MORRISTOWN HAMBLEN HOSP: Form 990, tax year 2012

View the entire original 990 at ProPublica ↗

Organization: MORRISTOWN HAMBLEN HOSP (EIN 62-0545814)
Tax period: 2012-01-01 to 2012-12-31
Filed: 2013-11-12
IRS object ID: 201303169349303935
Schema version: 2012v2.1
Source: Download XML · Original 990 at ProPublica

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

Return header
Form 990
Schedule A
Schedule B
Schedule D
Schedule H
Schedule I
Schedule J
Schedule L
Schedule O
Schedule R

Return header ReturnHeader

Field	Value	IRS element (for citing)
Timestamp	2013-11-12T12:07:53-06:00	Timestamp
Tax Period End Date	2012-12-31	TaxPeriodEndDate
Return Type	990	ReturnType
Tax Period Begin Date	2012-01-01	TaxPeriodBeginDate

Filer Filer

Field	Value	IRS element (for citing)
EIN	620545814	EIN

Name Name

Field	Value	IRS element (for citing)
Business Name Line1	Morristown-Hamblen Hospital Association	BusinessNameLine1

Field	Value	IRS element (for citing)
Name Control	MORR	NameControl
Phone	8653746864	Phone

US Address USAddress

Field	Value	IRS element (for citing)
Address Line1	1420 Centerpoint Blvd Bldg C	AddressLine1
City	Knoxville	City
State	TN	State
ZIP Code	379321960	ZIPCode

Officer Officer

Field	Value	IRS element (for citing)
Name	JOHN T GEPPI	Name
Title	EVP/CFO	Title
Phone	8653746864	Phone
Date Signed	2013-11-07	DateSigned

Preparer Preparer

Field	Value	IRS element (for citing)
Name	Self prepared	Name

Field	Value	IRS element (for citing)
Tax Year	2012	TaxYear
Build TS	2016-02-24 21:20:13Z	BuildTS

Form 990 IRS990

Doing Business As DoingBusinessAs

Field	Value	IRS element (for citing)
Business Name Line1	Morristown-Hamblen Healthcare System	BusinessNameLine1

Field	Value	IRS element (for citing)
Name Of Principal Officer Person	Anthony L Spezia	NameOfPrincipalOfficerPerson

Address Principal Officer US AddressPrincipalOfficerUS

Field	Value	IRS element (for citing)
Address Line1	100 Ft Sanders W Blvd	AddressLine1
City	Knoxville	City
State	TN	State
ZIP Code	37922	ZIPCode

Field	Value	IRS element (for citing)
Gross Receipts	114274601	GrossReceipts
Group Return For Affiliates	0	GroupReturnForAffiliates
Organization501c3	X	Organization501c3
Web Site	www.mhhs1.org	WebSite
Type Of Organization Corporation	X	TypeOfOrganizationCorporation
Year Formation	1955	YearFormation
State Legal Domicile	TN	StateLegalDomicile
Activity Or Mission Description	MHHS operates a 167-bed hospital in Morristown & provides quality healthcare services to the region.	ActivityOrMissionDescription
Nbr Voting Members Governing Body	22	NbrVotingMembersGoverningBody
Nbr Independent Voting Members	18	NbrIndependentVotingMembers
Total Nbr Employees	937	TotalNbrEmployees
Total Nbr Volunteers	108	TotalNbrVolunteers
Total Gross UBI	411381	TotalGrossUBI
Net Unrelated Business Txbl Income	136394	NetUnrelatedBusinessTxblIncome
Contributions Grants Prior Year	37427	ContributionsGrantsPriorYear
Contributions Grants Current Year	29655	ContributionsGrantsCurrentYear
Program Service Revenue Prior Year	112556375	ProgramServiceRevenuePriorYear
Program Service Revenue CY	112364528	ProgramServiceRevenueCY
Investment Income Prior Year	-243441	InvestmentIncomePriorYear
Investment Income Current Year	2978	InvestmentIncomeCurrentYear
Other Revenue Prior Year	1537943	OtherRevenuePriorYear
Other Revenue Current Year	1797242	OtherRevenueCurrentYear
Total Revenue Prior Year	113888304	TotalRevenuePriorYear
Total Revenue Current Year	114194403	TotalRevenueCurrentYear
Grants And Similar Amnts Prior Year	173590	GrantsAndSimilarAmntsPriorYear
Grants And Similar Amnts CY	78220	GrantsAndSimilarAmntsCY
Benefits Paid To Members Prior Year	0	BenefitsPaidToMembersPriorYear
Benefits Paid To Members CY	0	BenefitsPaidToMembersCY
Salaries Etc Prior Year	40485765	SalariesEtcPriorYear
Salaries Etc Current Year	37156528	SalariesEtcCurrentYear
Total Prof Fundrsng Exp Prior Year	0	TotalProfFundrsngExpPriorYear
Total Prof Fundrsng Exp CY	0	TotalProfFundrsngExpCY
Total Fundrsng Exp Current Year	0	TotalFundrsngExpCurrentYear
Other Expense Prior Year	76117621	OtherExpensePriorYear
Other Expenses Current Year	78555623	OtherExpensesCurrentYear
Total Expenses Prior Year	116776976	TotalExpensesPriorYear
Total Expenses Current Year	115790371	TotalExpensesCurrentYear
Revenues Less Expenses Prior Year	-2888672	RevenuesLessExpensesPriorYear
Revenues Less Expenses CY	-1595968	RevenuesLessExpensesCY
Total Assets BOY	64083055	TotalAssetsBOY
Total Assets EOY	62684571	TotalAssetsEOY
Total Liabilities BOY	19025442	TotalLiabilitiesBOY
Total Liabilities EOY	15819522	TotalLiabilitiesEOY
Net Assets Or Fund Balances BOY	45057613	NetAssetsOrFundBalancesBOY
Net Assets Or Fund Balances EOY	46865049	NetAssetsOrFundBalancesEOY
Info In Schedule O Part III	X	InfoInScheduleOPartIII
Mission Description	See Schedule O.Morristown-Hamblen Hospital Association provides quality healthcare, in alignment with Covenant Health's mission to serve the community by improving the quality of life through better health, regardless of the patient's ability to pay.	MissionDescription
Significant New Program Services	0	SignificantNewProgramServices
Significant Change	0	SignificantChange
Expense	12473023	Expense
Revenue	11767911	Revenue
Description	Orthopedic Services: See Schedule O.Orthopedic Services: Expenses - $12,473,024; Revenue - $11,767,911Morristown-Hamblen Hospital Association board-certified orthopedic surgeons are skilled in diagnosing and treating bone, muscle and joint disorders. Specialty areas include total hip and knee replacement, spinal surgeries, fractures, complex rotator cuff/shoulder repairs and hand reconstruction. The hospital treated 1,489 orthopedic surgery patients in 2012. Using a series of best practice guidelines and standard orders, the staff treats patients efficiently and provides the best opportunity for optimal outcomes.Intense rehabilitation begins after surgery in a group setting as a way of maximizing the patient's chance for a full recovery. The therapy staff specializes in treating a variety of orthopedic, neurologic, and medical problems, with an emphasis on helping individuals overcome disability caused by injury, developmental abnormality, or amputation. The physical therapy staff at Morristown-Hamblen Healthcare System provides care for orthopedic, neurologic, and medical rehabilitation of individuals with neck, lower back, arm and leg injuries; sports and overuse injuries, arthritis, stroke, brain injury, and post-amputation needs. Specialty programs include sports medicine, and wound care.	Description

Activity2 Activity2

Field	Value	IRS element (for citing)
Expense	9133748	Expense
Revenue	10493936	Revenue
Description	Cardiovascular Services: See Schedule O.Cardiovascular Services: Expenses - $9,133,748; Revenue - $10,493,936Morristown-Hamblen Hospital Association offers a complete continuum of cardiovascular care including prevention and public education; diagnostic and interventional procedures; and rehabilitative services. During 2012, the program participated in three (3) community health fairs providing basic screenings and education to the residents of an eight-county service area. Cardiology provided 20,533 diagnostic exams to both in-patient and out-patient populations. Tests included EKG's, echocardiograms, exercise stress, nuclear stress and Holter monitoring. Approximately 833 diagnostic cardiac catherizations and 366 cardiac interventions were performed utilizing the latest technology in angioplasty, drug eluting stents and closure devices. Approximately 438 peripheral vascular procedures were performed in our two state-of-the-art angioplasty suites. Cardiopulmonary Rehab provided 2,500 Phase II sessions and 4,768 Phase III rehabilitation sessions.The overall objective of the Cardiovascular service line is to provide excellent patient care and educational/preventative services to our eight-county service area. Growth is anticipated in the Cardiac Rehab Program by adding Phase I educational services and participating in the Congestive Heart Failure Re-Admission Initiative.	Description

Activity3 Activity3

Field	Value	IRS element (for citing)
Expense	8794494	Expense
Revenue	8625344	Revenue
Description	Surgical Services: See Schedule O.Surgical Services: Expenses - $8,794,494; Revenue - $8,625,344In 2012, surgeons at Morristown-Hamblen Hospital Association performed procedures on 6,755 patients in several surgical specialty areas. Under the clinical leadership of a board-certified Chairman of the Department of Surgery, the surgery staff is committed to restoring quality of life to the fullest extent possible. The focus in the surgical area is to reduce the risk of wound infection after surgery. This is achieved primarily by making sure patients get the right medication at the right time on the day of surgery. Success in preventing infection is evaluated by core measures which are compared to national and state averages.	Description

Activity Other ActivityOther

Field	Value	IRS element (for citing)
Expense	82919342	Expense
Grants	78220	Grants
Revenue	82401633	Revenue
Description	As a full-service acute care hospital, Morristown-Hamblen Hospital Association features 24-hour emergency care, diagnostic imaging services, a dedicated women's center and four hospital-owned OB/GYN practices, three family care clinics for treatment of non-emergent conditions, and the Morristown Regional Cancer Center, as well as a host of other specialty medical services.	Description

