2015-11-05T10:42:47-06:00 2014-12-31 990 2014-01-01 621114867 LeConte Medical Center LECO 8653746864 1420 Centerpoint Blvd Bldg C Knoxville TN 379321960 JOHN T GEPPI EVP/CFO 8653746872 2015-10-30 2014 2016-04-25 22:37:26Z Anthony L Spezia 100 Ft Sanders W Blvd Knoxville TN 37922 108151861 0 X www.lecontemedicalcenter.com X 1981 TN LeConte Medical Center is a 79-bed full service acute care hospital located in Sevier County, Tennessee. It is a member of the Covenant Health system. 22 17 686 197 0 0 850493 1589903 91612693 104529068 6595 12606 2870342 1896223 95340123 108027800 183154 182302 0 0 25894104 25728740 0 0 0 66257616 75492030 92334874 101403072 3005249 6624728 89066416 88717054 49909315 42935225 39157101 45781829 X See Schedule OLeConte Medical Center provides quality healthcare, in alignment with Covenant Health's mission to serve the community by improving the quality of life through better health, regardless of the patient's ability to pay. 0 0 8335437 8130324 Orthopedics: See Schedule O for additional information.Orthopedics: Expenses - $8,335,437; Revenue - $8,130,324LeConte Medical Center served 4,152 orthopedic patients in 2014 with 843 orthopedic surgery cases.The goal of LeConte Medical Center's Orthopedic program is to meet the orthopedic needs of the residents and visitors of the service area by providing the entire continuum of care from diagnosis and treatment to therapy and rehabilitation. LeConte has a 31 bed emergency department with providers trained to quickly triage and assess the needs of orthopedic patients. The facility provides imaging services including computerized tomography and magnetic resonance imaging. In 2014, over 3,000 orthopedic patients were treated and discharged from the emergency department. LeConte has four efficiently designed surgical suites that allow orthopedic surgeons to provide excellent repair and revision services in a sterile, pristine setting. Surgical procedures performed include major joint replacements, arthroscopic knee and shoulder repairs, hand and wrist procedures, spinal fusions and laminectomies. Quality is of the utmost priority at LeConte and 100% of surgical patients received the appropriate antibiotic prior to surgery. Should the patient have post operative therapeutic needs, LeConte provides both inpatient and outpatient physical therapy as well as occupational therapy. As a service to the community, LeConte operates a Sports Medicine Program where athletic trainers work in the area's five high schools. The trainers work in tandem with student athletes, coaches and physicians on sports related injury prevention and management. 5902387 4884547 Obstetrics, Gynecology, and Neonatal Services: See Schedule O for additional information.Obstetrics, Gynecology, and Neonatal Services: Expenses - $5,902,387; Revenue - $4,884,547In 2014, LeConte Medical Center cared for over 6,000 patients and had 1078 births. The Dolly Parton Family Birthing Unit at LeConte Medical Center strives to give excellent care to mothers and newborns. The labor, delivery, recovery & post partum (LDRP) model of care provides an intimate birthing experience for mothers because they are included in their own patient care plan, and labor, deliver and recover in the comfort of their own room surrounded by family.The hospital encourages continuing staff education and has nurses who are certified in inpatient obstetrics and childbirth. All registered nurses in this department are NRP (Neonatal Resuscitation Program) certified. In addition, the staff is S.T.A.B.L.E. (sugar, temperature, airway, blood pressure, lab work and emotional support) certified. The facility provides a neonatal nurse practitioner for newborns requiring more care. The facility continues to educate its patients on the benefits to mother and baby of exclusive breast feeding and has increased its exclusive breast feeding rate to over 36%. In addition, the facility provides education about safe sleep for infants. LeConte Medical Center provides classes to the community including prenatal, sibling and safe sitter education. The hospital contributes to literacy efforts by offering to register newborns for Dolly Parton's Imagination Library book program. The hospital initiated the MOMs (Moms on Meds) program in Sevier County in an effort to bring awareness to the problem of parental drug addiction and its impact on newborn health. 5522251 8461580 Oncology: See Schedule O for additional information.Oncology: Expenses - $5,522,251; Revenue - $8,461,580In 2014, LeConte Medical Center cared for over 3,200 oncology patients. Thompson Cancer Survival Center at LeConte offers a high level of cancer care, including state-of-art treatments and wellness services designed to care for the whole patient. The goal is to give each patient the best possibility for success in the fight against cancer. The medical oncologists utilize the latest technology and chemotherapy drugs available. In 2014, LeConte provided 8,225 radiation treatments and 7,554 chemotherapy/infusion treatments to residents of Sevier and surrounding counties. The medical oncology and infusion staff at Thompson Cancer Survival Center consists of medical oncologists, a nurse practitioner, oncology nurses with many years of experience, a pharmacist, and excellent support staff. Thompson Cancer Survival Center at LeConte works closely with the Cancer Support Community to provide psychological, educational and social support services to cancer patients, their families and their friends. Support groups, programs provided by licensed psychotherapists, stress management sessions, educational workshops and social events are just a few of the services offered by the Cancer Support Community. These services help patients focus on improving their quality of life while undergoing cancer treatment. 80113815 182302 84291969 As a full-service acute care hospital, LeConte Medical Center features pulmonary services, cardiology services, imaging services, surgical services, gastroenterology services, a breast center, 24-hour emergency care, on and off-site physical therapy clinics, a 54-bed nursing home, infusion therapy, and a hospital-based sleep disorders center. 