Form 990 for tax year 2022

Revenue

Part VIII, the statement of revenue.

• 1d · Related organizations

  $7,471,116

• 1e · Government grants (contributions)

  $21,570,592

• 1g · Noncash contributions included above

  $269,782

• 2a · Program service revenue: Net Patient Revenue

  total $2,589,779,491 · related or exempt $2,589,779,491

• 2b · Program service revenue: Healthcare Education

  total $292,437 · related or exempt $292,437

• 2f · All other program service revenue

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

• 6a · Gross rents

  real property $1,086,920

• 6b · Less rental expenses

  real property $1,414,062

• 6c · Rental income or loss

  real property -$327,142 · personal property $0

• 6d · Net rental income or loss

  total -$327,142 · excluded -$327,142

• 7c · Gain or loss

  securities $0 · other assets $0

• 11a · Other revenue: PURCHASING CO-OP INC

  total $3,601,272 · related or exempt $3,601,272

• 11b · Other revenue: PARKING INCOME

  total $1,568,285 · excluded $1,568,285

• 11c · Other revenue: AFFILIATION AGREEMENT

  total $674,328 · related or exempt $674,328

• 11d · All other revenue

  total $3,074,831 · related or exempt $3,074,831 · unrelated business $0 · excluded $0

• 11e · Other revenue, total

  $8,918,716

Functional expenses

Part IX, the statement of functional expenses.

• 5 · Compensation of officers, directors and key employees

  total $3,099,288 · program services $3,099,288

• 6 · Compensation of disqualified persons

  total $428,587 · program services $428,587

• 7 · Other salaries and wages

  total $699,496,632 · program services $699,496,632

• 8 · Pension plan contributions

  total $34,953,262 · program services $34,953,262

• 9 · Other employee benefits

  total $78,992,203 · program services $78,992,203

• 10 · Payroll taxes

  total $48,850,493 · program services $48,850,493

• 11g · Fees: other

  total $303,393,308 · program services $303,393,308 · management and general $0 · fundraising $0

• 13 · Office expenses

  total $12,772,580 · program services $12,772,580

• 16 · Occupancy

  total $26,729,195 · program services $26,729,195

• 17 · Travel

  total $1,072,381 · program services $1,072,381

• 20 · Interest

  total $41,315,610 · program services $41,315,610

• 22 · Depreciation, depletion and amortization

  total $92,097,222 · program services $92,097,222

• 23 · Insurance

  total $11,508,868 · program services $11,508,868

• 24a · Other expenses: Medical Supplies

  total $643,718,842 · program services $643,718,842

• 24b · Other expenses: Allocated Support

  total $308,960,251 · program services $259,526,611 · management and general $49,433,640

• 24c · Other expenses: Provider Tax/HRIP Expenses

  total $54,454,280 · program services $54,454,280

• 24d · Other expenses: Repairs & Maintenance

  total $19,752,313 · program services $19,752,313

• 24e · All other expenses

  total $5,303,899 · program services $5,303,899 · management and general $0 · fundraising $0

Balance sheet

Part X, book values.

• 1 · Cash, non-interest-bearing

  beginning of year $11,339 · end of year $8,300

• 4 · Accounts receivable

  beginning of year $262,209,653 · end of year $269,416,878

• 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 $69,170,691 · end of year $68,934,055

• 9 · Prepaid expenses and deferred charges

  beginning of year $3,454,993 · end of year $3,035,077

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

  $2,194,033,309

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

  $1,263,403,958

• 10c · Land, buildings and equipment, net

  beginning of year $950,056,514 · end of year $930,629,351

• 12 · Investments: other securities

  beginning of year $0

• 13 · Investments: program-related

  beginning of year $0

• 14 · Intangible assets

  beginning of year $7,445,984 · end of year $7,445,984

• 15 · Other assets

  beginning of year $2,195,871,270 · end of year $2,340,621,315

• 17 · Accounts payable and accrued expenses

  beginning of year $242,492,154 · end of year $147,954,845

• 22 · Loans and payables to officers and key people

  beginning of year $0 · end of year $0

• 25 · Other liabilities

  beginning of year $31,981,634 · end of year $18,431,598

• 27 · Net assets without donor restrictions

  beginning of year $3,209,220,477 · end of year $3,451,498,916

• 28 · Net assets with donor restrictions

  beginning of year $4,526,179 · end of year $2,205,601

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. (NHC) EXECUTIVES, EFFECTIVE OCTOBER 1, 2007. NHC 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 NHC 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 2022: Matthew Ayers - $10,000 Charlotte Ipsan - $5,768 Joseph Flynn - $10,000 Andrew Strausbaugh - $9,616 Emmett Ramser - $10,000 Karen Donahue - $10,000

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 HOSPITALS, 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 4a Severance or change-of-control payment

Severance payment was received during 2022 by Key Employee, Andrew Strausbaugh in the amount of $9,850. 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 - $117,699 Michael W. Gough - $74,682 Robert Azar - $54,258 Adam Kempf - $125,316 Matthew Ayers - $56,854 Charlotte Ipsan - $69,414 Joseph Flynn - $103,683 Andrew Strausbaugh - $37,141 Emmett Ramser - $56,407 Karen Donahue - $22,509 THE "PAYMENT RECEIVED" OUTLINED BELOW REPRESENTS CASH PAYMENTS THAT THE EMPLOYEE RECEIVED DURING 2022 AND CAN BE COMPRISED OF CURRENT AND OR PRIOR YEARS EMPLOYEE AND EMPLOYER CONTRIBUTIONS. NAME - PAYMENT RECEIVED Russell F. Cox - $2,156,367 Michael W. Gough - $178,379 Robert Azar - $228,616 Adam Kempf - $115,476 Matthew Ayers - $61,094 Charlotte Ipsan - $48,416 Joseph Flynn - $73,175 Andrew Strausbaugh - $53,498 Emmett Ramser - $52,672 Karen Donahue - $100,764

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

In 2022, 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.

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

  Directly controlled by Norton Healthcare Inc