2016-11-10T09:02:40-06:00 2015-12-31 990 2015-01-01 621646734 Covenant Health COVE 8653746864 1420 Centerpoint Blvd Bldg C Knoxville TN 379321960 JOHN T GEPPI EVP/CFO 8655315421 2016-11-09 2015 2017-02-10 21:41:12Z James D Vandersteeg 100 Ft Sanders W Blvd Knoxville TN 37922 138458104 0 X www.covenanthealth.com X 1996 TN Covenant Health is the parent organization in a community-owned health care system in East Tenn. 23 18 1116 1130 1241019 146421 484988 152479 98673201 102518766 45779507 31337800 312051 198559 145249747 134207604 710535 590105 0 0 66094102 66922956 0 0 0 45067996 45117011 111872633 112630072 33377114 21577532 1182082407 1231025759 811586620 872791957 370495787 358233802 X Covenant Health operates exclusively 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. 0 0 33454854 33454854 Information Technology. See Schedule O for additional details.Information Technology: Expenses - $33,454,854; Revenue - $33,454,854.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 - 297,764 *Pharmacy medication mgmt. system - 2,186,902 orders *Total spam messages blocked - 5,529,940 *Network access attempts blocked - 1,994,400,000 *PCs supported - 9,424 *Overall telephone usage - 35,290,383 calls *Pathway scheduling application - 699,653 appointments *Accounts payable checks - 137,891 13729754 13729754 Business Office. See Schedule O for additional details.Business Office: Expenses - $13,729,754; Revenue - $13,729,754.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 2015, CBO submitted over 1,040,000 insurance claims totaling in excess of $3,777,000,000. Bad debt expense for 2015 was approximately 2.8% of gross revenue with bad debt recoveries/collections in excess of $12,094,000. The CBO handled over 125,700 incoming phone calls, followed-up on over 615,055 open accounts and processed over 3.28 million financial transactions. 8919996 8919996 Health Information Management. See Schedule O for additional details.Health Information Management: Expenses - $8,919,996; Revenue - $8,919,996.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, the cancer center, 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 2015 the HIM department transcribed over 56 million lines, scanned over 10 million pages, and coded over 2 million records. The number of scanned pages decreased significantly from 2014 due to the implementation of Computerized Physician Order Entry (CPOE). 41918724 590105 76835805 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; and * External reporting.Other 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 38 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. 41918724 590105 76835805 98023328 1 1 0 1 0 0 0 0 0 0 1 0 0 0 1 1 0 1 0 0 0 0 0 0 0 0 0 1 1 1 1 0 0 0 0 0 0 0 0 0 1 1 1 0 0 0 1 1 1 0 0 1 374 0 1 1116 1 1 1 0 0 0 0 0 0 0 0 0 0 X 23 18 0 0 0 0 0 0 0 1 1 0 0 1 1 1 1 1 1 1 1 0 X X Nancy Beck 8653746864 1420 Centerpoint Blvd Bldg C Knoxville TN 379321960 Anthony L Spezia President & CEO 50.00 0.00 X X 1660333 0 230699 Ed Anderson Director 1.00 0.00 X 1435 0 0 Gerald Boyd Director 1.00 0.00 X 1316 0 0 Dr Willard Campbell Director 1.00 0.00 X 0 0 0 Dr Mitchell Dickson Director 1.00 0.00 X 1919 0 0 Pamela P Fansler Director 1.00 0.00 X 0 0 0 James Fitzsimmons Director 1.00 0.00 X 1813 0 0 Jim Johnson Jr Director 1.00 0.00 X 1272 0 0 Amber Krupacs Director 1.00 0.00 X 1741 0 0 Eddie Mannis Director 1.00 0.00 X 0 0 0 Timothy Matthews Director 1.00 0.00 X 1637 0 0 Larry Mauldin Chairman 1.00 0.00 X 1422 0 0 Dr Joseph Metcalf Director 1.00 0.00 X 0 0 0 George Miller Director 1.00 0.00 X 1270 0 0 Alvin Nance Director 1.00 0.00 X 1314 0 0 Linda Ogle Director 1.00 0.00 X 0 0 0 Roger Osborne Director 1.00 0.00 X 0 0 0 Carl Storms Director 1.00 0.00 X 1206 0 0 Joseph E Sutter Director 1.00 0.00 X 1490 0 0 Richard Swanson Director 1.00 0.00 X 1444 0 0 Dr Michael Casey Director 1.00 0.00 X 2275 0 0 David C Verble Director 1.00 0.00 X 1428 0 0 Homer Fisher Director 1.00 0.00 X 0 0 0 John T Geppi EVP/CFO 50.00 0.00 X 795717 0 27890 James D Vandersteeg EVP-Hospital Operations 50.00 0.00 X 1059812 0 33014 William M Ward SVP-Chief Information Officer 50.00 0.00 X 355419 0 32528 Mark W Browne SVP-Chief Medical Officer 50.00 0.00 X 397836 0 32736 Janice McKinley SVP-Quality, Safety, & Nursing 50.00 0.00 X 324867 0 19875 Michael R Belbeck Jr President/CAO - Methodist 1.00 50.00 X 394022 0 35515 Larry R Lassiter President/CAO - Parkwest Med Ctr 1.00 50.00 X 421655 0 27965 Keith N Altshuler President/CAO - Fort Sanders Reg 1.00 50.00 X 399825 0 35154 Gordon E Lintz President/CAO - Morristown 1.00 50.00 X 312220 0 19037 Jeremy Biggs President/CAO - Cumberland 1.00 50.00 X 311644 0 31593 6456332 0 526006 56 0 1 0 Morrison Mgmt Specialists Inc PO Box 102289 Atlanta GA 303682289 Cafeteria Management & Catering 18858695 Relay Health PO Box 98347 Chicago IL 60693 Software Maintenance 6766617 Staffing Solutions Southeast Inc PO Box 102332 Atlanta GA 303682289 Temp Staffing Services 3540563 Sodexo Inc and Affiliates PO Box 536922 Atlanta GA 30353 Housekeeping Services 3505987 Southeastern Emergency Physicians Inc PO Box 634850 Cincinnati OH 452634850 Hospitalist/ICU Physician Services 3488441 74 152479 69637 152479 Management Fees 561000 89532639 89532639 Transcription Services 561499 7657709 6587351 1070358 Telephone Services 517000 4381820 4381820 Health Information Admin 561499 818118 818118 Community Outreach 621990 78488 78488 49992 49992 102518766 31465850 31465850 915 915 216671 93340 123331 