Field	Value	IRS element (for citing)
Total Of Other Program Service Exp	82919342	TotalOfOtherProgramServiceExp
Total Of Other Program Service Grnt	78220	TotalOfOtherProgramServiceGrnt
Total Of Other Program Service Rev	82401633	TotalOfOtherProgramServiceRev
Total Program Service Expense	113320607	TotalProgramServiceExpense
Described In501 C3	1	DescribedIn501C3
Schedule B Required	1	ScheduleBRequired
Political Activities	0	PoliticalActivities
Lobbying Activities	0	LobbyingActivities
Subject To Proxy Tax	0	SubjectToProxyTax
Donor Advised Funds	0	DonorAdvisedFunds
Conservation Easements	0	ConservationEasements
Collections Of Art	0	CollectionsOfArt
Credit Counseling	0	CreditCounseling
Term Or Permanent Endowments	0	TermOrPermanentEndowments
Report Land Bldg Equip	1	ReportLandBldgEquip
Report Invest Oth Securities	0	ReportInvestOthSecurities
Report Prog Rel Invest	0	ReportProgRelInvest
Report Other Assets	0	ReportOtherAssets
Report Other Liabilities	1	ReportOtherLiabilities
Report Fin48 Footnote	1	ReportFin48Footnote
Independent Audit Financial Stmt	0	IndependentAuditFinancialStmt
Consolidated Audit Financial Stmt	1	ConsolidatedAuditFinancialStmt
School	0	School
Foreign Office	0	ForeignOffice
Foreign Activities	0	ForeignActivities
More Than5000 K To Organizations	0	MoreThan5000KToOrganizations
More Than5000 K To Individuals	0	MoreThan5000KToIndividuals
Professional Fundraising	0	ProfessionalFundraising
Fundraising Activities	0	FundraisingActivities
Gaming	0	Gaming
Hospital	1	Hospital
Financial Stmt Attached	1	FinancialStmtAttached
Grants To Organizations	1	GrantsToOrganizations
Grants To Individuals	0	GrantsToIndividuals
Schedule J Required	1	ScheduleJRequired
Tax Exempt Bonds	0	TaxExemptBonds
Excess Benefit Transaction	0	ExcessBenefitTransaction
Prior Excess Benefit Transaction	0	PriorExcessBenefitTransaction
Loan To Officer Or DQP	0	LoanToOfficerOrDQP
Grant To Related Person	0	GrantToRelatedPerson
Bsnss Rltnshp With Organization	0	BsnssRltnshpWithOrganization
Bsnss Rltnshp Thru Family Member	0	BsnssRltnshpThruFamilyMember
Officer Entity With Bsnss Rltnshp	1	OfficerEntityWithBsnssRltnshp
Deductible Non Cash Contributions	0	DeductibleNonCashContributions
Deductible Contributions Of Art	0	DeductibleContributionsOfArt
Terminated	0	Terminated
Partial Liquidation	0	PartialLiquidation
Disregarded Entity	0	DisregardedEntity
Related Entity	1	RelatedEntity
Related Org Controlled Entity	1	RelatedOrgControlledEntity
Transaction Related Entity	1	TransactionRelatedEntity
Transfers To Exempt Non Chrtbl Org	0	TransfersToExemptNonChrtblOrg
Activities Conducted Partnership	0	ActivitiesConductedPartnership
Schedule O Required	1	ScheduleORequired
Number Forms Transmitted With1096	245	NumberFormsTransmittedWith1096
Number W2 G Included	0	NumberW2GIncluded
Compliance With Backup Witholding	1	ComplianceWithBackupWitholding
Number Of Employees	937	NumberOfEmployees
Employment Tax Returns Filed	1	EmploymentTaxReturnsFiled
Unrelated Business Income	1	UnrelatedBusinessIncome
Form990-T Filed	1	Form990-TFiled
Foreign Financial Account	0	ForeignFinancialAccount
Prohibited Tax Shelter Trans	0	ProhibitedTaxShelterTrans
Taxable Party Notification	0	TaxablePartyNotification
Non Deductible Contributions	0	NonDeductibleContributions
Quid Pro Quo Contributions	0	QuidProQuoContributions
Form8282 Property Disposed Of	0	Form8282PropertyDisposedOf
Funds To Pay Premiums	0	FundsToPayPremiums
Premiums Paid	0	PremiumsPaid
Indoor Tanning Services	0	IndoorTanningServices
Info In Schedule O Part VI	X	InfoInScheduleOPartVI
Nbr Voting Governing Body Members	22	NbrVotingGoverningBodyMembers
Number Independent Voting Members	18	NumberIndependentVotingMembers
Family Or Business Relationship	0	FamilyOrBusinessRelationship
Delegation Of Management Duties	0	DelegationOfManagementDuties
Changes To Organizing Docs	0	ChangesToOrganizingDocs
Material Diversion Or Misuse	0	MaterialDiversionOrMisuse
Members Or Stockholders	0	MembersOrStockholders
Election Of Board Members	0	ElectionOfBoardMembers
Decisions Subject To Approval	0	DecisionsSubjectToApproval
Minutes Of Governing Body	1	MinutesOfGoverningBody
Minutes Of Committees	1	MinutesOfCommittees
Officer Mailing Address	1	OfficerMailingAddress
Local Chapters	0	LocalChapters
Form990 Provided To Governing Body	1	Form990ProvidedToGoverningBody
Conflict Of Interest Policy	1	ConflictOfInterestPolicy
Annual Disclosure Covered Persons	1	AnnualDisclosureCoveredPersons
Regular Monitoring Enforcement	1	RegularMonitoringEnforcement
Whistleblower Policy	1	WhistleblowerPolicy
Document Retention Policy	1	DocumentRetentionPolicy
Compensation Process CEO	1	CompensationProcessCEO
Compensation Process Other	1	CompensationProcessOther
Investment In Joint Venture	0	InvestmentInJointVenture
Other Website	X	OtherWebsite
Upon Request	X	UponRequest

The Books Are In Care Of TheBooksAreInCareOf

Field	Value	IRS element (for citing)
Name Person	Nancy Beck	NamePerson
Telephone Number	8653746864	TelephoneNumber

Address US AddressUS

Field	Value	IRS element (for citing)
Address Line1	1420 Centerpoint Blvd Bldg C	AddressLine1
City	Knoxville	City
State	TN	State
ZIP Code	379321960	ZIPCode

Form990 Part VII Section A Form990PartVIISectionA (34 entries)

TitleTitle	Average Hours Per WeekAverageHoursPerWeek	Average Hours Per Week RelatedAverageHoursPerWeekRelated	Individual Trustee Or DirectorIndividualTrusteeOrDirector	OfficerOfficer	Reportable Comp From OrganizationReportableCompFromOrganization	Reportable Comp From Related OrgsReportableCompFromRelatedOrgs	Other CompensationOtherCompensation	Key EmployeeKeyEmployee	Highest Compensated EmployeeHighestCompensatedEmployee	FormerFormer
Anthony L Spezia
President & CEO	0.00	50.00	X	X	0	1526847	230374
Gerald Boyd
Director	0.00	1.00	X		0	679	0
Dr Richard Brinner
Director	0.00	1.00	X		0	1291	0
Dr Mitchell Dickson
Director	0.00	1.00	X		0	1914	0
Pamela P Fansler
Director	0.00	1.00	X		0	0	0
James Fitzsimmons
Director	0.00	1.00	X		0	1742	0
Kimberly Greene
Director	0.00	1.00	X		0	937	0
Wayne Heatherly
Director	0.00	1.00	X		0	752	0
Jim Johnson Jr
Director	0.00	1.00	X		0	1642	0
Karla Lane
Director	0.00	1.00	X		0	924	0
Eddie Mannis
Director	0.00	1.00	X		0	0	0
Larry Mauldin
Chairman	0.00	1.00	X		0	834	0
Dr Joseph Metcalf
Director	0.00	3.00	X		0	15603	0
George Miller
Director	0.00	1.00	X		0	978	0
Alvin Nance
Director	0.00	1.00	X		0	966	0
Linda Ogle
Director	0.00	1.00	X		0	0	0
Mitchell Steenrod
Director	0.00	1.00	X		0	805	0
Carl Storms
Director	0.00	1.00	X		0	1641	0
Joseph E Sutter
Director	0.00	1.00	X		0	1313	0
Richard Swanson
Director	0.00	1.00	X		0	0	0
Joe Ben Turner
Director	0.00	1.00	X		0	783	0
David C Verble
Director	0.00	1.00	X		0	958	0
John T Geppi
EVP/CFO	0.00	50.00		X	0	673095	27138
Jacqueline H Hounshell
VP - Financial Services	40.00	0.00		X	98237	0	19518
Gordon E Lintz
President & CAO	25.00	25.00		X	0	308323	19145
Jeremy Biggs
Interim CAO	25.00	25.00		X	0	194763	27058
Dedra C Whitaker
VP-Chief Nursing Officer	50.00	0.00			177222	0	24044	X
Peter Clark MD
Physician	50.00	0.00			600808	0	23690		X
Billy Black MD
Physician	40.00	0.00			289836	0	26572		X
Frank Ellis MD
Physician	50.00	0.00			330460	0	31278		X
Jason Cox MD
Physician/ Hospitalist	50.00	0.00			274688	0	18733		X
Jill B Robinson MD
Physician	40.00	0.00			276085	0	16417		X
Richard L Clark
Former President & CAO	0.00	0.00			0	273826	9800			X
Maxwell Owens
Former VP-Financial Servs.	0.00	0.00			167608	0	0			X

Field	Value	IRS element (for citing)
Total Reportable Comp From Org	2214944	TotalReportableCompFromOrg
Total Reportable Comp Frm Rltd Orgs	3010616	TotalReportableCompFrmRltdOrgs
Total Other Compensation	473767	TotalOtherCompensation
Number Individuals GT100 K	23	NumberIndividualsGT100K
Formers Listed	1	FormersListed
Total Comp GT150 K	1	TotalCompGT150K
Compensation From Other Sources	0	CompensationFromOtherSources

Contractor Compensation ContractorCompensation (5 entries)

Address Line1AddressOfContractor/AddressUS/AddressLine1	CityAddressOfContractor/AddressUS/City	StateAddressOfContractor/AddressUS/State	ZIP CodeAddressOfContractor/AddressUS/ZIPCode	Description Of ServicesDescriptionOfServices	CompensationCompensation
Aramark Healthcare
10510 Twin Lakes Parkway	Charlotte	NC	282697658	Clinical Engineering & Technology	1857890
Sodexo Inc and Affiliates
PO Box 536922	Atlanta	GA	303536922	Cafeteria Management	789505
Medic Regional Blood Center
1601 Ailor Avenue	Knoxville	TN	37921	Blood Processing	585707
Angelica Textile Services
PO Box 535122	Atlanta	GA	303535122	Linen Service	515310
Relay Health
5995 Windward Parkway	Alpharetta	GA	30005	Software Maint. Contracts	292113

Field	Value	IRS element (for citing)
Number Of Contractors GT100 K	16	NumberOfContractorsGT100K
Related Organizations	755	RelatedOrganizations
Government Grants	28900	GovernmentGrants
Noncash Contributions	755	NoncashContributions
Total Contributions	29655	TotalContributions

Program Service Revenue ProgramServiceRevenue (3 entries)

DescriptionDescription	Business CodeBusinessCode	Total Revenue ColumnTotalRevenueColumn	Related Or Exempt Function IncomeRelatedOrExemptFunctionIncome	Unrelated Business RevenueUnrelatedBusinessRevenue
Medical Services	622110	111438591	111438591
Rental Inc - Affiliate	531120	514556	514556
Laboratory	621500	411381		411381

Field	Value	IRS element (for citing)
Total Program Service Revenue	112364528	TotalProgramServiceRevenue

Investment Income InvestmentIncome

Field	Value	IRS element (for citing)
Total Revenue Column	2560	TotalRevenueColumn
Exclusion	$2,560	ExclusionAmount

