COVENANT HEALTH: Form 990, tax year 2011

View the entire original 990 at ProPublica ↗

Organization: COVENANT HEALTH (EIN 62-1646734)
Tax period: 2011-01-01 to 2011-12-31
Filed: 2012-11-13
IRS object ID: 201243189349300119
Schema version: 2011v1.2
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 C
Schedule D
Schedule I
Schedule J
Schedule K
Schedule L
Schedule M
Schedule O
Schedule R

Return header ReturnHeader

Field	Value	IRS element (for citing)
Timestamp	2012-11-13T08:03:11-06:00	Timestamp
Tax Period End Date	2011-12-31	TaxPeriodEndDate
Return Type	990	ReturnType
Tax Period Begin Date	2011-01-01	TaxPeriodBeginDate

Filer Filer

Field	Value	IRS element (for citing)
EIN	621646734	EIN

Name Name

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

Field	Value	IRS element (for citing)
Name Control	COVE	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	8655315421	Phone
Date Signed	2012-11-07	DateSigned

Preparer Preparer

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

Field	Value	IRS element (for citing)
Tax Year	2011	TaxYear
Build TS	2016-02-24 21:20:13Z	BuildTS

Form 990 IRS990

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 Fort Sanders West Blvd	AddressLine1
City	Knoxville	City
State	TN	State
ZIP Code	37922	ZIPCode

Field	Value	IRS element (for citing)
Gross Receipts	171608379	GrossReceipts
Group Return For Affiliates	0	GroupReturnForAffiliates
Organization501c3	X	Organization501c3
Web Site	www.covenanthealth.com	WebSite
Type Of Organization Corporation	X	TypeOfOrganizationCorporation
Year Formation	1996	YearFormation
State Legal Domicile	TN	StateLegalDomicile
Activity Or Mission Description	Covenant Health is the parent organization in a community-owned health care system in East Tenn.	ActivityOrMissionDescription
Nbr Voting Members Governing Body	21	NbrVotingMembersGoverningBody
Nbr Independent Voting Members	16	NbrIndependentVotingMembers
Total Nbr Employees	874	TotalNbrEmployees
Total Nbr Volunteers	666	TotalNbrVolunteers
Total Gross UBI	1495503	TotalGrossUBI
Net Unrelated Business Txbl Income	135112	NetUnrelatedBusinessTxblIncome
Contributions Grants Prior Year	217356	ContributionsGrantsPriorYear
Contributions Grants Current Year	264991	ContributionsGrantsCurrentYear
Program Service Revenue Prior Year	72485482	ProgramServiceRevenuePriorYear
Program Service Revenue CY	78068540	ProgramServiceRevenueCY
Investment Income Prior Year	42342688	InvestmentIncomePriorYear
Investment Income Current Year	53992813	InvestmentIncomeCurrentYear
Other Revenue Prior Year	1765437	OtherRevenuePriorYear
Other Revenue Current Year	1112707	OtherRevenueCurrentYear
Total Revenue Prior Year	116810963	TotalRevenuePriorYear
Total Revenue Current Year	133439051	TotalRevenueCurrentYear
Grants And Similar Amnts Prior Year	750368	GrantsAndSimilarAmntsPriorYear
Grants And Similar Amnts CY	608694	GrantsAndSimilarAmntsCY
Benefits Paid To Members Prior Year	0	BenefitsPaidToMembersPriorYear
Benefits Paid To Members CY	0	BenefitsPaidToMembersCY
Salaries Etc Prior Year	43486606	SalariesEtcPriorYear
Salaries Etc Current Year	49879632	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	44614387	OtherExpensePriorYear
Other Expenses Current Year	48226142	OtherExpensesCurrentYear
Total Expenses Prior Year	88851361	TotalExpensesPriorYear
Total Expenses Current Year	98714468	TotalExpensesCurrentYear
Revenues Less Expenses Prior Year	27959602	RevenuesLessExpensesPriorYear
Revenues Less Expenses CY	34724583	RevenuesLessExpensesCY
Total Assets BOY	1038866299	TotalAssetsBOY
Total Assets EOY	1099528246	TotalAssetsEOY
Total Liabilities BOY	715772497	TotalLiabilitiesBOY
Total Liabilities EOY	805301841	TotalLiabilitiesEOY
Net Assets Or Fund Balances BOY	323093802	NetAssetsOrFundBalancesBOY
Net Assets Or Fund Balances EOY	294226405	NetAssetsOrFundBalancesEOY
Info In Schedule O Part III	X	InfoInScheduleOPartIII
Mission Description	Covenant Health operates exclusively as a supporting organization within the meaning of Internal Revenue Code section 509(a)(3). Its mission, which is shared by its member hospitals and other organizations (see Schedule A), is to serve the community by improving the quality of life through better health, regardless of a patient's ability to pay.	MissionDescription
Significant New Program Services	0	SignificantNewProgramServices
Significant Change	0	SignificantChange
Expense	26902989	Expense
Revenue	26902989	Revenue
Description	Information Technology. See Schedule O for additional details.Information Technology: Expenses - $26,902,989; Revenue - $26,902,989.The Information Technology (IT) division of Covenant Health provides all computing equipment and information management related services to Covenant Health facilities. Information management systems and related application support (install, upgrade, help desk) services are available on a 24/7 basis spanning healthcare functions across core patient-care clinical systems, physician, nursing, and associated ancillary systems (lab, radiology, pharmacy, therapy), as well as the supporting business functions encompassing patient accounting, materials management, finance, and human resources. IT also manages a centralized data center (and a backup disaster recovery data center) where the hardware equipment is housed to deliver the computing resources for all clinical/business functions on a 24/7 schedule. Additionally, IT is responsible for management of all PC workstations (desktop, laptop, mobile cart), all client to server internal and external network connectivity, as well as telephone services and telephone equipment (PBX, handsets, cell phones, pagers) across the company. It also facilitates project management activities related to meeting regulatory and quality reporting requirements.Key statistics for the year include: Payroll checks/deposits - 257,488 Pharmacy medication mgmt. system - 2,843,283 orders Total Spam messages blocked - 11,515,549 Network virus attempts blocked - 77,679,162 PCs supported - 7,760 Overall telephone usage - 34,631,262 calls Pathway scheduling application - 629,791 appointments Accounts payable checks - 102,084	Description

Activity2 Activity2

Field	Value	IRS element (for citing)
Expense	8264238	Expense
Revenue	8264238	Revenue
Description	Business Office. See Schedule O for additional details.Business Office: Expenses - $8,264,238; Revenue - $8,264,238.Knoxville Business Office Services is the CBO (Centralized Business Office) for Covenant Health providing accounts receivable management for Fort Sanders Regional Medical Center, Parkwest Medical Center, Fort Loudoun Medical Center, LeConte Medical Center, Methodist Medical Center, and Morristown-Hamblen Hospital Association. These services include, but are not limited to, customer service, payment collection, financial posting, refund processing, and insurance billing and follow-up.During 2011, CBO submitted 914,634 insurance claims totaling $3,420,378,775. Bad debt expense for 2011 was approximately 2.7% of gross revenue with bad debt recoveries/collections totaling $10,159,947. The CBO handled 115,775 incoming phone calls, following-up on over 456,000 open accounts and processed over 2.9 million financial transactions.	Description

Activity3 Activity3

Field	Value	IRS element (for citing)
Expense	7289606	Expense
Revenue	7289606	Revenue
Description	Human Resources. See Schedule O for additional details.Human Resources: Expenses - $7,289,606; Revenue - $7,289,606.The Corporate Human Resources division of Covenant Health provides high quality centralized services to all Covenant Health entities in sourcing and staffing (employment), standardized benefit design and administration, exempt and non-exempt salary system design and delivery, human resources information system administration, employee relations and retention, clinical and non-clinical skill development, leadership and management development, cultural change, leadership succession and continuity, and security. Additionally, Human Resources is responsible for system-wide programs, policies and procedures; regulatory and legal compliance affecting all areas of Human Resources Administration; and contemporary, cost-effective systems and processes to meet organizational strategies, goals and tactics.Through Human Resources, staffing (employement) services assisted in hiring 1,377 employees during 2011. All new hires went through various classroom orientation programs and on-line onboarding processes at the start of employment. Employment Services receives, on average, 1,020 applicants per month. Through the learning and leadership development (LLD) division of Human Resources, Human Resources provided over 363,000 training hours including both e-learning and classroom-based courses. LLD also manages a framework of over 50 identified leadership competencies with all 400+ Covenant leaders accountable for a minimum of 60 hours of developmental training each year. LLD offers more than 100 clinical nursing courses from both in-house and vendor sourcing. They also manages a host of clinical training opportunities including everything from CPR to Advanced Neuro and Neo-natal Intensive Care courses.	Description