123331 120669 2662 1600 128514 2051 -128514 -451 -128965 -128965 4101823 4026595 75228 75228 134207604 132940409 1241019 -126303 589319 589319 786 786 4789708 3998331 791377 49058646 41103435 7955211 2424102 2033337 390765 6434407 5397180 1037227 4216093 3536459 679634 1536446 609446 927000 266340 266340 34500 34500 2142928 1770957 371971 1256614 1256409 205 6427389 6311793 115596 12892785 12892785 1541342 1472452 68890 325561 300966 24595 728676 340861 387815 11927516 11927516 1856389 1346600 509789 724457 415158 309299 Unrelated Business Inco 66000 66000 Dues and Licenses 1505799 1457839 47960 Subscriptions 1420975 1195524 225451 Bank Fees 332734 369 332365 130560 31306 99254 112630072 98023328 14606744 0 2200 2250 58096938 51481389 468350 462094 6537683 8287830 56086476 24603941 30846248 31482535 1037906964 1094135579 24394863 9674950 23829161 35499132 1182082407 1231025759 47938154 52852852 12828992 0 720497208 719375379 30322266 100563726 811586620 872791957 X 370495787 358233802 370495787 358233802 1182082407 1231025759 X 21577532 -25704215 -8135302 X X 0 1 X 1 0 X X 13 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 9 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 13 0 0 0 0 0 0 0 1 0 0 0 0 0 0 0 0 0 1 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. RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED 1 1 0 1 0 0 1 8348 0 1 172853 181201 0 Part II-B, Line 1: Covenant Health indirectly conducts lobbying activities through various membership organizations. A portion of membership dues paid is included in the amount on Line 1i. 9403288 9403288 20429309 5061001 15368308 1254127 1139768 114359 21964932 18403172 3561760 3034820 3034820 31482535 Due to Affiliates, Net 74182098 Long-Term Deferred Compensation 5460155 Long-Term Reserve for Malpractice 19466993 Long-Term Reserve for Workers Comp 1454480 100563726 X Part X, Line 2: 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, 2015 and 2014. 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, 2015, tax returns for 2012 through 2015 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, 2015 or 2014." 1 American Heart Association 4708 Papermill Road Knoxville TN 37909 135613797 501(c)(3) 25000 Sponsorship of 2015 Heart Gala Boys & Girls Club of the TN Valley 220 Carrick Street Ste 318 Knoxville TN 37921 620475743 501(c)(3) 21955 Drug screenings and general support Cancer Support Community Inc 2230 Sutherland Avenue Knoxville TN 37919 581846210 501(c)(3) 16000 General support Dogwood Arts Festival Inc 602 S Gay Street Knoxville TN 37902 626074113 501(c)(3) 20000 Support for the fitness activities of the Dogwood Arts Festival East TN Economic Development Agency 10215 Technology Drive Suite 202 Knoxville TN 37932 621158958 501(c)(3) 70000 Support regional economic development Emerald Youth Foundation 1718 N Central Street Knoxville TN 37917 621474791 501(c)(3) 7500 General support Fort Sanders Foundation 280 Ft Sanders West Blvd Ste 202 Knoxville TN 37922 621748601 501(c)(3) 10500 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) 7500 Support for 2015 Friends of Scouting Campaign Honor Air Knoxville 7536 Taggart Lane Knoxville TN 37938 262825063 501(c)(3) 20000 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) 60000 Support for regional economic development Knox County Senior Centers 400 Main Street Ste 615 Knoxville TN 37902 626007979 501(c)(4) 20625 Sponsorship of fitness room and equipment Knoxville Academy of Medicine 115 Suburban Road Knoxville TN 37923 621458199 501(c)(3) 10000 General supportGeneral support fundraising Knoxville Medical Missions Foundation 1932 Historic Ferry Way Knoxville TN 37922 300197352 501(c)(3) 20000 General support Knoxville Symphony Orchestra PO Box 360 Knoxville TN 37901 626008097 501(c)(3) 8745 General support Knoxville Track Club PO Box 53442 Knoxville TN 37950 620731345 501(c)(3) 50000 General support: Covenant Health Marathon Komen Knoxville Race for Cure 318 Nancy Lynn Lane 13 Knoxville TN 37919 751835298 501(c)(3) 12000 Race sponsor for organization supporting breast cancer research and awareness Leadership Knoxville 17 Market Square 201 Knoxville TN 37902 621212211 501(c)(3) 11250 General support Robert F Thomas Foundation PO Box 4395 Sevierville TN 37864 581537582 501(c)(3) 7000 Fundraisers to benefit LeConte Medical Center Thompson Cancer Survival Center Foundation 1915 White Avenue Knoxville TN 37916 582130450 501(c)(3) 9500 2015 Buddy's Race for the Cure United Way of Greater Knoxville 1301 Hannah Ave Knoxville TN 37921 620475748 501(c)(3) 60500 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) 20000 Support of programs for special needs children W C Two 2351 Dandridge Avenue Knoxville TN 37915 621845117 501(c)(3) 10000 General support Foundation of National Student Nurses Association 45 Main Street Ste 606 Brooklyn NY 11201 133123125 501(c)(3) 7500 Support for Promise of Nursing Gala 23 0 Scholarships to employees of related facilities 1 786 Part I, Line 2: 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: event publicity, follow-up reports or newsletters, sponsor recognition at a program or event, itemized receipts, or year-end summaries. X X X X 1 1 X X X X 0 1 0 0 0 0 0 0 0 Anthony L Spezia President & CEO 1003236 0 503500 0 153597 0 214400 0 16299 0 1891032 0 0 0 John T Geppi EVP/CFO 496663 0 215000 0 84054 0 10400 0 17490 0 823607 0 0 0 James D Vandersteeg EVP-Hospital Operations 546665 0 436500 0 76647 0 10400 0 22614 0 1092826 0 0 0 William M Ward SVP-Chief