Norton Healthcare

What it reported doing in 2024

Norton Hospitals, Inc. (NHI) was formed to: I) provide on a nonprofit basis, hospital or health care facilities and services for the care and treatment of ill and injured persons and those who otherwise require medical care and related services of the kind customarily furnished most effectively by hospitals or health care facilities; II) conduct educational activities related to rendering care to the sick and injured; III) promote and conduct scientific research related to the care of the sick and injured. Norton Healthcare expanded services in 2024 with the addition of Norton West Louisville Hospital. Norton West Louisville Hospital opened in November 2024. The hospital offers comprehensive services, including adult and pediatric primary care physician offices, emergency department services, inpatient services and outpatient functions. Imaging services, including X-rays and CT scans, are available, along with specialty services such as women's health, cardiology, neurology and endocrinology. Some physician offices offer evening hours as well. NHI has a total of 1,907 licensed beds, Norton Hospital - 585 beds; Norton Children's Hospital - 300 beds; Norton Audubon Hospital - 432 beds; Norton Women's and Children's Hospital - 373 beds; Norton Brownsboro Hospital - 197 beds; and Norton West Louisville Hospital - 20 beds. These hospitals operate twenty-four (24) hours a day, seven (7) days a week. In 2024, NHI's hospitals, diagnostic centers and Norton Cancer Institute served 71,587 inpatients, 750,552 outpatients, 265,104 emergency department visits, and 31,369 observation cases. In addition, NHI's operating rooms cared for 17,479 inpatient surgical patients and 42,716 outpatient surgical patients. Additionally, 8,138 deliveries were performed at NHI birthing centers. As part of our commitment to improving the health of our community, NHI provides funding for a wide array of lifesaving and life-enhancing services that benefit the communities we serve. In 2024, under its charity care program, NHI provided free care to 11,860 patients, at a cost of $15.7 million. Also, Norton Healthcare, Inc. (NHC), parent company of NHI, grants a discount from billed charges to any patients who have no access to private health insurance or do not qualify for government assistance or charity care. Under this program, 17,715 patients were provided care at discounted rates. Another contribution to the community was educational support of $98.3 million, primarily to the University of Louisville (UofL) School of Medicine. Community health improvement services totaled $22.3 million and contributions to community groups were $2.2 million. NHC provides programmatic support to the UofL School of Medicine through funding and facilities. During the 2024 calendar year, 208 residents completed clinical rotations in 52 specialties at NHC facilities. Residency programs are part of the $98.3 million in educational support and clinical funding provided to the medical school.

Financial Efficiency

• Mission deployment rate: 82.2%; rating input score 82
• Program expense ratio: 98.1%; rating input score 98
• Fundraising efficiency: Limited

Transparency & Controls

• Consistency checks: 100%; rating input score 100; 68th percentile among comparable filings
• Pay-setting controls: 0 of 6 controls in place; rating input score 0
  • Compensation committee: Missing
  • Independent consultant: Missing
  • Other Form 990s reviewed: Missing
  • Written employment contract: Missing
  • Compensation survey or study: Missing
  • Board or committee approval: Missing
• Foreign activity oversight: Limited
• Grant itemization coverage: 100%; rating input score 100; 77th percentile among comparable filings
• Major donor itemization: Yes; rating input score 100
• Related-party transparency: Yes; rating input score 100

Accountability

• Independent voting board: 94.4%; rating input score 94; 46th percentile among comparable filings
• Governance controls: 9 of 9 controls in place; rating input score 100
  • Conflict-of-interest policy: Pass
  • Whistleblower policy: Pass
  • Document-retention policy: Pass
  • CEO compensation review process: Pass
  • Other executive compensation review process: Pass
  • Form 990 shared with the board: Pass
  • Board meeting minutes documented: Pass
  • Audit committee oversight: Pass
  • Independent financial-statement audit: Pass

Sustainability

• Operating margin: 16.2%; rating input score 84; 84th percentile among comparable filings
• Total-asset coverage ratio: 1.62; rating input score 56; 56th percentile among comparable filings
• Liabilities to assets ratio: 0.04; rating input score 90; 90th percentile among comparable filings
• Officer compensation ratio: 0.5%; rating input score 85; 85th percentile among comparable filings

Growth

• Program expense growth: 7% per year; rating input score 100; 57th percentile among comparable filings
• Revenue growth: 6.5% per year; rating input score 100; 57th percentile among comparable filings
• Asset growth: 11.4% per year; rating input score 100; 76th percentile among comparable filings