2021-11-08T15:05:36-06:00 2020-12-31 990 2020-01-01 043760551 Fort Sanders Perinatal Center FORT 8653743140 1420 Centerpoint Blvd Bldg C Knoxville TN 379321960 JOHN T GEPPI EVP/CFO 8653746872 2021-10-20 JOHN GEPPI 999009999 2 AAL1 IAL1 2020 2022-09-23 18:48:47Z James D VanderSteeg 244 Ft Sanders W Blvd Knoxville TN 37922 18378169 0 X https://www.fortsandersperinatal.com/ X 2002 TN Fort Sanders Perinatal Center works closely with the women's services department at Fort Sanders Regional Medical Center providing comprehensive obstetrical services to women, including women with high-risk pregnancies. Fort Sanders Perinatal Center is located in the Fort Sanders community of downtown Knoxville, Tennessee, and is a member of the Covenant Health system. 22 21 155 21 0 0 1400000 1410707 15823520 16788343 297345 178360 3178 759 17524043 18378169 0 0 0 0 15549872 15308381 0 0 0 2774514 3168375 18324386 18476756 -800343 -98587 7873675 8863032 10370742 11458686 -2497067 -2595654 X Fort Sanders Perinatal Center provides quality healthcare, in alignment with Covenant Health's mission to serve the community by improving the quality of life through better health, regardless of the patient's ability to pay. 0 0 17239465 16789102 Fort Sanders Perinatal Center (the "Center") provides a full range of quality healthcare services to women in East Tennessee. The Center specializes in providing obstetrical care to women with high risk pregnancies as well as obstetrical/gynecological services to the area. Some services the Center provides, such as genetic counseling, would not otherwise be available in Knox and the surrounding counties if the Center did not exist. Each year the Center receives assistance to support the cost associated with covering high risk obstetrics. In 2020, this assistance, totaling $1,400,000, came from the East Tennessee Children's Hospital. Fort Sanders Perinatal Center provides care to those in need regardless of method of payment or ability to pay. During 2020, 46.3% of the Center's patients were covered by TennCare, Tennessee's Medicaid program, under which costs exceed reimbursement. In 2020, the Center had 81,848 office visits and performed 2,219 deliveries.COVENANT HEALTHFort Sanders Perinatal is a member of Covenant Health. Covenant Health is a comprehensive, community-owned health system dedicated to improving the health of the people it serves. Established in 1996 by the consolidation of Fort Sanders Health System, Knoxville, Tennessee, and MMC HealthCare System in Oak Ridge, Covenant Health is governed by a voluntary board of directors comprised of community leaders and medical professionals. With more than 10,000 employees, affiliated physicians and volunteers, Covenant Health is the Knoxville area's largest employer and has been named a Best Employer six times by Forbes. Covenant Health includes nine acute care hospitals in East Tennessee: Methodist Medical Center of Oak Ridge, Fort Sanders Regional Medical Center and Parkwest Medical Center in Knoxville, Fort Loudoun Medical Center in Lenoir City, LeConte Medical Center in Sevierville, Morristown-Hamblen Healthcare System in Morristown, Roane Medical Center in Harriman, Claiborne Medical Center in Tazewell and Cumberland Medical Center in Crossville. It also includes Peninsula, a division of Parkwest Medical Center, a behavioral health hospital in Blount County, Tennessee. The health system also includes Covenant Medical Group, which includes more than 200 physicians and advanced practice clinicians in office locations throughout East Tennessee.Affiliated organizations include Thompson Cancer Survival Center, Thompson Oncology Group, Fortress Corporation and Subsidiaries, Covenant HomeCare, and Fort Sanders Perinatal Center. Philanthropic organizations include Fort Sanders Foundation and the Thompson Cancer Survival Center Foundation in Knoxville, Methodist Medical Center Foundation in Oak Ridge, Dr. Robert F. Thomas Foundation in Sevierville, and Morristown-Hamblen Hospital Foundation in Morristown. Funds raised by the foundations provide services, equipment and other resources for excellence in patient care.Fort Sanders Perinatal, as a member of the Covenant Health system, benefits from the collaboration among all affiliated organizations to promote quality improvement, patient safety and efficient delivery of care for the communities served. 