COVENANT HEALTH: Form 990, tax year 2016

View the entire original 990 at ProPublica ↗

Organization: COVENANT HEALTH (EIN 62-1646734)
Tax period: 2016-01-01 to 2016-12-31
Filed: 2017-11-15
IRS object ID: 201733199349301613
Schema version: 2016v3.0
Source: Download XML · Original 990 at ProPublica

Every field in the e-filed return. Faint text is the IRS element name, for citing.

Return header
Form 990
Schedule A
Schedule B
Schedule C
Schedule D
Schedule I
Schedule J
Schedule K
Schedule K
Schedule L
Schedule M
Schedule O
Schedule R

Return header ReturnHeader

Field	Value	IRS element (for citing)
Return	2017-11-15T08:27:32-06:00	ReturnTs
Tax Period End	2016-12-31	TaxPeriodEndDt
Return Type	990	ReturnTypeCd
Tax Period Begin	2016-01-01	TaxPeriodBeginDt

Filer Filer

Field	Value	IRS element (for citing)
EIN	621646734	EIN

Business Name BusinessName

Field	Value	IRS element (for citing)
Business Name Line1	Covenant Health	BusinessNameLine1Txt

Field	Value	IRS element (for citing)
Business Name Control	COVE	BusinessNameControlTxt
Phone	8653746864	PhoneNum

US Address USAddress

Field	Value	IRS element (for citing)
Address Line1	1420 Centerpoint Blvd Bldg C	AddressLine1Txt
City	Knoxville	CityNm
State Abbreviation	TN	StateAbbreviationCd
ZIP	379321960	ZIPCd

Business Officer BusinessOfficerGrp

Field	Value	IRS element (for citing)
Person	JOHN T GEPPI	PersonNm
Person Title	EVP/CFO	PersonTitleTxt
Phone	8655315421	PhoneNum
Signature	2017-11-01	SignatureDt

Filing Security Information FilingSecurityInformation

IP Address IPAddress

Field	Value	IRS element (for citing)
I Pv4 Address	168.85.177.4	IPv4AddressTxt

Field	Value	IRS element (for citing)
IP	2017-11-15	IPDt
IP Tm	08:54:43	IPTm
IP Timezone	ES	IPTimezoneCd
Filing License Type	P	FilingLicenseTypeCd
At Submission Creation Device Id	3B732C0E83A9A114577FAE24D8A6CA22539D5478	AtSubmissionCreationDeviceId
At Submission Filing Device Id	3B732C0E83A9A114577FAE24D8A6CA22539D5478	AtSubmissionFilingDeviceId

Field	Value	IRS element (for citing)
Tax	2016	TaxYr
Build TS	2021-01-29 14:40:06Z	BuildTS

Form 990 IRS990

Field	Value	IRS element (for citing)
Principal Officer	James D VanderSteeg	PrincipalOfficerNm

US Address USAddress

Field	Value	IRS element (for citing)
Address Line1	100 Ft Sanders W Blvd	AddressLine1Txt
City	Knoxville	CityNm
State Abbreviation	TN	StateAbbreviationCd
ZIP	37922	ZIPCd

Field	Value	IRS element (for citing)
Gross Receipts	$136,967,562	GrossReceiptsAmt
Group Return For Affiliates	0	GroupReturnForAffiliatesInd
Organization501c3	Yes (X)	Organization501c3Ind
Website Address	www.covenanthealth.com	WebsiteAddressTxt
Type Of Organization Corp	Yes (X)	TypeOfOrganizationCorpInd
Formation	1996	FormationYr
Legal Domicile State	TN	LegalDomicileStateCd
Activity Or Mission	Covenant Health is the parent organization in a community-owned health care system in East Tenn.	ActivityOrMissionDesc
Voting Members Governing Body	22	VotingMembersGoverningBodyCnt
Voting Members Independent	16	VotingMembersIndependentCnt
Total Employee	1177	TotalEmployeeCnt
Total Volunteers	1325	TotalVolunteersCnt
Total Gross UBI	$1,338,036	TotalGrossUBIAmt
Net Unrelated Bus Txbl Incm	$195,515	NetUnrelatedBusTxblIncmAmt
PY Contributions Grants	$152,479	PYContributionsGrantsAmt
CY Contributions Grants	$188,606	CYContributionsGrantsAmt
PY Program Service Revenue	$102,518,766	PYProgramServiceRevenueAmt
CY Program Service Revenue	$109,945,589	CYProgramServiceRevenueAmt
PY Investment Income	$31,337,800	PYInvestmentIncomeAmt
CY Investment Income	$17,214,717	CYInvestmentIncomeAmt
PY Other Revenue	$198,559	PYOtherRevenueAmt
CY Other Revenue	$218,615	CYOtherRevenueAmt
PY Total Revenue	$134,207,604	PYTotalRevenueAmt
CY Total Revenue	$127,567,527	CYTotalRevenueAmt
PY Grants And Similar Paid	$590,105	PYGrantsAndSimilarPaidAmt
CY Grants And Similar Paid	$500,000	CYGrantsAndSimilarPaidAmt
PY Benefits Paid To Members	$0	PYBenefitsPaidToMembersAmt
CY Benefits Paid To Members	$0	CYBenefitsPaidToMembersAmt
PY Salaries Comp Emp Bnft Paid	$66,922,956	PYSalariesCompEmpBnftPaidAmt
CY Salaries Comp Emp Bnft Paid	$70,128,737	CYSalariesCompEmpBnftPaidAmt
PY Total Prof Fndrsng Expns	$0	PYTotalProfFndrsngExpnsAmt
CY Total Prof Fndrsng Expns	$0	CYTotalProfFndrsngExpnsAmt
CY Total Fundraising Expense	$0	CYTotalFundraisingExpenseAmt
PY Other Expenses	$45,117,011	PYOtherExpensesAmt
CY Other Expenses	$56,764,192	CYOtherExpensesAmt
PY Total Expenses	$112,630,072	PYTotalExpensesAmt
CY Total Expenses	$127,392,929	CYTotalExpensesAmt
PY Revenues Less Expenses	$21,577,532	PYRevenuesLessExpensesAmt
CY Revenues Less Expenses	$174,598	CYRevenuesLessExpensesAmt
Total Assets BOY	$1,231,025,759	TotalAssetsBOYAmt
Total Assets EOY	$1,422,118,030	TotalAssetsEOYAmt
Total Liabilities BOY	$872,791,957	TotalLiabilitiesBOYAmt
Total Liabilities EOY	$899,719,432	TotalLiabilitiesEOYAmt
Net Assets Or Fund Balances BOY	$358,233,802	NetAssetsOrFundBalancesBOYAmt
Net Assets Or Fund Balances EOY	$522,398,598	NetAssetsOrFundBalancesEOYAmt
Info In Schedule O Part III	Yes (X)	InfoInScheduleOPartIIIInd
Mission	Covenant Health operates primarily as a supporting organization within the meaning of Internal Revenue Code section 509(a)(3). Its mission, which is shared by its member hospitals and other organizations (see Schedule A), is to serve the community by improving the quality of life through better health, regardless of a patient's ability to pay.	MissionDesc
Significant New Program Srvc	0	SignificantNewProgramSrvcInd
Significant Change	0	SignificantChangeInd
Expense	$37,682,467	ExpenseAmt
Revenue	$37,682,467	RevenueAmt
Desc	Information Technology. See Schedule O for additional details.Information Technology: Expenses - $37,682,467; Revenue - $37,682,467.The Information Technology (IT) division of Covenant Health provides all computing equipment and information management related services to Covenant Health facilities. Information management systems and related application support (install, upgrade, help desk) services are available on a 24/7 basis spanning healthcare functions across core patient-care clinical systems, physician, nursing, and associated ancillary systems (lab, radiology, pharmacy, therapy), as well as supporting business functions encompassing patient accounting, materials management, finance, and human resources. IT also manages a centralized data center (and a backup disaster recovery data center) where the hardware equipment is housed to deliver the computing resources for all clinical/business functions on a 24/7 schedule. Additionally, IT is responsible for management of all PC workstations (desktop, laptop, mobile cart), all client to server internal and external network connectivity, as well as telephone services and telephone equipment (PBX, handsets, cell phones, pagers) across the company. It also facilitates project management activities related to meeting regulatory and quality reporting requirements. Key statistics for the year include: Payroll checks/deposits - 290,921 Pharmacy medication mgmt. system - 2,232,161 orders Total spam messages blocked - 6,934,688 Network access attempts blocked - 2,153,952,000 PCs supported - 10,035 Overall telephone usage - 35,485,739 calls Pathway scheduling application - 703,601 appointments Accounts payable checks - 137,589	Desc

Prog Srvc Accom Acty2 ProgSrvcAccomActy2Grp

Field	Value	IRS element (for citing)
Expense	$14,725,774	ExpenseAmt
Revenue	$14,725,774	RevenueAmt
Desc	Business Office. See Schedule O for additional details.Business Office: Expenses - $14,725,774; Revenue - $14,725,774.Knoxville Business Office Services is the CBO (Centralized Business Office) for Covenant Health providing accounts receivable management for Fort Sanders Regional Medical Center, Parkwest Medical Center, Fort Loudoun Medical Center, LeConte Medical Center, Methodist Medical Center, Morristown-Hamblen Hospital Association and Roane Medical Center. These services include, but are not limited to, customer service, payment collection, financial posting, refund processing, and insurance billing and follow-up.During 2016, CBO submitted over 1,054,800 insurance claims totaling in excess of $3,961,200,000. Bad debt expense for 2016 was approximately 2.0% of gross revenue with bad debt recoveries/collections in excess of $12,252,200. The CBO handled over 131,400 incoming phone calls, followed-up on over 614,200 open accounts and processed over 3.21 million financial transactions.	Desc

Prog Srvc Accom Acty3 ProgSrvcAccomActy3Grp

Field	Value	IRS element (for citing)
Expense	$9,520,304	ExpenseAmt
Revenue	$9,520,304	RevenueAmt
Desc	Health Information Management. See Schedule O for additional details.Health Information Management: Expenses - $9,520,304; Revenue - $9,520,304.The central Health Information Management (HIM) department encompasses all areas of traditional medical records, including transcription, coding, release of information, a 24x7 call center, central scanning, records preparation, regulatory compliance, clinical documentation improvement, and privacy protection. Services are provided for acute care hospitals, both inpatient and outpatient; home health; physician offices; and behavioral health. The objective of HIM is to provide comprehensive services that are available to all Covenant Health hospitals and facilities on a 24x7 basis. This enables the hospitals and facilities to provide more efficient and timely service at less cost. In 2016 the HIM department transcribed over 64.5 million lines, scanned over 14.6 million pages, and coded over 2 million records.	Desc

Prog Srvc Accom Acty Other ProgSrvcAccomActyOtherGrp

Field	Value	IRS element (for citing)
Expense	$51,210,148	ExpenseAmt
Grant	$500,000	GrantAmt
Revenue	$68,472,678	RevenueAmt
Desc	In addition to the services previously mentioned, support provided by Covenant Health to its member facilities takes on many other forms, some examples of which are: * Executive leadership, strategic planning, and other planning both at the system and organizational level; * Financial, management and advisory services * Third party reporting * Integrity compliance program * Real estate management * Risk management * Internal audit * Asset and liability related treasury management functions * Procurement * Clinical quality improvement * Marketing * Human Resources * Centralized management of plant engineering and construction team * External reportingOther services and activities conducted by Covenant Health directly benefit patients and members of the communities served by the Supported Organizations. Some services are aimed at improving the operational efficiency of and the quality of care provided by the Supported Organizations, such as the production of sterile packs. Covenant Health Sterile Solutions produces surgical sterile packs for distribution to Covenant Health's Supported Organizations. The use of custom built Sterile Packs helps reduce surgical pack supply costs, reduce inventory levels, and minimize waste in keeping with the organization's green initiatives. Along with those achievements, sterile packs also help reduce setup time, leaving more time for treating patients, and with fewer items to open, reducing the risk of contamination.Other centralized services are provided by the Corporate Human Resources division. This division is responsible for system-wide programs, policies and procedures, regulatory and legal compliance, and assists with the hiring process for all system employees. Other services provided are standardized benefit design and administration, leadership development, succession and continuity, employee relations and retention, and clinical and non-clinical skill development.Through the Learning and Leadership Development (LLD) division, Human Resources provides both e-learning and classroom-based courses. LLD offers more than 100 clinical nursing courses from both in-house and vendor sourcing. It also manages a host of clinical training opportunities including everything from CPR to Advanced Neurological and Neonatal Intensive Care courses.Covenant Health also has its own internal "staffing agency", Covenant Staffing Services (CSS), which employs over 69 RNs who help to cover open staffing needs throughout the system. Other programs have community benefit as their main goal. One example is Covenant Health Senior Services, which assists older adults who are 50 or older in their efforts to lead healthier, more independent lives.	Desc

