2024-11-12T07:36:16+00:00 2023-12-31 350921680 CROWE LLP 9600 Brownsboro Road Suite 400 Louisville KY 402413902 990 2023-01-01 611028724 NORTON PROPERTIES INC NORT 5026298263 ACCOUNTING 224 E BROADWAY 5TH FLOOR LOUISVILLE KY 40202 Adam Kempf CFO 2024-11-12 true Kim Scifres P01316095 5023263996 2024-11-12 2023 2024-10-15 13:58:12Z RUSSELL F COX 4967 US HIGHWAY 42 SUITE 100 LOUISVILLE KY 40222 73991014 false X WWW.NORTONHEALTHCARE.COM X 1981 KY Norton Properties, Inc. (Properties) owns properties that are used to support the charitable health care purposes of Norton Healthcare, Inc. (NHC), primarily of Norton Hospitals, Inc. (Hospitals), Community Medical Associates, Inc. and NHC. Properties owns medical office buildings that are leased by physicians on the medical staff of Hospitals. It also leases office space and parking facilities for the convenience of NHC employees, physicians of the medical staff of Hospitals, and guests. 17 16 100 6 0 0 696 0 61971592 65721049 -741242 256160 14076 3582 61245122 65980791 0 0 1955931 2488993 0 0 71907250 75501231 73863181 77990224 -12618059 -12009433 367229995 399852945 435483193 480115576 -68253198 -80262631 Norton Properties, Inc. (Properties) owns properties that are used to support the charitable health care purposes of Norton Healthcare, Inc. (NHC), primarily of Norton Hospitals, Inc. (Hospitals), Community Medical Associates, Inc. and NHC. Properties owns medical office buildings that are leased by physicians on the medical staff of Hospitals. It also leases office space and parking facilities for the convenience of NHC employees, physicians of the medical staff of Hospitals, and guests. false false 76887563 65724631 Building and Parking Rental - Maintain office and parking facilities near the Norton Healthcare, Inc.; Norton Hospitals, Inc.; and Community Medical Associates, Inc., hospital, diagnostic, and practice locations for use by physicians, patients, patients' families and guests, and hospital employees. 76887563 true false false false false false false false false true false false true true false false true false false false false false false false false false false false true false false false false false false false false false false false false false true false false false true X 89 0 true 100 true false false false false false false false false false false false false false false X 17 16 true false false false true true true true true false false true true true true true true true true false X Helena Schulz 5026298263 Accounting 224 E BROADWAY 5TH FL LOUISVILLE KY 402022025 Russell F Cox President & CEO/Trustee 1.0 49.0 X X 0 3068539 417106 Barry Pennybaker Trustee 0.5 4.0 X 0 2000 0 Craig D Grant Vice Chair 0.5 5.0 X 0 2000 0 Donald H Robinson Trustee 0.5 7.0 X 0 0 0 Edie Nixon Chair 0.5 16.0 X 0 2000 0 Erwin Roberts Trustee (PARTIAL YEAR) 0.5 3.0 X 0 0 0 G Hunt Rounsavall Sr Trustee 0.5 7.0 X 0 0 0 Gail Lyttle Trustee (PARTIAL YEAR) 0.5 4.0 X 0 2000 0 Gary L Stewart Trustee 0.5 7.0 X 0 2000 0 Gregory E Mayes Trustee 0.5 6.0 X 0 2000 0 James L Sublett MD Trustee 0.5 4.0 X 0 2000 0 Joe Craig Trustee 0.5 5.0 X 0 2000 0 Judge Denise Clayton Trustee 0.5 4.0 X 0 2000 0 Lee K Garlove Trustee 0.5 4.0 X 0 2000 0 Maria Hampton Trustee 0.5 4.0 X 0 2000 0 Maria L Bouvette Trustee 0.5 4.0 X 0 2000 0 Martha K Heyburn MD Trustee (PARTIAL YEAR) 0.5 4.0 X 0 2000 0 Rev William J Schultz Trustee (PARTIAL YEAR) 0.5 3.0 X 0 0 0 Richard R Ivey Trustee 