17239465 1 1 0 0 0 0 0 0 0 0 1 0 0 1 1 1 0 1 0 0 0 0 0 0 0 0 0 0 0 1 0 0 0 0 0 0 0 0 0 0 0 0 0 1 0 0 0 1 15 0 1 155 1 0 0 0 0 0 0 0 0 0 0 0 0 X 22 21 0 0 0 0 1 1 1 1 1 0 0 1 1 1 1 1 1 1 1 0 X Amy DeLong 8653743140 1420 Centerpoint Blvd Bldg C Knoxville TN 379321960 Gerald Boyd Director 0.00 1.00 X 0 0 0 Willard Campbell MD Director 0.00 1.00 X 0 0 0 Michael Casey MD Director 0.00 1.00 X 0 0 0 Ronni Chandler Director 0.00 1.00 X 0 0 0 Mitchell Dickson MD Director 0.00 1.00 X 0 0 0 James Fitzsimmons Director/Chair 0.00 1.00 X X 0 0 0 James Gibson Director 0.00 1.00 X 0 0 0 Edgar Gray Director 0.00 1.00 X 0 0 0 Amber Wisner Director 0.00 1.00 X 0 0 0 Timothy Matthews Director 0.00 1.00 X 0 0 0 Janice McKinley Director 0.00 1.00 X 0 0 0 Dave Miller Director 0.00 1.00 X 0 0 0 Bill Myers Director 0.00 1.00 X 0 0 0 Alvin Nance Director 0.00 1.00 X 0 0 0 Linda Ogle Director 0.00 1.00 X 0 0 0 King Purnell Director 0.00 1.00 X 0 0 0 Jorge Sanabria Director 0.00 1.00 X 0 0 0 Cosby Stone Director 0.00 1.00 X 0 0 0 Carl Storms Director 0.00 1.00 X 0 0 0 Joe Sutter Director 0.00 1.00 X 0 0 0 James Tramontana MD Director 0.00 1.00 X 0 0 0 James D VanderSteeg President & CEO 0.00 50.00 X X 0 1949432 220678 John T Geppi EVP/CFO 0.00 50.00 X 0 1287949 29360 Keith N Altshuler President & CAO 6.00 44.00 X 0 539205 30165 Brian J Lett VP - Financial Services 8.00 42.00 X 0 183694 32810 Periclis Roussis MD Perinatologist 50.00 0.00 X 1656823 0 36190 Gary W Stephens MD Perinatologist 50.00 0.00 X 1196654 0 35321 Steven A Andrade MD High-risk OB/GYN 50.00 0.00 X 690667 0 45814 F Robb McKeown III MD High-risk OB/GYN 50.00 0.00 X 577004 0 41864 G Walton Smith MD High-risk OB/GYN 50.00 0.00 X 554833 0 44245 4675981 3960280 516447 22 0 1 0 JAC Consulting 4007 Meadowland Dr Prospect KY 40059 Customer Support, Consulting Services 154186 CompHealth PO Box 972651 Dallas TX 753972651 Physician Services 130213 2 10707 1400000 1410707 Net Patient Revenue 622110 16788343 16788343 16788343 178360 178360 Miscellaneous 812900 759 759 759 18378169 16789102 0 178360 13106121 12192401 913720 507158 484235 22923 1051995 1009060 42935 643107 598499 44608 162202 154137 8065 3006 2820 186 602993 585340 17653 9324 7645 1679 122335 21117 101218 697500 629902 67598 32860 32860 50074 50074 388986 388986 203110 203110 Medical Supplies 367356 367356 Bad Debt 242593 242593 Minor Equipment 146037 146037 Malpractice Expense 120000 120000 19999 3293 16706 18476756 17239465 1237291 0 830 830 -70894 -24638 419033 370580 110093 118185 4555048 3161659 1636280 1393389 5778333 7004686 7873675 8863032 4588259 4561464 5782483 6897222 10370742 11458686 X -2497067 -2595654 -2497067 -2595654 7873675 8863032 -98587 0 X 0 1 X 1 1 1 X RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED 1107544 608776 498768 3447504 2552883 894621 1393389 Deferred Compensation 6655403 Operating Lease 113363 Due from Affiliates, Net 235920 7004686 Operating Lease 113363 Deferred Compensation 6655403 Deferred Social Security Tax 128456 6897222 X Part X, Line 2: Excerpt from the consolidated audited financial statements of Covenant Health (Covenant), parent company to Fort Sanders Perinatal: Covenant and certain of its subsidiaries or controlled entities are exempt from income taxes pursuant to Section 501(c)(3) of the Internal Revenue Code. Accordingly, no provision for income taxes on qualifying activities has been made for these entities in the accompanying consolidated financial statements. However, certain entities and operations are subject to income taxes. Covenant had no unrecognized tax benefits at December 31, 2020 and 2019. As such, no interest or penalties were recognized in the consolidated financial statements related to unrecognized tax benefits. At December 31, 2020 and 2019, tax returns for 2017 through 2020 are subject to examination by the Internal Revenue Service. Covenant has no uncertain tax positions that would require financial statement recognition or disclosure under GAAP at December 31, 2020 and 2019. 