Activity Other ActivityOther

Field	Value	IRS element (for citing)
Expense	44262505	Expense
Grants	608694	Grants
Revenue	56038808	Revenue
Description	In addition to the services previously mentioned, support provided by Covenant Health to its member facilities takes on many other forms, some examples of which are: * Executive leadership, strategic planning, and other planning both at the System and organizational level; * Financial, management and advisory services; * Third party reporting; * Integrity compliance program; * Real estate management; * Risk management; * Internal audit; * Asset and liability related treasury management functions; * Procurement; * Clinical quality improvement; * Marketing; and * External reporting.Other services and activities conducted by Covenant Health directly benefit patients and members of the communities served by the Supported Organizations. Some services are aimed at improving the operational efficiency of and the quality of care provided by the Supported Organizations, such as the service of providing sterile packs. Covenant Health Sterile Solutions is the only operation of its kind in the Knoxville area and produces its own surgical sterile packs and distributes them to Supported Organizations. The use of Sterile Packs helps reduce surgical pack supply costs, reduce inventory levels, and helps minimize waste in keeping with the organization's green initiatives. Along with those achievements, sterile packs also help reduce setup time, leaving more time for treating patients and with fewer items to open, there is also a reduced risk of contamination. Another recent service that has become centralized within Covenant Health and offered to the Supported Organization is Medical Transcription. Medical Transcription is an allied health profession, which deals in the process of converting voice-recorded reports, as dictated by physicians or other healthcare professionals, into text format. Other programs have community benefit as their main goal. One example is Covenant Health Senior Services, which assists older adults who are 50 or better in their effort to lead healthier, more independent lives.	Description

Field	Value	IRS element (for citing)
Total Of Other Program Service Exp	44262505	TotalOfOtherProgramServiceExp
Total Of Other Program Service Grnt	608694	TotalOfOtherProgramServiceGrnt
Total Of Other Program Service Rev	56038808	TotalOfOtherProgramServiceRev
Total Program Service Expense	86719338	TotalProgramServiceExpense
Described In501 C3	1	DescribedIn501C3
Schedule B Required	1	ScheduleBRequired
Political Activities	0	PoliticalActivities
Lobbying Activities	1	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	1	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	0	Hospital
Grants To Organizations	1	GrantsToOrganizations
Grants To Individuals	0	GrantsToIndividuals
Schedule J Required	1	ScheduleJRequired
Tax Exempt Bonds	1	TaxExemptBonds
Invest Tax Exempt Bonds	0	InvestTaxExemptBonds
Escrow Account	0	EscrowAccount
On Behalf Of Issuer	0	OnBehalfOfIssuer
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	1	DeductibleNonCashContributions
Deductible Contributions Of Art	1	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	398	NumberFormsTransmittedWith1096
Number W2 G Included	0	NumberW2GIncluded
Compliance With Backup Witholding	1	ComplianceWithBackupWitholding
Number Of Employees	874	NumberOfEmployees
Employment Tax Returns Filed	1	EmploymentTaxReturnsFiled
Unrelated Business Income	1	UnrelatedBusinessIncome
Form990-T Filed	1	Form990-TFiled
Foreign Financial Account	1	ForeignFinancialAccount
Name Of Foreign Country	CA	NameOfForeignCountry
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	21	NbrVotingGoverningBodyMembers
Number Independent Voting Members	16	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

Field	Value	IRS element (for citing)
Info In Schedule O Part VII	X	InfoInScheduleOPartVII

Form990 Part VII Section A Form990PartVIISectionA (34 entries)

TitleTitle	Average Hours Per WeekAverageHoursPerWeek	Individual Trustee Or DirectorIndividualTrusteeOrDirector	OfficerOfficer	Reportable Comp From OrganizationReportableCompFromOrganization	Reportable Comp From Related OrgsReportableCompFromRelatedOrgs	Other CompensationOtherCompensation	Key EmployeeKeyEmployee	Highest Compensated EmployeeHighestCompensatedEmployee
Anthony L Spezia
President & CEO	50.00	X	X	2492642	0	25707
Dr Richard Brinner
Director	1.00	X		0	0	0
Eddie Manis
Director	1.00	X		0	0	0
Dr Mitchell Dickson
Director	1.00	X		1184	0	0
Pamela P Fansler
Director	1.00	X		0	0	0
Homer Fisher
Director	1.00	X		0	0	0
James Fitzsimmons
Director	1.00	X		1192	0	0
Dr William Hall
Director	1.00	X		1579	0	0
Wayne Heatherly
Director	1.00	X		747	0	0
Jim Johnson Jr
Director	1.00	X		1184	0	0
Karla Lane
Director	1.00	X		0	0	0
Dr Joseph Metcalf
Director	1.00	X		0	0	0
Larry Mauldin
Chairman	1.00	X		2832	0	0
George Miller
Director	1.00	X		0	0	0
Alvin Nance
Director	1.00	X		1235	0	0
Linda Ogle
Director	1.00	X		0	0	0
Francis H Olmstead Jr
Director	1.00	X		0	0	0
Mitchell Steenrod
Director	1.00	X		1184	0	0
Joseph E Sutter
Director	1.00	X		1273	0	0
Joe Ben Turner
Director	1.00	X		1192	0	0
David C Verble
Director	1.00	X		1251	0	0
Carl Storms
Director	1.00	X		769	0	0
Richard Swanson
Director	1.00	X		0	0	0
John T Geppi
EVP/CFO	50.00		X	705467	0	29048
James D Vandersteeg
EVP-Hospital Operations	50.00			654315	0	29015	X
William M Ward
SVP-Chief Information Officer	50.00			349987	0	31795	X
Lawrence C Kleinman
EVP-Human Resources	50.00			315369	0	30487	X
Samuel R Buscetta
EVP-Human Resources	50.00			311832	0	15848	X
Janice McKinley
SVP-Quality, Safety, & Nursing Operations	50.00			222557	6644	17080	X
Michael R Belbeck Jr
President/CAO - Methodist Medical Center	50.00			413309	0	33952		X
Larry R Lassiter
President/CAO - Parkwest Medical Center	50.00			403047	0	30381		X
Richard L Clark
President/CAO - Morristown-Hamblen Hospital Assoc.	50.00			340642	0	29731		X
Keith N Altshuler
President/CAO - Fort Sanders Regional Medical Ctr.	50.00			325970	0	29477		X
Gordon E Lintz
President/CAO - Thompson Cancer Survival Ctr.	50.00			281919	0	18657		X

Field	Value	IRS element (for citing)
Total Reportable Comp From Org	6832678	TotalReportableCompFromOrg
Total Reportable Comp Frm Rltd Orgs	6644	TotalReportableCompFrmRltdOrgs
Total Other Compensation	321178	TotalOtherCompensation
Number Individuals GT100 K	49	NumberIndividualsGT100K
Formers Listed	0	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
Morrison Mgmt Specialists Inc
PO Box 102289	Atlanta	GA	303682289	Cafeteria Management	18914424
McKesson Info Solutions
PO Box 98347	Chicago	IL	606938347	IT consulting services	9810577
Innovative Healthcare Solutions Inc
PO Box 380697	Murdock	FL	33983	Consultuing services	2152411
Lewis Group Architects Inc
6512 Deane Hill Drive	Knoxville	TN	37919	Architectural services	2027057
Dell Marketing LP
2300 W Plano Pkwy Treas Dept Bl	Plano	TX	75075	Professional Service fees	1681641

