2012-11-13T10:13:11-06:00 2011-12-31 990 2011-01-01 620636239 Methodist Medical Center METH 8653746864 1420 Centerpoint Blvd Bldg C Knoxville TN 379321960 JOHN T GEPPI 8653746872 2012-11-07 Self Prepared 2011 2016-02-24 21:20:13Z Anthony L Spezia 100 Ft Sanders W Blvd Knoxville TN 37922 186553892 0 X http://www.mmcoakridge.com X 1959 TN Methodist Medical Center is a 301-bed full service, acute care hospital and regional referral center located in Oak Ridge, Tennessee. It is a member of the Covenant Health system. 21 16 1349 234 -7682 0 549857 338843 180792612 180076014 1490750 2069750 827009 823816 183660228 183308423 51985 92001 0 0 67291042 68704881 0 0 0 117296216 118553204 184639243 187350086 -979015 -4041663 198347611 190559810 29166548 28829392 169181063 161730418 X See Schedule O.Methodist Medical Center provides quality healthcare, in alignment with Covenant Health's mission to serve the community by improving the quality of life through better health regardless of a patient's ability to pay. 0 0 35619143 31846809 Surgical Services: See Schedule O.Surgical Services: Expenses-$35,619,143; Revenue-$31,846,809In 2011, surgeons at Methodist Medical Center performed procedures on 17,856 patients in several surgical specialty areas, including: Neurology and Neurosurgery, and Vascular Surgery. Under the clinical leadership of a board-certified neurosurgeon with a doctorate in neuroscience / anatomy, Methodist Medical Center's neurosurgery staff is committed to restoring quality of life to the fullest extent possible. Surgery is performed on patients with malignant, benign and metastatic brain tumors; aneurysms and malformations of the blood vessels; head and spinal injuries; herniated discs; epilepsy; and other conditions of the head, neck and back.Sophisticated imaging tools such as Methodist Medical Center's 3Tesla MRI provide detailed views of the central nervous system. However, images of the brain, spinal cord, nerves and muscles alone are not always enough when medical problems occur. The medical center's neurodiagnostic services include a full-range of studies including EEG's, somatosensory and visual response tests, and nerve conduction and transcranial Doppler studies. These tests allow physicians to gather more data to better diagnose and treat problems such as stroke, Parkinson's disease, Alzheimer's, cerebral palsy, brain tumors, spinal cord function, headaches, vision loss and other conditions. Vascular surgeons at Methodist perform procedures throughout the body to remove blockages in arteries, bypass diseased arteries, and replace vascular areas weakened by aneurysms. Examples include life-saving surgery for patients with carotid artery disease or inadequate blood flow to the kidneys or digestive organs, angiography, prosthetic grafts, balloon angioplasty, stents and stent-grafts. 30560091 30843574 Cardiac Services: See Schedule O.Cardiac Services: Expenses-$30,560,091; Revenue-$30,843,574Methodist Medical Center offers a complete continuum of heart care beginning with prevention efforts such as education, exercise programs, diet and stress management, early detection, diagnosis, treatment and rehabilitation, and advanced new treatments. The hospital treated 12,296 cardiac patients in 2011.Diagnostics and treatment at Methodist Medical Center include electrophysiology studies. Traditional tests of irregular heartbeats record only the irregular heartbeats that occur during testing. With these tests, doctors may not obtain the detailed data they need to find the exact source of the problem. Using sophisticated technology, a specially trained cardiologist causes the irregular heartbeats to occur during a test. With information the doctor obtains, he or she can not only diagnose the source of the irregular heartbeats, but also: - determine the effectiveness of certain medications in dealing with the condition, - predict a patient's risk for sudden cardiac death, and - determine whether the patient needs a pacemaker or other device implanted near the heart. Methodist Medical Center's highly trained cardiologists, nurses and technicians combine their extensive skills with the latest technology in the areas of bypass surgery, procedures involving pacemakers, drug-eluting stents and cardiac defibrillators, angioplasty and emergency treatment. They also perform echocardiograms, electrocardiograms and stress tests. Telemetry monitoring is available for critical patients, and cardiac rehabilitation services, therapy, dietary consultation and congestive heart failure education classes are also provided at the facility. In addition, the facility offers heart screenings to the community and promotes cardiac education and wellness through community health fairs and seminars. The organization's goal is to provide excellent care to an increasing number of cardiac patients in its service area, as well as to promote cardiac education and wellness through community health fairs and educational seminars. 24806617 22447175 Orthopedic Services: See Schedule O.Orthopedic Surgery Services: Expenses-$24,806,617; Revenue-$22,447,175Methodist Medical Center's 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 5,808 orthopedic surgery patients in 2011. Intense inpatient rehabilitation begins after surgery in a group setting. It is one way of maximizing the patient's chance for a full recovery. Outpatient therapy may be continued at Methodist Therapy Center, which offers advanced physical, speech and occupational therapies for both adults and children. The therapy staff specializes in treating a variety of orthopedic, neurologic, and medical problems, with an emphasis on helping individuals overcome disability caused by disease, injury, development abnormality, or amputation. The physical therapy staff at Methodist Medical Center 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, wound/burn care, and aquatic therapy. 