN'S HOSPITAL - NORTON WOMEN'S AND KOSAIR CHILDREN'S HOSPITAL - NORTON AUDUBON HOSPITAL - NORTON BROWNSBORO HOSPITAL
Schedule H, Part V, Section B, Line 6b Facility A, 1	Facility A, 1 - OTHER ORGANIZATIONS. THE LOUISVILLE AREA HOSPITALS COLLABORATED WITH LOUISVILLE METRO GOVERNMENT TO CONDUCT THE COMMUNITY WIDE HEALTH SURVEY AND FOCUS GROUPS.
Schedule H, Part V, Section B, Line 11 Facility A, 1	Facility A, 1 - ALL HOSPITALS. CHANGING MARKET DEMOGRAPHICS - NORTON HOSPITALS, INC. (NHI) HAS A SMALL BUT GROWING IMMIGRANT POPULATION IN THE COMMUNITY. IN RESPONSE TO THIS, NHI HAS INITIATED EMPLOYEE RESOURCE GROUPS WITHIN THE ORGANIZATION TO ENHANCE ASSIMILATION WITH NHI AND THE COMMUNITY. NHI HAS ENHANCED RECRUITING EFFORTS WITH A FOCUS ON INCLUSIVENESS AND ENSURING THAT THE WORKFORCE IS CONSISTENT WITH THE PATIENTS WE SERVE IN THE COMMUNITY AND REGION. NHI HAS INCORPORATED DIVERSITY AND INCLUSION TRAINING INTO THE ORIENTATION PROCESS FOR NEW HIRES, AS WELL AS UTILIZING PATIENT FAMILY ADVISORY COUNCILS TO IDENTIFY PROCESS AND SERVICE IMPROVEMENTS. POVERTY LEVELS - NHI'S FACILITIES ACCEPT ALL PATIENTS, IRRESPECTIVE OF THEIR ABILITY TO PAY. NHI HAS A CAPITATION CONTRACT WITH PASSPORT FOR OUR COMMUNITY TO CARE FOR QUALIFIED MEDICAID PATIENTS. NHI ALSO HAS A RIGOROUS CHARITY POLICY WITH REPRESENTATIVES WHO ASSIST THOSE PATIENTS AND FAMILIES AS NEEDED TO ENSURE ALL POTENTIAL RESOURCES ARE AVAILABLE TO THEM WHEN CARE IS PROVIDED. LANGUAGE - NHI HAS MANY EMPLOYEES THAT SPEAK SPANISH AND OTHER FOREIGN LANGUAGES. WE CONTRACT WITH A SERVICE TO PROVIDE TRANSLATIONAL SERVICES TO FACILITATE CARE DELIVERY. EDUCATION - NHI PROVIDES EXTENSIVE EDUCATIONAL OFFERINGS AND LEADERSHIP DEVELOPMENT PROGRAMS, AS WELL AS EDUCATIONAL ASSISTANCE, FOR ALL EMPLOYEES AT NO ADDITIONAL COST TO THE EMPLOYEE. THESE PROGRAMS ARE PROVIDED THROUGH THE NORTON UNIVERSITY AND NORTON INSTITUTE FOR NURSING. PROGRAMS ARE EVALUATED ANNUALLY TO DETERMINE GAPS AND FUTURE PROGRAM OPPORTUNITIES IN COLLABORATION WITH NORTON UNIVERSITY LEADERSHIP. TEEN BIRTHS - THE BIRTH RATE FOR TEENAGERS IN THE LOUISVILLE METRO AREA IS ABOVE THE NATIONAL AVERAGE OF 42.5. AS A LEADING PROVIDER FOR BIRTHING SERVICES IN THE COMMUNITY AND THE PREMIER PROVIDER OF PEDIATRIC SERVICES, CONTINUING TO PROMOTE HEALTH AWARENESS AS IT RELATES TO PREGNANCY PREVENTION ALTERNATIVES IS AN AREA OF RESPONSIBILITY FOR OUR ORGANIZATION. NHI HAS EXPANDED MATERNAL FETAL MEDICINE LOCATIONS, NOW UTILIZING TELEMEDICINE TOOLS TO BROADEN ACCESS. NHI ALSO CONTINUES TO EXPAND CLINICAL AFFILIATIONS WITH RURAL PROVIDERS. NHI CONTINUES TO SUPPORT EDUCATION AND AWARENESS OF PREGNANCY PREVENTION ALTERNATIVES FOR THE COMMUNITY, INCLUDING EDUCATIONAL OFFERINGS THROUGH THE MARSHALL WOMEN'S CENTER LOCATED ON OUR ST. MATTHEWS CAMPUS. PRENATAL CARE, LOW BIRTH WEIGHT AND INFANT MORTALITY - IN KENTUCKY, LOW BIRTH WEIGHT BABIES EXCEED THE NATIONAL AVERAGE BY ONE PERCENTAGE POINT AND INFANT MORTALITY RATES ARE SLIGHTLY HIGHER THAN THE NATIONAL AVERAGE. NHI IS COMMITTED TO ESTABLISHING A MATERNAL FETAL MEDICINE CENTER OF EXCELLENCE FOR THE STATE AND REGION TO ENSURE THE FEMALE POPULATION HAS ACCESS TO CLINICAL RESOURCES FOR THE BEST POSSIBLE CARE AND OUTCOME FOR THEIR BABY. PART OF THIS INITIATIVE INVOLVES EDUCATION ON PRENATAL CARE AND THE VALUE OF THESE EFFORTS TO REDUCE LOW BIRTH WEIGHT BABIES AND OTHER COMPLICATIONS. PRENATAL CLASS OFFERINGS ARE AVAILABLE AT MULTIPLE LOCATIONS IN THE COMMUNITY. ADDITIONALLY, NHI PROVIDES CLINICAL RESOURCES TO THE SHAWNEE CHRISTIAN COMMUNITY AND PARK DUVALLE COMMUNITIES TO FURTHER PROMOTE HEALTH AND WELLNESS. DIABETES - THE DIABETES PATIENT POPULATION CONTINUES TO GROW IN KENTUCKY AND MORTALITY RATES FOR THE STATE AND LOUISVILLE METRO CONTINUE TO EXCEED NATIONAL AVERAGES. NHI HAS A FOCUSED PROGRAM AT OUR CHILDREN'S HOSPITAL TO PROMOTE EDUCATION AND AWARENESS WHILE UTILIZING PROTOCOLS FOR EARLY DETECTION OF PATIENTS WITH DIABETES. ADDITIONALLY NHI'S CLINICAL EFFECTIVENESS TEAM UTILIZES BEST PRACTICE CLINICAL PROTOCOLS TO IDENTIFY DIABETES PATIENTS AND RECOMMEND THEM TO A SPECIALIST FOR ONGOING CARE MANAGEMENT TO IMPROVE PATIENT HEALTH. OBESITY, NUTRITION & EXERCISE - OBESITY HAS BECOME A SIGNIFICANT HEALTH ISSUE FOR THE LOUISVILLE AREA AS WELL AS THE STATE. OBESE PATIENTS HAVE INCREASED BY MORE THAN 350,000 OVER THE LAST 10 YEARS. FURTHER, ALMOST TWO THIRDS OF THE POPULATION IN THE AREA REPORT THEY ARE OVERWEIGHT, AND HALF OF THOSE REPORT THAT THEY ARE OBESE. NHI FEELS A RESPONSIBILITY TO THE CHILDREN OF OUR COMMUNITY TO PROMOTE HEALTHY FOOD CHOICES AND RECREATIONAL ACTIVITIES AS THE STATE'S EXPERT IN PEDIATRIC SERVICES. AS PART OF OUR ONGOING PEDIATRIC SERVICES, WE CURRENTLY HAVE A FEEDING CLINIC AND PROVIDE NUTRITIONAL GUIDANCE FOR OUR PATIENTS AND FAMILIES. NHI HAS A BARIATRIC CENTER THAT PROVIDES EXERCISE AND NUTRITION PROGRAMS. BARIATRIC SURGICAL CANDIDATES PARTICIPATE IN AN EDUCATION PROGRAM PRIOR TO THE PROCEDURE TO ENSURE SUCCESS IN MAINTAINING A HEALTHY WEIGHT FOLLOWING THE PROCEDURE. NHI HAS ESTABLISHED A FOCUSED PREVENTION AND WELLNESS SERVICE LINE TO ENCOURAGE HEALTHY BEHAVIOR AND TAKE ADVANTAGE OF SCREENINGS AND OTHER PREVENTION ACTIVITIES TO FACILITATE EARLY DETECTION OF CHRONIC CONDITIONS AND RELATED RISK FACTORS. NHI WILL CONTINUE TO EXPAND OUR GEOGRAPHIC REACH FOR THESE PROGRAMS AS FEASIBLE. CANCER INCIDENCE & MORTALITY - THE INCIDENCE AND MORTALITY RATES FOR ALL CANCERS ARE WELL ABOVE THE NATIONAL AVERAGE. NHI HAS A STRONG DEPTH AND BREADTH OF SUBSPECIALISTS IN THE AREA OF ONCOLOGIC CARE WITH NORTON CANCER INSTITUTE (NCI). WE OPERATE KENTUCKY'S ONLY ACCREDITED NETWORK CANCER CENTER AND UTILIZE EVIDENCE BASED CLINICAL PROTOCOLS AND PATHWAYS TO ENHANCE THE QUALITY OF LIFE AND SURVIVORSHIP OF OUR CANCER PATIENTS. AS DEMONSTRATED BY OUR PUBLICLY AVAILABLE QUALITY REPORT, NHI'S SURVIVAL RATES ARE NEAR OR EXCEEDING NATIONAL RATES IN ALMOST EVERY CANCER CONDITION AND STAGE LEVEL. NHI HAS EXPANDED CLINIC SITES TO ADDITIONAL SERVICE AREAS OUTSIDE OUR PRIMARY SERVICE AREA TO BRING NEEDED SCREENING AND INTERVENTION SERVICES TO THEIR COMMUNITIES. LUNG CANCER - THE INCIDENCE RATES FOR LUNG CANCER ARE AMONG THE HIGHEST IN THE NATION FOR KENTUCKY. THE SURVIVAL RATE UNFORTUNATELY LAGS NATIONAL AVERAGES SIGNIFICANTLY. NHI HAS IMPLEMENTED A LUNG CT SCREENING PROGRAM TO FACILITATE EARLY DETECTION. NHI ALSO OFFERS TOBACCO AND SMOKING CESSATION CLASSES. IN ADDITION, A MULTI-DISCIPLINARY PROGRAM WAS ESTABLISHED IN PARTNERSHIP WITH PULMONARY LEADERSHIP TO ADDRESS COMPREHENSIVE PATIENT NEEDS. BREAST CANCER - NHI HAS MULTIPLE ACCESS POINTS FOR MAMMOGRAPHY SCREENINGS AND OTHER PREVENTION AND WELLNESS ACTIVITIES. NHI HAS IMPLEMENTED A BREAST HEALTH PROGRAM TO IMPROVE SERVICE OPTIONS FOR PATIENTS, TO STREAMLINE SCREENING ACTIVITIES AND PROVIDE A SINGLE ACCESS POINT TO EVALUATE CARE AND TREATMENT OPTIONS. PROSTATE CANCER - NCI PROVIDES PROSTATE SCREENINGS THROUGH VARIOUS VENUES, INCLUDING OUR MOBILE HEALTH UNIT IN UNDERSERVED AREAS, AS WELL AS OTHER ROUTINE HEALTH FAIRS WHERE SCREENINGS ARE OFFERED. NHI PROVIDES COMPREHENSIVE SERVICES, BEING THE FIRST IN THE COMMUNITY TO PROVIDE RADICAL PROSTATECTOMIES WITH THE DAVINCI ROBOT, PRESERVING TISSUE AND IMPROVING RECOVERY TIME. HEART DISEASE MORTALITY - NHI'S CARDIOVASCULAR PROGRAM HAS SPECIFIC INITIATIVES TO EXPAND ADVANCED IMAGING TO IMPROVE DIAGNOSIS RATES. FURTHER, OUR CLINICAL PROGRAMS ARE FOCUSED AROUND QUALITY INITIATIVES AND CONTINUOUS ENHANCEMENT OF BEST PRACTICES AND PROTOCOLS. NHI CONTINUES TO STRIVE FOR CLINICAL PROGRAM EXCELLENCE THROUGH ATTAINMENT OF ADVANCED ACCREDITATION LEVELS WITH NATIONAL AUTHORITIES AND WILL CONTINUE ENHANCEMENT OF OUR WORKFORCE AND PROGRAMS TO MEET COMMUNITY NEEDS. NHI HAS IMPLEMENTED A HEART FAILURE CLINIC UTILIZING ARNP'S FOR MANAGEMENT OF HIGH RISK PATIENTS. CHRONIC OBSTRUCTIVE PULMONARY DISEASE (COPD) - AS A LEADING STATE FOR THE PROVISION OF TOBACCO AND WITH MULTIPLE INDUSTRIAL PROVIDERS IN THE COMMUNITY, KENTUCKY'S INCIDENT RATES FOR COPD ARE EXCESSIVE. NHI HAS ESTABLISHED A NO SMOKING POLICY ON ALL CAMPUSES TO ELIMINATE EXPOSURE TO TOBACCO SMOKE FOR OUR PATIENTS AND FAMILIES. NHI HAS MULTIPLE PULMONOLOGISTS ON STAFF AND OFFERS A BROAD RANGE OF ACUTE CARE SERVICES AS WELL AS RESPIRATORY THERAPY AT ALL HOSPITALS AND AMBULATORY FACILITIES. NHI'S PREVENTION AND WELLNESS TEAM CONTINUES TO EXPAND SCREENING EFFORTS TO IDENTIFY THESE CHRONIC PATIENTS. IN ADDITION, OUR CARE MANAGEMENT TEAM HAS ESTABLISHED AND WILL CONTINUE TO IMPROVE UPON BEST PRACTICE PROTOCOLS FOR EFFECTIVE MANAGEMENT OF COPD PATIENTS. SYSTEM WIDE ICU/TCU ADMISSION CRITERIA ARE UTILIZED AND A COMPREHENSIVE CARE MODEL ENCOMPASSING HOSPITALISTS, PULMONARY SPECIALISTS AND CRITICAL CARE NP'S IS IN DEVELOPMENT TO IMPROVE CARE AND OUTCOMES FOR PATIENTS.
Schedule H, Part V, Section B, Line 15 Facility A, 1	Facility A, 1 - ALL HOSPITALS. SEE RESPONSE TO PART VI, LINE 3; PATIENT EDUCATION OF ELIGIBILITY FOR ASSISTANCE.
Schedule H, Part V, Section B, Line 16 Facility A, 1	Facility A, 1 - ALL HOSPITALS. SEE RESPONSE TO PART VI, LINE 3; PATIENT EDUCATION OF ELIGIBILITY FOR ASSISTANCE.
Schedule H, Part V, Section B, Line 22 Facility A, 1	Facility A, 1 - ALL HOSPITALS. NORTON HOSPITALS, INC. PROVIDES FREE CARE TO INDIVIDUALS THAT QUALIFY UNDER THE FINANCIAL ASSISTANCE POLICY. NO AMOUNTS ARE CHARGED TO ELIGIBLE PATIENTS.

