2014-07-15T09:49:07-05:00 2013-08-31 273858252 DEAN DORTON ALLEN FORD PLLC 106 W VINE STREET SUITE 600 LEXINGTON KY 40507 990 2012-09-01 800639940 KENTUCKY EASTER SEAL SOCIETY INC GROUP RETURN KENT 8592545701 2050 VERSAILLES ROAD LEXINGTON KY 40504 OFFICER 8592545701 2014-07-09 1 LEIGH MCKEE P00169845 8592552341 2012 2015-11-30 17:44:51Z GARY PAYNE 2050 VERSAILLES ROAD LEXINGTON KY 40504 72785936 1 1 5231 X WWW.CARDINALHILL.ORG X DEFINING EXCELLENCE IN PHYSICAL REHABILITATION-GIVING HOPE AND ENHANCING OUTCOMES FOR PATIENTS AND FAMILIES. 11 10 965 220 158308 0 1995450 2946510 60194862 56480556 943653 1325966 48484 139298 63182449 60892330 0 0 0 0 44720039 39510313 0 0 356527 22634115 22246276 67354154 61756589 -4171705 -864259 98602110 107522476 44184863 35314728 54417247 72207748 X THE KENTUCKY EASTER SEAL SOCIETY WAS FOUNDED IN 1923 WITH THE MISSION OF HELPING PEOPLE WITH DISABILITIES ACHIEVE MAXIMUM INDEPENDENCE. IN ACCORDANCE WITH THIS GOAL, THE SOCIETY PROVIDES PROGRAMS AND SERVICES AT SITES THROUGHOUT THE STATE. PROGRAMS INCLUDE PHYSICAL, OCCUPATIONAL AND SPEECH THERAPY, REHABILITATION, VOCATIONAL EDUCATION AND TRAINING, CHILDCARE AND ADULT DAY CARE PROGRAMS, AND A VARIETY OF OTHER PROGRAMS. TO THE EXTENT FINANCIALLY FEASIBLE, THE SOCIETY ACCEPTS PATIENTS WHO ARE UNABLE TO PAY. FOR THE FISCAL YEAR ENDED 8/31/13, CHARITY CARE WAS $1,985,943. 0 0 51222033 56322248 CARDINAL HILL REHABILITATION HOSPITALLEXINGTON, KYCARDINAL HILL BEGAN AS A HOSPITAL FOR CHILDREN WITH POLIO IN 1950. SINCE THAT TIME, IT HAS EVOLVED INTO ONE OF THE PREMIER POST ACUTE PROVIDERS OF PHYSICAL REHABILITATION SERVICES WITH 108 INPATIENT BEDS. TODAY, THE HOSPITAL SPECIALIZES IN THE TREATMENT OF SPINAL CORD INJURY, BRAIN INJURY, STROKE, ORTHOPEDIC AND NEUROLOGICAL CONDITIONS, AMPUTATION AND OTHER DISABLING OR TRAUMATIC CONDITIONS. CARDINAL HILL SERVES MORE THAN 9,000 CHILDREN AND ADULTS ANNUALLY FROM ALL OVER KENTUCKY AND NATIONWIDE. CARDINAL HILL PROVIDES PHYSICAL REHABILITATION FOR PEOPLE NEEDING INPATIENT, OUTPATIENT AND HOME HEALTH CARE SERVICES. CARDINAL HILL ALSO PROVIDES PEDIATRIC SERVICES FOR CHILDREN FROM BIRTH THROUGH ADULTHOOD BY OFFERING PRESCHOOL AND CHILD CARE SERVICES, AND THERAPY FOR ANY DISABLING AND/OR TRAUMATIC CONDITION.THE CARDINAL HILL HEALTHCARE SYSTEM IS A 501(C)3 ORGANIZATION GOVERNED BY THE KENTUCKY EASTER SEAL SOCIETY, INC., AN AFFILIATE OF NATIONAL EASTER SEALS SOCIETY. SERVICES INCLUDE INPATIENT HOSPITAL CARE FOR PHYSICAL REHABILITATION NEEDS AND MEDICALLY COMPLEX CLIENTS. IN ADDITION TO THE THREE INPATIENT PROGRAMS, OUTPATIENT THERAPY, PRESCHOOL, CHILDCARE, ADULT DAY HEALTH, AND RECREATIONAL PROGRAMS ARE ALSO AVAILABLE. THE