Field	Value	IRS element (for citing)
Number Of Contractors GT100 K	54	NumberOfContractorsGT100K
Related Organizations	264991	RelatedOrganizations
Noncash Contributions	88097	NoncashContributions
Total Contributions	264991	TotalContributions

Program Service Revenue ProgramServiceRevenue (5 entries)

DescriptionDescription	Business CodeBusinessCode	Total Revenue ColumnTotalRevenueColumn	Related Or Exempt Function IncomeRelatedOrExemptFunctionIncome	Unrelated Business RevenueUnrelatedBusinessRevenue	ExclusionExclusionAmount
Management Fees	561000	67603738	67603738
Telephone Services	517000	5115144	4718906	396238
Transcription Services	561499	4965358	4444433	520925
Community Outreach	621990	310558	281058		$29,500
Managed Care Services	541900	73742		73742

Field	Value	IRS element (for citing)
Total Program Service Revenue	78068540	TotalProgramServiceRevenue

Investment Income InvestmentIncome

Field	Value	IRS element (for citing)
Total Revenue Column	19997128	TotalRevenueColumn
Related Or Exempt Function Income	19997128	RelatedOrExemptFunctionIncome

Income From Invest Bond Proceeds IncomeFromInvestBondProceeds

Field	Value	IRS element (for citing)
Total Revenue Column	1079248	TotalRevenueColumn
Related Or Exempt Function Income	1079248	RelatedOrExemptFunctionIncome

Gross Rents GrossRents

Field	Value	IRS element (for citing)
Real	589174	Real

Less Rental Expenses LessRentalExpenses

Field	Value	IRS element (for citing)
Real	350855	Real

Rental Income Or Loss RentalIncomeOrLoss

Field	Value	IRS element (for citing)
Real	238319	Real

Net Rental Income Or Loss NetRentalIncomeOrLoss

Field	Value	IRS element (for citing)
Total Revenue Column	238319	TotalRevenueColumn
Exclusion	$238,319	ExclusionAmount

Gross Amount Sales Assets GrossAmountSalesAssets

Field	Value	IRS element (for citing)
Securities	56241591	Securities
Other	11630988	Other

Less Cost Oth Basis Sales Expenses LessCostOthBasisSalesExpenses

Field	Value	IRS element (for citing)
Securities	34954236	Securities
Other	1906	Other

Gain Or Loss GainOrLoss

Field	Value	IRS element (for citing)
Securities	21287355	Securities
Other	11629082	Other

Net Gain Or Loss Investments NetGainOrLossInvestments

Field	Value	IRS element (for citing)
Total Revenue Column	32916437	TotalRevenueColumn
Unrelated Business Revenue	1340	UnrelatedBusinessRevenue
Exclusion	$32,915,097	ExclusionAmount

Field	Value	IRS element (for citing)
Gross Sales Of Inventory	3233461	GrossSalesOfInventory
Cost Of Goods Sold	2862331	CostOfGoodsSold

Net Income Or Loss NetIncomeOrLoss

Field	Value	IRS element (for citing)
Total Revenue Column	371130	TotalRevenueColumn
Related Or Exempt Function Income	371130	RelatedOrExemptFunctionIncome

Other Revenue Misc OtherRevenueMisc

Field	Value	IRS element (for citing)
Description	Info. Technology Servi	Description
Business Code	518210	BusinessCode
Total Revenue Column	503258	TotalRevenueColumn
Unrelated Business Revenue	503258	UnrelatedBusinessRevenue

Field	Value	IRS element (for citing)
Total Other Revenue	503258	TotalOtherRevenue

Total Revenue TotalRevenue

Field	Value	IRS element (for citing)
Total Revenue Column	133439051	TotalRevenueColumn
Related Or Exempt Function Income	98495641	RelatedOrExemptFunctionIncome
Unrelated Business Revenue	1495503	UnrelatedBusinessRevenue
Exclusion	$33,182,916	ExclusionAmount

Grants To Domestic Orgs GrantsToDomesticOrgs

Field	Value	IRS element (for citing)
Total	608694	Total
Program Services	608694	ProgramServices

Comp Current Officers Directors CompCurrentOfficersDirectors

Field	Value	IRS element (for citing)
Total	5253417	Total
Program Services	4413365	ProgramServices
Management And General	840052	ManagementAndGeneral

Other Salaries And Wages OtherSalariesAndWages

Field	Value	IRS element (for citing)
Total	34059616	Total
Program Services	28659121	ProgramServices
Management And General	5400495	ManagementAndGeneral

Pension Plan Contributions PensionPlanContributions

Field	Value	IRS element (for citing)
Total	1847548	Total
Program Services	1556744	ProgramServices
Management And General	290804	ManagementAndGeneral

Other Employee Benefits OtherEmployeeBenefits

Field	Value	IRS element (for citing)
Total	5854250	Total
Program Services	4948381	ProgramServices
Management And General	905869	ManagementAndGeneral

Payroll Taxes PayrollTaxes

Field	Value	IRS element (for citing)
Total	2864801	Total
Program Services	2413881	ProgramServices
Management And General	450920	ManagementAndGeneral

Fees For Services Legal FeesForServicesLegal

Field	Value	IRS element (for citing)
Total	1348486	Total
Program Services	481124	ProgramServices
Management And General	867362	ManagementAndGeneral

Fees For Services Accounting FeesForServicesAccounting

Field	Value	IRS element (for citing)
Total	64700	Total
Management And General	64700	ManagementAndGeneral

Fees For Services Invst Mgmnt Fees FeesForServicesInvstMgmntFees

Field	Value	IRS element (for citing)
Total	26000	Total
Program Services	26000	ProgramServices

Fees For Services Other FeesForServicesOther

Field	Value	IRS element (for citing)
Total	6444558	Total
Program Services	5127881	ProgramServices
Management And General	1316677	ManagementAndGeneral

Advertising Advertising

Field	Value	IRS element (for citing)
Total	820322	Total
Program Services	745142	ProgramServices
Management And General	75180	ManagementAndGeneral

Office Expenses OfficeExpenses

Field	Value	IRS element (for citing)
Total	6115295	Total
Program Services	5982899	ProgramServices
Management And General	132396	ManagementAndGeneral

Information Technology InformationTechnology

Field	Value	IRS element (for citing)
Total	9773986	Total
Program Services	9773986	ProgramServices

Occupancy Occupancy

Field	Value	IRS element (for citing)
Total	1457874	Total
Program Services	1350227	ProgramServices
Management And General	107647	ManagementAndGeneral

Travel Travel

Field	Value	IRS element (for citing)
Total	279128	Total
Program Services	266437	ProgramServices
Management And General	12691	ManagementAndGeneral

Conferences Meetings ConferencesMeetings

Field	Value	IRS element (for citing)
Total	718332	Total
Program Services	397214	ProgramServices
Management And General	321118	ManagementAndGeneral

Interest Interest

Field	Value	IRS element (for citing)
Total	14292260	Total
Program Services	14292260	ProgramServices

Depreciation Depletion DepreciationDepletion

Field	Value	IRS element (for citing)
Total	3479148	Total
Program Services	2973027	ProgramServices
Management And General	506121	ManagementAndGeneral

Insurance Insurance

Field	Value	IRS element (for citing)
Total	552759	Total
Program Services	295530	ProgramServices
Management And General	257229	ManagementAndGeneral

Other Expenses OtherExpenses (4 entries)

DescriptionDescription	TotalTotal	Management And GeneralManagementAndGeneral	Program ServicesProgramServices
Unrelated Business Inco	61271	61271
Malpractice Insurance	1162662		1162662
Dues and Licenses	946190	147700	798490
Subscriptions	443687	9842	433845

All Other Expenses AllOtherExpenses

Field	Value	IRS element (for citing)
Total	239484	Total
Program Services	12428	ProgramServices
Management And General	227056	ManagementAndGeneral

Total Functional Expenses TotalFunctionalExpenses

Field	Value	IRS element (for citing)
Total	98714468	Total
Program Services	86719338	ProgramServices
Management And General	11995130	ManagementAndGeneral
Fundraising	0	Fundraising

