Form 990 for tax year 2024

Revenue

Part VIII, the statement of revenue.

• 1d · Related organizations

  $4,670,810

• 2a · Program service revenue: Management fees

  total $494,751,799 · related or exempt $494,751,799

• 2b · Program service revenue: Net Patient Revenue

  total $77,472,124 · related or exempt $77,472,124

• 2c · Program service revenue: Clinical Research Trials

  total $19,864,266 · related or exempt $19,864,266

• 2d · Program service revenue: Education Programs

  total $203,798 · related or exempt $203,798

• 2f · All other program service revenue

  total $0 · related or exempt $0 · unrelated business $0 · excluded $0

• 3 · Investment income

  total $89,502,552 · related or exempt $90,515,950 · unrelated business -$1,013,398

• 4 · Income from investment of tax-exempt bond proceeds

  total $4,642,390 · related or exempt $4,642,390

• 6c · Rental income or loss

  real property $0 · personal property $0

• 7a · Gross sales of assets other than inventory

  securities $479,471,296

• 7b · Less cost or other basis and sales expenses

  securities $461,205,974

• 7c · Gain or loss

  securities $18,265,322 · other assets $0

• 7d · Net gain or loss

  total $18,265,322 · related or exempt $18,265,322

• 8c · Net income from fundraising events

  total $0

• 11a · Other revenue: Insurance Reimbursement

  total $7,500,000 · related or exempt $7,500,000

• 11b · Other revenue: FEMA Reimbursement

  total $31,006,077 · related or exempt $31,006,077

• 11c · Other revenue: FICA Reimbursement

  total $6,025,646 · related or exempt $6,025,646

• 11d · All other revenue

  total $5,460,842 · related or exempt $5,141,720 · unrelated business $319,122 · excluded $0

• 11e · Other revenue, total

  $49,992,565

Functional expenses

Part IX, the statement of functional expenses.

• 1 · Grants to domestic organizations and governments

  total $51,166,237 · program services $51,166,237

• 2 · Grants to domestic individuals

  total $211,595 · program services $211,595

• 5 · Compensation of officers, directors and key employees

  total $25,833,050 · program services $13,453,657 · management and general $12,379,393 · fundraising $0

• 6 · Compensation of disqualified persons

  total $1,221,174 · program services $1,037,998 · management and general $183,176

• 7 · Other salaries and wages

  total $236,080,289 · program services $202,547,219 · management and general $33,533,070

• 8 · Pension plan contributions

  total $12,441,878 · program services $10,575,596 · management and general $1,866,282

• 9 · Other employee benefits

  total $29,087,589 · program services $24,724,451 · management and general $4,363,138

• 10 · Payroll taxes

  total $18,316,419 · program services $15,568,956 · management and general $2,747,463

• 11b · Fees: legal

  total $5,288,773 · program services $4,495,457 · management and general $793,316

• 11c · Fees: accounting

  total $909,996 · program services $773,496 · management and general $136,500

• 11d · Fees: lobbying

  total $132,000 · program services $112,200 · management and general $19,800

• 11f · Fees: investment management

  total $7,228,097 · program services $7,228,097

• 11g · Fees: other

  total $104,181,232 · program services $88,554,047 · management and general $15,627,185 · fundraising $0

• 12 · Advertising and promotion

  total $6,110,545 · program services $5,193,963 · management and general $916,582

• 13 · Office expenses

  total $5,695,595 · program services $4,841,256 · management and general $854,339

• 16 · Occupancy

  total $10,869,468 · program services $9,239,048 · management and general $1,630,420

• 17 · Travel

  total $989,846 · program services $841,369 · management and general $148,477

• 20 · Interest

  total $42,443,088 · program services $36,076,625 · management and general $6,366,463

• 22 · Depreciation, depletion and amortization

  total $26,371,030 · program services $22,415,375 · management and general $3,955,655

• 23 · Insurance

  total $14,906,229 · program services $12,669,295 · management and general $2,236,934

• 24a · Other expenses: Equipment Rental and Repair

  total $94,773,427 · program services $80,557,413 · management and general $14,216,014

• 24b · Other expenses: Pharmacy Drugs

  total $71,935,978 · program services $61,145,581 · management and general $10,790,397

• 24c · Other expenses: Sponsorship

  total $2,578,688 · program services $2,160,146 · management and general $418,542

• 24d · Other expenses: Bad Debt

  total $1,275,979 · program services $1,084,582 · management and general $191,397

• 24e · All other expenses

  total -$35,578,255 · program services -$36,607,980 · management and general $1,029,725 · fundraising $0

Balance sheet

Part X, book values.