Information Officer 246624 0 65000 0 43795 0 10400 0 22128 0 387947 0 0 0 Mark W Browne SVP-Chief Medical Officer 312929 0 50000 0 34907 0 10400 0 22336 0 430572 0 0 0 Janice McKinley SVP-Quality, Safety, & Nursing 214496 0 75000 0 35371 0 10400 0 9475 0 344742 0 0 0 Michael R Belbeck Jr President/CAO - Methodist 293543 0 75000 0 25479 0 10400 0 25115 0 429537 0 0 0 Larry R Lassiter President/CAO - Parkwest Med Ctr 300116 0 75000 0 46539 0 10400 0 17565 0 449620 0 0 0 Keith N Altshuler President/CAO - Fort Sanders Reg 267757 0 80000 0 52068 0 10400 0 24754 0 434979 0 0 0 Gordon E Lintz President/CAO - Morristown 211251 0 57000 0 43969 0 10400 0 8637 0 331257 0 0 0 Jeremy Biggs President/CAO - Cumberland 198277 0 60000 0 53367 0 9606 0 21987 0 343237 0 0 0 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 L. Spezia was a participant in two nonqualified deferred compensation plans, which will be 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 does allow the accrual of interest on undistributed amounts which will be subject to risk of forfeiture until such time as indicated in the Amendment. Interest earned by Plan A in 2015 amounted to $90,424 and is not required to be reported in Part II, as Mr. Spezia is not substantially vested in earnings accumulated after July 31, 2011. Plan B was established in 2011. Employer contributions to Plan B during 2015 totaled $204,000, which is reported in Column C of Schedule J, Part II. Interest earned by Plan B during 2015 of $57,620 is not required to be reported in compensation in Part II, as Mr. Spezia is not substantially vested in Plan B. A Health Educ & Housing Facil Brd of Knox Co 621220275 499523UUO 2006-12-20 46245448 See Part VI. 0 0 0 B Health Educ & Housing Facil Brd of Knox Co 621220275 499523VR6 2011-03-24 103700000 See Part VI. 0 0 0 C Health Educ & Housing Facil Brd of Knox Co 621220275 noneavail 2011-09-15 135500000 See Part VI. 0 0 0 D Health Educ & Housing Facil Brd of Knox Co 621220275 noneavail 2011-09-15 125000000 See Part VI. 0 0 0 A 1513442 23755001 46245448 506941 21983506 2010 0 1 1 1 B 122000000 103700000 2006 1 0 1 1 C 35500000 135500000 90471604 9528396 2013 1 0 0 1 D 125000000 2010 1 0 1 1 A 0 0 0 0 0.00000 0.00000 0.00000 0 0 1 C 0 0 0 0 0.00000 0.00000 0.00000 0 0 1 D 0 0 0 0 0.00000 0.00000 0.00000 0 0 1 A 1 0 0 0 0 1 B 0 1 0 0 1 0 0 0 1 C 0 1 0 0 1 0 0 0 1 D 0 1 0 0 1 0 0 0 1 A 1 B 1 C 1 D 1 SCHEDULE K, PART, COLUMN F As there are six bond issues to be presented on Schedule K, there is an additional Schedule K included. Bond Issues - description of purpose: Bond Issue A, date of issue 12/20/2006 - These capital appreciation bonds were initially related to a larger bond issue, subsequently refinanced as noted below, the majority of which were used to build a replacement hospital and cancer treatment center in Sevier County and to make numerous renovations and improvements at all the member hospitals. A portion of the capital appreciation bonds were used for the refunding of bonds issued December 12, 2002. Bond Issue B, date of issue 3/24/2011 - These bonds were issued for the partial refunding of bonds issued December 12, 2002. Bond Issue C, date of issue 9/15/2011 - $35,500,000 relates to the conversion of a portion of the bonds issued 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. Bond Issue D, date of issue 9/15/2011 - These bonds relate to the conversion of a portion of bonds issued December 20, 2006. Schedule K - Second Form Bond Issue A, date of issue 12/13/2012 - These bonds were issued to refund capital appreciation bonds and capital interest bonds issued December 12, 2002. Bond Issue B, date of issue 7/30/2014 - Bond Issue 2014 A was a refinancing of Cumberland Medical Center (CMC) debt which was acquired through the acquisition of CMC on February 1, 2014. A Health Educ & Housing Facil Brd of Knox Co 621220275 499527BM0 2012-12-13 161291013 See Part VI. 0 0 0 B Health Educ & Housing Facil Brd of Knox Co 621220275 noneavail 2014-07-30 38665750 See Part VI. 0 0 0 A 159999519 161291013 1291494 2006 1 0 1 1 B 38665750 2012 1 0 1 1 B 0 0 0 0 0.00000 0.00000 0.00000 0 0 1 A 0 1 0 0 1 0 0 0 1 B 0 1 0 0 1 0 0 0 1 A 1 B 1 First Tennessee Bank Independent contractor 143454 Investment management 0 X 35 20545 Retail value,expert X 15234 Various X 1 5500 Fair Market Value X 2 4900 Fair Market Value X 1 60 Retail value X Gift cards 60 23398 Retail or face value 0 0 0 Form 990, Part III, Line 1 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. Covenant Health's mission is to serve its communities by improving health. It has invested well over a billion dollars in the local communities since 2000 - a commitment that no other healthcare organization in the region has approached. In the current challenging environment Covenant Health is nationally recognized as a top performer in many areas: patient care, quality, cost, information technology, finances, ethics and innovation. It reaffirms its long-standing commitment to the communities and its core strategies: * Provide the best care and outstanding customer service to every patient, every time. * Serve its communities as a not-for-profit health system. * Provide excellence in governance and leadership, effective strategic planning and wise use of resources. * Engage a work force with the appropriate skill sets. * Be the practice environment of choice for its physicians. * Optimize the value of being a unified health system. In 2015, Covenant Health ranked in the top 