2011-11-11T08:31:36-06:00 2010-12-31 CROWE HORWATH LLP 9600 BROWNSBORO ROAD SUITE 400 LOUISVILLE KY 402411122 990 2010-01-01 611276316 COMMUNITY MEDICAL ASSOCIATES INC COMM 5026298263 224 E BROADWAY - 5TH FLOOR LOUISVILLE KY 402022025 MICHAEL W GOUGH 5026298326 2011-11-11 1 5023263996 2010 2016-02-24 21:20:13Z STEPHEN A WILLIAMS 234 EAST GRAY ST SUITE 225 LOUISVILLE KY 40202 145677328 0 X WWW.NORTONHEALTHCARE.COM X 1993 KY TO PROVIDE HEALTH AND WELLNESS CARE TO THOSE SERVED. 22 19 1530 10 0 0 58103 86235 119767146 145159716 15495 7741 176290 191404 120017034 145445096 0 0 0 0 105902911 131479623 0 0 0 34431179 40865630 140334090 172345253 -20317056 -26900157 23622945 27574491 83761118 114615621 -60138173 -87041130 X COMMUNITY MEDICAL ASSOCIATES, INC'S PURPOSE IS TO PROVIDE HEALTH AND WELLNESS CARE TO THOSE SERVED AND TO OPERATE CLINICS AND OTHER HEALTH CARE FACILITIES. 0 0 170766243 145328152 COMMUNITY MEDICAL ASSOCIATES (CMA) OPERATES A NETWORK OF PHYSICIAN PRACTICES WITH THE GOAL OF INTEGRATING THE DELIVERY OF PRIMARY, URGENT, AND SPECIALTY CARE THROUGHOUT THE COMMUNITIES IT SERVES. THE PHYSICIAN NETWORK FOCUSES ON HIGH QUALITY, COST EFFECTIVE HEALTHCARE DELIVERY AT SITES CONVENIENTLY LOCATED IN NEIGHBORHOOD OFFICES AND IN UNDERSERVED OUTREACH AREAS THROUGHOUT KENTUCKY. THIS NETWORK CONSISTS OF 67 PRACTICES AND 12 IMMEDIATE CARE CENTERS IN EIGHT COUNTIES IN KENTUCKY AND SOUTHERN INDIANA, TREATING IN EXCESS OF 878,000 PATIENTS IN 2010. ONE AREA OF SERVICE PROVIDED BY CMA IS TO STUDY THE NEEDS OF SPECIALTY SERVICES THAT ARE UNDERSERVED IN THE COMMUNITY AND STRIVE TO PROVIDE A QUALITY AND STABLE WORKFORCE TO SATISFY THOSE NEEDS. EXAMPLES OF NEW SPECIALTY GROUPS ADDED TO CMA IN 2010 INCLUDE BREAST HEALTH, NEUROLOGY, BARIATRICS, AND ORTHOPEDIC SURGERY. ALSO, CMA HAS PHYSICIANS AND A CHAPLAIN WHO MAKE HOUSE CALLS FOR ELDERLY PATIENTS WHO HAVE DIFFICULTY LEAVING THEIR HOMES FOR MEDICAL CARE. ADDITIONALLY, CMA PHYSICIANS ARE INVOLVED IN MEDICAL SCREENING, COMMUNITY OUTREACH, AND COMMUNITY EDUCATION ACTIVITIES TO PROMOTE WELLNESS AND EARLY INTERVENTIONS. CMA PHYSICIANS ALSO SERVE IN A VARIETY OF CAPACITIES FOR BOTH MEDICAL AND COMMUNITY RESOURCE ORGANIZATIONS. 