HEALTHCARE SYSTEM IS ONE OF THE COMMONWEALTH'S LARGEST PROVIDERS OF PHYSICAL REHABILITATION SERVICES, WITH CORPORATE HEADQUARTERS LOCATED IN LEXINGTON, KY.CARDINAL HILL HOME CARELEXINGTON, KY CARDINAL HILL HOME CARE BEGAN OFFERING A FULL ARRAY OF QUALITY HOME HEALTH SERVICES IN 2004 WITH AN EMPHASIS ON THE INTENSE THERAPY FOR WHICH CARDINAL HILL HOSPITAL IS KNOWN. CARDINAL HILL HOME CARE SERVES PATIENTS IN THE FOLLOWING CENTRAL KENTUCKY COUNTIES: FAYETTE, FRANKLIN, JESSAMINE, MADISON AND WOODFORD. 51222033 1 1 0 1 0 0 0 0 0 1 1 0 0 1 1 1 0 1 0 0 0 0 0 0 1 0 1 1 0 0 1 1 0 0 0 0 0 0 0 0 0 1 1 0 0 0 0 0 0 0 0 1 97 0 1 965 1 1 1 0 0 0 0 1 1 0 0 0 0 X 11 10 0 0 1 0 0 0 0 1 1 0 1 1 1 1 1 1 1 1 1 1 0 KY X MARTY LAUTNER 8592545701 2050 VERSAILLES ROAD LEXINGTON KY 40504 JIMMY NASH 1.00 X 0 0 0 MIKE KANAREK 1.00 X 0 0 0 CHARLOTTE LUNDERGAN 1.00 X 0 0 0 GLENN NORVELL 1.00 X 0 0 0 RICHARD STURGILL 1.00 X 0 0 0 TED RENAKER 1.00 X 0 0 0 GREGG THORNTON 1.00 X 0 0 0 J HAGAN CODELL 1.00 X 0 0 0 ROGER DALTON 1.00 X 0 0 0 KEN HILER 1.00 X 0 0 0 PAUL HONEYCUTT 1.00 X 0 0 0 ELIZABETH MONARCH 40.00 X 222240 0 23765 KATHLEEN FITZGERALD 40.00 X 124426 0 10756 MARTIN LAUTNER 40.00 X 164245 0 18338 GARY PAYNE 40.00 X 329689 0 3469 MAUREEN COUTURE 40.00 X 37892 0 2563 WILLIAM DUTTON 40.00 X 110434 0 16727 SCOTT FERGUSON 40.00 X 113385 0 11562 STEVEN KINKAID 40.00 X 113947 0 16243 KERRY COONEY 40.00 X 112004 0 14839 MARY KING 40.00 X 119662 0 6975 KERRY GILLIHAN 0.00 X 50000 0 0 1497924 0 125237 9 1 1 0 CROTHALL HEALTHCARE INC 13028 COLLECTION CENTER DRIVE CHICAGO IL 60693 HOUSEKEEPING 1301434 CERNER CORPORATION PO BOX 412702 KANSAS CITY MO 64141 SOFTWARE SERVICES 981544 THE COMPETITIVE EDGE II LLC 3716 WILLOW RIDGE ROAD LEXINGTON KY 40514 TEMP STAFFING SERVICE 525602 SDGBLUE LLC 501 DARBY CREEK ROAD SUITE 9 LEXINGTON KY 40509 COMPUTER TECH SERVICES 308343 UNIVERSITY OF KENTUCKY GRADUATE MEDICAL 800 ROSE STREET LEXINGTON KY 40536 RESIDENTS STAFFING 284846 10 146448 138631 2661431 71215 2946510 PROGRAM SERVICE FEES 623000 55945437 55945437 CHILDCARE FACILITY REVENUE 624410 535119 376811 158308 56480556 480909 480909 164001 334124 -170123 -170123 -170123 12269262 11424205 845057 845057 845057 72356 146448 106541 -34185 -34185 22340 28736 -6396 -6396 CAFETERIA 722210 262964 262964 RECORD TRANSCRIPTION 561000 56123 56123 MISCELLANEOUS 900009 30915 30915 350002 60892330 56322248 158308 1465264 X 871392 871392 31461364 28339157 2926296 195911 822607 738305 79296 5006 3967518 3512560 431139 23819 2387432 2090308 282393 14731 179075 179075 9147 9147 6701839 3796274 2895170 10395 6191118 4768752 1357791 64575 842938 827285 10038 5615 2032758 1719353 301421 