Cash Non Interest Bearing CashNonInterestBearing

Field	Value	IRS element (for citing)
BOY	1800	BOY
EOY	1800	EOY

Savings And Temp Cash Investments SavingsAndTempCashInvestments

Field	Value	IRS element (for citing)
BOY	28911749	BOY
EOY	24331691	EOY

Inventories For Sale Or Use InventoriesForSaleOrUse

Field	Value	IRS element (for citing)
BOY	442964	BOY
EOY	482400	EOY

Prepaid Expenses Deferred Charges PrepaidExpensesDeferredCharges

Field	Value	IRS element (for citing)
BOY	5566314	BOY
EOY	6689469	EOY

Field	Value	IRS element (for citing)
Land Buildings Equipment Basis	72080503	LandBuildingsEquipmentBasis
Land Bldg Equipment Accum Deprec	16138561	LandBldgEquipmentAccumDeprec

Land Buildings Equipment Basis Net LandBuildingsEquipmentBasisNet

Field	Value	IRS element (for citing)
BOY	30328701	BOY
EOY	55941942	EOY

Investments Pub Traded Securities InvestmentsPubTradedSecurities

Field	Value	IRS element (for citing)
BOY	768458922	BOY
EOY	844634509	EOY

Investments Other Securities InvestmentsOtherSecurities

Field	Value	IRS element (for citing)
BOY	6917363	BOY
EOY	18622469	EOY

Other Assets Total OtherAssetsTotal

Field	Value	IRS element (for citing)
BOY	198238486	BOY
EOY	148823966	EOY

Total Assets TotalAssets

Field	Value	IRS element (for citing)
BOY	1038866299	BOY
EOY	1099528246	EOY

Accounts Payable Accrued Expenses AccountsPayableAccruedExpenses

Field	Value	IRS element (for citing)
BOY	47323061	BOY
EOY	54619201	EOY

Deferred Revenue DeferredRevenue

Field	Value	IRS element (for citing)
BOY	56298033	BOY
EOY	45455991	EOY

Tax Exempt Bond Liabilities TaxExemptBondLiabilities

Field	Value	IRS element (for citing)
BOY	586520252	BOY
EOY	677079609	EOY

Other Liabilities OtherLiabilities

Field	Value	IRS element (for citing)
BOY	25631151	BOY
EOY	28147040	EOY

Total Liabilities TotalLiabilities

Field	Value	IRS element (for citing)
BOY	715772497	BOY
EOY	805301841	EOY

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

Unrestricted Net Assets UnrestrictedNetAssets

Field	Value	IRS element (for citing)
BOY	323093802	BOY
EOY	294226405	EOY

Total Net Assets Fund Balances TotalNetAssetsFundBalances

Field	Value	IRS element (for citing)
BOY	323093802	BOY
EOY	294226405	EOY

Total Liab Net Assets Fund Balances TotalLiabNetAssetsFundBalances

Field	Value	IRS element (for citing)
BOY	1038866299	BOY
EOY	1099528246	EOY

Field	Value	IRS element (for citing)
Info In Schedule O Part XI	X	InfoInScheduleOPartXI
Reconcilation Revenue Expenses	34724583	ReconcilationRevenueExpenses
Reconcilation Other Changes	-63591980	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
Audit Committee	1	AuditCommittee
Financial Statement Consolidated	X	FinancialStatementConsolidated
Federal Grant Audit Required	1	FederalGrantAuditRequired
Federal Grant Audit Performed	1	FederalGrantAuditPerformed

Schedule A IRS990ScheduleA

Field	Value	IRS element (for citing)
Supporting Organization509a3	X	SupportingOrganization509a3
Supporting Org509a3 Type2	X	SupportingOrg509a3Type2
Certification Checkbox	X	CertificationCheckbox
Contrib By Controlling Individual	0	ContribByControllingIndividual
Contribution By Related Party	0	ContributionByRelatedParty
Contrib By35 Controlled Entity	0	ContribBy35ControlledEntity

Supported Org Information SupportedOrgInformation (11 entries)

EINEIN	Type Of OrganizationTypeOfOrganization	Listed In Governing DocListedInGoverningDoc	Supported Organization NotifiedSupportedOrganizationNotified	Organized In USOrganizedInUS	AmountAmount
Fort Loudoun Medical Ctr
621373691	3	0	1	1	$0
Fort Sanders Perinatal Ctr
043760551	3	0	1	1	$0
Fort Sanders Regional Med Ctr
620528340	3	0	1	1	$0
LeConte Medical Ctr
621114867	3	0	1	1	$0
Methodist Medical Ctr
620636239	3	0	1	1	$0
Parkwest Medical Ctr
581897274	3	0	1	1	$0
Roane County Medical Ctr
680673354	3	0	1	1	$0
Thompson Cancer Survival Ctr
621250943	3	0	1	1	$0
Covenant Homecare
621623114	9	0	1	1	$0
Thompson Oncology Group
621619239	3	0	1	1	$0
Morristown-Hamblen Healthcare System
620545814	3	0	1	1	$0

Field	Value	IRS element (for citing)
Total Number Of Supported Orgs	11	TotalNumberOfSupportedOrgs
Sum Of Amounts	0	SumOfAmounts
General Explanation	Schedule A, Part IV, Supplemental Information: Explanation for Part I, Line 11(h)(iv): Covenant Health is operated or controlled in connection with all of its listed supported organizations, and its articles of organization require that it be operated to support or benefit these organizations. All of the above described organizations are governed by a board of directors with 100% overlap of board membership. Explanation for Part I, Line 11(h)(vii): Covenant Health operates to serve the interests of its member hospitals and the other non-profit health organizations named in Schedule A, Part I (the "Supported Organizations"). The organization's activities have been discussed in detail on Schedule O in response to Form 990, Part III, Lines 4a thru 4d. Covenant Health may also pay expenses on behalf of, provide operating cash to, or make a grant to one of its Supported Organizations. See Schedule R, Part V for information about transfers to controlled organizations.	GeneralExplanation

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 C IRS990ScheduleC

Field	Value	IRS element (for citing)
Volunteers	1	Volunteers
Paid Staff Or Management	1	PaidStaffOrManagement
Media Advertisements	0	MediaAdvertisements
Mailings Members	1	MailingsMembers
Mailings Members	$50	MailingsMembersAmount
Publications Or Broadcast	0	PublicationsOrBroadcast
Grants Other Organizations	0	GrantsOtherOrganizations
Direct Contact Legislators	1	DirectContactLegislators
Direct Contact Legislators	$8,998	DirectContactLegislatorsAmount
Rallies Demonstrations	0	RalliesDemonstrations
Other Activities	1	OtherActivities
Other Activities	$114,419	OtherActivitiesAmount
Total Lobbying Expenditures IIB	123467	TotalLobbyingExpendituresIIB
Not Described In501c3	0	NotDescribedIn501c3

Form990 Schedule C Part IV Form990ScheduleCPartIV

Field	Value	IRS element (for citing)
Identifier	Explanation of Lobbying Activities:	Identifier
Return Reference	Part II-B, Line 1:	ReturnReference
Explanation	Covenant Health indirectly conducts lobbying activities through various membership organizations. A portion of membership dues paid is included in the amount on Line 1i.	Explanation

Schedule D IRS990ScheduleD

Land Land

Field	Value	IRS element (for citing)
Other Cost Or Other Basis	9427981	OtherCostOrOtherBasis
Book Value	9427981	BookValue

Buildings Buildings

Field	Value	IRS element (for citing)
Other Cost Or Other Basis	14999092	OtherCostOrOtherBasis
Depreciation	1875559	Depreciation
Book Value	13123533	BookValue

Leasehold Improvements LeaseholdImprovements

Field	Value	IRS element (for citing)
Other Cost Or Other Basis	1422709	OtherCostOrOtherBasis
Depreciation	1232017	Depreciation
Book Value	190692	BookValue

