2014-11-11T13:36:34-06:00 2013-12-31 990 2013-01-01 621114867 LeConte Medical Center LECO 8653746864 1420 Centerpoint Blvd Bldg C Knoxville TN 379321960 JOHN T GEPPI EVP/CFO 8653746872 2014-11-06 Self prepared 2013 2015-11-30 17:44:51Z Anthony L Spezia 100 Ft Sanders W Blvd Knoxville TN 37922 95463670 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. 21 17 688 139 420403 -54547 1032788 850493 90147968 91612693 4883 6595 878329 2870342 92063968 95340123 201495 183154 0 0 25961858 25894104 0 0 0 65017968 66257616 91181321 92334874 882647 3005249 88692977 89066416 52541125 49909315 36151852 39157101 X LeConte 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 7984170 7247083 Orthopedics. See Schedule O for additional information.Orthopedics: Expenses - $7,984,170; Revenue - $7,247,083LeConte Medical Center served 4,253 orthopedic patients in 2013 with 949 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 orthpedic patients. The facility provides imaging services including computerized tomography and magnetic resonance imaging. In 2013, 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. LeConte performed 949 orthopedic surgical procedures in 2013, which is a 45% increase from the prior year. Surgical procedures performed include major joint replacements, arthroscopic knee and shoulder repair, hand and wrist procedures, spinal fusions and laminectomies. Quality is of the utmost priority at LeConte, and over 99% of surgical patients received the appropriate antibiotic within one hour prior to surgery.Should the patient have post opertive 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. 5658529 6138194 Pulmonary Services. See Schedule O for additional information.Pulmonary Services: Expenses - $5,658,529; Revenue - $6,138,194LeConte Medical Center served over 6,900 pulmonary patients in 2013 and provided over 33,000 respiratory therapy treatments. LeConte has a full time pulmonologist on active staff who is focused on outstanding clinical outcomes for his patients. LeConte has an eight bed intensive care unit staffed by highly trained professionals whose focus is on the comfort, care and safety of every patient. The facility provides both inpatient and outpatient respiratory therapy. Quality has always been a key focus, and LeConte Medical Center has had no ventilator associated pneumonias in over five years. 5532927 4864913 Obstetrics, Gynecology, and Neonatal Services. See Schedule O for additional information.Obstetrics, Gynecology, and Neonatal Services: Expenses - $5,532,927; Revenue - $4,864,913In 2013 LeConte Medical Center cared for over 6,300 patients and had 944 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 they 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 began providing education around 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 of the impact parental drug addiction has on newborns. 70927142 183154 75186794 As a full-service acute care hospital, LeConte Medical Center features 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. 70927142 183154 75186794 90102768 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 1 0 0 0 0 1 0 0 0 1 156 0 1 688 1 1 1 0 0 0 0 0 0 0 X 21 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 Anthony L Spezia President & CEO 0.00 50.00 X X 0 1543512 228486 Gerald Boyd Director 0.00 1.00 X 0 1445 0 Dr Richard Brinner Director 0.00 1.00 X 0 1576 0 Dr Mitchell Dickson Director 0.00 1.00 X 0 1873 0 Pamela P Fansler Director 0.00 1.00 X 0 0 0 James Fitzsimmons Director 0.00 1.00 X 0 1461 0 Kimberly Greene Director 0.00 1.00 X 0 0 0 Wayne Heatherly Director 0.00 1.00 X 0 1661 0 Jim Johnson Jr Director 0.00 1.00 X 0 1465 0 Karla Lane Director 0.00 1.00 X 0 0 0 Eddie Mannis Director 0.00 1.00 X 0 0 0 Larry Mauldin Chairman 0.00 1.00 X 0 1542 0 Dr Joseph Metcalf Director 0.00 3.00 X 0 26641 0 George Miller Director 0.00 1.00 X 0 1434 0 Alvin Nance Director 0.00 1.00 X 0 1464 0 Linda Ogle Director 0.00 1.00 X 0 0 0 Mitchell Steenrod Director 0.00 1.00 X 0 1311 0 Carl Storms Director 0.00 1.00 X 0 1453 0 Joseph E Sutter Director 0.00 1.00 X 0 1761 0 Richard Swanson Director 0.00 1.00 X 0 0 0 Joe Ben Turner Director 0.00 1.00 X 0 1636 0 David C Verble Director 0.00 1.00 X 0 1362 0 John T Geppi EVP/CFO 0.00 50.00 X 0 710276 25177 Ellen F Wilhoit Pres. & CAO 50.00 0.00 X 0 256832 24024 Rick A Carringer VP - Financial Services 50.00 0.00 X 152426 0 12327 Jennifer Hanson Pres. & CAO 15.00 35.00 X 0 220718 13700 Lori A Myers VP - Chief Nursing Officer 50.00 0.00 X 72712 42491 7410 Dennis D Woods Pharmacist 40.00 0.00 X 110768 0 20351 Claudia D Ogburn Pharmacy Manager 50.00 0.00 X 134609 0 17053 Patricia Ketterman VP - Chief Nursing Officer 50.00 0.00 X 38818 64077 12626 Phillip D Carney Director of Radiology 50.00 0.00 X 101905 0 6443 611238 2885991 367597 4 0 1 0 GE Healthcare PO Box 402076 Atlanta GA 303842076 Equipment Maintenance/Service 853429 Angelica Textile Services Inc PO Box 535122 Atlanta GA 30353 