Gross Rents GrossRents

Field	Value	IRS element (for citing)
Real	111856	Real

Less Rental Expenses LessRentalExpenses

Field	Value	IRS element (for citing)
Real	39578	Real

Rental Income Or Loss RentalIncomeOrLoss

Field	Value	IRS element (for citing)
Real	72278	Real

Net Rental Income Or Loss NetRentalIncomeOrLoss

Field	Value	IRS element (for citing)
Total Revenue Column	72278	TotalRevenueColumn
Exclusion	$72,278	ExclusionAmount

Gross Amount Sales Assets GrossAmountSalesAssets

Field	Value	IRS element (for citing)
Other	41038	Other

Less Cost Oth Basis Sales Expenses LessCostOthBasisSalesExpenses

Field	Value	IRS element (for citing)
Other	40620	Other

Gain Or Loss GainOrLoss

Field	Value	IRS element (for citing)
Other	418	Other

Net Gain Or Loss Investments NetGainOrLossInvestments

Field	Value	IRS element (for citing)
Total Revenue Column	418	TotalRevenueColumn
Exclusion	$418	ExclusionAmount

Other Revenue Misc OtherRevenueMisc (3 entries)

DescriptionDescription	Business CodeBusinessCode	Total Revenue ColumnTotalRevenueColumn	Related Or Exempt Function IncomeRelatedOrExemptFunctionIncome	ExclusionExclusionAmount
Cancer Center Investment	621400	1115684	1115684
Management Fees	531310	169587		$169,587
Services to Affiliates	900099	95887	95887

Miscellaneous Revenue MiscellaneousRevenue

Field	Value	IRS element (for citing)
Total Revenue Column	343806	TotalRevenueColumn
Related Or Exempt Function Income	124106	RelatedOrExemptFunctionIncome
Exclusion	$219,700	ExclusionAmount

Field	Value	IRS element (for citing)
Total Other Revenue	1724964	TotalOtherRevenue

Total Revenue TotalRevenue

Field	Value	IRS element (for citing)
Total Revenue Column	114194403	TotalRevenueColumn
Related Or Exempt Function Income	113288824	RelatedOrExemptFunctionIncome
Unrelated Business Revenue	411381	UnrelatedBusinessRevenue
Exclusion	$464,543	ExclusionAmount

Grants To Domestic Orgs GrantsToDomesticOrgs

Field	Value	IRS element (for citing)
Total	78220	Total
Program Services	78220	ProgramServices

Comp Current Officers Directors CompCurrentOfficersDirectors

Field	Value	IRS element (for citing)
Total	486628	Total
Management And General	486628	ManagementAndGeneral

Other Salaries And Wages OtherSalariesAndWages

Field	Value	IRS element (for citing)
Total	30246989	Total
Program Services	29636799	ProgramServices
Management And General	610190	ManagementAndGeneral

Pension Plan Contributions PensionPlanContributions

Field	Value	IRS element (for citing)
Total	537656	Total
Program Services	493415	ProgramServices
Management And General	44241	ManagementAndGeneral

Other Employee Benefits OtherEmployeeBenefits

Field	Value	IRS element (for citing)
Total	3864455	Total
Program Services	3589964	ProgramServices
Management And General	274491	ManagementAndGeneral

Payroll Taxes PayrollTaxes

Field	Value	IRS element (for citing)
Total	2020800	Total
Program Services	1815407	ProgramServices
Management And General	205393	ManagementAndGeneral

Fees For Services Management FeesForServicesManagement

Field	Value	IRS element (for citing)
Total	6199477	Total
Program Services	6059296	ProgramServices
Management And General	140181	ManagementAndGeneral

Fees For Services Legal FeesForServicesLegal

Field	Value	IRS element (for citing)
Total	81869	Total
Management And General	81869	ManagementAndGeneral

Fees For Services Accounting FeesForServicesAccounting

Field	Value	IRS element (for citing)
Total	18000	Total
Management And General	18000	ManagementAndGeneral

Fees For Services Other FeesForServicesOther

Field	Value	IRS element (for citing)
Total	7067104	Total
Program Services	7023430	ProgramServices
Management And General	43674	ManagementAndGeneral

Advertising Advertising

Field	Value	IRS element (for citing)
Total	287345	Total
Program Services	258253	ProgramServices
Management And General	29092	ManagementAndGeneral

Office Expenses OfficeExpenses

Field	Value	IRS element (for citing)
Total	4283366	Total
Program Services	4035033	ProgramServices
Management And General	248333	ManagementAndGeneral

Occupancy Occupancy

Field	Value	IRS element (for citing)
Total	1971869	Total
Program Services	1884555	ProgramServices
Management And General	87314	ManagementAndGeneral

Travel Travel

Field	Value	IRS element (for citing)
Total	46082	Total
Program Services	37539	ProgramServices
Management And General	8543	ManagementAndGeneral

Conferences Meetings ConferencesMeetings

Field	Value	IRS element (for citing)
Total	54400	Total
Program Services	43374	ProgramServices
Management And General	11026	ManagementAndGeneral

Interest Interest

Field	Value	IRS element (for citing)
Total	77992	Total
Program Services	77992	ProgramServices

Depreciation Depletion DepreciationDepletion

Field	Value	IRS element (for citing)
Total	6167031	Total
Program Services	6167031	ProgramServices

Insurance Insurance

Field	Value	IRS element (for citing)
Total	295505	Total
Program Services	292738	ProgramServices
Management And General	2767	ManagementAndGeneral

Other Expenses OtherExpenses (4 entries)

DescriptionDescription	TotalTotal	Management And GeneralManagementAndGeneral	Program ServicesProgramServices
Unrelated Business Inco	62147	62147
Supplies & Equipment	20752879	2263	20750616
Bad Debt Expense	17696040		17696040
Charity Care	12707141		12707141

All Other Expenses AllOtherExpenses

Field	Value	IRS element (for citing)
Total	787376	Total
Program Services	673764	ProgramServices
Management And General	113612	ManagementAndGeneral

Total Functional Expenses TotalFunctionalExpenses

Field	Value	IRS element (for citing)
Total	115790371	Total
Program Services	113320607	ProgramServices
Management And General	2469764	ManagementAndGeneral
Fundraising	0	Fundraising

Cash Non Interest Bearing CashNonInterestBearing

Field	Value	IRS element (for citing)
BOY	2452	BOY
EOY	2349	EOY

Savings And Temp Cash Investments SavingsAndTempCashInvestments

Field	Value	IRS element (for citing)
BOY	696223	BOY
EOY	301096	EOY

Accounts Receivable AccountsReceivable

Field	Value	IRS element (for citing)
BOY	12899585	BOY
EOY	8246780	EOY

Receivables From Officers Etc ReceivablesFromOfficersEtc

Field	Value	IRS element (for citing)
BOY	3846	BOY
EOY	0	EOY

Inventories For Sale Or Use InventoriesForSaleOrUse

Field	Value	IRS element (for citing)
BOY	1784436	BOY
EOY	1656618	EOY

Prepaid Expenses Deferred Charges PrepaidExpensesDeferredCharges

Field	Value	IRS element (for citing)
BOY	738196	BOY
EOY	609450	EOY

Field	Value	IRS element (for citing)
Land Buildings Equipment Basis	95922428	LandBuildingsEquipmentBasis
Land Bldg Equipment Accum Deprec	55907415	LandBldgEquipmentAccumDeprec

Land Buildings Equipment Basis Net LandBuildingsEquipmentBasisNet

Field	Value	IRS element (for citing)
BOY	40723866	BOY
EOY	40015013	EOY

Investments Program Related InvestmentsProgramRelated

Field	Value	IRS element (for citing)
BOY	2956316	BOY
EOY	1347000	EOY

Intangible Assets IntangibleAssets

Field	Value	IRS element (for citing)
BOY	3505000	BOY
EOY	8819138	EOY

Other Assets Total OtherAssetsTotal

Field	Value	IRS element (for citing)
BOY	773135	BOY
EOY	1687127	EOY

Total Assets TotalAssets

Field	Value	IRS element (for citing)
BOY	64083055	BOY
EOY	62684571	EOY

Accounts Payable Accrued Expenses AccountsPayableAccruedExpenses

Field	Value	IRS element (for citing)
BOY	12007841	BOY
EOY	11484664	EOY

Deferred Revenue DeferredRevenue

Field	Value	IRS element (for citing)
BOY	1000	BOY
EOY	0	EOY

Mort Notes Pybl Secured Invest Prop MortNotesPyblSecuredInvestProp

Field	Value	IRS element (for citing)
BOY	4330858	BOY
EOY	4096556	EOY

Other Liabilities OtherLiabilities

Field	Value	IRS element (for citing)
BOY	2685743	BOY
EOY	238302	EOY

Total Liabilities TotalLiabilities

Field	Value	IRS element (for citing)
BOY	19025442	BOY
EOY	15819522	EOY

Field	Value	IRS element (for citing)
Follow SFAS117	X	FollowSFAS117

Unrestricted Net Assets UnrestrictedNetAssets

Field	Value	IRS element (for citing)
BOY	45057613	BOY
EOY	46865049	EOY

Total Net Assets Fund Balances TotalNetAssetsFundBalances

Field	Value	IRS element (for citing)
BOY	45057613	BOY
EOY	46865049	EOY

Total Liab Net Assets Fund Balances TotalLiabNetAssetsFundBalances

Field	Value	IRS element (for citing)
BOY	64083055	BOY
EOY	62684571	EOY

Field	Value	IRS element (for citing)
Info In Schedule O Part XI	X	InfoInScheduleOPartXI
Reconcilation Revenue Expenses	-1595968	ReconcilationRevenueExpenses
Reconcilation Other Changes	3403404	ReconcilationOtherChanges
Info In Schedule O Part XII	X	InfoInScheduleOPartXII
Method Of Accounting Accrual	X	MethodOfAccountingAccrual
Accountant Compile Or Review	0	AccountantCompileOrReview
FS Audited	1	FSAudited

FS Audited Basis FSAuditedBasis

Field	Value	IRS element (for citing)
Financial Statement Consolidated	X	FinancialStatementConsolidated

Field	Value	IRS element (for citing)
Audit Committee	1	AuditCommittee
Federal Grant Audit Required	0	FederalGrantAuditRequired

Schedule A IRS990ScheduleA

Field	Value	IRS element (for citing)
Hospital170b1 Aiii	X	Hospital170b1Aiii

Schedule B IRS990ScheduleB

Contributor Info ContributorInfo

Field	Value	IRS element (for citing)
Contributor Number	RESTRICTED	ContributorNumber

Contributor Name Business ContributorNameBusiness

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

Contributor Address US ContributorAddressUS

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

Field	Value	IRS element (for citing)
Aggregate Contributions	RESTRICTED	AggregateContributions

Schedule D IRS990ScheduleD

Land Land

Field	Value	IRS element (for citing)
Other Cost Or Other Basis	636011	OtherCostOrOtherBasis
Book Value	636011	BookValue