91830638 92001 95163889 As a full-service acute care, regional medical center, Methodist Medical Center treats patients across a broad spectrum of medical specialties in addition to those highlighted above. 91830638 92001 95163889 182816489 1 1 0 0 0 0 0 0 0 1 1 0 0 0 1 1 0 1 0 0 0 0 0 0 0 0 1 1 1 1 1 0 0 0 0 0 0 0 0 0 0 0 0 1 1 1 1 0 0 1 190 0 1 1349 1 1 1 0 0 0 0 0 0 0 0 0 X 21 16 0 0 0 0 0 0 0 1 1 1 0 1 1 1 1 1 1 1 1 1 0 X X Nancy Beck 8653746864 1420 Centerpoint Blvd Bldg C Knoxville TN 37932 X Anthony L Spezia 0.00 X X 0 2492642 25707 Dr Richard Brinner 0.00 X 0 0 0 Dr Mitchell Dickson 0.00 X 0 1184 0 Pamela P Fansler 0.00 X 0 0 0 Homer Fisher 0.00 X 0 0 0 James Fitzsimmons 0.00 X 0 1192 0 Dr William Hall 0.00 X 0 1579 0 Wayne Heatherly 0.00 X 0 747 0 Jim Johnson Jr 0.00 X 0 1184 0 Karla Lane 0.00 X 0 0 0 Eddie Mannis 0.00 X 0 0 0 Larry Mauldin 0.00 X 0 2832 0 Dr Joseph Metcalf 0.00 X 0 0 0 George Miller 0.00 X 0 0 0 Alvin Nance 0.00 X 0 1235 0 Linda Ogle 0.00 X 0 0 0 Francis H Olmstead Jr 0.00 X 0 0 0 Mitchell Steenrod 0.00 X 0 1184 0 Carl Storms 0.00 X 0 769 0 Joseph E Sutter 0.00 X 0 1273 0 Richard Swanson 0.00 X 0 0 0 Joe Ben Turner 0.00 X 0 1192 0 David Verble 0.00 X 0 1251 0 John T Geppi 0.00 X 0 705467 29048 Michael R Belbeck Jr 50.00 X 0 413309 33952 Julie G Utterback 50.00 X 153656 0 29511 Stephen E Ellis 50.00 X 203215 0 25881 Shane West 50.00 X 178971 0 27183 Susan K Harris 50.00 X 159986 0 19840 Connie B Martin 50.00 X 123689 0 18594 Carolyn S Shipley 50.00 X 121490 0 18022 Samuel L Price 60.00 X 119128 0 1531 1060135 3627040 229269 8 0 1 0 Cardinal Health 1330 Enclave Parkway Houston TX 77077 Pharmacy Management 10157136 GE Healthcare POBox 402076 Atlanta GA 303842076 Maintenance & Service contract 3499281 Sodexo Inc & Affiliates PO Box 536922 Atlanta GA 303536922 Cafeteria Management 2190192 Covenant Medical Management 280 Ft Sanders W Blvd Ste 205 Knoxville TN 37922 Physician Services 2026807 SE Emergency Physicians 1431 Centerpoint Blvd Ste 100 Knoxville TN 37932 Hospitalist Services 1688995 24 283432 52411 3000 17444 338843 Medical Services 622110 178970440 178970440 Rental Inc - Affiliate 531120 723704 723704 Community Health 900099 381870 381870 180076014 2224001 2224001 2396636 2981158 -584522 -584522 -7682 -576840 154251 -154251 -154251 -154251 137078 110060 27018 27018 Cafeteria Sales 722212 994706 994706 Medical Records 561410 136727 136727 Volunteer Sales 541990 100639 100639 149248 88706 60542 1381320 183308423 180301447 -7682 2675815 66759 66759 25242 25242 362993 362993 54670182 53640461 1029721 1254513 1244370 10143 8667362 8515231 152131 3749831 3680539 69292 8478794 7995584 483210 69906 51721 18185 34693 34693 15256561 15139668 116893 661711 42491 619220 6578959 6378160 200799 5052349 4272694 779655 26045 21861 4184 47832 16793 31039 151462 151462 10569978 10164035 405943 406117 402701 3416 Hospital Supplies 38209951 38209951 Charity Care 16878939 16878939 Bad Debts 11996718 11996718 Sponsorship Expense 1886846 1886846 2246343 2034263 212080 187350086 182816489 4533597 0 3965 3965 -976609 -672568 16061099 15162008 5699223 5292217 1584337 1454871 235490068 147051440 95246256 88438628 80214580 80411248 514760 469441 198347611 190559810 21868580 20577870 269143 206630 198057 116362 6830768 7928530 29166548 28829392 X 169181063 161730418 169181063 161730418 198347611 190559810 X -4041663 -3408982 X X 0 1 1 X 1 1 X RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED 702930 199562 12167 249832 4364 660463 715206 232442 7606 249656 2668 702930 724481 260401 4744 269842 4578 715206 851056 267989 10291 400497 4358 724481 0.13400 0.36100 0.50500 0 1 1 8359000 8359000 110856031 57668957 53187074 9202402 4779952 4422451 102505051 81359126 21145925 4567584 3243405 1324178 88438628 Due to Affiliates, Net 778139 Due to Third Party Payors 3832578 Long-term Deferred Compensation 404156 Long-term Reserve for Workers Comp 2913657 7928530 Description of Intended Use of Endowment Funds: Part V, Line 4: Methodist Hospital Foundation maintains four (4) permanent endowments for the purpose of providing a permanent source of income for the following programs at Methodist Medical Center: The Hospitality Houses, The Wellness Place, and the Jane Manly Quiet Room. The principal of all four permanent endowments will be kept intact in perpetuity. Only the income generated will be distributed to Methodist Medical Center to provide support for the aforementioned programs. Description of Uncertain Tax Positions Under FIN 48: Part X: Note G to the consolidated audited financial statements of Covenant Health, the parent company of Methodist Medical Center, reads in part: At December 31, 2011, tax returns for 2008 through 2011 are subject to examination by the Internal Revenue Service. Covenant has no uncertain tax positions that would require financial statement recognition on disclosure under generally accepted accounting principles at December 31, 2011 or 2010. 1 1 1 X 1 X 1 1 1 0 1 1 13492620 3858416 9634204 0.05490 37247690 25723381 11524309 0.06570 105023 52416 52607 0.00030 50845333 29634213 21211120 0.12090 244741 995 243746 0.00140 20032 0 20032 0.00010 5667151 2724474 2942677 0.01680 69567 0 69567 0.00040 6001491 2725469 3276022 0.01870 56846824 32359682 24487142 0.13960 8665 0 8665 0.00000 6710 0 6710 0.00000 39020 0 39020 0.00020 3421 0 3421 0.00000 2151 0 2151 0.00000 1630 0 1630 0.00000 10153 0 10153 0.00010 71750 71750 0.00030 0 11996718 3275104 54291896 54890704 -598808 X 1 1 1 1 Methodist Medical Center