Field	Value	IRS element (for citing)
Total Other Prog Srvc Expense	$51,210,148	TotalOtherProgSrvcExpenseAmt
Total Other Prog Srvc Grant	$500,000	TotalOtherProgSrvcGrantAmt
Total Other Prog Srvc Revenue	$68,472,678	TotalOtherProgSrvcRevenueAmt
Total Program Service Expenses	$113,138,693	TotalProgramServiceExpensesAmt
Described In Section501c3	Yes (1)	DescribedInSection501c3Ind
Schedule B Required	Yes (1)	ScheduleBRequiredInd
Political Campaign Acty	0	PoliticalCampaignActyInd
Lobbying Activities	Yes (1)	LobbyingActivitiesInd
Subject To Proxy Tax	0	SubjectToProxyTaxInd
Donor Advised Fund	0	DonorAdvisedFundInd
Conservation Easements	0	ConservationEasementsInd
Collections Of Art	0	CollectionsOfArtInd
Credit Counseling	0	CreditCounselingInd
Temp Or Permanent Endowments	0	TempOrPermanentEndowmentsInd
Report Land Building Equipment	Yes (1)	ReportLandBuildingEquipmentInd
Report Investments Other Sec	0	ReportInvestmentsOtherSecInd
Report Program Related Invst	0	ReportProgramRelatedInvstInd
Report Other Assets	0	ReportOtherAssetsInd
Report Other Liabilities	Yes (1)	ReportOtherLiabilitiesInd
Include FIN48 Footnote	Yes (1)	IncludeFIN48FootnoteInd
Independent Audit Fincl Stmt	0	IndependentAuditFinclStmtInd
Consolidated Audit Fincl Stmt	Yes (1)	ConsolidatedAuditFinclStmtInd
School Operating	0	SchoolOperatingInd
Foreign Office	0	ForeignOfficeInd
Foreign Activities	0	ForeignActivitiesInd
More Than5000 K To Org	0	MoreThan5000KToOrgInd
More Than5000 K To Individuals	0	MoreThan5000KToIndividualsInd
Professional Fundraising	0	ProfessionalFundraisingInd
Fundraising Activities	0	FundraisingActivitiesInd
Gaming Activities	0	GamingActivitiesInd
Operate Hospital	0	OperateHospitalInd
Grants To Organizations	Yes (1)	GrantsToOrganizationsInd
Grants To Individuals	0	GrantsToIndividualsInd
Schedule J Required	Yes (1)	ScheduleJRequiredInd
Tax Exempt Bonds	Yes (1)	TaxExemptBondsInd
Invest Tax Exempt Bonds	0	InvestTaxExemptBondsInd
Escrow Account	0	EscrowAccountInd
On Behalf Of Issuer	0	OnBehalfOfIssuerInd
Engaged In Excess Benefit Trans	0	EngagedInExcessBenefitTransInd
PY Excess Benefit Trans	0	PYExcessBenefitTransInd
Loan Outstanding	0	LoanOutstandingInd
Grant To Related Person	0	GrantToRelatedPersonInd
Business Rln With Org Mem	0	BusinessRlnWithOrgMemInd
Business Rln With Fam Mem	0	BusinessRlnWithFamMemInd
Business Rln With Officer Ent	Yes (1)	BusinessRlnWithOfficerEntInd
Deductible Non Cash Contri	Yes (1)	DeductibleNonCashContriInd
Deductible Art Contribution	Yes (1)	DeductibleArtContributionInd
Terminate Operations	0	TerminateOperationsInd
Partial Liquidation	0	PartialLiquidationInd
Disregarded Entity	Yes (1)	DisregardedEntityInd
Related Entity	Yes (1)	RelatedEntityInd
Related Organization Ctrl Ent	Yes (1)	RelatedOrganizationCtrlEntInd
Transaction With Control Ent	Yes (1)	TransactionWithControlEntInd
Trnsfr Exmpt Non Chrtbl Rltd Org	0	TrnsfrExmptNonChrtblRltdOrgInd
Activities Conducted Prtshp	0	ActivitiesConductedPrtshpInd
Schedule O Required	Yes (1)	ScheduleORequiredInd
IRP Document	409	IRPDocumentCnt
IRP Document W2 G	0	IRPDocumentW2GCnt
Backup Wthld Compliance	Yes (1)	BackupWthldComplianceInd
Employee	1177	EmployeeCnt
Employment Tax Returns Filed	Yes (1)	EmploymentTaxReturnsFiledInd
Unrelated Bus Incm Over Limit	Yes (1)	UnrelatedBusIncmOverLimitInd
Form990 T Filed	Yes (1)	Form990TFiledInd
Foreign Financial Account	0	ForeignFinancialAccountInd
Prohibited Tax Shelter Trans	0	ProhibitedTaxShelterTransInd
Taxable Party Notification	0	TaxablePartyNotificationInd
Nondeductible Contributions	0	NondeductibleContributionsInd
Quid Pro Quo Contributions	0	QuidProQuoContributionsInd
Form8282 Property Disposed Of	0	Form8282PropertyDisposedOfInd
Rcv Fnds To Pay Prsnl Bnft Cntrct	0	RcvFndsToPayPrsnlBnftCntrctInd
Pay Premiums Prsnl Bnft Cntrct	0	PayPremiumsPrsnlBnftCntrctInd
Indoor Tanning Services	0	IndoorTanningServicesInd
Info In Schedule O Part VI	Yes (X)	InfoInScheduleOPartVIInd
Governing Body Voting Members	22	GoverningBodyVotingMembersCnt
Independent Voting Member	16	IndependentVotingMemberCnt
Family Or Business Rln	0	FamilyOrBusinessRlnInd
Delegation Of Mgmt Duties	0	DelegationOfMgmtDutiesInd
Change To Org Documents	Yes (1)	ChangeToOrgDocumentsInd
Material Diversion Or Misuse	0	MaterialDiversionOrMisuseInd
Members Or Stockholders	0	MembersOrStockholdersInd
Election Of Board Members	0	ElectionOfBoardMembersInd
Decisions Subject To Approva	0	DecisionsSubjectToApprovaInd
Minutes Of Governing Body	Yes (1)	MinutesOfGoverningBodyInd
Minutes Of Committees	Yes (1)	MinutesOfCommitteesInd
Officer Mailing Address	0	OfficerMailingAddressInd
Local Chapters	0	LocalChaptersInd
Form990 Provided To Gvrn Body	Yes (1)	Form990ProvidedToGvrnBodyInd
Conflict Of Interest Policy	Yes (1)	ConflictOfInterestPolicyInd
Annual Disclosure Covered Prsn	Yes (1)	AnnualDisclosureCoveredPrsnInd
Regular Monitoring Enfrc	Yes (1)	RegularMonitoringEnfrcInd
Whistleblower Policy	Yes (1)	WhistleblowerPolicyInd
Document Retention Policy	Yes (1)	DocumentRetentionPolicyInd
Compensation Process CEO	Yes (1)	CompensationProcessCEOInd
Compensation Process Other	Yes (1)	CompensationProcessOtherInd
Investment In Joint Venture	0	InvestmentInJointVentureInd
Other Website	Yes (X)	OtherWebsiteInd
Upon Request	Yes (X)	UponRequestInd

Books In Care Of Detail BooksInCareOfDetail

Field	Value	IRS element (for citing)
Person	Nancy Beck	PersonNm
Phone	8653746864	PhoneNum

US Address USAddress

Field	Value	IRS element (for citing)
Address Line1	1420 Centerpoint Blvd Bldg C	AddressLine1Txt
City	Knoxville	CityNm
State Abbreviation	TN	StateAbbreviationCd
ZIP	379321960	ZIPCd

Form990 Part VII Section A Form990PartVIISectionAGrp (33 entries)

TitleTitleTxt	Average Hours Per WeekAverageHoursPerWeekRt	Average Hours Per Week Rltd OrgAverageHoursPerWeekRltdOrgRt	Individual Trustee Or DirectorIndividualTrusteeOrDirectorInd	OfficerOfficerInd	Reportable Comp From OrgReportableCompFromOrgAmt	Reportable Comp From Rltd OrgReportableCompFromRltdOrgAmt	Other CompensationOtherCompensationAmt	Key EmployeeKeyEmployeeInd	Highest Compensated EmployeeHighestCompensatedEmployeeInd
James D VanderSteeg
President & CEO	50.00	0.00	Yes (X)	Yes (X)	$1,250,463	$0	$134,588
Anthony L Spezia
CEO - Emeritus	40.00	0.00	Yes (X)	Yes (X)	$3,938,085	$0	$60,444
Ed Anderson
Director	1.00	0.00	Yes (X)		$1,442	$0	$0
Gerald Boyd
Director	1.00	0.00	Yes (X)		$1,449	$0	$0
Dr Willard Campbell
Director	1.00	0.00	Yes (X)		$0	$0	$0
Dr Mitchell Dickson
Director	1.00	0.00	Yes (X)		$2,060	$0	$0
Pamela P Fansler
Director	1.00	0.00	Yes (X)		$0	$0	$0
James Fitzsimmons
Director	1.00	0.00	Yes (X)		$1,603	$0	$0
Jim Johnson Jr
Director	1.00	0.00	Yes (X)		$0	$0	$0
Amber Krupacs
Director	1.00	0.00	Yes (X)		$0	$0	$0
Eddie Mannis
Director	1.00	0.00	Yes (X)		$0	$0	$0
Timothy Matthews
Director	1.00	0.00	Yes (X)		$2,357	$0	$0
Larry Mauldin
Chairman	1.00	0.00	Yes (X)		$1,254	$0	$0
Dr Joseph Metcalf
Director	1.00	0.00	Yes (X)		$14,546	$0	$0
Alvin Nance
Director	1.00	0.00	Yes (X)		$1,464	$0	$0
Roger Osborne
Director	1.00	0.00	Yes (X)		$1,268	$0	$0
Carl Storms
Director	1.00	0.00	Yes (X)		$1,599	$0	$0
Joseph E Sutter
Director	1.00	0.00	Yes (X)		$1,415	$0	$0
Richard Swanson
Director	1.00	0.00	Yes (X)		$0	$0	$0
Dr Michael Casey
Director	1.00	0.00	Yes (X)		$2,003	$0	$0
David C Verble
Director	1.00	0.00	Yes (X)		$1,369	$0	$0
Homer Fisher
Director	1.00	0.00	Yes (X)		$0	$0	$0
John T Geppi
EVP/CFO	50.00	0.00		Yes (X)	$831,637	$0	$27,957
William M Ward
SVP-Chief Information Officer	50.00	0.00			$360,019	$0	$33,936	Yes (X)
Mark W Browne
SVP-Chief Medical Officer	50.00	0.00			$414,657	$0	$33,060	Yes (X)
Janice McKinley
SVP-Quality, Safety, & Nursing	50.00	0.00			$325,860	$0	$25,427	Yes (X)
Michael R Belbeck Jr
EVP - Hospital Operations	50.00	0.00			$501,064	$0	$35,838	Yes (X)
Lucas D Johnson
EVP - Physician Enterprises	50.00	0.00			$255,715	$0	$5,751	Yes (X)
Larry R Lassiter
President/CAO - Parkwest Med Ctr	1.00	50.00			$341,570	$0	$22,270		Yes (X)
Keith N Altshuler
President/CAO - Fort Sanders Reg	1.00	50.00			$403,698	$0	$35,532		Yes (X)
Gordon E Lintz
President/CAO - Morristown	1.00	50.00			$324,161	$0	$19,072		Yes (X)
Jeremy H Biggs
President/CAO - Methodist	1.00	50.00			$358,301	$0	$11,942		Yes (X)
Amanda G Halford
VP - Care Coordination	50.00	0.00			$296,591	$0	$37,936		Yes (X)

Field	Value	IRS element (for citing)
Total Reportable Comp From Org	$9,635,650	TotalReportableCompFromOrgAmt
Tot Reportable Comp Rltd Org	$0	TotReportableCompRltdOrgAmt
Total Other Compensation	$483,753	TotalOtherCompensationAmt
Indiv Rcvd Greater Than100 K	65	IndivRcvdGreaterThan100KCnt
Former Ofcr Employees Listed	0	FormerOfcrEmployeesListedInd
Total Comp Greater Than150 K	Yes (1)	TotalCompGreaterThan150KInd
Compensation From Other Srcs	0	CompensationFromOtherSrcsInd

Contractor Compensation ContractorCompensationGrp (5 entries)

Address Line1ContractorAddress/USAddress/AddressLine1Txt	CityContractorAddress/USAddress/CityNm	State AbbreviationContractorAddress/USAddress/StateAbbreviationCd	ZIPContractorAddress/USAddress/ZIPCd	ServicesServicesDesc	CompensationCompensationAmt
Morrison Mgmt Specialists Inc
PO Box 102289	Atlanta	GA	303682289	Cafeteria Management & Catering	$19,274,141
Staffing Solutions Southeast Inc
PO Box 102332	Atlanta	GA	303682289	Temp Staffing Services	$3,223,750
Sodexo Inc and Affiliates
PO Box 536922	Atlanta	GA	30353	Housekeeping Services	$3,131,073
G4S Secure Solutions USA Inc
PO Box 277469	Atlanta	GA	30384	Security Services	$3,058,980
Mayo Collaborative SVC DBA Mayo Medical
PO Box 9146	Minneapolis	MN	55480	Lab Services	$2,461,360

Field	Value	IRS element (for citing)
Cntrct Rcvd Greater Than100 K	73	CntrctRcvdGreaterThan100KCnt
Related Organizations	$188,606	RelatedOrganizationsAmt
Noncash Contributions	$54,106	NoncashContributionsAmt
Total Contributions	$188,606	TotalContributionsAmt

Program Service Revenue ProgramServiceRevenueGrp (5 entries)

DescDesc	BusinessBusinessCd	Total Revenue ColumnTotalRevenueColumnAmt	Related Or Exempt Func IncomeRelatedOrExemptFuncIncomeAmt	Unrelated Business RevenueUnrelatedBusinessRevenueAmt
Management Fees	561000	$96,814,968	$96,814,968
Transcription Services	561499	$7,795,985	$6,618,164	$1,177,821
Telephone Services	517000	$4,630,409	$4,630,409
Health Information Admin	561499	$586,096	$586,096
Community Outreach	621990	$91,052	$91,052

Total Oth Program Service Rev TotalOthProgramServiceRevGrp

Field	Value	IRS element (for citing)
Total Revenue Column	$27,079	TotalRevenueColumnAmt
Unrelated Business Revenue	$27,079	UnrelatedBusinessRevenueAmt

Field	Value	IRS element (for citing)
Total Program Service Revenue	$109,945,589	TotalProgramServiceRevenueAmt