Buildings Buildings

Field	Value	IRS element (for citing)
Other Cost Or Other Basis	41260993	OtherCostOrOtherBasis
Depreciation	21073781	Depreciation
Book Value	20187212	BookValue

Equipment Equipment

Field	Value	IRS element (for citing)
Other Cost Or Other Basis	53218148	OtherCostOrOtherBasis
Depreciation	34559313	Depreciation
Book Value	18658835	BookValue

Other Land Buildings OtherLandBuildings

Field	Value	IRS element (for citing)
Other Cost Or Other Basis	807276	OtherCostOrOtherBasis
Depreciation	274321	Depreciation
Book Value	532955	BookValue

Field	Value	IRS element (for citing)
Total Of Book Value Land Buildings	40015013	TotalOfBookValueLandBuildings

Other Liabilities OtherLiabilities (3 entries)

DescriptionDescription	AmountAmount
Capital Lease Disc - Premium	-$6,205
Due to Third Party Payors	$207,619
Long-term Deferred Compensation	$36,888

Field	Value	IRS element (for citing)
Total Of Amounts	238302	TotalOfAmounts
Footnote In Part XIII	X	FootnoteInPartXIII

Form990 Schedule D Part XIII Form990ScheduleDPartXIII

Field	Value	IRS element (for citing)
Identifier	Description of Uncertain Tax Positions Under FIN 48:	Identifier
Return Reference	Part X, Line 2:	ReturnReference
Explanation	Note B to the consolidated audited financial statements of Covenant Health, parent company of Morristown-Hamblen Hospital Association, reads in part: "Income Taxes: Covenant and certain of its subsidiaries or controlled entities are exempt from income taxes pursuant to Section 501(c)(3) of the Internal Revenue Code. Accordingly, no provision for income taxes on qualifying activities has been made for these entities in the accompanying consolidated financial statements. However, certain entities and operations are subject to income taxes 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, 2012 and 2011. As such, no interest or penalties were recognized in the Consolidated Statements of Operations related to unrecognized tax benefits. At December 31, 2012, tax returns for 2009 through 2012 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, 2012 or 2011."	Explanation

Schedule H IRS990ScheduleH

Field	Value	IRS element (for citing)
Charity Care Policy	1	CharityCarePolicy
Written Policy	1	WrittenPolicy
Policy Applied To All Hospitals	X	PolicyAppliedToAllHospitals
FPG Reference Free Care	1	FPGReferenceFreeCare
Pcent200	X	Pcent200
FPG Reference Discounted Care	1	FPGReferenceDiscountedCare
Pcent300	X	Pcent300
Free Disc Care Medically Indigent	1	FreeDiscCareMedicallyIndigent
Amounts Budgeted For Charity Care	1	AmountsBudgetedForCharityCare
Expenses Exceeded Budget	0	ExpensesExceededBudget
Annual Community Benefit Report	1	AnnualCommunityBenefitReport
Report Publically Available	1	ReportPublicallyAvailable

Charity Care At Cost CharityCareAtCost

Field	Value	IRS element (for citing)
Total Community Benefit Expense	7914896	TotalCommunityBenefitExpense
Direct Offsetting Revenue	1910783	DirectOffsettingRevenue
Net Community Benefit Expense	6004113	NetCommunityBenefitExpense
Percent Of Total Expense	0.06170	PercentOfTotalExpense

Unreimbursed Medicaid UnreimbursedMedicaid

Field	Value	IRS element (for citing)
Total Community Benefit Expense	22506211	TotalCommunityBenefitExpense
Direct Offsetting Revenue	16657340	DirectOffsettingRevenue
Net Community Benefit Expense	5848871	NetCommunityBenefitExpense
Percent Of Total Expense	0.06010	PercentOfTotalExpense

Unreimbursed Costs UnreimbursedCosts

Field	Value	IRS element (for citing)
Total Community Benefit Expense	476	TotalCommunityBenefitExpense
Direct Offsetting Revenue	0	DirectOffsettingRevenue
Net Community Benefit Expense	476	NetCommunityBenefitExpense
Percent Of Total Expense	0.00000	PercentOfTotalExpense

Total Charity Care TotalCharityCare

Field	Value	IRS element (for citing)
Total Community Benefit Expense	30421583	TotalCommunityBenefitExpense
Direct Offsetting Revenue	18568123	DirectOffsettingRevenue
Net Community Benefit Expense	11853460	NetCommunityBenefitExpense
Percent Of Total Expense	0.12180	PercentOfTotalExpense

Community Health Services CommunityHealthServices

Field	Value	IRS element (for citing)
Total Community Benefit Expense	38252	TotalCommunityBenefitExpense
Direct Offsetting Revenue	4927	DirectOffsettingRevenue
Net Community Benefit Expense	33325	NetCommunityBenefitExpense
Percent Of Total Expense	0.00030	PercentOfTotalExpense

Health Professions Education HealthProfessionsEducation

Field	Value	IRS element (for citing)
Total Community Benefit Expense	7566	TotalCommunityBenefitExpense
Direct Offsetting Revenue	0	DirectOffsettingRevenue
Net Community Benefit Expense	7566	NetCommunityBenefitExpense
Percent Of Total Expense	0.00010	PercentOfTotalExpense

Subsidized Health Services SubsidizedHealthServices

Field	Value	IRS element (for citing)
Total Community Benefit Expense	1952743	TotalCommunityBenefitExpense
Direct Offsetting Revenue	1301447	DirectOffsettingRevenue
Net Community Benefit Expense	651296	NetCommunityBenefitExpense
Percent Of Total Expense	0.00670	PercentOfTotalExpense

Research Research

Field	Value	IRS element (for citing)
Total Community Benefit Expense	0	TotalCommunityBenefitExpense
Direct Offsetting Revenue	0	DirectOffsettingRevenue

Cash And In Kind Contributions CashAndInKindContributions

Field	Value	IRS element (for citing)
Total Community Benefit Expense	43199	TotalCommunityBenefitExpense
Direct Offsetting Revenue	0	DirectOffsettingRevenue
Net Community Benefit Expense	43199	NetCommunityBenefitExpense
Percent Of Total Expense	0.00040	PercentOfTotalExpense

Total Other Benefits TotalOtherBenefits

Field	Value	IRS element (for citing)
Total Community Benefit Expense	2041760	TotalCommunityBenefitExpense
Direct Offsetting Revenue	1306374	DirectOffsettingRevenue
Net Community Benefit Expense	735386	NetCommunityBenefitExpense
Percent Of Total Expense	0.00750	PercentOfTotalExpense

Total Community Benefits TotalCommunityBenefits

Field	Value	IRS element (for citing)
Total Community Benefit Expense	32463343	TotalCommunityBenefitExpense
Direct Offsetting Revenue	19874497	DirectOffsettingRevenue
Net Community Benefit Expense	12588846	NetCommunityBenefitExpense
Percent Of Total Expense	0.12930	PercentOfTotalExpense

Physical Improvements And Housing PhysicalImprovementsAndHousing

Field	Value	IRS element (for citing)
Total Community Building Expense	8495	TotalCommunityBuildingExpense
Direct Offsetting Revenue	0	DirectOffsettingRevenue
Net Community Building Expense	8495	NetCommunityBuildingExpense
Percent Of Total Expense	0.00010	PercentOfTotalExpense

Economic Development EconomicDevelopment

Field	Value	IRS element (for citing)
Total Community Building Expense	11861	TotalCommunityBuildingExpense
Direct Offsetting Revenue	0	DirectOffsettingRevenue
Net Community Building Expense	11861	NetCommunityBuildingExpense
Percent Of Total Expense	0.00010	PercentOfTotalExpense

Community Support CommunitySupport

Field	Value	IRS element (for citing)
Total Community Building Expense	16959	TotalCommunityBuildingExpense
Direct Offsetting Revenue	0	DirectOffsettingRevenue
Net Community Building Expense	16959	NetCommunityBuildingExpense
Percent Of Total Expense	0.00020	PercentOfTotalExpense

Environmental Improvements EnvironmentalImprovements

Field	Value	IRS element (for citing)
Total Community Building Expense	0	TotalCommunityBuildingExpense
Direct Offsetting Revenue	0	DirectOffsettingRevenue

Leadership Development LeadershipDevelopment

Field	Value	IRS element (for citing)
Total Community Building Expense	456	TotalCommunityBuildingExpense
Direct Offsetting Revenue	0	DirectOffsettingRevenue
Net Community Building Expense	456	NetCommunityBuildingExpense
Percent Of Total Expense	0.00000	PercentOfTotalExpense

Coalition Building CoalitionBuilding

Field	Value	IRS element (for citing)
Total Community Building Expense	0	TotalCommunityBuildingExpense
Direct Offsetting Revenue	0	DirectOffsettingRevenue

Health Improvement Advocacy HealthImprovementAdvocacy

Field	Value	IRS element (for citing)
Total Community Building Expense	2632	TotalCommunityBuildingExpense
Direct Offsetting Revenue	0	DirectOffsettingRevenue
Net Community Building Expense	2632	NetCommunityBuildingExpense
Percent Of Total Expense	0.00000	PercentOfTotalExpense

Workforce Development WorkforceDevelopment

Field	Value	IRS element (for citing)
Total Community Building Expense	0	TotalCommunityBuildingExpense
Direct Offsetting Revenue	0	DirectOffsettingRevenue

Other Other

Field	Value	IRS element (for citing)
Total Community Building Expense	0	TotalCommunityBuildingExpense
Direct Offsetting Revenue	0	DirectOffsettingRevenue

Total Total

Field	Value	IRS element (for citing)
Total Community Building Expense	40403	TotalCommunityBuildingExpense
Net Community Building Expense	40403	NetCommunityBuildingExpense
Percent Of Total Expense	0.00040	PercentOfTotalExpense

Field	Value	IRS element (for citing)
Bad Debt Expense Reported	0	BadDebtExpenseReported
Bad Debt Expense	$18,531,240	BadDebtExpenseAmount
Amount Attributable To	3372686	AmountAttributableTo
Amount Reimbursed By Medicare	27324775	AmountReimbursedByMedicare
Cost Of Care Reimbursed By Medicare	24213612	CostOfCareReimbursedByMedicare
Medicare Surplus Or Shortfall	3111163	MedicareSurplusOrShortfall

Costing Methodology Used CostingMethodologyUsed

Field	Value	IRS element (for citing)
Other	X	Other

Field	Value	IRS element (for citing)
Written Debt Collection Policy	1	WrittenDebtCollectionPolicy
Provision For Charity Care	1	ProvisionForCharityCare
Number Of Hospital Facilities	1	NumberOfHospitalFacilities

Form990 Schedule H Part V Section A Form990ScheduleHPartVSectionA

Field	Value	IRS element (for citing)
Facility Number	1	FacilityNumber

Name Name

Field	Value	IRS element (for citing)
Business Name Line1	Morristown-Hamblen Healthcare System	BusinessNameLine1