Linen Service 368060 Medic Regional Blood Center 1601 Ailor Avenue Knoxville TN 37921 Blood Processing 348244 Southern Surgical Support 1209 Wembly Ct Knoxville TN 37922 Surgical Services 344293 Cardinal Health PO Box 905867 Charlotte NC 28290 Service Contracts 274104 11 4523 21500 824470 803500 850493 Medical Services 622110 90921826 90921826 Rental Income-Exempt Affiliate 531120 273197 273197 Laboratory 621500 253756 253756 Community Health 900099 163914 163914 91612693 6431 6431 164 164 224915 121014 103901 103901 103901 4852 4523 2533 2319 2319 Meaningful Use 900099 1961324 1961324 Cafeteria 722212 234491 234491 Gift Shop 453220 125170 125170 443137 116559 166647 159931 2764122 95340123 93436984 420403 632243 171669 171669 11485 11485 164753 164753 20792820 20250248 542572 634766 619909 14857 2799760 2713847 85913 1502005 1454446 47559 5142382 4979174 163208 46508 26629 19879 5187948 5060299 127649 215483 208761 6722 2694842 2473295 221547 1832662 1617187 215475 28806 26066 2740 142510 100244 42266 102281 102281 5050936 5050936 211088 207144 3944 Charity Care 15699150 15699150 Supplies & Equipment 12778188 12778188 Bad Debts 12229493 12229493 Sponsorship 2818185 2818185 2077154 1504132 573022 92334874 90102768 2232106 0 2805 2825 -158369 -290997 4365232 5192865 979529 1077017 105504 117212 113694659 31687878 82252873 82006781 117719 115799 1027684 844914 88692977 89066416 5410153 5731034 9296 0 2570150 1333137 44551526 42845144 52541125 49909315 X 36151852 39157101 36151852 39157101 88692977 89066416 3005249 0 X X 0 1 X 1 0 X RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED 790000 790000 76466043 7608174 68857869 85503 75968 9534 35924810 24003736 11921075 428303 428303 82006781 Capital Lease Obligations 2008 Due to Affiliates, Net 42087812 Due to Third Party Payors 195742 Long-term Deferred Compensation 62973 Long-term Reserve for Workers Comp 496609 42845144 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 which are accounted for in accordance with Financial Accounting Standards Board (FASB) Accounting Standards Codification (ASC) 740, Income Taxes (see Note G)." Note G reads in part: "Covenant had no unrecognized tax benefits at December 31, 2013 and 2012. As such, no interest or penalties were recognized in the Consolidated Statements of Operations related to unrecognized tax benefits. At December 31, 2013, tax returns for 2010 through 2013 are subject to examination by the Internal Revenue Service. Covenant has no uncertain tax positions that would require financial statement recognition or disclosure under generally accepted accounting principles at December 31, 2013 or 2012." 1 1 X 1 X 1 X 1 1 1 0 1 1 8572059 2299899 6272160 0.07830 20241334 15443239 4798095 0.05990 22541 8012 14529 0.00020 28835934 17751150 11084784 0.13840 81258 81258 0.00100 2848960 2848960 0.03560 162173 162173 0.00200 3092391 3092391 0.03860 31928325 17751150 14177175 0.17700 4622 4622 0.00010 4333 4333 0.00010 64040 64040 0.00080 224 224 0.00000 372 372 0.00000 73591 73591 0.00100 0 12229493 2030096 16584927 13984746 2600181 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 1 X X X X X X X X 13 1 0 1 X www.lecontemedicalcenter.com X X X X 0 0 1 1 200.000000000000 1 300.000000000000 1 X X X 1 1 X X 1 0 X X X X 1 X 0 0 LeConte Medical Center Part V, Section B, Line 3: 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 7: Of the five significant findings from the assessment, LeConte Medical Center is focusing its resources on prescription drug abuse, chronic conditions related to obesity, and childhood obesity. LeConte has chosen not to develop a specific strategy for addressing teen pregnancy but will support the prevention efforts of the local health department. Further, as dental care is not a service that the hospital provides, LeConte has chosen to not include dental care to the uninsured as one of its priorities. The hospital will support providers of these services, resources permitting. LeConte Medical Center Part V, Section B, Line 14g: Please see the explanation to Part VI, Line 3. LeConte Medical Center Part V, Section B, Line 20d: Please see the explanation to Part III, Line 9b. 8 LeConte Medical Center Infusion Svcs 710 Middle Creek Road Sevierville TN 37862 Infusion Services 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 The Sleep Disorders Center 740 Middle Creek Road Suite 212 Sevierville TN 37862 Sleep Disorders Center 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 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 $2,848,960 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 $ 12,229,493. 