Investment Income InvestmentIncomeGrp

Field	Value	IRS element (for citing)
Total Revenue Column	$21,547,821	TotalRevenueColumnAmt
Related Or Exempt Func Income	$21,547,821	RelatedOrExemptFuncIncomeAmt

Incm From Invest Bond Proceeds IncmFromInvestBondProceedsGrp

Field	Value	IRS element (for citing)
Total Revenue Column	$30,159	TotalRevenueColumnAmt
Related Or Exempt Func Income	$30,159	RelatedOrExemptFuncIncomeAmt

Gross Rents GrossRentsGrp

Field	Value	IRS element (for citing)
Real	$244,255	RealAmt

Less Rental Expenses LessRentalExpensesGrp

Field	Value	IRS element (for citing)
Real	$108,194	RealAmt

Rental Income Or Loss RentalIncomeOrLossGrp

Field	Value	IRS element (for citing)
Real	$136,061	RealAmt

Net Rental Income Or Loss NetRentalIncomeOrLossGrp

Field	Value	IRS element (for citing)
Total Revenue Column	$136,061	TotalRevenueColumnAmt
Unrelated Business Revenue	$133,136	UnrelatedBusinessRevenueAmt
Exclusion	$2,925	ExclusionAmt

Gross Amount Sales Assets GrossAmountSalesAssetsGrp

Field	Value	IRS element (for citing)
Securities	$649,114	SecuritiesAmt

Less Cost Oth Basis Sales Expnss LessCostOthBasisSalesExpnssGrp

Field	Value	IRS element (for citing)
Securities	$0	SecuritiesAmt
Other	$5,012,377	OtherAmt

Gain Or Loss GainOrLossGrp

Field	Value	IRS element (for citing)
Securities	$649,114	SecuritiesAmt
Other	-$5,012,377	OtherAmt

Net Gain Or Loss Investments NetGainOrLossInvestmentsGrp

Field	Value	IRS element (for citing)
Total Revenue Column	-$4,363,263	TotalRevenueColumnAmt
Exclusion	-$4,363,263	ExclusionAmt

Field	Value	IRS element (for citing)
Gross Sales Of Inventory	$4,362,018	GrossSalesOfInventoryAmt
Cost Of Goods Sold	$4,279,464	CostOfGoodsSoldAmt

Net Income Or Loss NetIncomeOrLossGrp

Field	Value	IRS element (for citing)
Total Revenue Column	$82,554	TotalRevenueColumnAmt
Related Or Exempt Func Income	$82,554	RelatedOrExemptFuncIncomeAmt

Total Revenue TotalRevenueGrp

Field	Value	IRS element (for citing)
Total Revenue Column	$127,567,527	TotalRevenueColumnAmt
Related Or Exempt Func Income	$130,401,223	RelatedOrExemptFuncIncomeAmt
Unrelated Business Revenue	$1,338,036	UnrelatedBusinessRevenueAmt
Exclusion	-$4,360,338	ExclusionAmt

Grants To Domestic Orgs GrantsToDomesticOrgsGrp

Field	Value	IRS element (for citing)
Total	$500,000	TotalAmt
Program Services	$500,000	ProgramServicesAmt

Comp Current Ofcr Directors CompCurrentOfcrDirectorsGrp

Field	Value	IRS element (for citing)
Total	$8,005,865	TotalAmt
Program Services	$6,744,343	ProgramServicesAmt
Management And General	$1,261,522	ManagementAndGeneralAmt

Other Salaries And Wages OtherSalariesAndWagesGrp

Field	Value	IRS element (for citing)
Total	$49,272,829	TotalAmt
Program Services	$41,637,092	ProgramServicesAmt
Management And General	$7,635,737	ManagementAndGeneralAmt

Pension Plan Contributions PensionPlanContributionsGrp

Field	Value	IRS element (for citing)
Total	$3,120,577	TotalAmt
Program Services	$2,640,008	ProgramServicesAmt
Management And General	$480,569	ManagementAndGeneralAmt

Other Employee Benefits OtherEmployeeBenefitsGrp

Field	Value	IRS element (for citing)
Total	$5,632,352	TotalAmt
Program Services	$4,802,313	ProgramServicesAmt
Management And General	$830,039	ManagementAndGeneralAmt

Payroll Taxes PayrollTaxesGrp

Field	Value	IRS element (for citing)
Total	$4,097,114	TotalAmt
Program Services	$3,466,158	ProgramServicesAmt
Management And General	$630,956	ManagementAndGeneralAmt

Fees For Services Legal FeesForServicesLegalGrp

Field	Value	IRS element (for citing)
Total	$1,368,887	TotalAmt
Program Services	$653,939	ProgramServicesAmt
Management And General	$714,948	ManagementAndGeneralAmt

Fees For Services Accounting FeesForServicesAccountingGrp

Field	Value	IRS element (for citing)
Total	$268,660	TotalAmt
Management And General	$268,660	ManagementAndGeneralAmt

Fees For Srvc Invst Mgmnt Fees FeesForSrvcInvstMgmntFeesGrp

Field	Value	IRS element (for citing)
Total	$20,500	TotalAmt
Program Services	$20,500	ProgramServicesAmt

Fees For Services Other FeesForServicesOtherGrp

Field	Value	IRS element (for citing)
Total	$5,303,505	TotalAmt
Program Services	$4,922,913	ProgramServicesAmt
Management And General	$380,592	ManagementAndGeneralAmt

Advertising AdvertisingGrp

Field	Value	IRS element (for citing)
Total	$2,201,772	TotalAmt
Program Services	$2,201,502	ProgramServicesAmt
Management And General	$270	ManagementAndGeneralAmt

Office Expenses OfficeExpensesGrp

Field	Value	IRS element (for citing)
Total	$7,120,721	TotalAmt
Program Services	$6,832,228	ProgramServicesAmt
Management And General	$288,493	ManagementAndGeneralAmt

Information Technology InformationTechnologyGrp

Field	Value	IRS element (for citing)
Total	$17,239,963	TotalAmt
Program Services	$17,239,963	ProgramServicesAmt

Occupancy OccupancyGrp

Field	Value	IRS element (for citing)
Total	$1,505,838	TotalAmt
Program Services	$1,449,785	ProgramServicesAmt
Management And General	$56,053	ManagementAndGeneralAmt

Travel TravelGrp

Field	Value	IRS element (for citing)
Total	$274,499	TotalAmt
Program Services	$253,369	ProgramServicesAmt
Management And General	$21,130	ManagementAndGeneralAmt

Conferences Meetings ConferencesMeetingsGrp

Field	Value	IRS element (for citing)
Total	$866,598	TotalAmt
Program Services	$508,909	ProgramServicesAmt
Management And General	$357,689	ManagementAndGeneralAmt

Interest InterestGrp

Field	Value	IRS element (for citing)
Total	$14,419,330	TotalAmt
Program Services	$14,419,330	ProgramServicesAmt

Depreciation Depletion DepreciationDepletionGrp

Field	Value	IRS element (for citing)
Total	$1,646,073	TotalAmt
Program Services	$1,235,325	ProgramServicesAmt
Management And General	$410,748	ManagementAndGeneralAmt

Insurance InsuranceGrp

Field	Value	IRS element (for citing)
Total	$1,072,336	TotalAmt
Program Services	$796,498	ProgramServicesAmt
Management And General	$275,838	ManagementAndGeneralAmt

Other Expenses OtherExpensesGrp (4 entries)

DescDesc	TotalTotalAmt	Management And GeneralManagementAndGeneralAmt	Program ServicesProgramServicesAmt
Unrelated Business Inco	$43,000	$43,000
Subscriptions	$1,452,366	$220,931	$1,231,435
Dues and Licenses	$1,437,071	$47,302	$1,389,769
Bank Fees	$315,154	$314,538	$616

All Other Expenses AllOtherExpensesGrp

Field	Value	IRS element (for citing)
Total	$207,919	TotalAmt
Program Services	$192,698	ProgramServicesAmt
Management And General	$15,221	ManagementAndGeneralAmt

Total Functional Expenses TotalFunctionalExpensesGrp

Field	Value	IRS element (for citing)
Total	$127,392,929	TotalAmt
Program Services	$113,138,693	ProgramServicesAmt
Management And General	$14,254,236	ManagementAndGeneralAmt
Fundraising	$0	FundraisingAmt

Cash Non Interest Bearing CashNonInterestBearingGrp

Field	Value	IRS element (for citing)
BOY	$2,250	BOYAmt
EOY	$2,298	EOYAmt

Savings And Temp Cash Invst SavingsAndTempCashInvstGrp

Field	Value	IRS element (for citing)
BOY	$51,481,389	BOYAmt
EOY	$62,048,205	EOYAmt

Inventories For Sale Or Use InventoriesForSaleOrUseGrp

Field	Value	IRS element (for citing)
BOY	$462,094	BOYAmt
EOY	$479,112	EOYAmt

Prepaid Expenses Defrd Charges PrepaidExpensesDefrdChargesGrp

Field	Value	IRS element (for citing)
BOY	$8,287,830	BOYAmt
EOY	$5,951,465	EOYAmt

Field	Value	IRS element (for citing)
Land Bldg Equip Cost Or Other Bss	$72,241,081	LandBldgEquipCostOrOtherBssAmt
Land Bldg Equip Accum Deprec	$25,542,839	LandBldgEquipAccumDeprecAmt

Land Bldg Equip Basis Net LandBldgEquipBasisNetGrp

Field	Value	IRS element (for citing)
BOY	$31,482,535	BOYAmt
EOY	$46,698,242	EOYAmt

Investments Pub Traded Sec InvestmentsPubTradedSecGrp

Field	Value	IRS element (for citing)
BOY	$1,094,135,579	BOYAmt
EOY	$1,242,779,654	EOYAmt

Investments Other Securities InvestmentsOtherSecuritiesGrp

Field	Value	IRS element (for citing)
BOY	$9,674,950	BOYAmt
EOY	$15,592,905	EOYAmt

Other Assets Total OtherAssetsTotalGrp

Field	Value	IRS element (for citing)
BOY	$35,499,132	BOYAmt
EOY	$48,566,149	EOYAmt

Total Assets TotalAssetsGrp

Field	Value	IRS element (for citing)
BOY	$1,231,025,759	BOYAmt
EOY	$1,422,118,030	EOYAmt

Accounts Payable Accr Expnss AccountsPayableAccrExpnssGrp

Field	Value	IRS element (for citing)
BOY	$52,852,852	BOYAmt
EOY	$55,491,682	EOYAmt

Tax Exempt Bond Liabilities TaxExemptBondLiabilitiesGrp

Field	Value	IRS element (for citing)
BOY	$719,375,379	BOYAmt
EOY	$817,577,305	EOYAmt

Other Liabilities OtherLiabilitiesGrp

Field	Value	IRS element (for citing)
BOY	$100,563,726	BOYAmt
EOY	$26,650,445	EOYAmt

Total Liabilities TotalLiabilitiesGrp

Field	Value	IRS element (for citing)
BOY	$872,791,957	BOYAmt
EOY	$899,719,432	EOYAmt

Field	Value	IRS element (for citing)
Organization Follows SFAS117	Yes (X)	OrganizationFollowsSFAS117Ind

Unrestricted Net Assets UnrestrictedNetAssetsGrp

Field	Value	IRS element (for citing)
BOY	$358,233,802	BOYAmt
EOY	$522,398,598	EOYAmt

Total Net Assets Fund Balance TotalNetAssetsFundBalanceGrp

Field	Value	IRS element (for citing)
BOY	$358,233,802	BOYAmt
EOY	$522,398,598	EOYAmt

Tot Liab Net Assets Fund Balance TotLiabNetAssetsFundBalanceGrp

Field	Value	IRS element (for citing)
BOY	$1,231,025,759	BOYAmt
EOY	$1,422,118,030	EOYAmt

Field	Value	IRS element (for citing)
Info In Schedule O Part XI	Yes (X)	InfoInScheduleOPartXIInd
Reconcilation Revenue Expnss	$174,598	ReconcilationRevenueExpnssAmt
Net Unrlzd Gains Losses Invst	$24,440,340	NetUnrlzdGainsLossesInvstAmt
Other Changes In Net Assets	$139,549,858	OtherChangesInNetAssetsAmt
Info In Schedule O Part XII	Yes (X)	InfoInScheduleOPartXIIInd
Method Of Accounting Accrual	Yes (X)	MethodOfAccountingAccrualInd
Accountant Compile Or Review	0	AccountantCompileOrReviewInd
FS Audited	Yes (1)	FSAuditedInd

FS Audited Basis FSAuditedBasisGrp

Field	Value	IRS element (for citing)
Consolidated Basis Fincl Stmt	Yes (X)	ConsolidatedBasisFinclStmtInd

Field	Value	IRS element (for citing)
Audit Committee	Yes (1)	AuditCommitteeInd
Federal Grant Audit Required	0	FederalGrantAuditRequiredInd

Schedule A IRS990ScheduleA

Field	Value	IRS element (for citing)
Supporting Organization509a3	Yes (X)	SupportingOrganization509a3Ind
Supporting Org Type2	Yes (X)	SupportingOrgType2Ind
Supported Organizations	13	SupportedOrganizationsCnt

Supported Org Information SupportedOrgInformationGrp (13 entries)