990 Oak Ridge Turnpike Oak Ridge TN 37830

X X X Methodist Medical Center 1 1 1 200.000000000000 1 300.000000000000 1 X X X 1 1 X X 1 0 1 X 0 0 10 MMC Radiation Oncology Center

102 Vermont Avenue Oak Ridge TN 37830

Radiation Therapy Center Methodist Diagnostic Center

944 Oak Ridge Turnpike Oak Ridge TN 37830

Diagnostic Imaging and Lab Services Oak Ridge Breast Center

3rd Floor Cheyenne Ambulatory Center Oak Ridge TN 37830

Breast Imaging Center Methodist Therapy

991 Oak Ridge Turnpike Oak Ridge TN 37830

Physical, Occupational & Speech Therapy Methodist Sleep Diagnostic Center

990 Oak Ridge Turnpike Oak Ridge TN 37830

Sleep Diagnostic Center MMC Wound Treatment Center

160A West Tennessee Avenue Oak Ridge TN 37830

Wound Care & Hyperbaric Oxygen Clinic MMC Healthworks

Suite L-50 988 Oak Ridge Turnpike Oak Ridge TN 37830

Occupational Health Services MMC Cardiac Rehab Center

Suite 360 Westmall Medical Park Oak Ridge TN 37830

Cardiac Rehabilitation The Wellness Place at Methodist

160C West Tennessee Avenue Oak Ridge TN 37830

Diabetes, Congestive Heart Failure, Chest Clinic Methodist Physical Therapy-Lake City