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 alleviating 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 2013 contributions were made to organizations meeting the community's needs by providing: *Affordable, permanent housing and case management services to foster self-sufficiency - Knoxville's Community Development Corporation (KCDC) *Innovative education and literacy programs fostering success in school life - Great Schools Partnership and Dollywood Foundation *The basic needs of life including temporary shelter, food and clothing - Catholic Charities, Family Promise, Ladies of Charity, United Way and others *Youth mentoring and development and after-school programs - Emerald Youth Foundation and Great Smoky Mountain Council, Boy Scouts of America *Business recruitment and marketing initiatives that boost economic development - Innovation Valley *Leadership development programs and workshops - Leadership Knoxville *Assistance and special programs for at risk, physically challenged, abused and neglected children - Emory Valley Center and Variety of Eastern Tennessee (local chapter of Variety-The Children's Charity) 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 2013, 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 2013.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 2013 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 52% 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 thru the service of its employees with the Chamber of Commerce, Sevier County Health Council, and Rotary Club, and thru 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 2013, about 77% 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 2013 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: 27% - 23% - 13% Adult Obesity: 30% - 32% - 25% Excessive Drinking: 11% - 10% - 7% Teen Birthrate: 57 - 50 - 21 of every 1,000 teenage girls Poor or Fair Health: 22% - 19% - 10% Physical Inactivity: 29% - 30% - 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 37614 621507789 501(c)(3) 7500 Support program in Sevier County 3 0 Provided patient transportation and post-hospital stay support. 250 10235 Cost Awarded educational scholarships. 2 1250 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 volunteer coordinator 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 when leaving the hospital. X 1 1 0 1 0 0 0 0 0 0 0 Anthony L Spezia President & CEO 0 955101 0 443088 0 145323 0 214000 0 14486 0 1771998 0 0 John T Geppi EVP/CFO 0 448213 0 184500 0 77563 0 10000 0 15177 0 735453 0 0 Ellen F Wilhoit Pres. & CAO 0 171785 0 47834 0 37213 0 9671 0 14353 0 280856 0 0 Rick A Carringer VP - Financial Services 120358 0 20000 0 12068 0 5712 0 6615 0 164753 0 0 0 Jennifer Hanson Pres. & CAO 0 178779 0 10000 0 31939 0 6260 0 7440 0 234418 0 0 Claudia D Ogburn Pharmacy Manager 131164 0 0 0 3445 0 8001 0 9052 0 151662 0 0 0 Part I, Line 1a Tax gross-up payments 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 2013 amounted to $77,542 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 2013 totaled $204,000, which is reported in Column C of Schedule J, Part II. Interest earned by Plan B during 2013 of $30,427 is not required to be reported in compensation in Part II, as Mr. Spezia is not substantially vested in Plan B. X 13500 FMV X 3 790000 FMV 0 0 0 Form 990, Part III, Line 1 REPORT TO THE COMMUNITY Covenant Health was formed in 1996 with the mission to serve its communities by improving the quality of life through better health. The health system is nationally recognized as a top performer in many areas: patient care, quality performance, cost, integration, information technology, finances, ethics and innovation. Amid a challenging healthcare environment, Covenant Health has committed to these imperatives: * Serving the communities as a not-for-profit health system. * Leading in quality and service. * Outstanding governance and leadership. * An engaged work force with the right skill sets. * Being the practice environment of choice for physicians. * Reinvesting in the communities, providing programs, services, technologies and facilities that improve local healthcare services and patient care. Covenant Health has invested well over a billion dollars in its communities since 2000 - a commitment no other healthcare organization has approached. It has opened new hospitals, expanded services, and brought cutting-edge medical technology to the region. * Meeting the challenges of the healthcare environment through effective strategic planning and wise use of resources. * Providing excellent care to every patient, every time. Covenant Health's Board of Directors and its administration are challenged by a complex and changing healthcare environment. These challenges require strong collaboration and a common vision among all of Covenant Health's constituents: employees, physicians, board members, patients and the communities served by Covenant Health. Providing quality care and an excellent patient experience remain high priorities for the board, especially in a new era of reimbursement based on outcomes and patient satisfaction. Because of the focused commitment of Covenant's administration and caregivers, the health system performs well in these areas. Covenant Health is committed to maintaining its not-for-profit status