0 1 0 0 0 0 0 0 0 James D VanderSteeg President & CEO 0 1241611 0 552000 0 155821 0 194950 0 25728 0 2170110 0 0 John T Geppi EVP/CFO 0 664082 0 527612 0 96255 0 11200 0 18160 0 1317309 0 0 Keith N Altshuler President & CAO 0 396755 0 95000 0 47450 0 11200 0 18965 0 569370 0 0 Brian J Lett VP - Financial Services 0 143273 0 23759 0 16662 0 7051 0 25759 0 216504 0 0 Periclis Roussis MD Perinatologist 1567105 0 49992 0 39726 0 16800 0 19390 0 1693013 0 0 0 Gary W Stephens MD Perinatologist 1168214 0 300 0 28140 0 16800 0 18521 0 1231975 0 0 0 Steven A Andrade MD High-risk OB/GYN 637410 0 40000 0 13257 0 15750 0 30064 0 736481 0 0 0 F Robb McKeown III MD High-risk OB/GYN 391179 0 183893 0 1932 0 16800 0 25064 0 618868 0 0 0 G Walton Smith MD High-risk OB/GYN 365269 0 183893 0 5671 0 16800 0 27445 0 599078 0 0 0 Part I, Line 3 Covenant Health, the parent company of Fort Sanders Perinatal Center, used the following methods in establishing the compensation of President/CEO, James D. VanderSteeg: compensation committee, independent compensation consultant, written employment contract, compensation survey or study, and approval by the board or compensation committee. Additional detail is provided in response to Form 990, Part VI, Section B, Lines 15a and 15b within Schedule O. Part I, Line 4b Covenant Health maintains a nonqualified deferred compensation ("NQDC") plan intended to support retention of President and CEO, James D. VanderSteeg. Employer contributions of $183,750 are reported as deferred compensation on Schedule J, Part II, Column C. Contributions along with 2020 earnings of $41,291 are subject to a substantial risk of forfeiture. Amounts are combined with other compensation and considered for reasonableness. Compensation procedures are discussed in detail in Schedule O (Form 990, Part VI, Section B, Line 15a). Form 990, Part III, Line 4a IMPACT OF COVID-19 In March 2020, the outbreak of the coronavirus disease 2019 ("COVID-19") was declared a public health emergency published by the Department of Health and Human Services and declared a national pandemic by the World Health Organization. The COVID-19 pandemic has had a major impact on the operations of all hospitals and affiliates included within the Covenant Health System. Anticipating a surge in COVID-19 cases, the State of Tennessee ordered all elective surgeries and diagnostic procedures be cancelled or postponed. Throughout the Covenant Health System, all non-urgent surgeries, elective ambulatory visits, and diagnostic tests were placed on hold. Physical therapy clinics also began restricting patients. As fears of the pandemic rose, non-COVID patient volumes were down significantly in the hospitals. Decreased volumes created a temporary need to reduce employee hours. Covenant Health, as one of the largest employers in the region, recognized that a large reduction in force would have a negative impact not only on the individual employees but also an aggregate impact to the local economy. To the extent possible, many employees were redeployed into jobs that were needed to help screen patients and keep facilities functioning under new protocols. Working environments were changed to accommodate social distancing, and employee schedules were adjusted when schools turned to virtual learning. Beginning with the onset of the pandemic in the U.S., hospitals and clinics were forced to quickly respond with new procedures to prevent the spread of the virus. COVID units were established at each hospital. In many cases, the costs of Personal Protective Equipment ("PPE") increased by over ten times the costs prior to COVID. Government support, including the Coronavirus Aid, Relief, and Economic Security Act ("CARES Act"), provided essential funding to hospitals and other healthcare entities. CARES Act Provider Relief Funds and applicable