0.5 4.0 X 0 2000 0 Richard S Wolf MD Chair Emeritus (partial year) 0.5 3.0 X 0 0 0 Rita Hudson Shourds EdD Trustee (partial year) 0.5 3.0 X 0 0 0 Ronald Lehocky MD Trustee 0.5 6.0 X 0 2000 0 Sue Davis EdD RN Trustee 0.5 6.0 X 0 2000 0 Adam Kempf Sr VP, CFO/Treasurer 1.0 49.0 X 0 1141705 223063 Michael W Gough Exec VP and COO 1.0 49.0 X 0 1823008 288832 Robert B Azar Sr VP Chief Legal Officer/Secretary 1.0 49.0 X 0 1021584 169876 Mark Spivey Dir, Properties 40.0 0 X 132484 0 46672 Scott L Stanton Dir, Property Planning & Mgmt 40.0 0 X 153501 0 38777 Steven Morse Dir, Safety and Security 40.0 0 X 121748 0 28586 407733 7086836 1212912 3 false true false Abel Construction Co Inc 2401 Stanley Gault Pkwy Louisville KY 40223 Electrical Contractor 10556690 National Environmental COntractors 2660 Technology Dr Louisville KY 402996424 Asbestos and Lead Abatement Services 1131523 Messer Construction Co 9710 Bunsen Parkway Louisville KY 40291 Construction 808845 Integrated Service Solutions PO Box 221018 Louisville KY 40252 Cleaning Services 649348 Stengel Hill Architecture Inc 613 West Main St Louisville KY 40202 Cleaning Services 420958 26 0 RENTAL INCOME 531120 65287337 65287337 PARKING INCOME 812930 433712 433712 0 0 0 0 65721049 0 0 8266383 8010223 0 256160 256160 256160 MISCELLANEOUS INCOME 531390 3582 3582 0 0 0 0 3582 65980791 65724631 0 256160 1754303 1589578 164725 231395 209667 21728 213440 182082 31358 289855 256257 33598 7450 7450 2226196 2164811 61385 0 197990 196824 1166 47777705 47777705 587 220 367 3391323 3391323 13446471 13446471 374880 374880 ALLOCATED SUPPORT 5186345 4408393 777952 REPAIRS AND MAINTENANCE 2360046 2350321 9725 OTHER EXPENSE 510225 509568 657 COURIER EXPENSES 22013 22013 0 0 0 0 77990224 76887563 1102661 0 200 200 0 0 0 0 172120 308657 235033879 58463327 144127946 176570552 0 0 222929729 222973536 367229995 399852945 2457806 2785530 0 0 433025387 477330046 435483193 480115576 X -68253198 -80262631 -68253198 -80262631 367229995 399852945 -12009433 0 X false true X true false X X 1 NORTON HOSPITALS INC 610703799 3 true 0 77990224 1 0 77990224 true false false false false false false false false false false false false false false true false Schedule A, Part I, Line 12g(vi) Type of Other Support Support includes various occupancy related expenses utilized by Norton Hospitals, Inc. 31245394 31245394 175536822 48669305 126867517 10733322 8986296 1747026 17518341 807726 16710615 176570552 RIGHT OF USE ASSETS 220305160 Misc AR 2668376 222973536 CAPITALIZED LEASE LIABILITIES 237453612 PAYABLE TO AFFILIATE 235346852 ASSET RETIREMENT OBLIGATION 3479582 DEFERRED PURCHASE PRICE 1050000 477330046 false true false false false false false true false Russell F Cox President & CEO/Trustee 0 1548059 0 816092 0 704388 0 378897 0 38209 0 3485645 0 117699 Robert B Azar Sr VP Chief Legal Officer/Secretary 0 630680 0 266833 0 124071 0 150278 0 19598 0 1191460 0 0 Michael W Gough Exec VP and COO 0 1046012 0 510862 0 266134 0 260502 0 28330 0 2111840 0 0 Adam Kempf Sr VP, CFO/Treasurer 0 755209 0 281470 0 105026 0 175860 0 47203 0 1364768 0 63188 Steven Morse Dir, Safety and Security 114951 0 4268 0 2529 0 0 0 28586 0 150334 0 0 0 Mark Spivey Dir, Properties 113575 0 13607 0 5302 0 15624 0 31048 0 179156 0 0 0 Scott L Stanton Dir, Property Planning & Mgmt 118267 0 10465 0 24769 0 9933 0 28844 0 192278 0 0 0 Schedule J, Part I, Line 3 Arrangement used to establish the top management