while providing needed services to the communities. Despite the increasing shift of responsibilities for charity care to the hospitals, Covenant Health remains strong in delivering care that improves the quality of life at the lowest possible cost. It works closely with physicians to develop strategies for service lines and health system operations and has the financial strength to weather impending storms while investing in new technologies, people, and other opportunities as they arise. In the face of today's challenges, Covenant Health has a firm foundation on which to stand, balancing lessons learned with strengths gained from a disciplined execution of thoughtful strategies. The board has a clear vision of the importance of fulfilling the mission and is prepared to address challenges with determination, commitment, knowledge and community focus. Covenant Health Member Organizations Covenant Health Board members and administrative leaders serve their communities through strategic planning and successful operation of these member organizations: Hospitals and Other Healthcare Providers: Claiborne Medical Center (joined the system April 1, 2014) Cumberland Medical Center (joined the system February 1, 2014) Covenant Homecare and Hospice Fort Loudoun Medical Center (Fort Loudoun) Fort Sanders Perinatal Center (Perinatal Center) Fort Sanders Regional Medical Center (Fort Sanders Regional) LeConte Medical Center (LeConte) Methodist Medical Center (Methodist) Morristown-Hamblen Healthcare System (Morristown-Hamblen) Parkwest Medical Center (Parkwest) Peninsula Hospital, a Division of Parkwest Medical Center (Peninsula) Roane County Medical Center (Roane) Thompson Cancer Survival Center Thompson Oncology Group Knoxville Heart Group Outpatient and Specialty Care Departments and Joint Ventures: Hospital-based Therapy Centers Fort Sanders West Diagnostic Center Fort Sanders West Outpatient Surgery Center Morristown Regional Diagnostic Center Patricia Neal Rehabilitation Center Peninsula Outpatient Centers Thompson Cancer Survival Center hospital-based Infusion Centers Fort Sanders Sevier Nursing Home Foundations: Fort Sanders Foundation Methodist Medical Center Foundation Morristown-Hamblen Hospital Foundation Thompson Cancer Survival Center Foundation Other Programs and Services: Fortress Corporation Covenant Medical Management, Inc. Covenant Health is also a partner in joint ventures with physicians that provide surgical and other services. Recognized Excellence in Caring for Our Communities Covenant Health delivers quality care, with services designed to meet the specific needs of people in the communities it serves. Nine acute care hospitals located in Knoxville and surrounding areas comprise the foundation of the health system. The hospitals offer comprehensive care, including emergency care, specialty services, and a full range of diagnostics and treatment provided by board-certified medical staffs. Three Covenant Health hospitals - Fort Sanders Regional, Methodist, and Parkwest Medical Centers - were named among the top 10 hospitals in Tennessee in 2013 by U.S. News and World Report, recognizing excellence in both overall and specialty care. Covenant Health hospitals also have been recognized for clinical accomplishments by VHA, Inc., a cooperative of non-profit healthcare organizations. Form 990, Part III, Line 1 At the Forefront of Local Behavioral Health Care and Community Collaboration Following the closure of Lakeshore Mental Health Institute in 2012, patient volumes at Peninsula, a division of Parkwest Medical Center ("Peninsula") increased significantly. Efforts are made to keep patients in the community in order to provide a better continuum of care. While mental health resources are available in other Tennessee locations, outside transfers make a seamless transition and follow-up care more difficult. Therefore the staff at Peninsula continue to work on internal process improvements to be able to care for more patients. Outpatient treatment follows a 'best practice' model of care whereby new patients get immediate appointments with a nurse, therapist, physician or nurse practitioner. If a patient misses an appointment, it is rescheduled for the same day or the next. Patients have a better chance for success in treatment when there is no lag time. As a result of this approach, outpatient "no show" rates have decreased and outpatient satisfaction rates are in the 90th percentile. Other best practices include involving families or patient support systems in treatment plans and using a computerized call-back scheduling system so that phone calls are returned promptly. Peninsula staff members take a yearly refresher in Therapeutic Crisis Intervention to help behavioral staff recognize and verbally de-escalate situations that could otherwise turn into a crisis. Peninsula also works with police officers to help them recognize symptoms of mental illness among those they encounter