EINEIN	Organization TypeOrganizationTypeCd	Governing Document ListedGoverningDocumentListedInd	SupportSupportAmt	Other SupportOtherSupportAmt
Fort Loudoun Medical Ctr
621373691	3	0	$0	$0
Fort Sanders Perinatal Ctr
043760551	3	0	$0	$0
Fort Sanders Regional Med Ctr
620528340	3	0	$0	$0
LeConte Medical Ctr
621114867	3	0	$0	$0
Methodist Medical Ctr
620636239	3	0	$0	$0
Parkwest Medical Ctr
581897274	3	0	$0	$0
Roane County Medical Ctr
680673354	3	0	$0	$0
Thompson Cancer Survival Ctr
621250943	3	0	$0	$0
Covenant Homecare
621623114	10	0	$0	$0
Thompson Oncology Group
621619239	3	0	$0	$0
Morristown-Hamblen Healthcare System
620545814	3	0	$0	$0
Claiborne Medical Center
464420358	3	0	$0	$0
Cumberland Medical Center
620790132	3	0	$0	$0

Field	Value	IRS element (for citing)
Supported Organizations Total	13	SupportedOrganizationsTotalCnt
Support Sum	$0	SupportSumAmt
Other Support Sum	$0	OtherSupportSumAmt

Form990 Sch A Supporting Org Form990SchASupportingOrgGrp

Field	Value	IRS element (for citing)
Listed By Name Governing Doc	0	ListedByNameGoverningDocInd
Suprt Org No IRS Determination	0	SuprtOrgNoIRSDeterminationInd
Supported Org Section C456	0	SupportedOrgSectionC456Ind
Supported Org Not Organized US	0	SupportedOrgNotOrganizedUSInd
Organization Change Suprt Org	0	OrganizationChangeSuprtOrgInd
Support Non Supported Org	Yes (1)	SupportNonSupportedOrgInd
Payment Substantial Contribtr	0	PaymentSubstantialContribtrInd
Loan Disqualified Person	0	LoanDisqualifiedPersonInd
Controlled Disqualified Prsn	0	ControlledDisqualifiedPrsnInd
Disqualified Prsn Controll Int	0	DisqualifiedPrsnControllIntInd
Disqualified Prsn Ownr Int	0	DisqualifiedPrsnOwnrIntInd
Excess Business Holdings Rules	0	ExcessBusinessHoldingsRulesInd
Contribution Controller	0	ContributionControllerInd
Contribution Family	0	ContributionFamilyInd
Contribution35 Controlled	0	Contribution35ControlledInd

Field	Value	IRS element (for citing)
Majority Dir Trst Supported Org	Yes (1)	MajorityDirTrstSupportedOrgInd

Form990 Schedule A Part VI Form990ScheduleAPartVIGrp (3 entries)

Form And Line ReferenceFormAndLineReferenceDesc	ExplanationExplanationTxt
Part I, Line 11(G)(IV):	Covenant Health is operated or controlled in connection with all of the listed supported organizations, and its articles of organization require that it be operated to support or benefit these organizations. These organizations are referred to in the articles by group and are not named individually. All of the above described organizations are governed by a board of directors with 100% overlap of board membership. Part I, Line 11(g)(v): Covenant Health operates to serve the interests of its member hospitals and the other nonprofit health organizations named in Schedule A, Part I (the "Supported Organizations"). The organization's activities have been discussed in detail on Schedule O in response to Form 990, Part III, Lines 4a thru 4d. Covenant Health may also pay expenses on behalf of, provide operating cash to, or make a grant to one of its Supported Organizations. See Schedule R, Part V for information about transfers to controlled organizations.
Part IV, Section A, Line 1:	Supported organizations are designated by class. Articles of Amendment to the Charter of Covenant Health, adopted on June 7, 2004, state that the corporation will "promote and support the interests and purposes of each of the nonprofit corporations for which the Corporation's board of directors serves as the board of directors."
Part IV, Section A, Line 6:	Covenant Health makes charitable contributions to organizations for community building activities as these activities seek to address many of the root causes of health problems, such as poverty and homelessness. The activities supported include affordable housing, temporary help with food and shelter, initiatives to boost economic development, leadership development, education, youth mentoring, and programs for at risk individuals.

Schedule B IRS990ScheduleB

Contributor Information ContributorInformationGrp

Field	Value	IRS element (for citing)
Contributor	RESTRICTED	ContributorNum

Contributor Business Name ContributorBusinessName

Field	Value	IRS element (for citing)
Business Name Line1	RESTRICTED	BusinessNameLine1

Contributor US Address ContributorUSAddress

Field	Value	IRS element (for citing)
Address Line1	RESTRICTED	AddressLine1
Address Line2	RESTRICTED	AddressLine2
City	RESTRICTED	City
State	RESTRICTED	State
ZIP Code	RESTRICTED	ZIPCode

Field	Value	IRS element (for citing)
Total Contributions	RESTRICTED	TotalContributionsAmt

Schedule C IRS990ScheduleC

Field	Value	IRS element (for citing)
Volunteers	Yes (1)	VolunteersInd
Paid Staff Or Management	Yes (1)	PaidStaffOrManagementInd
Media Advertisements	0	MediaAdvertisementsInd
Mailings Members	Yes (1)	MailingsMembersInd
Publications Or Broadcast	0	PublicationsOrBroadcastInd
Grants Other Organizations	0	GrantsOtherOrganizationsInd
Direct Contact Legislators	Yes (1)	DirectContactLegislatorsInd
Direct Contact Legislators	$9,460	DirectContactLegislatorsAmt
Rallies Demonstrations	0	RalliesDemonstrationsInd
Other Activities	Yes (1)	OtherActivitiesInd
Other Activities	$175,924	OtherActivitiesAmt
Total Lobbying Expenditures	$185,384	TotalLobbyingExpendituresAmt
Not Described Section501c3	0	NotDescribedSection501c3Ind

Supplemental Information Detail SupplementalInformationDetail

Field	Value	IRS element (for citing)
Form And Line Reference	Part II-B, Line 1:	FormAndLineReferenceDesc
Explanation	Covenant Health indirectly conducts lobbying activities through various membership organizations. A portion of membership dues paid is included in the amount on Line 1i.	ExplanationTxt

Schedule D IRS990ScheduleD

Land LandGrp

Field	Value	IRS element (for citing)
Other Cost Or Other Basis	$9,604,770	OtherCostOrOtherBasisAmt
Book Value	$9,604,770	BookValueAmt

Buildings BuildingsGrp

Field	Value	IRS element (for citing)
Other Cost Or Other Basis	$22,692,882	OtherCostOrOtherBasisAmt
Depreciation	$5,925,569	DepreciationAmt
Book Value	$16,767,313	BookValueAmt

Leasehold Improvements LeaseholdImprovementsGrp

Field	Value	IRS element (for citing)
Other Cost Or Other Basis	$1,253,692	OtherCostOrOtherBasisAmt
Depreciation	$1,163,486	DepreciationAmt
Book Value	$90,206	BookValueAmt

Equipment EquipmentGrp

Field	Value	IRS element (for citing)
Other Cost Or Other Basis	$21,745,118	OtherCostOrOtherBasisAmt
Depreciation	$18,453,784	DepreciationAmt
Book Value	$3,291,334	BookValueAmt

Other Land Buildings OtherLandBuildingsGrp

Field	Value	IRS element (for citing)
Other Cost Or Other Basis	$16,944,619	OtherCostOrOtherBasisAmt
Book Value	$16,944,619	BookValueAmt

Field	Value	IRS element (for citing)
Total Book Value Land Buildings	$46,698,242	TotalBookValueLandBuildingsAmt

Other Liabilities Org OtherLiabilitiesOrgGrp (4 entries)

DescDesc	AmtAmt
Long-Term ASO Agreement	$829,725
Long-Term Deferred Compensation	$6,379,879
Long-Term Reserve for Malpractice	$19,536,361
Long-Term Reserve for Workers Comp	-$95,520

Field	Value	IRS element (for citing)
Total Liability	$26,650,445	TotalLiabilityAmt
Footnote Text	Yes (X)	FootnoteTextInd

Supplemental Information Detail SupplementalInformationDetail

Field	Value	IRS element (for citing)
Form And Line Reference	Part X, Line 2:	FormAndLineReferenceDesc
Explanation	Note B to the consolidated audited financial statements of Covenant Health 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, 2016 and 2015. 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, 2016, tax returns for 2013 through 2016 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, 2016 or 2015."	ExplanationTxt

Schedule I IRS990ScheduleI

Field	Value	IRS element (for citing)
Grant Records Maintained	Yes (1)	GrantRecordsMaintainedInd

Recipient Table RecipientTable (25 entries)

Address Line1USAddress/AddressLine1Txt	CityUSAddress/CityNm	State AbbreviationUSAddress/StateAbbreviationCd	ZIPUSAddress/ZIPCd	Recipient EINRecipientEIN	IRC SectionIRCSectionDesc	Cash GrantCashGrantAmt	Purpose Of GrantPurposeOfGrantTxt
American Heart Association
4708 Papermill Road	Knoxville	TN	37909	135613797	501(c)(3)	$10,000	Sponsorship of 2016 Heart Gala
Cancer Support Community Inc
2230 Sutherland Avenue	Knoxville	TN	37919	581846210	501(c)(3)	$16,500	General support
Catholic Charities of East TN
119 Dameron Avenue	Knoxville	TN	37917	621377551	501(c)(3)	$20,000	General support
Dogwood Arts Festival Inc
602 S Gay Street	Knoxville	TN	37902	626074113	501(c)(3)	$20,000	Support for the fitness activities of the Dogwood Arts Festival
Boys & Girls Club of the TN Valley
220 Carrick Street Ste 318	Knoxville	TN	37921	620475743	501(c)(3)	$15,450	Drug screenings and general support
Morristown-Hamblen Hospital Foundation
1621 West Morris Blvd	Morristown	TN	37813	621697090	501(c)(6)	$6,200	Fundraisers benefiting Morristown-Hamblen Healthcare System
Fort Sanders Foundation
280 Ft Sanders West Blvd Ste 202	Knoxville	TN	37922	621748601	501(c)(3)	$10,000	Fundraisers benefiting Patricia Neal Rehab. Center, Peninsula, and the Hope Center
Great Smoky Mtn Council Boy Scouts of America
PO Box 51885	Knoxville	TN	37950	620476811	501(c)(3)	$7,500	Support for 2016 Friends of Scouting Campaign
Honor Air Knoxville
7536 Taggart Lane	Knoxville	TN	37938	262825063	501(c)(3)	$20,000	Support for flights for veterans to visit Washington, D.C. war memorials
Innovation Valley Inc
17 Market Square 201	Knoxville	TN	37902	262087582	501(c)(3)	$60,000	Support for regional economic development
Joni and Friends Ministry
410 S Northshore Drive	Knoxville	TN	37919	621458199	501(c)(3)	$10,000	General support
Knoxville Academy of Medicine
115 Suburban Road	Knoxville	TN	37923	621458199	501(c)(3)	$10,000	General supportGeneral support fundraising
Knoxville Medical Missions Foundation
1932 Historic Ferry Way	Knoxville	TN	37922	300197352	501(c)(3)	$10,000	General support
Knoxville Mercury
PO Box 43	Knoxville	TN	37901	473048798	501(c)(3)	$8,500	Legacy Park support
Knoxville Track Club
PO Box 53442	Knoxville	TN	37950	620731345	501(c)(3)	$50,000	General support: Covenant Health Marathon
Komen Knoxville Race for Cure
318 Nancy Lynn Lane 13	Knoxville	TN	37919	751835298	501(c)(3)	$12,000	Race sponsor for organization supporting breast cancer research and awareness
Leadership Knoxville
17 Market Square 201	Knoxville	TN	37902	621212211	501(c)(3)	$11,000	General support
Robert F Thomas Foundation
PO Box 4395	Sevierville	TN	37864	581537582	501(c)(3)	$8,000	Fundraisers to benefit LeConte Medical Center
Thompson Cancer Survival Center Foundation
1915 White Avenue	Knoxville	TN	37916	582130450	501(c)(3)	$9,200	Fundraisers to benefit Thompson Cancer Survival Center
United Way of Greater Knoxville
1301 Hannah Ave	Knoxville	TN	37921	620475748	501(c)(3)	$46,000	Support of the Interfaith Health Clinic; general support
Variety Children's Charity of East TN
7132 Regal Lane	Knoxville	TN	37918	331025696	501(c)(3)	$20,000	Support of programs for special needs children
W C Two
2351 Dandridge Avenue	Knoxville	TN	37915	621845117	501(c)(3)	$10,000	General support
St Mary's Legacy Clinic
805 S Northshore Drive	Knoxville	TN	379197551	462331706	501(c)(3)	$20,000	General support
Sacred Heart Church
711 S Northshore Drive	Knoxville	TN	37919	620572260	501(c)(3)	$10,000	Support for medical mission trip
East Tennessee Children's Hospital
PO Box 15101	Knoxville	TN	37901	626002604	501(c)(3)	$5,450	General support

Field	Value	IRS element (for citing)
Total501c3 Org	24	Total501c3OrgCnt
Total Other Org	1	TotalOtherOrgCnt

Supplemental Information Detail SupplementalInformationDetail

Field	Value	IRS element (for citing)
Form And Line Reference	Part I, Line 2:	FormAndLineReferenceDesc
Explanation	Eligibility and selection criteria for charitable contributions from Covenant Health are determined by a review of a written proposal or similar documentation submitted by the requesting organization. Intended use of funds must be stated or evident in the proposal/documentation. When an organization is approved for a charitable contribution from Covenant Health, a letter specifying how funds must be used in support of the organization's request is sent to the organization. Recipient organizations generally verify use of funds in one or more of the following ways: follow-up reports or newsletters, sponsor acknowledgement at a program or event, itemized receipts, or year-end summaries.	ExplanationTxt