official's compensation NORTON HEALTHCARE INC (NHC) EIN 61-1028725 IS THE PARENT ORGANIZATION FOR NORTON PROPERTIES, INC. AND THEREFORE ESTABLISHES COMPENSATION FOR THE CEO, OFFICERS AND KEY EMPLOYEES THROUGH ENGAGING WITH THE EXECUTIVE COMMITTEE OF NHC; AN INDEPENDENT COMPENSATION CONSULTANT; REVIEW OF OTHER ORGANIZATION'S FORM 990; 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 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-PLUS BENEFIT PLAN, DEFINED BENEFIT AND DEFINED CONTRIBUTION RESTORATION PLANS, AND THE PHYSICIAN DEFERRED PLAN. THE "PAY CREDIT" OUTLINED BELOW REPRESENTS A REASONABLE ESTIMATE OF THE ANNUAL INCREASE IN ACTUARIAL VALUE OF THE PLANS; AND THEREFORE, REPRESENTS THE ORGANIZATION'S CONTRIBUTION TO THE VALUE OF THE BENEFITS. NAME - PAY CREDIT Russell F. Cox - $345,765 Michael W. Gough - $228,527 Robert Azar - $127,409 Adam Kempf - $153,943 THE "PAYMENT RECEIVED" OUTLINED BELOW REPRESENTS CASH PAYMENTS THAT THE EMPLOYEE RECEIVED DURING 2023 AND CAN BE COMPRISED OF CURRENT AND OR PRIOR YEARS EMPLOYEE AND EMPLOYER CONTRIBUTIONS. NAME - PAYMENT RECEIVED Russell F. Cox - $283,857 Michael W. Gough - $114,222 Robert Azar - $68,880 Adam Kempf - $63,188 Schedule J, Part I, Line 7 Non-fixed payments In 2023, Norton Healthcare, Inc. (NHC) 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 NHC'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. Form 990, Part V, Line 2a EMPLOYEES REPORTED ON FORM W-3 NORTON HEALTHCARE, INC. (NHC) EIN 61-1028725 IS THE COMMON PAYING AGENT FOR NORTON PROPERTIES, INC. (PROPERTIES) AND THEREFORE, ALL APPLICABLE IRS TAX COMPLIANCE FILINGS ARE REPORTED BY NHC ON BEHALF OF PROPERTIES. PROPERTIES HAS APPROXIMATELY 100 EMPLOYEES. Form 990, Part V, Line 1a VENDORS REPORTED ON FORM 1096 NORTON HEALTHCARE, INC. (NHC) EIN 61-1028725 IS THE COMMON PAYING AGENT FOR NORTON PROPERTIES, INC. (PROPERTIES) AND THEREFORE, ALL VENDORS, INCLUDING INDEPENDENT CONTRACTORS, ARE PAID AND REPORTED BY NHC ON BEHALF OF PROPERTIES FOR PURPOSES OF PART V, LINE 1. THE NUMBER OF 1099S REPORTED AND FILED FOR 2023 BY NHC FOR PROPERTIES WAS 89. PROPERTIES HAS 26 INDEPENDENT CONTRACTORS EXCEEDING $100,000 FOR 2023. 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 or fire the Chief Executive Officer; and f) amend the Articles of Incorporation or Bylaws. Form 990, Part VI, Line 2 Family/business relationships amongst interested persons Russell F. Cox, Michael W. Gough, Robert B. Azar (Officers, Norton Enterprise, Inc.) - Business relationship Form 990, Part VI, Line 6 Classes of members or stockholders Norton Healthcare, Inc. (EIN 61-1028725) is the sole member of Norton Properties, 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. (NHC), 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. NHC also possesses the right to require the organization to (i) provide contributions of funds of the organization to pay all or a portion of the principal of, interest on, and all other payments to become due and owing with respect to any and all indebtedness by NHC, and (ii) provide security for such indebtedness. Form 990, Part VI, Line 11b Review of form 990 by governing body At the October 3, 2024 Norton Healthcare, Inc. (NHC) Finance Committee meeting and at the October 17, 2024 NHC 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, prior to the filing with the IRS. NHC is the parent of Community Medical Associates, Inc., Norton Hospitals, Inc., Norton Properties, Inc., Norton Healthcare Foundation, Inc., The Children's Hospital Foundation, Inc., Norton King's Daughters' Health, Inc., and Norton Healthcare-Indiana, 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 INTEREST OF THE ORGANIZATION. Form 990, Part VI, Line 15a Process to establish compensation of top management official The top management official is paid by a related organization. 