170766243 1 1 0 0 0 0 0 0 0 1 0 0 0 1 1 0 1 0 0 0 0 0 0 0 0 0 0 0 1 0 0 0 0 0 0 0 0 0 0 0 0 0 1 0 0 0 0 1 X 104 0 1 1530 1 0 0 0 0 0 0 0 0 0 0 X 22 19 1 0 0 0 1 0 0 1 1 0 0 1 1 1 1 1 1 1 1 0 X HELENA SCHULZ 5026298263 224 E BROADWAY - 5TH FLOOR LOUISVILLE KY 402022025 X DONALD H ROBINSON 1.00 X 0 0 0 JOSEPH A PARADIS III 1.00 X 0 1500 0 CHERYL BALKENHOL 1.00 X 0 0 0 MARIA L BOUVETTE 1.00 X 0 0 0 CAROLYN J GATZ 1.00 X 0 1500 0 ROBERT GOODIN MD 1.00 X 0 1500 0 GARY L STEWART 1.00 X 0 1818 0 CRAIG GRANT 1.00 X 0 1500 0 R K GUILLAUME 1.00 X 0 1500 0 KEVIN HABLE 1.00 X 0 0 0 MARIA GERWING HAMPTON 1.00 X 0 1500 0 RONALD LEHOCKY MD 1.00 X 0 1500 0 GREGORY E MAYES 1.00 X 0 1500 0 MARY MOSELEY 1.00 X 0 0 0 MITCH NICHOLS 1.00 X 0 0 0 GAIL LYTTLE 1.00 X 0 0 0 G HUNT ROUNSAVALL 1.00 X 0 0 0 REV WILLIAM J SCHULTZ 1.00 X 0 0 0 RICHARD S WOLF MD 1.00 X 0 0 0 STEPHEN A WILLIAMS 6.00 X X 0 1908292 298109 WENDELL P WRIGHT 1.00 X 0 1500 0 MARTHA HEYBURN MD 1.00 X 0 1500 0 RUSSELL F COX 6.00 X 0 1087174 199165 MICHAEL W GOUGH 6.00 X 0 918325 170550 ROBERT B AZAR 6.00 X 0 483151 86735 GINGER FIGG 50.00 X 549205 0 102098 JOHN HARPING 50.00 X 960312 0 50241 JOHN DIMAR 50.00 X 919844 0 49803 TODD VITAZ 50.00 X 917002 0 51110 CHRISTOPHER SHIELDS 50.00 X 912278 0 30545 STEVEN GLASSMAN 50.00 X 908374 0 48161 WILLIAM RITCHIE 50.00 X 0 347720 75935 5167015 4761480 1162452 277 1 1 0 SRS DBA PEDIATRIC RADIOLOGY OF AMERICA 2840 ELECTRIC RD SW 205A ROANOKE VA 24018 RADIOLOGY SERVICES 980162 LICHTEFELD INC 908 S EIGHTH ST 102 LOUISVILLE KY 40203 CONSTRUCTION AND REPAIR 798705 ZIRMED 1311 SOLUTIONS CENTER CHICAGO IL 60677 CLAIMS MANAGEMENT 678772 WEATHERBY LOCUMS INC P O BOX 972633 DALLAS TX 75397 PRIMARY CARE SERV 538496 DIAGNOSTIC XRAY PHYSICIANS PSC 5129 DIXIE HWY SUITE 100 LOUISVILLE KY 40216 RADIOLOGY SERVICES 409891 22 86235 86235 NET PATIENT SERVC REV 621110 139964995 139964995 PHY PRACTICE REVENUE 621110 4994790 4994790 INTERNAL BILLING REV 524298 126431 126431 MEDICAL DIRECTOR FEES 621610 73500 73500 145159716 255200 232232 22968 22968 22968 7741 7741 7741 7741 MISCELLANEOUS INCOME 621990 167620 167620 PURCHASING DISCOUNTS 900099 816 816 168436 145445096 145328152 0 30709 403825 403825 113151692 113151692 3623432 3623432 8794730 8794730 5505944 5505944 4383 4383 5014241 5014241 7567447 7567447 9300455 9300455 508340 508340 2277283 2277283 5112065 3885169 1226896 BAD DEBT 7790429 7790429 ALLOCATED SUPPORT 1467143 1115029 352114 DUES & SUBSCRIPTIONS 418277 418277 OTHER EXPENSES 417666 417666 EQUIP RENTAL & MAINT 374016 374016 613885 613885 172345253 170766243 1579010 0 646961 774002 12042919 11095270 72 209857 274887 29537416 14713306 9920778 14824110 593447 606222 208911 0 23622945 27574491 5204222 5012101 78556896 109603520 83761118 114615621 X -60167673 -87088730 29500 47600 -60138173 -87041130 23622945 27574491 X -26900157 -2800 X X 0 1 1 X 1 1 X 11167 58103 86235 155505 66595979 76616143 90227135 