11984 4255681 3545169 686021 24491 PROVIDER TAX 1021462 1021462 BAD DEBT EXPENSE 529310 529310 RESIDENCY PROGRAM 262883 262883 CORPORATE EXP ALLOCATED 102378 102378 117687 71215 46472 61756589 51222033 10178029 356527 -1250170 8266603 869837 10689787 450524 547295 703654 683898 98177827 35119275 67505147 63058552 24499994 18547339 5823124 5729002 98602110 107522476 -4767195 -11154344 481777 160967 41598657 38376471 3633514 4365014 3238110 3566620 44184863 35314728 X 44420621 60394916 5232869 7049075 4763757 4763757 54417247 72207748 98602110 107522476 X -864259 2237996 16416764 X X 0 1 X 1 0 X 2091874 1574574 1704130 1995450 2914580 10280608 2091874 1574574 1704130 1995450 2914580 10280608 2011935 8268673 1085298 727519 583667 601218 644910 3642612 13923220 310409826 0.59390 0.61700 X RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED X 9147 0 9147 61747441 61756588 1000000 250000 0 0 1000000 1000000 1000000 1000000 4000000 6000000 43552 19105 8426 9147 80230 250000 250000 250000 250000 1000000 1500000 7552 8262 8426 9147 33387 24957384 1823554 2457286 10159051 19079173 29158036 100121 1743226 6043999 24957384 31888635 102968 4735861 7569428 29158036 37115198 195951 1493002 6915516 31888635 44937704 496107 -4803481 3515132 37115198 0.59460 0.40540 1 0 306453 306453 72778071 20736088 52041983 25093303 14383187 10710116 63058552 OTHER ASSETS 1019705 ASSETS HELD IN TRUST BY OTHERS 2964297 LICENSING FEES 1745000 5729002 ESTIMATED MEDICARE-MEDICAID COST REPORT SETTLEMENT 3379052 ACCRUED BENEFIT PLAN LIABILITY 177568 BUILDING PLEDGE 10000 3566620 X DESCRIPTION OF INTENDED USE OF ENDOWMENT FUNDS: PART V, LINE 4: ENDOWMENT FUNDS SUPPORT THE MISSION OF THE KENTUCKY EASTER SEAL SOCIETY, PROVIDING FACILITIES AND QUALITY CARE TO PATIENTS AND CLIENTS. ENDOWMENT FUNDS REPRESENT THE ASSETS HELD IN TRUST BY OTHERS AND RESTRICTIONS PLACED BY DONORS WITH THE GIFT. DESCRIPTION OF UNCERTAIN TAX POSITIONS UNDER FIN 48: PART X, LINE 2: THE SOCIETY HAS ADOPTED THE PROVISIONS OF GAAP RELATING TO UNCERTAINTY IN INCOME TAXES. THE ASSESSMENT INCLUDES EVALUATING THE TAX POSITIONS TAKEN ON ALL INCOME TAX RETURNS THAT REMAIN OPEN TO EXAMINATION BY THE RESPECTIVE TAXING AUTHORITIES (RETURNS FILED AFTER 2009). THE SOCIETY DOES NOT BELIEVE THAT THERE ARE ANY UNCERTAIN TAX POSITIONS ON THOSE RETURNS THAT SHOULD BE REFLECTED IN THE FINANCIAL STATEMENTS. KENTUCKY BASH 114279 96174 18105 22549 27800 3000 8537 ROUNDBALL BASH 54498 35897 18601 1000 16535 1530 5401 2 50027 14377 35650 4631 6800 7283 500 975 218804 146448 72356 5631 45884 35083 5030 14913 106541 -34185 1 1 X 1 X 1 X 1 1 1 0 1 1 2181854 163289 2018565 0.03300 4872667 4691942 180725 0.00300 7054521 4855231 2199290 0.03600 93026 4122 88904 0.00150 1167976 130596 1037380 0.01690 63660 63660 0.00100 59966 59966 0.00100 1384628 134718 1249910 0.02040 8439149 4989949 3449200 0.05640 59375 59375 0.00100 56501 56501 0.00090 10581 10581 0.00020 905093 905093 0.01480 1031550 1031550 0.01690 1 257771 0 21930750 17599872 4330878 X 1 1 1 1 CARDINAL HILL REHABILITATION HOSPITAL