Address Address

Field	Value	IRS element (for citing)
Address Line1	908 W Fourth North St	AddressLine1
City	Morristown	City
State	TN	State
ZIP Code	37814	ZIPCode

Field	Value	IRS element (for citing)
Website Address	www.mhhs1.org	WebsiteAddress
Licensed Hospital	X	LicensedHospital
General Medical And Surgical	X	GeneralMedicalAndSurgical
Er24 Hours	X	Er24Hours

Form990 Schedule H Part V Section B Form990ScheduleHPartVSectionB

Hospital Facility Name HospitalFacilityName

Field	Value	IRS element (for citing)
Business Name Line1	Morristown-Hamblen Healthcare System	BusinessNameLine1

Field	Value	IRS element (for citing)
Hospital Facility Number	1	HospitalFacilityNumber
Eligibility Criteria Explained	1	EligibilityCriteriaExplained
Uses FPG Free	1	UsesFPGFree
FPG Free Percent	200.000000000000	FPGFreePercent
Uses FPG Discounted	1	UsesFPGDiscounted
FPG Discount Percent	300.000000000000	FPGDiscountPercent
Explains Basis	1	ExplainsBasis
Income Level	X	IncomeLevel
Asset Level	X	AssetLevel
Medical Indigency	X	MedicalIndigency
Explains Application Method	1	ExplainsApplicationMethod
Includes Publicity Measures	1	IncludesPublicityMeasures
Available On Request	X	AvailableOnRequest
Other Publicity	X	OtherPublicity
Actions On Nonpayment	1	ActionsOnNonpayment
Collection Activities	0	CollectionActivities
Nondiscrim Emergency Care Policy	1	NondiscrimEmergencyCarePolicy
Used Other Method	X	UsedOtherMethod
Amounts Generally Billed	0	AmountsGenerallyBilled
Gross Charges	0	GrossCharges

Form990 Schedule H Part V Section C Form990ScheduleHPartVSectionC

Field	Value	IRS element (for citing)
Number Of Other Facilities	13	NumberOfOtherFacilities

Other Facilities OtherFacilities (13 entries)

Address Line1Address/AddressLine1	CityAddress/City	StateAddress/State	ZIP CodeAddress/ZIPCode	Facility TypeFacilityType
Surgery-Endoscopy Ctr of Morristown
908 W Fourth North Street	Morristown	TN	37814	Ambulatory surgery center
Morristown Regional Cancer Center
908 W Fourth North Street	Morristown	TN	37814	Radiation oncology
Morristown Regional Diagnostic Center
901 W Fourth North Street	Morristown	TN	37814	Outpatient diagnostic center
East TN Women's Health Specialists
609 McFarland Street	Morristown	TN	37814	Medical clinic
Morristown Inpatient Specialists
908 W Fourth North Street	Morristown	TN	37814	Medical clinic
Advanced Women's Health Specialists
1633 W Morris Blvd Suite A	Morristown	TN	37814	Medical clinic
Sleep Center
924 W Fourth North Street	Morristown	TN	37814	Sleep diagnostic center
Premier Women's Health Specialists
609 McFarland Street	Morristown	TN	37814	Medical clinic
Senior Support Program
1111 Watercrest Street	Morristown	TN	37814	Outpatient group therapy
Elite Women's Health Specialists
609 McFarland Street	Morristown	TN	37814	Medical clinic
Prompt Family Care
1621 W Morris Blvd	Morristown	TN	37814	Medical clinic
Prompt Family Care - South
1050 Freshour Street	Morristown	TN	37814	Medical clinic
Prompt Family Care - Jefferson City
1405 S Sizer Avenue	Jefferson City	TN	37760	Medical clinic

Form990 Schedule H Part VI Form990ScheduleHPartVI (15 entries)

ExplanationExplanation	IdentifierIdentifier
Part I, Line 6a: Covenant Health, the parent company of Morristown-Hamblen Hospital Association, dba Morristown-Hamblen Healthcare System, and other affiliated acute care hospitals, prepares an annual Report to the Community on behalf of the entire system.
Part I, Line 7: Amounts on Lines 7a-7c and certain program costs included on Line 7g are from the hospital's cost accounting system, which addresses all patient segments. Other community benefit expenses are at cost from the general ledger.
Part I, Line 7g: The organization has included $333,048 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 $ 18531240.
Part II: Morristown-Hamblen Healthcare System 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 finding 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 2012 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) Residential and foster care for children, special education services, and support services to reunite families and keep them together - Holston Home for Children The basic needs of life including temporary shelter, food and clothing - Catholic Charities, Family Promise, Ladies of Charity, and others Youth mentoring and development and after-school programs - Emerald Youth Foundation and Boy Scouts of America Business recruitment and marketing initiatives that boost economic development - East Tennessee Economic Development Agency (ETEDA) and Innovation Valley 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)
Part III, Line 4: 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 their qualification for financial assistance due to all information not yet being received but felt strongly that the patient was in need of some form of assistance. Notes in the patient record were examined to see if a charity care application had been sent to the patient or guarantor or if the account was 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.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 2012 Audited Consolidated Financial Statements of the Covenant Health system, of which Morristown-Hamblen Hospital Association is a member, reads in part: "Patient accounts receivable are reported net of both an estimated allowance for uncollectible accounts and an estimated allowance for contractual adjustments. The contractual allowance represents the difference between established billing rates and estimated reimbursement from Medicare, TennCare and other third-party payment programs. The allowance for uncollectible accounts is estimated based upon the age of the patient accounts receivable, prior experience and any unusual circumstances (such as local, regional or national economic conditions) which affect the collectability of receivables, including management's assumptions about conditions it expects to exist and courses of action it expects to take. Covenant's policy does not require collateral or other security for patient accounts receivable and Covenant routinely accepts assignment of, or is otherwise entitled to receive, patient benefits payable under health insurance programs, plans or policies."
Part III, Line 8: Costing Methodology: MHHS 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 automatically receive a minimum 46% 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 through routine collection channels internally, it may be assigned to an attorney/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 V, Section B, Line 14g: Please see the explanation to Part VI, Line 3.	Morristown-Hamblen Healthcare System
Part V, Section B, Line 20d: Please see the explanation to Part III, Line 9b.	Morristown-Hamblen Healthcare System
Part VI, Line 2: Covenant Health, on behalf of its affiliated hospitals, is engaged in conducting community health needs assessments. Covenant has chosen to complete the assessment process in partnership with the local health department, free health clinics, community based health councils, United Way and chambers of commerce.The assessment is utilizing a variety of data collection methods to ensure that at risk populations have a voice in the process. Qualitative research is being conducted using focus groups of community leaders, key informant interviews, and household surveys of 500-600 per county. In working with area health departments, a variety of health statistics have been gathered including demographics, social-cultural indicators, morbidity and mortality data, health rankings, KIDS COUNT data, health professional needs per population, and behavioral risk factor data.Upon completion of data collection, a community based data synthesis team will begin to meet, discuss, and prioritize the significant findings. Each hospital will proceed with the assessment's significant findings and translate that into an action plan to address the identified needs.
Part VI, Line 3: Part VI, Line 3: Morristown-Hamblen Healthcare System informs patients and other persons who may be billed for patient care about its financial assistance policies by posting signs in highly visible areas of the hospital and including information about the financial assistance policy in patient booklets placed in all inpatient rooms.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, staff of Morristown-Hamblen Healthcare System is available to assist you with your financial needs. If you are an uninsured person with no public or private source of payment for medical services, Morristown-Hamblen Healthcare System in compliance with Tennessee Code Annotated, Title 47, Chapter 18 and Title 68, will provide at a reduced rate, medically indicated services. A financial counselor is available to assist you with these matters by calling 865.446.8687, Monday through Friday between the hours of 8 a.m. and 4:30 p.m.Morristown-Hamblen Healthcare System employs a full time financial counselor that meet with each uninsured patient. In addition, Morristown-Hamblen Healthcare System 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 counselor initiate screening of the patient and/or guarantor by obtaining income and other financial information to determine eligibility for charity care or discounted services.
Part VI, Line 4: Hamblen County, Tennessee, is the primary market for Morristown-Hamblen Healthcare System, a non-profit hospital affiliated with Covenant Health. Hamblen County is a rural community with close proximity to the metropolitan Knoxville area. Morristown-Hamblen Hospital shares its market with the region's only for-profit hospital, Lakeway Hospital. According to internal hospital data for 2012, almost 52% of the inpatient discharges were Hamblen County residents, followed by Jefferson County with over 13%.According to 2010 data of the U.S. Census Bureau, the population of Hamblen County numbers approximately 62,544, which represents a 7.6% increase over the 2000 census number. The population is evenly split between men and women. Persons 65 and older account for 16% of the population. Hamblen County has one of the largest Hispanic populations in East Tennessee at 11%. The median income of Hamblen County is $39,604 per household with 17.7% of the population living below the poverty level. Unemployment is at 10.6%.According to the 2013 County Health Rankings Report by the Robert Wood Johnson Foundation/ University of Wisconsin Population Health Institute, Hamblen County residents have the following health indicators that are above the national benchmarks: Hamblen - TN - National Adult Smoking: 23% - 24% - 15% Adult Obesity: 33% - 31% - 25% Teen Birthrate: 73 - 50 - 21 of every 1,000 teenage girls Poor or Fair Health: 25% - 19% - 10% Physical Inactivity: 34% - 30% - 21%
Part VI, Line 5: Morristown-Hamblen Healthcare System ("MHHS"), in conjunction with its parent company, Covenant Health, is committed to providing quality health care services in a caring environment that fulfills the needs of patients, physicians, employers, employees, and the community.Covenant Health's Board of Directors, which is comprised of independent community leaders with diverse and professional backgrounds, serves as MHHS's Board. The board sets policies and provides oversight of MHHS.MHHS maintains an open medical staff, with privileges available to all qualified physicians and healthcare professionals. Additionally, the hospital operates an active and accessible emergency department open to all persons, regardless of the ability to pay.The hospital uses any available surplus of receipts over disbursements to expand and modernize its facilities and to advance its medical training and education programs, both of which serve to improve patient care and serve the unmet needs of the community.MHHS provides numerous education and outreach efforts to the community, ranging from health screenings and fairs to presentations to area groups. The various programs and services are provided complimentary or at a minimum charge. These are offered throughout the year based upon activities and services which the hospital believes will serve a bona fide community need. In addition to health education programs and activities, the hospital participates in other community outreach and support programs, including various community activities to benefit civic organizations, local schools, and members of the community. The hospital values the relationships maintained with the community organizations and provides conference rooms for a variety of meetings, seminars, and educational programming at no charge to outside groups. Additionally, the hospital provides other in-kind services and staff support to many area support groups. In these and other respects, the hospital is organized and operated in a manner that promotes the health of the community and therefore fulfills charitable purposes within the meaning of Internal Revenue Code Section 501(c)(3).
Part VI, Line 6: Morristown-Hamblen Healthcare System (MHHS), as a member of the Covenant Health system, benefits from the collaboration among all affiliated organizations to promote quality improvement, patient safety and efficient delivery of care for the communities served. As a system, Covenant assures that business processes are in place in each facility to measure and report quality, to increase the role of compliance, and to integrate risk management, utilization review, peer review, mandatory reporting and quality improvement into one cohesive function. In this way, the system is able to use analytic tools to help identify any systemic inability to satisfy the various requirements on the part of the facilities. MHHS's patients benefit from the availability of and ease of access to Covenant Health affiliated entities for services not provided by the hospital itself. Transfer or referral to such services is expedited and coordinated to help create a seamless continuum of care. A full range of community mental health and psychiatric hospital services are available within the system that help support the hospital's emergency room as well as provide an accessible and efficient pathway for those patients who require such services post discharge. Other specialized services such as inpatient rehabilitation, home health and hospice services are provided by affiliated entities. The Covenant Health system also enhances the patient's access to care through the provision of outpatient in a variety of settings located throughout the service area. These include a diabetes center, wound care center, bariatric surgery center, pulmonary rehabilitation programs and ambulatory infusion centers.Through this combination of resources and the collective development, implementation and monitoring of clinical protocols and other improvement initiatives, the affiliated entities of Covenant Health are able to deliver higher quality care in a more efficient manner than could be achieved working independently.