state grants (included as government grants in Form 990, Part VIII) helped offset costs including the following: establishing a COVID unit at the hospitals, providing face shields for all patient-facing employees, adding screeners at all points of entry, adding COVID testing as an additional screen for patients exhibiting symptoms, subsidizing increased costs of PPE and lab supplies, and, eventually, coordinating and administering the COVID vaccine to employees and throughout the community. Federal and State funding was also utilized to cover numerous routine operating expenses at the beginning of the pandemic that could not be covered by reduced operating revenue caused by significant declines in volumes due to cancelled and postponed procedures. In addition, Covenant Health and its affiliates took advantage of the deferral of the employer portion of social security in 2020 (to be repaid in 2021 and 2022), freeing up cash needed to pay for increased COVID related expenses. From July to December 2020, the hospitals were challenged with an increased surge of COVID-19 cases within East Tennessee, which increased patient loads to almost maximum capacity. Knox County, Tennessee was labeled a coronavirus hot spot while all available hospital staff were working diligently to save lives and help reduce the spread of the virus in the community. Hospitals were adding beds and working to secure the needed equipment to serve COVID patients. Employment costs continued to rise as hospitals dealt with staff fatigue and turnover. The impacts of COVID-19 stretch well beyond 2020 as hospitals continue to deal with the challenges of the pandemic and its lasting impact on healthcare professionals. While it was a difficult and challenging year for healthcare organizations around the world, including Covenant Health, it was also a year rich in learning and abundant blessings. A strong balance sheet and innovative ways to meet the challenges presented by the coronavirus, coupled with generosity from the community meant that each of our hospitals could continue to deliver award-winning care throughout the East Tennessee community. Form 990, Part VI, Section A, line 6 Covenant Health is the sole member of Fort Sanders Perinatal Center. Form 990, Part VI, Section A, line 7a Covenant Health's board of directors also serves as the board of directors for Fort Sanders Perinatal Center. Form 990, Part VI, Section A, line 7b Governance decisions of Fort Sanders Perinatal Center are subject to approval of the sole member, Covenant Health. Form 990, Part VI, Section B, line 11b The Covenant Health board of directors has delegated to its Finance Committee the full power and authority of the board to receive, review, approve, authorize the filing of, address and resolve audit or review issues, and otherwise take all action required or appropriate relative to IRS Forms 990 and other applicable tax filings. Prior to filing Form 990, management reviews with the committee the returns, discusses any material variations in the Form 990 as compared to those to be filed by the organization's affiliates, and answers any questions. At the conclusion of review and discussion, the Finance Committee approves the Form 990. Form 990, Part VI, Section B, line 12c Board members, officers, and employees are required to adhere to rules and policies regarding conflicts of interest. Covenant Health distributes a board-approved Code of Conduct to all employees. The Code covers among other subjects, conflicts of interest and requires disclosure and resolution of employee conflicts of interest. Additionally, officers, employed physicians, and highly compensated employees are required to complete and sign an annual conflict of interest disclosure statement. Board members' conflicts of interests are addressed in the corporate bylaws, and board members are required to complete and sign a conflict of interest questionnaire on an annual basis. The Integrity-Compliance Office maintains records that contain conflict of interest information obtained from board members, officers, and