Equipment Equipment

Field	Value	IRS element (for citing)
Other Cost Or Other Basis	16857566	OtherCostOrOtherBasis
Depreciation	13030985	Depreciation
Book Value	3826581	BookValue

Other Land Buildings OtherLandBuildings

Field	Value	IRS element (for citing)
Other Cost Or Other Basis	29373155	OtherCostOrOtherBasis
Book Value	29373155	BookValue

Field	Value	IRS element (for citing)
Total Of Book Value Land Buildings	55941942	TotalOfBookValueLandBuildings

Other Assets OtherAssets (7 entries)

DescriptionDescription	Book ValueBookValue
Accrued Interest Receivable	6066691
Assets Limited as to Use	2537768
Bond Issuance Costs, Net	14714557
Deferred Compensation	3194411
Due from Affiliates	121476480
Long Term Deposit	111216
Other Receivables	722843

Field	Value	IRS element (for citing)
Total Book Value Other Assets	148823966	TotalBookValueOtherAssets

Other Liabilities OtherLiabilities (4 entries)

DescriptionDescription	AmountAmount
Long-Term ASO Agreement	$3,744,400
Long-Term Deferred Compensation	$4,499,604
Long-Term Reserve for Malpractice	$18,964,501
Long-Term Reserve for Workers Comp	$938,535

Field	Value	IRS element (for citing)
Total Of Amounts	28147040	TotalOfAmounts

Form990 Schedule D Part XIV Form990ScheduleDPartXIV

Field	Value	IRS element (for citing)
Identifier	Description of Uncertain Tax Positions Under FIN 48:	Identifier
Return Reference	Part X:	ReturnReference
Explanation	Part X, Line 2: Note G to the consolidated audited financial statements of Covenant Health, 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.	Explanation

Schedule I IRS990ScheduleI

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

Recipient Table RecipientTable (28 entries)

Address Line1AddressUS/AddressLine1	CityAddressUS/City	StateAddressUS/State	ZIP CodeAddressUS/ZIPCode	EIN Of RecipientEINOfRecipient	IRC SectionIRCSection	Amount Of Cash GrantAmountOfCashGrant	Purpose Of GrantPurposeOfGrant
Cancer Support Community Inc
2230 Sutherland Ave	Knoxville	TN	37919	581846210	501(c)(3)	15000	Support for 2012 Cancer Support
American Heart Association
4708 Papermill Road	Knoxville	TN	37909	135613797	501(c)(3)	20000	Sponsorship of 2011 Heart Walk and 2012 Gala
Boys and Girls Club of the TN Valley
220 Carrick St Suite 318	Knoxville	TN	37921	620475743	501(c)(3)	8334	Drug screenings
Catholic Charities of East TN Inc
3009 Lake Brook Blvd	Knoxville	TN	37909	621377551	501(c)(3)	52000	Support of HUD housing and sponsorship of fundraisers
East TN Children's Hospital
PO Box 15016	Knoxville	TN	37901	626002604	501(c)(3)	7720	Sponsorship of fundraisers
Coalition to Protect Americas Health Care
PO Box 30211	Bethesda	MD	20824	522253225	501(c)(3)	12000	General support
Fort Sanders Foundation
280 Ft Sanders West Blvd Ste 100	Knoxville	TN	37922	621748601	501(c)(3)	12500	Fundraisers benefiting Patricia Neal Rehab. Center, Peninsula, & the Hope Center
Foundation of National Student Nurses
45 Main Street Suite 606	Brooklyn	NY	11201	133123125	509(a)(3)	7500	General support
Honor Air Knoxville
7536 Taggart Ln	Knoxville	TN	37938	262825063	501(c)(3)	30000	General supportGeneral support
Methodist Medical Center Foundation
990 Oak Ridge Tpk	Knoxville	TN	37830	621414205	501(c)(3)	5290	General support fundraising
Interfaith Health Clinic
315 Gill Avenue	Knoxville	TN	37917	581947641	501(c)(3)	60000	General support for Interfaith Health Clinic
Knoxville Academy of Medicine Foundation
115 Suburban Road	Knoxville	TN	37923	621458199	501(c)(3)	17500	Knoxville Area Project Access - medical care for needy
Knoxville News Sentinel Charities Inc
2332 News Sentinel Drive	Knoxville	TN	37921	510141541	501(c)(3)	25500	General support fundraiser - Knoxville Sentinel Open Tournament
Knoxville Symphony Orchestra
PO Box 360	Knoxville	TN	37901	626008097	501(c)(3)	8000	General support
Knoxville Soccer LLC
PO Box 52250	Knoxville	TN	37950	272949086	501(c)(3)	20000	2011 Knoxville Marathon and Covenant Kids' Run
Komen Knoxville Race for Cure
9724 Kingston Pike Ste 705	Knoxville	TN	37922	751835298	501(c)(3)	12000	Race sponsor for organization supporting breast cancer research and awareness
Robert F Thomas Foundation
PO Box 4395	Sevierville	TN	37864	581537582	501(c)(3)	8000	Fundraisers to benefit Leconte Medical Center
Metropolitan Drug Commission
PO Box 53375	Knoxville	TN	37950	581704454	501(c)(3)	10000	2011 Heart Gala Fundraiser
Sacred Heart Church
711 S Northshore Drive	Knoxville	TN	37919	620572260	501(c)(3)	13000	Hope for Haiti medical outreach; general support for fundraising
Knoxville Track Club
PO Box 32035	Knoxville	TN	37930	620731345	501(c)(3)	50000	General support; Covenant Health Marathon
Wee Course Classic
PO Box 2123	Morristown	TN	37816	300155523	501(c)(3)	10000	Sponsor fundraising event - Larry Flemming Kids Classic
Variety Children's Charity of East TN
7132 Regal Lane	Knoxville	TN	37918	331025696	501(c)(3)	20000	General support
Morristown Hamblen Hospital Foundation
PO Box 1178	Morristown	TN	37816	621697090	501(c)(6)	6200	General support fundraising
(no name)
							General support
United Way of Greater Knoxville
1301 Hannah Ave	Knoxville	TN	37921	626001636	501(c)(3)	60500	2011 & 2012 General support
University of TN Athletic Dept
PO Box 15016	Knoxville	TN	37901	626001636	501(c)(3)	9000	General support
Emerald Youth Foundation
1718 N Central St	Knoxville	TN	37917	621474791	501(c)(3)	17500	General support fundraiser
Thompson Cancer Center Foundation
1915 White Ave	Knoxville	TN	37916	582130450	501(c)(3)	7025	2011 Buddy's Race for a Cure

Field	Value	IRS element (for citing)
Total Nbr Of501 C3 And Govt Grants	26	TotalNbrOf501C3AndGovtGrants
Total Nbr Of Other Organizations	1	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: Eligibility and selection criteria for charitable contributions from Covenant Health are determined by a review of a written proposal or similar documentation submitted by the requesting organization. Intended use of funds must be stated or evident in the proposal/documentation. Recipient organizations generally verify use of funds in one or more of the following ways: event publicity, follow-up reports or newsletters, sponsor recognition at a program or event, itemized receipts, year-end summaries.	Explanation

Schedule J IRS990ScheduleJ

Field	Value	IRS element (for citing)
Travel For Companions	X	TravelForCompanions
Idemnification Gross Up Payments	X	IdemnificationGrossUpPayments
Discretionary Spending Account	X	DiscretionarySpendingAccount
Housing Allowance Or Residence	X	HousingAllowanceOrResidence
Written Policy Re T And E Expenses	1	WrittenPolicyReTAndEExpenses
Substantiation Required	1	SubstantiationRequired
Compensation Committee	X	CompensationCommittee
Independent Consultant	X	IndependentConsultant
Compensation Survey	X	CompensationSurvey
Board Or Committee Approval	X	BoardOrCommitteeApproval
Severance Payment	0	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 (12 entries)

