2020-11-12T12:22:55-06:00 2019-12-31 990 2019-01-01 621623114 Covenant HomeCare COVE 8653743140 1420 Centerpoint Blvd Bldg C Knoxville TN 379321960 JOHN T GEPPI EVP/CFO 8653746872 2020-11-12 168.85.177.4 2020-11-12 13:22:47 ES P 3D930A472F01CEA3FDB64A4D5B42C0182D7B7C6B 4CEA843006F037F323691C37D30308A58027C477 2019 2021-01-29 14:40:06Z James D VanderSteeg 100 Ft Sanders W Blvd Knoxville TN 37922 17040461 0 X https://www.covenanthomecareandhospice.com X 1995 TN Covenant HomeCare provides home care services to help patients maintain their independence and stay at home. It is a member of Covenant Health system. 18 16 201 61 0 0 124534 191486 14857867 16834595 10011 14289 8460 91 15000872 17040461 0 25000 0 0 11422158 12608996 0 0 0 4515175 4557261 15937333 17191257 -936461 -150796 2902513 3040786 4423564 4679424 -1521051 -1638638 X Covenant HomeCare provides quality healthcare, in alignment with Covenant Health's mission to serve the community by improving the quality of life through better health, regardless of the patient's ability to pay. 0 0 15113494 25000 16834595 Covenant HomeCare provides services with the goal of treatment at home when another option is not viable or available. Services consist of nursing, physical therapy, occupational therapy, speech therapy, social services, and care given by certified nursing assistants. Patients include those covered by Medicare, TennCare and commercial insurance, as well as self-pay patients. No patient is denied care due to an inability to pay. Applications for financial assistance are provided to patients who need them, and financial counselors are available to assist with the application process. Covenant HomeCare served 5,407 patients in 2019 in the course of 74,716 patient visits.KARM Transitional Care was created through a partnership between Covenant HomeCare and Knoxville Area Rescue Ministries to provide a safe place for homeless individuals to continue healing after a hospital stay. The goal is to improve patient outcomes through supervised continuity of care, ultimately reducing the patient's risk of developing subsequent illnesses or infections requiring additional hospital treatment. Funded by the Fort Sanders Foundation, this service helps fulfill Covenant Health's mission of improving the quality of life in the communities served through better health. Covenant HomeCare treated 40 patients in 2019.Covenant HomeCare provides hospice services which allow patient care and family support in the home environment during the patient's end stages of life. Services are provided to terminally ill patients whose physicians have diagnosed them with a terminal disease that is expected to result in death within six months of being taken under care. The objective is to allow these patients to die at home with dignity. Services provided in the home consist of nursing care, therapy, spiritual services and social services. Patients include those covered by Medicare, TennCare and commercial insurance, as well as self-pay patients. No patient is denied care due to an inability to pay. Applications for financial assistance are provided to patients who need them, and financial counselors are available to assist with the application process. Covenant HomeCare served 641 hospice patients in 2019 over the course of 13,440 visits.Covenant HomeCare manages the operations of Hope Center. The Hope Center provides a context for hope through advocating, educating, and addressing the individual needs of those affected by HIV and other life-altering illnesses. The Hope Center provides at no charge, caring support and assistance to all individuals and families living with HIV. Inpatients, outpatients, people relocating to this area, or newly diagnosed individuals have a safe, non-stigmatizing place to feel encouraged, valued, and also have a voice. The Hope Center receives and accepts calls made by patients, physicians, staff, community hospitals, or agencies.COVENANT HEALTH SYSTEMCovenant HomeCare is a member of Covenant Health. Covenant Health is a comprehensive, community-owned health system dedicated to improving the health of the people it serves. Established in 1996 by the consolidation of Fort Sanders Health System, Knoxville, Tennessee, and MMC HealthCare System in Oak Ridge, Covenant Health is governed by a voluntary board of directors comprised of community leaders and medical professionals. With more than 10,000 employees, affiliated physicians and volunteers, Covenant Health is the Knoxville area's largest employer and has been named a Best Employer five times by Forbes. Covenant Health includes nine acute care hospitals in East Tennessee: Methodist Medical Center of Oak Ridge, Fort Sanders Regional Medical Center and Parkwest Medical Center