110 Industrial Park Lane Lake City TN 37769

Physical Therapy Part I, Line 6a: Covenant Health, the parent company of Methodist Medical Center and other affiliated acute care hospitals, prepares an annual Report to the Community on behalf of the entire system. Part I, Line 7: Amounts on Lines 7a-7c 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 $1,886,846 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 $ 11996718. Part II: Methodist Medical Center ("MMC") 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 due to lack of education and jobs.MMC gives of its time and finances to provide programs and support for the youth in and around Oak Ridge. M*A*S*H Camp MMC is a free hands-on healthcare careers camp for high school-age teens held during the summer which features team building projects, job shadowing and hands-on lab activities. Financial contributions support educational programs of the Oak Ridge Public Schools. In addition, the hospital's administrator serves on the board of the Oak Ridge Public Schools Education Foundation. In addition Methodist Medical Center supports the community building activities of its parent company. 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. Contributions made in 2011 were made to or designated for: Children's group homes Temporary housing for the homeless Low-income housing projects Community support organizations Youth mentoring programs After-school programs Early childhood literacy projects Community leadership training Advocacy for health care improvements Part III, Line 4: Note B to the 2011 Audited Consolidated Financial Statements of the Covenant Health system, of which Methodist Medical Center is a member, reads: "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. Operations for 2011 and 2010 include an estimated provision for bad debts, included in Supplies and Other in the Consolidated Statements of Operations and Changes in Net Assets. 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."Bad debt expense on Part III, Line 2 is the amount recorded in the organization's financial statements. 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. Part III, Line 8: Costing Methodology: Methodist Medical Center used a combination of sources in calculating Medicare allowable costs on Part III, Line 6 including its cost accounting system, general ledger accounting system, and facility-specific analyses and calculations.Community Benefit: Methodist Medical Center is the sole hospital in Anderson County providing a full range of healthcare services. Due to physician shortages, a diverse population, and a higher than average emergency service utilization in the community in which Methodist Medical Center is located, the Medicare shortfall should be treated as community benefit. 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. Methodist Medical Center Part V, Section B, Line 13g: Please see the explanation to Part VI, Line 3. Methodist Medical Center Part V, Section B, Line 19d: Please see the explanation to Part III, Line 9b. Part VI, Line 2: Methodist Medical Center actively addresses a variety of identified needs in the community through its relationships with community based groups including the local health council, public health department, school systems, health coalitions, inter-agency council, and health-related not-for-profit organizations. Additionally, the East Tennessee 2-1-1 Information and Referral system is able to provide a profile of the health and social services most requested by the citizens of each county. This information serves as an ongoing assessment of basic health and human service needs and of what resources are lacking in each community. Part VI, Line 3: Methodist Medical Center posts signs in its emergency room lobby, outpatient registration area, and Cheyenne Ambulatory Center registration area that state: Methodist Medical Center, a member of Covenant Health, serves the community by improving the quality of life through better health. It is our philosophy that no one shall be denied medically necessary services based upon an inability to pay for those services. Applications for patients seeking financial assistance for medically necessary services are available during the registration process or in our Cashier's Office. Please ask our registration staff or contact the business office if you wish to apply for financial assistance. Cashier office hours are Monday through Friday, 8 a.m. to 4:30 p.m. Thank you for allowing us to serve your healthcare needs. We trust you will be very satisfied with your care. Methodist Medical Center Administration Part VI, Line 4: Methodist Medical Center defines its primary market as the counties of Anderson and Roane in East Tennessee. Anderson is a bedroom community to the metropolitan Knoxville area but is itself a rural county. Methodist is the only hospital in Anderson County but shares its primary market with Roane County Medical Center in bordering Roane County. According to internal hospital data for 2011, about 43% of the inpatient discharges were Anderson County residents, and 22% were Roane County residents.The following statistics are taken from 2008 data of the U.S. Census Bureau. The combined two-county population totals about 129,000 people and is predominantly female (52%) and Caucasian (94%). Anderson County residents have a median age and income of 39 years and $35,483 per household, while the figures for Roane County residents are 40 years and $41,000 per household. Anderson County has a higher percentage (17%) of its population over the age of 65 than many of its peer counties. Twenty-two percent of the county's residents are under the age of 18. In 2009, the total percentage of persons living below the poverty level was 16%, and the unemployment rate was 10%.According to a recently released study by the Robert Wood Johnson Foundation/ University of Wisconsin Population Health Institute, Anderson County residents have the following health indicators that are above the national benchmarks: Anderson - TN - National Adult Smoking: 23% - 24% - 15% Adult Obesity: 30% - 31% - 25% Excessive Drinking: 10% - 9% - 8% Teen Birthrate: 53 - 55 - 22 of every 1,000 teenage girls Poor or Fair Health: 16% - 19% - 10% Part VI, Line 5: Methodist Medical Center (MMC), in conjunction with its parent company, Covenant Health, uses any available surplus of receipts over disbursements to expand and modernize the facility and to support the education of healthcare professionals, both of which serve to improve patient care and serve the unmet needs of the community.Covenant Health's Board of Directors serves as MMC's board. It is comprised of independent community leaders with diverse educational and professional backgrounds. The board sets policies and provides oversight of MMC.MMC maintains an open medical staff, with privileges available to all qualified physicians. Additionally, the hospital operates an active and accessible emergency department that accepts all patients regardless of ability to pay. Part VI, Line 6: Methodist Medical Center of Oak Ridge (MMC), 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.Methodist is one of the first hospitals in East Tennessee to offer cutting-edge treatments and technologies that benefit people with life-threatening aneurysms; severely damaged knee, hip and shoulder joints; sudden heart failure; and non-healing wounds.The medical center is among the first hospitals in the nation to open comprehensive chest and breast clinics that have reduced the waiting time between suspicion of cancer and beginning of treatment from weeks or months to days. It was also the first hospital in the area to implement a hypothermia protocol which lowers a patient's body temperature after cardiac arrest to reduce the risk of brain damage. Methodist is also the only medical center in East Tennessee to offer left ventricular assist device support for cardio septic shock and in high-risk heart procedures.A 301-bed regional medical center, Methodist serves an area that includes nearly 200,000 people in Tennessee and Kentucky. Doctors trained in more than 30 specialties ranging from open heart and neurosurgery to orthopedics and vascular care provide care. This staff represents one of the highest percentages of board-certified physicians in the region. In 2011, Methodist Medical Center earned national recognition for its clinical and service excellence. In July 2011, Methodist was ranked by U.S. News & World Report as No. 1 hospital in Knoxville metro area. The medical center was also one of only 28 out of 1,350 hospitals across the country to receive VHA, Inc.'s Leadership Award for Clinical Excellence held May 2011. The medical center was also awarded the 2011 Gold Performance Award from American College of Cardiology ACTION Registry for urgent heart care that is 25 minutes faster than the national benchmark. Methodist ranks in the top 11% across the nation for core measures, while its joint replacement and oncology services also rank in the top 10% nationwide for overall quality of care by Professional Research Consulting (PRC).Unique Services:--New 30-bed ortho-neuro unit with specialty joint destination center for hip and knee replacement patients.