2050 VERSAILLES ROAD LEXINGTON KY 40504

X X X INPATIENT REHAB FACILITY CARDINAL HILL REHABILITATION HOSPITAL 1 1 X X X X X X X X 12 1 0 1 X X X X X X X X X X X 1 0 1 1 100.000000000000 1 200.000000000000 1 X X X 1 1 X 1 X 1 X X X X 0 X X 0 0 PART I, LINE 7, COLUMN (F): THE BAD DEBT EXPENSE INCLUDED ON FORM 990, PART IX, LINE 25, COLUMN (A), BUT SUBTRACTED FOR PURPOSES OF CALCULATING THE PERCENTAGE IN THIS COLUMN IS $ 529310. PART II: ALL OF KESS' COMMUNITY BUILDING ACTIVITIES PROMOTE HEALTH BY ENABLING INDIVIDUALS TO REACH THEIR HIGHEST POTENTIAL FOR PHYSICAL, EMOTIONAL AND MENTAL WELL-BEING. THE MOST SIGNIFICANT COMMUNITY BUILDING ACTIVITY IS THE AMPUTEE WALKING SCHOOL. THE CLINIC INTRODUCES TREATMENT APPROACHES FOR IMPROVED FUNCTION AND RETURN TO AN ACTIVE LIFESTYLE. UNDERSTANDING THE DYNAMICS OF HOW ARTIFICIAL DEVICES WORK AND HOW TO USE MUSCLES PROPERLY TO CONTROL THE DEVICES ENABLES INDIVIDUALS WITH DISABILITIES TO RUN, MOVE FROM SIDE TO SIDE, BEND DOWN, JUMP, CLIMB STAIRS AND WALK WITH MORE CONFIDENCE. INCREASED STRENGTH AND FLEXIBILITY HELP PARTICIPANTS TO OPERATE MORE EFFICIENTLY, EXPEND LESS ENERGY AND, THUS, DO MORE EACH DAY WITHOUT FATIGUE. THE SCHOOL FACILITATES ONE-ON-ONE OPPORTUNITIES BETWEEN THE PRESENTERS AND AMPUTEES AND "HANDS-ON" PARTICIPATION TECHNIQUES ASSISTED BY A TRAINED PROFESSIONAL AND/OR FAMILY MEMBER. IN ADDITION, PROFESSIONALS IN THE FIELD OF REHABILITATIVE THERAPY AND SPORTS RECEIVE A HIGH LEVEL TRAINING AND ADVANCED EXERCISES APPROPRIATE FOR USE WITH CLIENTS OF ALL AGES TO IMPROVE AMBULATING. THE CLINIC IS FREE AND OPEN TO ALL AMPUTEES AND FAMILY MEMBERS. PROFESSIONALS RECEIVE NOT ONLY TRAINING, BUT CONTINUING EDUCATION CREDITS THAT MAY BE APPLIED TO THEIR RESPECTIVE DISCIPLINES FOR LICENSURE. CHRH PROVIDES STROKE SCREENINGS AT HEALTH FAIRS THROUGHOUT THE AREA OVER THE COURSE OF THE YEAR. THE HIGHEST POPULATION OF PATIENTS ARE STROKE VICTIMS. THEREFORE, AS A COMMUNITY BENEFIT, WE EDUCATE THE POPULATION ON STROKE RISKS AND PREVENTION, AND PROVIDE FREE STROKE SCREENINGS. CARDINAL HILL HOSTS AND SPONSORS SUPPORT GROUP MEETINGS TO VARIOUS COMMUNITY GROUPS. THE MEETINGS ARE OPEN TO PREVIOUS PATIENTS AND THE COMMUNITY. THE GROUPS ARE STROKE, BRAIN INJURY, PULMONARY, AND MULTIPLE SCLEROSIS SUPPORT GROUPS. CARDINAL HILL IS