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
924445	0	326250	0	1241947	0	9800	0	15907	0	2518349	0	759468	0
John T Geppi
393584	0	237900	0	73983	0	9800	0	19248	0	734515	0	0	0
James D Vandersteeg
421899	0	174000	0	58416	0	9800	0	19215	0	683330	0	0	0
William M Ward
234760	0	76794	0	38433	0	9800	0	21995	0	381782	0	0	0
Lawrence C Kleinman
242808	0	25000	0	47561	0	22672	0	7815	0	345856	0	0	0
Samuel R Buscetta
69528	0	161600	0	80704	0	9800	0	6048	0	327680	0	0	0
Janice McKinley
185371	6287	18664	0	18522	357	8721	0	8064	295	239342	6939	0	0
Michael R Belbeck Jr
275817	0	104450	0	33042	0	9800	0	24152	0	447261	0	0	0
Larry R Lassiter
279389	0	81725	0	41933	0	10597	0	19784	0	433428	0	0	0
Richard L Clark
235546	0	6778	0	98318	0	9800	0	19931	0	370373	0	0	0
Keith N Altshuler
254454	0	26896	0	44620	0	9800	0	19677	0	355447	0	0	0
Gordon E Lintz
192198	0	55350	0	34371	0	9800	0	8857	0	300576	0	0	0

Form990 Schedule J Part III Form990ScheduleJPartIII (2 entries)

Return ReferenceReturnReference

ExplanationExplanation

Part I, Line 1a

Part I, Line 1a: Tax gross-up payments are provided to certain executives and managers. Additionally, housing allowances are provided to certain executives and managers in connection with relocation. These benefits are treated as taxable compensation to the recipients. Officers and Board members attending official Board retreats are offered a discretionary spending allowance that may be used for incidental spending and/or companion travel. The allowance is treated as taxable compensation to the recipient. In addition, Board members receive tax indemnification payments related to reportable compensation from the spending allowances, which are also treated as taxable compensation.

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

Schedule K IRS990ScheduleK

Form990 Schedule K Part I Form990ScheduleKPartI (4 entries)

Issuer EINIssuerEIN	CUSIP NumberCUSIPNumber	Date IssuedDateIssued	Issue PriceIssuePrice	Description Of PurposeDescriptionOfPurpose	DefeasedDefeased	On Behalf Of IssuerOnBehalfOfIssuer	Pool FinancingPoolFinancing
Health Educ & Housing Facil Brd of Knox Co
621220275	499523UUO	2006-12-20	46245448	See Part VI.	0	0	0
Health Educ & Housing Facil Brd of Knox Co
621220275	499523VR6	2011-03-24	103700000	See Part VI.	0	0	0
Health Educ & Housing Facil Brd of Knox Co
621220275	noneavail	2011-09-15	135500000	See Part VI.	0	0	0
Health Educ & Housing Facil Brd of Knox Co
621220275	noneavail	2011-09-15	125000000	See Part VI.	0	0	0

Form990 Schedule K Part II Form990ScheduleKPartII (4 entries)

Amount Bond DefeasedAmountBondDefeased	Total ProceedsTotalProceeds	Refunding EscrowRefundingEscrow	Issuance Costs From ProceedsIssuanceCostsFromProceeds	Capital ExpendituresCapitalExpenditures	Year Of Subst CompletionYearOfSubstCompletion	Current RefundingCurrentRefunding	Advance RefundingAdvanceRefunding	Final Allocation MadeFinalAllocationMade	Adequate Books And Recds MaintaindAdequateBooksAndRecdsMaintaind	Amount RetiredAmountRetired	Amount UnspentAmountUnspent
23755001	46245448	18647502	506941	21983506	2010	0	1	1	1
	103700000				2006	1	0	1	1	122000000
	135500000			29917819		1	0	0	1	35500000	70082181
	125000000				2010	1	0	1	1

Form990 Schedule K Part III Form990ScheduleKPartIII (4 entries)

Prcntge Prvt Business Use By OthersPrcntgePrvtBusinessUseByOthers	Percentage Of Prvt Business Re UBIPercentageOfPrvtBusinessReUBI	Total Private Business UseTotalPrivateBusinessUse	Post Issuance Compliance ProcdrsPostIssuanceComplianceProcdrs
0.00000	0.00000	0.00000	1
			0
0.00000	0.00000	0.00000	1
0.00000	0.00000	0.00000	1

Form990 Schedule K Part IV Form990ScheduleKPartIV (4 entries)

Form8038 T FiledForm8038TFiled	Variable Rate IssueVariableRateIssue	Hedge Identified In Books And RecdsHedgeIdentifiedInBooksAndRecds	Gross Proceeds Invested In GICGrossProceedsInvestedInGIC	Gross Proceeds InvestedGrossProceedsInvested	Exception To RebateExceptionToRebate
0	0	0	0	0	0
0	1	0	0	0	0
0	1	0	0	0	0
0	1	0	0	0	0

Field	Value	IRS element (for citing)
Fed Tax Requirements Compliance	X	FedTaxRequirementsCompliance

Form990 Schedule K Part VI Form990ScheduleKPartVI

Field	Value	IRS element (for citing)
Explanation	Schedule K, Part I, Column (F) Bond issues - description of purpose: Bond Issue A - These capital appreciation bonds were initially related to a larger bond issue, subsequently refinanced as noted below, the majority of which were used to build a replacement hospital and cancer treatment center in Sevier County and to make numerous renovations and improvements at all the member hospitals. A portion of the capital appreciation bonds were used for the refunding of bonds issued December 12, 2002. Bond Issue B - These bonds were issued for the partial refunding of bonds issued December 12, 2002. Bond Issue C - $35,500,000 relates to the conversion of a portion of the bonds issued December 20, 2006. All other proceeds are designated to build a replacement hospital in Roane County and for various facility and equipment improvements and additions at other affiliates. Bond Issue D - These bonds relate to the conversion of a portion of the bonds issued December 20, 2006.	Explanation

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	First Tennessee Bank	BusinessNameLine1

Field	Value	IRS element (for citing)
Relationship	Independent contractor	Relationship
Amount Of Transaction	159842	AmountOfTransaction
Description Of Transaction	Investment management	DescriptionOfTransaction
Sharing Of Revenues	0	SharingOfRevenues

Schedule M IRS990ScheduleM

Works Of Art WorksOfArt

Field	Value	IRS element (for citing)
Non Cash Checkbox	X	NonCashCheckbox
Number Of Contributions	21	NumberOfContributions
Noncash Contribs Rptd F990	17534	NoncashContribsRptdF990
Method Of Determining Revenues	Retail value,expert	MethodOfDeterminingRevenues

Books And Publications BooksAndPublications

Field	Value	IRS element (for citing)
Non Cash Checkbox	X	NonCashCheckbox
Noncash Contribs Rptd F990	50	NoncashContribsRptdF990
Method Of Determining Revenues	FMV	MethodOfDeterminingRevenues

Clothing And Household Goods ClothingAndHouseholdGoods

Field	Value	IRS element (for citing)
Non Cash Checkbox	X	NonCashCheckbox
Noncash Contribs Rptd F990	56827	NoncashContribsRptdF990
Method Of Determining Revenues	Various	MethodOfDeterminingRevenues

Collectibles Collectibles

Field	Value	IRS element (for citing)
Non Cash Checkbox	X	NonCashCheckbox
Number Of Contributions	1	NumberOfContributions
Noncash Contribs Rptd F990	200	NoncashContribsRptdF990
Method Of Determining Revenues	Comparables	MethodOfDeterminingRevenues

Food Inventory FoodInventory

Field	Value	IRS element (for citing)
Non Cash Checkbox	X	NonCashCheckbox
Number Of Contributions	3	NumberOfContributions
Noncash Contribs Rptd F990	2600	NoncashContribsRptdF990

Other Non Cash Contributions Table OtherNonCashContributionsTable (2 entries)

Non Cash CheckboxNonCashCheckbox	DescriptionDescription	Number Of ContributionsNumberOfContributions	Noncash Contribs Rptd F990NoncashContribsRptdF990	Method Of Determining RevenuesMethodOfDeterminingRevenues
X	Gift cards/certificates/tickets	18	5886	Retail or face value
X	Donated services/use of facilities	1	5000	Retail value