Schedule H (Form 990) 2015

Page 8

Part VFacility Information (continued)

Section D. 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?0
Name and address		Type of Facility (describe)
1
2
3
4
5
6
7
8
9
10

Schedule H (Form 990) 2015

Page 9

Part VI

Supplemental Information

Provide the following information.

1	Required descriptions. Provide the descriptions required for Part I, lines 3c, 6a, and 7; Part II and Part III, lines 2, 3, 4, 8 and 9b.
2	Needs assessment. Describe how the organization assesses the health care needs of the communities it serves, in addition to any CHNAs 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.

Form and Line Reference	Explanation
Schedule H, Line 7, Input 7 STATE FILING OF COMMUNITY BENEFIT REPORT	NOT REQUIRED AT THIS TIME.
Schedule H, Part I, Line 6b Community Benefit Report	The annual community benefit initiative report is for all five hospitals in Norton Hospitals, Inc. (NHI) and is contained in the report prepared by NHI's parent corporation, Norton Healthcare, Inc.
Schedule H, Part VI, Line 5 PROMOTION OF COMMUNITY HEALTH	Norton Heart Care Norton Heart Care provides the region's most comprehensive screening, education and prevention program and is committed to educating our community about heart health and risk factor management. In 2015: * Norton Centers for Prevention & Wellness screened 4,170 people and provided various services for 9,562 people for high blood pressure, diabetes, high cholesterol and osteoporosis and provided information about smoking cessation, diet and exercise. * Norton Women's Heart & Vascular Center, the region's only center dedicated to education, prevention and treatment of heart disease for women, provided 46 participants heart disease risk assessments and education. * Norton Women's Heart & Vascular Center offered its free Circle of Hearts program, a quarterly heart disease and prevention class that focuses on heart health education and other wellness issues of interest to women. Circle of Hearts had 115 attendees in four classes. In addition, Yoga Nidra had 54 attendees; and Tai Chi for Health had 110 attendees. * Norton Women's Heart & Vascular Center attended heart health community events, including health fairs, presentations and speaking engagements held at 24 locations and reached 1,946 individuals representing businesses, churches, women's groups and health care professionals. * A registered nurse visited 223 new mothers at Norton Women's and Kosair Children's Hospital to provide heart health education, resource referrals and a baby blanket, including a Go Red for Women message. The women had all experienced pregnancy-related complications. * Norton Women's Heart & Vascular Center offers the only WomenHeart Support group in Kentucky, and Norton Heart Care is the only hospital in Kentucky to be a WomenHeart National Hospital Alliance Member. WomenHeart is the national coalition for women living with cardiovascular disease and is the only patient-centered program offering support and education for women living with cardiovascular disease. Norton Heart Care supported two women heart survivors and sent them to the Mayo Clinic to be trained at the WomenHeart Symposium to provide support and education to our Norton Heart Care patients and to the women in our community living with cardiovascular disease. In 2015, the WomenHeart program provided: * The monthly WomenHeart Support Group is offered at the Marshall Women's Health and Education Center. It is led by the WomenHeart Champions and a nurse from the Women's Heart and Vascular Center. In 2015, 84 women heart patients attended 9 classes which provided emotional support as well as education on healthy nutrition, exercise, and stress management. * The WomenHeart Champions visited women at all three Norton Heart Care Cardiac Rehabilitation locations to provide support and education to 48 women who were in the recovery phase of their cardiac surgery or procedure. The WomenHeart Champions visited 28 women at Norton Audubon Hospital to provide support, education, Red Bags of Courage, and HeartScarves to women undergoing cardiac surgeries or procedures. * The WomenHeart Champions reached 601 people by attending community events, health fairs, and providing educational presentations to businesses, churches, women groups, and healthcare professionals. Norton Cancer Institute In 2015, the Norton Cancer Institute Mobile Prevention Center served 226 locations in collaboration with more than 400 community partners, 50 percent of which were in underserved communities. This outreach resulted in 3,523 people being screened for cancer. Of these, approximately 40 percent either had never been screened for cancer or had not been screened in the past five years. In 2015, 17 of the screened individuals were diagnosed and treated for preinvasive and invasive cancer. Norton Cancer Institute's Genetic Counseling Services provided services to 560 new patients in 2015. This department specializes in cancer genetics and hereditary cancer syndromes. Norton Orthopaedic Care Norton Orthopaedic Care earned The Joint Commission's Gold Seal of Approval for knee and hip replacement. This recognition confirms Norton Orthopaedic Care provides a consistently high level of quality care, expert training on best practices, a team approach to patient care and a culture of excellence throughout Norton hospitals and doctors' offices. Norton Orthopaedic & Hand Center near the campus of Norton Brownsboro Hospital is a state-of-the-art facility with specialists of Norton Orthopaedic Care, Norton Sports Health and Norton to provide a multidisciplinary approach to innovative orthopaedic care. The facility supports research, training and education. It also offers patients subspecialized trained orthopaedists, a Norton Immediate Care Center with a focus on orthopaedics, rehabilitation services, advanced sports training and primary care services with an emphasis on orthopaedics. Women's services In 2015, free childbirth education classes were provided to 5,675 attendees at Norton Hospital and Norton Women's and Kosair Children's Hospital. Pediatric services and the Office of Child Advocacy Kosair Children's Hospital (KCH) is home to the Kentucky Regional Poison Control Center. In 2015, the center received 52,700 calls and made 44,196 follow-up calls to concerned families from all 120 counties in Kentucky. The center provided treatment consultation and education about how to correctly handle exposures to poisons. In addition, the center distributed more than 25,000 prevention education resources to physicians' offices, health departments and schools and more than 2,000 packets of materials to individuals who called the toll-free Poison Help Line, (800) 222-1222, available 24 hours a day, 7 days a week. Child passenger safety technicians from KCH checked 828 car and booster seats and provided 90 car seats and 179 booster seats at free checkup clinics statewide. The booster seats were provided through a grant from the Kentucky Highway Safety Office. KCH's Bike Rodeo Program saw 17,500 students in 2015 from grades three through five throughout Kentucky participated in 117 bike safety "rodeos." Approximately 350 middle school students and 20 teachers participated in "Safe Kids Walk This Way," a program led by KCH. The program is designed to reduce dangerous distraction behaviors of teen pedestrians. KCH's "Just for Kids" Transport Team made 2,103 trips to transport babies and children from across the region to KCH in 2015. Transportation was provided by airplane, helicopter and specially equipped ambulances (mobile intensive care units). More than 5,000 kindergarten students, 200 teachers, 520 chaperones and 250 nursing students attended the 32nd annual Children & Hospitals Week event led by KCH. The program was held at Louisville Slugger Field and supported by a Kohl's Cares grant. Children & Hospitals Week, held each year in March, is designed to teach safe decisions and behaviors and help lessen the fear and anxiety children may have about coming to a hospital.
Schedule H, Part VI, Line 5 PROMOTION OF COMMUNITY HEALTH	Norton Neuroscience Institute Norton Neuroscience Institute is continuing its quest to be the regional and national leader in treatment, research and academic training for adult and pediatric neuroscience disciplines. Norton Neuroscience Institute allows patients to be treated for neurological disorders without having to leave the region for care. More than two dozen subspecialty fellowship-trained neurosurgeons, neurologists and other neurological-related specialists have joined the growing practice. These physicians provide expertise in stroke care, epilepsy, Parkinson's disease, multiple sclerosis, ALS, brain tumors, headaches, concussions and many other neurological conditions. The following services also are available to our community as a result of Norton's significant commitment to the best neurological care: * An endovascular neurosurgery team is available at two Norton Healthcare adult-service facilities, making advanced stroke, aneurysm and arteriovenous malformation (random brain hemorrhage or rupture) treatment possible when it was previously not available in the region. * A state-of-the art epilepsy center at Norton Brownsboro Hospital (NBH) provides the region's most advanced epilepsy monitoring unit and is dedicated to providing accurate diagnoses and quality care for individuals living with seizures and epilepsy. As part of Norton Neuroscience Institute's multidisciplinary approach to epilepsy care, the NBH epilepsy monitoring unit is a specialized inpatient unit designed to evaluate and diagnose seizure disorders. * A centralized Norton Neuroscience Institute Resource Center is available to patients, offering free education and support services. The resource center offers support groups, mental health counseling, clinical trial information and educational, therapeutic and exercise programs. In addition, patients have access to National Institutes of Health clinical trials through the center. * The region's first rehabilitation program focused solely on treating patients with neurological and spine disorders has the only Lokomat system available to Louisville-area patients. Lokomat assists with walking movements for patients receiving therapy for paralysis or movement disorders. Research In 2015, Norton participated in more than 725 community benefit research projects. Our research benefits Norton patients and develops results that will become generalizable to and shared with a wide number of patient populations and medical professionals. These new, innovative treatments expand the medical community's knowledge and potentially improve the quality of medical care now and in the future. Norton Office of Research Administration partnered with Norton University to offer research education to all researchers in Metro Louisville and beyond. In 2015, seven programs were offered. Attendees included Norton, KentuckyOne Health, University of Louisville Hospital, Floyd Memorial Hospital, Cincinnati Children's Hospital Medical Center, St. Vincent Health, University of Kentucky, University of Louisville and various community-based practices. NHI INVESTS IN THE COMMUNITY BY APPLYING SURPLUS FUNDS TO IMPROVEMENTS IN PATIENT CARE - INCLUDING MANY FREE HEALTH CARE SCREENING 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 $42.9 MILLION IN EDUCATIONAL SUPPORT, PRIMARILY TO THE UNIVERSITY OF LOUISVILLE SCHOOL OF MEDICINE.
