BY: Connor Welch & Destiny McCreary

Connor Welch & Destiny McCreary

Employees
Norton Healthcare
1000 Manor Park Dr
Louisville, KY 40208
March 3, 2016
Bruce D. Broussard
President
500 W Main St
Louisville, KY, 40208

Dear Bruce Broussard,

Enclosed is a copy of A Dive Back into Healthcare, inside this report is the summary of insurance
provider, Humana Inc, and the Hospital Company, Norton Healthcare.
The central purpose of this report is to show the advantages that could be gained if Humana were to
purchase Norton Healthcare and get back into the hospital industry.
The content of the proposal lists the target audience, briefs a summary of each company, and
summarizes the 3 areas of study highlighted in the enclosed report. The information from this report
was put together by two employees, one from each company.
Also, this report previews a possible future for Humana if it were to get back to its origins and purchase
this healthcare company.
Please feel free to contact us at 502-821-2327 if there is anything in the report that you have questions
or concerns for.
Thank you for your support.
Sincerely,

______________________________
Connor Welch

______________________________
Destiny McCreary

I. Executive Summary
II. The History Behind the Two Companies
III. Company Growth
IV. Advertisement
V. Fact Sheet
VI. Closing
VII. Works Cited

The following report will represent the team work of two employees, one from Humana
by the name of Connor Welch, and the second from Norton Healthcare by the name of Destiny
McCreary. This report will highlight the following areas of each company: 1.The history,
2.Company growth, and 3. advertising this new found company and how they may potentially
benefit each other.
The first section, The History will dive into the history of both Norton Healthcare and
Humana. Split into two columns, it will primarily focus on a timeline of both companies. This
report will discuss how Humana originated from a nursing home company by the name of
Extendicare before obtaining its Humana name, as well as Norton originally being named John
Infirmary in honor of its founders late husband. Other historical information will also be
included in terms of major buy-outs, location, and major contributions.
The second section, titled Company Growth will take a look into revenue, production
and as stated, company growth. With this section, the employees are not only working to
show the success of each company individually, but also how successful each could be together.
The final section, Advertisement is Key will discuss advertisement techniques and
services that the newly merged company may take into consideration. Following this section is
a facts sheet that offers a little more detail into each company itself.
Ending with a closing, this section will provide the employees overall business plan and
ideas into the merging of Humana and Norton Healthcare. The target audiences as well as
potential services are listed here as well.
Overall, the intent for this report is to provide the executives of both Norton Healthcare
and Humana with a potential business plan that in return could create one of the biggest and
most powerful powerhouses not only in Louisville, Kentucky, but throughout the United States
as a whole!

In 1984, one of Humanas many

hospitals lost a contract with one of the health
maintenance organizations and the company
then issued its first insurance policy through
their hospital.

Originally founded in 1866 by Marie

Louise Sutton-Norton to honor her late husband
John N. Norton, Norton Healthcare was first
named the John N. Norton Infirmary. Located at
Third and Oak, this was the first self-supported
non-profit hospital south of the Mason-Dixon
Line. When the hospital first opened, it was ran
my several different religious groups who were
interested in providing affordable healthcare to
those in need. Influences from groups such as the
Episcopal Church, United Methodist Church,
United Church of Christ, and the Roman Catholic
Church and Presbyterian communities all helped
to shape the company into what it is today.

In 1993, Humana created a spinoff

company aside from its insurance sector known
as Galen Healthcare. The following year, Galen
Healthcare and all 73 hospitals were sold to
Columbia Hospital of America.

Aside from the infirmary, on February 12,

1886 the John N. Norton School of Nursing was
opened. This was the first nursing school in the
state of Kentucky, the 2nd in the south, and the
35th in the United States as a whole.

In 2010 Humana acquired The Concentra

Company, which was a group of Urgent Care and
Therapy Centers, which in return brought the
company back to the healthcare industry.

Today, the hospital is located on Third

and Chestnut and is currently one of the leading
healthcare providers throughout the state of
Kentucky. Consisting of over 40 different
locations, 5 hospitals, and nearly 12 different
Immediate Care centers, the company has taken
on a very dominate role in the healthcare
industry.

In 1971 Extendicare Nursing Home

Company was sold and with the money received
the two owners opened a hospital company
established as Humana. In 1978 Humana bought
out a hospital company known as Medicorp
which made the company two times larger, and
eventually in the 80s made them the largest
hospital in the world.

In 2015, Humana sold off The Concentra

brand for over one hundred times what they
originally bought it for.

Collectively, both companies have come a long way from their original establishments.
* Revenue report of Humana from
$60.00
$40.00
$20.00
$-

20%
10%

2006-15 featuring an average 9% increase

in total revenue yearly. 2015 was also the

0%

first year Humana profited.