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. (NHC) engages an outside independent compensation consultant, Gallagher, to provide comparability data, including review of other health systems and hospital organizations that have filed Form 990s. For NHC'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 and similar organizations. Gallagher consultants presented and discussed this comparability data in 2022 for the 2023 compensation review and met in 2023 for the 2024 compensation review with the 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 NHC'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. Form 990, Part VI, Line 19 Required documents available to the public Consolidated financial statements are available here: HTTPS://NortonHealthcare.com/About-Us/Financial-Information/. 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. (NHC) and Affiliates (Norton Hospitals, Inc., Community Medical Associates, Inc., Norton Properties, Inc., Norton Healthcare Foundation, Inc., The Children's Hospital Foundation, Inc., Norton King's Daughters' Health, Inc., and Norton Healthcare-Indiana, Inc.) encourages and facilitates Board member attendance at educational programs and conferences on subjects relevant to NHC. NHC'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, NHC provides a Form 1099 to any Trustee that receives a stipend. These amounts have been reported in Part VII on the Form 990 as reportable compensation to the Trustee receiving stipends in 2023. NORTON HEALTHCARE INC ACCOUNTING 224 E BROADWAY 5TH FLOOR LOUISVILLE KY 40202 611028725 PROVIDE ADMINISTRATIVE AND SUPPORT SERVICES KY 501(c)(3) Type II NA false NORTON HOSPITALS INC ACCOUNTING 224 E BROADWAY 5TH FLOOR LOUISVILLE KY 40202 610703799 PROVIDE HOSPITAL SERVICES KY 501(c)(3) 3 NORTON HEALTHCARE INC false COMMUNITY MEDICAL ASSOCIATES INC ACCOUNTING 224 E BROADWAY 5TH FLOOR LOUISVILLE KY 40202 611276316 OPERATES A NETWORK OF PHYSICIAN PRACTICES KY 501(c)(3) 10 NORTON HEALTHCARE INC false THE CHILDREN'S HOSPITAL FOUNDATION INC ACCOUNTING 224 E BROADWAY 5TH FLOOR LOUISVILLE KY 40202 616027530 GENERATE FUNDS TO SUPPORT PROGRAMS AND SERVICES KY 501(c)(3) 7 NORTON HEALTHCARE INC false NORTON HEALTHCARE FOUNDATION INC ACCOUNTING 224 E BROADWAY 5TH FLOOR LOUISVILLE KY 40202 310914919 GENERATE FUNDS TO SUPPORT PROGRAMS AND SERVICES KY 501(c)(3) 7 NORTON HEALTHCARE INC false NORTON HEALTHCARE - INDIANA INC ACCOUNTING 224 E BROADWAY 5TH FLOOR LOUISVILLE KY 40202 850513259 OPERATE HOSPITAL AND OTHER HEALTHCARE FACILITIES IN 501(c)(3) 10 NORTON HEALTHCARE INC false Norton King's Daughters' Health Inc Accounting 224 E Broadway 5th Floor Louisville KY 40202 350895832 Provide hospital services IN 501(c)(3) 3 Norton Healthcare - Indiana Inc false Norton Enterprises Inc 224 E Broadway 5th Floor Louisville KY 402022025 611054301 Invests in Partnerships that provide medical services KY Norton Healthcare Inc C Corporation false false false false false false false false false false true true false false false true false false true true