Schedule H, Part I, Line 3c Eligibility criteria for free or discounted care	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.
Schedule H, Part I, Line 6a Community benefit report prepared by related organization	NORTON HEALTHCARE, INC.
Schedule H, Part I, Line 7 Bad Debt Expense excluded from financial assistance calculation	54315739
Schedule H, Part I, Line 7 Costing Methodology used to calculate financial assistance	THE COSTING METHODOLOGY USED TO CALCULATE THE COMMUNITY BENEFIT EXPENSES WAS 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.
Schedule H, Part II Community Building Activities	AMOUNTS PRESENTED ARE BASED ON ACTUAL AMOUNTS SPENT FOR THOSE SERVICES AND BENEFITS PROVIDED DEEMED TO IMPROVE THE HEALTH OF THE COMMUNITIES IN WHICH WE SERVE.
Schedule H, Part III, Line 2 Bad debt expense - methodology used to estimate amount	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 DIFFERENCES ARE WRITTEN OFF TO CONTRACTUAL ALLOWANCE/DENIAL CATEGORY.
Schedule H, Part III, Line 3 Bad Debt Expense Methodology	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/FIRSTSOURCE, 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 APPEAR TO MEET NORTON HOSPITAL, 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/FIRSTSOURCE AND THEIR EXPERIENCE WITH GETTING ACCOUNTS QUALIFIED AS FINANCIAL ASSISTANCE, IT IS ESTIMATED THAT 90% 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 90% ESTIMATED CONVERSION FACTOR.
Schedule H, Part III, Line 4 Bad debt expense - financial statement footnote	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 WRITEOFF 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 ACCOUNTS.
Schedule H, Part III, Line 8 Community benefit & methodology for determining medicare costs	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.
Schedule H, Part III, Line 9b Collection practices for patients eligible for financial assistance	AFTER THE PATIENT'S INITIAL SCREENING FOR FINANCIAL ASSISTANCE, IF IT IS BELIEVED 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 APPLICATION, 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 BALANCE IS WRITTEN OFF.
Schedule H, Part V, Section B, Line 16b FAP Application website	A - Norton Hospital: Line 16b URL: www.nortonhealthcare.com/FAP;
Schedule H, Part V, Section B, Line 16c FAP plain language summary website	A - Norton Hospital: Line 16c URL: www.nortonhealthcare.com/FAP;
Schedule H, Part VI, Line 2 Needs assessment	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 CENTER 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 CONDUCTED A COMMUNITY HEALTH NEEDS ASSESSMENT (CHNA) FOR ALL HOSPITALS. 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. COMMUNITY INPUT WAS PROVIDED THROUGH COMMUNITY FORUMS AND A COMMUNITY HEALTH SURVEY WAS WIDELY DISTRIBUTED BY THE LOUISVILLE METRO DEPARTMENT OF PUBLIC HEALTH AND WELLNESS. HEALTH NEEDS WERE PRIORITIZED AND ADDRESSED BASED ON HEALTH STATUS FINDINGS AND THE COMMUNITY INPUT. THE CHNA IS A COMPONENT OF THE ORGANIZATION'S STRATEGIC PLANNING PROCESS AS RESOURCES ARE NECESSARY TO IMPLEMENT STRATEGIES OUTLINED FOR PRIORITIES IDENTIFIED. NORTON HEALTHCARE, INC. (NORTON) BOARD OF TRUSTEES AS WELL AS THE LEADERSHIP OF NORTON AND HOSPITAL CHIEF ADMINISTRATIVE OFFICERS HAVE APPROVED THE ASSESSMENT AND IMPLEMENTATION PLAN.
Schedule H, Part VI, Line 3 Patient education of eligibility for assistance	Signage is posted in all Norton Healthcare, Inc. (Norton) hospital facilities, including the admission area and emergency room, providing information on the ability to apply for financial assistance and to seek help in paying your bill. The signage is translated in five different languages and all languages are contained on the same poster. Those languages are: English, Spanish, Vietnamese, Serbo-Croatian, and Arabic. At the time of registration, the Patient Access/Registration Department discusses with the patient the financial assistance/charity options, guidelines, and provides assistance as needed in filling out a financial assistance application and answering questions. Additional questions from the patient/guarantor can be facilitated through the Norton Single Billing Office (SBO) area, Customer Service, and Norton Vendors. Norton has created a number of different options for the patient/guarantor to supply the information/application for financial assistance to Norton. Those various methods of delivery include: in person, by mail, by fax, on-line application submission via the website, and by specific email address. These various options are publicized and made known to the patient. In 2015, statements mailed to the guarantors by Norton Hospitals, Inc. (NHI) contained information to start the financial assistance application process. 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 Healthcare, Inc. (Norton) Financial Assistance, Medicaid , Medicaid Managed Care Organizations, Presumptive Eligibility, 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. 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 and enrollment services estimated to be in excess of $3,000,000 per year. NHI has a staff of 11-12 full-time employees, including a supervisor, that are dedicated to performing the following functions: processing, reviewing, and approving the hundreds of financial assistance applications that are received each week. Additionally, some of those employees make out-bound calls to solicit financial assistance applications from our hospital patients. Financial Assistance for Norton 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 to determine and explain our financial assistance programs. They continue to receive on-going education throughout the year regarding eligibility changes and additions for Norton Financial Assistance, DSH/KHCP, Medicaid, Medicaid Managed Care Organizations, Presumptive Eligibility, etc. As the Foundation Office receives inquiries in their offices, they refer these individuals to Patient Financial Services to screen for possible financial assistance. If a child's account does not qualify for Norton Financial Assistance, then those denied children's applications are referred to management of Patient Financial Services for consideration for special funding through The Children's Hospital Foundation, Inc. as well as other programs. The charity application was provided on the back of the SBO Hospital statement in 2015. NHI made a conscientious effort to ensure that all hospital patients were made aware of financial assistance regardless of where the patient's account may have been in the collection cycle. Even if the patient/guarantor had not previously availed themselves of the opportunity to apply for financial assistance and decided that they will now cooperate (even if a year or more into the collection stream), then NHI would allow the patient/guarantor to apply and would approve if they met the qualifications. Financial Assistance notifications and applications were made available to the patient/guarantor via telephone, website notification, mail, electronically, etc. 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. The initial notification letter sent by the collection agencies (that is required by the fair debt collection practices act) to the guarantor is also written in Spanish that alerts guarantors to contact a specific number to speak with a Spanish-speaking representative that will also provide financial assistance: or, the customer service phone number contained on the initial notification may not be written in Spanish but the phone number allows for the patient to request to speak with a Spanish-speaking representative who could supply financial assistance information. NHI has translated a financial assistance letter in Spanish and Vietnamese. The letter and the application are made available to the collection agencies. NHI Customer Service Department routinely instructs and screens patients in the protocol regarding financial assistance through Norton Financial Assistance. Since 2007, NHI has offered at the time of final billing all true hospital 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". THE STATEMENTS PROVIDED BY NHI IN 2015: included THE LINK TO THE NORTON HEALTHCARE, INC. (NORTON) WEBSITE TO LEARN MORE ABOUT FINANCIAL ASSISTANCE; CONTAINED THE FINANCIAL ASSISTANCE APPLICATION ON THE BACK OF THE STATEMENT SO THE GUARANTOR COULD APPLY USING THE ACTUAL NORTON STATEMENT AND COULD THEN MAIL, FAX, OR EMAIL THE FORM TO NORTON; AND A PHONE NUMBER TO CALL TO LEARN MORE ABOUT THE APPLICATION PROCESS AND DISCUSS FINANCIAL ASSISTANCE OPTIONS.