Humana Total Revenue
Humana Total Revenue

* After the Aetna company bought

out its rival Humana, the company now hasover 60+

million customers, putting them

amongst one of the top insurance providers
in the US. Also, with the merger, executives
project that shares will earn $7.75 a share
and S&P approximates $8.06 a share. The
two companies just merged for $37 billion.
* With the large empire formed by
Aetna-Humana, the company will produce
enough to have the funds to invest in other
companies as they have done before.
* Norton has grown from one location on 2nd and Oak to a company having over has over 40 different locations that
have branched into a plethora of different services
o 5 hospitals (Kosairs Childrens Hospital, Audubon Hospital, Downtown Hospital, the Womens and Children
Hospital, and the Brownsboro Hospital.
o Specialty clinics and services, such as the Cancer Resource Centers, CPA Labs, House Call services, weight
management services are now offered through Norton.
o 13 immediate care centers in the local Kentuckiana Area
* If Norton & Humana were to combine with each other, they would be able to potentially create a new way to
provide healthcare while at the same time creating a new insurance plan made specifically for these Norton locations
throughout Louisville. If they were together, like that of an employee-discount, Humana could provide a healthcare
plan that covers yearly expenses for patients who have their insurance and go to a Norton Facility. This could in turn
influence patients with Humana insurance to not only switch to Humana insurance but also only go to Norton
Healthcare facilities. This would create a large powerhouse between the two

One might view Louisville, Kentucky as a small city where not much goes on, except for that one
event that takes place once a year on the first Saturday in May. The Kentucky Derby! As seen in the
photo below, one of the biggest endorsers of this celebrated event is Humana. Interestingly enough,
there is even a race on the same day as the big event that is hosted by Humana at Churchill Downs
known as the Humana Distaff Handicap Race.

Many advertisements produced for the Kentucky Derby are published by one of the oldest advertising
agencies located right in the center of Downtown Louisville; Doe-Anderson. This company also happens
to be the ones responsible for all advertisements published from Norton Healthcare. Founded in 1915,
Doe-Anderson is one of the oldest continuously operating agency in the United States, and as of 2015
remains the third oldest independent agency in the U.S.
In 2010, Norton Healthcare renewed their contract with Doe-Anderson promising
another 15 years of advertisement. This was a contract that the agency no longer offered to new coming
customers due to their recently increased popularity. Today, most contract only offer a maximum of 6
years. With the combing of both Humana and Norton Healthcare into one, Humana would reap the
benefits of an exclusive contract offered only to Norton Healthcare for their desire to Keep Louisville
Local.

A company as large as Humana uses several

different measures to make the brand is well
known throughout the country. To the left is a
picture that the company has put together to
promote better health amongst all customers.

As a well known healthcare provider,

Norton Healthcare has created a system
known as MyChart that allows patients to
have instant access to test results,
scheduled appointments, doctors notes,
medication refill request and much more
all at the touch of a button.

With Humana provided a means for healthcare services, and Norton Healthcare providing the actual services, the
joining of these companies would create one of the biggest powerhouses not only in the state of Kentucky, but in the
United States as a whole. While Norton Healthcare may only be located in Louisville, Humana offers coverage across all
50 states, thus eventually leading to the expansion of Norton Healthcare.

Both Humana and Norton Healthcare are companies who started from rock bottom before
working their way to become two of the biggest companies located in Louisville, Kentucky. After
providing some background information of both companies, statistical information in regards to
company growth, advertisement detail, and company facts, this report is intended to demonstrate why
the joining of both companies will be an overall success.
When Humana was first established it was a part of the Healthcare industry, therefore joining
with Norton Healthcare will allow the company to step back into the hospital industry while at the
same time continuing to also sell insurance. Today, the insurance plan offer to Norton Healthcare
employees is through a Humana contract, and as expected, Humana is also the insurance carried by
Humana employees.
The creation of this enormous powerhouse could potentially take effect when the two
companies merge as one. A special insurance plan could be offered to both patients and employees that
allow a special discounted rate for services provided at Norton Healthcare facilities to those with
Humana insurance. Seeing that healthcare is far from cheap, after a while more and more patients of
Norton Healthcare will become interested in this coverage offered.
The main targets for this coverage could be both the elderly and the adolescents, the two
groups who have the most frequent visits to doctors offices, immediate care facilities, emergency
rooms, and specialist visits. Advertisement could influence both subscribers and patients to purchase
the coverage and visit Norton Healthcare facilities in order to save money through their coverage sort
of like a discount plan!
Lastly, as expected, a name change may become necessary after both businesses have merged.
However, rather than renaming both companies we would recommend simply combining the names
together. By keeping the Norton Healthcare logo, the word Norton could be replaced with Humana. In
order to show that the two companies are now one, you may want to consider keeping the different
text format of both Norton Healthcare and Humana, as seen below:

In conclusion, based upon our research we think the merging of both Norton Healthcare and
Humana could potentially make one of the biggest most powerful powerhouses not only in Louisville,
Kentucky but throughout the United States as a whole. Healthcare is very important and a necessity to
just about everyone!

Works Cited

Allen, Lindsay. "Theater Eyes on Louisville during Humana Festival, Company Still
Giving
during Merger." WDRB. Frankly Media, 25 Feb. 2016. Web. 26 Feb. 2016.
"Fortune 500 2015." Fortune. Time Inc. Web. 26 Feb. 2016.
"Humana Sites." Humana. Web. 26 Feb. 2016.
David. "Capstone Asset Management Company Cuts Position in Humana Inc (HUM)."
The Vista
Voice RSS. 2016. Web. 26 Feb. 2016.
Wikipedia. Wikimedia Foundation. Web. 26 Feb. 2016.
http://www.kmir.com/story/26656164/humana-dropping-sponsorship-of-pgatournament
https://nortonhealthcare.com/Pages/thenortonstory.aspx
https://nortonhealthcare.com/Pages/educationandtraining.aspx
http://www.bizjournals.com/louisville/stories/2005/03/28/daily34.html