20 percent of a national study of health systems that measures quality and efficiency in areas such as adherence to clinical standards of care, patient safety and satisfaction, length of stay and other criteria. It received awards for clinical excellence from VHA, Inc., a national healthcare performance improvement alliance. Two of its hospitals - Fort Loudoun Medical Center and LeConte Medical Center - were among just six hospitals in the country to receive a VHA 2015 Excellence Award for Clinical Effectiveness for achieving exceptionally high levels of performance compared to national benchmarks. Fort Sanders Center for Bariatric Surgery Obesity has become a significant national health issue. Morbid obesity, defined as having a Body Mass Index (BMI) over 35 and being at risk for obesity-related health issues, is closely correlated with serious medical conditions including heart disease, high blood pressure and diabetes. Bariatric surgery often eliminates these conditions, along with the side effects that can result from the medications used to treat them. It is becoming a more viable option for people who need to lose at least 100 pounds and have found other weight-loss strategies to be unsuccessful. Bariatric surgeons, after helping more than 2000 patients over the past dozen years, created the Fort Sanders Center for Bariatric Surgery which has been designated as a Center of Excellence by the American Society of Metabolic and Bariatric Surgery. The atmosphere at the Center for Bariatric Surgery is one of support and encouragement. The relationship between physicians, staff and the patient is very open. It is important that the patient is completely informed when making a choice about surgery. A support group is available before and after surgery, and patients are strongly encouraged to take part. The Center for Bariatric Surgery offers two cutting edge solutions. Laparoscopic gastric bypass, usually done as a robotic procedure, creates a smaller stomach pouch and reroutes a portion of the small intestine. Sleeve gastrectomy removes a portion of the stomach and creates a narrower digestive tube. The safety of bariatric surgery has improved greatly over the past several years, and in most instances the patient goes home within 24 hours after surgery. Partners in Quality Care Covenant Health collaborates with physicians to carry out its mission of improving the quality of life through better health. Physicians partner with the health system in many ways including employment, as members of hospital medical staffs and Covenant's board of directors, and in committee leadership roles. Covenant Medical Group, Inc. (CMG) employs nearly 200 primary care and specialty physicians in about 100 practice locations. Covenant Health builds and maintains partnerships with physicians through joint ventures such as surgery centers and the development of service line strategies that focus on improving quality and cost of patient care. Nearly 1,500 physicians are affiliated with Covenant Health hospitals and member organizations as active or consulting members of the health system's medical staffs. These physicians may serve in leadership positions at their respective hospitals, and several also represent their organizations and communities through membership in Covenant Health's Board of Directors. Good Health is Good Business In addition to partnerships with physicians, Covenant Health works with businesses and insurance brokers to help control and lower healthcare costs. Working side by side with companies, Covenant Health helps to develop programs and services such as on-site clinics to engage employees in healthy behaviors and manage chronic diseases. With more than 30 years of experience providing biometric screenings and wellness programs in local communities, Covenant Health's professionals deliver on-site solutions for business clients. The program's goals are to improve employee health and positively affect an organization's healthcare investment. Form 990, Part III, Line 1 Covenant Health Named Among Nation's "Most Wired" The American Hospital Association's Health Forum and the College of Healthcare Information Management Executives (CHIME) named Covenant Health among the nation's "Most Wired" healthcare organizations in the 2015 "Most Wired" survey. The survey and benchmarking study is a leading industry barometer measuring information technology use among hospitals nationwide. The survey of more than 2,213 hospitals examined how healthcare organizations leverage IT to improve performance for value-based healthcare in areas such as infrastructure, business and administrative management, quality and safety, and clinical integration. The survey showed that hospitals are taking more aggressive privacy and security measures to protect and safeguard patient data. Most Wired hospitals are using IT to better facilitate information exchange across health care and other settings, and greater alignment between hospitals and physicians. Most Wired organizations are also implementing patient portals to get patients actively involved in their health and health care. Covenant Health is one of only four Tennessee healthcare organizations to be named to the Most Wired list. It is the 12th time that Covenant Health has been ranked among Most Wired. Best Practices for Babies' Healthy Start The Covenant hospitals are part of a statewide Healthy Tennessee Babies Are Worth the Wait initiative to increase awareness of the benefits