120122907 145591093 499153257 66595979 76616143 90238302 120181010 145677328 499308762 0 0 0 499308762 66595979 76616143 90238302 120181010 145677328 499308762 1.00000 1.00000 0.00000 X RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED 4388831 2430196 1958635 18317087 12144673 6172414 6831498 138437 6693061 14824110 PAYABLE TO AFFILIATE 109603520 109603520 145445096 172345253 -26900157 -2800 -2800 -26902957 DESCRIPTION OF UNCERTAIN TAX POSITIONS UNDER FIN 48: PART X: NORTON HEALTHCARE, INC. AND AFFILIATES (COMMUNITY MEDICAL ASSOCIATES, NORTON ENTERPRISES, INC., NORTON HEALTHCARE FOUNDATION, INC., NORTON HOSPITALS, INC., NORTON PROPERTIES, INC., THE CHILDREN'S HOSPITAL FOUNDATION) COMPLETED AN ANALYSIS OF ITS TAX POSITION AT DECEMBER 31, 2010 AND 2009, AND DETERMINED THAT NO MATERIAL AMOUNTS WERE REQUIRED TO BE RECOGNIZED UNDER ACCOUNTING STANDARDS CODIFICATION 740, INCOME TAXES, IN THE COMBINED FINANCIAL STATEMENTS AT DECEMBER 31, 2010 AND 2009. PART XI, LINE 8 - OTHER ADJUSTMENTS: AFFILIATE TRANSFER -2,800 X X 1 1 X X X X X 0 1 0 0 0 0 0 0 0 STEPHEN A WILLIAMS 0 922287 0 517078 0 468927 0 277463 0 20646 0 2206401 0 0 RUSSELL F COX 0 690430 0 241507 0 155237 0 172291 0 26874 0 1286339 0 0 MICHAEL W GOUGH 0 599288 0 203578 0 115459 0 145308 0 25242 0 1088875 0 0 ROBERT B AZAR 0 260914 0 101412 0 120825 0 77943 0 8792 0 569886 0 0 GINGER FIGG 326332 0 101094 0 121779 0 86211 0 15887 0 651303 0 86451 0 JOHN HARPING 667606 0 275740 0 16966 0 17150 0 33091 0 1010553 0 0 0 JOHN DIMAR 645088 0 250000 0 24756 0 19600 0 30203 0 969647 0 0 0 TODD VITAZ 663787 0 236295 0 16920 0 14700 0 36410 0 968112 0 0 0 CHRISTOPHER SHIELDS 688944 0 218000 0 5334 0 24500 0 6045 0 942823 0 0 0 STEVEN GLASSMAN 650313 0 240595 0 17466 0 19600 0 28561 0 956535 0 0 0 WILLIAM RITCHIE 0 205303 0 67115 0 75302 0 59880 0 16055 0 423655 0 25031 PART I, LINE 1A TAX INDEMNIFICATION AND GROSS-UP PAYMENTS ARE TREATED AS TAXABLE COMPENSATION TO THE INTERESTED PERSONS LISTED BELOW AT TIME OF PAYMENT. PAYMENTS ARE IN ACCORDANCE WITH THE EXISTING COMPENSATION POLICY. GROSS-UP PAYMENTS SHALL BE MADE ONLY WHEN SPECIFIED IN AN EMPLOYEE'S EMPLOYMENT CONTRACT, OR AS APPROVED IN WRITING BY THE PRESIDENT AND CEO OF NORTON HEALTHCARE, EXECUTIVE VICE PRESIDENT OR CFO. DURING 2010, GROSS-UP PAYMENTS WERE PROCESSED AS OUTLINED IN THE EMPLOYMENT CONTRACT FOR THE CEO. SEE NARRATIVE PROVIDED IN SCHEDULE O, REFERENCING PART VI, LINE 15, WHICH DESCRIBES THE PROCESS FOR DETERMINING COMPENSATION OF THE CEO, OFFICERS, AND KEY EMPLOYEES OF THE ORGANIZATION. STEPHEN