THE PRIMARY SPONSOR FOR THE HILL ON WHEELS BASKETBALL TEAM WHICH IS OPEN TO THE COMMUNITY. THIS WHEELCHAIR BASKETBALL TEAM COMPETES LOCALLY, REGIONALLY, AND NATIONALLY. PART III, LINE 4: A COST-TO-CHARGE RATIO WAS USED TO DETERMINE THE AMOUNT OF BAD DEBT EXPENSE AT COST. NO AMOUNT OF BAD DEBT EXPENSE WAS ATTRIBUTED TO PATIENTS ELIGIBLE FOR CHARITY CARE BECAUSE THE ORGANIZATION'S BAD DEBT POLICY DISTINGUISHES BETWEEN THOSE WITH THE ABILITY TO PAY BUT WILL NOT, WHO ARE CONSIDERED BAD DEBT, AND THOSE WITHOUT THE ABILITY TO PAY, WHO ARE CONSIDERED CHARITY CARE. THE ORGANIZATION'S FINANCIAL STATEMENT FOOTNOTES DO NOT DIRECTLY ADDRESS THE TREATMENT OF BAD DEBT EXPENSE, ACCOUNTS RECEIVABLE, OR AN ALLOWANCE FOR DOUBTFUL ACCOUNTS, BUT DO DISCUSS THE PRESENTATION OF PROGRAM SERVICE FEES: PROGRAM SERVICE FEES CONSIST OF NET PATIENT SERVICE REVENUE. NET PATIENT SERVICE REVENUE IS REPORTED AT THE ESTIMATED NET REALIZABLE AMOUNTS FROM PATIENTS, THIRD-PARTY PAYORS, AND OTHERS FOR SERVICES RENDERED, INCLUDING ESTIMATED RETROACTIVE ADJUSTMENTS UNDER REIMBURSEMENT AGREEMENTS WITH THIRD-PARTY PAYORS. RETROACTIVE ADJUSTMENTS ARE ACCRUED ON AN ESTIMATED BASIS IN THE PERIOD THE RELATED SERVICES ARE RENDERED AND ADJUSTED IN FUTURE PERIODS AS FINAL SETTLEMENTS ARE DETERMINED. PART III, LINE 8: MEDICARE COSTS WERE DETERMINED USING A COST-TO-CHARGE RATIO, AS INDICATED. PART III, LINE 9B: ALL SELF PAY PATIENTS ARE SENT STATEMENTS. THERE ARE A SERIES OF FIVE STATEMENTS SENT ONE PER MONTH. IF NO RESPONSE IS RECEIVED, THEN AFTER THE FIFTH STATEMENT, THEY ARE SENT TO COLLECTIONS. THE MINIMUM ACCOUNT BALANCE SENT TO COLLECTIONS IS $10. AMOUNTS UNDER $10 ARE WRITTEN OFF TO IMMATERIAL BALANCE. IF THE PATIENT REQUESTS FINANCIAL ASSISTANCE AND THE FINANCIAL WORKSHEET IS RECEIVED BACK FROM THE PATIENT, THE INCOME, EXPENSES, AND RESOURCES ARE EVALUATED, AND MANAGEMENT MAKES A DETERMINATION OF ELIGIBILITY FOR CHARITY CARE. IF DEEMED ELIGIBLE, NO FURTHER COLLECTION ACTIVITY IS TAKEN. THE RECEIVABLE IS THEN WRITTEN OFF TO CHARITY CARE. CARDINAL HILL REHABILITATION HOSPITAL PART V, SECTION B, LINE 12H: OTHER FACTORS USED TO DETERMINE THE AMOUNTS CHARGED TO PATIENTS ARE THE NUMBER OF HOUSEHOLD MEMBERS. CARDINAL HILL REHABILITATION HOSPITAL PART V, SECTION B, LINE 16E: THE HOSPITAL FACILITY SENDS THE UNCOLLECTED AMOUNTS TO A COLLECTION AGENCY. CARDINAL HILL REHABILITATION HOSPITAL PART V, SECTION B, LINE 17E: THE HOSPITAL FACILITY SENDS THE UNCOLLECTED AMOUNTS TO A COLLECTION AGENCY. CARDINAL HILL REHABILITATION HOSPITAL PART V, SECTION B, LINE 18E: THE HOSPITAL SENDS A SERIES OF COLLECTION LETTERS PRIOR TO COLLECTION ACTIONS BY THE THIRD PARTY. CARDINAL HILL REHABILITATION