in Knoxville, Fort Loudoun Medical Center in Lenoir City, LeConte Medical Center in Sevierville, Morristown-Hamblen Healthcare System in Morristown, Roane Medical Center in Harriman, Claiborne Medical Center in Tazewell and Cumberland Medical Center in Crossville. It also includes Peninsula, a division of Parkwest Medical Center, a behavioral health hospital in Blount County, Tennessee.Affiliated organizations include Thompson Cancer Survival Center, Thompson Oncology Group, Fortress Corporation and Subsidiaries, Covenant HomeCare, and Fort Sanders Perinatal Center. Philanthropic organizations include Fort Sanders Foundation and the Thompson Cancer Survival Center Foundation in Knoxville, Methodist Medical Center Foundation in Oak Ridge, Dr. Robert F. Thomas Foundation in Sevierville, and Morristown-Hamblen Hospital Foundation in Morristown. Funds raised by the foundations provide services, equipment and other resources for excellence in patient care.Covenant HomeCare, as a member of the Covenant Health system, benefits from the collaboration among all affiliated organizations to promote quality improvement, patient safety and efficient delivery of care for the communities served. 15113494 1 1 0 0 0 0 0 0 0 0 1 0 0 1 1 1 0 1 0 0 0 0 0 0 0 0 0 1 0 1 0 0 0 0 0 0 0 0 0 0 0 0 0 1 0 0 0 1 21 0 1 201 1 0 0 0 0 0 0 0 0 0 0 0 0 X 18 16 0 0 0 0 1 1 1 1 1 0 0 1 1 1 1 1 1 1 1 0 X Amy DeLong 8653743140 1420 Centerpoint Blvd Bldg C Knoxville TN 379321960 Gerald Boyd Director 0.00 1.00 X 0 1550 0 Willard Campbell MD Director 0.00 1.00 X 0 0 0 Michael Casey MD Director 0.00 1.00 X 0 0 0 Ronni Chandler Director 0.00 1.00 X 0 1343 0 Mitchell Dickson MD Former Director (through Aug. 2019) 0.00 1.00 X 0 1489 0 James Fitzsimmons Director/Chair 0.00 1.00 X X 0 1563 0 James Gibson Director 0.00 1.00 X 0 1495 0 Amber Wisner Director 0.00 1.00 X 0 1071 0 Timothy Matthews Director 0.00 1.00 X 0 1733 0 Larry Mauldin Director 0.00 1.00 X 0 1507 0 Joseph Metcalf MD Director 0.00 1.00 X 0 12447 0 Dave Miller Director 0.00 1.00 X 0 1413 0 Alvin Nance Director 0.00 1.00 X 0 1378 0 Linda Ogle Director 0.00 1.00 X 0 0 0 Roger Osborne Former Director (through April 2019) 0.00 1.00 X 0 0 0 King Purnell Director 0.00 1.00 X 0 0 0 Randy Reid MD Former Director (through Nov. 2019) 0.00 1.00 X 0 1202 0 Cosby Stone Director 0.00 1.00 X 0 1068 0 Carl Storms Director 0.00 1.00 X 0 1307 0 Joe Sutter Director 0.00 1.00 X 0 1528 0 Richard Swanson Former Director (through Sept. 2019) 0.00 1.00 X 0 0 0 James D VanderSteeg President & CEO 0.00 50.00 X X 0 1798925 207223 John T Geppi EVP/CFO 0.00 50.00 X 0 980571 28517 John L Huskey President & CAO 50.00 0.00 X 218303 0 33339 Mitzi F Anderson VP - Financial Services 8.00 42.00 X 0 133205 22401 Martha Pack Occupational Therapist 50.00 0.00 X 115697 0 3776 David B Wooten MD Former HCE; Curr TOG Med. Director 10.00 40.00 X 0 205059 35714 334000 3149854 330970 2 1 1 0 Homecare Homebase LLC 6688 North Central Expressway Ste Dallas TX 75206 Software Implementation 334541 OptumRx PO Box 847222 Los Angeles CA 90084 Pharmacy Claims Services 250091 Leidos Health Holdings Inc PO Box 223866 Pittsburg PA 15251 IT Services 102485 3 191486 191486 Net Patient Revenue 621610 16757869 16757869 Rental Income - Exempt Affiliate 531120 76726 76726 16834595 14289 14289 Miscellaneous 812900 91 91 91 17040461 16834595 0 14380 25000 25000 251642 251642 9646948 9081754 565194 382880 324155 58725 1613848 1505754 108094 713678 656998 56680 923288 801235 122053 331270 208533 122737 3528 3034 494 272802 125696 147106 116204 1040 115164 1100423 1073808 26615 26118 1233 24885 302219 302219 7756 5557 2199 Medical Supplies 1080778 658919 421859 Bad Debt 321881 321881 Minor Equipment 18484 3136 15348 Subscriptions 17411 61 17350 35099 13481 21618 17191257 15113494 2077763 0 -21998 3240 1353497 1443943 26904 21873 21787 21771 7215463 6064880 1220871 1150583 301452 399376 2902513 3040786 2651196 2845282 828407 837461 943961 996681 4423564 4679424 X -1521051 -1638638 -1521051 -1638638 2902513 3040786 X -150796 15317 17892 X 0 1 X 1 0 X 40635 44857 206419 124534 191486 607931 16667832 17905376 17229071 14866190 16834595 83503064 283988 227437 119 137 91 511772 16992455 18177670 17435609 14990861 17026172 84622767 0 0 0 84622767 7717 13099 12700 10011 14289 57816 7717 13099 12700 10011 14289 57816 17000172 18190769 17448309 15000872 17040461 84680583 0.99930 0.99930 0.00070 0.00070 X RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED 145290 145290 2320083 2073037 247046 4750090 3991843 758247 1150583 Due from Affiliates, Net 54181 Long-term Deferred Compensation 345195 399376 Long-term Deferred Compensation 345195 Other Liabilities 651486 996681 X Part X, Line 2: Excerpt from the consolidated audited financial