Field	Value	IRS element (for citing)
Any Property That Must Be Held	0	AnyPropertyThatMustBeHeld
Review Process Unusual NC Gifts	0	ReviewProcessUnusualNCGifts
Third Parties Used	0	ThirdPartiesUsed

Schedule O IRS990ScheduleO

General Explanation GeneralExplanation (10 entries)

IdentifierIdentifier	Return ReferenceReturnReference	ExplanationExplanation
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 MASH 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	Part VI, Section B, Line 11: Covenant Health is a large integrated health system which files twelve Forms 990. Annually, at the September Finance Committee meeting, one of the twelve 990's 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 distributes a Board-approved employee handbook to all employees. The hand book covers among other subjects, conflicts of interest. Additionally, managers are required to complete and sign an annual management certification that addresses conflicts of interest. Board members' conflicts of interests are dealt with in the corporate bylaws, and Board members are required to complete and sign a conflict of interest questionnaire on an annual basis. The Integrity Compliance Office maintains records that contain conflict of interest information obtained from Board members, officers and employees. These records are available to be queried prior to engaging in business transactions. The Integrity Compliance Officer initially reviews all conflict of interest data. Based on this information, the officer determines what conflicts of interest exist at that point in time. Between times when surveys are collected Board members are expected to disclose any new conflicts that have arisen that affect pending Board decisions. As well, managers and other employees are expected to report conflicts to the Integrity Compliance Officer as they arise. Depending on the nature of the conflict and the circumstances surrounding the conflict and transaction, the Integrity Compliance Officer, Senior Leadership, or the Board of Directors may review the conflict of interest. Where appropriate these bodies may also consult legal counsel. Restrictions imposed on persons with a conflict of interest are determined on a case by case basis. For Covenant Health employees, the Integrity Compliance Officer in conjunction with Executive Leadership determines how to appropriately handle the conflict. In any conflict involving a Board member, such member is expected to excuse himself or herself from voting on matters that give rise to the conflict.
	Form 990, Part VI, Section B, line 15	Form 990, Part VI, Section B, Line 15a: Annual compensation for Covenant Health's President and CEO, Anthony L. Spezia, is determined by the Compensation Committee of the Covenant Health Board of Directors,("the Committee") which is composed of independent members of the board and chaired by the chairman of the board. The Committee is guided in its decision-making process by an independent, nationally recognized executive compensation consultant experienced in advising nonprofit hospital boards ("consultant") whose services include: (1) providing pay comparisons with market comparables; (2) recommending salary ranges and annual base salary adjustments; (3) designing incentive compensation and deferred compensation components of the CEO's total compensation package; (4) reviewing benefits and perquisites; and (5) certifying as to the reasonableness of total annual compensation. The consultant analyzes and makes recommendations with respect to the CEO's total compensation package through analysis of CEO compensation data for comparable healthcare nonprofit health systems in the United States. The systems selected for comparison are similar to Covenant Health in size, revenue, total assets, number of full time employees and services provided. Covenant Health's current compensation methodology includes setting base salary at, or near the midpoint recommended by the consultant based on the CEO's experience and market conditions. In addition, annual incentive bonus compensation may be awarded upon achievement of established targets. Bonus opportunity ranges from 35-50% of base salary depending upon the executive's performance. The CEO also earns forfeitable, deferred compensation, the amount of which depends upon the amount of any annual bonus awarded. As a part of its CEO performance evaluation process, the Committee asks each member of the board of directors to submit a written evaluation of the CEO's performance using an evaluation form prepared by an independent audit firm. This information is collected, collated, and reported to the Committee by the audit firm; however, results are "blinded" so that individual board members are not identified. The collated results are shared with the CEO as part of the evaluation process. Any increase in base salary, award of annual bonus, or changes in overall compensation methodology are made by the Committee after discussion with and advice of the consultant and conditioned upon the consultant's determination that such decisions result in total annual compensation that is reasonable and within a fair market value range. Once the annual performance evaluation is completed, the chairman and at least one other member of the Committee meet with the CEO and share the Committee and board's evaluation of his prior year's performance, communicate his performance goals for the upcoming year, and inform him of the Committee's actions with respect to any annual bonus award for the prior year and any base salary adjustment for the upcoming year. Minutes of the actions of the Committee are recorded and kept on file. In addition, all determinations of the Committee with respect to the CEO's compensation are reported to and ratified by the full board of directors. Form 990, Part VI, Section B, Line 15b: Base salaries and annual bonus opportunities for Key Executives (1) 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 for each executive position are based upon the recommendations of the consultant made after comparison with similar jobs in similar size health systems across the nation. Bonuses are recommended by the CEO and approved by the Committee conditioned upon receipt of a written opinion from the consultant that total compensation for each Key Executive is reasonable and consistent with fair market value. Base salaries are initially targeted at midpoint and vary according to the individual's experience, market conditions and competition. Annual bonuses are designed to award 0 - 45% for the EVP's, and 0 - 35% for the SVP's and CAO's of base salary based upon system performance and accomplishment of certain targets established by the CEO. (1) KEY EXECUTIVES: Covenant Health employees: John T. Geppi, EVP-Chief Financial Officer James D. Vandersteeg, EVP-Hospital Operations Lawrence C. Kleinman, EVP-Human Resources Samuel R. Buscetta, EVP-Human Resources William M. Ward, SVP-Chief Information Officer Janice McKinley, SVP-Quality, Safety & Nursing Operations Related organization employees compensated by Covenant Health: Keith Altshuler, President & CAO of Fort Sanders Regional Medical Ctr. Michael R. Belbeck, Jr., President & CAO of Methodist Medical Center Larry R. Lassiter, President & CAO of Parkwest Medical Center Ellen F. Wilhoit, President & CAO of LeConte Medical Center Jeffrey Feike, President & CAO of Fort Loudoun Medical Center James Gann, President & CAO of Roane Medical Center Richard Clark, President & CAO of Morristown Hamblen Medical Center
	Form 990, Part VI, Section C, line 19	Form 990, Part VI, Section C, Line 19: Per its tax exempt bond provisions, Covenant Health, is required to file quarterly and annual consolidated and obligated group financial statements 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.
Average Hours Per Week/Contact Addresses for Highest Compensated Employees:	Form 990, Part VI, Section A, Line 9 & Part VII, Section A	Covenant Health compensates the Presidents and CAOs of its member hospitals in its role as a supporting organization. Average hours worked per week by the following persons are reported on the Form 990 of the facility for which they work. Their contact addresses are provided here, as well. Michael R. Belbeck, Jr. Methodist Medical Center 990 Oak Ridge Turnpike Oak Ridge, TN 37830 Larry R. Lassiter Parkwest Medical Center 9352 Park West Boulevard Knoxville, TN 37923 Richard Clark 3102 Hampton Circle Morristown, TN 37814 Keith Altshuler Fort Sanders Regional Medical Center & Fort Sanders Perinatal Center 1901 Clinch Avenue Knoxville, TN 37916 Gordon Lintz Morristown-Hamblen Healthcare System 908 West Fourth North Morristown, TN 37814 All other persons listed in Part VII, Section A may be contacted at the organization's address.
Changes in Net Assets or Fund Balances:	Form 990, Part XI, line 5:	Net unrealized losses on investments: -17,251,918. Book/Tax Diff in Income(Loss) from Partnerships/Trusts -13,371,470. UBI Accrual -5,230. Return of capital from subsidiaries 150,771. Capital contributed to subsidiaries -32,937,198. Change in 457(b) unrealized gain/loss -176,935. Total to Form 990, Part XI, Line 5: -63,591,980.
	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 (14 entries)

