2018-11-14T13:13:51-06:00 2017-12-31 990 2017-01-01 620545814 Morristown-Hamblen Hospital Association MORR 8653746864 1420 Centerpoint Blvd Bldg C Knoxville TN 379321960 JOHN T GEPPI EVP/CFO 8653746864 2018-11-14 168.85.177.4 2018-11-14 13:59:13 ES P F4919464179932DABC08F68C8485D564CA479FAE 469132092D82E9B9F729922824776EAC2989A597 2017 2019-02-21 02:37:17Z Morristown-Hamblen Healthcare System James D VanderSteeg 100 Ft Sanders W Blvd Knoxville TN 37922 107333149 0 X www.morristownhamblen.com X 1952 TN See Schedule O.Morristown-Hamblen Hospital Association operates a 167-bed hospital in Morristown & provides quality healthcare services to the region. 20 18 777 64 686432 52608 45257 75977 101737445 106542746 3475 54044 524038 504137 102310215 107176904 10000 7050 0 0 29141272 30208524 0 0 0 67084870 70872135 96236142 101087709 6074073 6089195 60436690 57133635 9978898 9215266 50457792 47918369 X See Schedule O.Morristown-Hamblen Hospital Association 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 9192608 11700191 Oncology Services: See Schedule O.Oncology Services: Expenses - $9,192,608; Revenue - $11,700,191Morristown-Hamblen Hospital Association offers a comprehensive oncology program that includes radiation oncology. The radiation oncology department utilizes cutting edge technology to provide radiation therapy treatments to patients diagnosed with cancer and is staffed by a highly specialized team of radiation therapists, radiation oncologist, medical physicists, registered nurse and administrative staff. The department has a dedicated high speed CT scanner for treatment simulation, the latest technology in treatment planning and a state of the art TrueBeam linear accelerator and High Dose Remote Afterloader. The program offers both external beam radiation therapy and high dose radiation therapy depending on the patient diagnosis. In 2017, the program performed 353 new patient consultations and 6,882 radiation oncology treatments. The program is the only provider of radiation therapy within a 45 mile radius of Morristown. 8189214 7927101 Orthopedic Services: See Schedule O.Orthopedic Services: Expenses - $8,189,214; Revenue - $7,927,101Morristown-Hamblen Hospital Association's board-certified orthopedic surgeons are skilled in diagnosing and treating bone, muscle and joint disorders. Specialty areas include hip and knee replacement, fractures, complex rotator cuff/shoulder repairs, and hand surgery. The hospital treated 1,457 orthopedic surgery patients in 2017. Using a series of best practice guidelines and standard orders, the staff treats patients efficiently and provides the best opportunity for optimal outcomes.The physical therapy staff at Morristown-Hamblen Hospital Association specializes in treating a variety of orthopedic, neurologic, and medical problems, with an emphasis on helping individuals overcome disability caused by injury, developmental abnormality, or amputation. The staff provides medical rehabilitation for individuals with neck, lower back, arm and leg injuries; sports and overuse injuries, arthritis, stroke, brain injury, and post-amputation needs. Specialty programs include sports medicine and wound/burn care. 8008530 10066429 Cardiology: See Schedule O.Cardiology: Expenses - $8,008,530; Revenue - $10,066,429Morristown Hamblen Hospital Association offers a complete continuum of cardiovascular care including prevention and public education, diagnostic and interventional procedures and rehabilitative services. Cardiology provided approximately 18,047 diagnostic exams to both the inpatient and outpatient populations. Test included EKGs, echocardiograms, exercise stress test, nuclear stress test and holter monitoring. Approximately 1,040 diagnostic and interventional cardiac exams were performed utilizing the latest technology in angioplasty, drug eluting stents and closure devices. Six peripheral vascular procedures were performed. The Cardiopulmonary Rehab department provided services to 4,499 patients through Phase I, Phase II and Phase III sessions. 73896714 7050 76304297 As a full-service acute care hospital, Morristown-Hamblen Hospital Association features 24-hour emergency care, pulmonary services, diagnostic imaging services, a dedicated women's center and four hospital-owned OB/GYN practices, as well as a host of other specialty medical services. 73896714 7050 76304297 99287066 1 1 0 0 0 0 0 0 0 0 1 0 0 0 1 1 0 1 0 0 0 0 0 0 0 0 1 1 0 0 1 0 0 0 0 0 0 0 0 0 0 0 0 0 1 1 1 0 0 1 226 0 1 777 1 1 1 0 0 0 0 0 0 0 0 0 X 20 18 0 0 0 0 0 0 0 1 1 0 0 1 1 1 1 1 1 1 1 0 X Nancy Beck 8653746864 1420 Centerpoint Blvd Bldg C Knoxville TN 379321960 X James D VanderSteeg President & CEO 0.00 50.00 X X 0 1444249 177701 Ed Anderson Director 0.00 1.00 X 0 1296 0 Patrick Birmingham Director/VP Philanthropy 0.00 50.00 X 0 13846 0 Gerald Boyd Director 0.00 1.00 X 0 1437 0 Dr Willard Campbell Director 0.00 1.00 X 0 0 0 Dr Michael Casey Director 0.00 1.00 X 0 1971 0 Ronni Chandler Director 0.00 1.00 X 0 1193 0 Dr Mitchell Dickson Director 0.00 1.00 X 0 2014 0 James Fitzsimmons Chairman 0.00 1.00 X 0 1415 0 Jim Johnson Jr Director 0.00 1.00 X 0 948 0 Amber Krupacs Director 0.00 1.00 X 0 1031 0 Eddie Mannis Director 0.00 1.00 X 0 0 0 Timothy Matthews Director 0.00 1.00 X 0 0 0 Larry Mauldin Director 0.00 1.00 X 0 661 0 Dr Joseph Metcalf Director 0.00 1.00 X 0 29957 0 Alvin Nance Director 0.00 1.00 X 0 1402 0 Linda Ogle Director 0.00 1.00 X 0 0 0 Roger Osborne Director 0.00 1.00 X 0 692 0 Carl Storms Director 0.00 1.00 X 0 1169 0 Richard Swanson Director 0.00 1.00 X 0 0 0 David C Verble Director 0.00 1.00 X 0 0 0 John T Geppi EVP/CFO 0.00 50.00 X 0 884318 28575 Anthony L Spezia CEO - Emeritus 0.00 40.00 X 0 513410 27087 Gordon E Lintz President & CAO 50.00 0.00 X 0 350606 19494 Jeremy Biggs Former Interim President/CAO 0.00 50.00 X 0 383345 12095 Amy Herndon VP - Financial Services 50.00 0.00 X 127756 0 20475 Jacqueline Hounshell Former VP - Financial Services 0.00 50.00 X 0 127100 25442 Wilma G Hart-Flynn VP - Chief Nursing Officer 50.00 0.00 X 184442 0 9247 Victoria Adams Pharmacist 50.00 0.00 X 115043 0 25878 Robert Drinnon Medical Physicist 50.00 0.00 X 168641 0 30471 Sarah G Ramsey Pharmacist 50.00 0.00 X 103908 0 10541 Iva Starnes Radiation Oncology Dosimetrist 50.00 0.00 X 104665 0 28415 Pamela Western Pharmacist 50.00 0.00 X 124052 0 17599 Billy Black Former Highest Paid Employee 0.00 40.00 X 0 229725 21448 Peter Clark Former Highest Paid Employee 0.00 40.00 X 0 559259 16991 Frank Ellis Former Highest Paid Employee 0.00 40.00 X 0 340463 17591 928507 4891507 489050 11 1 1 0 Aramark Healthcare 12483 Collections Center Dr Chicago IL 60693 Clinical Engineering & Technology 1255983 Sodexo Inc and Affiliates PO Box 536922 Atlanta GA 30353 Cafeteria Management 673677 Angelica Textile Services Inc PO Box 535122 Atlanta GA 30353 Linen Service 467252 Medic Regional Blood Center 1601 Ailor Avenue Knoxville TN 37921 Blood Processing 413334 Otis Elevator PO Box 730400 Dallas TX 75373 Elevator Servicing 296469 19 73811 1816 350 200 75977 Medical Services 622110 105406511 105406511 Laboratory 621511 565481 565481 Meaningful Use 900099 519693 519693 Rental Inc - Affiliate 531120 51061 51061 106542746 7826 7826 229877 108926 120951 120951 120951 93537 47319 46218 46218 46218 Cafeteria 722514 250432 250432 Gift Shop 453220 65252 65252 Vending 454210 28012 28012 39490 20753 18737 383186 107176904 105998018 686432 416477 7050 7050 345852 345852 24796483 24354884 441599 381164 377223 3941 2916787 2849059 67728 1768238 1715124 53114 8025617 7850337 175280 187884 187884 5432329 5316711 115618 156032 151349 4683 797767 726561 71206 2324680 2110905 213775 53144 47785 5359 24202 21043 3159 71422 71422 6355106 6355106 149754 146365 3389 Supplies & Equipment 20892335 20880473 11862 Charity Care 16664036 16664036 Bad Debt 6443093 6443093 Sponsorship 1980569 1980569 1314165 1217971 96194 101087709 99287066 1800643 0 1401 1400 -569205 -519787 9061967 8541462 1457586 1502608 601440 364769 120669852 82310372 41027067 38359480 8819138 8819138 37296 64565 60436690 57133635 6751558 5943573 3160658 2988943 66682 282750 9978898 9215266 X 50457792 47918369 50457792 47918369 60436690 57133635 X 6089195 -8628618 X X 0 1 X 1 0 X 2230137 2230137 59231193 35102432 24128761 58526186 47067165 11459021 682336 140775 541561 38359480 Due to Affiliates, Net 26596 Due to Third Party Payors 191589 Long-term Deferred Compensation 64565 282750 X Part X, Line 2: Note B to the consolidated audited financial statements of Covenant Health, parent company to Morristown-Hamblen Hospital Association, reads in part: "Income Taxes: 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 (see Note G). Note G reads in part: "Covenant had no unrecognized tax benefits at December 31, 2017 and 2016. As such, no interest or penalties were recognized in the Consolidated Statements of Operations and Changes in Net Assets related to unrecognized tax benefits. At December 31, 2017, tax returns for 2014 through 2017 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, 2017 or 2016." 