Schedule H, Part VI, Line 4 Community information	PRIMARY SERVICE AREA NORTON HOSPITALS INC.'S (NHI) PRIMARY SERVICE AREA POPULATION IS OVER ONE MILLION AND EXPECTED TO INCREASE 3% BETWEEN 2015 AND 2020. 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-NINE PERCENT OF NHI'S PATIENTS ARE DERIVED FROM THIS SERVICE AREA. APPROXIMATELY 31% OF THE POPULATION IS OVER 55 YEARS OLD; COMPARED TO 27% IN THE USA. THIS PORTION OF THE POPULATION TENDS TO USE ADDITIONAL HEALTHCARE SERVICES. THE PEDIATRIC POPULATION IN 2015 WAS ESTIMATED AT 266,584 AND IS EXPECTED TO INCREASE TO 269,193 WITHIN FIVE YEARS AND REPRESENTS 23% OF THE POPULATION. THE NUMBER OF HOUSEHOLDS IN THE PRIMARY SERVICE AREA WAS ESTIMATED AT 471,023 IN 2015 AND IS EXPECTED TO INCREASE 3.1% BY 2020. CURRENTLY 12% OF THE ADULT POPULATION DOES NOT HAVE A HIGH SCHOOL DEGREE AND 25% OF THE HOUSEHOLD INCOME IS LESS THAN $25,000 A YEAR; THE AVERAGE HOUSEHOLD INCOME IS $68,104 COMPARED TO $74,165 FOR THE UNITED STATES. NHI TREATS 48% OF THE ADULT INPATIENT CASES IN THE COMMUNITY AND ITS PAYOR MIX IS 50% MEDICARE, 24% MEDICAID/PASSPORT AND 2% SELF PAY. THE LARGEST COUNTY IN THE SERVICE AREA IS JEFFERSON COUNTY AND ITS MAY 2016 PRELIMINARY NON-SEASONALLY ADJUSTED UNEMPLOYMENT RATE WAS 4.4% COMPARED TO 4.9% FOR KENTUCKY AND 4.5% FOR THE UNITED STATES. SECONDARY SERVICE AREA NHI'S SECONDARY SERVICE AREA POPULATION WAS 744,806 IN 2015 AND IS EXPECTED TO INCREASE 2.5% BETWEEN 2015 AND 2020. THE SECONDARY SERVICE AREA SPREADS ACROSS 22 KENTUCKY COUNTIES AND 4 INDIANA COUNTIES. THE 55+ AGE COHORT REPRESENTS 28% OF THE SECONDARY SERVICE AREA POPULATION AND IS SLIGHTLY HIGHER THAN IN THE UNITED STATES. THE PEDIATRIC POPULATION IN 2015 WAS ESTIMATED AT 174,037 AND EXPECTED TO DECREASE TO 173,130 BY 2020. ALTHOUGH THE PEDIATRIC POPULATION IS EXPECTED TO BE remain CONSISTENT, THERE IS A NEED FOR CHILDREN TO HAVE APPROPRIATE ACCESS TO CARE IN THE RURAL AREAS OF KENTUCKY. THE NUMBER OF HOUSEHOLDS IN THE SECONDARY SERVICE AREA WAS ESTIMATED AT 287,546 IN 2015 AND IS EXPECTED TO INCREASE 2.7% BY 2020. ALMOST 85,000 ADULTS IN THIS SERVICE AREA DO NOT HAVE A HIGH SCHOOL EDUCATION AND THE HOUSEHOLD INCOME IS UNDER $25,000 FOR 28% OF THE POPULATION. THE AVERAGE HOUSEHOLD INCOME IS $57,164, LESS THAN KENTUCKY AND 16% LESS THAN THE PRIMARY SERVICE AREA.
Schedule H, Part VI, Line 5 Promotion of community health	NORTON HEALTHCARE, INC. (NORTON), PARENT OF NORTON HOSPITALS, INC. (NHI), IS INDEPENDENTLY OVERSEEN BY A 21 MEMBER BOARD OF TRUSTEES. WITH THE EXCEPTION OF NORTON'S CHIEF EXECUTIVE OFFICER, NONE OF THESE INDIVIDUALS ARE EMPLOYEES OF THE ORGANIZATION. ALL MEMBERS OF THE BOARD RESIDE IN THE ORGANIZATION'S PRIMARY SERVICE AREA. IN AN EFFORT TO ENSURE THE BEST CARE FOR PATIENTS, NHI GENERALLY EXTENDS MEDICAL STAFF PRIVILEGES TO ALL QUALIFIED PHYSICIANS IN ITS COMMUNITY FOR SOME OR ALL OF ITS SERVICE LINES/DEPARTMENTS. IN FACT, MORE THAN 2,000 PHYSICIANS ARE ON NHI'S MEDICAL STAFF. A THIRD OF THE ORGANIZATION'S MISSION STATEMENT SPEAKS TO THE COMMITMENT TO PROVIDE QUALITY HEALTHCARE THAT "RESPONDS TO THE NEEDS OF OUR COMMUNITIES." 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 2015 NHI'S TOTAL COMMUNITY BENEFIT WAS $138.5 MILLION, OVER $2.7 MILLION A WEEK, AND INCLUDES COMMUNITY INITIATIVES AND PROGRAMS SUCH AS FINANCIAL ASSISTANCE, CHARITY CARE, EDUCATIONAL SUPPORT, UNPAID COSTS OF MEDICAID SERVICES, CORPORATE SPONSORSHIPS, PASTORAL CARE AND COUNSELING PROGRAMS, HEALTH PROGRAMS FOR FAITH COMMUNITIES, KENTUCKY POISON CONTROL CENTER AND CHILD GUIDANCE AND ADVOCACY PROGRAMS. NHI EMPLOYEES VOLUNTEERED FOR OVER 200 ORGANIZATIONS. NHI PARTNERS WITH OTHER NONPROFIT 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 OF ILLNESS AND DISEASE. 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. Contributions to the Community Norton employees and physicians gave more than $950,000 to the 2015 Combined Giving Campaign to help support the WHAS Crusade for Children, Metro United Way, Fund for the Arts, The Children's Hospital Foundation, Norton Healthcare Foundation and Kosair Charities. Norton employees "Raised the Roof" on a Habitat for Humanity house in the Hazelwood neighborhood in Louisville, Ky. This is the ninth Habitat home Norton employees have built. In 2015, more than 600 Norton employees donated time and funds to plan, purchase and deliver gifts, food and clothing for the Caring Tree program. The program assisted 329 employees and their 719 children by providing for their families at Christmas. More than 31,483 pounds of usable surplus medical supplies and other items were salvaged for donation to be used around the world through the Supplies Over Seas organization. The dollar value of these items was $504,000. In addition, $8,000 in equipment was donated. Norton employees donated 86,458 hours of community service, a benefit valued at more than $1.2 million. In addition, many employees self-reported personal volunteer activities, which totaled nearly 4,000 hours of service. Community Education and Workforce Development One of Kentucky's largest healthcare systems, Norton has established a culture of continual, lifelong learning through the departments of Workforce Development, Norton Institute for Nursing and Norton University. Workforce Development, encourages continuing education, improves job performance and provides financial assistance for designated educational programs related to the business operations of the organization. Norton encourages and supports employees and dependents career goals by providing financial assistance and scholarships as well as other advancement opportunities. In 2015, Workforce Development financially supported more than 700 students with nearly $5 million in educational assistance programs. Workforce Development was nominated for recognition at the White House UpSkill Summit. Workforce Development Career Center served over 1,300 students. Each program participant worked directly with a Certified Career Management Coach, offering services in resume writing; career and educational exploration; financial assistance opportunities for educational pursuit; interviewing skills and mentoring. Nurse Extern Program is a seven-week summer program that provides a hands-on learning opportunity for exceptional nursing students to work directly with medical professionals at Norton. In 2015, this program had 61 participants. Tuition assistance program is offered to employee students seeking to grow their education with a healthcare-related degree. In 2015, 344 employees participated. Norton Scholars Accelerated Program, a student loan program, for employees and non-employees, provides educational funding to students interested in pursuing designated healthcare careers. It is an affiliation between Norton and over 100 colleges and universities nationally. This program has 2,361 graduates and 1,855 of these graduates have continued their careers with Norton. Norton, through Workforce Development, continues to partner with the city of Louisville through a summer job and internship program known as the Mayor Summers Work Program, to give young adults an opportunity to be employed in our healthcare environment during the summer months. In 2015, 35 young adults participated in this program. Norton University provides learning opportunities to enhance the professional, educational, and personal development of all employees. Norton University's Value Proposition states "Norton University nurtures learning and relations to inspire change that leads to exceptional experiences for both patients and employees." In 2015, Norton University held 245,525 learning events, an average of 18.3 trainings per employee. In 2015, Norton University provided 250 instructor-led and 1,585 on-line courses for leaders and staff of all disciplines. Elevating the First Line Employee, School at Work and College at Work programs expose entry-level staff to healthcare careers and help them obtain a higher level position, GED or college degree. Leadership development programs that support the development of leaders (Nursing, Physician Practices, Physician and System) across the continuum. Organizational development activities that assist in creating a more effective and efficient workplace with highly engaged employees. Office of Church and Health Ministries The Office of Church and Health Ministries provides free education, resources and services to faith community nurses and others working in congregational health ministries. Through participation in events around the community, the office has partnered with the Mid-Kentucky Presbytery, United Methodist Church Kentucky Conference, Central District Baptist Association, United Church of Christ Ministerium, African American Episcopal Church Conference and the Episcopal Diocese of Kentucky Annual Convention. In 2015, the office mentored and served nearly 200 faith communities with active health ministries programs, and assisted many others with health and wellness efforts. N Good Health Norton is leading the way in workplace health and wellness with N Good Health - the organization's internal wellness program. N Good Health is designed to help you improve or maintain your health through department support, discounts on popular wellness programs, participation incentives and more. N Good Health continually strives to increase employee engagement and improve the participant experience. In 2015: * 75 percent of employees (6,748) and 64 percent of covered spouses (2,413) completed the 4 steps of the N Good Health wellness program. * Norton was ranked the 11th healthiest workplace in America. * Norton was named one of Business First's Healthiest Employers in Greater Louisville. * Norton received the Fleur de Lis Worksite Wellness Award from the Mayor's Healthy Hometown movement. * Our employee population had a decrease in pre-diabetes, high cholesterol and tobacco use. * Employees participating in our free or reduced-cost programs have an average weight loss ranging from 8 to 24 pounds.
Schedule H, Part VI, Line 6 Affiliated health care system	NORTON HEALTHCARE, INC. (THE CONTROLLING COMPANY) AND ITS AFFILIATES, INCLUDING NORTON HOSPITALS, INC., NORTON ENTERPRISES, INC., NORTON PROPERTIES, INC., THE CHILDREN'S HOSPITAL FOUNDATION, INC., NORTON HEALTHCARE FOUNDATION, INC., AND COMMUNITY MEDICAL ASSOCIATES, INC. OPERATE IN THE LOUISVILLE, KENTUCKY METROPOLITAN AREA AND THE OPERATIONS OF THE AFFILIATED HEALTHCARE SYSTEM INCLUDE 1,837 LICENSED BEDS, MORE THAN 185 PHYSICIAN PRACTICE AND 13 NORTON IMMEDIATE CARE CENTER LOCATIONS, AND OTHER ANCILLARY HEALTH CARE SERVICES.