Schedule J IRS990ScheduleJ

Field	Value	IRS element (for citing)
Travel For Companions	Yes (X)	TravelForCompanionsInd
Idemnification Gross Up Pmts	Yes (X)	IdemnificationGrossUpPmtsInd
Discretionary Spending Acct	Yes (X)	DiscretionarySpendingAcctInd
Personal Services	Yes (X)	PersonalServicesInd
Written Policy Ref T And E Expnss	Yes (1)	WrittenPolicyRefTAndEExpnssInd
Substantiation Required	Yes (1)	SubstantiationRequiredInd
Compensation Committee	Yes (X)	CompensationCommitteeInd
Independent Consultant	Yes (X)	IndependentConsultantInd
Compensation Survey	Yes (X)	CompensationSurveyInd
Board Or Committee Approval	Yes (X)	BoardOrCommitteeApprovalInd
Severance Payment	0	SeverancePaymentInd
Supplemental Nonqual Rtr Plan	Yes (1)	SupplementalNonqualRtrPlanInd
Equity Based Comp Arrngm	0	EquityBasedCompArrngmInd
Comp Based On Revenue Of Flng Org	0	CompBasedOnRevenueOfFlngOrgInd
Comp Bsd On Rev Related Orgs	0	CompBsdOnRevRelatedOrgsInd
Comp Bsd Net Earns Flng Org	0	CompBsdNetEarnsFlngOrgInd
Comp Bsd Net Earns Rltd Orgs	0	CompBsdNetEarnsRltdOrgsInd
Any Non Fixed Payments	0	AnyNonFixedPaymentsInd
Initial Contract Exception	0	InitialContractExceptionInd

Rltd Org Officer Trst Key Empl RltdOrgOfficerTrstKeyEmplGrp (13 entries)

TitleTitleTxt	Base Compensation Filing OrgBaseCompensationFilingOrgAmt	Compensation Based On Rltd OrgsCompensationBasedOnRltdOrgsAmt	Bonus Filing OrganizationBonusFilingOrganizationAmount	Bonus Related OrganizationsBonusRelatedOrganizationsAmt	Other Compensation Filing OrgOtherCompensationFilingOrgAmt	Other Compensation Rltd OrgsOtherCompensationRltdOrgsAmt	Deferred Compensation Flng OrgDeferredCompensationFlngOrgAmt	Deferred Comp Rltd OrgsDeferredCompRltdOrgsAmt	Nontaxable Benefits Filing OrgNontaxableBenefitsFilingOrgAmt	Nontaxable Benefits Rltd OrgsNontaxableBenefitsRltdOrgsAmt	Total Compensation Filing OrgTotalCompensationFilingOrgAmt	Total Compensation Rltd OrgsTotalCompensationRltdOrgsAmt	Comp Report Prior990 Filing OrgCompReportPrior990FilingOrgAmt	Comp Report Prior990 Rltd OrgsCompReportPrior990RltdOrgsAmt
James D VanderSteeg
President & CEO	$782,820	$0	$358,750	$0	$108,893	$0	$111,850	$0	$22,738	$0	$1,385,051	$0	$0	$0
Anthony L Spezia
CEO - Emeritus	$440,698	$0	$1,513,578	$0	$1,983,809	$0	$44,600	$0	$15,844	$0	$3,998,529	$0	$0	$0
John T Geppi
EVP/CFO	$508,448	$0	$236,250	$0	$86,939	$0	$10,600	$0	$17,357	$0	$859,594	$0	$0	$0
William M Ward
SVP-Chief Information Officer	$250,019	$0	$63,000	$0	$47,000	$0	$10,600	$0	$23,336	$0	$393,955	$0	$0	$0
Mark W Browne
SVP-Chief Medical Officer	$317,701	$0	$50,000	$0	$46,956	$0	$10,600	$0	$22,460	$0	$447,717	$0	$0	$0
Janice McKinley
SVP-Quality, Safety, & Nursing	$215,782	$0	$75,000	$0	$35,078	$0	$10,600	$0	$14,827	$0	$351,287	$0	$0	$0
Michael R Belbeck Jr
EVP - Hospital Operations	$395,143	$0	$80,000	$0	$25,921	$0	$10,600	$0	$25,238	$0	$536,902	$0	$0	$0
Lucas D Johnson
EVP - Physician Enterprises	$214,055	$0	$20,000	$0	$21,660	$0	$0	$0	$5,751	$0	$261,466	$0	$0	$0
Larry R Lassiter
President/CAO - Parkwest Med Ctr	$206,501	$0	$75,000	$0	$60,069	$0	$10,600	$0	$11,670	$0	$363,840	$0	$0	$0
Keith N Altshuler
President/CAO - Fort Sanders Reg	$275,449	$0	$80,000	$0	$48,249	$0	$10,600	$0	$24,932	$0	$439,230	$0	$0	$0
Gordon E Lintz
President/CAO - Morristown	$225,447	$0	$57,000	$0	$41,714	$0	$10,600	$0	$8,472	$0	$343,233	$0	$0	$0
Jeremy H Biggs
President/CAO - Methodist	$246,345	$0	$65,000	$0	$46,956	$0	$10,600	$0	$1,342	$0	$370,243	$0	$0	$0
Amanda G Halford
VP - Care Coordination	$251,290	$0	$30,000	$0	$15,301	$0	$15,473	$0	$22,463	$0	$334,527	$0	$0	$0

Supplemental Information Detail SupplementalInformationDetail (2 entries)

Form And Line ReferenceFormAndLineReferenceDesc

ExplanationExplanationTxt

Part I, Line 1a

Officers and Board members attending official Board retreats are offered a discretionary spending allowance that may be used for incidental spending and/or companion travel. The allowance is treated as taxable compensation to the recipient. Tax gross-up payments related to deferred compensation and reimbursement of fees for personal services for legal and financial planning are provided to certain executives and managers. These are treated as taxable compensation to the recipients. In addition, Board members receive tax indemnification payments related to reportable compensation from the spending allowances. These are treated as taxable compensation to the recipients.

Part I, Line 4b

Anthony Spezia 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 during 2016 was $67,140 and is not required to be reported in compensation in Part II as Mr. Spezia is not vested in the 2016 earnings on Plan A. However, in 2016 Mr. Spezia vested in the Plan A previously untaxed earnings accumulated after July 31, 2011 through 2015. The total amount of $352,567 has been reported in Col. B(iii) of Schedule J, Part II as it became fully vested and taxable in 2016. Plan B was established in 2011. Employer contributions to Plan B during 2016 totalled $34,000, which is reported in Col. C of Schedule J, Part II. Interest earned by Plan B during 2016 was $67,349 and is not required to be reported in compensation in Part II as Mr. Spezia is not vested in the 2016 additions to Plan B. However, in 2016 he vested in the employer contributions and earnings that occurred from 2011 through 2015, for Plan B. The total amount of $1,190,535 has been reported in Col. B(iii) of Schedule J, Part II as it became fully vested and taxable in 2016. James VanderSteeg was a participant in a nonqualified deferred compensation plan, which will be referred to as Plan A. Plan A was established in 2016. Employer contributions to Plan A during 2016 totalled $101,250, which is reported in Col. C of Schedule J, Part II. Interest earned by Plan A during 2016 of $2,349 is not required to be reported in compensation in Part II, as Mr. VanderSteeg is not vested in Plan A.

Schedule K IRS990ScheduleK

Tax Exempt Bonds Issues TaxExemptBondsIssuesGrp (4 entries)

Bond ReferenceBondReferenceCd	Bond Issuer EINBondIssuerEIN	CUSIPCUSIPNum	Bond IssuedBondIssuedDt	Issue PriceIssuePriceAmt	PurposePurposeDesc	DefeasedDefeasedInd	On Behalf Of IssuerOnBehalfOfIssuerInd	Pool FinancingPoolFinancingInd
Health Educ & Housing Facil Brd of Knox Co
A	621220275	499523UUO	2006-12-20	$46,245,448	See Part VI.	Yes (1)	0	0
Health Educ & Housing Facil Brd of Knox Co
B	621220275	noneavail	2014-03-17	$101,740,000	See Part VI.	0	0	0
Health Educ & Housing Facil Brd of Knox Co
C	621220275	noneavail	2011-09-15	$135,500,000	See Part VI.	0	0	0
Health Educ & Housing Facil Brd of Knox Co
D	621220275	noneavail	2011-09-15	$125,000,000	See Part VI.	0	0	0

Tax Exempt Bonds Proceeds TaxExemptBondsProceedsGrp (4 entries)

Bond ReferenceBondReferenceCd	RetiredRetiredAmt	Total ProceedsTotalProceedsAmt	Issuance Costs From ProceedsIssuanceCostsFromProceedsAmt	Capital ExpendituresCapitalExpendituresAmt	Other Spent ProceedsOtherSpentProceedsAmt	Substantial CompletionSubstantialCompletionYr	Current RefundingCurrentRefundingInd	Final Allocation MadeFinalAllocationMadeInd	Adequate Books And Rec MaintAdequateBooksAndRecMaintInd
A	$1,045,000	$48,898,371	$506,941	$24,636,429	$23,755,001	2010	Yes (1)	Yes (1)	Yes (1)
B	$1,400,000	$101,740,000			$101,740,000	2006	Yes (1)	Yes (1)	Yes (1)
C		$138,415,657		$102,915,657	$35,500,000	2013	Yes (1)	Yes (1)	Yes (1)
D		$125,000,000			$125,000,000	2010	Yes (1)	Yes (1)	Yes (1)

Tax Exempt Bonds Private Bus Use TaxExemptBondsPrivateBusUseGrp (3 entries)

Bond ReferenceBondReferenceCd	Mgmt Contract Bond Fincd PropMgmtContractBondFincdPropInd	Engage Bond Counsel ContractsEngageBondCounselContractsInd	Procs Nonqualified Bond RemdtdProcsNonqualifiedBondRemdtdInd
A	Yes (1)	Yes (1)	Yes (1)
C	Yes (1)	Yes (1)	Yes (1)
D	Yes (1)	Yes (1)	Yes (1)

Tax Exempt Bonds Arbitrage TaxExemptBondsArbitrageGrp (4 entries)

Bond ReferenceBondReferenceCd	Form8038 T FiledForm8038TFiledInd	Variable Rate IssueVariableRateIssueInd	Written Proc To Monitor ReqsWrittenProcToMonitorReqsInd	Rebate Not Due YetRebateNotDueYetInd	Exception To RebateExceptionToRebateInd	No Rebate DueNoRebateDueInd
A	Yes (1)	0	Yes (1)
B	0	Yes (1)	Yes (1)	0	Yes (1)	0
C	0	Yes (1)	Yes (1)	0	0	Yes (1)
D	0	Yes (1)	Yes (1)	0	Yes (1)	0

Procedures Corrective Action ProceduresCorrectiveActionGrp (4 entries)

Bond ReferenceBondReferenceCd	Procedures Corrective ActionProceduresCorrectiveActionInd
A	Yes (1)
B	Yes (1)
C	Yes (1)
D	Yes (1)

Supplemental Information Detail SupplementalInformationDetail

Field	Value	IRS element (for citing)
Form And Line Reference	SCHEDULE K, PART, COLUMN F	FormAndLineReferenceDesc
Explanation	As there are eight bond issues to be presented on Schedule K, there is an additional Schedule K included. Bond Issues - description of purpose: The Series 2006A Bonds described on Line A of Part 1 had been currently refunded (but not legally defeased) as of the end of the fiscal year and were paid in full on January 1, 2017. The Series 2011A and 2011B Bonds described on Line B of Part 1 were issued for the conversion of bonds issued on March 24, 2011 which had partially refunded bonds issued on December 12, 2002. The Series 2011C Revenue Note described on Line C of Part 1 refunded $35,500,000 of the variable rate bonds issued on December 20, 2006. All other proceeds were designated to build a replacement hospital in Roane County and for various facility and equipment improvements and additions at other facilities. Rebate computation was performed in February, 2016. The Series 2006B1-B3 Bonds described on Line D of Part 1 relate to the conversion of a portion of the variable rate bonds issued on December 20, 2006. The Series 2012A and 2012B Bonds described on Line A of Part 1 were issued to refund capital appreciation bonds and capital interest bonds issued on December 12, 2002. The Series 2014A Bonds described on Line B of Part 1 was a refinancing of Cumberland Medical Center (CMC) debt which was acquired through the acquisition of CMC on February 1, 2014. The Series 2016A Bonds described on Line C of Part 1 were issued to refund capital appreciation bonds issued December 20, 2006 and auction rate securities issued December 12, 2002. All other proceeds were designated for expansion projects at Fort Sanders Regional Medical Center and Parkwest Medical Center and for various facility and equipment improvements and additions at other facilities. Part III.5 - Private business use percentage on new projects is not yet available. The Series 2016B Bonds described on Line D of Part 1 refunded auction rate securities issued December 12, 2002.	ExplanationTxt

Schedule K IRS990ScheduleK

Tax Exempt Bonds Issues TaxExemptBondsIssuesGrp (4 entries)

Bond ReferenceBondReferenceCd	Bond Issuer EINBondIssuerEIN	CUSIPCUSIPNum	Bond IssuedBondIssuedDt	Issue PriceIssuePriceAmt	PurposePurposeDesc	DefeasedDefeasedInd	On Behalf Of IssuerOnBehalfOfIssuerInd	Pool FinancingPoolFinancingInd
Health Educ & Housing Facil Brd of Knox Co
A	621220275	499527BM0	2012-12-13	$161,291,013	See Part VI.	0	0	0
Health Educ & Housing Facil Brd of Knox Co
B	621220275	noneavail	2014-07-30	$38,665,750	See Part VI.	0	0	0
Health Educ & Housing Facil Brd of Knox Co
C	621220275	499527CH0	2016-11-10	$207,742,114		0	0	0
Health Educ & Housing Facil Brd of Knox Co
D	621220275	noneavail	2016-11-01	$74,000,000		0	0	0

Tax Exempt Bonds Proceeds TaxExemptBondsProceedsGrp (4 entries)