1 1 X 1 X 1 X 1 1 1 0 1 1 8356249 3312030 5044219 0.05330 25003487 22426600 2576887 0.02720 10530 13479 0 0.00000 33370266 25752109 7621106 0.08050 4835101 2154441 2680660 0.02830 35650 35650 0.00040 4870751 2154441 2716310 0.02870 38241017 27906550 10337416 0.10920 68 68 0.00000 8103 8103 0.00010 19366 19366 0.00020 1252 1252 0.00000 85 85 0.00000 28874 28874 0.00030 1 6443093 1172643 18116926 17698267 418659 X 1 1 1 None 1 1 Morristown-Hamblen Healthcare System 908 W Fourth North St Morristown TN 37814 www.morristownhamblen.com 00000073 X X X Morristown-Hamblen Hospital Association 1 0 0 1 X X X X X X X 17 1 0 1 1 X www.morristownhamblen.com X 1 17 1 www.morristownhamblen.com 0 1 X 200.000000000000 300.000000000000 X X 1 1 X X X 1 X https://www.morristownhamblen.com/financial-assistance/ X https://www.morristownhamblen.com/financial-assistance/ X https://www.morristownhamblen.com/financial-assistance/ X X X X X X 1 X 0 X X X 1 X 0 0 Morristown-Hamblen Hospital Association Part V, Section B, Line 5: Morristown Hamblen Hospital Association was guided in the assessment process by representatives of several community organizations whose expertise and relationships helped the hospital access the general population as well as the most vulnerable residents of Hamblen County. Assessment partners were recruited from the broader public health system including staff from the local health department, United Way director, local school system, court system, public safety, senior programs, and social service organizations that serve the needs of the community's most vulnerable and at-risk population. The assessment process began with a half-day community health forum using an assessment tool "Forces of Change" by the Center for Disease Control. Thirty participants representing a diverse make up of stakeholders gave input into the significant issues facing Hamblen County. The Data Team members represented the health department, United Way, the Senior Citizens Center, the Hamblen County Health Council, Emergency Medical Services, Douglas Cherokee and Smoky Mountain Home Health and Hospice. These community leaders analyzed and distilled volumes of data into a short list of the most significant health issues affecting Hamblen County.Part V, Section B, Line 4:It was determined per audit that while the CHNA was prepared as of December 31, 2016, it was completed on May 8, 2017 with board approval. Morristown-Hamblen Hospital Association Part V, Section B, Line 6b: Morristown-Hamblen Hospital Association's (MHHA) CHNA was conducted with the following organizations and individuals: * Hamblen County Health Department * Hamblen County Health Council * Hispanic Outreach Leadership of the Lakeway Area * Helping Hands Clinic * Helen Ross McNabb Center * Smoky Mountain Home Health and Hospice * Hamblen County Mayor's Office * Hamblen County Jail * Boys and Girls Club * Coordinated School Health * Chamber of Commerce * Ministerial Association Temporary Shelter * Hamblen County Sheriff's Office * Hamblen County United Way * Hamblen County Housing Authority * Douglas Cherokee Economic Authority, Inc * ALPS Adult Day Services * Morristown Police Department * Department of Human Services Morristown-Hamblen Hospital Association Part V, Section B, Line 11: Of the significant findings identified in the CHNA, Morristown-Hamblen Hospital Association is focusing its resources on the following priorities: prescription drug abuse; cancer; and heart disease by targeting the risk factors of smoking and obesity. Although not providing mental health services directly, the hospital works with local mental health resources. Prescription drug abuseMorristown-Hamblen Healthcare System leaders are active members of the local Prescription Drug Task Force which also includes local judicial and health department officials. The Task Force is currently developing solutions for prescription drug abuse in Hamblen County. Education was recently provided to community leaders on the significance of the issue through the Leadership Morristown program.SmokingMorristown-Hamblen Healthcare System continues to provide quarterly "Freedom from Smoking" classes through the hospital's cardiopulmonary rehab program.Be Smart, Don't Start - This is a collaboration between the hospital, the health department and the Department of Education to reduce smoking among teens in Hamblen County. The campaign was launched in August of 2017 targeting middle and high school students. Students signed a pledge and a banner which is hung in their gym as a reminder of their commitment. This was also done at the local Boys and Girls Club.ObesityTwice yearly Morristown-Hamblen Healthcare System participates with other Covenant Health organizations in a Biggest Winner employee health improvement program. Each program cycle can include up to 20 employees who focus on weight loss and improving personal health biometrics. Local greenways and trails are used for the exercise component. Pre- and post-testing are provided for participants to track their health improvements. In 2017, 8 employees joined the program and are continuing into 2018.Morristown-Hamblen Healthcare System implemented a Get on Trails program in 2017 to encourage residents to get out and walk. Participants agree to walk 25 miles during a two month period, record their trails and distances, and redeem their hard work for an embroidered patch. Each subsequent year will have a new patch to be earned. Morristown-Hamblen Healthcare System partnered with local Panther Creek State Park and publicized this program to its employees and to the community at large. In 2017 37 participants completed the 26.2 mile program at Panther Creek State Park.Healthy Hamblen County CommissionMorristown-Hamblen Healthcare System participates in a series of community exercise events. Local patients and residents are able to participate in walk events and try multiple types of exercise and fitness opportunities. This program is ongoing. Friday Fitness ClubMorristown-Hamblen Healthcare System will be initiating a Friday Fitness Club in the fall of 2018. This is a collaborative effort with the Hamblen-County Parks and Recreation and state parks to sponsor a joint hike one Friday each month.CancerMorristown-Hamblen Healthcare System offers a Low-dose CT scan as a diagnostic screening to those at high risk for lung cancer. Physician education efforts are underway to educate primary care physicians on the benefits of this tool. Recently a program was provided at Cancer Committee with the purpose of increasing participation rates.Morristown-Hamblen Healthcare System participates in the Thompson Cares Breast Health Program. This is a continuing program which provides women with opportunities to receive screening mammograms regardless of their ability to pay. Mental HealthMorristown-Hamblen Healthcare System continues to collaborate with local mental health resources as needed and as services are available. The hospital does not provide mental health services. Morristown-Hamblen Hospital Association Part V, Section B, Line 16j: Please see the explanation to Part VI, Line 3. 