Schedule I IRS990ScheduleI

Field	Value	IRS element (for citing)
Records Maintained	1	RecordsMaintained

Recipient Table RecipientTable (2 entries)

Address Line1AddressUS/AddressLine1	CityAddressUS/City	StateAddressUS/State	ZIP CodeAddressUS/ZIPCode	EIN Of RecipientEINOfRecipient	IRC SectionIRCSection	Amount Of Cash GrantAmountOfCashGrant	Purpose Of GrantPurposeOfGrant
Morristown-Hamblen Hospital Foundation
908 W Fourth North St	Morristown	TN	37814	621697090	501(c)(3)	64820	Subsidy for rent and other operating expenses, fundraiser sponsorship, memorial donations
Boys & Girls Club Foundation of Morristown Inc
POBox 1461 311 Sulphur Springs Rd	Morristown	TN	37816	621843718	501(c)(3)	5350	Sponsorship and donation

Field	Value	IRS element (for citing)
Total Nbr Of501 C3 And Govt Grants	2	TotalNbrOf501C3AndGovtGrants
Total Nbr Of Other Organizations	0	TotalNbrOfOtherOrganizations

Form990 Schedule I Part IV Form990ScheduleIPartIV

Field	Value	IRS element (for citing)
Identifier	Procedure for Monitoring Grants in the U.S.:	Identifier
Return Reference	Part I, Line 2:	ReturnReference
Explanation	Schedule I, Part I, Line 2: The organization awards grants to local charitable organizations who are addressing needs that fit one of the community benefit objectives, which are to: 1) improve access to health care services, 2) enhance the health of the community, 3) advance medical or health care knowledge, or 4) relieve or reduce the burden of government or other community efforts.	Explanation

Schedule J IRS990ScheduleJ

Field	Value	IRS element (for citing)
Substantiation Required	1	SubstantiationRequired
Severance Payment	1	SeverancePayment
Supplemental Nonqual Retire Plan	1	SupplementalNonqualRetirePlan
Equity Based Comp Arrangement	0	EquityBasedCompArrangement
Comp Based On Revenue Of Filing Org	0	CompBasedOnRevenueOfFilingOrg
Comp Based On Revenue Related Orgs	0	CompBasedOnRevenueRelatedOrgs
Comp Based Net Earnings Filing Org	0	CompBasedNetEarningsFilingOrg
Comp Based Net Earnings Relate Orgs	0	CompBasedNetEarningsRelateOrgs
Any Non Fixed Payments	0	AnyNonFixedPayments
Initial Contract Exception	0	InitialContractException

Form990 Schedule J Part II Form990ScheduleJPartII (13 entries)

TitleTitle	Base Compensation Filing OrgBaseCompensationFilingOrg	Comp Based On Related OrgsCompBasedOnRelatedOrgs	Bonus Filing OrgBonusFilingOrg	Bonus Related OrgsBonusRelatedOrgs	Other Compensation Filing OrgOtherCompensationFilingOrg	Other Compensation Related OrgsOtherCompensationRelatedOrgs	Deferred Comp Filing OrgDeferredCompFilingOrg	Deferred Comp Related OrgsDeferredCompRelatedOrgs	Nontaxable Benefits Filing OrgNontaxableBenefitsFilingOrg	Nontaxable Benefits Related OrgsNontaxableBenefitsRelatedOrgs	Total Compensation Filing OrgTotalCompensationFilingOrg	Total Compensation Related OrgsTotalCompensationRelatedOrgs	Comp Report Prior990 Filing OrgCompReportPrior990FilingOrg	Comp Report Prior990 Related OrgsCompReportPrior990RelatedOrgs
Anthony L Spezia
President & CEO	0	941953	0	379600	0	205294	0	213800	0	16574	0	1757221	0	0
John T Geppi
EVP/CFO	0	421940	0	171991	0	79164	0	9800	0	17338	0	700233	0	0
Jacqueline H Hounshell
VP - Financial Services	92663	0	0	0	5574	0	6546	0	12972	0	117755	0	0	0
Gordon E Lintz
President & CAO	0	199461	0	56734	0	52128	0	9800	0	9345	0	327468	0	0
Jeremy Biggs
Interim CAO	0	167295	0	10000	0	17468	0	8601	0	18457	0	221821	0	0
Dedra C Whitaker
VP-Chief Nursing Officer	161432	0	5000	0	10790	0	5199	0	18845	0	201266	0	0	0
Peter Clark MD
Physician	331956	0	265240	0	3612	0	7500	0	16190	0	624498	0	0	0
Billy Black MD
Physician	289242	0	0	0	594	0	7500	0	19072	0	316408	0	0	0
Frank Ellis MD
Physician	247519	0	81634	0	1307	0	10280	0	20998	0	361738	0	0	0
Jason Cox MD
Physician/ Hospitalist	261795	0	12322	0	571	0	0	0	18733	0	293421	0	0	0
Jill B Robinson MD
Physician	258271	0	16500	0	1314	0	8290	0	8127	0	292502	0	0	0
Richard L Clark
Former President & CAO	0	0	0	0	0	273826	0	9800	0	0	0	283626	0	0
Maxwell Owens
Former VP-Financial Servs.	0	0	0	0	167608	0	0	0	0	0	167608	0	0	0

Form990 Schedule J Part III Form990ScheduleJPartIII (3 entries)

Return ReferenceReturnReference	ExplanationExplanation
Part I, Line 1a
Part I, Line 3	Covenant Health, the parent company of Morristown-Hamblen Healthcare System, 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, Lines 4a-b	Part I, Line 4a: Severance payments were provided to the following individuals: Richard Clark - $271,170 Max Owens - $167,523 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 2012 amounted to $71,781.22 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 2012 totaled $204,000, which is reported in Column C of Schedule J, Part II. Interest earned by Plan B during 2012 of $17,909.59 is not required to be reported in compensation in Part II, as Mr. Spezia is not substantially vested in Plan B.

Schedule L IRS990ScheduleL

Form990 Schedule L Part IV Form990ScheduleLPartIV

Name Of Interested Person NameOfInterestedPerson

Name Business NameBusiness

Field	Value	IRS element (for citing)
Business Name Line1	Associates of the Meridian Health Outpatient Surgery Center LLC (SECOM)	BusinessNameLine1

Field	Value	IRS element (for citing)
Relationship	Morristown-Hamblen Hospital Association had a 98% ownership interest.	Relationship
Amount Of Transaction	439670	AmountOfTransaction
Description Of Transaction	SECOM rented space from and paid a management fee to Morristown-Hamblen Hospital Association (MHHA). Dedra Whitaker, MHHA VP and Chief Nursing Officer, served as a manager on the Board of SECOM during 2012.	DescriptionOfTransaction
Sharing Of Revenues	0	SharingOfRevenues

Schedule O IRS990ScheduleO

General Explanation GeneralExplanation (10 entries)