Bond ReferenceBondReferenceCd	RetiredRetiredAmt	Total ProceedsTotalProceedsAmt	Issuance Costs From ProceedsIssuanceCostsFromProceedsAmt	Other Spent ProceedsOtherSpentProceedsAmt	Substantial CompletionSubstantialCompletionYr	Current RefundingCurrentRefundingInd	Final Allocation MadeFinalAllocationMadeInd	Adequate Books And Rec MaintAdequateBooksAndRecMaintInd	Refunding EscrowRefundingEscrowAmt	UnspentUnspentAmt
A	$12,300,000	$161,291,013	$1,291,494	$159,999,519	2006	Yes (1)	Yes (1)	Yes (1)
B	$4,439,000	$38,665,750		$38,665,750	2006	Yes (1)	Yes (1)	Yes (1)
C		$207,770,641	$953,741	$13,075,000		Yes (1)	0	Yes (1)	$73,711,236	$120,030,664
D		$74,000,000		$74,000,000	2006	Yes (1)	Yes (1)	Yes (1)

Tax Exempt Bonds Private Bus Use TaxExemptBondsPrivateBusUseGrp (2 entries)

Bond ReferenceBondReferenceCd	Owning Bond Financed PropertyOwningBondFinancedPropertyInd	Any Lease ArrangementsAnyLeaseArrangementsInd	Mgmt Contract Bond Fincd PropMgmtContractBondFincdPropInd	Engage Bond Counsel ContractsEngageBondCounselContractsInd	Any Research AgreementsAnyResearchAgreementsInd	Bond Iss Meet Prvt Sec Pymt TestBondIssMeetPrvtSecPymtTestInd	Change In Use Bond Financed PropChangeInUseBondFinancedPropInd	Procs Nonqualified Bond RemdtdProcsNonqualifiedBondRemdtdInd
B	0	0	Yes (1)	Yes (1)	0	0	0	Yes (1)
C	0	0	Yes (1)	Yes (1)	0	0	0	Yes (1)

Tax Exempt Bonds Arbitrage TaxExemptBondsArbitrageGrp (4 entries)

Bond ReferenceBondReferenceCd	Rebate Not Due YetRebateNotDueYetInd	Exception To RebateExceptionToRebateInd	Variable Rate IssueVariableRateIssueInd	Written Proc To Monitor ReqsWrittenProcToMonitorReqsInd
A	0	Yes (1)	Yes (1)	Yes (1)
B	0	Yes (1)	Yes (1)	Yes (1)
C	Yes (1)	0	0	Yes (1)
D	0	Yes (1)	Yes (1)	Yes (1)

Procedures Corrective Action ProceduresCorrectiveActionGrp (4 entries)

Bond ReferenceBondReferenceCd	Procedures Corrective ActionProceduresCorrectiveActionInd
A	Yes (1)
B	Yes (1)
C	Yes (1)
D	Yes (1)

Schedule L IRS990ScheduleL

Bus Tr Involve Interested Prsn BusTrInvolveInterestedPrsnGrp

Name Of Interested NameOfInterested

Business Name BusinessName

Field	Value	IRS element (for citing)
Business Name Line1	First Tennessee Bank	BusinessNameLine1Txt

Field	Value	IRS element (for citing)
Relationship Description	Independent contractor	RelationshipDescriptionTxt
Transaction	$154,130	TransactionAmt
Transaction	Investment management	TransactionDesc
Sharing Of Revenues	0	SharingOfRevenuesInd

Schedule M IRS990ScheduleM

Works Of Art WorksOfArtGrp

Field	Value	IRS element (for citing)
Non Cash Checkbox	Yes (X)	NonCashCheckboxInd
Contribution	46	ContributionCnt
Noncash Contributions Rpt F990	$14,055	NoncashContributionsRptF990Amt
Method Of Determining Revenues	Retail value,expert	MethodOfDeterminingRevenuesTxt

Clothing And Household Goods ClothingAndHouseholdGoodsGrp

Field	Value	IRS element (for citing)
Non Cash Checkbox	Yes (X)	NonCashCheckboxInd
Noncash Contributions Rpt F990	$18,993	NoncashContributionsRptF990Amt
Method Of Determining Revenues	Various	MethodOfDeterminingRevenuesTxt

Food Inventory FoodInventoryGrp

Field	Value	IRS element (for citing)
Non Cash Checkbox	Yes (X)	NonCashCheckboxInd
Contribution	2	ContributionCnt
Noncash Contributions Rpt F990	$1,682	NoncashContributionsRptF990Amt
Method Of Determining Revenues	Retail value	MethodOfDeterminingRevenuesTxt

Other Non Cash Contri Table OtherNonCashContriTableGrp (2 entries)

Non Cash CheckboxNonCashCheckboxInd	DescDesc	ContributionContributionCnt	Noncash Contributions Rpt F990NoncashContributionsRptF990Amt	Method Of Determining RevenuesMethodOfDeterminingRevenuesTxt
Yes (X)	Gift cards	66	$18,986	Retail or face value
Yes (X)	Auction Items	1	$260	Retail or face value

Field	Value	IRS element (for citing)
Any Property That Must Be Held	0	AnyPropertyThatMustBeHeldInd
Review Process Unusual NC Gifts	0	ReviewProcessUnusualNCGiftsInd
Third Parties Used	0	ThirdPartiesUsedInd

Schedule O IRS990ScheduleO

Supplemental Information Detail SupplementalInformationDetail (11 entries)