3 1 - Ambulatory Surgery Center 908 W Fourth North Street Morristown TN 37814 Outpatient surgery center 2 - Morristown Regional Diagnostic Center 901 W Fourth North Street Morristown TN 37814 Outpatient diagnostic center 3 - Morristown Sleep Disorder Center 924 W Fourth North Street Morristown TN 37814 Sleep diagnostic center Part I, Line 3c: In addition to the FPG (federal poverty guidelines), Morristown-Hamblen Hospital Association utilizes an asset test as a factor in determining eligibility for free or discounted care. Ten percent (10%) of the patient/guarantor's net assets will be added to income for determination of total annual income. The guidelines for determining assets include, but are not limited to, primary dwelling (and attached land), automobiles, liquid assets, investments, farm land, business property, rental property, farm and/or business equipment including livestock and crops. All real property will be considered at fair market value. The values of both real and personal property will be reduced by any existing liabilities incurred by the applicant in obtaining the assets (net assets). Part I, Line 6a: Covenant Health, the parent company of Morristown-Hamblen Hospital Association, dba Morristown-Hamblen Healthcare System, and other affiliated acute care hospitals, prepares an annual Report to the Community on behalf of the entire system. Part I, Line 7: Amounts on Lines 7a-7c and certain program costs included on Line 7g are from the hospital's cost accounting system, which addresses all patient segments. Other community benefit expenses are at cost from the general ledger. Part I, Line 7g: Subsidized health services includes the difference between the cost of services and the payments received for those services. The cost of providing in-patient behavioral health exceed the payments received by $464,292. The total also includes $2,216,369 in physician sponsorship fees. Part I, Line 7, Column (f): The Bad Debt expense included on Form 990, Part IX, Line 25, Column (A), but subtracted for purposes of calculating the percentage in this column is $ 6,443,093. Part II, Community Building Activities: Morristown-Hamblen Hospital Association (MHHA) cares for the whole person and recognizes that improved social and economic conditions may lead to the improved health and well-being of the community. The hospital's community building activities and those of its parent organization, Covenant Health, address many of the root causes of health problems, such as poverty and homelessness, and help find solutions to alleviate the symptoms.An allocation of the Parent's community building expenditures has been made to each member hospital in proportion to the financial contribution of each to the health system. Covenant Health is not a hospital and does not file Schedule H with its Form 990. Contributions in 2017 were made to organizations meeting the community's needs by providing: *The basic needs of life including temporary shelter, food and clothing - Catholic Charities and Sacred Heart Church *Youth mentoring, development and after-school programs - Emerald Youth Foundation, and Great Smoky Mountain Council - Boy Scouts of America *Business recruitment and marketing initiatives that boost economic development - Innovation Valley, Inc. and the East Tennessee Economic Development Agency *Leadership development programs and workshops - Leadership Knoxville and YWCA *Assistance and special programs for at risk, physically challenged, abused and neglected children - Sertoma Center, Inc. and Variety of Eastern Tennessee (local chapter of Variety-The Children's Charity) *Improve access to health services - Interfaith Health Clinic, Knoxville Medical Mission Foundation and St. Mary's Legacy Clinic *Programs targeting cancer patients and their families - Cancer Support Community, Inc. and Komen Knoxville Race for Cure Part III, Line 2: Bad debt expense on Part III, Line 2 is the amount recorded in the organization's financial statements. Discounts and payments on patient accounts are netted against bad debt. The hospital complies with a 2016 change in IRC Section 501(r) requirements for reporting charity care. Part III, Line 3: At regular intervals, the Vice President of Patient Account Services analyzes all self-pay accounts receivables to identify patients who may have been eligible for charity care during a particular period, or year. Because this analysis does not yield a final determination of eligibility due to various factors including but not limited to charity applications still in process, failure of eligible patients to submit their charity application, and applications still under consideration, further analysis of the accounts comprising the self-pay accounts receivable is conducted. The accounts for which a patient was contacted to apply for charity care include an identifier; these charity-identified accounts are then categorized according to status. A ratio of the dollar amounts of those accounts whose charity application is in process or has been approved divided by the total self-pay accounts receivable is computed. This ratio is applied to the bad debt expense total to determine the estimated amount of the bad debt expense attributable to patients eligible for charity care according to the hospital's policy. Part III, Line 4: Note B to the 2017 Audited Consolidated Financial Statements of the Covenant Health system, of which Morristown-Hamblen Hospital Association is a member, reads in part: "Patient accounts receivable are reported net of both an estimated allowance for uncollectible accounts and an estimated allowance for contractual adjustments. The contractual allowance represents the difference between established billing rates and estimated reimbursement from Medicare, TennCare and other third-party payment programs. The allowance for uncollectible accounts is estimated based upon the age of the patient accounts receivable, prior experience and any unusual circumstances (such as local, regional or national economic conditions) which affect the collectability of receivables, including management's assumptions about conditions it expects to exist and courses of action it expects to take. Covenant's policy does not require collateral or other security for patient accounts receivable and Covenant routinely accepts assignment of, or is otherwise entitled to receive, patient benefits payable under health insurance programs, plans or policies." Part III, Line 8: Costing Methodology: MHHA used a combination of sources in calculating Medicare allowable costs on Part III, Line 6 including its cost accounting system, general ledger accounting system, and facility-specific analyses and calculations. Part III, Line 9b: Morristown-Hamblen Hospital Association (MHHA) utilizes a look-back method to determine the AGB (amounts generally billed) to establish the maximum amount that will be charged to FAP-eligible individuals for emergency or other medically necessary care. Self-pay patients automatically receive a 71% discount on charges based on the facility's calculated AGB. Federal poverty guidelines are utilized in the determination of charity care eligibility. Patients who are unable to pay and have exhausted all sources of payment assistance may qualify for charity care. A sliding scale is used for extending charity care utilizing the income levels reported under the federal poverty guidelines. Patients/guarantors with income that falls below 200% of the federal poverty guidelines receive 100% charity