On July 24, 1984 John Paul II named Gaughan as the second bishop of the Diocese of Gary.[2] In February 1992, Gaughan suffered a debilitating stroke. Because of his health situation, Paul II appointed Bishop Dale Melczek on August 19, 1992, to be the apostolic administratorsede plena of the diocese. On October 28, 1995, Paul II appointed Bishop Melczek to be the coadjutor bishop of the Gary diocese. This meant that upon Gaughan's retirement, Melczek would succeed him immediately as bishop.
Retirement and legacy
On June 1, 1996. Paul II accepted Gaughan's resignation as bishop of the Diocese of Gary.[3] Gaughan spent his final years at Saint Anthony Home in Crown Point, Indiana. Norbert Gaughan died on October 1, 1999, in Crown Point. He was buried in the Saint Emma Convent cemetery in Greensburg, Pennsylvania, after a funeral mass in Gary.