--New electrophysiology services for minimally invasive cardiac procedures and diagnostic technology such as a 64-slice CT which can capture images of the heart and coronary arteries in as little as five heartbeats.--Emergency and cardiac care collaboration yielding average door-to-balloon times which beat the national benchmark of 90 minutes by more 25 minutes.--Fully-accredited sleep diagnostic center staffed with a multi-boarded and fellowship trained physician and a clinical team comprised 100% of registered polysomnographic technicians.--The first dedicated wound treatment center in the greater Knoxville area to offer hyperbaric oxygen technology to treat chronic non-healing wounds.--Fully-deployed surgical robotics program featuring the latest technology for heart, lung, gynecological and prostate procedures.--Critical care program offering leading-edge and life-saving treatments for bloodstream infections and brain injuries associated with heart attacks.--Hypothermia protocol which lowers a patient's body temperature after cardiac arrest to reduce the risk of brain damage.--Left ventricular assist device support for cardio septic shock and in high-risk heart procedures.--One of the first comprehensive chest and breast clinics of its type in the nation--now reducing the time between discovery of possible cancer and treatment from weeks to days.--Individualized occupational, physical and speech therapies, including neurological, orthopedic, vestibular and pediatric rehab.--Regional cancer center offering image-guided radiation therapy, a nationally recognized disease management program, access to clinical trials, personalized patient navigator assistance and formal pain management program and the most experienced provider of high dose rate brachytherapy for women with cervical, uterine and vaginal cancer.Integrated ServicesAs a system, Covenant Health assures that business processes are in place at each facility to measure and report quality, to increase the role of compliance, and to integrate risk management, utilization review, peer review, mandatory reporting and quality improvement into one cohesive function. In this way the system is able to use analytic tools to help identify any systemic inability to satisfy the various requirements on the part of the facilities.MMC 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 which 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, cancer treatment, home health and hospice services are provided by affiliated entities. The Covenant Health system also enhances the patient's access to care through the provision of outpatient services in a variety of settings located throughout the service area.--A majority of Roane Medical Center's ER patients requiring transfer are sent to Methodist.--Methodist transfers over 50% of its patients who need home health care to Covenant Homecare.--Fortress Corporation manages Methodist's physician office buildings.--Covenant Medical Managements manages the hospital's employed physicians.--Covenant Health's corporate finance department completes the medical center's tax returns and cost reports and reports financials to the Board, etc.--Covenant Health's corporate billing office bills the medical center's services to patients and insurance companies.--Methodist's laboratory performs certain lab testing for other Covenant facilities.--Methodist's Capacity Management Center takes calls for the Covenant Rapid Access Center for the system at night.Foundation Support:Methodist Medical Center Foundation was established in 1990 to acquire and accept charitable gifts for Methodist Medical Center to help all those in need receive the highest quality of care regardless of the ability to pay. The Foundation is a separate, non-profit corporation which is governed by a volunteer Board of Directors, each of whom is a recognized leader in the communities MMC serves. Signature Foundation events such as Casino Night, Diva Day, Acorn Classic Golf Tournament and Holiday Lights for Health make it possible for the medical center to provide many important services and technologies to the community including:--Free lodging through the Hospitality Houses for patients and families far from home,--Assistance to patients, families or employees who find themselves in desperate situations, --Support of cancer and palliative care programs, advanced cardiac and robotics technology--Education and scholarship support for medical center employees, and--A special fund for the greatest area of need.Through this combination of resources and the collective development, implementation and monitoring clinical protocols and other improvement initiatives, the affiliated entities of Covenant Health are able to deliver higher quality care in a more efficient manner than could be achieved working independently. 1 Oak Ridge Chamber of Commerce 1400 Oak Ridge Turnpike Oak Ridge TN 37830 620572006 501(c)(6) 10000 Millenium Partnership Program 0 1 Educational Scholarships 28 20000 n/a Procedure for Monitoring Grants in the U.S.: Part I, Line 2: Schedule I, Part I, Line 2: Scholarship recipients must be graduating high school seniors pursuing a health-related career. Applicants are required to provide a personal letter of objectives, provide ACT/SAT scores and a current GPA on a 4.0 scale, two letters of recommendation and be accepted by an accredited college. Students are then required to remain enrolled in school during the scholarship period. All requests for scholarships and contributions are monitored and approved by a Steering Committee (President and Vice-Presidents). X 1 1 0 1 0 0 0 0 0 0 0 Anthony L Spezia 0 924445 0 326250 0 1241947 0 9800 0 15907 0 2518349 0 759468 John T Geppi 0 393584 0 237900 0 73983 0 9800 0 19248 0 734515 0 0 Michael R Belbeck Jr 0 275817 0 104450 0 33042 0 9800 0 24152 0 447261 0 0 Julie G Utterback 130333 0 14000 0 9323 0 6273 0 23238 0 183167 0 0 0 Stephen E Ellis 179947 0 20000 0 3268 0 12213 0 13668 0 229096 0 0 0 Shane West 171655 0 0 0 7316 0 11024 0 16159 0 206154 0 0 0 Susan K Harris 125335 0 16350 0 18301 0 6349 0 13491 0 179826 0 0 0 Part I, Line 1a Part I, Line 1a: Tax gross-up payments are provided to certain executives and managers. These are treated as taxable compensation to the recipient. Part I, Line 4b Part II, Anthony L. Spezia (compensated by Covenant Health, parent organization) - Column (B)(iii): Other reportable compensation. $1,010,702 of the total amount reported as "other reportable compensation" under Column (B)(iii) is the total amount accrued during years 2007, 2008, 2009, 2010 and 2011 under a 457(f) deferred compensation plan established for Mr. Spezia in year 2000. Amounts accrued in years 2007 through 2010 have been previously reported and included in compensation on Form 990 for the applicable year. Although all deferred amounts became fully vested and taxable in 2011, only 2007 accruals were distributed to Mr. Spezia in 2011. Accruals for 2008-2011 are distributable in future years. Consequently, the $1,103, 451 is comprised of the following: $586,516 accrued and previously reported as income on Form 990 for years 2008, 2009, and 2010; which is fully vested but has not been distributed $235,299 distributed in 2011, of which $172,952 was previously reported as income on Form 990 for year 2007, the remainder representing earnings on the deferred amount distributed $188,887 accrued in 2011, which is fully vested but has not been distributed Supplemental Information Part III Part I, Line 3: Covenant Health, the parent company of Methodist Medical Center, used one or more of the methods listed in establishing the compensation of Anthony L. Spezia. Please see the statement to Core, Part VI, Section B, Line 15a on Schedule O. Organization Mission Statement Form 990, Part III, Line 1 In 1996 two healthcare systems - Fort Sanders Alliance and MMC Healthcare System of Oak Ridge consolidated to form what is known today as Covenant Health. The two organizations, which had a combined legacy of more than 100 years of service in East Tennessee, united with the strong belief that by working together, they could do more for