80113815 182302 84291969 99873890 1 1 0 0 0 0 0 0 0 0 1 0 0 0 1 1 0 1 0 0 0 0 0 0 0 0 1 1 1 1 1 0 0 0 0 0 0 0 0 0 0 0 0 0 1 0 0 0 1 179 0 1 686 1 1 1 0 0 0 0 0 0 0 0 0 X 22 17 0 0 0 0 0 0 0 1 1 1 0 1 1 1 1 1 1 1 1 0 X X Nancy Beck 8653746864 1420 Centerpoint Blvd Bldg C Knoxville TN 379321960 Ed Anderson Director 0.00 41.00 X 0 154867 1512 Gerald Boyd Director 0.00 1.00 X 0 1034 0 Dr Richard Brinner Director 0.00 1.00 X 0 1134 0 Dr Mitchell Dickson Director 0.00 1.00 X 0 829 0 Pamela P Fansler Director 0.00 1.00 X 0 0 0 James Fitzsimmons Director 0.00 1.00 X 0 1024 0 Jim Johnson Jr Director 0.00 1.00 X 0 1036 0 Karla Lane Director 0.00 1.00 X 0 863 0 Eddie Mannis Director 0.00 1.00 X 0 0 0 Tim Matthews Director 0.00 1.00 X 0 969 0 Larry Mauldin Chairman 0.00 1.00 X 0 941 0 Dr Joseph Metcalf Director 0.00 3.00 X 0 16799 0 George Miller Director 0.00 1.00 X 0 641 0 Alvin Nance Director 0.00 1.00 X 0 939 0 Linda Ogle Director 0.00 1.00 X 0 0 0 Mitchell Steenrod Director 0.00 1.00 X 0 641 0 Carl Storms Director 0.00 1.00 X 0 1173 0 Joseph E Sutter Director 0.00 1.00 X 0 1127 0 Richard Swanson Director 0.00 1.00 X 0 0 0 Joe Ben Turner Director 0.00 1.00 X 0 0 0 David C Verble Director 0.00 1.00 X 0 1063 0 Anthony L Spezia President & CEO 0.00 50.00 X X 0 1603983 229665 John T Geppi EVP/CFO 0.00 50.00 X 0 752660 26356 Jennifer Hanson President & CAO 50.00 0.00 X 0 258460 16980 Rick A Carringer VP-Financial Services 29.00 21.00 X 161629 0 13031 Jacqueline Hounshell VP-Financial Services 30.00 0.00 X 25874 0 2994 Claudia Ogburn Pharmacy Manager 50.00 0.00 X 134171 0 22050 Patricia Ketterman VP-Chief Nursing Officer 50.00 0.00 X 105828 0 19659 Phillip Carney Director of Radiology 50.00 0.00 X 101681 0 6723 Ellen Wilhoit Former President & CAO 0.00 50.00 X 0 145132 12180 Lori Myers Former VP-Chief Nursing Officer 0.00 50.00 X 0 108425 8069 529183 3053740 359219 4 1 1 0 GE Healthcare PO Box 402076 Atlanta GA 303842076 Equipment Maintenance/Service 601061 Functional Pathways LLC 614 Mabry Hood Road Suite 301 Knoxville TN 37932 Physical & Occupational Therapy 431753 Angelica Textile Services Inc PO Box 535122 Atlanta TN 30353 Linen Service 410776 Medic Regional Blood Center 1601 Ailor Avenue Knoxville TN 37921 Blood Processing 372775 Southern Surgical Support 1209 Wembly Ct Knoxville NC 37922 Surgical Services 323199 12 20700 1569203 1589903 Medical Services 622110 104076567 104076567 Community Health 900099 210790 210790 Laboratory 621500 163791 163791 Rental Income - Exempt Affiliat 531120 77920 77920 104529068 10408 10408 198 198 216159 124061 92098 92098 92098 2000 0 2000 2000 2000 Meaningful Use 900099 998081 998081 Cafeteria 722212 230922 230922 Miscellaneous 900099 129456 129456 445666 111617 334049 1804125 108027800 105768420 0 669477 169231 169231 13071 13071 203528 203528 20902928 20521172 381756 589026 581365 7661 2513740 2463298 50442 1519518 1484728 34790 6058764 5961366 97398 28189 2476 25713 5681292 5481778 199514 195482 186182 9300 880906 652615 228291 1926587 1705537 221050 27605 26277 1328 128383 107881 20502 66277 66277 5685507 5685507 204845 199094 5751 Charity Care 18481011 18481011 Supplies & Equipment 16257836 16257836 Bad Debts 15425665 15425665 Sponsorship 2753985 2753985 1689696 1647538 42158 101403072 99873890 1529182 0 2825 2775 -290997 -383706 5192865 7130598 1077017 1222394 117212 231982 119831645 40100616 82006781 79731029 115799 113159 844914 668823 89066416 88717054 5731034 6276280 1333137 477055 42845144 36181890 49909315 42935225 X 39157101 45781829 39157101 45781829 89066416 88717054 6624728 0 X X 0 1 X 1 0 X RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED 790000 790000 76499559 9551243 66948316 85503 76874 8629 41569527 30472499 11097028 887056 887056 79731029 Capital Lease Obligations 1594 Due to Affiliates, Net 35411752 Due to Third Party Payors 293263 Long-term Deferred Compensation 78672 Long-term Reserve for Workers Comp 396609 36181890 X Part X, Line 2: Note B to the consolidated audited financial statements of Covenant Health, parent company of LeConte Medical Center, 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, 2014 and 2013. 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, 2014, tax returns for 2011 through 2014 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, 2014 or 2013." 1 1 X 1 X 1 X 1 1 1 0 1 1 0 0 9166978 2203233 6963745 0.08100 0 0 15741552 12808656 2932896 0.03410 0 0 3447 2009 1438 0.00000 24911977 15013898 9898079 0.11510 0 0 84447 900 83547 0.00100 0 0 0 0 0 0 2414657 2414657 0.02810 0 0 0 0 0 0 190231 0 190231 0.00220 2689335 900 2688435 0.03130 27601312 15014798 12586514 0.14640 0 0 0 0 0 7430 7430 0.00010 0 0 8844 8844 0.00010 0 0 0 0 0 790 790 0.00000 0 0 0 0 0 0 0 0 0 0 0 0 17064 17064 0.00020 0 15425665 2560660 15366433 14561764 804669 X 1 1 1 None 1 1 LeConte Medical Center 742 Middle Creek Road Sevierville TN 37862 www.lecontemedicalcenter.com 00000103 X X X LeConte Medical Center 1 0 0 1 X X X X X X X X 13 1 0 1 1 X www.lecontemedicalcenter.com X 1 14 1 www.lecontemedicalcenter.com 0 0 1 X 200.000000000000 300.000000000000 X X 1 1 X X X 1 X X X X 1 X 0 X X X X 1 X 0 0 LeConte Medical Center Part V, Section B, Line 5: To serve the interests of the broader community and those most vulnerable, the assessment process was guided by a key group of community stakeholders. These partners included the Director of the Sevier County Health Department and its health educator, the Director of the Mountain Hope Good Shepherd Clinic, medical students from the Quillen College of Medicine at East Tennessee State University, the health coordinator of Sevier County Schools, the Sevier County Emergency Medical Services Director, the CAO of LeConte Medical Center and its Community Health Coordinator, and a Hispanic health outreach advocate. The assessment partners determined who should be included in the community interviews and assisted in distributing the health survey throughout Sevier County with particular emphasis on reaching advocates for the low-income, minority residents, seniors and the chronically ill. Almost 440 surveys were completed, and survey sampling was matched with the county's population for the attributes of age, education, income and ethnicity. LeConte Medical Center Part V, Section B, Line 11: Of the five significant findings from the assessment, LeConte Medical Center is focusing its resources on the following: *Prescription drug abuse - increase awareness/prevention by coordinating a coalition to address prenatal abuse issues; pursue drug free communities grant for Sevier County *Chronic conditions related to obesity - help increase regular physical activity for the population by aiding in worksite health promotion efforts like Covenant's HealthQuest; organize the "Get on Trails" hiking series twice a year *Childhood obesity - encourage participation in the Covenant Health Kids Run through collaboration with the Boys and Girls Club; organize "Power Hour" to provide dietary tips and healthy snacks to the Boys and Girls ClubLeConte has chosen not to develop a specific strategy for the following needs: *Teen pregnancy - however, LeConte Medical Center will support the prevention efforts of Sevier County Health Department *Dental care - this is not a service that the hospital provides; however, the hospital will support providers of these services, resources permitting LeConte Medical Center Part V, Section B, Line 16i: Please see the explanation to Part VI, Line 3. LeConte Medical Center Part V, Section B, Line 22d: Please see the explanation to Part III, Line 9b. 9 LeConte Medical Center Infusion Svcs 710 Middle Creek Road Sevierville TN 37862 Infusion Services LeConte Medical Center Radiation Oncolog 710 Middle Creek Road Sevierville TN 37862 Radiation Oncology Fort Sanders Sevier Nursing Home 731 Middle Creek Road Sevierville TN 37862 Nursing Home The Breast Center 740 Middle Creek Road Suite 106 Sevierville TN 37862 Breast Imaging Center LeConte Therapy Services - Sevierville 740 Middle Creek Road Suite 110 Sevierville TN 37862 Rehabilitation & Therapy Services LeConte Therapy Services - Seymour 127 W Macon Lane Seymour TN 37865 Rehabilitation & Therapy Services Sevier County Wellness Clinic 717 Middle Creek Road Sevierville TN 37862 Wellness Clinic The Sleep Disorders Center 740 Middle Creek Road Suite 212 Sevierville TN 37862 Sleep Disorders Center LeConte Wellness Center 170 Community Center Drive Pigeon Forge TN 37863 Fitness Center Part I, Line 6a: Covenant Health, the parent company of LeConte Medical Center and other affiliated acute care hospitals, prepares an annual Report to the Community on behalf of the entire system. Part I, Line 7: Amounts on Lines 7a-7c and 7g are from the hospital's cost accounting system, which addresses all patient segments. Other community benefit expenses are at cost from the general ledger. Part I, Line 7g: The organization has included $2,414,657 in physician sponsorship fees in total subsidized health services. Part I, Line 7, Column (f): The Bad Debt expense included on Form 990, Part IX, Line 25, Column (A), but subtracted for purposes of calculating the percentage in this column is $ 15,425,665. Part II, Community Building Activities: LeConte Medical Center cares for the whole person and recognizes that improved social and economic conditions may lead to the improved health and well-being of the community. The hospital's community building activities and those of its parent organization, Covenant Health, address many of the root causes of health problems, such as poverty and homelessness, and help find solutions to alleviate the symptoms.An allocation of the Parent's community building expenditures has been made to each member hospital in proportion to the financial contribution of each to the health system. Covenant Health is not a hospital and does not file Schedule H with its Form 990. In 2014 contributions were made to organizations meeting the community's needs by providing: *Affordable, permanent housing and case management services to foster self-sufficiency - Habitat for Humanity *Literacy programs - Dollywood Foundation *The basic needs of life including temporary shelter, food and clothing - Catholic Charities, Ladies of Charity, United Way and others *Youth mentoring and development and after-school programs - Emerald Youth Foundation, Boys and Girls Club, and Great Smoky Mountain Council, Boy Scouts of America *Business recruitment and marketing initiatives that boost economic development - Innovation Valley and East Tennessee Economic Development Agency *Leadership development programs and workshops - Leadership Knoxville *Assistance and special programs for at risk, physically challenged, abused and neglected children - Variety of Eastern Tennessee (local chapter of Variety-The Children's Charity) and East TN Technology Access Center, Inc *Improve access to healthcare services - Interfaith Health Clinic and Knoxville Academy of Medicine Part III, Line 2: Bad debt expense on Line 2 is the amount recorded in the organization's financial statements. Discounts and payments on patient accounts are netted against bad debt. Part III, Line 3: In 2011, the hospital reviewed all self-pay accounts receivable to identify patients who might have qualified for financial assistance. As of year end, the hospital could not make a final determination as to some patients' qualification for financial assistance because not all requested financial information had been received but felt strongly that they were in need of some form of assistance. Notes in the patient records were examined to see if a charity care application had been sent to the patients or guarantors or if the accounts were being analyzed by a business office employee for approval for charity care. The percentage of patient accounts being analyzed as a percent of total self-pay accounts receivable has been applied to the current year total bad debt expense on Line 2 to arrive at the amount reported on Line 3. For the year ended 2014, the hospital sampled the self-pay accounts receivable to validate the percentage used in 2011 has remained the same. This sample concluded the percentage was still valid and therefore the same percentage has been used for the year ended 2014.It is our belief that the amount of bad debt on Line 3 should be included as community benefit. As a tax-exempt hospital, we must provide necessary services regardless of the patient's ability to pay for the service provided. As a not-for-profit, patient care is provided to all, regardless of ability to pay for that care. Making quality patient care available to all in our community, regardless of economic means, qualifies bad debts as a community benefit. Part III, Line 4: Note B to the 2014 Audited Consolidated Financial Statements of the Covenant Health system, of which LeConte Medical Center is a member, reads in part: "Patient accounts receivable are reported net of both an estimated allowance for uncollectible accounts and an estimated allowance for contractual adjustments. The contractual allowance represents the difference between established billing rates and estimated reimbursement from Medicare, TennCare and other third-party payment programs. The allowance for uncollectible accounts is estimated based upon the age of the patient accounts receivable, prior experience and any unusual circumstances (such as local, regional or national economic conditions) which affect the collectability of receivables, including management's assumptions about conditions it expects to exist and courses of action it expects to take. Covenant's policy does not require collateral or other security for patient accounts receivable and Covenant routinely accepts assignment of, or is otherwise entitled to receive, patient benefits payable under health insurance programs, plans or policies." Part III, Line 8: Costing Methodology: LeConte Medical Center used a combination of sources in calculating Medicare allowable costs on Part III, Line 6 including its cost accounting system, general ledger accounting system, and facility-specific analyses and calculations. Part III, Line 9b: Self-pay patients of LeConte Medical Center automatically receive a minimum 50% discount on charges. Federal poverty guidelines are utilized in the determination of charity care eligibility. Patients who are unable to pay and have exhausted all sources of payment assistance may qualify for charity care. A sliding scale is used for extending charity care utilizing the income levels reported under the federal poverty guidelines. Patients/guarantors with income that falls below 200% of the federal poverty guidelines receive 100% charity care. Patients/ guarantors with income of 201-300% of the federal poverty guidelines receive 70% charity care.For catastrophic illness, exceptions to income and asset limitations may be made on a case-by-case basis. The amount considered for charity will be based upon the evaluation of the patient's/guarantor's ability to pay.Patients/guarantors who qualify for partial financial