Schedule H (Form 990) 2015

Additional Data

Software ID:	15000238
Software Version:	2015v2.1

- TIN:

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" on Form 990, Part IV, line 23.
SchJMediumBullet

Attach to Form 990.
SchJMediumBullet

Information about Schedule J (Form 990) and its instructions is at www.irs.gov/form990.

OMB No. 1545-0047

2015

Open to Public Inspection

Name of the organization

Norton Hospitals Inc

Employer identification number

61-0703799

Part I

Questions Regarding Compensation

Yes

Check the appropiate box(es) if the organization provided any of the following to or for a person listed on Form
990, Part VII, Section A, line 1a. Complete Part III to provide any relevant information regarding these items.

First-class or charter travel Housing allowance or residence for personal use

Travel for companions Payments for business use of personal residence

Tax idemnification and gross-up payments Health or social club dues or initiation fees

Discretionary spending account Personal services (e.g., maid, chauffeur, chef)

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 .........

Yes

Did the organization require substantiation prior to reimbursing or allowing expenses incurred by all
directors, trustees, officers, including the CEO/Executive Director, regarding the items checked in line 1a? ..

Yes

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.

Compensation committee Written employment contract

Independent compensation consultant Compensation survey or study

Form 990 of other organizations Approval by the board or compensation committee

During the year, did any person listed on Form 990, Part VII, Section A, line 1a with respect to the filing organization or a related organization:

Receive a severance payment or change-of-control payment? ................

Yes

Participate in, or receive payment from, a supplemental nonqualified retirement plan? .........

Yes

Participate in, or receive payment from, an equity-based compensation arrangement? .........

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), 501(c)(4), and 501(c)(29) organizations must complete lines 5-9.

For persons listed on Form 990, Part VII, Section A, line 1a, did the organization pay or accrue any
compensation contingent on the revenues of:

The organization? ...........................

Any related organization?

If "Yes," on line 5a or 5b, describe in Part III.

For persons listed on Form 990, Part VII, Section A, line 1a, did the organization pay or accrue any
compensation contingent on the net earnings of:

The organization?

Any related organization? .........................

If "Yes," on line 6a or 6b, describe in Part III.

For persons listed on 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 ............

Yes

Were any amounts reported on 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 .............................

If "Yes" on line 8, did the organization also follow the rebuttable presumption procedure described in Regulations section 53.4958-6(c)? .........................

For Paperwork Reduction Act Notice, see the Instructions for Form 990.

Cat. No. 50053T

Schedule J (Form 990) 2015

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 on 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 in column(B) reported as deferred on prior Form 990
(A) Name and Title		(i) Base compensation	(ii) Bonus & incentive compensation	(iii) Other reportable compensation	(C) Retirement and other deferred compensation	(D) Nontaxable benefits	(E) Total of columns (B)(i)-(D)
1Stephen A Williams CEO/Trustee	(i) (ii)	0 ------------- 1,108,698	0 ------------- 670,607	0 ------------- 820,002	0 ------------- 108,581	0 ------------- 27,353	0 ------------- 2,735,241	0 ------------- 35,455
2Russell F Cox President	(i) (ii)	0 ------------- 782,057	0 ------------- 323,406	0 ------------- 266,228	0 ------------- 733,119	0 ------------- 30,817	0 ------------- 2,135,627	0 ------------- 102,524
3Michael W Gough Sys Sr VP CFO/Treasurer	(i) (ii)	0 ------------- 642,297	0 ------------- 273,025	0 ------------- 226,152	0 ------------- 531,021	0 ------------- 29,787	0 ------------- 1,702,282	0 ------------- 83,860
4Robert B Azar Sys VP Chief Legal Officer/Secretary	(i) (ii)	0 ------------- 414,691	0 ------------- 137,280	0 ------------- 101,531	0 ------------- 105,560	0 ------------- 11,955	0 ------------- 771,016	0 ------------- 54,508
5Steven MacLauchlan Hospital President	(i) (ii)	12,000 ------------- 0	0 ------------- 0	649,941 ------------- 0	54,116 ------------- 0	49 ------------- 0	716,106 ------------- 0	545,070 ------------- 0
6Steven Pursell VP Medical Director NCI	(i) (ii)	658,309 ------------- 0	50,250 ------------- 0	25,123 ------------- 0	24,622 ------------- 0	15,379 ------------- 0	773,682 ------------- 0	0 ------------- 0
7Thomas Kmetz Division President Women and Children Services	(i) (ii)	468,815 ------------- 0	155,643 ------------- 0	119,359 ------------- 0	133,230 ------------- 0	31,799 ------------- 0	908,846 ------------- 0	65,800 ------------- 0
8Kevin Wardell Hospital CAO	(i) (ii)	422,961 ------------- 0	168,671 ------------- 0	107,598 ------------- 0	91,750 ------------- 0	26,664 ------------- 0	817,645 ------------- 0	15,215 ------------- 0
9John Harryman Hospital CAO	(i) (ii)	291,491 ------------- 0	206,022 ------------- 0	108,842 ------------- 0	806,028 ------------- 0	28,912 ------------- 0	1,441,295 ------------- 0	58,520 ------------- 0
10Mary Gruebbel VP Pediatric Ops/CNO	(i) (ii)	279,616 ------------- 0	71,740 ------------- 0	121,779 ------------- 0	36,885 ------------- 0	12,466 ------------- 0	522,487 ------------- 0	0 ------------- 0
11Charlotte Ipsan Hospital CAO	(i) (ii)	283,265 ------------- 0	92,516 ------------- 0	75,477 ------------- 0	81,084 ------------- 0	24,245 ------------- 0	556,588 ------------- 0	40,320 ------------- 0
12Matthew Ayers Hospital CAO	(i) (ii)	293,102 ------------- 0	65,102 ------------- 0	45,034 ------------- 0	63,561 ------------- 0	23,422 ------------- 0	490,220 ------------- 0	0 ------------- 0
13Brian Stoll Physician	(i) (ii)	561,973 ------------- 0	238,667 ------------- 0	16,653 ------------- 0	41,064 ------------- 0	29,627 ------------- 0	887,983 ------------- 0	0 ------------- 0
14Aaron Spalding Physician	(i) (ii)	542,562 ------------- 0	238,667 ------------- 0	31,039 ------------- 0	18,786 ------------- 0	34,359 ------------- 0	865,414 ------------- 0	0 ------------- 0
15Michael Hahl Physician	(i) (ii)	545,595 ------------- 0	238,667 ------------- 0	21,282 ------------- 0	19,180 ------------- 0	29,754 ------------- 0	854,478 ------------- 0	0 ------------- 0
16Mark Cornett Physician	(i) (ii)	542,869 ------------- 0	238,667 ------------- 0	23,128 ------------- 0	23,760 ------------- 0	32,254 ------------- 0	860,677 ------------- 0	0 ------------- 0
17Patrick Williams Physician	(i) (ii)	388,125 ------------- 0	326,500 ------------- 0	83,822 ------------- 0	5,633 ------------- 0	19,741 ------------- 0	823,821 ------------- 0	0 ------------- 0

Schedule J (Form 990) 2015

Page 3

Part III

Supplemental Information

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.