care. Patients/guarantors with income of 201-300% of the federal poverty guidelines receive 90% charity care. For catastrophic illness, exceptions to income and asset limitations may be made on a case-by-case basis. The amount considered for charity will be based upon the evaluation of the patient's/guarantor's ability to pay.MHHA makes reasonable efforts to determine a patient's eligibility under the facility FAP. All collection activity will be halted if a charity application is received and will remain on hold until a determination is made by MHHA and communicated in writing to the responsible party. If the charity application is approved, all collection activities taken will be reversed and any amounts paid above the amount required will be refunded. Patients/guarantors who qualify for partial financial assistance are responsible for paying any balance remaining after the charity adjustment and third party payments. Once an account has been processed internally through routine collection channels, it may be assigned to an attorney or agency for collection. MHHA does not sell any accounts receivable accounts to outside firms. All accounts remain property of and under the policies set by MHHA. MHHA will not defer or deny medically necessary care because of nonpayment for previously provided care whether it was covered or not covered under the charity program. Part VI, Line 2: While the Community Health Needs Assessment is a formal means by which the health system assesses the needs of the community, there are many informal linkages that give the Covenant Health hospitals a sense of community issues and needs. Morristown Hamblen Healthcare System obtains additional community information through the service of its employees with the Hamblen County Health Council, the Chamber of Commerce, and Rotary Clubs, and through its community health outreach in the local shopping mall. Part VI, Line 3: Morristown-Hamblen Healthcare System informs patients and other persons who may be billed for patient care about its financial assistance policies by posting signs in highly visible areas of the hospital and including information about the financial assistance policy in patient booklets placed in all inpatient rooms. In addition, the FAP and application are available via the facility website and notice of the availability of financial assistance is communicated via patient billing statements. The following sign is posted in the main registration area:Financial Assistance: Covenant Health is committed to providing quality health services in a caring environment. It is the expressed philosophy of Covenant Health, and its member hospitals, that no one should be denied necessary medical care because of the inability to pay. In conjunction with this philosophy, staffs of Morristown Hamblen Healthcare System are available to assist you with your financial needs. If you are an uninsured person with no public or private source of payment for medical services, Morristown Hamblen Healthcare System in compliance with Tennessee Code Annotated, Title 47, Chapter 18 and Title 68, will provide at a reduced rate, medically indicated services. A financial counselor is available to assist you with these matters by calling 423-492-5053, Monday through Friday between the hours of 8:00 a.m. and 4:00 p.m.Morristown-Hamblen Hospital Association employs full time financial counselors who meet with each uninsured patient. In addition, Morristown-Hamblen Hospital Association assists them with completion of a TennCare application and ensures the application is directed to the appropriate Department of Human Services.The Charity Care Policy states that patients who are unable to pay and have exhausted all sources of payment assistance may be screened for potential charity care eligibility. According to the policy, the financial counselors initiate screening of the patient and/or guarantor by obtaining income and other financial information to determine eligibility for charity care or discounted services. Part VI, Line 4: Hamblen County, Tennessee, is the primary market area for Morristown-Hamblen Hospital Association. Hamblen County is a rural community with close proximity to the metropolitan Knoxville area. Morristown-Hamblen Hospital Association shares its market with Lakeway Hospital. According to internal hospital data for 2017, 57% of the patient encounters (inpatient and outpatient) were residents of Hamblen County.According to 2017 data from the County Health Rankings, Robert Wood Johnson Foundation, the population of Hamblen County numbers approximately 63,402. The population is evenly split between men and women. Persons 65 and older account for 17.9% of the population. Hamblen County has one of the largest Hispanic populations in East Tennessee at 11%. The median income of Hamblen County is $39,604 per household with 26% of the population living below the poverty level. Unemployment is at 6.3%.According to the 2017 County Health Rankings Report by the Robert Wood Johnson Foundation/University of Wisconsin Population Health Institute, Hamblen County residents have the following health indicators that are above the national benchmarks: Hamblen - TN - National Adult Smoking: 24% - 22% - 14% Adult Obesity: 31% - 32% - 26% Teen Birthrate: 58 - 42 - 17 of every 1,000 teenage girls Poor or Fair Health: 23% - 20% - 12% Physical Inactivity: 30% - 30% - 19% Drug Overdose Deaths: 27 - 20 - 9 per 100,000 population Part VI, Line 5: Morristown-Hamblen Hospital Association ("MHHA"), in conjunction with its parent company, Covenant Health, is committed to providing quality health care services in a caring environment that fulfills the needs of patients, physicians, employers, employees, and the community.Covenant Health's Board of Directors, which is comprised of independent community leaders with diverse and professional backgrounds, serves as MHHA's Board. The board sets policies and provides oversight of MHHA.MHHA maintains an open medical staff, with privileges available to all qualified physicians and healthcare professionals. Additionally, the hospital operates an active and accessible emergency department open to all persons, regardless of the ability to pay.The hospital uses any available surplus of receipts over disbursements to expand and modernize its facilities and to advance its medical training and education programs, both of which serve to improve patient care and serve the unmet needs of the community.MHHA provides numerous education and outreach efforts to the community, ranging from health screenings and fairs to presentations to area groups. The various programs and services are provided complimentary or at a minimum charge. These are offered throughout the year based upon activities and services which the hospital believes will serve a bona fide community need. In addition to health education programs and activities, the hospital participates in other community outreach and support programs, including various community activities to benefit civic organizations, local schools, and members of the community. The hospital values the relationships maintained with the community organizations and provides conference rooms for a variety of meetings, seminars, and educational programming at no charge to outside groups. Additionally, the hospital provides other in-kind services and staff support to many area support groups. In these and other respects, the hospital is organized and operated in a manner that promotes the health of the community and therefore fulfills charitable purposes within the meaning of Internal Revenue Code Section 501(c)(3). Part VI, Line 6: Morristown-Hamblen Hospital Association (MHHA), 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. As a system, Covenant assures that business processes are in place in each facility to measure and report quality; to increase the role of compliance; and