their communities than they could alone. Nearly two decades later, the connections Covenant Health has forged with East Tennessee communities have strengthened as the health system has worked in tandem with area leaders, businesses and organizations to provide excellent local healthcare. In recent years Covenant Health has opened replacement hospitals, outpatient centers and clinics; made innovative technology and medical advances available, and achieved national recognition for quality care and service excellence. As a tax-exempt health system, Covenant Health reinvests every dollar for the benefit of the community, not profitability or shareholder interests. As the largest private employer in the greater Knoxville area, Covenant Health's staff of more than 10,000 supports local communities by purchasing goods and services, participating in local activities, and contributing volunteer time and leadership in local organizations. Covenant Health is both committed to and connected to the communities it serves, as it lives out the health system's mission. COVENANT HEALTH'S MISSION We serve the community by improving the quality of life through better health. COVENANT HEALTH'S VALUES In service to God and community, we value: Integrity, Quality, Service, Caring, Developing People, and Using Resources Wisely. COVENANT HEALTH'S VISION Covenant Health's clinical and service excellence will make us the first and best choice for patients, employees, physicians, employers, volunteers, and the community. COVENANT HEALTH MEMBER ORGANIZATIONS AND SERVICES The Covenant Health System ("the System") provides comprehensive health care services throughout East Tennessee. Headquartered in Knoxville, Tennessee, Covenant Health and its affiliates seek to provide affordable, superior healthcare to patients through continued operation of both acute care and non-hospital programs. The System includes seven acute care hospitals with a total of more than 1,700 licensed beds, a behavioral health hospital, and numerous outpatient services and clinics. The System also includes specialty providers of behavioral, oncology and rehabilitation services, along with home health care, physician clinics, community wellness programs and managed care products and services. Member organizations and programs are listed by name below. 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 Outpatient and Specialty Care Departments, and Joint Ventures: Fort Sanders Sevier Nursing Home Fort Sanders West Diagnostic Center Fort Sanders West Outpatient Surgery Center Morristown Regional Diagnostic Center Patricia Neal Rehabilitation Center Peninsula Outpatient Centers Surgery-Endoscopy Center of Morristown Foundations: Fort Sanders Foundation Methodist Medical Center Foundation Morristown-Hamblen Hospital Foundation Thompson Cancer Survival Center Foundation CONNECTING WITH OUR COMMUNITIES THROUGH QUALITY CARE Covenant Health delivers quality care in local settings, with services designed to meet the needs of our communities. The acute care hospitals located in Knoxville and surrounding areas comprise the foundation of the health system. They offer comprehensive care provided by board certified medical staffs, including emergency care, specialty services, and a full range of diagnostics and treatment. When specialty care is needed, Covenant Health provides: * Innovative cancer care and technologies to deliver radiation therapy and other cancer treatment at facilities affiliated with Thompson Cancer Survival Center in Knox and surrounding 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. * Rehabilitation services including physical therapy, speech therapy, sports medicine, and specialized therapy such as hand therapy and vestibular (balance) rehabilitation are offered at a dozen Covenant Therapy Centers locations. In addition, more than 30 affiliated physician clinics throughout the region offer convenient access to primary and specialty care. BEHAVIORAL HEALTH - A COMMITMENT TO ESSENTIAL SERVICES Covenant Health provides comprehensive behavioral health services under the auspices of Peninsula, a Division of Parkwest Medical Center ("Peninsula"). Peninsula operates a behavioral health hospital and outpatient centers for treatment of addictive behaviors, depression, and other mental health issues. With 75 years of combined experience, Peninsula organizations have helped thousands of people recover from disorders and dependencies and lead healthy, positive and productive lives. In 2012 the State of Tennessee announced the closing of Lakeshore Mental Health Institute in Knoxville, as Tennessee moves toward more community-based mental health services. In response, Covenant Health announced that Peninsula would do everything it could to help the vulnerable population Lakeshore served. Peninsula pledged to take as many Lakeshore patients as it feasibly could, adding staff (including some former Lakeshore employees) and expanding facilities to handle the expected influx. It is not the first time the State has sought Peninsula's help. When Lakeshore closed its child and adolescent program in 2004, Peninsula became the only child and adolescent inpatient psychiatric facility between Chattanooga and Johnson City, Tennessee. COMMUNITY CELEBRATES PROGRESS FOR NEW ROANE COUNTY MEDICAL CENTER "One Community. One Hospital" is the theme of progress for the new Roane County Medical Center, a replacement hospital for the current facility in Harriman. The new facility is under construction near the Midtown exit off I-40, and scheduled to open in February 2013. About 200 people attended a mid-progress celebration in Spring 2012 at the hospital construction site. Covenant Health President Tony Spezia welcomed guests and introduced dignitaries, including legislative representatives, Roane County leaders, Covenant Health board members, and others. The celebration included a time capsule where speakers could place items that represent the legacy and future of Roane County Medical Center. Items will be placed in the time capsule until it is sealed in February 2013. Gaye Jolly, the President and CAO of Roane County Medical Center, said employees and physicians look forward to continuing recent quality accomplishments and the hospital's tradition of excellent care for every patient in the new facility. Key features of the new hospital include all private, modern patient rooms with large natural light windows, 15 emergency suites, technologically-advanced surgery suites, and enlarged and modern nursing units. Patient drop-off and pick-up areas will be available, as well as free parking in more than 500 parking spots. Patients and visitors can enjoy freshly prepared meals in the new Three Rivers Cafe. The new medical center campus will be wired with new and innovative technologies including computer systems, information technologies and hardware for transition to electronic medical records. Adjacent to the hospital will be a new professional office building, which will be home to medical professionals including Thompson Oncology Group, Roane Medical Patricia Neal Outpatient Center, and Roane Medical Cardiopulmonary Rehabilitation. Thompson Oncology Group will be staffed with board-certified oncology physicians, who will have access to nationally-acclaimed multidisciplinary cancer care through Thompson Cancer Survival Center. Roane Patricia Neal Outpatient Center will feature an in-ground therapy pool complete with a built-in treadmill, and Roane Cardiopulmonary Rehabilitation will offer a new, state-of-the-art telemetry monitoring system. CARDIAC INNOVATIONS FOR THE HEARTS OF EAST TENNESSEE Innovative Valve Centers Offer Specialty Cardiac Care The most complex cardiovascular problems can now be treated in Knoxville. Covenant Health is debuting Valve Centers at Parkwest, Fort Sanders Regional, and Methodist Medical Centers. Valve centers are staffed by experienced cardiovascular surgeons, cardiologists, nurses and other professional medical staff who are educated in the latest protocols. The coordination of care made possible by the Valve Centers will help Covenant Health hospitals deliver better outcomes, with fewer complications and higher survival rates. A new $2.6 million "hybrid" operating room opened this spring at Parkwest Medical Center and is used by Covenant Health physicians primarily for cardiac and vascular procedures. A hybrid operating room combines the best of a traditional surgical suite with large imaging equipment such as real-time X-ray and CT in a sterile setting. Hybrid operating rooms allow surgeons to perform combined open, minimally invasive, image-guided and/or catheter-based procedures in the same operating