statements of Covenant Health (Covenant), parent company to Covenant HomeCare: Covenant and certain of its subsidiaries or controlled entities are exempt from income taxes pursuant to Section 501(c)(3) of the Internal Revenue Code. Accordingly, no provision for income taxes on qualifying activities has been made for these entities in the accompanying consolidated financial statements. However, certain entities and operations are subject to income taxes. Covenant had no unrecognized tax benefits at December 31, 2019. As such, no interest or penalties were recognized in the consolidated financial statements related to unrecognized tax benefits. At December 31, 2019, tax returns for 2016 through 2019 are subject to examination by the Internal Revenue Service. Covenant has no uncertain tax positions that would require financial statement recognition or disclosure under GAAP at December 31, 2019. 1 Positively Living 1501 E Fifth Ave Knoxville TN 37917 621698383 501(c)(3) 25000 General support 1 0 Part I, Line 2: Grant funds are provided to charitable organizations for the purpose of enhancing and promoting health care and improving quality of life in the community. The organization has guidelines in place to review the eligibility of grantees, and all grants require written documentation and appropriate levels of approval. Funds are generally not tracked after being granted as the original eligibility and selection criteria have been met. X X 1 1 0 1 0 0 0 0 0 0 0 James D VanderSteeg President & CEO 0 1123891 0 529000 0 146034 0 183500 0 23723 0 2006148 0 0 John T Geppi EVP/CFO 0 617248 0 272168 0 91155 0 11000 0 17517 0 1009088 0 0 John L Huskey President & CAO 151110 0 45855 0 21338 0 8339 0 25000 0 251642 0 0 0 Mitzi F Anderson VP - Financial Services 0 83790 0 18528 0 30887 0 5249 0 17152 0 155606 0 0 David B Wooten MD Former HCE; Curr TOG Med. Director 0 200890 0 0 0 4169 0 12487 0 23227 0 240773 0 0 Part I, Line 1a Tax gross-up payments related to deferred compensation and reimbursement of fees for personal services for legal and financial planning are provided to certain executives and managers. Amounts are included in taxable compensation. Part I, Line 3 Covenant Health, the parent company of Covenant Homecare, used the following methods in establishing the compensation of President/CEO, James D. VanderSteeg: compensation committee, independent compensation consultant, written employment contract, compensation survey or study, and approval by the board or compensation committee. Additional detail is provided in response to Form 990, Part VI, Section B, Lines 15a and 15b within Schedule O. Part I, Line 4b Covenant Health maintains a nonqualified deferred compensation ("NQDC") plan intended to support retention of President and CEO, James D. VanderSteeg. Employer contributions of $172,500 are reported as deferred compensation on Schedule J, Part II, Column C. Contributions along with 2019 earnings of $29,629 are subject to a substantial risk of forfeiture. Amounts are combined with other compensation and considered for reasonableness. Compensation procedures are discussed in detail in Schedule O (Form 990, Part VI, Section B, Line 15a). Form 990, Part VI, Section A, line 6 Covenant Health is the sole member of Covenant HomeCare. Form 990, Part VI, Section A, line 7a Covenant Health's board of directors also serves as the board of directors for Covenant HomeCare. Form 990, Part VI, Section A, line 7b Governance decisions of Covenant HomeCare are subject to approval of the sole member, Covenant Health. Form 990, Part VI, Section B, line 11b The Covenant Health board of directors has delegated to its Finance Committee the full power and authority of the board to receive, review, approve, authorize the filing of, address and resolve audit or review issues, and otherwise take all action required or appropriate relative to IRS Forms 990 and other applicable tax filings. Prior to filing Form 990, management reviews with the committee the returns, discusses any material variations in the Form 990 as compared to those to be filed by the organization's affiliates, and answers any questions. At the conclusion of review and discussion, the Finance Committee approves the Form 990. 