as part of their work. Police officers may encounter someone with mental illness as often as once every shift. Peninsula also collaborates with other area mental health organizations and primary care physicians to enhance care and resources for behavioral health patients. The goal is to help people get the mental health services they need, rather than winding up in the Emergency Department, on the streets or in prison. The state of Tennessee provided funds for medications for indigent patients, transportation assistance and other outpatient programs. United Way provided a grant to assist patients transitioning to independent living. In addition to the 155-bed inpatient psychiatric hospital in Blount County, Peninsula also has outpatient facilities in Knox, Blount, Loudon, and Sevier counties. The provision of care may include hospitalization, therapy sessions, visits with psychiatrists, medication management, intensive outpatient programs and support groups. Covenant Health Hospitals Help Families Welcome New Babies More than 6,500 babies were born in a Covenant Health hospital in 2013. The health system offers a variety of birthing options and hospital amenities to help parents and families welcome their newborns. Families come in all shapes and sizes and so do expectations and beliefs about childbirth. Some mothers prefer minimum intervention. Others are comforted that pain relief is available during labor and delivery. Some mothers decide on an obstetrician before planning for their babies. Others choose the hospital first and then choose a qualified physician who delivers at that hospital. Covenant Health hospitals work to provide excellent care and comfort while accommodating patients' preferences for room-in or nursery care after delivery. Maternity suites at Covenant hospitals are spacious, beautifully decorated and designed to maximize comfort and provide immediate access to technology. Room options include private suites equipped with bassinets for rooming in and sleeper furniture for a family member. Some hospitals also have post-partum rooms available. Depending on the hospital, patients may have access to whirlpool tubs or entertainment units. All maternity units are secured with monitored entries and exits. Additional security devices and procedures are in place to monitor babies' safety. Covenant Hospitals Recognized for Reducing Early Elective Deliveries In addition to overall excellence in maternity and newborn care, five Covenant Health hospitals that offer obstetrics services have been recognized by the Tennessee Hospital Association (THA) for reducing the number of babies born electively between 37 and 39 weeks gestation. Fort Sanders Regional, Parkwest, LeConte, Methodist and Morristown-Hamblen medical centers each received recognition from the THA's Tennessee Center for Patient Safety for reducing elective early deliveries, thereby increasing babies' chances for better lifelong health. All five hospitals met the goal of decreasing early elective deliveries to five percent or less, and maintained the goal level for a minimum of six consecutive months. In 2011, about 12 percent of the hospitals' deliveries that occurred prior to 39 weeks gestation were considered elective. By 2014 the number had dropped to less than one percent. The Covenant hospitals are part of a statewide Healthy Tennessee Babies Are Worth the Wait initiative launched less than two years ago to increase awareness of the benefits of full-term delivery. Among other initiatives such as patient and staff education programs, Covenant Health obstetrics departments adopted a strict policy that prohibits early elective deliveries before 39 weeks unless there is a clear medical risk to the mother or the baby. The two-week wait dramatically increases the chances for good physical and developmental health for babies. Babies born too early are at risk for respiratory distress, jaundice, hypoglycemia and other conditions or complications 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 such as the brain, lungs and liver. Waiting is also better for the health and safety of the mother. Covenant Health is proud to lead this effort to decrease the number of infants delivered electively before 39 weeks. Two additional weeks may not seem like much time, but for an infant, it can mean the difference between complications leading to lifelong health issues and a healthy and robust start. Specialized Services for High-Risk Deliveries Specialized services are available in cases of a high-risk pregnancy. When a risk factor, either with the mother or unborn child, threatens a positive outcome it's important to know resources are available to discuss options and answer questions for concerned parents. Covenant Health hospitals plan and prepare for the unexpected with nurses trained in critical newborn care, access to neonatal intensive care services, and perinatologists at the Perinatal Center. At the