Return Reference	Explanation
Schedule J, Part I, Line 1a Discretionary spending account	DISCRETIONARY SPENDING ACCOUNTS ARE TREATED AS TAXABLE COMPENSATION. THE ORGANIZATION PROVIDES A DISCRETIONARY SPENDING ACCOUNT FOR ELIGIBLE NORTON HEALTHCARE, INC. (NORTON) EXECUTIVES, EFFECTIVE OCTOBER 1, 2007. NORTON 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 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 2015: Matthew Ayers - 10,000 Kevin Wardell - 17,500 John Harryman - 17,500 Thomas Kmetz - 17,500 Steven MacLauchlan - 17,500 Charlotte Ispan - 10,000
Schedule J, Part I, Line 3 Arrangement used to establish the top management official's compensation	NORTON HEALTHCARE INC (NORTON) 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 NORTON; 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.
Schedule J, Part I, Line 4a Severance or change-of-control payment	Severance payment was received during 2015 by key employee: Steven MacLauchlan in the amount of $424,110 other compensation included in Schedule J column B(iii).
Schedule J, Part I, Line 4b Supplemental nonqualified retirement plan	THE FOLLOWING INTERESTED PERSONS PARTICIPATED IN OR RECEIVED PAYMENT FROM SUPPLEMENTAL NONQUALIFIED RETIREMENT PLANS AS DESCRIBED IN IRC SECTION 457(F). THE INTERESTED PERSONS BELOW MAY HAVE PARTICIPATED IN ONE OR MORE OF THE FOLLOWING PLANS: THE EXECU-FLEX BENEFIT PLAN, THE EXECU-PLUS BENEFIT PLAN, DEFINED BENEFIT AND DEFINED CONTRIBUTION RESTORATION PLANS, AND THE PHYSICIAN DEFERRED PLAN. THE "PAY CREDIT" 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 - $ 36,519 Russell F. Cox - 525,793 Michael W. Gough - 352,351 Robert Azar - 85,695 Matthew Ayers - 44,529 Mary Gruebbel - 20,985 Charlotte Ipsan -53,476 John Harryman - 64,279 Thomas Kmetz - 106,240 Steve MacLauchlan - 38,216 Kevin Wardell - 45,649 THE "PAYMENT RECEIVED" OUTLINED BELOW REPRESENTS CASH PAYMENTS THAT THE EMPLOYEE RECEIVED DURING 2015 AND CAN BE COMPRISED OF CURRENT AND OR PRIOR YEARS EMPLOYEE AND EMPLOYER CONTRIBUTIONS. NAME - PAYMENT RECEIVED Stephen A. Williams -$ 145,012 Russell F. Cox - 120,308 Michael W. Gough - 93,801 Robert Azar - 62,719 Matthew Ayers - 32,434 Mary Gruebbel - 93,136 Charlotte Ipsan - 44,113 John Harryman - 66,890 Thomas Kmetz - 75,229 Steve MacLauchlan - 183,830 Kevin Wardell - 60,860
Schedule J, Part I, Line 7 Non-fixed payments	In 2015, Norton Healthcare, Inc. (Norton) had in place a Variable Compensation Plan for Executives, eligibility under which extended to employees holding a full-time position as Senior Officer, Officer, System Director or other designated Director level position. Under the plan, a variable compensation pool amount is approved by the Board of Trustees. Each participant's performance is evaluated relative to the goals and objectives documented as part of the participant's plan; and an award is determined for the participant, based on achievement of the goals and objectives, subject to the funding of the variable compensation pool. At the end of each year, the Committee on Executive Compensation and Benefits determines an appropriate award for the Norton's President & Chief Executive Officer, and the President & Chief Executive Officer recommends appropriate awards for other senior executives to the Committee on Executive Compensation and Benefits for its review and approval.

Schedule J (Form 990) 2015

Additional Data

Software ID:	15000238
Software Version:	2015v2.1

- TIN:

Schedule L
(Form 990 or 990-EZ)

Department of the Treasury
Internal Revenue Service

Transactions with Interested Persons

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

Information about Schedule L (Form 990 or 990-EZ) and its instructions is at www.irs.gov/form990.

OMB No. 1545-0047

2015

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), section 501(c)(4), and 501(c)(29) 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	(c) Description of transaction	(d) Corrected?
1(a) Name of disqualified person	(c) Description of transaction	Yes	No

Enter the amount of tax incurred by organization managers or disqualified persons during the year under section 4958. ........................... Bullet Image

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?
(a) Name of interested person	(b) Relationship with organization	(c) Purpose of loan	To	From	(e)Original principal amount	(f)Balance due	Yes	No	Yes	No	Yes	No










Total ............... $

Part III

Grants or Assistance Benefiting 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) 2015

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?
(a) Name of interested person		(c) Amount of transaction	(d) Description of transaction	Yes	No
(1) JASON NACAZEL	FAMILY MEMBER OF RONALD LEHOCKY, TRUSTEE	78,870	COMPENSATION		No
(2) BARBARA KMETZ	FAMILY MEMBER OF THOMAS KMETZ, KEY EMPLOYEE	51,915	COMPENSATION		No
(3) JENNIFER HAMPTON	family member of Edie Nixon, Trustee	28,613	COMPENSATION		No
(4) SIBYL CAGATA	FAMILY MEMBER OF STEVEN PURSELL, FORMER KEY EMPLOYEE	112,359	COMPENSATION		No

Part V

Supplemental Information
Provide additional information for responses to questions on Schedule L (see instructions).

Return Reference	Explanation

Schedule L (Form 990 or 990-EZ) 2015

Additional Data

Software ID:	15000238
Software Version:	2015v2.1

- TIN:

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 990-EZ or to provide any additional information.
MediumBullet

Attach to Form 990 or 990-EZ.
MediumBullet

Information about Schedule O (Form 990 or 990-EZ) and its instructions is at
www.irs.gov/form990.