assistance are responsible for paying any balance remaining after the charity adjustment and third party payments. Once an account has been processed internally through routine collection channels, it may be assigned to an attorney or agency for collection. The patient/guarantor will be billed for all collection costs as may be applicable. Credit reports will be filed no earlier than 30 days following the assignment on all nonpaid balances. Part VI, Line 2: While the Community Health Needs Assessment is a formal means by which the health system assesses the needs of the community, there are many informal linkages that give the Covenant Health hospitals a sense of community issues and needs. LeConte Medical Center obtains additional community information through the service of its employees with the Chamber of Commerce, Sevier County Health Council, and Rotary Club, and through partnerships with the Boys and Girls Club and the Mountain Hope Good Shepherd Clinic for the uninsured. Part VI, Line 3: LeConte Medical Center informs patients and other persons who may be billed for patient care about its financial assistance policies by posting signs in highly visible areas of the hospital and including information about the financial assistance policy in patient booklets placed in all inpatient rooms.The following sign is posted in the main registration area and at the Emergency Department registration entrance: Financial Assistance: Covenant Health is committed to providing quality health services in a caring environment. It is the expressed philosophy of Covenant Health, and its member hospitals, that no one should be denied necessary medical care because of the inability to pay. In conjunction with this philosophy, staffs of LeConte Medical Center are available to assist you with your financial needs. If you are an uninsured person with no public or private source of payment for medical services, LeConte Medical Center, in compliance with Tennessee Code Annotated, Title 47, Chapter 18 and Title 68, will provide at a reduced rate, medically indicated services. A financial counselor is available to assist you with these matters by calling 865-446-8687, Monday through Friday between the hours of 8 a.m. and 4:30 p.m.Signs are also posted at each registration desk and at Customer Service stating: Financial Assistance: It is LeConte Medical Center's philosophy that no one shall be denied medically necessary services based on an inability to pay. Financial assistance applications for medically necessary services are available during the registration process or through our Financial Counselor's office. To apply for financial aid, please ask our registration staff or contact the Counselor's office at 865-446-8687. The Financial Counselor is available Monday - Friday, 8 a.m. - 4:30 p.m.LeConte Medical Center employs full time financial counselors that meet with each uninsured patient. In addition, Leconte Medical Center assists them with completion of a TennCare application and ensures the application is directed to the appropriate Department of Human Services.The Charity Care Policy states that patients who are unable to pay and have exhausted all sources of payment assistance may be screened for potential charity care eligibility. According to the policy, the financial counselors initiate screening of the patient and/or guarantor by obtaining income and other financial information to determine eligibility for charity care or discounted services. Part VI, Line 4: Sevier County, Tennessee, is the primary market for LeConte Medical Center. Sevier is a rural community within close proximity to the metropolitan Knoxville area. LeConte Medical Center is the only hospital in the county. According to internal hospital data for 2014, about 76% of the inpatient discharges were Sevier County residents.The following statistics are taken from 2010 data of the U.S. Census Bureau. The population of Sevier County numbers roughly 89,877 people and is predominantly female (51%). Persons over the age of 65 account for 15.9% of the population. Over 13.5% of the population lives below the poverty level, and the unemployment rate is at 10%. Three-fourths of the population works in the hospitality/ tourism sector, and the median household income is $42,569.According to the 2014 County Health Rankings Report of the Robert Wood Johnson Foundation/ University of Wisconsin Population Health Institute, Sevier County residents have the following health indicators that are above the national benchmarks: Sevier - TN - National Adult Smoking: 28% - 23% - 14% Adult Obesity: 31% - 32% - 25% Excessive Drinking: 11% - 10% - 9% Teen Birthrate: 56 - 49 - 20 of every 1,000 teenage girls Poor or Fair Health: 21% - 19% - 10% Physical Inactivity: 33% - 31% - 21% Part VI, Line 5: LeConte Medical Center (LeConte), in conjunction with its parent company, Covenant Health, uses any available surplus of receipts over disbursements to expand and modernize the facility and to support the education of healthcare professionals, both of which serve to improve patient care and serve the unmet needs of the community. Covenant Health's Board of Directors serves as LeConte's board. It is comprised of independent community leaders with diverse educational and professional backgrounds. The board sets policies and provides oversight of LeConte.LeConte maintains an open medical staff, with privileges available to all qualified physicians. Additionally, the hospital operates an active and accessible emergency department that accepts all patients regardless of ability to pay. Part VI, Line 6: LeConte Medical Center (LeConte), as a member of the Covenant Health system, benefits from the collaboration among all affiliated organizations to promote quality improvement, patient safety and efficient delivery of care for the communities served.As a system, Covenant assures that business processes are in place at each facility to measure and report quality, to increase the role of compliance, and to integrate risk management, utilization review, peer review, mandatory reporting and quality improvement into one cohesive function. In this way, the system is able to use analytic tools to helpidentify any systemic inability to satisfy the various requirements on the part of the facilities.LeConte's patients benefit from the availability of and ease of access to Covenant Health affiliated entities for services not provided by the hospital itself. Transfer or referral to such services is expedited and coordinated to help create a seamless continuum of care. A full range of community mental health and psychiatric hospital services are available within the system that help support the hospital's emergency room as well as provide an accessible and efficient pathway for those patients who require such services post discharge. Other specialized services such as inpatient rehabilitation, cardiac care, cancer treatment, home health and hospice services are provided by affiliated entities. The Covenant Health system also enhances the patient's access to care through the