of full-term delivery. Babies born too early are at risk for respiratory distress, jaundice, hypoglycemia and other conditions that need more medical care and put them at greater risk for death before their first birthdays. Waiting until 39 weeks to deliver allows for better growth and development of vital organs and is also better for the health and safety of the mother. In addition to patient and staff education programs, Covenant Health obstetrics departments adopted a policy prohibiting early elective deliveries before 39 weeks unless there is a clear medical risk to the mother or the baby. In 2011 about 12 percent of the hospitals' deliveries that occurred prior to 39 weeks gestation were considered elective. By second quarter of 2015, the number had dropped to zero. Covenant hospitals are also involved with the Tennessee Initiative for Perinatal Quality Care's breastfeeding project, which focuses on promoting and supporting breastfeeding in the delivery setting and after mothers return home. Caring for Women throughout Their Lives Covenant Health provides a full spectrum of health services for women of all ages. The health system's ten breast centers offer patients access to the latest technological advances in the prevention, early detection, diagnosis and treatment of breast cancer. A full range of diagnostic screenings, gynecological care, cancer care, and specialized treatment are offered to women in all ages and stages of life. The health system provides comprehensive heart and stroke care for women, and has developed educational and outreach programs to teach women about cardiovascular disease, risk factors, prevention, treatment and rehabilitation. Advanced Technology Keeps More Hearts Beating Covenant Health is committed to excellence in all areas of heart care - from heart disease prevention and diagnosis of heart conditions to advanced technology and treatments, emergency interventions, and cardiac rehabilitation programs for follow-up care. More than 50 affiliated cardiologists provide diagnostic testing and perform a variety of interventional procedures such as heart catheterization and techniques to clear blocked arteries and place stents to restore blood flow. Cardiologists also treat heart arrhythmias and often repair heart valves and holes in the chambers of the heart. Covenant Health is at the forefront of cardiac innovations that restore health and the ability to live life to the fullest. Covenant was the first health system in the region to offer Transcatheter Aortic Valve Replacement (TAVR), in which a minimally invasive procedure places a new valve into the heart. The procedure gives new hope to patients suffering from life-threatening aortic stenosis who are not candidates for open-heart surgery. In addition to TAVR, a full spectrum of advanced cardiac procedures are available at Covenant Health's "heart hospitals" - Fort Sanders Regional Medical Center, Methodist Medical Center of Oak Ridge and Parkwest Medical Center. For patients experiencing severe coronary disease like blocked arteries and aortic enlargement, care close to home may seem like a distant hope. Covenant's cardiac services offer complex surgeries and treatment that are often only available in larger cities. When Minutes Matter If a heart attack occurs, time is critical. The heart hospitals of Covenant Health have adopted the American College of Cardiology and American Heart Association recommended care standards for heart attack patients, specifically those identified as the "ST-Segment Elevation MI" (STEMI) population. These patients have the highest mortality (risk of death) and morbidity (risk of associated complications). They can be rapidly identified by having an electrocardiogram (EKG). The standards emphasize organizing regional systems of care and patient transfer procedures to provide faster access to advanced therapies that help facilitate rapid restoration of blood flow during a heart attack. The care team - from first responders and emergency departments to cardiologists and cath lab staff - collaborate to provide efficient and effective care. They evaluate the entire process and collaborate with anyone who has contact with this patient population to develop a standardized approach to efficiently get them to a cath lab. Every 30 minutes results in nearly an eight percent increase in risk of death, so patient outcomes are improved by having a systems approach to identification, notification, and rapid transfer. Several new processes have been developed, including: * Training EMS providers to identify STEMI patients quickly, and building relationships with emergency transporters to ensure efficient arrival at a center equipped to deal with STEMI patients. * Clinical members of Covenant Rapid Access, Covenant Health's patient transfer center, are available 24/7 to accept STEMI patients from outlying hospitals and immediately notify the cath lab team and interventional cardiologist. Rapid Access is the coordinating center for Covenant facilities. * Emergency transporters simultaneously notify both ED and cath lab teams of potential STEMI patients and transmit an EKG when available. This allows earlier activation of the cath lab team, with personnel available immediately when the patient arrives. * A regular review process provides feedback on outcomes and helps continually improve systems and processes. As a result of these efforts, Fort Sanders Regional Medical Center has exceeded state and national