to integrate risk management, utilization review, peer review, mandatory reporting and quality improvement into one cohesive function. In this way, the system is able to use analytic tools to help identify any systemic inability to satisfy the various requirements on the part of the facilities. MHHA's patients benefit from the availability of and ease of access to Covenant Health affiliated entities for services not provided by the hospital itself. Transfer or referral to such services is expedited and coordinated to help create a seamless continuum of care. A full range of community mental health and psychiatric hospital services are available within the system that help support the hospital's emergency room as well as provide an accessible and efficient pathway for those patients who require such services post discharge. Other specialized services such as inpatient rehabilitation, home health and hospice services are provided by affiliated entities. The Covenant Health system also enhances the patient's access to care through the provision of outpatient services in a variety of settings located throughout the service area. These include a diabetes center, wound care center, bariatric surgery center, pulmonary rehabilitation programs and ambulatory infusion centers.Through this combination of resources and the collective development, implementation and monitoring of clinical protocols and other improvement initiatives, the affiliated entities of Covenant Health are able to deliver higher quality care in a more efficient manner than could be achieved working independently. X 1 1 0 1 0 0 0 0 0 0 0 James D VanderSteeg President & CEO 0 915074 0 405000 0 124175 0 154000 0 23701 0 1621950 0 0 John T Geppi EVP/CFO 0 575805 0 214200 0 94313 0 10600 0 17975 0 912893 0 0 Anthony L Spezia CEO - Emeritus 0 216489 0 0 0 296921 0 10600 0 16487 0 540497 0 0 Gordon E Lintz President & CAO 0 244971 0 60000 0 45635 0 10600 0 8894 0 370100 0 0 Jeremy Biggs Former Interim President/CAO 0 277385 0 60000 0 45960 0 10600 0 1495 0 395440 0 0 Jacqueline Hounshell Former VP - Financial Services 0 98615 0 10000 0 18485 0 4344 0 21098 0 152542 0 0 Wilma G Hart-Flynn VP - Chief Nursing Officer 176290 0 5000 0 3152 0 0 0 9247 0 193689 0 0 0 Robert Drinnon Medical Physicist 168562 0 0 0 79 0 5338 0 25133 0 199112 0 0 0 Billy Black Former Highest Paid Employee 0 181862 0 18225 0 29638 0 7950 0 13498 0 251173 0 0 Peter Clark Former Highest Paid Employee 0 206781 0 298285 0 54193 0 7950 0 9041 0 576250 0 0 Frank Ellis Former Highest Paid Employee 0 192472 0 84292 0 63699 0 7950 0 9641 0 358054 0 0 Part I, Line 1a Tax gross-up payments related to deferred compensation are provided to certain executives and managers. These are treated as taxable compensation to the recipients. Part I, Line 3 Covenant Health, the parent company of Morristown-Hamblen Hospital Association, used one or more of the methods listed in establishing the compensation of James D. VanderSteeg. Please see the statement to Core, Part VI, Section B, Line 15a on Schedule O. Part I, Line 4b James VanderSteeg, President & CEO, was a participant in a nonqualified deferred compensation (NQDC) plan. The NQDC plan was established in 2016. Employer contributions to the plan during 2017 totaled $143,400, which is reported in Col. C of Schedule J, Part II. Interest earned during 2017 of $10,080 is not required to be reported in compensation in Part II, as Mr. VanderSteeg is not vested in the plan. Anthony Spezia, CEO-Emeritus, was a participant in two nonqualified deferred compensation plans, which are referred to as Plan A and Plan B. In 2011 Mr. Spezia vested in Plan A, and the accumulated balance as of August 1, 2011 was included in his 2011 taxable income. An Amendment to Plan A was adopted effective August 1, 2011 which terminated further accruals (contributions) to the plan. However, the Amendment allowed the accrual of interest on undistributed amounts which were subject to risk of forfeiture until such time as indicated in the Amendment. Interest earned by Plan A and Plan B during 2017 was $199,910 and is not required to be reported in compensation in Part II as Mr. Spezia is not vested in the 2017 earnings on Plan A or Plan B. There were no employer contributions to Plan A during 2017. Plan B was established in 2011. Interest earned by Plan B during 2017 is included in the Plan A 2017 earnings amount. It is not required to be reported in compensation in Part II as Mr. Spezia is not vested in the 2017 earnings to Plan B. There were no employer contributions to Plan B during 2017. Form 990, Part III, Line 1 2017 Report to the Community Covenant Health is a comprehensive, community-owned, not-for-profit health system serving 23 counties in East Tennessee. Nine acute care hospitals located in Knoxville and surrounding areas comprise the foundation of the health system. Additional outpatient and specialty care departments are located throughout the region providing diagnostic and surgery services, mental health and cancer treatments, and therapy and home health services. Over 10,000 employees and 1,500 affiliated physicians are dedicated to improving the quality of life for the more than one million patients and families served each year. Member organizations: Hospitals Claiborne Medical Center Cumberland Medical Center Fort Loudoun Medical Center Fort Sanders Regional Medical Center LeConte Medical Center Methodist Medical Center of Oak Ridge Morristown-Hamblen Healthcare System Parkwest Medical Center Peninsula Hospital, a division of Parkwest Medical Center Roane County Medical Center Outpatient and Specialty Care Covenant HomeCare and Hospice Covenant and Methodist Therapy Centers Fort Sanders West Diagnostic Center Fort Sanders West Outpatient Surgery Center Morristown Regional Diagnostic Center Patricia Neal Rehabilitation Center Peninsula Outpatient Centers Thompson Cancer Survival Centers Covenant Breast Centers Covenant Joint Centers Covenant Sleep Centers Claiborne Nursing Home Fort Sanders Sevier Nursing Home Physician Services Covenant Medical Group, Inc. Other Programs and Services Fortress Corporation Fort Sanders Health and Fitness Center Nanny's Nursery Covenant Staffing Services Tennessee Wesleyan University - Fort Sanders Nursing Foundations Fort Sanders Foundation Methodist Medical Center Foundation Morristown-Hamblen Hospital Foundation Thompson Cancer Survival Center Foundation Patient Care Summary Population of 23-County Service Area 1,427,213 (2010 Census) 2014 2015 2016 Patient Care Summary 67,235 68,193 68,320 (Excludes nursing home) Inpatient Surgeries 16,908 16,585 17,426 Outpatient Surgeries 29,644 29,265 29,480 ED Visits 317,575 328,360 327,724 Outpatient Visits 1,040,593 1,061,082 1,091,009 Physician Office Visits 499,881 548,210 580,660 Leadership Jim VanderSteeg, Covenant Health's President and CEO, remains committed to the mission of improving the quality of life through better health and a vision of being the region's premier healthcare network through clinical and service excellence. Everyone associated with the health system knows and is committed to the following Pledge of Excellence: * The patient always comes first. Our patients are the reason Covenant Health exists, and it is both a privilege and a high calling to care for them. * We are committed to excellence. Our patients and our coworkers in all areas of the organization deserve nothing less. * First and best choice - Covenant Health will strive to be the organization that our communities instinctively seek out when they need health care. We will continually work to be the best in every aspect of the care we provide. Jim VanderSteeg and the executive leadership team have stated: * We will lead courageously, being proactive in delivering excellent care and meeting the challenges of today's healthcare environment. * We will be honest in our business dealings and