A. WILLIAMS: THE TOTAL TAX GROSS-UP BENEFITS INCLUDED IN TAXABLE COMPENSATION FOR MR. WILLIAMS ARE $129,637. THE TAX GROSS-UPS IS RELATED TO THE BENEFIT OUTLINED BELOW: ANNUITY - THE TAX GROSS-UP ASSOCIATED WITH THE ANNUITY BENEFIT IS $129,637. THIS PURCHASED ANNUITY REPRESENTS ACCUMULATED BENEFITS EARNED IN PRIOR YEARS RELATED TO A NON-QUALIFIED DEFINED BENEFIT PENSION RESTORATION PLAN IN EFFECT SINCE 1990. CONTRIBUTIONS TO THIS PLAN WERE MADE IN 2005, 2006, 2007, 2008, 2009 AND 2010. INCLUDED IN MR. WILLIAMS COMPENSATION IN 2010 IS $252,772 WHICH IS THE COST OF THE PURCHASED ANNUITY. THE TOTAL COST OF THE PURCHASED ANNUITY AND THE ASSOCIATED TAX GROSS-UP IS $382,409, WHICH WAS INCLUDED IN TAXABLE COMPENSATION. DISCRETIONARY SPENDING ACCOUNTS ARE TREATED AS TAXABLE COMPENSATION. THE ORGANIZATION PROVIDES A DISCRETIONARY SPENDING ACCOUNT FOR ELIGIBLE NORTON HEALTHCARE EXECUTIVES, EFFECTIVE OCTOBER 1, 2007. NORTON HEALTHCARE PROVIDES BENEFITS TO ITS IDENTIFIED EXECUTIVE STAFF TO PROVIDE A TOTAL COMPENSATION PACKAGE THAT IS COMPETITIVE WITH THE MARKET AND WHICH CONFORMS TO THE PHILOSOPHY AND GUIDELINES SET OUT BY THE BOARD OF TRUSTEES, THROUGH THE EXECUTIVE COMPENSATION PHILOSOPHY AND PROGRAMS. THROUGH THE DISCRETIONARY SPENDING ACCOUNT POLICY, EXECUTIVES ARE FREE TO CHOOSE WHATEVER BENEFITS THEY FIND MOST USEFUL OR IMPORTANT TO THEM AND NORTON HEALTHCARE DOES NOT REIMBURSE FOR THE COST OF THOSE BENEFITS, AS THEY ARE PART OF THE DISCRETIONARY SPENDING ACCOUNT. THE INTERESTED PERSONS LISTED BELOW RECEIVED THE BENEFIT OF A DISCRETIONARY SPENDING ACCOUNT IN 2010: STEPHEN A. WILLIAMS $58,789 RUSSELL F. COX 59,434 MICHAEL W. GOUGH 52,208 ROBERT B. AZAR 17,500 GINGER FIGG 17,500 WILLIAM RITCHIE 10,000 PART I, LINE 4B THE FOLLOWING INTERESTED PERSONS PARTICIPATED IN OR RECEIVED PAYMENT FROM SUPPLEMENTAL NONQUALIFIED RETIREMENT PLANS AS DESCRIBED IN IRC SECTION 457(F). THE INTERESTED PERSONS BELOW MAY HAVE PARTICIPATED IN ONE OR MORE OF THE FOLLOWING PLANS: THE EXECU-FLEX BENEFIT PLAN, THE EXECU-PLUS BENEFIT PLAN, DEFINED BENEFIT AND DEFINED CONTRIBUTION RESTORATION PLANS, AND THE PHYSICIAN DEFERRED PLAN. THE "PAY CREDIT" COLUMN REPRESENTS A REASONABLE ESTIMATE OF THE ANNUAL INCREASE IN ACTUARIAL VALUE OF THE PLANS; AND THEREFORE, REPRESENTS THE ORGANIZATION'S CONTRIBUTION TO THE VALUE OF THE BENEFITS. THE "PAYMENTS RECEIVED" COLUMN REPRESENTS CASH PAYMENTS THAT THE EMPLOYEE RECEIVED DURING 2010 AND CAN BE COMPRISED OF PRIOR YEARS EMPLOYEE AND EMPLOYER CONTRIBUTIONS. PARTICIPANTS NAME PAY CREDIT PAYMENTS RECEIVED STEPHEN A. WILLIAMS $252,963 $0 RUSSELL F. COX 155,141 0 MICHAEL W. GOUGH 128.158 0 ROBERT B. AZAR 63,243 0 GINGER FIGG 69,061 89,289 WILLIAM RITCHIE 35,380 25,031 FORM 990, PART VI, SECTION A, LINE 2 STEPHEN A. WILLIAMS, PRESIDENT AND CEO OF NORTON HEALTHCARE, INC. IS ALSO AN OFFICER FOR NORTON HEALTHCARE, INC., NORTON HOSPITALS, INC., COMMUNITY MEDICAL ASSOCIATES, INC., AND NORTON PROPERTIES, INC. MARIA L. BOUVETTE, PRESIDENT AND CEO OF PORTER BANCORP, INC. IS A TRUSTEE FOR NORTON HEALTHCARE, INC., NORTON HOSPITALS, INC., COMMUNITY MEDICAL ASSOCIATES, INC., AND NORTON PROPERTIES, INC. MR. WILLIAMS IS A BOARD MEMBER OF PORTER BANCORP, INC. FORM 990, PART VI, SECTION A, LINE 6 NORTON HEALTHCARE, INC. EIN 61-1028725 IS THE SOLE MEMBER OF COMMUNITY MEDICAL ASSOCIATES, INC. FORM 990, PART VI, SECTION B, LINE 11 ALL FORMS 990 WERE REVIEWED IN ADVANCE OF FILING WITH THE NORTON HEALTHCARE, INC. (NORTON) FINANCE COMMITTEE ON OCTOBER 6, 2011 AND THE FULL NORTON BOARD OF TRUSTEES ON NOVEMBER 8, 2011. NORTON IS THE PARENT OF COMMUNITY MEDICAL ASSOCIATES, INC. ALSO, ELECTRONIC COPIES OF ALL FORMS 990 WERE MADE AVAILABLE TO ALL MEMBERS OF THE FINANCE COMMITTEE AND BOARD OF TRUSTEES. FORM 990, PART VI, SECTION B, LINE 12C THE ORGANIZATION REGULARLY AND CONSISTENTLY MONITERS AND ENFORCES COMPLIANCE WITH THE CONFLICT OF INTEREST POLICY BY ANNUALLY DISTRIBUTING A QUESTIONNAIRE THAT REQUIRES OFFICERS, TRUSTEES, AND KEY EMPLOYEES TO DISCLOSE INTERESTS THAT MAY GIVE RISE TO CONFLICTS. IF A CONFLICT ARISES, THE POLICY PROVIDES PROCEDURES FOR ADDRESSING CONFLICTS TO ENSURE DECISIONS ARE MADE IN THE BEST INTEREST OF THE ORGANIZATION. FORM 990, PART VI, SECTION B, LINE 15 THE ORGANIZATION TAKES ALL NECESSARY STEPS TO ENSURE THAT ALL OFFICERS, DIRECTORS AND KEY EMPLOYEES ARE COMPENSATED WITHIN APPROPRIATE LEVELS FOR THE SERVICES PROVIDED TO THE ORGANIZATION. THE ORGANIZATION PROVIDES A TOTAL COMPENSATION PACKAGE THAT IS COMPETITIVE WITH THE MARKET AND WHICH CONFORMS TO THE PHILOSOPHY AND GUIDELINES SET OUT BY THE BOARD OF TRUSTEES. NORTON HEALTHCARE INC. (NHI) ENGAGES AN OUTSIDE INDEPENDENT COMPENSATION CONSULTANT, INTEGRATED HEALTHCARE STRATEGIES (IHS), TO PREPARE COMPENSATION ANALYSIS UTILIZING DATA FROM SIMILAR-SIZED HEALTH SYSTEMS AND HOSPITAL ORGANIZATIONS. IN ADDITION, THE ORGANIZATION PARTICIPATES IN THIRD PARTY SURVEYS WHICH PROVIDE AGGREGATE, COMPARATIVE COMPENSATION DATA FOR OFFICERS AND KEY EMPLOYEES IN SIMILAR-TYPE POSITIONS. IHS CONSULTANTS MET IN 2009 WITH THE COMMITTEE OF BOARD LEADERSHIP (NOW EXECUTIVE COMMITTEE) OF THE BOARD OF TRUSTEES (BOARD) CONCERNING EXECUTIVE COMPENSATION AND BENEFITS PROGRAM FOR NHI EXECUTIVES AND TOTAL COMPENSATION FOR THE CEO. THE CONSULTANTS REVIEWED SOURCES OF COMPARABILITY DATA AND MARKET MOVEMENT COMPARISONS. NHI'S VARIABLE COMPENSATION PROGRAM WAS REVIEWED ALONG WITH BENCHMARK COMPARISONS. BASED ON THE RECOMMENDATIONS OF IHS, EMPLOYMENT CONTRACTS FOR THE CEO, COO AND CFO WERE SUBSEQUENTLY COMPLETED AND APPROVED BY THE BOARD. THE EXECUTIVE COMMITTEE ALSO REVIEWED AND APPROVED ALL KEY EMPLOYEE COMPENSATION BASED ON THE THIRD-PARTY REPORT FURNISHED AND DISCUSSED WITH COMMITTEE MEMBERS, AND SUBSEQUENTLY APPROVED BY THE BOARD. FORM 990, PART VI, SECTION C, LINE 19 FINANCIAL STATEMENTS, GOVERNING DOCUMENTS, AND CONFLICTS OF INTEREST POLICIES ARE NOT REQUIRED DISCLOSURES PURSUANT TO INTERNAL REVENUE CODE (IRC) SECTION 6104. THESE DOCUMENTS ARE NOT AVAILABLE TO THE PUBLIC AT THIS TIME. CHANGES IN NET ASSETS OR FUND BALANCES: FORM 990, PART XI, LINE 5: AFFILIATE TRANSFER -2,800 -2,800. TOTAL TO FORM 990, PART XI, LINE 5: -2,800. FORM 990, PART XII, LINE 2C: THE ORGANIZATION DID NOT CHANGE EITHER ITS OVERSIGHT PROCESS OR SELECTION PROCESS DURING THE TAX YEAR. FORM 990, PART I, LINE 5 AND PART V, LINE 2: NORTON HEALTHCARE, INC. EIN 61-1028725 IS THE COMMON PAYING AGENT FOR COMMUNITY MEDICAL ASSOCIATES, INC. THEREFORE, ALL APPLICABLE IRS TAX COMPLIANCE FILINGS ARE REPORTED BY NORTON HEALTHCARE, INC. ON BEHALF OF COMMUNITY MEDICAL ASSOCIATES, INC. COMMUNITY MEDICAL ASSOCIATES, INC. HAS APPROXIMATELY 1,530 EMPLOYEES. FORM 990, PART V, LINE 1 AND PART VII, SECTION B, LINES 1 AND 2: NORTON HEALTHCARE, INC. EIN 61-1028725 IS THE COMMON PAYING AGENT FOR COMMUNITY MEDICAL ASSOCIATES, INC. AND THEREFORE, ALL VENDORS, INCLUDING INDEPENDENT CONTRACTORS ARE PAID BY NORTON HEALTHCARE, INC. ON BEHALF OF COMMUNITY MEDICAL ASSOCIATES, INC. FOR PURPOSES OF PART V, LINE 1, THE NUMBER OF 1099S REPORTED AND FILED FOR 2010 BY NORTON HEALTHCARE, INC. FOR COMMUNITY MEDICAL ASSOCIATES, INC WAS APPROXIMATELY 104. COMMUNITY MEDICAL ASSOCIATES, INC HAS APPROXIMATELY 22 INDEPENDENT CONTRACTORS EXCEEDING $100,000 FOR 2010. FORM 990, PART VII, SECTION A, LINE 1A, COLUMN B: THE INTERESTED PERSONS LISTED BELOW ARE OFFICERS FOR NORTON HEALTHCARE, INC AND AFFILIATES, WHICH INCLUDES: NORTON HEALTHCARE, INC.(NHI), NORTON HOSPITALS, INC. (HOSPITALS), COMMUNITY MEDICAL ASSOCIATES, INC. (CMA), NORTON PROPERTIES, INC.