hospitals' performance in meeting standards for "First Medical Contact-to-Device" times. Mortality and readmission rates also declined. The STEMI team collaborates with hospitals and emergency responders in Claiborne, Sevier, and Jefferson counties, and as far away as Kentucky. Form 990, Part III, Line 1 Cardiac Rehabilitation Helps Pave the Road to Recovery The weeks immediately following a heart attack, angioplasty, or open heart surgery are critical for long-range rehabilitation. Several Covenant hospitals offer medically supervised Cardio-Pulmonary Rehabilitation programs that safely restore physical fitness and function for people who have recently had serious cardiac events. Through monitored exercise, education, counseling and healthy lifestyle changes, patients regain confidence in exercising their hearts, and they learn to make lifestyle changes to reduce the risk of further complications from heart disease. Cardiac rehabilitation offers effective treatment for heart attack, angina, post-infarction, angioplasty, post-coronary bypass, and patients considered to be high risk for coronary artery disease. The Region's Only Stroke Hospital Network When a stroke happens, timely treatment is critical. The Covenant Health network is well above the national average in delivering advanced diagnostics and treatment to halt the devastating effects of stroke. At the hub of the network are Fort Sanders Regional Medical Center, certified as a comprehensive stroke center by The Joint Commission, and the award-winning Patricia Neal Rehabilitation Center, accredited by the Commission on the Accreditation of Rehabilitation Facilities. Reaching Across Time and Distance Thanks to Fort Sanders Regional Medical Center's "tele-stroke" robot, East Tennessee stroke patients benefit from early consultation with the hospital's stroke experts, even if they are at a different hospital location. The InTouch R7 robot is a mobile communications platform that enables stroke patients to receive consults from Fort Sanders neurologists via its video screen "face." The robot allows neurologists to be available to patients in outlying areas 24 hours a day. Covenant Health has stationed robots in the emergency departments at Parkwest Medical Center in Knoxville, LeConte Medical Center in Sevierville and Morristown-Hamblen Hospital in Morristown. The telestroke network allows physicians in surrounding hospitals to use live Web video streaming to consult with neurologists as soon as a patient arrives at the community hospital. The neurologist can remotely review patient information and examine and talk with the patient, family members and local clinicians to help determine the best course of treatment, all at the patient's bedside. The interaction between neurologist and the patient via the robot helps the physician see facial expressions and get the patient to respond to the physician. Accurate, timely diagnosis is essential when stroke occurs. The clock starts with the onset of symptoms. As time ticks by, treatment options become more limited and patients can lose more and more functionality. With this tele-medicine tool, neurologists and specialists can advise surrounding emergency departments how to best treat their stroke patients or to have them transported to Fort Sanders Regional for advanced care. Rehabilitation After Stroke While prompt medical care can stop or minimize the effects of stroke, rehabilitation after a "brain attack" can help a patient recover abilities and reconnect with loved ones. At the Patricia Neal Rehabilitation Center, stroke patients are treated with a holistic team approach including the patient and family members. Physical Medicine and Rehabilitation physicians, physical therapists, occupational therapists, speech-language pathologists, rehab psychologists (behavioral medicine), nursing staff, case managers and recreation therapists make up the treatment team. Treatment is an active process with both patient and family involved in goal setting, therapy and education. Therapies include psychological and leisure/recreation evaluations, and training in range of motion, strengthening and conditioning exercises, self-care and daily living skills, and speech, language and swallowing. Other aspects include identification and management of risk factors to help prevent future strokes. The Patricia Neal Rehabilitation Center has received multiple awards including five top-honor Crystal Awards from Professional Research Consultants for overall patient satisfaction along with accolades for innovation, quality of care and successful outcomes. Leading the Fight Against Cancer Even though cancer affects many thousands of people, a cancer diagnosis can be a lonely experience. Covenant Health is committed to helping cancer patients fight the disease with excellent medical care and a multidisciplinary team of support. At the core of Covenant Health's cancer care is an elite team of physicians, armed with the most advanced cancer fighting tools available. Technology includes advanced imaging such as positron emission technology (PET) in Knoxville and mobile PET services in Sevierville, high-dose-rate brachytherapy and 3D radiation therapy. Fort Sanders Regional Medical Center offers Gamma Knife, a non-invasive radiosurgical device that targets tumors in a single visit. A variety of clinical trials, stem cell transplantation and genetic counseling are also available. Patients receiving cancer care at Covenant Health