Address Line1AddressUS/AddressLine1	CityAddressUS/City	StateAddressUS/State	ZIP CodeAddressUS/ZIPCode	EINEIN	Primary ActivitiesPrimaryActivities	Legal Domicile StateLegalDomicileState	Exempt Code SectionExemptCodeSection	Public Charity StatusPublicCharityStatus	Business Name Line1DirectControllingEntityName/BusinessNameLine1	Controlled OrgControlledOrg
Fort Sanders Regional Medical Center
1901 W Clinch Avenue	Knoxville	TN	37916	620528340	Acute care hospital	TN	501(c)(3)	Line 3	Covenant Health	0
Parkwest Medical Center
9352 Park West Boulevard	Knoxville	TN	37923	581897274	Acute care hospital & behavioral services	TN	501(c)(3)	Line 3	Covenant Health	0
Methodist Medical Center
990 Oak Ridge Turnpike	Oak Ridge	TN	37830	620636239	Acute care hospital	TN	501(c)(3)	Line 3	Covenant Health	0
LeConte Medical Center
742 Middle Creek Road	Sevierville	TN	37862	621114867	Acute care hospital	TN	501(c)(3)	Line 3	Covenant Health	0
Roane County Medical Center dba Roane Medical Center
412 Devonia St	Harriman	TN	37748	680673354	Acute care hospital	TN	501(c)(3)	Line 3	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
Thompson Cancer Survival Center
1915 White Avenue	Knoxville	TN	37916	621250943	Cancer treatment facility	TN	501(c)(3)	Line 3	Covenant Health	0
Thompson Oncology Group
1915 White Avenue	Knoxville	TN	37916	621619239	Oncology services	TN	501(c)(3)	Line 3	Covenant Health	0
Fort Sanders Foundation
280 Fort Sanders West Blvd Ste 100	Knoxville	TN	37922	621748601	Fundraising and patient outreach	TN	501(c)(3)	Line 11a, I	Covenant Health	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 Sanders Perinatal Center
501 19th St Ste 304	Knoxville	TN	37916	043760551	High risk obstetrical services	TN	501(c)(3)	Line 3	Covenant Health	1
Morristown-Hamblen Hospital Assoc dba M-H Healthcare System
908 W 4th North St	Morristown	TN	37814	620545814	Acute care hospital	TN	501(c)(3)	Line 3	Covenant Health	0
Thompson Cancer Survival Center Foundation
1915 White Avenue	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 St	Morristown	TN	37814	200916364	Cancer treatment facility	TN	501(c)(3)	Line 3	Morristown-Hamblen Hospital Association	0

Form990 Schedule R Part III Form990ScheduleRPartIII (7 entries)

Address Line1AddressUS/AddressLine1	CityAddressUS/City	StateAddressUS/State	ZIP CodeAddressUS/ZIPCode	EINEIN	Primary ActivityPrimaryActivity	Legal Domicile StateLegalDomicileState	Direct Controlling Entity NADirectControllingEntityNA
Endoscopy Center of Oak Ridge LLC
988 Oak Ridge Turnpike Ste 220	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
Assoc of the Meridian Health Outpatient 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 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	Orthodopaedic 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
Fortress Corporation
280 Ft Sanders West Blvd Suite 214	Knoxville	TN	37922	621308885	Management company	TN	N/A	C
KASC Acquisition Company Inc
1420 Centerpoint Blvd Bldg C	Knoxville	TN	37932	263400984	Real estate holdings	TN	N/A	C
Covenant Medical Management Inc
280 Ft Sanders West Blvd Suite 205	Knoxville	TN	37922	621282917	Physician practice management	TN	N/A	C
Knoxville Heart Group
1819 Clinch Avenue Suite 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

Field	Value	IRS element (for citing)
Receipt Of Int Ann Rents Royalties	1	ReceiptOfIntAnnRentsRoyalties
Gift Grant Or Cap Contr To Other Org	1	GiftGrantOrCapContrToOtherOrg
Gift Grant Or Cap Contr Fr Other Org	1	GiftGrantOrCapContrFrOtherOrg
Loans Or Guarantees To Other Org	0	LoansOrGuaranteesToOtherOrg
Loans Or Guarantees From Other Org	0	LoansOrGuaranteesFromOtherOrg
Sale Of Assets To Other Org	1	SaleOfAssetsToOtherOrg
Purchase Of Assets From Other Org	0	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 (75 entries)

Transaction TypeTransactionType	Amount InvolvedAmountInvolved	Method Of Amt DeterminationMethodOfAmtDetermination
Fort Sanders Regional Medical Center
A	3352748	Cash
Fort Sanders Regional Medical Center
B	84500	FMV
Fort Sanders Regional Medical Center
F	2372606	FMV
Fort Sanders Regional Medical Center
K	57388288	FMV
Fort Sanders Regional Medical Center
N	5331336	FMV
Fort Sanders Regional Medical Center
O	1816511	Cost
Fort Sanders Regional Medical Center
P	38529656	Cost
Fort Sanders Regional Medical Center
R	471704834	Cash
Parkwest Medical Center
A	25406428	Cash
Parkwest Medical Center
F	3440273	FMV
Parkwest Medical Center
K	59099323	FMV
Parkwest Medical Center
N	2833819	FMV
Parkwest Medical Center
O	202213	Cost
Parkwest Medical Center
P	389734198	Cost
Parkwest Medical Center
Q	13731020	Cash
Parkwest Medical Center
R	515073917	Cash
Methodist Medical Center
A	176925	Cash
Methodist Medical Center
F	1487359	FMV
Methodist Medical Center
K	36950152	FMV
Methodist Medical Center
N	2183607	FMV
Methodist Medical Center
O	294243	Cost
Methodist Medical Center
P	181686031	Cost
Methodist Medical Center
R	230484155	Cash
Morristown-Hamblen Hospital Association
K	4500002	FMV
Morristown-Hamblen Hospital Association
N	367560	FMV
Morristown-Hamblen Hospital Association
P	83156427	Cost
Morristown-Hamblen Hospital Association
R	77966662	Cash
LeConte Medical Center
A	1132354	Cash
LeConte Medical Center
F	497599	FMV
LeConte Medical Center
K	13522449	FMV
LeConte Medical Center
N	1321671	FMV
LeConte Medical Center
O	157504	Cost
LeConte Medical Center
P	113304989	Cost
LeConte Medical Center
R	55350343	Cash
Roane County Medical Center
K	1150000	FMV
Roane County Medical Center
N	1652534	FMV
Roane County Medical Center
O	2259207	Cost
Roane County Medical Center
P	16376837	Cost
Roane County Medical Center
Q	1102200	Cash
Fort Loudoun Medical Center
A	244278	Cash
Fort Loudoun Medical Center
F	155291	FMV
Fort Loudoun Medical Center
K	6219000	FMV
Fort Loudoun Medical Center
N	733301	FMV
Fort Loudoun Medical Center
P	35875480	Cost
Fort Loudoun Medical Center
R	44835021	Cash
Thompson Cancer Survival Center
K	6334326	FMV
Thompson Cancer Survival Center
N	870521	FMV
Thompson Cancer Survival Center
O	200610	Cost
Thompson Cancer Survival Center
P	19122240	Cost
Thompson Cancer Survival Center
Q	1514218	Cash
Thompson Cancer Survival Center
R	37877700	Cash
Thompson Oncology Group
K	715814	FMV
Thompson Oncology Group
P	63813948	Cost
Thompson Oncology Group
R	46186916	Cash
Covenant Homecare
I	54950	FMV
Covenant Homecare
K	3204656	FMV
Covenant Homecare
J	131880	FMV
Covenant Homecare
N	100182	FMV
Covenant Homecare
P	24531955	Cost
Covenant Homecare
R	25334805	Cash
Fort Sanders Perinatal Center
P	16843843	Cost
Fort Sanders Perinatal Center
Q	204405	Cash
Fort Sanders Perinatal Center
R	19863540	Cash
Surgery Endoscopy Ctr of Morristown
P	398949	Cost
Covenant Medical Management
K	457454	FMV
Covenant Medical Management
P	7494296	Cost
Fortress Corporation
J	474471	FMV
Fortress Corporation
P	2308909	Cost
Fort Sanders West OP Surgery Center
P	107424	Cost
Fort Sanders West Association
P	76927	Cost
Knoxville Heart Group
K	315385	FMV
Knoxville Heart Group
P	7135855	Cost
Knoxville Heart Group
Q	144741	Cash
Knoxville Heart Group
R	4407436	Cash
Fort Sanders Foundation
N	111406	FMV