Form And Line ReferenceFormAndLineReferenceDesc	ExplanationExplanationTxt
Form 990, Part III, Line 1	2016 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. Established in 1996, Covenant Health is celebrating 20 years of service and accomplishment. Recognized for excellence in many areas - quality of care, integrity of operations, financial strength, expertise and dedication of physicians, employees and volunteers, it continues a legacy of reinvestment in the counties where the facilities are located and dedication to improving the quality of life through better health for our patients and community. Covenant Health Board members and administrative leaders serve our communities through strategic planning and successful operation of these 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. Covenant Health is also a partner in joint ventures with physicians that provide surgical and other services. 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 Introducing Covenant Health's Executive Leadership Team "Continuing the Legacy" is the theme of the 2016 annual report, recognizing both the 20th anniversary of Covenant Health and an executive leadership transition for the health system. In November 2015, Anthony L. (Tony) Spezia announced that he would transition from president and CEO of Covenant Health to CEO Emeritus. Jim VanderSteeg was named as his successor, effective April 1, 2016. Spezia served as president and CEO of Covenant Health for more than 15 years. During that time he oversaw the health system's geographic expansion; the addition of new member hospitals investment of more $1.2 billion in facilities, technology and services, and growth in the number of employees and affiliated physicians. Spezia now focuses his efforts on the healthcare industry, legislative issues and public policy initiatives. Jim VanderSteeg joined Covenant Health in 2007 after nearly 20 years in administrative and executive leadership roles at Baptist Memorial Healthcare Corp., a healthcare delivery system with 13 hospitals in Tennessee and Mississippi. He is "continuing the legacy," focusing on the health system's vision of putting the patient first, the highest standards of excellence, and assuring that Covenant Health is the first and best choice for healthcare services in our communities. With VanderSteeg as CEO, Covenant's new Executive Leadership Team includes: John Geppi, who continues to serve as the organization's executive vice president and chief financial officer. Geppi has been with Covenant Health since 2000. He has been named to a national list of "Hospital and Health System CFOs to Know and was named the area's CFO of the Year by FEI and the Greater Knoxville Business Journal in 2012. Mike Belbeck, executive vice president of operations, who previously served as president and chief administrative officer of Methodist Medical Center of Oak Ridge. He joined Covenant Health in 2007. Luke Johnson joined the health system in April 2016 as executive vice president, physician enterprise/ambulatory services. Johnson has leadership responsibilities for Thompson Cancer Survival Center, ambulatory retail and urgent care services, physician engagement and alignment strategies, and Covenant Medical Group, along with all other employed physician enterprises. Patient Care Highlights Patient Care Summary Population of 23-County Service Area 1,427,213 (2010 Census) 2013 2014 2015 Admissions 58,411 67,235 68,193 (Excludes nursing home) Inpatient surgeries 15,669 16,908 16,585 Outpatient Surgeries 27,042 29,644 29,265 ED Visits 275,259 317,575 328,360 Outpatient Visits 960,128 1,040,593 1,061,082 Physician Office Visits 489,056 499,881 548,210 Covenant Health Named Among "America's Best Employers" Covenant Health was one of only 44 hospitals and health systems named to the Forbes 2016 list of "America's Best Employers." This year's lists included a total of 750 large and mid-size U.S. businesses of all types. In the list of 250 mid-size companies, Covenant was listed seventh among hospitals and health organizations and 50th in the overall list. It was the only healthcare organization in East Tennessee to be included in the list. Forbes partnered with statistics firm Statista to compile data from a survey of more than 30,000 U.S. employees. Survey participants were asked if they would recommend their employer to a potential new hire, and they were asked their views about other companies in their industry. Employees were contacted anonymously online without the involvement of their employers, and respondents represented the U.S. workforce by gender, age, region, education, and ethnicity. Covenant Health has a broad-based approach to being an employer of choice. It is nationally recognized for organizational ethics and offers many opportunities for leadership development and professional advancement. In addition, the employee recognition programs celebrate individual performance, team collaboration and best practices. These attributes help create an outstanding work environment.
Form 990, Part III, Line 1	New Nurse Residency Program Supports School-to-Work Transition for Recent Grads Program Receives $15,000 Grant in First Year of Operation Covenant Health implemented a nurse residency program to support newly graduated nurses as they transition into new responsibilities in a fast-paced hospital environment. Covenant adopted the Vizient/AACN Nurse Residency Program, used by more than 200 hospitals and health systems nationwide. The program emphasizes evidence-based practices and is designed to empower new nurses with increased competence, more confident decision making, stronger leadership and critical-thinking skills, and greater work satisfaction. Hospitals that have implemented the program have seen reductions in nursing turnover and a positive impact on patient safety and quality of care. It is important for new nursing graduates to have a group of peers and mentors who assist them in enhancing their skills and becoming comfortable with the challenges of practice. The positive clinical outcomes helps not only the participating nurses, but also patients. The new initiative recently received a $15,000 grant from The Promise of Nursing for Tennessee Nursing School Grant Program administered by the Foundation of the National Student Nurses' Association. Funds for the grant program were contributed by several hospitals and health care agencies in the Tennessee area, by Johnson & Johnson, and by national companies with an interest in supporting nursing education, and were raised at a gala event sponsored by Johnson & Johnson. Covenant Health Partners with LMU in New Medical Student Program Covenant Health has launched a medical student program in partnership with DeBusk College of Osteopathic Medicine at Lincoln Memorial University in Harrogate, Tennessee. The medical student program provides clinical experiences for aspiring physicians and mid-level providers. Students are assigned to one of several participating Covenant Health hospitals for their clinical training. They may also participate in elective experiences at other Covenant facilities in specialty areas such as primary care, neurology, perinatology, radiology, and orthopedics. Working under the direct supervision of physicians, students interview and examine patients, review clinical information, make hospital rounds, participate in interdisciplinary team meetings, practice appropriate documentation, and perform procedures. There is a shortage of medical professionals in the area, and the medical student program helps address the need. Convenient Care for Downtown Knoxville Knoxvillians who work or live downtown now have a convenient location to receive medical care when they need it. In early 2016 Covenant Health opened Convenient Care Downtown, a clinic designed to meet the immediate medical needs of downtown employees, residents and visitors. Located in the Phoenix Building at 418 South Gay Street, Convenient Care Downtown offers treatment for minor illnesses and injuries such as cold, allergies, and sprains. Sports and camp physicals are available, as well as flu shots and new-hire drug screenings. No appointment is needed and most insurance plans are accepted. With the new clinic Covenant Health is able to offer quality walk-in care for people who live, work, and visit downtown. Covenant Health Solutions Covenant Health works with local businesses and organizations to develop strategies and programs for improving their employees' health. 2016 Summary * 10 business clients, comprising approximately 750 employees * Worksite clinics at Jewelry Television and Sevier County Wellness Clinic * Services offered: biometric screenings, health risk assessments and personal health reports, aggregate health analysis, newsletters, educational and diabetes classes, weight loss programs, health coaching Clinical Accomplishments In addition to its nine acute care hospitals, Covenant Health provides services including Covenant HomeCare; inpatient and outpatient behavioral care through Peninsula, a division of Parkwest Medical Center; a comprehensive system-wide cancer network, and rehabilitation/therapy services. Fort Sanders Regional Medical Center is the hub of Covenant's stroke hospital network. The medical center is an accredited Stroke Center of Excellence and also is home to the Patricia Neal Rehabilitation Center. These programs and others assure that all aspects of a patient's healthcare needs can be met in Knoxville and surrounding communities, and patients do not have to leave the area to find specialized services. Major service lines include cardiology, inpatient medicine, neuro/stroke, oncology, and orthopedics/spine services. Each service line has active leadership and participation from the medical staff, and we cooperatively focus on patient-centered, quality care and the development of new programs and initiatives to serve our communities. Service Line Summary Cardiac - Covenant Health was the first area health system to pioneer TAVR (pronounced "Tav-R"), a minimally invasive treatment for a life-threatening heart condition called aortic stenosis. The program continues to improve patient outcomes and decrease length of hospital stay for TAVR patients. The cardiac service line also is implementing new technologies such as mitraclip (non-surgical heart valve repair) and subcutaneous implantable defibrillators (heart rhythm defibrillators that are implanted under the skin) at selected facilities. Inpatient Medicine - Covenant Health has aggressive initiatives underway throughout the system to exceed national standards for eliminating infections that can be acquired in healthcare settings. Covenant's goal is "zero harm and the highest standards of patient safety. Neuro/Stroke - Covenant Health has increased appropriate use of tPA ("clot-busting" medication) for stroke patients in emergency rooms at hospitals throughout the surrounding area (both Covenant and non-Covenant facilities). "Code Stroke" rapid response teams are in place throughout the health system to assure that patients receive the fastest evaluations and advanced treatment when a stroke occurs. Oncology - Many Covenant Health breast centers now offer 3D mammography (tomosynthesis), which allows the radiologist to better detect smaller cancers, even in women with dense breast tissue. Covenant Health also has implemented low-dose CT lung cancer screening at several facilities. The process uses lower levels of radiation while identifying lung cancer earlier among patients at high risk for the disease. Oncology services also has expanded its nurse navigation program, which assigns an oncology nursing professional to each cancer patient. The nurse navigator provides clinical information and coordination of medical and community resources to support cancer patients and their families. Orthopedic - Covenant Health facilities have reduced incidences of surgical site infections and post-surgery readmission rates for hip and knee procedures. This service line also has a special focus on excellence in spine surgery. Covenant Health continually seeks feedback from patients regarding their hospital experiences and focuses on patient satisfaction and perception of overall quality of care. More than 95 percent of patients rate their outpatient and outpatient surgery experiences as "very good or "excellent." The health system has recently established multiple Patient/Family Partnership Councils, bringing former patients and staff members together to determine ways to enhance patients' overall care experience.
Form 990, Part III, Line 1	From Our Member Organizations In 2016 the S&P Global Ratings raised the long-term rating and underlying rating to "A" from "A-" on the health system's series 2006A-1, 2011C and 2012A bonds and assigned an "A" rating to the system's 2016A bonds. Ratings services assign bond ratings based on an organization's financial strength and performance outlook. The 'A' rating from S&P Global gives Covenant Health the highest bond rating among healthcare organizations in the East Tennessee area. A higher bond rating enables Covenant to fund facility expansions or major projects at continued lower interest rates and overall cost of capital, enhancing the health system's ability to provide excellent care. Covenant Health selected Cerner, a worldwide provider of health information technologies, to provide a comprehensive suite of integrated solutions to support Covenant's clinical, financial and population health management initiatives. The implementation will include initiatives such as an upgraded electronic health record, a revenue cycle platform, clinical support systems and an expanded patient portal. Cerner's IT solutions will support Covenant Health as it continues to improve patient outcomes and population health, and positively impact the quality of life in our communities. Covenant Homecare has earned four-star quality ratings based on outcome measures and patient satisfaction data collected by the Centers for Medicare and Medicaid Services (CMS). Covenant Hospice has received Level II designation in We Honor Veterans, a national awareness action campaign that encourages partnerships between community hospices, state hospice organizations and VA facilities for veterans' end-of-life care. Claiborne Medical Center has continued to upgrade facilities in 2016. A major project included the purchase of new nuclear medicine equipment to perform both general and cardiac nuclear medicine testing. The renovation also included the development of a "hot lab" (where radioactive diagnostic tracers are prepared) and reorganized other areas for improved patient flow. Other facility upgrades included purchase of new pulmonary function equipment for the respiratory department and installation of exterior signage using the hospital's new logo and Covenant Health branding. Cumberland Medical Center opened its new $6.3 million Emergency Department in early October. The hospital also welcomed its first full-time interventional cardiologist, enabling the hospital to offer expanded cardiology services. Fort Sanders Regional Medical Center's cardiology department received the 2016 American College of Cardiology Foundation's NCDR ACTION Registry - 2016 GWTG Gold Plus Performance Achievement Award with Honor Roll status for Elite Stroke Care. The award honors hospitals that have maintained a 90% or better performance of care guidelines for eight consecutive quarters. Fort Sanders has been recertified by The Joint Commission as a Comprehensive Stroke Center. The stroke program's capabilities and outreach efforts were expanded by the addition of neurohospitalists to the medical staff. Fort Sanders Regional was recognized in Becker's Hospital Review as one of "100 Hospitals and Health Systems with Great Oncology Programs." Hospital renovations included a new 5,000-square-foot cardiac and pulmonary rehab facility, a new hybrid operating room and in-hospital MRI. LeConte Medical Center was included on the 2016 list of "100 Great Community Hospitals" in the U.S. compiled by Becker's Hospital Review. The Becker's editorial team selected community hospitals around the country based on rankings and awards from a variety of healthcare organizations, including iVantage Health Analytics, Truven Health Analytics, Healthgrades, CareChex, the American Nurses Credentialing Center and the Leapfrog Group. Methodist Medical Center piloted the health system's new low-dose CT screening for those at high risk for lung cancer. Studies have shown that early detection through yearly low-dose CT lung screenings can lower the risk of death from lung cancer by 20 percent among people who are at high risk. Without LDCT screening, lung cancer is usually not found until a person develops symptoms. Parkwest Medical Center was ranked by the Tennessee Hospital Association as number one in our region and second in the state in 2016 for number of joint replacements performed. The medical center also became certified as a NICHE hospital, recognizing its capabilities in providing care for elderly patients. Peninsula, the behavioral health division of Parkwest Medical Center, received the Optum ACE Award for clinical excellence in 2016. The organization has designated a staff member as a liaison with Knox Area Rescue Ministries (KARM) to assist with patient transitions and follow-up. Community Outreach Covenant Health Knoxville Marathon Celebrates 12th Year Nearly 8,000 runners took to the streets of Knoxville on April 2 and 3, 2016, for the 12th annual Covenant Health Knoxville Marathon. The two-day event included the Covenant Kids Run and 5k race on Saturday evening and the half-marathon, four-person relay and full marathon on Sunday, April 3. Plans are already underway for the 13th marathon 2017. The marathon helps us promote fitness and good health, and has a positive impact on tourism and quality of life in East Tennessee. The 2016 event also included a Fittest Company Challenge and a Corporate Challenge Team of individuals representing 14 area businesses who trained together in pursuit of healthier lifestyles while preparing for marathon events. Dogwood Patch Program Encourages Community to Enjoy Local Outdoor Beauty As the flowering dogwood trees began showing the pink and white blossoms this past spring, Covenant Health announced a new initiative as part of its health and fitness sponsorship of the Dogwood Arts Festival. The health system offered a limited-edition patch for anyone who hiked 25 miles on featured Dogwood Trails. Miles had to be completed between April 1 and May 31. Led by Missy Kane, Covenant's health promotions coordinator, the patch program inspires people of all fitness levels to get moving and enjoy the benefits of a more active lifestyle, along with the natural beauty of East Tennessee. More than 300 people qualified to receive a patch during the program's initial year. Katerpillar Kids Supports Children Grieving Loss of a Loved One Covenant HomeCare Hospice continues to offer Katerpillar Kids Camp, a free event offered with the support of Variety-The Children's Charity. Held annually at Camp Wesley Woods in Townsend, the weekend day camp helps children in grades 1-12 express feelings of loss in a supportive environment, while enjoying new friendships, crafts and outdoor activities. Covenant Health Provides Ongoing Support for HonorAir Knoxville Covenant Health is a major sponsor of Knoxville's HonorAir program, which takes WWII, Korean and Vietnam veterans from East Tennessee (at no charge to them) to Washington, D.C., to visit the memorials built to honor their sacrifice. In spring 2016, for the first time the program included a flight that was solely for Vietnam veterans. In addition to financial support, Covenant Health has provided a staff physician for the majority of the flights, with Mitch Dickson, MD (also a Covenant board member), and Mike Ayres, MD, serving in that role. Covenant Health also has sent a volunteer escort on every HonorAir Knoxville flight. Under the leadership of Drs. Dickson and Ayres, the medical team that travels on each flight is well prepared to meet any needs the veterans may have.
Form 990, Part III, Line 1	Philanthropy Builds a Legacy Throughout the years, fundraising efforts across Covenant Health have brought generous individuals and businesses together to make an impact on the health of our communities. In the last year, there have been many opportunities to celebrate and grow Covenant Health's legacy of excellence through fundraising: SUBWAY Race Against Cancer Thompson Cancer Survival Center was established with the help of many generous donors and has a long tradition of charitable support. The Smothers family and BUDDY's bar-b-q had great vision in establishing the Race Against Cancer to benefit the center 22 years ago. All funds raised by the race have stayed in East Tennessee to provide cancer screenings, education and outreach to our communities. In 2015 Covenant health announced the next step for this signature event with the lead corporate sponsorship of SUBWAY . The partnership with local franchises brings opportunities to expand the reach and success of the race. Hope Center The Hope Center's journey began in 1996 for people who are affected by HIV. Originally based at Fort Sanders Regional Medical Center, the program has adapted to the changing needs of the HIV community. Last year the program transitioned to be a part of Covenant HomeCare with a new medical director and program coordinator. The hope-focused care model created in 1996 continues to be the essence of care for the Center's services. The Hope Center provides, at no charge, caring support and assistance to individuals and families living with HIV. Inpatients, outpatients and newly diagnosed individuals have a safe, non-stigmatizing place to feel encouraged and valued. The Hope Center is completely funded through philanthropic donations and grants, and generous volunteers help provide many of its services. Hospitality Houses In 2016, 211 guests spent 1,787 nights at two Hospitality Houses for patients and families receiving care at Methodist Medical Center in Oak Ridge. Each house has private suites, a fully stocked kitchen, a shared family room and laundry facilities. The two houses are increasingly at 100% occupancy. An additional house is owned by Methodist but needs renovation in order to become the third Hospitality House, at an estimated cost of $400,000. Earlier this year, a fundraising campaign began under the leadership of MMC Foundation board member Steve Whitson to raise both financial and in-kind contributions of material and labor. Oak Ridge businesses UT-Battelle and Pro2Serve have committed the lead charitable gifts to the campaign. As a result of their generosity, the third house will be named the UT-Battelle/Pro2Serve House. Covenant Health's Office of Philanthropy also supports the Fellowship Center, which provides housing for patients and families receiving care at Covenant locations in downtown Knoxville. The Covenant Health Office of Philanthropy coordinates these fund raising efforts of the boards of directors and staff at four foundations: * Fort Sanders Foundation (serving Fort Sanders Regional, Fort Loudoun, Parkwest, Roane, and Cumberland Medical Centers; Peninsula; Covenant HomeCare/Hospice; Hope Center; and Patricia Neal Rehabilitation Center) * Methodist Medical Center * Morristown-Hamblen Hospital Foundation * Thompson Cancer Survival Center Foundation
Form 990, Part VI, Section A, line 4	On December 5, 2016, Covenant Health, parent company of the organization, changed its corporate bylaws as follows: While the organization has in prior periods maintained a robust internal audit function, the organization amended its bylaws to create the position of "internal audit officer." The internal audit officer is appointed by the president and is to be invited to all meetings of the existing Audit Committee to provide information and answer questions posed by the Audit Committee. The internal audit officer shall also be responsible for preparing and reporting information necessary for the Audit Committee to carry out its functions and shall make an annual report to the Audit Committee on the status and effectiveness of the internal audit function. Direct access to the Audit Committee and the Board of Directors shall be afforded the internal audit officer when the officer deems necessary. Amendments were made to the bylaws to delegate to the Integrity Compliance Committee the authority to approve contracts or other arrangements involving or relating to transactions in which a director or officer has a conflict of interest, except where such authority is retained by the Board of Directors or delegated to another committee. The purpose of this amendment is to ensure that the committee of the board charged with leading the organization's compliance effort reviews all potential conflict of interest transactions consistent with the organization's previously adopted and expansive conflict of interest policies and procedures.
Form 990, Part VI, Section B, line 11b	Part VI, Section B, Line 11: Covenant Health is a large integrated health system which files fourteen Forms 990. Annually, at the September Finance Committee meeting, one of the fourteen 990s is selected (a different entity each year) for distribution to each member of the Committee. Management then reviews in detail each of the Form 990 schedules and describes variances between entities, if any. The remaining thirteen Forms are made available for review by any committee member. The same presentation is made to the Covenant Health Board of Directors at the October meeting. All fourteen Forms 990 are then made available to all board members for their review throughout the month of October.
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. 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 with 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 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	Form 990, Part VI, Section B, Line 15a: Annual compensation for Covenant Health's Presidents and Chief Executive Officers ("CEO"), James D. VanderSteeg and Anthony L. Spezia, are determined by the Compensation Committee of the Covenant Health Board of Directors, ("the Committee") which is composed of independent members of the board and chaired by the chairman 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 "Consultant") whose services include: (1) providing pay comparisons with market comparables; (2) recommending salary ranges and annual base salary adjustments; (3) designing incentive compensation and deferred compensation components of the CEO's total compensation package; (4) reviewing benefits and perquisites; and (5) certifying as to the reasonableness of total annual compensation. The Consultant analyzes and makes recommendations with respect to the CEO's total compensation package through analysis of CEO compensation data for comparable nonprofit health systems in the United States. The systems selected for comparison are similar to Covenant Health in revenue, total assets, number of hospitals, full time employees and services provided. Covenant Health's current compensation methodology includes setting base salary around the 50th percentile of the market. Base salaries for individual executives will vary based on market conditions, performance, tenure, experience, special skills or qualifications, recruitment and retention challenges, and other relevant factors. In addition, annual incentive compensation may be awarded upon achievement of goals established by the Committee at the beginning of each fiscal year which reflect quality of care, patient safety and service excellence in addition to financial performance and other measures. Incentive opportunity levels will be positioned at or slightly above median or average levels in the market. Annual incentive opportunity ranges from 0-50% of base salary depending upon the CEO's performance. Overall, total compensation levels (all forms of cash compensation and benefits) will be positioned up to or around the 75th percentile of the market, based on individual and organizational performance. As a part of its CEO performance evaluation process, the Committee asks each member of the board of directors to submit a written evaluation of the CEO's performance using an evaluation form prepared by an independent audit firm. This information is collected, collated, and reported to the Committee by the audit firm; results are "blinded" so that individual board members are not identified. The blinded results are shared with the CEO as part of the evaluation process. Any increase in base salary, award of annual incentive, or changes in overall compensation methodology are made by the Committee after discussion with and advice of the Consultant and conditioned upon the Consultant's determination that such decisions result in total annual compensation that is reasonable and within a fair market value range. Once the annual performance evaluation is completed, the chairman and at least one other member of the Committee meet with the CEO and share the Committee and board's evaluation of his prior year's performance, communicate his performance goals for the upcoming year, and inform him of the Committee's actions with respect to any annual incentive award for the prior year and any base salary adjustment for the upcoming year. Form 990, Part VI, Section B, Line 15b: Base salaries and annual bonus opportunities for Key Executives (1) are set by the Covenant Health Chief Executive Officer (CEO) in consultation with 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 for each executive is reasonable and within a fair market value range. Salary ranges for each executive position 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 each Key Executive is reasonable and consistent with fair market value. Base salaries are initially targeted at midpoint and 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 - 45% for the Executive Vice Presidents (EVP), and 0 - 35% for the Senior Vice Presidents (SVP) and Chief Administrative Officers (CAO) of base salary based upon system performance and accomplishment of certain targets established by the CEO. (1) KEY EXECUTIVES: Covenant Health employees: John T. Geppi, EVP-Chief Financial Officer Michael R. Belbeck Jr., EVP-Hospital Operations Lucas D. Johnson Sr., EVP-Physician Enterprises & Ambulatory Services William M. Ward, SVP-Chief Information Officer Mark W. Browne, SVP-Chief Medical Officer Janice McKinley, SVP-Quality, Safety & Nursing Operations
Form 990, Part VI, Section C, line 19	Per its tax exempt bond provisions, Covenant Health 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:	Book/Tax Diff in Income(Loss) from Partnerships/Trusts -2,189,707. Return of capital from subsidiaries 257,881,624. Capital contributed to subsidiaries -116,415,443. Change in 457(b) unrealized gain/loss 273,384.
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.