OMB No. 1545-0047

2015

Open to Public
Inspection

Name of the organization

Norton Hospitals Inc

Employer identification number

61-0703799

Return Reference	Explanation
Form 990, Part V, Line 2a COMMON PAYING AGENT FOR EMPLOYEES	NORTON HEALTHCARE, INC. (NORTON) EIN 61-102875 IS THE COMMON PAYING AGENT FOR NORTON HOSPITALS, INC. (NHI) THEREFORE, ALL APPLICABLE IRS TAX COMPLIANCE FILINGS ARE REPORTED BY NORTON ON BEHALF OF NHI. NHI HAS APPROXIMATELY 10,019 EMPLOYEES.
Form 990, Part V, Line 1a COMMON PAYING AGENT 1099S	NORTON HEALTHCARE, INC. (NORTON) EIN 61-1028725 IS THE COMMON PAYING AGENT FOR NORTON HOSPITALS, INC. (NHI) AND THEREFORE, ALL VENDORS, INCLUDING INDEPENDENT CONTRACTORS, ARE PAID AND REPORTED BY NORTON ON BEHALF OF NHI. FOR PURPOSES OF PART V, LINE 1, THE NUMBER OF 1099S REPORTED AND FILED FOR 2015 BY NORTON FOR NHI, WAS APPROXIMATELY 294. NHI HAS APPROXIMATELY 130 INDEPENDENT CONTRACTORS EXCEEDING $100,000 FOR 2015.
Form 990, Part VI, Line 1a Delegate broad authority to a committee	THE EXECUTIVE COMMITTEE SHALL POSSESS AND MAY EXERCISE ALL THE POWERS AND AUTHORITY OF THE BOARD OF TRUSTEES IN THE MANAGEMENT AND DIRECTION OF THE BUSINESS AND AFFAIRS OF THE CORPORATION. HOWEVER, THE EXECUTIVE COMMITTEE DOES NOT POSSESS THE AUTHORITY TO DO THE FOLLOWING: A) FILL VACANCIES ON THE BOARD; B) CHANGE THE MEMBERSHIP OF THE EXECUTIVE COMMITTEE; C) MAKE DECISIONS TO MERGE, LIQUIDATE, OR OTHERWISE MAKE DECISIONS OUTSIDE OF THE NORMAL COURSE OF BUSINESS, D) MAKE FINAL DETERMINATIONS OF LONG-TERM POLICY; E) HIRE OF FIRE THE CHIEF EXECUTIVE OFFICER; AND F) AMEND THE ARTICLES OF INCORPORATION OR BYLAWS.
Form 990, Part VI, Line 6 Classes of members or stockholders	NORTON HEALTHCARE, INC. EIN 61-1028725 IS THE SOLE MEMBER OF NORTON HOSPITALS, INC.
Form 990, Part VI, Line 7a Members or stockholders electing members of governing body	THE BOARD OF TRUSTEES OF NORTON HEALTHCARE, INC. APPOINTS THE TRUSTEES OF THE ORGANIZATION.
Form 990, Part VI, Line 7b Decisions requiring approval by members or stockholders	ACCORDING TO THE ARTICLES OF INCORPORATION OF THE ORGANIZATION, NORTON HEALTHCARE, INC., (NORTON) THE SOLE MEMBER, POSSESSES ALL OF THE RIGHTS GRANTED TO A MEMBER PURSUANT TO LAW, INCLUDING THE RIGHT TO ELECT TRUSTEES OR DIRECTORS AND APPROVE AMENDMENTS TO THE ARTICLES OF INCORPORATION OF THE ORGANIZATION. NORTON ALSO POSSESSES THE RIGHT TO REQUIRE THE ORGANIZATION TO (I) PROVIDE CONTRIBUTIONS OF FUNDS OF THE ORGANIZATION TO PAY ALL TO A PORTION OF THE PRINCIPLE OF, INTEREST ON, AND ALL OTHER PAYMENTS TO BECOME DUE AND OWING WITH RESPECT TO ANY AND ALL INDEBTEDNESS INCURRED BY NORTON, AND (II) PROVIDE SECURITY FOR SUCH INDEBTEDNESS.
Form 990, Part VI, Line 11b Review of form 990 by governing body	AT THE OCTOBER 6, 2016 NORTON HEALTHCARE, INC. (NORTON) FINANCE COMMITTEE MEETING AND AT THE OCTOBER 13, 2016 NORTON BOARD OF TRUSTEES MEETING, THE 990S WERE DISCUSSED AND COMMITTEE MEMBERS AND TRUSTEES 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 DIRECTORS PORTAL SITE. NORTON IS THE PARENT OF COMMUNITY MEDICAL ASSOCIATES, INC., NORTON HOSPITALS, INC., NORTON PROPERTIES, INC., NORTON HEALTHCARE FOUNDATION, INC., AND THE CHILDREN'S HOSPITAL FOUNDATION, INC.
Form 990, Part VI, Line 12c Conflict of interest policy	THE ORGANIZATION REGULARLY AND CONSISTENTLY MONITORS AND ENFORCES COMPLIANCE WITH THE CONFLICT OF INTEREST POLICY BY ANNUALLY DISTRIBUTING A QUESTIONNAIRE THAT REQUIRES OFFICERS, TRUSTEES, AND KEY EMPLOYEES TO DISCLOSE INTERESTS THAT MAY GIVE RISE TO CONFLICTS. IF A CONFLICT ARISES, THE POLICY PROVIDES PROCEDURES FOR ADDRESSING CONFLICTS TO ENSURE DECISIONS ARE MADE IN THE BEST INTERST OF THE ORGANIZATION.
Form 990, Part VI, Line 15a Process to establish compensation of top management official	Please see explanation provided for Form 990, Part VI, Line 15b.
Form 990, Part VI, Line 15b Process to establish compensation of other employees	The organization takes all necessary steps to ensure that compensation for all officers, directors and key employees is reasonable and appropriate for the services provided to the organization. The organization provides a total compensation package that is on par with compensation provided by similar organizations and which conforms to the policies and guidelines set out by the Board of Trustees. Norton Healthcare, Inc. (Norton) engages an outside independent compensation consultant, Integrated Healthcare Strategies (IHS), to provide comparability data for Norton'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 2014 for the 2015 compensation review and met in 2015 for the 2016 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 Norton's variable compensation program and determined appropriate awards for performance relative to goals set for the year. After the Committee determined appropriate compensation and benefits for officers and key employees, the Board approved their total compensation. Employment contracts for the CEO, COO, and CFO and key employees are signed, and reviewed as necessary.
Form 990, Part VI, Line 19 Required documents available to the public	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.
Form 990, Part VII, Section A, Line 1a, Column (E) Board Member Stipend Payments	Norton Healthcare, Inc. (Norton) 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 Norton. Norton'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, Norton 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 2015.
Form 990, Part VIII, Line 11d Other Miscellaneous Revenue	Miscellaneous Revenue - Total Revenue: 110992, Related or Exempt Function Revenue: 110992, Unrelated Business Revenue: , Revenue Excluded from Tax Under Sections 512, 513, or 514: ;
Form 990, Part XI, Line 9 Other changes in net assets or fund balances	AFFILIATE TRANSFER - -228301;

For Paperwork Reduction Act Notice, see the Instructions for Form 990 or 990-EZ.

Cat. No. 51056K

Schedule O (Form 990 or 990-EZ) 2015

Additional Data

Software ID:	15000238
Software Version:	2015v2.1

- TIN:

SCHEDULE R
(Form 990)

Department of the Treasury
Internal Revenue Service

Related Organizations and Unrelated Partnerships

Complete if the organization answered "Yes" on Form 990, Part IV, line 33, 34, 35b, 36, or 37.
MediumBullet

Attach to Form 990.
MediumBullet

Information about Schedule R (Form 990) and its instructions is at www.irs.gov/form990.

OMB No. 1545-0047

2015

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" on 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" on Form 990, Part IV, line 34 because it had one or more related tax-exempt organizations during the tax year.

(a) Name, address, and EIN of related organization	(b) Primary activity	(c) Legal domicile (state or foreign country)	(d) Exempt Code section	(e) Public charity status (if section 501(c)(3))	(f) Direct controlling entity	(g) Section 512(b)(13) controlled entity?
(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	Yes	No
(1)NORTON HEALTHCARE INC ACCOUNTING 224 E BROADWAY 5TH FLOOR LOUISVILLE,KY40202 61-1028725	PROVIDE ADMINISTRATIVE AND SUPPORT SERVICES	KY	501(c)(3	Type II	NA		No
(2)COMMUNITY MEDICAL ASSOCIATES INC ACCOUNTING 224 E BROADWAY 5TH FLOOR LOUISVILLE,KY40202 61-1276316	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 61-1028724	MAINTAIN OFFICE AND PARKING FACILITIES	KY	501(c)(3	Type I	NORTON HEALCARE INC		No
(4)THE CHILDREN'S HOSPITAL FOUNDATION INC ACCOUNTING 224 E BROADWAY 5TH FLOOR LOUISVILLE,KY40202 61-6027530	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 31-0914919	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) 2015

Page 2

Part III

Identification of Related Organizations Taxable as a Partnership Complete if the organization answered "Yes" on Form 990, Part IV, line 34 because it had one or more related organizations treated as a partnership during the tax year.

(a) Name, address, and EIN of related organization	(b) Primary activity	(c) Legal domicile (state or foreign country)	(d) Direct controlling entity	(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?
(a) Name, address, and EIN of related organization	(b) Primary activity	(c) Legal domicile (state or foreign country)	(d) Direct controlling entity	(f) Share of total income	(g) Share of end-of-year assets	Yes	No	(i) Code V-UBI amount in box 20 of Schedule K-1 (Form 1065)	Yes	No

Part IV

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

(a) Name, address, and EIN of related organization	(b) Primary activity	(c) Legal domicile (state or foreign country)	(d) Direct controlling entity	(e) Type of entity (C corp, S corp, or trust)	(f) Share of total income	(g) Share of end-of-year assets	(i) Section 512(b)(13) controlled entity?
(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	Yes	No

Schedule R (Form 990) 2015

Page 3

Part V

Transactions With Related Organizations Complete if the organization answered "Yes" on 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

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 .....................

b Gift, grant, or capital contribution to related organization(s) ............................

c Gift, grant, or capital contribution from related organization(s) ............................

Yes

d Loans or loan guarantees to or for related organization(s) ............................

e Loans or loan guarantees by related organization(s) ............................

f Dividends from related organization(s) ............................

g Sale of assets to related organization(s) ............................

h Purchase of assets from related organization(s) ............................

i Exchange of assets with related organization(s) ............................

j Lease of facilities, equipment, or other assets to related organization(s) .......................

k Lease of facilities, equipment, or other assets from related organization(s) ......................

Yes

l Performance of services or membership or fundraising solicitations for related organization(s) .....................

m Performance of services or membership or fundraising solicitations by related organization(s) .................

n Sharing of facilities, equipment, mailing lists, or other assets with related organization(s) ...................

o Sharing of paid employees with related organization(s) ............................

Yes

p Reimbursement paid to related organization(s) for expenses ............................

q Reimbursement paid by related organization(s) for expenses ............................

r Other transfer of cash or property to related organization(s) ............................

Yes

s Other transfer of cash or property from related organization(s) ............................

Yes

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 related organization	(b) Transaction type (a-s)	(c) Amount involved	(d) Method of determining amount involved

Schedule R (Form 990) 2015

Page 4

Part VI

Unrelated Organizations Taxable as a Partnership Complete if the organization answered "Yes" on Form 990, Part IV, line 37.

Provide the following information for each entity taxed as a partnership through which the organization conducted more than five percent of its activities (measured by total assets or gross revenue) that was not a related organization. See instructions regarding exclusion for certain investment partnerships.

(a) Name, address, and EIN of entity	(b) Primary activity	(c) Legal domicile (state or foreign country)	(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?
(a) Name, address, and EIN of entity	(b) Primary activity	(c) Legal domicile (state or foreign country)	Yes	No	(f) Share of total income	(g) Share of end-of-year assets	Yes	No	(i) Code V-UBI amount in box 20 of Schedule K-1 (Form 1065)	Yes	No

Schedule R (Form 990) 2015

Page 5

Part VII

Supplemental Information

Provide additional information for responses to questions on Schedule R (see instructions).