Perinatal Center, perinatologists work with women of all reproductive ages and backgrounds to help them deliver a healthy baby - or babies. The referring physician, nurses, ultrasonographers, genetic counselors and support staff work together to help mothers during a difficult time and to deliver a healthy baby. Covenant Health has a comprehensive list of more than 50 physicians credentialed to provide care during pregnancy and while in the hospital. In addition, childbirth education classes are available to help parents prepare for their new arrival. Covenant Health Hospitals are Stroke Ready For a patient having a stroke, the care received immediately after it happens is critical. The hospitals of Covenant Health have been deemed "Stroke Ready" by the Healthcare Facilities Accreditation Program. This means Covenant hospitals are qualified to give patients the best initial care at the onset of a stroke. The hospitals of Covenant Health are working together to provide state-of-the-art emergency treatment and the most advanced stroke care in the region. The risk factors for stroke - high blood pressure, smoking, sedentary lifestyle and a Southern diet of deep-fried food - are high in this region. In 2013, Fort Sanders Regional's Comprehensive Stroke Center treated an average of 35-40 strokes per month. Stroke damage is often permanent and speed is vitally important to improving a patients' success at rehabilitation. A decade ago there were no local physicians that could perform procedures inside the arteries of the brain. Today, patients have access to highly qualified doctors and staff, and faster and more specialized procedures and care that significantly increase their chances of recovery. Recognized by The Joint Commission and the American Heart Association/American Stroke Association for its ability to care for stroke patients, Fort Sanders Regional is a referral center for complex stroke cases. In addition to the comprehensive Stroke Center, for patients recovering from the effects of a stroke, the nationally renowned Patricia Neal Rehabilitation Center offers a full spectrum of rehabilitation services. Form 990, Part III, Line 1 Excellence in Orthopedic Care The hospitals of Covenant Health offer comprehensive orthopedic care, including joint replacement surgery and follow-up rehabilitation services. Specialized Joint Replacement Centers are located at Parkwest, Methodist, Fort Sanders Regional and Morristown-Hamblen medical centers. The Joint Centers have teams of experienced orthopedic surgeons, nurses, clinicians and therapists who work together to provide care for hip or knee replacement patients. When patients schedule joint replacement surgery they receive personalized care and a team approach that focuses on creating positive outcomes from the surgery. Covenant Joint Center patients are prepared beforehand, guided through the process step by step, and given extraordinary care afterwards. The first step is an educational program, with an optional tour. Therapy following the surgery helps patients concentrate on developing strength in their new joints and regaining mobility. The Covenant Joint Centers' unique approach emphasizes patient education, family involvement and group support during rehabilitation. The expert team approach combined with a unique healing environment puts patients on the road to recovery faster and with fewer complications. Performing as Promised in Local Communities As a not-for-profit organization governed by a voluntary Board of Directors, Covenant Health reinvests excess revenues after expenses in improving patient care. Since 2000 Covenant Health has invested over $1 billion in facilities, technologies, programs and services. No other health system in East Tennessee in this decade has approached Covenant Health's investment in clinical and medical information technology, and new, renovated and expanded hospitals and services. Despite a challenging economic environment, Covenant Health's financial strength allows it to continue pursuing a strategy of excellence and a commitment to state-of-the-art facilities, medical technology and medical information systems. Achieving Quality Partnerships with Physicians Covenant Health collaborates with physicians to accomplish 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, in committee leadership roles, through joint ventures and in the development of service line strategies. Covenant Medical Group, Inc. (CMG) is the new name for the health system's employed physician practices. Formerly Covenant Medical Management, CMG has grown substantially over the past several years and has more than 140 physicians in more than 70 practice locations. CMG includes both primary care and specialty physicians, with significant growth among specialty physicians. Physicians often struggle with the complexity of running a medical practice in the current healthcare environment. A physician with a solo practice may struggle economically to make that practice work. Many physicians consider employment by hospitals and health systems as an effective way to continue providing medical care in their communities. Physicians who become part of CMG do so for more than just the economic aspect of practicing medicine, and often seek employment of Covenant Health for broader reasons. Physicians who become employed by Covenant Health often decide to do so based on confidence in the health system's leadership team, because of Covenant's strategic direction and performance, and because of the quality of care delivered. Other attributes that influence the decision include the health system's local governance and strong market position and relationships. 