in our interactions with co-workers, patients,and the communities we serve. * We will use our resources wisely as we deploy medical services and technology in our local communities. * We will collaborate to create a workplace culture where people know they are valued and how they connect to the mission and vision of Covenant Health. * We will encourage innovative thinking and creative ideas from all employees in order to make Covenant Health the best it can be. Awards Several Covenant Health hospitals received top recognitions from national organizations in 2017: * Cumberland Medical Center in Crossville was named the Upper Cumberland's only "Top 100 Rural & Community Hospital" by iVantage Health Analytics and The Chartis Center for Rural Health. It is one of only two hospitals in Tennessee to earn the 2017 designation. * For the second year in a row, Fort Sanders Regional Medical Center in Knoxville has been named to a national list of "100 Hospitals and Health Systems with Great Oncology Programs" by Becker's Hospital Review. The Becker's editorial team selected hospitals and health systems that lead the way in oncology expertise, outcomes, research and treatment options. * LeConte Medical Center in Sevierville was named among "100 Great Community Hospitals" by Becker's Hospital Review, also for the second year in a row. Hospitals on the list are recognized for quality, patient satisfaction and overall excellence, and play a key role in their communities as the centerpiece for health care. * The transition program at Peninsula, the behavioral health division of Parkwest Medical Center, has been recognized as a Program of Excellence by the Tennessee Association of Mental Health Organizations, and has achieved the lowest readmission rate to Peninsula Hospital compared to the past two years. * Claiborne Health and Rehabilitation Center, affiliated with Claiborne Medical Center in Tazewell, earned a 2017 Bronze National Quality Award from the American Health Care Association and National Center for Assisted Living. The award honors the facility's commitment to improving quality of care for seniors and persons with disabilities. Claiborne Health and Rehabilitation Center was one of 520 long-term facilities in 46 states and one of 10 nursing homes and two assisted living facilities in Tennessee to receive the award. * Fort Sanders Sevier Nursing Home, affiliated with LeConte Medical Center in Sevierville, was named a 2017 Best Nursing Home by U.S. News and World Report. To be included in the list, the nursing home had to earn at least four stars (out of five) on the Centers for Medicare and Medicaid Services "Nursing Home Compare" rating for the 10 months of federal reports ending in August 2017, and had to earn a 4.5 or higher for at least five of those months. Form 990, Part III, Line 1 Achievements Covenant HomeCare has been recognized as the first home health agency in Tennessee and the third in the nation to reach Milestone 5, the highest level of a five-step Home Health Quality Improvement initiative aimed at preventing heart attack and strokes. The HHQI Cardiovascular Health Improvement initiative is an ongoing effort to reduce the incidence of heart attack and stroke among home health patients through a series of best practice interventions. It tracks data on aspirin and tobacco usage, blood pressure and cholesterol levels among home health patients with ischemic vascular disease. Covenant HomeCare offers skilled nursing, certified nursing assistants, physical therapy, speech therapy, occupational therapy and medical social services. It is the area's largest non-profit home health and hospice provider and serves more than 4,700 patients annually in 17 counties through branches in Knoxville, Oak Ridge and Morristown. Covenant HomeCare and Hospice scored 100% on CMS (Centers for Medicare and Medicaid) quality measures for patient care, including evaluation and treatment for symptoms such as pain and shortness of breath, and patients' treatment preferences related to hospice care. Stroke Care Covenant Health has the region's only stroke hospital network for delivering advanced diagnostics and treatment to halt the devastating effects of stroke. Residents in any of the 23 counties served have increased rates of survival due to a hub-and-spoke model for stroke treatment. At the hub of the network are Fort Sanders Regional Medical Center and Patricia Neal Rehabilitation Center. An emergency department physician at any of the Covenant Health hospitals can confer with colleagues and administer the clot-busting drug tPA (tissue plasminogen activator) before transporting the patient to Fort Sanders Regional. * Fort Sanders Regional Medical Center is an accredited Comprehensive Stroke Center, offering both advanced stroke treatment and the stroke rehab services of the Patricia Neal Rehabilitation Center. * Other Covenant Health member hospitals are certified as advanced primary centers for stroke care, or are preparing to be certified as "stroke ready" facilities. * Eighty-three percent of patients with stroke symptoms see an emergency physician within 15 minutes of arrival at Covenant Health hospitals, compared to a national average of 67%. * Seventy-one percent of patients who have a neurological intervention for stroke at Fort Sanders Regional do not need a wheelchair when they are discharged from the hospital. * Fort Sanders Regional Medical Center exceeds the national average of patients who are able to go directly home after stroke treatment. Cancer Care The Covenant Health breast centers offer Digital 3D mammography - also known as tomosynthesis which allows cancer to be detected much earlier. It's a newer technology and especially helpful for women with dense breast tissue because it allows a more detailed look at the breast tissue. With 6 locations across the 23 county service area, patients have access to this new technology close to home. At Covenant Health's breast center locations, patients receive their screening mammography results within 24 hours. When cancer is caught in its earliest stages, patients can undergo a shorter duration of radiation therapy. Covenant Health radiation oncology locations offer partial breast radiation which takes only five days, compared to the traditional whole breast radiation course of four to six weeks. In 2015 Covenant Health began implementing a low dose CT (LDCT) program for lung cancer screening. Now in maturity, the program led to the detection of 20 new cases of lung cancer in 2017. With this LDCT program, patients can receive treatment for earlier stages of lung cancer, improving the chance of sustainability. Cardiac Care Covenant Health's heart hospitals began collaborating in 2012 to offer Transcatheter Aortic Valve Replacement (TAVR). Much has changed in the TAVR world since then. Smaller catheters and surgical instruments have opened new pathways to the heart and opened the procedure to a wider range of candidates. No longer limited to elderly "inoperable" patients, TAVR is now available to younger patients and those deemed "high or intermediate risk." In addition, this therapy and technology are offered locally so patients do not have to travel far. * Covenant Health was the first to bring the life-saving TAVR procedure to our region. * Covenant Health cares for more hearts than any other area health system. * Covenant Health's average door-to-balloon time for STEMI (heart attack) patients is 52 minutes, 42% faster than the national goal. * Covenant Health has more cardiac rehab locations than any other area health system. Spine and Neuro Care Fort Sanders Regional is one of three centers for Covenant Health's spine surgery network, which also has locations at Methodist and Parkwest Medical Centers. The network uses a multidisciplinary team approach that includes neurosurgeons, orthopedic surgeons, nurses, and physical therapists. Surgeons