facilities receive individualized treatment plans, and have a multidisciplinary team of specialists and "navigators" to help with the treatment process. Support is also provided by social workers, nutrition counselors and other members of the cancer care team. The health system invested $7.6 million for equipment upgrades, expanded connectivity and growth of a highly regarded radiation therapy research program at six locations: Thompson Cancer Survival Centers in downtown and west Knoxville, Oak Ridge and Sevierville, at Morristown Regional Cancer Center, and at Cumberland Medical Center's radiation oncology program in Crossville. Thompson Oncology Group has 8 physician offices in 7 different counties. The group has been recognized by the Quality Oncology Practice Initiative Certification Program, an affiliate of the American Society of Clinical Oncology. The certification process includes each of the 8 Thompson Oncology Group locations and entails evaluation of treatment planning, staff training, patient education and safe chemotherapy administration. Form 990, Part III, Line 1 Connecting with Our Communities In addition to taking care of patients and families who receive direct services, Covenant Health is committed to making a positive impact in the health of the surrounding community. In all the communities Covenant Health serves, local initiatives and partnerships create opportunities to interact with people of all ages and encourage healthier lifestyles. * In March 2015 Covenant Health sponsored the Knoxville Marathon for the 11th year in a row. The race attracted over 7,750 people who competed in full and half marathons, a 5K, relays, hand cycling and push-rim wheelchair races. * Some of the funds raised through the Covenant Health Knoxville Marathon were contributed to Patricia Neal Rehabilitation Center's Innovative Recreation Cooperative (IRC). More than $5,000 was given to the IRC by a collaboration of groups and individuals who help disabled persons enjoy leisure/recreation activities such as skiing and cycling. * The Covenant Health Biggest Winner Weight Loss Challenge continued as a friendly competition that encourages East Tennesseans to get moving for a fit and healthy lifestyle. Team members trained together for five months, with the goal of crossing the finish line in Covenant Health Knoxville Marathon events, and challenging other East Tennesseans to change their lives for the better. * The Covenant Kids Run attracted nearly 1,000 children who participated in a "marathon of activities" over a period of several weeks, culminating in a run to Neyland Stadium the day before the Covenant Health Knoxville Marathon. * Covenant HomeCare Hospice helps children grieving the loss of a loved one through Katerpillar Kids Camp, a free event offered with the support of Variety - The Children's Charity. The camp helps children in grades 1-12 express their feelings of loss in a supportive environment. * Methodist Medical Center co-sponsored the third annual Baby's Best Fest, a day of family games and an ice cream social celebrating World Breastfeeding Month and supporting breastfeeding as the healthiest start for babies. * LeConte Medical Center partnered with Dollywood's Splash Country for the second year to host Water Safety Day. The day was held in conjunction with the "World's Largest Swimming Lesson," a national event promoting the importance of learning to swim. LeConte employees educated children about water safety; representatives from Thompson Cancer Survival Center talked about the need for sunscreen; and staff from the Patricia Neal Rehabilitation Center presented the Think First head and spinal cord injury prevention program and adaptive water sports. More than 600 children participated. * Cumberland Medical Center in Crossville co-sponsored numerous health fairs and community events throughout the year, and hosted free Mammogram Days for women who met specific screening criteria and did not have insurance coverage. * Parkwest Medical Center, LeConte Medical Center and Thompson Cancer Survival Center co-sponsored hiking programs led by Missy Kane, an Olympic Medalist from Tennessee and fitness expert. Missy led hikes in communities where Covenant Health hospitals are located and established walking clubs in Roane and Anderson counties in conjunction with Roane Medical Center and Methodist Medical Center. Form 990, Part VI, Section B, line 11 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 an 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 President and Chief Executive Officer ("CEO"), Anthony L. Spezia, is 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) or Executive 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 James D. Vandersteeg, EVP-Hospital Operations William M. Ward, SVP-Chief Information Officer Mark W. Browne, SVP-Chief Medical Officer Janice McKinley, SVP-Quality, Safety & Nursing Operations Related organization employees compensated by Covenant Health: Keith Altshuler, President & CAO of Fort Sanders Regional Medical Center Michael R. Belbeck, Jr., President & CAO of Methodist Medical Center Larry R. Lassiter, President & CAO of Parkwest Medical Center Gordon Lintz, President & CAO of Morristown-Hamblen Healthcare System Jennifer Hanson, President & CAO of LeConte Medical Center Gaye Jolly, President & CAO of Roane Medical Center Jeffrey Feike, President & CAO of Fort Loudoun Medical Center Jeremy Biggs, President & CAO of Cumberland Medical Center Patricia Ketterman, President & CAO of Claiborne Medical Center 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 -1,344,896. Return of capital from subsidiaries 5,000,000. Capital contributed to subsidiaries -11,555,809. Change in 457(b) unrealized gain/loss -234,597. 