room. Patients facing aortic aneurysm surgery or aortic valve replacement may have a less invasive option and a quicker recovery. COVENANT HEALTH PERFORMS REGION'S FIRST BREAKTHROUGH TAVR PROCEDURE What if a heart valve could be replaced without surgically opening the chest cavity? That is now a reality for some patients. Parkwest Medical Center is one of only 140 sites in the nation and the first Knoxville hospital to offer Trans Aortic Valve Replacement (TAVR), an innovative procedure to replace diseased aortic valves. TAVR is appropriate for some high-risk patients with severe aortic stenosis (narrowing of the aortic valve opening) who are not candidates for surgery. In the United States, TAVR continues to be studied as part of the PARTNER (Placement of Aortic Transcatheter Valves) trial which studied inoperable patients with severe symptomatic aortic stenosis. Covenant Health has been selected by Edwards Lifesciences as the only entity in Knoxville to have surgeons trained in the TAVR procedure. STANDING STRONG FOR THE COMMUNITIES WE SERVE As a tax-exempt organization governed by a voluntary Board of Directors, Covenant Health reinvests excess revenues after expenses in improving patient care. Since 2000 Covenant Health has invested nearly $1 billion in facilities, technologies, programs and services. No other health system in East Tennessee in this decade has approached Covenant Health's investment in clinical and medical information technology, and new, renovated and expanded hospitals and services. The current economic environment has been particularly difficult and challenging for healthcare organizations, and has included cuts in reimbursement for services and the sale or closure of hospitals in our region. Covenant Health is committed to standing strong, and to the wise use of the health system's resources. Despite operating results at roughly a break-even level over the last five years, a strong balance sheet has allowed Covenant Health to continue providing substantial care to those with limited resources. In 2011 Covenant Health provided more than $150 million in charity and uncompensated care. CONNECTING MEDICAL COMMUNITIES WITH ADVANCED TECHNOLOGY When one thinks of technology, machines are often thought of - not only imposing-looking diagnostic equipment, but smaller electronic tools such as computers and hand-held devices. Often the concept of technology revolves around the hardware seen in healthcare settings. Using Technology to Achieve Quality Covenant Health's data center includes over 850 servers and 200 terabytes of storage capacity that are available to each hospital across the system via a high-speed gigabit network. The system is progressing toward a national meaningful use mandate, where healthcare organizations are challenged to use data in ways that improve patient safety and outcomes while paying close attention to information security. Some Covenant Health meaningful use initiatives include computerized patient order entry, real-time medication alerts to prevent allergy or drug interactions, and automated evidence-based care processes so that physicians and caregivers have immediate access to information about best practices. Other initiatives include computer-generated review and reconciliation of the patient's medications upon admission to the hospital, and delivery of relevant clinical information to the case management system in order to plan appropriate post-discharge care. Beyond Health System Boundaries Covenant Health is also leading the charge to expand technology benefits by participants beyond the system. The East Tennessee Health Information Network is a collaboration of leaders at other tax exempt health systems to create what will eventually be an electronic community of care that will encompass 17 counties in East Tennessee. The local initiative supports national efforts to move to electronic health records and create secure networks for sharing information through a health information exchange. REACHING OUT TO CREATE A HEALTHIER EAST TENNESSEE To improve the health of the community, Covenant Health reaches beyond hospital walls. Local initiatives and partnerships create opportunities to interact with people of all ages and encourage healthier lifestyles. * In Knoxville nearly 7,000 people participated in the 2012 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 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's Body Works program makes community fitness classes convenient, affordable, and fun. With more than 80 classes offered weekly throughout East Tennessee, Body Works offers a variety of exercise options for adults of all ages and fitness levels. * 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 Passport is a free membership program for adults age 50 and older. The program encourages healthy, active lifestyles through a newsletter, community presentations, health screenings, and travel/recreation opportunities. Nearly 25,000 members are currently enrolled. * Covenant Health annually sponsors M*A*S*H* Camp at Methodist Medical Center to give high school students a sneak preview of healthcare career options and a chance to job shadow professionals in several hospital departments. * 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. * Fort Sanders Regional Medical Center's Patricia Neal Rehabilitation Center leads the Innovation Recreation Cooperative, a collaboration of groups and individuals who help disabled persons enjoy leisure and recreation activities such as water skiing and cycling. * Fort Loudoun Medical Center sponsors "Let's Move Day" for area children and their families, featuring a day of games and activities, healthy snacks, and fitness checks. HEARTFELT CONNECTIONS INCREASE AWARENESS OF WOMEN AND HEART DISEASE The latest advancement in reducing heart disease in women is not a new test or treatment. Women can dramatically reduce their risks of developing heart disease by doing just four things - eating right, being physically active, not smoking, and maintaining a healthy weight. According to the most current research 62 percent of women are aware that heart disease is the number one killer of women. But many women still fail to take their risks personally or seriously. The Heart Truth Champions of Covenant Health are reaching out to help women understand that heart disease risk is a personal thing. Covenant Health was selected by the National Heart Lung and Blood Institute and the Office on Women's Health as one of a handful of sites across the United States to initiate a Heart Truth Champions program. Twelve Heart Truth Champion volunteers were selected based on their involvement in community health education activities, and their willingness to create and participate in local events to raise awareness of women and heart disease. SIX NUMBERS AT THE HEART OF GOOD HEALTH What you measure, you improve. That was the goal of Know Your Six, Chicks, a year-long community campaign to help women fight heart disease through awareness of six measures of heart health: blood pressure, cholesterol, fasting glucose, body mass index (BMI), physical activity and sleep habits. The campaign included heart health information, Lunch and Learns, community screenings, an interactive website and online health assessment, and mobile blood pressure screening units placed at local businesses. Know Your Six, Chicks is estimated to have directly reached just over 10,000 participants. Local businesses played an important role in Know Your Six, Chicks, providing locations for mobile Heart Centers and even providing spokespersons for the initiative. In addition to business participation, Know Your Six, Chicks also reached out to community centers, church locations, cultural events and trade shows - and expanded to include men in its outreach efforts. CONNECTING TO THE FUTURE THROUGH EDUCATION Covenant Health actively supports education programs for future nurses and other healthcare professionals. One example is the health system's partnership with Tennessee Wesleyan College-Fort Sanders Nursing, ("TWC"). The program offers a bachelor's degree in nursing through TWC in Athens, Tennessee, with classroom and clinical training opportunities at the school's Knoxville campus and at Covenant Health organizations. The collaboration has been in place for more than 10 years. This past Spring of 2012, more than 70 nursing students graduated from TWC. In summer 2012 the program launched an online RN-to-BSN degree designed especially for professional nurses who want to earn a baccalaureate degree while still continuing their nursing responsibilities. In addition to the TWC partnership, Covenant Health provides clinical training opportunities for students in health career programs at other area universities, community colleges and post-secondary schools, and has affiliation agreements with more than 100 schools across the country. COMMUNITY LEADERS PLAY KEY ROLES IN FOUNDATIONS' EVENTS AND PROGRAMS The Covenant Health Office of Philanthropy coordinates the philanthropic contributions of individuals and businesses throughout East Tennessee and beyond. Fund raising efforts are coordinated by four foundations: Fort Sanders Foundation, Methodist Medical Center Foundation, Morristown-Hamblen Hospital Foundation, and Thompson Cancer Survival Center Foundation. During the past year these foundations received contributions of about $4 million to help provide new equipment and facilities at the hospitals, staff training, and provide assistance to patients. While the Foundations coordinate community events and fund raisers, local community involvement is critical to the success of the events. CARING FOR THOSE UNABLE TO PAY One of the most tangible expressions of the charitable purpose of Covenant Health is providing care to people in need. As a tax-exempt 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. 