provision of outpatient services in a variety of settings located throughout the service area. These include a diabetes center, wound care center, bariatric surgery center, pulmonary rehabilitation programs and ambulatory infusion centers.LeConte utilized Covenant departments, Center for Community Health and Senior Services, to assist with community healthcare related programs and health screenings such as Community Health Fairs and Senior Health Fairs. In addition, Senior Services publishes and sends a senior health related newsletter, Passport, to nearly 2,000 Sevier County residences. When promoting health screenings & programs to the community, LeConte Medical Center utilized the services of Covenant Health Graphic Services for producing advertisements, fliers, etc. LeConte also worked with Covenant Marketing to include such information on its website.Thompson Cancer Survival Center participates with LeConte Medical Center in educating the community about cancer prevention and treatment by providing information and materials at Sevier County annual Relay for Life event. Thompson also provides free and low cost mammography screenings at LeConte Medical Center.The Robert F. Thomas Foundation (Foundation), a not-for-profit fundraising organization, conducts fundraising events. A portion of the funds are donated to LeConte Medical Center for the purpose of purchasing healthcare related equipment. In addition, the Foundation donates funds to be used for the continuing education of physical therapists employed by LeConte Medical Center.Through this combination of resources and the collective development, implementation and monitoring of clinical protocols and other improvement initiatives, the affiliated entities of Covenant Health are able to deliver higher quality care in a more efficient manner than could be achieved working independently. 1 Walters State Community College Foundation 500 S Davy Crockett Pkwy Morristown TN 37813 510162364 501(c)(3) 25000 Nursing skill lab East TN State University Foundation PO Box 70732 Johnson City TN 37614 237092731 501(c)(3) 100000 Health Science Partnership Boys & Girls Club of the Smoky Mountains PO Box 5743 Sevierville TN 37864 621507789 501(c)(3) 7500 Support program in Sevier County Dr Robert F Thomas Foundation PO Box 4395 Sevierville TN 37864 581537582 501(c)(3) 29166 Program service support 4 0 Provided patient transportation and post-hospital stay support. 262 12571 Cost Awarded educational scholarships. 1 500 Cost Part I, Line 2: The organization maintains records of check requests authorizing gifts and donations. Donations are made to charitable foundations for the purpose of enhancing and promoting health care and education in Sevier County, Tennessee. Annually, the Chief Administrative Officer and the Chief Financial Officer determine the amounts of donations to community organizations. As part of its medical mission, the organization may also provide transportation for patients who are financially unable to make transportation arrangements. X 1 1 0 1 0 0 0 0 0 0 0 Ed Anderson Director 0 82102 0 0 0 72765 0 1512 0 0 0 156379 0 0 Anthony L Spezia President & CEO 0 983682 0 469288 0 151013 0 214200 0 15465 0 1833648 0 0 John T Geppi EVP/CFO 0 472919 0 199500 0 80241 0 10200 0 16156 0 779016 0 0 Jennifer Hanson President & CAO 0 204560 0 20000 0 33900 0 8882 0 8098 0 275440 0 0 Rick A Carringer VP-Financial Services 125795 0 20000 0 15834 0 5884 0 7147 0 174660 0 0 0 Claudia Ogburn Pharmacy Manager 130674 0 0 0 3497 0 8164 0 13886 0 156221 0 0 0 Ellen Wilhoit Former President & CAO 0 62738 0 35000 0 47394 0 10200 0 1980 0 157312 0 0 Lori Myers Former VP-Chief Nursing Officer 0 108220 0 0 0 205 0 1113 0 6956 0 116494 0 0 Part I, Line 1a Tax gross-up payments related to deferred compensation are provided to certain executives and managers. These are treated as taxable compensation to the recipients. Part I, Line 3 Covenant Health, the parent company of LeConte Medical Center, used one or more of the methods listed in establishing the compensation of Anthony L. Spezia. Please see the statement to Core, Part VI, Section B, Line 15a on Schedule O. 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 2014 amounted to $83,726 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 2014 totaled $204,000, which is reported in Column C of Schedule J, Part II. Interest earned by Plan B during 2014 of $43,651 is not required to be reported in compensation in Part II, as Mr. Spezia is not substantially vested in Plan B. Form 990, Part III, Line 1 REPORT TO THE COMMUNITY Covenant Health is a comprehensive, community-owned health system dedicated to improving the health of the people it serves. Established in 1996 by the consolidation of Fort Sanders Health System, Knoxville, Tennessee, and MMC HealthCare System in Oak Ridge, Covenant Health is governed by a voluntary board of directors made up of community leaders and medical professionals. Covenant Health includes nine acute care hospitals in East Tennessee: Claiborne Medical Center Cumberland Medical Center Fort Loudoun Medical Center Fort Sanders Regional Medical Center LeConte Medical Center Methodist Medical Center Morristown-Hamblen Healthcare System Parkwest Medical Center Roane County Medical Center Member organizations also include: Covenant HomeCare Peninsula Hospital The Patricia Neal Rehabilitation Center Thompson Cancer Survival Center Thompson Oncology Group Fortress Corporation Fort Sanders West Diagnostic Center Covenant Medical Group, Inc. Philanthropic affiliates include: Fort Sanders Foundation Methodist Medical Center Foundation Morristown-Hamblen Foundation Thompson Cancer Survival Center Foundation Approximately 10,000 people are employed by Covenant Health and its member organizations. Working together with nearly 1,500 affiliated physicians, these healthcare professionals deliver quality care to thousands of patients throughout East Tennessee. Kiosks for Patients' Convenience Covenant Health now has three types of kiosks available to help patients "check in" at registration, electronically sign documents, and to help family members find a patient's hospital location. The check-in kiosks are used over 5000 times per month by patients who sign in electronically, notifying registration staff of their arrival. A notable feature of the check-in kiosks is use of Covenant FastPass hand-scanning technology, which ensures positive patient identification and deters identity theft. Covenant also implemented electronic signature kiosks (eSign) at some facilities. These allow patients to review their personal and billing information and then sign registration paperwork on screen. The eSign service streamlines registration for patients with simple appointments and gives registration staff more time to spend with patients with more complex needs. For facility visitors, Covenant Wayfinding kiosks are used more than 2000 times per month to help family and friends locate patients being treated at Covenant facilities. A Legacy of Philanthropic Impact Since the first campaign of Fort Sanders