• 1 · Cash, non-interest-bearing

  beginning of year $181,090,199 · end of year $34,508,695

• 2 · Savings and temporary cash investments

  beginning of year $60,991,240 · end of year $162,822,344

• 3 · Pledges and grants receivable

  beginning of year $0 · end of year $0

• 4 · Accounts receivable

  beginning of year $45,027,129 · end of year $62,933,335

• 5 · Loans and receivables from officers and key people

  beginning of year $0 · end of year $0

• 6 · Loans and receivables from disqualified persons

  beginning of year $0 · end of year $0

• 8 · Inventories for sale or use

  beginning of year $5,423,861 · end of year $6,625,970

• 9 · Prepaid expenses and deferred charges

  beginning of year $76,587,219 · end of year $88,514,822

• 10a · Land, buildings and equipment: cost or other basis

  $390,485,662

• 10b · Land, buildings and equipment: accumulated depreciation

  $290,304,332

• 10c · Land, buildings and equipment, net

  beginning of year $108,882,982 · end of year $100,181,330

• 11 · Investments: publicly traded securities

  beginning of year $1,218,987,918 · end of year $1,402,548,141

• 12 · Investments: other securities

  beginning of year $623,750,070 · end of year $629,565,881

• 13 · Investments: program-related

  beginning of year $21,775,973 · end of year $21,775,973

• 15 · Other assets

  beginning of year $60,862,978 · end of year $94,920,278

• 17 · Accounts payable and accrued expenses

  beginning of year $268,537,578 · end of year $323,720,421

• 18 · Grants payable

  beginning of year $8,391,701 · end of year $6,510,566

• 20 · Tax-exempt bond liabilities

  beginning of year $1,584,870,046 · end of year $1,534,891,636

• 22 · Loans and payables to officers and key people

  beginning of year $0 · end of year $0

• 25 · Other liabilities

  beginning of year $333,990,056 · end of year $465,962,482

• 27 · Net assets without donor restrictions

  beginning of year $198,579,847 · end of year $264,770,907

• 28 · Net assets with donor restrictions

  beginning of year $9,010,341 · end of year $8,540,757

The filer's explanations (Part III)

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. 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 2024: Russell F. Cox Michael G. Gough Steven Hester Adam Kempf Robert B. Azar Steve Ready Charlotte Ipsan Douglas Winkelhake Scott Watkins James Frazier Mary Lynn Meyer Kimberl Tharp-Barrie Steve Heilman John Hammond Renee Murphy Shelly Gast Jim Meyers Andrew McCarthy Mark Kircher Mark McDonald Mark Moussette Helena Schulz Tammy McClanahan Vanessa Garrett Laura Chandler

Schedule J, Part I, Line 4a Severance or change-of-control payment

Severance payment was received during 2024 for Former Key Employee, Gladys Abarca-Lopez in the amount of $225,464. 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-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 - $410,065 Michael W. Gough - $219,544 Steven Hester - $241,348 Adam Kempf - $187,984 Robert Azar - $136,740 Steve Ready - $146,558 Charlotte Ipsan - $121,249 Douglas Winkelhake - $100,351 Scott Watkins - $107,813 James Frazier - $99,013 Mary Lynn Meyer - $91,801 Kimberly Tharp-Barrie - $92,733 Steven Heilman - $91,282 John Hammond - $92,682 Renee Murphy - $75,042 Shelly Gast - $63,669 Jim Meyers - $64,571 Andrew McCarthy - $57,585 Mark Kircher - $52,080 Stephen Wyatt - $11,852 Mark Moussette - $48,179 Helena Schulz - $47,698 Tammy McClanahan - $48,197 Vanessa Garrett - $55,075 THE "PAYMENT RECEIVED" OUTLINED BELOW REPRESENTS CASH PAYMENTS THAT THE EMPLOYEE RECEIVED DURING 2024 AND CAN BE COMPRISED OF CURRENT AND OR PRIOR YEARS EMPLOYEE AND EMPLOYER CONTRIBUTIONS. NAME - PAYMENT RECEIVED Russell F. Cox - $251,451 Michael W. Gough - $206,074 Steven Hester - $122,835 Adam Kempf - $107,772 Robert Azar - $96,040 Steve Ready - $87,707 Charlotte Ipsan - $195,331 Douglas Winkelhake - $104,965 Scott Watkins - $74,635 James Frazier - $66,369 Mary Lynn Meyer - $57,633 Kimberly Tharp-Barrie - $68,604 Steven Heilman - $72,668 Renee Murphy - $42,215 Shelly Gast - $43,580 Jim Meyers - $46,489 Andrew McCarthy - $39,966 Mark Kircher - $44,078 Mark Moussette - $42,667 Helena Schulz - $41,310 Tammy McClanahan - $36,944 Vanessa Garrett - $35,567 Laura Chandler - $30,971 Gladys Abarca-Lopez - $92,640

Schedule J, Part I, Line 7 Non-fixed payments

In 2024, 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.

Disregarded entities

Part I: entities that legally are the filer and file no return of their own.

• Norton Pharmacies PLLC

  Pharmacy · KY · income $91,906,600 · assets $16,826,012

  Directly controlled by Norton Healthcare Inc

Related corporations and trusts

Part IV: related organizations taxable as a corporation or trust.

• NORTON ENTERPRISES INC

  C Corporation · Invests in Partnerships that provide medical services · KY · 100% owned · controlled entity

  Directly controlled by Norton Healthcare Inc