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 1500 physicians are affiliated with Covenant Health hospitals and member organizations as active or consulting members of the health system's medical staffs. Overall, Covenant Health's desire for alignment with both employed and non-employed physicians is driven by the need to fully evolve as a healthcare system in today's environment. The health system's goal is to work side by side with physicians to provide a seamless continuum of care and excellent outcomes for patients. Connecting to Meet the Need through Philanthropy Covenant Health's Office of Philanthropy coordinates the philanthropic contributions of individuals and businesses throughout East Tennessee and beyond in support of health care in our region. Fund raising efforts are led by volunteer boards and staff at four foundations: Fort Sanders Foundation (serving the needs of Fort Sanders Regional, Fort Loudoun, Parkwest, Roane, Peninsula, and the Patricia Neal Rehabilitation Center), Methodist Medical Center Foundation, Morristown- Hamblen Hospital Foundation, and Thompson Cancer Survival Center Foundation. The Dr. Robert F. Thomas Foundation is independent from Covenant Health but partners with LeConte to serve the needs of that hospital. During the past year the foundations of Covenant Health received contributions of approximately $3 million from generous individuals and businesses. These donors are partnering with Covenant Health to meet the challenges of providing the best health care possible for the communities served. Funds are used to provide new equipment and facilities at the hospitals, as well as for staff training, pastoral care and patient care programs. Covenant Health strives to go beyond excellent care and to find ways of improving health on all levels - physical, mental and spiritual. Pastoral care is a critical part of healing body, mind and spirit for many of the patients and their families. No patient is ever billed for the support and counseling offered by the hospital chaplains. In the health care environment, chaplains and volunteer spiritual counselors are seen as partners in the healing process, and their services are underwritten by many generous donors. Each year, the Fort Sanders Regional and Parkwest pastoral care departments host the Gammon-Heatherly Lecture Series which provides continuing education to area ministers and other caregivers. The annual event is provided through charitable gifts. The series aims to be thought-provoking and insightful and provides a good networking opportunity with clergy and laypersons from the community. In May 2013 a new Serenity Garden was dedicated at Roane County Medical Center. The garden offers a quiet spot for reflection and respite just outside the hospital's front entrance. It features specially engraved stone pavers recognizing generous community organizations, churches and individuals who supported the campaign for the new hospital and pastoral care services for patients and families. Together with many generous members of our community, the Foundations of Covenant Health are meeting important physical and spiritual needs on the path to improved health for all. Leadership Academy Welcomes Second Group of Participants for "Up Close" Healthcare Experience While the Office of Philanthropy staff coordinates community events and fund raisers, local community leadership and involvement is critical to fund raising success. To expand the number of informed volunteer leaders in the community, the Office of Philanthropy launched a new program, Covenant Answers: A Healthcare Leadership Academy. Inaugural Academy participants included representatives from the boards of Covenant Health, and Fort Sanders and Thompson Cancer Survival Center Foundations. Future Leadership Academy classes will include business and community representatives from throughout Covenant's service area. During a five-month period class members attend half-day sessions at five different Covenant hospitals. Classes include behind-the-scenes tours and hands-on access to the latest technologies and treatments. Participants have opportunities to discuss the challenges of the current healthcare environment with leading