Foundation to establish the Patricia Neal Rehabilitation Center (PNRC) in the late 1970s, the volunteer board members of Covenant Health's foundations have focused on raising funds to ensure the future of healthcare in its communities. The impact of the philanthropic efforts by individuals, businesses and foundations is substantial. Covenant's Office of Philanthropy coordinates fund raising efforts at four foundations: Fort Sanders Foundation, Methodist Medical Center Foundation, Morristown- Hamblen Hospital Foundation, and Thompson Cancer Survival Center Foundation. One strong example of philanthropic partnerships is the Will Rogers Institute and its 15-year history of support for the pulmonary rehabilitation programs of Covenant Health - in particular, the work of the Patricia Neal Rehabilitation Center. The Will Rogers Institute (WRI) is a national charitable organization dedicated to perpetuating the memory of one of America's best-loved entertainers. It supports cardiopulmonary research and treatment programs, neonatal care, and patient and community education on health/fitness topics. Each summer, movie theatres across the country participate in a fundraising campaign for WRI. Regal Entertainment Group, which supports the Patricia Neal Rehabilitation Center and its annual Golf Classic, helped develop the relationship between the Will Rogers Institute and Covenant Health many years ago. Over the past 15 years, WRI has granted more than $2 million to PNRC and the hospitals of Covenant Health. Grant funds support cardiopulmonary rehabilitation and health improvement initiatives at PNRC and other Covenant facilities, including a strong focus on smoking cessation and access to pulmonary rehabilitation care. Numerous pieces of therapy equipment, oxygen piping and monitoring systems, and pulmonary testing equipment have been provided for PRNC, the hospitals and outpatient pulmonary rehabilitation centers. The grant also funds a unique telemanagement program in which respiratory therapists make follow-up contact with all patients who have expressed an interest in smoking cessation while at a Covenant Health hospital. The therapists provide support, education and information on smoking cessation classes available in the area. At the end of 2014, the smoking cessation compliance rate for patients contacted by respiratory therapists via phone at 6 months post discharge stands at 41%. The grant also funded Covenant Health's development of a "Stop Smoking" app for Apple and Android phones. The app is offered free to the public as a tool to support efforts to break smoking addictions. The longstanding partnership with the Will Rogers Institute and Regal Entertainment Group has created a legacy for the future, not only for the Patricia Neal Rehabilitation Center and Covenant's pulmonary health initiatives, but for corporate and foundation funding of its health care mission throughout the region. Form 990, Part III, Line 1 Leadership Academy Participants Get Insider View of Healthcare For the third year, a selected group of business and community leaders from across the region have experienced an in-depth view of Covenant Health and the healthcare environment as participants in Covenant Answers: A Healthcare Leadership Academy. The Office of Philanthropy hosts the Academy each year in an effort to expand the cadre of healthcare-informed volunteer leaders in the community. Over a five-month period, class members attended an orientation with Covenant executive leadership and half-day sessions at five different Covenant hospitals. The sessions included behind-the-scenes tours and hands-on access to the latest technologies and treatments. Participants had opportunities to discuss the challenges of the current healthcare environment with Covenant physicians and clinicians, communicate via a tele-stroke robot with a physician in another state and visit with a patient who received a life-saving interventional stroke treatment. They also observed a TAVR heart valve replacement surgery and a Barrett's esophagus cancer laser procedure. A Healthy Start for Covenant's Smallest Patients When parents are expecting a new baby, they may read books, buy new furniture and baby clothes, and consult family and friends. As families prepare for their new arrivals, Covenant Health hospitals are ready and waiting with a variety of birthing options and hospital amenities to help welcome their smallest patients. More than 7,000 babies got their first glimpse of life from the security and comfort of a Covenant Health hospital in 2014. Maternity suites at Covenant hospitals are designed to maximize comfort and provide immediate access to technology. Room options may include private suites equipped with bassinets for "rooming in" and comfortable sleeper furniture for a family member. All maternity units are secured with monitored entries and exits. Additional security devices and procedures are in place to monitor babies' safety. More than 50 credentialed physicians provide care to Covenant Health patients during pregnancy and while in the hospital. Childbirth education classes are available to help parents prepare for their new arrival. Best Practices for Babies' Healthy Start Five Covenant Health hospitals that offer obstetrics services were recognized by the Tennessee Hospital Association for reducing the number of babies born electively between 37 and 39 weeks gestation during 2011-2014. Fort Sanders Regional Medical Center, Parkwest Medical Center, LeConte Medical Center, Methodist Medical Center and Morristown-Hamblen Healthcare System received recognition from THA's Tennessee Center for Patient Safety for reducing elective early deliveries, thereby increasing babies' chances for better lifelong health. 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 require more medical care and put them at greater risk for death before their first birthdays. Waiting until 39 weeks 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. For an infant, two additional weeks can mean the difference between complications leading to lifelong health issues and a healthy and robust start. 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 with obstetrical services also collaborate with the Tennessee Department of Health's Safe Sleep program. Participating hospitals have agreed to develop and implement hospital safe sleep policies and provide education to staff and patients regarding safe sleep recommendations. LeConte Medical Center has received a bronze designation from the National Safe Sleep Hospital Certification Program for its leadership in best practices and education related to safe sleep. 