HOSPITAL PART V, SECTION B, LINE 20D: THE HOSPITAL DETERMINED THE AMOUNTS BILLED TO INDIVIDUALS, WHO DID NOT HAVE INSURANCE, BASED ON THE MEDICAID RATE. PART VI, LINE 2: IN COLLABORATION WITH HEALTHCARE ORGANIZATIONS THROUGHOUT THE STATE, CARDINAL HILL FREQUENTLY ASSESSES SERVICES PROVIDED AND THE COMMUNITY NEED FOR ADDITIONAL SERVICES. FOR EXAMPLE, KENTUCKY IS CONSIDERED TO BE IN THE "STROKE BELT" OF AMERICA, MEANING WE ARE AMONG TEN STATES WHERE THE MORTALITY RATE FROM STROKES IS HIGHER THAN THE NATIONAL AVERAGE. WE PROVIDE FREE STROKE SCREENINGS AT THE CARDINAL HILL COMMUNITY HEALTH FAIR AND LOCAL AND REGIONAL HEALTH FAIRS. PART VI, LINE 3: PATIENTS ARE INFORMED ABOUT STATE (KMA) ELIGIBILITY REQUIREMENTS. THIS MAY START AT PRE-ADMISSION SCREENING BY OUR ADMISSION FACILITATOR, OR AT ADMISSION BY OUR ADMISSION COUNSELOR, OR DURING INPATIENT OR OUTPATIENT SERVICES BY THEIR SOCIAL WORKER/CASE MANAGER. A STATEMENT THAT THE FACILITY ACCEPTS PATIENTS WITHOUT REGARD TO RACE, CREED, OR ABILITY TO PAY IS LOCATED AT THE INPATIENT ADMISSION AND OUTPATIENT FINANCIAL COUNSELOR'S OFFICES. IF THE PATIENT INDICATES INABILITY TO PAY, THEY ARE GIVEN A FINANCIAL WORKSHEET TO COMPLETE. PART VI, LINE 4: KESS HAS ONE HOSPITAL - CHRH LOCATED IN KENTUCKY. CHRH IS IN A SUBURBAN AREA, BUT SERVES A MIX OF RURAL AND SUBURBAN PATIENTS. CHRH SERVES COUNTIES IN THE EASTERN AND SOUTHEASTERN PARTS OF KENTUCKY, MANY OF WHICH ARE DESIGNATED AS MEDICALLY UNDERSERVED AREAS. MOST OF THIS HOSPITAL'S PATIENTS ARE FROM KENTUCKY AND 18% OF CHRH'S ARE UNINSURED OR MEDICAID RECIPIENTS. CHRH IS THE ONLY FREE-STANDING REHABILITATION-SPECIFIC INPATIENT PROVIDER IN ITS PRIMARY SERVICE AREA. PART VI, LINE 5: KESS ORGANIZED COMMUNITY WIDE SUPPORT GROUPS FOR CAREGIVERS AND SURVIVORS OF STROKE, BRAIN INJURY, SPINAL CORD INJURY, AMPUTATION, AND FOR THOSE LIVING WITH PULMONARY DISORDERS OR DISEASE. KESS ALSO PROVIDES A FREE, COMMUNITY-WIDE HEALTH FAIR AND STRETCHING CLINICS BEFORE GOLF TOURNAMENTS AND 5K RUN/WALKS. PART VI, LINE 6: CARDINAL HILL HEALTHCARE SYSTEM IS AN AFFILIATE OF NATIONAL EASTER SEALS SOCIETY. EASTER SEALS HELPS INDIVIDUALS WITH DISABILITIES AND SPECIAL NEEDS, AND THEIR FAMILIES, LIVE BETTER LIVES. EASTER SEALS OFFERS A VARIETY OF SERVICES TO HELP PEOPLE WITH DISABILITIES ADDRESS LIFE'S CHALLENGES AND ACHIEVE PERSONAL GOALS THROUGH DIRECT SERVICES, ADVOCACY AND EDUCATIONAL OPPORTUNITIES. 