Covenant physicians and clinicians, and speak firsthand with patients whose recovery hinges on the excellent care provided at one of the Covenant hospitals. The first group of participants were given the chance to try their hands at using adaptive rehab equipment and maneuvering a surgical robot. Form 990, Part III, Line 1 Reaching Beyond Hospital Walls In addition to taking care of the 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 2013 approximately 7,000 people participated in the 9th anniversary of the Covenant Health Knoxville Marathon, which attracted local runners and hand cyclists, as well as competitors from throughout the U.S. and other countries. * The Covenant Health Biggest Winner Weight Loss Challenge continued as a friendly competition that encourages East Tennesseans to get off the couch and 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. Participants 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 The Patricia Neal Rehabilitation Center's Innovative Recreation 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 over 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, offered with the support of Variety-The Children's Charity. The camp is staffed by health system volunteers and helps children in grades 1-12 express their feelings in a supportive environment. Each year participating children make quilt squares, which are later used to create quilts representing each camp session. In 2013, several quilts were selected for display at the Oak Ridge Children's Museum. * Covenant Health hospitals are partnering with local organizations to perform assessments of health status and to identify the primary health issues affecting our region. Once assessments are complete, the hospitals will be developing local programs and communicating availability of existing services to help address some of these health issues. Community Benefit Report One of the most tangible expressions of the charitable purpose of Covenant Health is providing care to people in need. As a not-for-profit system, Covenant Health provides medically necessary services to people with limited resources. Covenant Health actively participates in the state's TennCare program, and collaborates with other area providers to identify and support efforts to make community healthcare resources available for those in need. Summary of System Community Benefit Totals for Uncompensated Care 2013 Charity Care . . . . . . . . . . . . . . . . . . $48.5 million TennCare* . . . . . . . . . . . . . . . . . . . $40.5 million Medicare* . . . . . . . . . . . . . . . . . . . . $71.1 million Total Uncompensated Care . . . . . . . . . . . $160.1 million Each hospital in the Covenant Health system reports its specific Uncompensated Care on its Form 990. *Care which costs more to provide than reimbursements from state and national programs cover. Covenant Health provides community benefit that far exceeds the value of its tax-exempt status. 2013 Summary of Additional Community Benefit Health Professions Education Continuing education; preparation of future healthcare professionals . $1,558,904 Subsidized Health Services Clinical services provided to meet community needs despite financial loss . . . . . . . . . . . . . . . $18,815,965 Donations, Medical Missions and Community Building Funds and in-kind services donated to the community, including funds to support charitable endeavors and address challenges such as poverty and homelessness, as well as mission trips to areas outside the U.S . $3,438,855 Total Contributions . . . . . . . . . $183,913,724 Form 990, Part VI, Section B, line 11 Covenant Health is a large integrated health system which files twelve Forms 990. LeConte Medical Center is one of these twelve entities. Annually, at the September Finance Committee meeting, one of the twelve 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 eleven 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 twelve 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 2013 Form 990 of Covenant Health, EIN 62-1646734. Part VI, Section B, Line 15b: Base salary and annual bonus opportunities for Ellen Wilhoit, President and Chief Administrative Officer, and Jennifer Hanson, President and CAO as of 10/14/13, 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 for each executive 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, and Patricia Ketterman, Vice President and Chief Nursing Officer, are based on established targets 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. Form 990, Part VI, 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 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 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 Associates of the Meridian Health OP Surgery Ctr LLC 908 W 4th North St Morristown TN 37814 861167487 Outpatient surgery center 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 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 0 1 1 0 1 1 1 1 0