IdentifierIdentifier	Return ReferenceReturnReference	ExplanationExplanation
Organization Mission Statement	Form 990, Part III, Line 1	In 1996, Fort Sanders Health System and MMC Healthcare System of Oak Ridge consolidated to form Covenant Health, with a mission of serving its communities by improving the quality of life through better health. Covenant Health is a nationally recognized top health system in many areas: patient care, quality performance, cost, integration, information technology, finances, ethics and innovation. To meet the challenges and implications of healthcare reform, Covenant Health has committed to these imperatives: * Serving the community 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 communities, providing programs, services, technologies and facilities that improve local healthcare services and patient care. Covenant Health has invested more than a billion dollars in its communities since 2000 - a commitment no other healthcare organization has approached. Covenant Health 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. This commitment to excellence will help the system accomplish its mission of improving the quality of life through better health. In order to deliver on the promise of excellence in today's healthcare environment, preparation is critical. Covenant Health's Board of Directors ("the Board") is committed to advancing its understanding of health care. The Board is continually learning about hospitals' operational challenges and how the current environment affects physicians and their practices. The healthcare universe is constantly shifting. The Board members are volunteers, but have a passion for Covenant Health's mission, and a desire to expand its knowledge in preparation for leading the organization. Dedication to a shared goal is essential. Very few community endeavors are as important as making high-quality health care available to its citizens. Our patients and their families are at vulnerable points in their lives, and the Board believes it is a privilege to meet their healthcare needs. Experience is a valuable asset. Covenant Health has a legacy of delivering high-quality care, which will help to weather the storms of change, including transitioning to value-based reimbursement. COVENANT HEALTH MEMBER ORGANIZATIONS AND SERVICES 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: Covenant Homecare and Hospice Fort Loudoun Medical Center Fort Sanders Perinatal Center Fort Sanders Regional Medical Center LeConte Medical Center Methodist Medical Center of Oak Ridge Morristown-Hamblen Healthcare System Parkwest Medical Center Peninsula Hospital, a Division of Parkwest Medical Center Roane County Medical Center Thompson Cancer Survival Center Thompson Oncology Group Knoxville Heart Group Outpatient and Specialty Care Departments, and Joint Ventures: Fort Sanders West Diagnostic Center Fort Sanders West Outpatient Surgery Center Patricia Neal Rehabilitation Center Peninsula Outpatient Centers Fort Sanders Sevier Nursing Home Foundations: Fort Sanders Foundation Methodist Medical Center Foundation Morristown-Hamblen Hospital Foundation Thompson Cancer Survival Center Foundation BRINGING QUALITY CARE TO LOCAL COMMUNITIES Covenant Health delivers quality care, with services designed to meet the specific needs of people in the communities it serves. Seven 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. Several hospitals have been recognized for clinical accomplishments by VHA, Inc., a cooperative of non-profit healthcare organizations. In 2013, the community celebrated the opening of the new 50-bed Roane County Medical Center in Harriman. The new hospital brings expanded medical services and sophisticated technology to the people of Roane County. In addition to comprehensive hospital services, Covenant Health provides: * Innovative cancer care and technologies to deliver radiation therapy and other cancer treatment in Knox, Sevier, Anderson and Hamblen counties. * Nationally recognized care for patients suffering from physical disabilities, stroke and traumatic brain injury at Fort Sanders Regional Medical Center's Patricia Neal Rehabilitation Center. * Affiliated physician clinics throughout the region which offers convenient access to primary and specialty care. * Rehabilitation services including physical therapy, speech therapy, sports medicine, and specialized therapy such as hand therapy and vestibular (balance) rehabilitation. RACING AGAINST TIME AND DISTANCE IN STROKE CARE With Fort Sanders Regional Medical Center's "tele-stroke" robot, East Tennessee stroke patients can benefit from early consultation with the hospital's stroke experts - regardless of where patients are located across the region. Fort Sanders Regional Medical Center ("Fort Sanders") introduced robots to the region in 2012. The InTouch R7 robot is a mobile communications platform that enables stroke patients to receive consults from Fort Sanders' neurologists via its video screen "face." The robot allows neurologist's availability to patients in outlying areas 24 hours a day. Covenant Health stationed its first two robots in the emergency departments at Parkwest Medical Center in Knoxville and LeConte Medical Center in Sevierville. The telestroke network allows physicians in surrounding hospitals to use live Web video streaming to consult with Fort Sanders Stroke Center neurologists as soon as a patient arrives at the community hospital. The neurologist can remotely review patient information and examine and talk with the patient, family members and local clinicians to help determine the best course of treatment, all at the patient's bedside. A STROKE CENTER OF EXCELLENCE Fort Sanders is a Stroke Center of Excellence, and the only facility in the region to hold both a Comprehensive Stroke Center certification from the Joint Commission and three separate stroke accreditations from the Commission on the Accreditation of Rehabilitation Facilities. Fort Sanders has a team of experts available to treat patients 24 hours a day, seven days a week. The stroke team includes emergency room physicians, neurologists, neurosurgeons, neurointerventional radiologists, nurses and therapists who quickly diagnose patients and use the most technically advanced methods available to remove clots, repair broken arteries that cause strokes, and restore blood flow to the brain.
		TAVR - CHARTING NEW DIRECTIONS IN HEART CARE In 2012, Parkwest Medical Center ("Parkwest") performed its first transcatheter aortic valve replacement (TAVR) procedure. Parkwest is the first hospital in the area to offer TAVR as a minimally invasive procedure to help men and women with the progressive, life-threatening condition known as aortic stenosis. Within the first year, the TAVR team of physicians from Parkwest and Fort Sanders Regional Medical Centers performed surgery for nearly 60 people who were deemed inoperable for traditional open-heart surgery. The patients received new heart valves via a catheter tube inserted either into the femoral artery or through the rib cage. Recovery is markedly shorter than traditional open-heart surgery. In most cases the patients were discharged from the hospital within three to six days. An important aspect of TAVR is its multi-disciplinary approach. The TAVR team includes physicians specializing in cardiovascular and cardiothoracic surgery, interventional cardiology, and cardiac anesthesiology, as well as nurses and technicians with specialized training. The operating room used for TAVR procedures at Parkwest is also multi-disciplinary in design. The $2.6 million hybrid operating room combines the resources of a cardiac catheterization lab and an operating room, including the imaging equipment needed for minimally invasive procedures. ACHIEVING QUALITY THROUGH PARTNERSHIPS WITH PHYSICIANS Overall, Covenant Health's desire for alignment is driven by the need to fully evolve as a healthcare system. In pursuing its goal of outstanding quality and seamless continuum of care, Covenant Medical Management, Inc. (CMM), a for-profit entity in the Covenant Health system, has developed models with physicians that include both employment and joint ventures. CMM provides practice management services and support to over 120 primary care and specialty physicians in more than 60 practices in East Tennessee. CMM recently added Southern Medical Group and Family Care Specialists to its employed physician groups that include: * Cardiology Associates of East Tennessee * Crossville Medical Group * Fort Sanders Women's Specialists * Tennessee Brain and Spine CMM also acquired a new, separate corporation, East Tennessee Cardiovascular Surgery Group, in 2012. Prior to joining the Covenant Health system, the surgeons in this practice served as the primary cardiac surgeons for Fort Sanders Regional, Methodist, and Parkwest Medical Centers and worked in the system's Valve Centers and TAVR program. BEHAVIORAL HEALTH - A COMMITMENT TO ESSENTIAL SERVICES In 2012, Peninsula, a division of Parkwest Medical Center, faced an unprecedented challenge: Lakeshore, a state-funded mental health institute, would be closing its doors for good, and the majority of patients would funnel into Peninsula Hospital. The closing was a strategic move by the state Department of Mental Health to follow the national trend of moving behavioral health toward community-based care and away from state-funded care. With a multi-professional team made up of experienced people from across the continuum of mental health care, Peninsula laid out a plan to accommodate the influx of hospital admissions, reduce costs, and improve the quality of care for mental health patients. The team was challenged by not only having more patients, but patients with serious and complex mental disorders. Changes in staffing and processes helped create a smooth admission process and improvement of service. On average, Peninsula serves about a dozen more inpatients per day since Lakeshore closed. Even with the additional volume, Peninsula has been able to increase its customer satisfaction score and maintain or improve its performance in safety quality measures. Many of the changes which resulted in taking the patients from Lakeshore translated to better service. For example, a process was developed to assess and enroll the patients in CoverRX, the state-funded program for prescription coverage. Patients have benefited by increased collaborative efforts within the community such as regular meetings with a community providers group including representatives from local law enforcement, hospital emergency departments, mobile crisis, and a state mental health facility. The group works on the continuum of services for behavioral health patients in the area. Peninsula participates in the Crisis Intervention Training (CIT) for officers from the surrounding areas' police and sheriff's offices. The training facilitates understanding about mental illness, and when that happens, patients benefit. A partnership with the State of Tennessee brought improvements to the community based care of mental health patients, such as transportation and medications. As a result, more outpatients are keeping their first appointments, and there are a lower number of readmissions. In addition to the 155-bed inpatient psychiatric hospital in Blount County, Peninsula also has outpatient facilities in Knox, Blount, Loudon and Sevier counties. SETTING THE STANDARD FOR TECHNOLOGY The recently enacted American Recovery and Reinvestment Act includes incentives and penalties designed to accelerate our nation's adoption and "meaningful use" of electronic health records, ("EHRs"). The implementation of meaningful use initiatives is changing the way healthcare is delivered not only at Covenant Health, but also across Tennessee, and throughout the U.S. With widespread adoption, EHRs can: * make a patient's current health information available in a single, secure, shared record, * provide real-time decision support designed to hardwire best practices and reduce care variability, * reduce paperwork, duplicate testing and other inefficiencies. Meaningful Use provides the technology infrastructure and electronic applications to connect care settings, reduce costs, improve efficiency and standardize quality. From 2015 forward, for every year that meaningful use requirements are not met, providers will receive penalties in the form of reduced reimbursement. At Covenant Health, interdisciplinary and multidisciplinary operational teams have been involved in developing and implementing applications and processes related to the main components of Meaningful Use: * E-prescription writing, and computerized patient order entry, * Interoperability, or exchanging key clinical information among providers and patients, * Automated quality reporting. Through Meaningful Use initiatives Covenant Health will transform the way it delivers care by improving patient outcomes, clinical quality, patient safety and organizational effectiveness. Covenant Health has installed a record number of applications related to Meaningful Use. Seven initiatives ranging from admission databases and medication reconciliation (important for patient safety) to computerized patient order entry and physician practice management software took place in 2012 and continued in 2013. The successful installation of multiple applications in a one-year period is unprecedented in the IT world. Quality assurance processes are in place to ensure delivery of the best applications and processes for patient care, clinical quality, and patient safety.
		"MOST WIRED" Hospitals & Health Networks magazine, the journal of the American Hospital Association, has named Covenant Health among the nation's Most Wired healthcare organizations in the 15th annual Most Wired Survey and Benchmarking Study. It is the 10th time that Covenant Health has been named to the Most Wired list. Although Covenant has been named among the nation's Most Wired many times, the health systems that made the list in recent years have had to meet the demands of a more stringent analytic structure. The Most Wired survey includes questions about IT initiatives that support Meaningful Use requirements. It measures IT achievements in four focus sections: infrastructure, business and administrative management, clinical quality and safety (hospital inpatient/outpatient) and clinical integration (ambulatory/physician/community). Participating organizations must meet specific criteria for each section in order to be named "Most Wired." Most Wired surveys were completed by 659 healthcare organizations representing 1,713 hospitals, or roughly 30 percent of all U.S. hospitals. PHILANTHROPY TURNS CHALLENGE INTO OPPORTUNITY The Covenant Health Office of Philanthropy coordinates the philanthropic contributions of individuals and businesses throughout East Tennessee and beyond in support of health care in the region. Fund raising efforts are led by volunteer boards and staff at four foundations: Fort Sanders Foundation, Methodist Medical Center Foundation, Morristown- Hamblen Hospital Foundation, and Thompson Cancer Survival Center Foundation. When Fort Sanders Health Systems created its first fund raising office, Fort Sanders Foundation, in the mid-1970s to raise funds to support Fort Sanders Regional Medical Center, it was a progressive move for a health care provider. Fund raising was not a need, but more in the category of 'nice to have.' This status has changed in today's era of healthcare reform. Financial resources have tightened and hospitals look to the community for charitable contributions that are now very much in the 'need to have' category if they are to continue to meet the healthcare needs of the people of East Tennessee. During the past year these foundations received contributions of approximately $3.7 million to help provide new equipment and facilities at the hospitals, staff training and patient care programs. While the Office of Philanthropy staff coordinates community events and fund raisers, local community leadership and involvement is critical to fund raising success. In an effort to expand the cadre of informed volunteer leaders in the community, the Office of Philanthropy launched a new education program this year, Covenant Answers: A Healthcare Leadership Academy. Inaugural Academy participants included representatives from the boards of Covenant Health, and Fort Sanders and TCSC foundations. Future Leadership Academy classes will include business and community representatives from throughout Covenant Health's service area. Over a five-month period, class members attended half-day sessions at five Covenant hospitals, which included behind-the-scenes tours and hands-on access to the latest technologies and treatments. Participants discussed the challenges of the current health care environment with Covenant physicians and clinicians, heard firsthand from patients whose recovery hinged on the excellent care provided at our hospitals, and even tried their hands at using adaptive rehab equipment and maneuvering a surgical robot. IMPROVING HEALTH BEYOND HOSPITAL WALLS One of the greatest challenges facing a healthcare organization is not only caring for the patients and families who receive direct services, but making a positive impact in the health of the surrounding community. That is the mission of Covenant Health: reaching beyond hospital walls to improve the quality of life through better health. 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 Knoxville more than 7,000 people participated in the annual 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 is 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 Health was the fitness sponsor of the Dogwood Arts Festival, held annually in April. Fitness activities included several outdoor walks, "Bikes and Blooms" bike rides on local Dogwood trails, and a Dogwood Mile run and Kids Race held in downtown Knoxville. * 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 while enjoying camp activities. * Morristown-Hamblen's Wellness of Women is dedicated to improving the lives of area women and their families. The program sponsors events such as an annual Girls Night Out, which offers free health screenings and encourages women to have fun while learning to stay healthy. UNCOMPENSATED CARE 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. The Community Benefit totals for uncompensated care are included on the Forms 990 for the individual Covenant Health hospitals.
	Form 990, Part VI, Section B, line 11	Covenant Health is a large, integrated health system which files twelve Forms 990. Morristown-Hamblen Hospital Association is one of those 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	Form 990, Part VI, Section B, Line 15a: Overall compensation policies for Morristown-Hamblen Hospital Association, Covenant Health (Parent Company), and affiliates are set by the Compensation Committee of the Board of Directors, 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 2012 Form 990 of Covenant Health, EIN 62-1646734, parent company of Morristown-Hamblen Healthcare System. Form 990, Part VI, Section B, Line 15b: Base salary and annual bonus opportunities for Gordon Lintz, (President/CAO), 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 is reasonable and consistent with fair market value. Base salary is initially targeted at midpoint and varies 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 Dedra Whitaker, VP-CNO, and Jackie Houshell, VP-Financial Services, are based on established targets to insure that total compensation 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 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	Form 990, Part VI, Section C, Line 19: Per its tax-exempt bond provisions, the parent company, Covenant Health, is required to file quarterly and annual consolidated and obligated group financial statements in addition to other documentation, with various bond insurers and other agencies, including the Electronic Municipal Market Access, EMMA, website. Any member of such a repository has access to these financial statements. In addition, Morristown-Hamblen Hospital Association files a Joint Annual Report containing financial information with the Tennessee Department of Health.
Contact Addresses for Officers, Directors, Etc.:	Form 990, Part VI, Section A, Line 9	Anthony L. Spezia and Jeremy Biggs 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 Richard Clark 3102 Hampton Circle Morristown, TN 37814 Maxwell Owens 1720 13th Street, SE, Apt 303 Minot, ND 58701 All other persons listed in Part VII, Section A may be contacted at the hospital's address, which is: Morristown-Hamblen Hospital Association 908 W. Fourth North St. Morristown, TN 37814
Changes in Net Assets or Fund Balances:	Form 990, Part XI, line 9:	Forgiveness of Affiliate Receivables 3,403,404.
	Form 990, Part XII, Line 2c:	The Finance Committee of the Board of Directors assumes responsibility for oversight of the audit of the consolidated financial statements and selection of an independent accountant.