1 X X X 0 0 0 0 0 0 0 0 0 ELIZABETH MONARCH 222240 0 0 0 0 0 10342 0 13423 0 246005 0 0 0 MARTIN LAUTNER 164245 0 0 0 0 0 7166 0 11172 0 182583 0 0 0 GARY PAYNE 329689 0 0 0 0 0 0 0 3469 0 333158 0 0 0 KERRY GILLIHAN 50000 0 0 0 0 0 0 0 0 0 50000 0 0 0 A KENTUCKY ECONOMIC DEVELOPMENT FINANCE AUTHORITY 610600439 2010-02-12 13000000 HOSPITAL CONSTRUCTION 0 0 0 B KENTUCKY ECONOMIC DEVELOPMENT FINANCE AUTHORITY 610600439 2009-12-30 30000000 REFINANCING AND HOSPITAL CONSTRUCTION 0 0 0 A 13000000 54456 10515736 2011 0 0 0 1 B 30000000 208983 25024935 2011 0 1 0 1 A 0 0 0 0 0.00000 0.00000 0.00000 0 0 0 B 0 0 0 0 0.00000 0.00000 0.00000 0 0 0 A 0 0 0 0 0 0 0 0 0 B 0 0 0 0 0 0 0 0 0 GREGG THORNTON DIRECTOR 127480 LEGAL FEES - MR. THORNTON IS A MEMBER OF KESS' BOARD OF DIRECTORS AND A PARTNER IN THE LAW FIRM WARD, HOCKER & THORNTON IN WHICH KESS HAS UTILIZED SERVICES RELATED TO RISK MANAGEMENET ISSUES. KESS BELIEVES THESE TRANSACTIONS ARE CONDUCTED ON AN ARM'S-LENGTH BASIS. 0 X 643 FAIR MARKET VALUE X 26 630 FAIR MARKET VALUE X 1 270 FAIR MARKET VALUE X WHEELCHAIRS, WALKERS, SCOOTERS, HOSPITAL BEDS 30 35979 FAIR MARKET VALUE X FURNITURE AND EQUIPMENT 31 3495 FAIR MARKET VALUE X QUILTS AND BLANKETS 100 1000 FAIR MARKET VALUE X ADVERTISEMENTS 23 4689 FAIR MARKET VALUE X CARDS AND AUTOGRAPHS 1 100 FAIR MARKET VALUE X GENERAL MERCHANDISE AND SERVICES 105 10042 FAIR MARKET VALUE X VEHICLE 1 14367 FAIR MARKET VALUE 0 1 0 FORM 990, PART VI, SECTION A, LINE 4 THE ORGANIZATION'S BY-LAWS WERE REVISED TO REMOVE INFORMATION REGARDING CARDINAL HILL REHABILITATION CENTER, WHICH WAS SOLD IN JUNE 2013. FORM 990, PART VI, SECTION B, LINE 11 THE BOARD OF DIRECTORS HAVE BEEN GIVEN THE OPPORTUNITY TO REVIEW FORM 990 IN ITS ENTIRETY. ADDITIONALLY, KEY MEMBERS OF THE BOARD OF DIRECTORS HAVE REVIEWED FORM 990 WITH THE CFO. FORM 990, PART VI, SECTION B, LINE 12C THE ENTITY REQUIRES OFFICERS, DIRECTORS, AND TRUSTEES TO ANNUALLY REVIEW AND DISCLOSE IN WRITING TRANSACTIONS WITH THE ENTITY. FORM 990, PART VI, SECTION B, LINE 15 QUESTION 15A THE OVERSIGHT COMMITTEE, COMPRISED SOLELY OF INDEPENDENT MEMBERS OF THE BOARD OF DIRECTORS, SERVING AS A COMPENSATION COMMITTEE, REVIEWS COMPARABILITY AND OTHER COMPENSATION DATA OBTAINED FROM INDEPENDENT COMPENSATION DATA SOURCES TO DETERMINE THE COMPENSATION OF THE CEO. THE DELIBERATION AND DECISION OF THE CEO'S COMPENSATION IS DOCUMENTED IN THE STANDARD DOCUMENTATION OF COMPENSATION ADJUSTMENTS MAINTAINED IN PERSONNEL RECORDS. THE HUMAN RESOURCE DIRECTOR ASSISTS THE COMMITTEE IN PREPARING AND EXECUTING THE APPROPRIATE PERSONNEL AND PAYROLL RECORDS. THE HUMAN RESOURCE DIRECTOR MAINTAINS CONTROL OF THE PERSONNEL RECORDS OF THE CEO. THE CHIEF EXECUTIVE OFFICER AND CHIEF OPERATING OFFICER REVIEW COMPENSATION OF OFFICERS OF THE COMPANY. IN ADDITION, FORMAL, WRITTEN PERFORMANCE EVALUATIONS ARE COMPLETED ANNUALLY ON THE OFFICERS BY THE CEO AND COO. THE DELIBERATION AND DECISION OF THE