have access to the latest technology and methods for inpatient and outpatient surgeries, including minimally invasive techniques that result in faster recoveries, less postoperative pain, and fewer complications. For patients needing spinal fusion, a neurosurgeon can perform a minimally invasive surgical procedure called Transforaminal Lumbar Interbody Fusion (TLIF) a spinal fusion technique used to treat spondylolisthesis, degenerative disc disease or recurrent disc herniations. * Covenant Health's spine centers perform more than 2,300 elective spine surgeries each year. * The spine centers treat conditions such as spinal cord injuries, herniated or ruptured discs, degenerative disc disease, spine tumors, sciatica, and others. * Ninety-two percent of elective spine surgery patients are able to go directly home after surgery. Form 990, Part III, Line 1 Expansion and Renovation In 2017 Parkwest Medical Center began a $99 million expansion and renovation project to accommodate both patient care improvements and growth on Parkwest's main campus in west Knoxville. Highlights of the project include: * A new patient care tower to better serve the hospital's inpatients and observation patients within specialized units. * Additional operating rooms and an expansion of surgical support space within the existing main surgery area of the hospital. * A dedicated entrance for surgical patients. * Creation of a clinical observation unit to help staff and physicians better serve medical and surgical observation patients who do not need to be admitted as inpatients. * Relocation of the helipad closer to the Emergency Care Center. The new location will allow quicker access for Covenant Health patients across the region who are airlifted to Parkwest for emergency medical care. Physician Relationships Nearly 1,500 physicians are affiliated with Covenant Health hospitals and organizations as members of the health system's medical staffs. These physicians serve in leadership positions at their respective hospitals, and several represent their organizations and communities through membership in Covenant Health's Board of Directors. Covenant Medical Group, Inc,(CMG) comprises the health system's largest group of employed physicians. CMG includes primary care and specialty physicians in more than 100 practice locations. CMG also builds and maintains partnerships with physicians through joint ventures such as surgery centers and the development of service line strategies that focus on improving the quality of patient care. Physician and hospital agendas are aligned so that the first priority is always the patient. The health system's goal is to work side by side with physicians to provide a seamless continuum of care and excellent outcomes. Preparing Future Healthcare Professionals In 2017 Covenant Health welcomed a new group of medical students as part of the health system's partnership with DeBusk College of Osteopathic Medicine at Lincoln Memorial University in Harrogate, Tennessee. It is the second year for the medical student program, which provides clinical experiences at Covenant Health hospitals for aspiring physicians and mid-level providers. Thirty-seven students took part in an orientation highlighted by a traditional "white coat ceremony" in which each student received a personalized white coat to wear during their clinical training at Covenant Health hospitals. Three of Covenant Health's member hospitals - Cumberland Medical Center, Methodist Medical Center and Morristown-Hamblen Healthcare System - serve as core rotation sites for the program. Under the direct supervision of physicians, the medical students interview and examine patients, review clinical information, make hospital rounds, participate in interdisciplinary team meetings, practice appropriate documentation and perform procedures. Covenant Health and LMU-DCOM by the numbers: * Each core rotation site (Cumberland Medical Center, Methodist Medical Center and Morristown-Hamblen Healthcare System) hosts 12 LMU-DCOM medical students for their 3rd and 4th year clinical rotations. * During the 2016-17 clinical year, additional LMU-DCOM students completed electives at seven other Covenant Health locations. * The program depends on approximately 150 physicians throughout Covenant Health who serve as preceptors (teachers). * About 160 LMU medical students have rotated through Covenant Health facilities during the past two years. Healthcare Education at Covenant Health * Covenant Health provided clinical experiences for more than 1,000 students in fall 2017. Students represented 10 colleges and medical specialty areas including nursing, pharmacy, rehabilitation and others. * Sixteen universities routinely place students at Covenant Health facilities for clinical training. * Covenant Health partners with Tennessee Wesleyan University - Fort Sanders Nursing Department to offer a bachelor of science in nursing degree and an RN-to-BSN program. * Covenant Health offers a nurse residency program for recent nursing graduates, and supports advanced certification and continuing education for nurses, and other healthcare professionals. Community Outreach With local community assessment data identifying obesity as a significant health issue throughout East Tennessee, Covenant Health offers a variety of community opportunities to encourage physical activity among all ages. More than 8,000 runners took part in the 13th annual Covenant Health Knoxville Marathon. The two-day event included a Kids Run and 5k race on Saturday evening and a half-marathon, four-person relay and full marathon on Sunday. The 2017 event also included a Fittest Company Challenge and a Corporate Challenge Team of individuals representing area businesses who trained together in pursuit of healthier lifestyles while preparing for marathon events. More than 2,000 children in grades 1-8 participated in the Covenant Kids Run, which included a kick-off event at Zoo Knoxville in January and each child logging "a marathon's worth" of activity during the months leading up to a final one-mile group run. Covenant Health began the second year of the "Dogwood Patch" program in 2017, part of its health and fitness sponsorship of the Dogwood Arts Festival. The health system offered a limited-edition patch for anyone who completed 25 miles on featured Dogwood trails between April 1 and May 31. More than 400 people qualified to receive a patch in 2017. In Hamblen County, Covenant Health and Panther Creek State Park began a fall "Redbud Patch" program, offering a limited-edition patch for walkers who completed 26.2 miles of trails in the park. Several group hikes were held, including an after-turkey-dinner walk on the day after Thanksgiving. The program ended with a New Year's Day group hike on Jan. 1, 2018. The health system sponsored additional group hikes and walking events throughout the year in all counties where Covenant Health hospitals are located. Support for Community Programs As Knoxville's largest employer and a business organization with a significant presence in East Tennessee, Covenant Health is a committed corporate citizen and supports numerous charitable and community organizations in categories such as: * Health-related organizations * Community needs and outreach programs * Children, youth and education programs, including major sponsorship of The Change Center initiative for safe recreation, community activities and job training activities in Knoxville's center city * Economic development * Community leadership development * Arts,recreation and quality of life In addition, Covenant Health and its affiliated Foundations have supported community programs related to cancer outreach services (including mammography screenings), HIV/AIDS, leisure/recreation activities for persons with disabilities, and fitness activities for all ages. Philanthropy Covenant Health has a strong