employees. These records are available to be queried prior to engaging in business transactions. The Chief Compliance Officer reviews conflict of interest data. Based on this information, the officer determines what conflicts of interest exist at that point in time. Between times when surveys are collected, board members are expected to disclose any new conflicts that have arisen that affect pending board decisions. Officers and other employees are expected to report conflicts to the Chief Compliance Officer as they arise. Depending on the nature of the conflict and the circumstances surrounding the conflict and transaction, the Chief Compliance Officer, senior leadership, or the board of directors may review the conflict of interest. When appropriate, these parties may also consult legal counsel. Restrictions imposed on persons with a conflict of interest are determined on a case by case basis. For Covenant Health employees, the Chief Compliance Officer in conjunction with Covenant Health Executive Leadership determines how to appropriately manage the conflict. In any conflict involving a board member, such member is expected to recuse himself or herself from voting on matters related to the conflict. Form 990, Part VI, Section B, line 15 Form 990, Part VI, Section B, Line 15a: Overall compensation policies for Fort Sanders Perinatal, Covenant Health (Parent Company), and affiliates are set by the Compensation Committee of the board of directors, ("the Committee"), which is comprised of independent members of the board. The Committee is guided in its decision-making process by an independent, nationally-recognized executive compensation consultant experienced in advising nonprofit hospital boards. The Covenant Health CEO is compensated by Covenant Health, and a detailed description of the compensation process is included on Covenant Health's Form 990. The process for Fort Sanders Perinatal's CEO is included in response to Part VI, Section B, line 15b. Form 990, Part VI, Section B, Line 15b: Base salary and annual bonus opportunities for Keith Altshuler, President and Chief Administrative Officer, are set by the Covenant Health CEO in consultation with the Senior Vice President-Human Resources, subject to approval of the Compensation Committee of the Covenant Health board of directors ("the Committee"), after review by and discussion with the executive compensation consultant ("the Consultant") to ensure that total compensation is reasonable and within a fair market value range. Salary ranges are based upon the recommendations of the Consultant made after comparison with similar jobs in similar size health systems across the nation. Bonuses are recommended by the CEO and approved by the Committee conditioned upon receipt of a written opinion from the Consultant that total compensation for the executive is reasonable and consistent with fair market value. Base salary is initially targeted at midpoint and may vary according to market conditions, performance, tenure, experience, special skills or qualifications, recruitment and retention challenges, and other relevant factors. Annual bonuses are designed to award 0-35% of base salary based upon system performance and accomplishment of certain targets established by the CEO. Base salaries and annual bonus opportunities for other officers and key employees are based on targets established by historical compensation consultant data and the Covenant Health Compensation department. Salary ranges are based upon comparison with similar jobs in similar size health systems across the nation. Base salaries and bonuses are approved by Executive Leadership predicated upon performance, and are reasonable and consistent with fair market value. Base salaries are initially targeted at midpoint and may vary according to market conditions, performance, tenure, experience, special skills or qualifications, recruitment and retention challenges, and other relevant factors. Annual bonuses are designed to award 0 - 20% of base salary based upon system performance and accomplishment