2011 Summary of Community Benefit Totals for Uncompensated Care* Charity Care. . . . . . . . . . . . . . .$44 million TennCare . . . . . . . . . . . . . . . . $52 million Medicare . . . . . . . . . . . . . . . . . $60 million Total Uncompensated Care. . $156 million *Care which costs more to provide than reimbursements from state and national programs cover. Covenant Health provides community benefit that far exceeds the value of its tax-exempt status. Form 990, Part VI, Section B, line 11 Covenant Health is a large, integrated health system which files twelve Forms 990. Methodist Medical Center is one of those twelve entitites. 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 employee handbook to all employees. The handbook 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 Methodist Medical Center, 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 2011 Form 990 of Covenant Health, EIN 62-1646734, parent company of Methodist Medical Center. Form 990, Part VI, Section B, Line 15b: Base salary and annual bonus opportunities for Michael Belbeck, 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 insure that total compensation for each executive is reasonable and within a fair market value range. Salary ranges are based upon the recommendations of the consultant made after comparison with similar jobs in similar size health systems across the nation. Bonuses are recommended by the CEO and approved by the Committee conditioned upon receipt of a written opinion from the consultant that total compensation for the President/CAO is 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 0-35% of base salary based upon system performance and accomplishment of certain targets established by the CEO. Base salary and annual bonus opportunities for Julie Utterback, VP-Financial Services, are based on established targets to insure that total compensation for 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) web site. Any member of such a repository has access to these financial statements. In addition, Methodist Medical Center 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 and Part VII Anthony L. Spezia Covenant Health 100 Fort Sanders West Blvd. Knoxville, TN 37922 John T. Geppi, Larry Mauldin and all Directors Covenant Health 1420 Centerpoint Blvd, Bldg C Knoxville, TN 37932 All other persons listed in Part VII, Section A may be contacted at the organization's address, which is: Methodist Medical Center 990 Oak Ridge Turnpike Oak Ridge, TN 37830. Form 990, Part VI, Section B, Line 16b: Methodist Medical Center (MMC) entered into a partnership agreement with Oak Ridge Healthcare Associates, LLC (ORHA) on October 15, 2010 for the purpose of developing, owning, and operating an assisted living community in Oak Ridge, TN. When complete, ORHA will be the managing partner of the assisted living community. This joint venture is insignificant when compared to MMC's overall operations. The transaction, as well as any joint venture entered into by the hospital, is reviewed by executive management and legal counsel. Additionally, all revenue is monitored to determine whether it creates unrelated business income for the hospital and will be reported accordingly. Form 990, Part VII, Section A, Column B The President/CEO, EVP/CFO and Board of Directors serve Covenant Health (EIN 62-1646734), parent company of an integrated health care delivery system, of which Methodist Medical Center is a member, as a whole. The hours these individuals devoted to the system in 2011 are reported on Covenant Health's Form 990, Part VII. Changes in Net Assets or Fund Balances: Form 990, Part XI, line 5: Net unrealized losses on investments: -3,408,982. 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. MMC Healthworks LLC 988 Oak Ridge Turnpike Ste L-50 Oak Ridge TN 37830 020712412 Occupational health TN 1123114 1680953 Methodist Medical Center Covenant Health 1420 Centerpoint Blvd Bldg C Knoxville TN 37932 621646734 Supporting organization TN 501(c)(3) Line 11b, II N/A 0 Covenant Homecare 3001 Lake Brook Blvd Ste 101 Knoxville TN 37909 621623114 Home health services TN 501(c)(3) Line 9 Covenant Health 0 Fort Loudoun Medical Center 550 Fort Loudoun Medical Ctr Dr Lenoir City TN 37772 621373691 Acute care hospital TN 501(c)(3) Line 3 Covenant Health 0 Fort Sanders Regional Medical Center 1901 W Clinch Ave Knoxville TN 37916 620528340 Acute care hospital TN 501(c)(3) Line 3 Covenant Health 0 Fort Sanders Foundation 280 Ft Sanders West Blvd Ste 100 Knoxville TN 37922 621748601 Fundraising and patient outreach TN 501(c)(3) Line 11a, I Covenant Health 0 Fort Sanders Perinatal Center Trustees Tower Ste 304 501 19th St Knoxville TN 37916 043760551 High risk obstetrical services TN 501(c)(3) Line 3 Covenant Health 0 LeConte Medical Center 742 Middle Creek Road Sevierville TN 37862 621114867 Acute care hospital TN 501(c)(3) Line 3 Covenant Health 0 Morristown-Hamblen Hospital Assc dba M-H Healthcare System 908 W 4th North Street Morristown TN 37814 620545814 Acute care hospital TN 501(c)(3) Line 3 Covenant Health 0 Parkwest Medical Center 9352 Park West Blvd Knoxville TN 37923 581897274 Acute care hospital and behavioral health services TN 501(c)(3) Line 3 Covenant Health 0 Roane Co Medical Ctr dba Roane Medical Center 412 Devonia St Harriman TN 377482009 680673354 Acute care hospital TN 501(c)(3) Line 3 Covenant Health 0 Thompson Cancer Survival Center 1915 White Ave Knoxville TN 37916 621250943 Cancer treatment facility TN 501(c)(3) Line 3 Covenant Health 0 Thompson Oncology Group 1915 White Ave Knoxville TN 37916 621619239 Oncology services TN 501(c)(3) Line 3 Covenant Health 0 Methodist Medical Center Foundation 990 Oak Ridge Turnpike Oak Ridge TN 37830 621414205 Fundraising and patient outreach TN 501(c)(3) Line 11a, I N/A 0 Thompson Cancer Survival Center Foundation 1915 White Ave Knoxville TN 37916 582130450 Fundraising and patient outreach TN 501(c)(3) Line 11a, I Thompson Cancer Survival Center 0 Morristown Regional Cancer Center LLC 908 W 4th North Street Morristown TN 37814 200916364 Cancer treatment facility TN 501(c)(3) Line 3 Morristown-Hamblen Hospital Association 0 Endoscopy Center of Oak Ridge LLC 988 Oak Ridge Turnpike Ste 200 Oak Ridge TN 37830 621667358 Outpatient medical facility TN N/A Fort Sanders West OP Surgery Center 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 Assc of the Meridian Health OP Surgery Ctr LLC 908 W 4th North St Morristown TN 37814 861167487 Outpatient surgery center TN N/A Tellico Senior Living LLC PO Box 308 Caryville TN 37714 364353505 Retirement village TN N/A KOSC Properties LLC 260 Ft Sanders W Blvd Ste 200 Knoxville TN 37922 262444076 Building ownership TN N/A Knoxville Orthopaedic Surgery Center LLC 260 Ft Sanders W Blvd Ste 200 Knoxville TN 37922 262437385 Orthopaedic surgery TN N/A Fortress Corporation 280 Ft Sanders West Blvd Ste 214 Knoxville TN 37922 621308885 Management company TN N/A C Covenant Medical Management Inc 280 Ft Sanders West Blvd Ste 205 Knoxville TN 37922 621282917 Physician practice management TN N/A C KASC Acquisition Company Inc 1420 Centerpoint Blvd Bldg C Knoxville TN 37932 263400984 Real estate holdings TN N/A C Knoxville Heart Group 1819 Clinch Ave Ste 108 Knoxville TN 37916 271528941 Cardiology medical practice TN N/A C Morristown-Hamblen Health Services Inc 908 W 4th North St Morristown TN 37814 621588521 Inactive-Dissolved 2/5/2011 TN N/A C 1 0 1 0 0 0 1 0 1 0 0 0 0 1 1 1 1 0 Endoscopy Center of Oak Ridge LLC A 84478 FMV