(PROPERTIES), NORTON HEALTHCARE FOUNDATION, INC. (NHF) AND THE CHILDREN'S HOSPITAL FOUNDATION (CHF). ESTIMATED BELOW ARE THE AVERAGE HOURS PER WEEK DEVOTED TO EACH ORGANIZATION DURING 2010: NHI HOSPITALS CMA PROPERTIES NHF CHF TOTAL STEPHEN A. WILLIAMS 30 10 6 2 1 1 50 RUSSELL F. COX 30 10 6 2 1 1 50 MICHAEL W. GOUGH 30 10 6 2 1 1 50 ROBERT B. AZAR 30 10 6 2 1 1 50 FORM 990, PART VII, SECTION A, LINE 1A, COLUMN E: NORTON HEALTHCARE, INC. (NHI) AND AFFILIATES (NORTON HOSPITALS, INC., COMMUNITY MEDICAL ASSOCIATES, INC., NORTON PROPERTIES, INC., AND NORTON HEALTHCARE FOUNDATION, INC.) ENCOURAGES AND FACILITATES BOARD MEMBER ATTENDANCE AT EDUCATIONAL PROGRAMS AND CONFERENCES ON SUBJECTS RELEVANT TO NHI. NHI'S TRAVEL POLICY FOR BOARD OF TRUSTEES PROVIDES THAT FOR EACH TRUSTEE THAT ATTENDS AT LEAST ONE OUT OF TOWN EDUCATIONAL CONFERENCE, A LUMP SUM STIPEND WILL BE PAID TO COVER UNREIMBURSED TRAVEL EXPENSE AND OTHER MISCELLANEOUS EXPENSES ASSOCIATED WITH CONFERENCE PREPARATION, ATTENDANCE OR FOLLOW UP. IN COMPLIANCE WITH IRS REGULATIONS, NHI PROVIDES A FORM 1099 TO ANY TRUSTEE THAT RECEIVES A STIPEND. THESE AMOUNTS HAVE BEEN REPORTED IN PART VII OF THE FORM 990 AS REPORTABLE COMPENSATION TO THE TRUSTEE RECEIVING STIPENDS IN 2010. FORM 990, PART IX, LINE 11G: FEES FOR SERVICES - OTHER INCLUDE FEES FOR PHYSICIAN, RADIOLOGY, CLAIMS PROCESSING, TRANSCRIPTION, AND CLEANING SERVICES. FORM 990, PART XII, LINE 3B: AS REQUIRED BY THE U.S. OFFICE OF MANAGEMENT AND BUDGET CIRCULAR A-133, AUDITS OF STATES, LOCAL GOVERNMENTS, AND NON-PROFITS ORGANIZATIONS, IN 2010 NORTON HEALTHCARE, INC. AND AFFILIATES (NORTON HOSPITALS, INC. COMMUNITY MEDICAL ASSOCIATES, INC., NORTON ENTERPRISES, INC., NORTON HEALTHCARE FOUNDATION, INC., NORTON PROPERTIES, INC., AND THE CHILDREN'S HOSPITAL FOUNDATION) RECEIVED AN AUDIT IN ACCORDANCE WITH SINGLE AUDIT ACT. NORTON HEALTHCARE INC 224 E BROADWAY - 5TH FLOOR LOUISVILLE KY 40202 611028725 PROVIDE ADMINISTRATIVE AND SUPPORT SERVICES. KY 501(C)(3) 11 TYPE II N/A 0 NORTON HOSPITALS INC 224 E BROADWAY - 5TH FLOOR LOUISVILLE KY 40202 610703799 PROVIDE HOSPITAL SERVICES. KY 501(C)(3) 3 NORTON HEALTHCARE INC 0 NORTON PROPERTIES INC 224 E BROADWAY - 5TH FLOOR LOUISVILLE KY 40202 611028724 MAINTAIN OFFICE AND PARKING FACILITIES. KY 501(C)(3) 11 TYPE I NORTON HEALTHCARE INC 0 THE CHILDREN'S HOSPITAL FOUNDATION 224 E BROADWAY - 5TH FLOOR LOUISVILLE KY 40202 616027530 GENERATE FUNDS TO SUPPORT PROGRAMS AND SERVICES. KY 501(C)(3) 7 NORTON HEALTHCARE INC 0 NORTON HEALTHCARE FOUNDATION INC 224 E BROADWAY - 5TH FLOOR LOUISVILLE KY 40202 310914919 GENERATE FUNDS TO SUPPORT PROGRAMS AND SERVICES. KY 501(C)(3) 7 NORTON HEALTHCARE INC 0 0 0 1 0 0 0 0 0 0 0 0 0 0 1 0 0 1 1