foundation, thanks to generous individuals and businesses across East Tennessee. The fifth class of business and community leaders participated in the Office of Philanthropy's annual Covenant Health Leadership Academy. They got a behind-the-scenes look at health care with tours of Covenant Health facilities, conversations with caregivers and administrators, and opportunities to observe surgical procedures and advanced technology. Several Academy graduates have joined Covenant Health fund raising event committees and Foundation boards, and are connecting Covenant facilities and programs with new philanthropic resources in the community. Covenant's Office of Philanthropy coordinates fund raising efforts at four foundations: * Fort Sanders Foundation (serving the needs of Fort Sanders Regional, Fort Loudoun, Parkwest, Roane,and Cumberland Medical Centers; Peninsula, and the Patricia Neal Rehabilitation Center) * Methodist Medical Center Foundation * Morristown- Hamblen Hospital Foundation * Thompson Cancer Survival Center Foundation Form 990, Part VI, Section B, line 11b The Morristown-Hamblen Hospital Association 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. The Finance Committee met in regular session in September, 2018, at which meeting executive management reviewed with the committee Form 990 and material information to be included in the form, discussed any material variations in the Form 990 as compared to those to be filed by the organization's affiliates, and answered questions of the committee regarding the Form 990. At the conclusion of review and discussion, the Finance Committee unanimously approved 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, the parent company of the organization, distributes a board-approved Code of Conduct to all employees. The Code covers among other subjects, conflicts of interest. Additionally, managers are required to complete and sign a bi-annual management certification that addresses conflicts of interest. Board members' conflicts of interests are dealt within 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 Integrity Compliance Officer initially reviews all 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. As well, managers and other employees are expected to report conflicts to the Integrity Compliance Officer as they arise. Depending on the nature of the conflict and the circumstances surrounding the conflict and transaction, the Integrity Compliance Officer, Senior Leadership, or the Board of Directors may review the conflict of interest. Where appropriate these bodies 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 Integrity Compliance Officer in conjunction with Executive Leadership determines how to appropriately handle the conflict. In any conflict involving a board member, such member is expected to excuse himself or herself from voting on matters that give rise to the conflict. Form 990, Part VI, Section B, line 15 Overall compensation policies for Morristown-Hamblen Hospital Association, 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. Compensation policies for James VanderSteeg and John Geppi are reported on the 2017 Form 990 of Covenant Health, EIN 62-1646734. Form 990, Part VI, Section B, Line 15b: Base salary and annual bonus opportunities for Gordon Lintz, 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 salary and annual bonus opportunities for Amy Herndon, Vice President of Financial Services, and Wilma Hart-Flynn, Vice President and Chief Nursing Officer, are based on targets established by historical compensation consultant data and the Covenant 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 Morristown-Hamblen Hospital Association 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. Form 990, Part XI, line 9: Contributed capital - affiliates -8,628,618. Form 990, Part XII, Line 2c: The Audit Committee of the Board of Directors annually selects the external auditors for Covenant Health. There is a joint meeting of the Finance Committee and Audit Committee of the Board of Directors where the audit of the consolidated financial statements are presented. Covenant Health 1420 Centerpoint Blvd Bldg C Knoxville TN 379321960 621646734 Supporting organization TN 501(c)(3) Line 12b, II N/A 0 Claiborne Medical Center 1850 Old Knoxville Rd Tazewell TN 378793625 464420358 Acute care hospital TN 501(c)(3) Line 3 Covenant Health 0 Covenant Homecare 3001 Lake Brook Blvd Ste 101 Knoxville TN 37909 621623114 Home health services TN 501(c)(3) Line 10 Covenant Health 0 Cumberland Medical Center 421 S Main St Crossville TN 385555048 620790132 Acute care hospital TN 501(c)(3) Line 3 Covenant Health 0 Fort Loudoun Medical Center 550 Fort Loudoun Medical Center Dr Lenoir City TN 37772 621373691 Acute care hospital TN 501(c)(3) Line 3 Covenant Health 0 Fort Sanders Regional Medical Center 1901 W Clinch Ave Knoxville TN 37916 620528340 Acute care hospital TN 501(c)(3) Line 3 Covenant Health 0 Fort Sanders Foundation 280 Fort Sanders West Blvd Ste 202 Knoxville TN 37922 621748601 Fundraising and patient outreach TN 501(c)(3) Line 12b, II Covenant Health 0 Fort Sanders Perinatal Center Trustees Tower 501 19th St Ste 304 Knoxville TN 37916 043760551 High risk obstetrical services TN 501(c)(3) Line 3 Fort Sanders Regional Medical Center 0 LeConte Medical Center 742 Middle Creek Road Sevierville TN 37862 621114867 Acute care hospital TN 501(c)(3) Line 3 Covenant Health 0 Methodist Medical Center 990 Oak Ridge Turnpike Oak Ridge TN 37830 620636239 Acute care hospital TN 501(c)(3) Line 3 Covenant Health 0 Parkwest Medical Center 9352 Park West Blvd Knoxville TN 37923 581897274 Acute care hospital TN 501(c)(3) Line 3 Covenant Health 0 Roane County Medical Center 8045 Roane Medical Center Dr Harriman TN 37748 680673354 Acute care hospital TN 501(c)(3) Line 3 Covenant Health 0 Thompson Cancer Survival Center 1915 White Ave Knoxville TN 37916 621250943 Cancer support center TN 501(c)(3) Line 3 Covenant Health 0 Thompson Oncology Group 1915 White Ave Knoxville TN 37916 621619239 Oncology services TN 501(c)(3) Line 3 Thompson Cancer Survival Center 0 Morristown-Hamblen Hospital Foundation 908 W 4th N St Morristown TN 37814 621697090 Fundraising and patient outreach TN 501(c)(3) Line 12a, I Morristown-Hamblen Hospital Association 1 Thompson Cancer Survival Center Foundation 1915 White Ave Knoxville TN 37916 582130450 Fundraising and patient outreach TN 501(c)(3) Line 12b, II Covenant Health 0 Fort Sanders West OP Surgery Center LLC 210 Fort Sanders West Blvd Ste 200 Knoxville TN 37922 621366907 Outpatient surgery center TN N/A Fort Sanders West Associates 280 Fort Sanders West Blvd Ste 214 Knoxville TN 37922 621384171 Building ownership TN N/A KOSC Properties LLC 256 Fort Sanders West Blvd Ste 200 Knoxville TN 37922 262444076 Building ownership TN N/A Knoxville Orthopaedic Surgery Center LLC 256 Fort Sanders West Blvd Ste 200 Knoxville TN 37922 262437385 Orthopaedic surgery TN N/A KOC 260 Bldg LLC 260 Fort Sanders West Blvd Knoxville TN 37922 465228440 Land and building ownership TN N/A CovenantUSP Surgery Centers LLC 15305 Dallas Parkway Ste 1600 Addison TX 75001 364828197 Holding company TN N/A Canterfield of Oak Ridge LLP 140 Bus Terminal Road Oak Ridge TN 37830 274129674 Assisted living community GA N/A Fortress Corporation 280 Fort Sanders West Blvd Ste 214 Knoxville TN 37922 621308885 Management company TN N/A C 0 Covenant Medical Group Inc 1400 Centerpoint Blvd Ste 100 Bldg Knoxville TN 37932 621282917 Physician practice management TN N/A C 1 Knoxville Heart Group 1819 Clinch Ave Suite 108 Knoxville TN 37916 271528941 Cardiology medical practice TN N/A C 0 East TN Cardiovascular Surgery Group Inc 9125 Cross Park Drive Ste 200 Knoxville TN 37923 621018541 Cardiovascular surgical practice TN N/A C 0 1 1 1 0 0 0 0 0 0 1 1 1 1 1 1 1 1 1 1 Covenant Medical Group Inc A 176345 FMV Knoxville Heart Group LLC A 53532 FMV