of certain targets established by Executive Leadership. Form 990, Part VI, Section C, line 19 Fort Sanders Perinatal Center files a Joint Annual Report containing financial information with the Tennessee Department of Health. Per its tax-exempt bond provisions, Covenant Health, the parent company of the organization, is required to file quarterly and annual consolidated and obligated group financial statements and other documentation with various bond insurers and other agencies, including the Electronic Municipal Market Access (EMMA) service of the Municipal Securities Rulemaking Board (MSRB). Any member of such a repository has access to these financial statements. The organization's governing documents and conflict of interest policy are not made publicly available. Covenant Health 1420 Centerpoint Blvd Bldg C Knoxville TN 379321960 621646734 Supporting organization TN 501(c)(3) Line 12b, II N/A 0 Covenant HomeCare 1420 Centerpoint Blvd Bldg C Knoxville TN 379321960 621623114 Home health services TN 501(c)(3) Line 10 Covenant Health 0 Fort Loudoun Medical Center 1420 Centerpoint Blvd Bldg C Knoxville TN 379321960 621373691 Acute care hospital TN 501(c)(3) Line 3 Covenant Health 0 Fort Sanders Regional Medical Center 1420 Centerpoint Blvd Bldg C Knoxville TN 379321960 620528340 Acute care hospital TN 501(c)(3) Line 3 Covenant Health 0 Fort Sanders Foundation 1420 Centerpoint Blvd Bldg C Knoxville TN 379321960 621748601 Fundraising and patient outreach TN 501(c)(3) Line 12b, II Covenant Health 0 LeConte Medical Center 1420 Centerpoint Blvd Bldg C Knoxville TN 379321960 621114867 Acute care hospital TN 501(c)(3) Line 3 Covenant Health 0 Methodist Medical Center 1420 Centerpoint Blvd Bldg C Knoxville TN 379321960 620636239 Acute care hospital TN 501(c)(3) Line 3 Covenant Health 0 Morristown-Hamblen Hospital Association 1420 Centerpoint Blvd Bldg C Knoxville TN 379321960 620545814 Acute care hospital TN 501(c)(3) Line 3 Covenant Health 0 Parkwest Medical Center 1420 Centerpoint Blvd Bldg C Knoxville TN 379321960 581897274 Acute care hospital and behavioral health services TN 501(c)(3) Line 3 Covenant Health 0 Roane County Medical Center 1420 Centerpoint Blvd Bldg C Knoxville TN 379321960 680673354 Acute care hospital TN 501(c)(3) Line 3 Covenant Health 0 Thompson Cancer Survival Center 1420 Centerpoint Blvd Bldg C Knoxville TN 379321960 621250943 Cancer support center TN 501(c)(3) Line 3 Covenant Health 0 Thompson Oncology Group 1420 Centerpoint Blvd Bldg C Knoxville TN 379321960 621619239 Oncology services TN 501(c)(3) Line 3 Thompson Cancer Survival Center 0 Thompson Cancer Survival Center Foundation 1420 Centerpoint Blvd Bldg C Knoxville TN 379321960 582130450 Fundraising and patient outreach TN 501(c)(3) Line 12b, II Covenant Health 0 Cumberland Medical Center 1420 Centerpoint Blvd Bldg C Knoxville TN 379321960 620790132 Acute care hospital TN 501(c)(3) Line 3 Covenant Health 0 Claiborne Medical Center 1420 Centerpoint Blvd Bldg C Knoxville TN 379321960 464420358 Acute care hospital TN 501(c)(3) Line 3 Covenant Health 0 Fort Sanders West Associates 280 Fort Sanders West Blvd Ste 214 Knoxville TN 37922 621384171 Building ownership TN N/A 0 0 Smith & Hammaker Enterprises LLC 550 Fort Summit Way Knoxville TN 37915 270122252 Rental real estate TN N/A 0 0 Fortress Corporation 1420 Centerpoint Blvd Bldg C Knoxville TN 379321960 621308885 Management company TN N/A C 0 Covenant Medical Group Inc 1420 Centerpoint Blvd Bldg C Knoxville TN 379321960 621282917 Physician practice management TN N/A C 0 Knoxville Heart Group 1420 Centerpoint Blvd Bldg C Knoxville TN 379321960 271528941 Cardiology medical practice TN N/A C 0 East TN Cardiovascular Surgery Group Inc 1420 Centerpoint Blvd Bldg C Knoxville TN 379321960 621018541 Cardiovascular surgical practice TN N/A C 0 VortexT Analytics Inc 1420 Centerpoint Blvd Bldg C Knoxville TN 379321960 475296949 Computer programming services TN N/A C 0 SH Data Centers LLC 550 Fort Summit Way Knoxville TN 37915 814563094 Data storage TN N/A C 0 0 0 0 0 0 0 0 0 0 0 1 1 1 1 1 1 1 1 1