OFFICER'S COMPENSATION IS DOCUMENTED IN THE STANDARD DOCUMENTATION OF COMPENSATION ADJUSTMENTS MAINTAINED IN PERSONNEL RECORDS. THE HUMAN RESOURCE DIRECTOR MAINTAINS THE OFFICERS' PERSONNEL RECORDS AND ARE UNDER HIS CONTROL AND SECURITY. QUESTION 15B THE CHIEF EXECUTIVE OFFICER AND CHIEF OPERATING OFFICER REVIEW COMPENSATION OF OFFICERS OF THE COMPANY. IN THE COURSE OF DETERMINING COMPENSATION FOR THE OFFICERS OF THE ORGANIZATION, THE HUMAN RESOURCE DIRECTOR REVIEWS OUTSIDE COMPETITIVE SOURCES. IN ADDITION, FORMAL, WRITTEN PERFORMANCE EVALUATIONS ARE COMPLETED ANNUALLY ON THE OFFICERS BY THE CEO AND COO. THE DELIBERATION AND DECISION OF THE OFFICER'S COMPENSATION IS DOCUMENTED IN THE STANDARD DOCUMENTATION OF COMPENSATION ADJUSTMENTS MAINTAINED IN PERSONNEL RECORDS. THE HUMAN RESOURCE DIRECTOR MAINTAINS THE OFFICERS' PERSONNEL RECORDS AND ARE UNDER HIS CONTROL AND SECURITY. FORM 990, PART VI, SECTION C, LINE 19 THE COMPANY MAKES ITS GOVERNING DOCUMENTS, CONFLICT OF INTEREST POLICY, AND FINANCIAL STATEMENTS AVAILABLE TO THE PUBLIC UPON REQUEST, AND AT THE DISCRETION OF THE BOARD OF DIRECTORS AND MANAGEMENT. OTHER FEES FORM 990, PART IX, LINE 11G OTHER PROFESSIONAL FEES: PROGRAM SERVICE EXPENSES 3,796,274. MANAGEMENT AND GENERAL EXPENSES 2,895,170. FUNDRAISING EXPENSES 10,395. TOTAL EXPENSES 6,701,839. CHANGES IN NET ASSETS OR FUND BALANCES: FORM 990, PART XI, LINE 9: LOSS ON DISCONTINUANCE OF BUSINESS UNIT -3,393,719. EFFECT OF FASB 158 3,536,811. TRANSFER OF NET ASSETS FROM KESS 16,273,672. FORM 990, PART XII, QUESTION 2C THE FINANCE AND AUDIT COMMITTEE IS RESPONSIBLE FOR THE OVERSIGHT OF THE AUDIT AND SELECTION OF THE INDEPENDENT ACCOUNTANT. THIS PROCESS HAS NOT CHANGED FROM THE PRIOR YEAR. FORM 990, PART VI, SECTION A, LINE 1A THE EXECUTIVE COMMITTEE OF THE BOARD OF DIRECTORS, LED BY THE BOARD CHAIRPERSON, HAS AUTHORITY TO ACT ON BEHALF OF THE BOARD OF DIRECTORS ON ALL MATTERS WHICH CANNOT BE DELAYED UNTIL THE NEXT REGULARLY SCHEDULED BOARD MEETING, EXCLUDING THE POWER TO AMEND ARTICLES OF INCORPORATION AND BYLAWS. ALL SUCH ACTIONS ARE THEN REPORTED TO THE BOARD OF DIRECTORS AT THE NEXT MEETING. NUMBER OF EMPLOYEES FORM 990, PART I, LINE 5 AND PART V, LINE 2A. THE NUMBER OF W-2S ISSUED AS REPORTED ON FORM W-3, 1,717, IS NOT REPRESENTATIVE OF THE ACTUAL NUMBER OF EMPLOYEES EMPLOYED BY THE GROUP. THIS NUMBER INCLUDES MULTIPLE W-2S ISSUED TO A SINGLE EMPLOYEE DUE TO WORK IN MULTIPLE STATES OR LOCALITIES. A MORE ACCURATE REPRESENTATION OF THE TOTAL NUMBER OF EMPLOYEES DURING THE YEAR WOULD BE 965. YEAR OF SUBSTANTIAL COMPLETION SCHEDULE K, PART II, LINE 13 THE FACILITY WAS COMPLETED IN OCTOBER 2011, WHICH IS IN FISCAL YEAR 2012.