Return Reference	Explanation

Schedule R (Form 990) 2015

Additional Data

Software ID:	15000238
Software Version:	2015v2.1

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
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	21
5	Total number of individuals employed in calendar year 2015 (Part V, line 2a) ......	5	10,019
6	Total number of volunteers (estimate if necessary) .............	6	1,676
7a	Total unrelated business revenue from Part VIII, column (C), line 12 ........	7a	4,851,219
b	Net unrelated business taxable income from Form 990-T, line 34 .........	7b	0

		Prior Year	Current Year
8	Contributions and grants (Part VIII, line 1h) .........	13,583,471	12,790,617
9	Program service revenue (Part VIII, line 2g) .........	1,587,694,864	1,713,698,108
10	Investment income (Part VIII, column (A), lines 3, 4, and 7d ) ....	-2,337,312	80,612
11	Other revenue (Part VIII, column (A), lines 5, 6d, 8c, 9c, 10c, and 11e)	5,693,157	3,508,605
12	Total revenue—add lines 8 through 11 (must equal Part VIII, column (A), line 12)	1,604,634,180	1,730,077,942
13	Grants and similar amounts paid (Part IX, column (A), lines 1–3 )...		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)	555,134,208	604,145,209
16a	Professional fundraising fees (Part IX, column (A), line 11e) .....		0
b	Total fundraising expenses (Part IX, column (D), line 25) 0
17	Other expenses (Part IX, column (A), lines 11a–11d, 11f–24e)....	856,058,218	864,571,485
18	Total expenses. Add lines 13–17 (must equal Part IX, column (A), line 25)	1,411,192,426	1,468,716,694
19	Revenue less expenses. Subtract line 18 from line 12.......	193,441,754	261,361,248
		Beginning of Current Year	End of Year
20	Total assets (Part X, line 16).............	1,440,612,021	1,716,731,667
21	Total liabilities (Part X, line 26).............	105,172,674	120,159,373
22	Net assets or fund balances. Subtract line 21 from line 20.....	1,335,439,347	1,596,572,294

Sign Here

	Signature of officer	Date

	Type or print name and title


4a	(Code: ) (Expenses $ 1,448,839,451 including grants of $ ) (Revenue $ 1,712,020,482 )
	NORTON HOSPITALS, INC. (NHI) WAS FORMED TO: I) 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; II) CONDUCT EDUCATIONAL ACTIVITIES RELATED TO RENDERING CARE TO THE SICK AND INJURED; III) PROMOTE AND CONDUCT SCIENTIFIC RESEARCH RELATED TO THE CARE OF THE SICK AND INJURED. NHI HAS A TOTAL OF 1,837 LICENSED BEDS, NORTON HOSPITAL - 605 BEDS; KOSAIR CHILDREN'S HOSPITAL - 300 BEDS; NORTON AUDUBON HOSPITAL - 432 BEDS; NORTON WOMEN'S AND KOSAIR CHILDREN'S HOSPITAL - 373 BEDS; AND NORTON BROWNSBORO HOSPITAL - 127 BEDS. THESE HOSPITALS OPERATE TWENTY-FOUR (24) HOURS A DAY, SEVEN (7) DAYS A WEEK. IN 2015, NHI'S HOSPITALS AND DIAGNOSTIC CENTERS SERVED 67,549 INPATIENTS, 480,725 OUTPATIENTS, AND 242,036 EMERGENCY ROOM VISITS. IN ADDITION, NHI'S OPERATING ROOMS CARED FOR 19,950 INPATIENT SURGICAL PATIENTS AND 33,599 OUTPATIENT SURGICAL PATIENTS. ADDITIONALLY, 8,335 DELIVERIES WERE PERFORMED AT NHI BIRTHING CENTERS. UNDER ITS CHARITY CARE PROGRAM, NHI PROVIDED FREE CARE TO 19,005 PATIENTS, AT A COST OF $8.1 MILLION. ALSO, NHI 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, 12,587 PATIENTS were provided CARE AT DISCOUNTED RATES. OTHER CONTRIBUTIONS TO THE COMMUNITY WERE THE UNPAID COST OF MEDICAID SERVICES OF $74.8 MILLION AND EDUCATIONAL SUPPORT OF $39.0 MILLION, PRIMARILY TO THE UNIVERSITY OF LOUISVILLE'S SCHOOL OF MEDICINE. ALSO, COMMUNITY HEALTH IMPROVEMENT SERVICES TOTALED $10.8 MILLION, CONTRIBUTIONS TO COMMUNITY GROUPS WERE $1.8 MILLION, PASTORAL CARE AND COUNSELING PROGRAMS WERE $1.8 MILLION, THE KENTUCKY POISON CONTROL CENTER WAS $2.0 MILLION, AND THE CHILD GUIDANCE AND ADVOCACY PROGRAM WAS $877,000.

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 expenses1,448,839,451

1b	Sub-Total................
c	Total from continuation sheets to Part VII, Section A....
d	Total (add lines 1b and 1c)...........	8,810,874	5,797,975	3,286,560

1a	Federated campaigns..		1a
b	Membership dues..		1b
c	Fundraising events..		1c
d	Related organizations		1d	12,790,617
e	Government grants (contributions)		1e

f	All other contributions, gifts, grants, and similar amounts not included above		1f

g	Noncash contributions included in lines 1a-1f:$
h Total.Add lines 1a-1f.......		12,790,617

			Business Code
2a	Net Patient Revenue	621110	1,712,203,011	1,707,516,475	4,686,536
b	Healthcare Education	611710	1,495,097	1,495,097
c
d
e
f	All other program service revenue.			0	0	0	0
g Total.Add lines 2a–2f.....			1,713,698,108

3 Investment income (including dividends, interest, and othersimilar amounts) ..........
4 Income from investment of tax-exempt bond proceeds
5 Royalties...........
		(ii) Personal	(i) Real
6a	Gross rents		1,595,180
b	Less: rental expenses		1,260,168
c	Rental income or (loss)	0	335,012
d	Net rental income or (loss)......			335,012			335,012
		(ii) Other	(i) Securities
7a	Gross amount from sales of assets other than inventory	101,334
b	Less: cost or other basis and sales expenses	20,722
c	Gain or (loss)	80,612	0
d	Net gain or (loss).....			80,612			80,612
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..
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..
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..
Business Code			Miscellaneous Revenue
11a	Purchasing Co-Op Inc		561499	1,744,465	1,579,782	164,683
b	Parking Income		812930	1,164,141	1,164,141
c	Capitation Revenue		621990	153,995	153,995
d	All other revenue ....			110,992	110,992	0	0
e	Total. Add lines 11a–11d ......			3,173,593
12	Total revenue. See Instructions......			1,730,077,942	1,712,020,482	4,851,219	415,624

1	Grants and other assistance to domestic organizations and domestic governments. See Part IV, line 21
2	Grants and other assistance to individuals in the United States. See Part IV, line 22
3	Grants and other assistance to governments, organizations, and individuals outside the United States. See Part IV, lines 15 and 16
4	Benefits paid to or for members
5	Compensation of current officers, directors, trustees, and key employees ....	3,720,313	3,720,313
6	Compensation not included above, to disqualified persons (as defined under section 4958(f)(1)) and persons described in section 4958(c)(3)(B) ....	271,757	271,757
7	Other salaries and wages	459,061,242	459,061,242
8	Pension plan accruals and contributions (include section 401(k) and 403(b) employer contributions) ....	39,602,205	39,602,205
9	Other employee benefits .......	69,924,935	69,924,935
10	Payroll taxes ...........	31,564,757	31,564,757
11	Fees for services (non-employees):
a	Management ......
b	Legal .........	8,964,226	8,964,226
c	Accounting ...........
d	Lobbying ...........
e	Professional fundraising services. See Part IV, line 17
f	Investment management fees ......
g	Other (If line 11g amount exceeds 10% of line 25, column (A) amount, list line 11g expenses on Schedule O)	138,914,198	138,914,198	0	0
12	Advertising and promotion ....
13	Office expenses .......	7,408,304	7,408,304
14	Information technology ......
15	Royalties ..
16	Occupancy ...........	21,371,855	21,371,855
17	Travel ............	776,670	776,670
18	Payments of travel or entertainment expenses for any federal, state, or local public officials .
19	Conferences, conventions, and meetings ....
20	Interest ...........	36,634,615	36,634,615
21	Payments to affiliates .......
22	Depreciation, depletion, and amortization ..	57,172,242	57,172,242
23	Insurance ...	5,911,238	5,911,238
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	356,549,699	356,549,699
b	Allocated Support	152,901,867	133,024,624	19,877,243
c	Bad Debt	54,315,739	54,315,739
d	Provider Tax	20,129,732	20,129,732
e	All other expenses	3,521,100	3,521,100	0	0
25	Total functional expenses. Add lines 1 through 24e	1,468,716,694	1,448,839,451	19,877,243	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 if following SOP 98-2 (ASC 958-720).

1	Cash–non-interest-bearing ........			33,384	1	41,394
2	Savings and temporary cash investments .........				2
3	Pledges and grants receivable, net ......				3
4	Accounts receivable, net .............			192,697,476	4	218,135,155
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 ........			47,217,810	8	45,577,954
9	Prepaid expenses and deferred charges ......			1,345,613	9	1,666,250
10a	Land, buildings, and equipment: cost or other basis. Complete Part VI of Schedule D	10a	1,372,880,312
b	Less: accumulated depreciation	10b	776,713,802	616,350,881	10c	596,166,510
11	Investments—publicly traded securities .				11
12	Investments—other securities. See Part IV, line 11 .....			0	12
13	Investments—program-related. See Part IV, line 11 ..			0	13
14	Intangible assets ...............			7,496,448	14	7,445,984
15	Other assets. See Part IV, line 11 ...........			575,470,409	15	847,698,420
16	Total assets. Add lines 1 through 15 (must equal line 34)...			1,440,612,021	16	1,716,731,667

17	Accounts payable and accrued expenses .....	81,622,639	17	86,831,831
18	Grants payable ...		18
19	Deferred revenue .........		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
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	23,550,035	25	33,327,542
26	Total liabilities. Add lines 17 through 25..	105,172,674	26	120,159,373

	Organizations that follow SFAS 117 (ASC 958), check here and complete lines 27 through 29, and lines 33 and 34.
27	Unrestricted net assets	1,332,557,222	27	1,591,806,040
28	Temporarily restricted net assets ...........	2,882,125	28	4,766,254
29	Permanently restricted net assets		29
	Organizations that do not follow SFAS 117 (ASC 958), check here 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 ...........	1,335,439,347	33	1,596,572,294
34	Total liabilities and net assets/fund balances ........	1,440,612,021	34	1,716,731,667