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. Fort Sanders Regional Medical Center 1901 W Clinch Ave Knoxville TN 37916 620528340 Acute care hospital TN 501(c)(3) Line 3 Covenant Health 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 1 Methodist Medical Center 990 Oak Ridge Turnpike Oak Ridge TN 37830 620636239 Acute care hospital TN 501(c)(3) Line 3 Covenant Health 1 LeConte Medical Center 742 Middle Creek Road Sevierville TN 37862 621114867 Acute care hospital TN 501(c)(3) Line 3 Covenant Health 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 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 1 Thompson Cancer Survival Center 1915 White Ave Knoxville TN 37916 621250943 Cancer support center TN 501(c)(3) Line 3 Covenant Health 1 Thompson Oncology Group 1915 White Ave Knoxville TN 37916 621619239 Oncology services TN 501(c)(3) Line 3 Thompson Cancer Survival Center 1 Fort Sanders Foundation 280 Fort Sanders West Blvd Ste 202 Knoxville TN 37922 621748601 Fundraising and patient outreach TN 501(c)(3) Line 11b, II Covenant Health 1 Covenant Homecare 3001 Lake Brook Blvd Ste 101 Knoxville TN 37909 621623114 Home health services TN 501(c)(3) Line 9 Covenant Health 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 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 1 Thompson Cancer Survival Center Foundation 1915 White Ave Knoxville TN 37916 582130450 Fundraising and patient outreach TN 501(c)(3) Line 11b, II Covenant Health 1 Cumberland Medical Center 421 S Main St Crossville TN 385555048 620790132 Acute Care Hospital TN 501(c)(3) Line 3 Covenant Health 1 Claiborne Medical Center 1850 Old Knoxville Rd Tazewell TN 378793625 464420358 Acute care hospital TN 501(c)(3) Line 3 Covenant Health 1 Endoscopy Center of Oak Ridge LLC 988 Oak Ridge Turnpike Ste 200 Oak Ridge TN 37830 621667358 Outpatient medical facility TN N/A 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 Fortress Corporation 280 Fort Sanders West Blvd Ste 214 Knoxville TN 37922 621308885 Management company TN Covenant Health C -4931486 80793464 1.00000 1 Covenant Medical Group Inc 1400 Centerpoint Blvd Ste 100 Bldg Knoxville TN 37932 621282917 Physician practice management TN N/A C 1 Knoxville Heart Group 1819 Clinch Ave Ste 108 Knoxville TN 37916 271528941 Cardiology medical practice TN N/A C 1 East TN Cardiovascular Surgery Group Inc 9125 Cross Park Drive Ste 200 Knoxville TN 37923 621018541 Cardiovascular surgical practice TN N/A C 1 1 1 1 0 0 1 0 0 0 0 1 1 1 1 1 1 1 1 1 Fort Sanders Regional Medical Center L 24393664 FMV Fort Sanders Regional Medical Center O 55137 FMV Fort Sanders Regional Medical Center P 16191103 Cost Fort Sanders Regional Medical Center Q 165035027 Cost Fort Sanders Regional Medical Center S 189190906 Cash Parkwest Medical Center L 24212984 FMV Parkwest Medical Center O 63604 FMV Parkwest Medical Center P 11978859 Cost Parkwest Medical Center Q 140887990 Cost Parkwest Medical Center S 5437878 Cash Cumberland Medical Center L 2269243 FMV Cumberland Medical Center O 547805 FMV Cumberland Medical Center Q 6472420 Cost Methodist Medical Center L 13557880 FMV Methodist Medical Center P 9507725 Cost Methodist Medical Center Q 69921774 Cost Methodist Medical Center S 77683126 Cash Morristown-Hamblen Hospital Association L 8086086 FMV Morristown-Hamblen Hospital Association P 4171252 Cost Morristown-Hamblen Hospital Association Q 42788745 Cost Morristown-Hamblen Hospital Association S 46138906 Cash LeConte Medical Center L 6588738 FMV LeConte Medical Center P 3333103 Cost LeConte Medical Center Q 37992129 Cost LeConte Medical Center S 51702776 Cash Roane County Medical Center L 3392254 FMV Roane County Medical Center P 2608478 Cost Roane County Medical Center Q 27416325 Cost Roane County Medical Center S 28094355 Cash Fort Loudoun Medical Center L 2773837 FMV Fort Loudoun Medical Center P 1891174 Cost Fort Loudoun Medical Center Q 14981749 Cost Fort Loudoun Medical Center S 17711400 Cash Claiborne Medical Center L 723401 FMV Claiborne Medical Center O 129869 FMV Claiborne Medical Center P 3377915 Cost Claiborne Medical Center Q 3847777 Cost Claiborne Medical Center S 4429445 Cash Thompson Cancer Survival Center L 1421868 FMV Thompson Cancer Survival Center Q 2855814 Cost Thompson Cancer Survival Center S 513187 Cash Thompson Oncology Group L 507466 FMV Thompson Oncology Group P 11252820 Cost Thompson Oncology Group Q 10150982 Cost Thompson Oncology Group S 6339862 Cash Covenant Homecare L 1144840 FMV Covenant Homecare Q 13460012 Cost Covenant Homecare S 16040231 Cash Fort Sanders Perinatal Center S 8468278 Cash Knoxville Heart Group L 262013 FMV Knoxville Heart Group P 3294969 Cost Knoxville Heart Group Q 5671324 Cost East TN Cardiovascular Surgical Group Q 3740172 Cost Fortress Corporation K 444904 FMV Fortress Corporation L 1166835 FMV Fortress Corporation Q 5226640 Cost Fort Sanders Foundation C 91993 FMV Fort Sanders Foundation O 302280 FMV Fort Sanders Perinatal Center Q 8613567 Cost Covenant Medical Group A 216173 FMV Covenant Medical Group L 6602654 FMV Covenant Medical Group P 141221 Cost Covenant Medical Group Q 64030901 Cost Fort Sanders West OP Surgery Center Q 1123920 Cost Surgery Center of Oak Ridge Q 516395 Cost