Schedule R IRS990ScheduleR

Form990 Schedule R Part II Form990ScheduleRPartII (15 entries)

Address Line1AddressUS/AddressLine1	CityAddressUS/City	StateAddressUS/State	ZIP CodeAddressUS/ZIPCode	EINEIN	Primary ActivitiesPrimaryActivities	Legal Domicile StateLegalDomicileState	Exempt Code SectionExemptCodeSection	Public Charity StatusPublicCharityStatus	Direct Controlling Entity NADirectControllingEntityNA	Controlled OrgControlledOrg	Business Name Line1DirectControllingEntityName/BusinessNameLine1
Covenant Health
1420 Centerpoint Blvd Bldg C	Knoxville	TN	37932	621646734	Supporting organization	TN	501(c)(3)	Line 11b, II	N/A	0
Fort Sanders Regional Medical Center
1901 W Clinch Ave	Knoxville	TN	37916	620528340	Acute care hospital	TN	501(c)(3)	Line 3		0	Covenant Health
Parkwest Medical Center
9352 Park West Boulevard	Knoxville	TN	37923	581897274	Acute care hospital & behavioral health services	TN	501(c)(3)	Line 3		0	Covenant Health
Methodist Medical Center
990 Oak Ridge Turnpike	Oak Ridge	TN	37830	620636239	Acute care hospital	TN	501(c)(3)	Line 3		0	Covenant Health
LeConte Medical Center
742 Middle Creek Road	Sevierville	TN	37862	621114867	Acute care hospital	TN	501(c)(3)	Line 3		0	Covenant Health
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		0	Covenant Health
Fort Loudoun Medical Center
550 Fort Loudoun Medical Center Dr	Lenoir City	TN	37772	621373691	Acute care hospital	TN	501(c)(3)	Line 3		0	Covenant Health
Thompson Cancer Survival Center
1915 White Avenue	Knoxville	TN	37916	621250943	Cancer treatment facility	TN	501(c)(3)	Line 3		0	Covenant Health
Thompson Oncology Group
1915 White Avenue	Knoxville	TN	37916	621619239	Oncology services	TN	501(c)(3)	Line 3		0	Covenant Health
Covenant Homecare
3001 Lake Brook Blvd Suite 101	Knoxville	TN	37909	621623114	Home health services	TN	501(c)(3)	Line 9		0	Covenant Health
Fort Sanders Perinatal Center
501 19th St Suite 304	Knoxville	TN	37916	043760551	High risk obstetrical services	TN	501(c)(3)	Line 3		0	Covenant Health
Fort Sanders Foundation
280 Fort Sanders West Blvd Ste 202	Knoxville	TN	37922	621748601	Fundraising and patient outreach	TN	501(c)(3)	Line 11b, II		0	Covenant Health
Thompson Cancer Survival Center Foundation
1915 White Avenue	Knoxville	TN	37916	582130450	Fundraising and patient outreach	TN	501(c)(3)	Line 11a, I		0	Thompson Cancer Survival Center
Morristown-Hamblen Hospital Foundation
908 W Fourth North St	Morristown	TN	37814	621697090	Fundraising and patient outreach	TN	501(c)(3)	Line 11a, I		1	Morristown-Hamblen Hospital Association
Morristown Regional Cancer Center LLC
908 W Fourth North St	Morristown	TN	37814	200916364	Cancer treatment facility	TN	501(c)(3)	Line 3		1	Morristown-Hamblen Hospital Association

Form990 Schedule R Part III Form990ScheduleRPartIII (6 entries)

Address Line1AddressUS/AddressLine1	CityAddressUS/City	StateAddressUS/State	ZIP CodeAddressUS/ZIPCode	EINEIN	Primary ActivityPrimaryActivity	Legal Domicile StateLegalDomicileState	Direct Controlling Entity NADirectControllingEntityNA	Predominant Income TypePredominantIncomeType	Share Of Total IncomeShareOfTotalIncome	Share Of EOY AssetsShareOfEOYAssets	Disproportionate AllocationsDisproportionateAllocations	General Or Managing PartnerGeneralOrManagingPartner	Percentage OwnershipPercentageOwnership
Assoc of the Meridian Health Outpatient Surgery Ctr LLC
908 W 4th North St	Morristown	TN	37814	861167487	Outpatient surgery center	TN	N/A	Related	-668241	1702305	0	1	0.98000
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 Fort Sanders West Blvd Ste 106	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
260 Fort Sanders West Blvd Ste 200	Knoxville	TN	37922	262444076	Building ownership	TN	N/A
Knoxville Orthopaedic Surgery Center LLC
260 Fort Sanders West Blvd Ste 200	Knoxville	TN	37922	262437385	Orthopaedic surgery	TN	N/A

Form990 Schedule R Part IV Form990ScheduleRPartIV (5 entries)

Address Line1AddressUS/AddressLine1	CityAddressUS/City	StateAddressUS/State	ZIP CodeAddressUS/ZIPCode	EINEIN	Primary ActivityPrimaryActivity	Legal Domicile StateLegalDomicileState	Direct Controlling Entity NADirectControllingEntityNA	Type Of EntityTypeOfEntity	Controlled OrgControlledOrg
Fortress Corporation
280 Fort Sanders West Blvd Suite 21	Knoxville	TN	37922	621308885	Management company	TN	N/A	C	0
KASC Acquisition Company Inc
1420 Centerpoint Blvd Bldg C	Knoxville	TN	37932	263400984	Real estate holdings	TN	N/A	C	0
Covenant Medical Management Inc
1400 Centerpoint Blvd Bldg A Suite	Knoxville	TN	37932	621282917	Physician practice management	TN	N/A	C	0
Knoxville Heart Group
1819 Clinch Ave Suite 108	Knoxville	TN	37916	271528941	Cardiology medical practice	TN	N/A	C	0
East TN Cardiovascular Surgery Group Inc
9125 Cross Park Drive Ste 200	Knoxville	TN	37923	621018541	Cardiovascular Surgery Practice	TN	N/A	C	0

Field	Value	IRS element (for citing)
Receipt Of Int Ann Rents Royalties	1	ReceiptOfIntAnnRentsRoyalties
Gift Grant Or Cap Contr To Other Org	0	GiftGrantOrCapContrToOtherOrg
Gift Grant Or Cap Contr Fr Other Org	0	GiftGrantOrCapContrFrOtherOrg
Loans Or Guarantees To Other Org	0	LoansOrGuaranteesToOtherOrg
Loans Or Guarantees From Other Org	0	LoansOrGuaranteesFromOtherOrg
Dividends Related Organization	0	DividendsRelatedOrganization
Sale Of Assets To Other Org	1	SaleOfAssetsToOtherOrg
Purchase Of Assets From Other Org	1	PurchaseOfAssetsFromOtherOrg
Exchange Of Assets	0	ExchangeOfAssets
Rental Of Facilities To Other Orgs	1	RentalOfFacilitiesToOtherOrgs
Rental Of Facilities Fr Other Orgs	1	RentalOfFacilitiesFrOtherOrgs
Perform Of Services For Other Orgs	1	PerformOfServicesForOtherOrgs
Perform Of Services By Other Orgs	1	PerformOfServicesByOtherOrgs
Sharing Of Facilities	0	SharingOfFacilities
Sharing Of Paid Employees	1	SharingOfPaidEmployees
Reimbursement Paid To Other Org	1	ReimbursementPaidToOtherOrg
Reimbursement Paid By Other Org	1	ReimbursementPaidByOtherOrg
Other Transfer To Other Org	1	OtherTransferToOtherOrg
Other Transfer From Other Org	1	OtherTransferFromOtherOrg

Transactions Related Orgs Table TransactionsRelatedOrgsTable (5 entries)

Transaction TypeTransactionType	Amount InvolvedAmountInvolved	Method Of Amt DeterminationMethodOfAmtDetermination
Morristown-Hamblen Hospital Foundation
R	56220	Actual
Assoc of the Meridian Health OP Surgery Center LLC
A	439700	Actual
Assoc of the Meridian Health OP Surgery Center LLC
B	125000	Actual
Assoc of the Meridian Health OP Surgery Center LLC
L	289963	Actual
Assoc of the Meridian Health OP Surgery Center LLC
O	1150066	Actual wages + benefits