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 nine breast centers, located conveniently throughout Covenant's service area, offer state-of-the-art digital mammography. Two locations, Parkwest Medical Center and Morristown-Hamblen Healthcare System, provide 3D mammography services. Covenant Health has additional technologies for the early detection of breast cancer, including breast ultrasound and MRI. The health system provides comprehensive heart and stroke care for women, and has developed educational and outreach programs to inform women about cardiovascular disease, risk factors, prevention, treatment and rehabilitation. A full range of diagnostic screenings, gynecological care, cancer care, and specialized treatment for conditions such as incontinence are offered to women in all ages and stages of life. A Heart for Excellence 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. Advanced Technology Keeps More Hearts Beating 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 is 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 treatments 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 work together to make sure that patients receive the most appropriate care as quickly as possible. The American College of Cardiology and the American Heart Association have established 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 with 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 can be improved by having a systems approach to identification, notification, and rapid transfer. Form 990, Part III, Line 1 Several new Cardiac 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 can now 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 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. Cardiac Rehab 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 Covenant Health has the region's only stroke hospital network for 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. Covenant Health's stroke hospital network offers advanced treatments and clinical trials that are unavailable in other areas of the region. Delivering Immediate and Excellent Care When a stroke happens, timely treatment is critical. The Comprehensive Stroke Center at Fort Sanders Regional Medical Center is well above the national average in delivering prompt treatment of life-saving medication. Clot-busting drugs are given to stroke patients to improve blood flow and minimize potential disabilities. The amount of time it takes for a patient to be brought into a hospital until the moment medications are intravenously administered is referred to as "door-to-needle time." The average door-to-needle time is a little more than an hour; the door-to-needle time at Fort Sanders Regional is 30 minutes, half an hour faster than the national average. The stroke center exists to provide the highest level of stroke care for complicated stroke cases, which includes finding out why the stroke occurred to prevent it from happening again. The Comprehensive Stroke Center at Fort Sanders Regional sees patients from throughout East Tennessee and beyond. To help patients reclaim as much ability and independence as possible, the Patricia Neal Rehabilitation Center provides inpatient and outpatient stroke care. Patients are treated by a holistic team that includes physiatrists (rehab physicians); physical, occupational and speech therapists; rehab psychologists; case managers and recreation therapists. Treatment includes goal setting and interdisciplinary in range of motion, strengthening and conditioning, along with self-care and activities of daily living. 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 tools available. Technology includes advanced imaging such as positron emission technology (PET) in Knoxville and mobile PET services in Sevierville, TomoTherapy, high-dose-rate brachytherapy and 3D radiation therapy. Fort Sanders Regional Medical Center offers Gamma Knife, the area's only 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. The health system recently 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-Hamblen Hospital System, and at Cumberland Medical Center's radiation oncology program in Crossville. 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. Thompson Oncology Group has 10 physician offices in Sevierville, Knoxville, Blount County, Morristown and Oak Ridge. 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 10 Thompson Oncology Group locations and encompasses 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 April 2014 nearly 8,000 people participated in the 11th Covenant Health Knoxville Marathon, which attracted local runners and hand cyclists, as well as competitors from throughout the U.S. and other countries. Marathon events included 2- and 4-person relays, a 5K, half-marathon and full marathon. * 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 train together for five months, with the goal of crossing the finish line in Covenant Health Knoxville Marathon events, and challenge other East Tennesseans to start a health journey that will change their lives for the better. * Some of the funds raised through the Covenant Health Knoxville Marathon were contributed to Patricia Neal Rehabilitation Center's Innovative Recreation Cooperative. More than $5,000 was given to the Cooperative, a collaboration of groups and individuals who help disabled persons enjoy leisure and recreation activities such as water skiing and cycling. * 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 on 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 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 to host Water Safety Day. The event provided health and safety information to local children and families, and was held in conjunction with the "World's Largest Swimming Lesson," a national event promoting the importance of learning to swim. At the event LeConte employees educated children about water safety, representatives from Thompson Cancer Survival Center talked about the importance of sunscreen, and staff from the Patricia Neal Rehabilitation Center were on hand to talk about the Think First head 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 had not received a mammogram in two years and were age 40 or older without insurance coverage. * Missy Kane, health promotions coordinator for Covenant Health, 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. Parkwest Medical Center, LeConte Medical Center and Thompson Cancer Survival Center have been co-sponsors of hiking programs led by Missy Kane. Summary of System Community Benefit Totals for Uncompensated Care 2014 Charity Care................... $59.9 million TennCare ...................... $51.3 million Medicare ...................... $120.7 million Total Uncompensated Care....... $231.9 million Health Professions Education Continuing education; preparation of future healthcare professionals .... $2,114,749 Subsidized Health Services Clinical services provided to meet community needs despite financial loss .... $22,333,549 Donations, Medical Missions and Community Building .... $2,094,186 Total Contributions ..... $258,442,484 Form 990, Part VI, Section B, line 11 Covenant Health is a large integrated health system which files fourteen Forms 990. LeConte Medical Center is one of these fourteen entities. 