Schedule R IRS990ScheduleR

Id Disregarded Entities IdDisregardedEntitiesGrp

Disregarded Entity Name DisregardedEntityName

Field	Value	IRS element (for citing)
Business Name Line1	Covenant Ventures LLC	BusinessNameLine1Txt

US Address USAddress

Field	Value	IRS element (for citing)
Address Line1	100 Fort Sanders West Blvd	AddressLine1Txt
City	Knoxville	CityNm
State Abbreviation	TN	StateAbbreviationCd
ZIP	37922	ZIPCd

Field	Value	IRS element (for citing)
EIN	300913192	EIN
Primary Activities	Develop healthcare software	PrimaryActivitiesTxt
Legal Domicile State	TN	LegalDomicileStateCd
Total Income	$1,283,553	TotalIncomeAmt
End Of Year Assets	$3,716,447	EndOfYearAssetsAmt

Direct Controlling Entity Name DirectControllingEntityName

Field	Value	IRS element (for citing)
Business Name Line1	Covenant Health	BusinessNameLine1Txt

Id Related Tax Exempt Org IdRelatedTaxExemptOrgGrp (15 entries)

Address Line1USAddress/AddressLine1Txt	CityUSAddress/CityNm	State AbbreviationUSAddress/StateAbbreviationCd	ZIPUSAddress/ZIPCd	EINEIN	Primary ActivitiesPrimaryActivitiesTxt	Legal Domicile StateLegalDomicileStateCd	Exempt Code SectionExemptCodeSectionTxt	Public Charity StatusPublicCharityStatusTxt	Business Name Line1DirectControllingEntityName/BusinessNameLine1Txt	Controlled OrganizationControlledOrganizationInd
Fort Sanders Regional Medical Center
1901 W Clinch Ave	Knoxville	TN	37916	620528340	Acute care hospital	TN	501(c)(3)	Line 3	Covenant Health	Yes (1)
Parkwest Medical Center
9352 Park West Blvd	Knoxville	TN	37923	581897274	Acute care hospital and behavioral health services	TN	501(c)(3)	Line 3	Covenant Health	Yes (1)
Methodist Medical Center
990 Oak Ridge Turnpike	Oak Ridge	TN	37830	620636239	Acute care hospital	TN	501(c)(3)	Line 3	Covenant Health	Yes (1)
LeConte Medical Center
742 Middle Creek Road	Sevierville	TN	37862	621114867	Acute care hospital	TN	501(c)(3)	Line 3	Covenant Health	Yes (1)
Roane County Medical Center
8045 Roane Medical Center Dr	Harriman	TN	37748	680673354	Acute care hospital	TN	501(c)(3)	Line 3	Covenant Health	Yes (1)
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	Yes (1)
Thompson Cancer Survival Center
1915 White Ave	Knoxville	TN	37916	621250943	Cancer support center	TN	501(c)(3)	Line 3	Covenant Health	Yes (1)
Thompson Oncology Group
1915 White Ave	Knoxville	TN	37916	621619239	Oncology services	TN	501(c)(3)	Line 3	Thompson Cancer Survival Center	Yes (1)
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	Yes (1)
Covenant Homecare
3001 Lake Brook Blvd Ste 101	Knoxville	TN	37909	621623114	Home health services and DME	TN	501(c)(3)	Line 10	Covenant Health	Yes (1)
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	Yes (1)
Morristown-Hamblen Hospital Association
908 W 4th N St	Morristown	TN	37814	620545814	Acute care hospital	TN	501(c)(3)	Line 3	Covenant Health	Yes (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	Yes (1)
Cumberland Medical Center
421 S Main St	Crossville	TN	385555048	620790132	Acute Care Hospital	TN	501(c)(3)	Line 3	Covenant Health	Yes (1)
Claiborne Medical Center
1850 Old Knoxville Rd	Tazewell	TN	378793625	464420358	Acute care hospital	TN	501(c)(3)	Line 3	Covenant Health	Yes (1)

Id Related Org Txbl Partnership IdRelatedOrgTxblPartnershipGrp (6 entries)

Address Line1USAddress/AddressLine1Txt	CityUSAddress/CityNm	State AbbreviationUSAddress/StateAbbreviationCd	ZIPUSAddress/ZIPCd	EINEIN	Primary ActivitiesPrimaryActivitiesTxt	Legal Domicile StateLegalDomicileStateCd	Direct Controlling NADirectControllingNACd
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	Orthodopaedic 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

Id Related Org Txbl Corp Tr IdRelatedOrgTxblCorpTrGrp (4 entries)

Address Line1USAddress/AddressLine1Txt	CityUSAddress/CityNm	State AbbreviationUSAddress/StateAbbreviationCd	ZIPUSAddress/ZIPCd	EINEIN	Primary ActivitiesPrimaryActivitiesTxt	Legal Domicile StateLegalDomicileStateCd	Business Name Line1DirectControllingEntityName/BusinessNameLine1Txt	Entity TypeEntityTypeTxt	OwnershipOwnershipPct	Controlled OrganizationControlledOrganizationInd	Direct Controlling NADirectControllingNACd
Fortress Corporation
280 Fort Sanders West Blvd Ste 214	Knoxville	TN	37922	621308885	Management company	TN	Covenant Health	C	1.00000	Yes (1)
Covenant Medical Group Inc
1400 Centerpoint Blvd Ste 100 Bldg	Knoxville	TN	37932	621282917	Physician practice management	TN		C		Yes (1)	N/A
Knoxville Heart Group
1819 Clinch Ave Ste 108	Knoxville	TN	37916	271528941	Cardiology medical practice	TN		C		Yes (1)	N/A
East TN Cardiovascular Surgery Group Inc
9125 Cross Park Drive Ste 200	Knoxville	TN	37923	621018541	Cardiovascular surgical practice	TN		C		Yes (1)	N/A

Field	Value	IRS element (for citing)
Receipt Of Int Annts Rnts Rylts	Yes (1)	ReceiptOfIntAnntsRntsRyltsInd
Gift Grnt Or Cap Contri To Oth Org	Yes (1)	GiftGrntOrCapContriToOthOrgInd
Gift Grnt Cap Contri From Oth Org	Yes (1)	GiftGrntCapContriFromOthOrgInd
Loans Or Guarantees To Other Org	0	LoansOrGuaranteesToOtherOrgInd
Loans Or Guarantees From Oth Org	0	LoansOrGuaranteesFromOthOrgInd
Div Related Organization	Yes (1)	DivRelatedOrganizationInd
Asset Sale To Other Org	0	AssetSaleToOtherOrgInd
Asset Purchase From Other Org	0	AssetPurchaseFromOtherOrgInd
Asset Exchange	0	AssetExchangeInd
Rental Of Facilities To Oth Org	0	RentalOfFacilitiesToOthOrgInd
Rental Of Fclts From Oth Org	Yes (1)	RentalOfFcltsFromOthOrgInd
Perform Of Services For Oth Org	Yes (1)	PerformOfServicesForOthOrgInd
Perform Of Services By Other Org	Yes (1)	PerformOfServicesByOtherOrgInd
Sharing Of Facilities	Yes (1)	SharingOfFacilitiesInd
Paid Employees Sharing	Yes (1)	PaidEmployeesSharingInd
Reimbursement Paid To Other Org	Yes (1)	ReimbursementPaidToOtherOrgInd
Reimbursement Paid By Other Org	Yes (1)	ReimbursementPaidByOtherOrgInd
Transfer To Other Org	Yes (1)	TransferToOtherOrgInd
Transfer From Other Org	Yes (1)	TransferFromOtherOrgInd

Transactions Related Org TransactionsRelatedOrgGrp (66 entries)

Transaction TypeTransactionTypeTxt	InvolvedInvolvedAmt	Method Of Amount DeterminationMethodOfAmountDeterminationTxt
Fort Sanders Regional Medical Center
L	$26,569,989	FMV
Fort Sanders Regional Medical Center
O	$55,715	FMV
Fort Sanders Regional Medical Center
P	$12,557,819	Cost
Fort Sanders Regional Medical Center
Q	$242,856,258	Cost
Fort Sanders Regional Medical Center
S	$160,769,295	Cash
Parkwest Medical Center
L	$26,242,429	FMV
Parkwest Medical Center
O	$56,883	FMV
Parkwest Medical Center
P	$13,993,528	Cost
Parkwest Medical Center
Q	$205,334,564	Cost
Parkwest Medical Center
S	$2,093,151	Cash
Cumberland Medical Center
L	$2,698,687	FMV
Cumberland Medical Center
O	$435,176	FMV
Cumberland Medical Center
P	$56,749	Cost
Cumberland Medical Center
Q	$8,095,097	Cost
Methodist Medical Center
L	$14,241,135	FMV
Methodist Medical Center
P	$6,834,425	Cost
Methodist Medical Center
Q	$72,189,849	Cost
Methodist Medical Center
S	$75,609,312	Cash
Morristown-Hamblen Hospital Association
L	$8,103,461	FMV
Morristown-Hamblen Hospital Association
P	$4,144,372	Cost
Morristown-Hamblen Hospital Association
Q	$48,241,662	Cost
Morristown-Hamblen Hospital Association
S	$49,324,002	Cash
LeConte Medical Center
L	$7,366,670	FMV
LeConte Medical Center
P	$2,691,419	Cost
LeConte Medical Center
Q	$51,308,265	Cost
LeConte Medical Center
S	$80,373,675	Cash
Roane County Medical Center
L	$3,531,367	FMV
Roane County Medical Center
P	$1,710,001	Cost
Roane County Medical Center
Q	$26,081,318	Cost
Roane County Medical Center
S	$29,082,061	Cash
Fort Loudoun Medical Center
L	$2,964,739	FMV
Fort Loudoun Medical Center
P	$1,383,819	Cost
Fort Loudoun Medical Center
Q	$17,946,606	Cost
Fort Loudoun Medical Center
S	$19,293,618	Cash
Claiborne Medical Center
L	$1,854,028	FMV
Claiborne Medical Center
O	$375,989	FMV
Claiborne Medical Center
P	$90,269	Cost
Claiborne Medical Center
Q	$2,748,534	Cost
Thompson Cancer Survival Center
L	$1,289,294	FMV
Thompson Cancer Survival Center
Q	$25,144,176	Cost
Thompson Cancer Survival Center
S	$891,322	Cash
Thompson Oncology Group
L	$400,657	FMV
Thompson Oncology Group
Q	$1,908,089	Cost
Thompson Oncology Group
S	$1,185,247	Cash
Covenant Homecare
L	$1,146,077	FMV
Covenant Homecare
P	$77,009	Cost
Covenant Homecare
Q	$553,943	Cost
Covenant Homecare
S	$15,479,491	Cash
Fort Sanders Perinatal Center
Q	$19,352,014	Cost
Fort Sanders Perinatal Center
S	$9,527,507	Cash
Surgery Center of Oak Ridge
Q	$462,619	Cost
Knoxville Heart Group
L	$270,180	FMV
Knoxville Heart Group
Q	$5,687,968	Cost
Knoxville Heart Group
S	$6,498,612	Cash
East TN Cardiovascular Surgical Group
Q	$3,805,299	Cost
Fortress Corporation
K	$486,512	FMV
Fortress Corporation
L	$899,547	FMV
Fortress Corporation
Q	$8,400,403	Cost
Fortress Corporation
S	$1,173,378	Cash
Fort Sanders West OP Surgery Center
Q	$1,054,066	Cost
Covenant Medical Group
K	$232,128	FMV
Covenant Medical Group
L	$7,683,145	FMV
Covenant Medical Group
P	$478,540	Cost
Covenant Medical Group
Q	$65,489,464	Cost
Fort Sanders Foundation
C	$140,402	FMV
Fort Sanders Foundation
O	$315,154	FMV