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, the parent company of the organization, distributes a board-approved Code of Conduct to all employees. The Code covers among other subjects, conflicts of interest. Additionally, managers are required to complete and sign 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 Overall compensation policies for LeConte Medical Center, Covenant Health (Parent Company), and affiliates are set by the Compensation Committee of the Board of Directors, ("the Committee), which is comprised of independent members of the board. The Committee is guided in its decision-making process by an independent, nationally-recognized executive compensation consultant experienced in advising nonprofit hospital boards. Compensation policies for Anthony Spezia and John Geppi are reported on the 2014 Form 990 of Covenant Health, EIN 62-1646734. Part VI, Section B, Line 15b: Base salary and annual bonus opportunities for Jennifer Hanson, President and Chief Administrative Officer, are set by the Covenant Health 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 is reasonable and within a fair market value range. Salary ranges are based upon the recommendations of the Consultant made after comparison with similar jobs in similar size health systems across the nation. Bonuses are recommended by the CEO and approved by the Committee conditioned upon receipt of a written opinion from the Consultant that total compensation for the executive is reasonable and consistent with fair market value. Base salary is initially targeted at midpoint and may vary according to the individual's experience, market conditions and competition. Annual bonuses are designed to award 0-35% of base salary based upon system performance and accomplishment of certain targets established by the CEO. Base salaries and annual bonus opportunities for Rick Carringer, Vice President of Financial Services, Jacqueline Hounshell, Vice President of Financial Services as of 8/25/14, and Patricia Ketterman, Vice President and Chief Nursing Officer, are based on targets established by an independent, nationally-recognized executive compensation consultant to ensure that total compensation for each executive is reasonable and within a fair market value range. Salary ranges are based upon comparison with similar jobs in similar size health systems across the nation. Base salaries and bonuses are approved by Executive Leadership predicated upon performance, and are reasonable and consistent with fair market value. Base salaries are initially targeted at midpoint and may vary according to the individual's experience, market conditions and competition. Annual bonuses are designed to award 0-20% of base salary based upon system performance and accomplishment of certain targets established by Executive Leadership. Form 990, Part VI, Section C, line 19 LeConte Medical Center files a Joint Annual Report containing financial information with the Tennessee Department of Health. Per its tax exempt bond provisions, Covenant Health, the parent company of the organization, is required to file quarterly and annual consolidated and obligated group financial statements and other documentation with various bond insurers and other agencies, including the Electronic Municipal Market Access (EMMA) service of the Municipal Securities Rulemaking Board (MSRB). Any member of such a repository has access to these financial statements. The organization's governing documents and conflict of interest policy are not made publicly available. Form 990, Part VI, Section A, Line 9 Contact Addresses for Directors and Officers: Anthony L. Spezia Covenant Health 100 Ft. Sanders West Blvd. Knoxville, TN 37922 John T. Geppi, Larry Mauldin, and all Directors Covenant Health 1420 Centerpoint Blvd., Bldg C Knoxville, TN 37932 Ellen Wilhoit 2110 Hornbuckle Lane Sevierville, TN 37876 Lori Myers Parkwest Medical Center 9352 Park West Blvd. Knoxville, TN 37923 Rick A. Carringer Methodist Medical Center 990 Oak Ridge Turnpike Oak Ridge, TN 37830 All other persons listed in Part VII, Section A may be contacted at the organization's address, which is: LeConte Medical Center 742 Middle Creek Road Sevierville, TN 37862 Covenant Health 1420 Centerpoint Blvd Bldg C Knoxville TN 379321960 621646734 Supporting organization TN 501(c)(3) Line 11b, II N/A 0 Covenant Homecare 3001 Lake Brook Blvd Suite 101 Knoxville TN 37909 621623114 Home health services TN 501(c)(3) Line 9 Covenant Health 0 Fort Loudoun Medical Center 550 Fort Loudoun Medical Ctr Dr Lenoir City TN 37772 621373691 Acute care hospital TN 501(c)(3) Line 3 Covenant Health 0 Fort Sanders Regional Medical Center 1901 W Clinch Ave Knoxville TN 37916 620528340 Acute care hospital TN 501(c)(3) Line 3 Covenant Health 0 Fort Sanders Foundation 280 Ft Sanders W Blvd Ste 202 Knoxville TN 37922 621748601 Fundraising and patient outreach TN 501(c)(3) Line 11b, II Covenant Health 0 Fort Sanders Perinatal Center 501 19th St Ste 304 Knoxville TN 37916 043760551 High risk obstetrical services TN 501(c)(3) Line 3 Fort Sanders Regional Medical Center 0 Methodist Medical Center 990 Oak Ridge Turnpike Oak Ridge TN 37830 620636239 Acute care hospital TN 501(c)(3) Line 3 Covenant Health 0 Morristown-Hamblen Hospital Assc dba M-H Healthcare System 908 W 4th North St Morristown TN 37814 620545814 Acute care hospital TN 501(c)(3) Line 3 Covenant Health 0 Parkwest Medical Center 9352 Park West Blvd Knoxville TN 37923 581897274 Acute care hospital & behavioral health services TN 501(c)(3) Line 3 Covenant Health 0 Roane County Medical Center dba Roane Medical Center 8045 Roane Medical Center Dr Harriman TN 37748 680673354 Acute care hospital TN 501(c)(3) Line 3 Covenant Health 0 Thompson Cancer Survival Center 1915 White Ave Knoxville TN 37916 621250943 Cancer treatment facility TN 501(c)(3) Line 3 Covenant Health 0 Thompson Oncology Group 1915 White Ave Knoxville TN 37916 621619239 Oncology services TN 501(c)(3) Line 3 Thompson Cancer Survival Center 0 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 0 Cumberland Medical Center 421 S Main St Crossville TN 38555 620790132 Acute care hospital TN 501(c)(3) Line 3 Covenant Health 0 Claiborne Medical Center 1850 Old Knoxville Rd Tazewell TN 37879 464420358 Acute care hospital TN 501(c)(3) Line 3 Covenant Health 0 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 Ctr LLC 210 Ft Sanders W 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 Ft Sanders W Blvd Ste 200 Knoxville TN 37922 242444076 Building ownership TN N/A Knoxville Orthopaedic Surgery Center LLC 256 Ft Sanders W Blvd Ste 200 Knoxville TN 37922 262437385 Orthopaedic surgery TN N/A KOC 260 Bldg LLC 260 Fort Sanders West Blvd Knoxville TN 37922 465228440 Land & building ownership TN N/A Fortress Corporation 280 Fort Sanders West Blvd Suite 21 Knoxville TN 37922 621308885 Management company TN N/A C 0 Covenant Medical Group Inc 1400 Centerpoint Blvd Suite 100 Bld Knoxville TN 37932 621282917 Physician practice management TN N/A C 0 Knoxville Heart Group 1819 Clinch Ave Ste 108 Knoxville TN 37916 271528941 Cardiology medical practice TN N/A C 0 East TN Cardiovascular Surgery Group Inc 9125 Cross Park Dr Ste 200 Knoxville TN 37923 621018541 Cardiovascular surgical practice TN N/A C 0 0 0 0 0 0 0 0 0 0 1 1 1 1 1 1 1 1 1 1