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 Code of Conduct to all employees. The Code covers among other subjects, conflicts of interest, and requires disclosure and resolution of employee conflicts of interest. Additionally, officers, employed physicians, and highly compensated employees are required to complete and sign an annual conflict of interest disclosure statement. Board members' conflicts of interests are addressed 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 Chief Compliance Officer reviews 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. Officers and other employees are expected to report conflicts to the Chief Compliance Officer as they arise. Depending on the nature of the conflict and the circumstances surrounding the conflict and transaction, the Chief Compliance Officer, senior leadership, or the board of directors may review the conflict of interest. When appropriate, these parties 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 Chief Compliance Officer in conjunction with Covenant Health Executive Leadership determines how to appropriately manage the conflict. In any conflict involving a board member, such member is expected to recuse himself or herself from voting on matters related to the conflict. Form 990, Part VI, Section B, line 15 Form 990, Part VI, Section B, Line 15a: Overall compensation policies for Covenant HomeCare, Covenant Health (Parent Company), and affiliates are set by the Compensation Committee of the board of directors, ("the Committee"), which is comprised of independent members of the board. The Committee is guided in its decision-making process by an independent, nationally-recognized executive compensation consultant experienced in advising nonprofit hospital boards. The Covenant Health CEO is compensated by Covenant Health, and a detailed description of the compensation process is included on Covenant Health's Form 990. The process for Covenant HomeCare's CEO is included in response to Part VI, Section B, line 15b. Form 990, Part VI, Section B, Line 15b: Base salary and annual bonus opportunities for John Huskey, President and Chief Administrative Officer, are set by the Covenant Health CEO in consultation with the Senior Vice President-Human Resources, subject to approval of the Compensation Committee of the Covenant Health board of directors ("the Committee"), after review by and discussion with the executive compensation consultant ("the Consultant") to ensure that total compensation is reasonable and within a fair market value range. Salary ranges are based upon the recommendations of the Consultant made after comparison with similar jobs in similar size health systems across the nation. Bonuses are recommended by the CEO and approved by the Committee conditioned upon receipt of a written opinion from the Consultant that total compensation for the executive is reasonable and consistent with fair market value. Base salary is initially targeted at midpoint and may vary according to market conditions, performance, tenure, experience, special skills or qualifications, recruitment and retention challenges, and other relevant factors. Annual bonuses are designed to award 0-35% of base salary based upon system performance and accomplishment of certain targets established by the CEO. Base salaries and annual bonus opportunities for other officers and key employees are based on targets established by historical compensation consultant data and the Covenant Health Compensation department. Salary ranges are based upon comparison with similar jobs in similar size health systems across the nation. Base salaries and bonuses are approved by Executive Leadership predicated upon performance, and are reasonable and consistent with fair market value. Base salaries are initially targeted at midpoint and may vary according to market conditions, performance, tenure, experience, special skills or qualifications, recruitment and retention challenges, and other relevant factors. Annual bonuses are designed to award 0 - 20% of base salary based upon system performance and accomplishment of certain targets established by Executive Leadership. Form 990, Part VI, Section C, line 19 Covenant HomeCare files a Joint Annual Report containing financial information with the Tennessee Department of Health. Per its tax-exempt bond provisions, Covenant Health, the parent company of the organization, is required to file quarterly and annual consolidated and obligated group financial statements and other documentation with various bond insurers and other agencies, including the Electronic Municipal Market Access (EMMA) service of the Municipal Securities Rulemaking Board (MSRB). Any member of such a repository has access to these financial statements. The organization's governing documents and conflict of interest policy are not made publicly available. Form 990, Part XI, line 9: Transfers of Capital 17,892. Covenant Health 1420 Centerpoint Blvd Bldg C Knoxville TN 379321960 621646734 Supporting organization TN 501(C)(3) Line 12b, II N/A 0 Fort Loudoun Medical Center 1420 Centerpoint Blvd Bldg C Knoxville TN 379321960 621373691 Acute care hospital TN 501(C)(3) Line 3 Covenant Health 0 Fort Sanders Regional Medical Center 1420 Centerpoint Blvd Bldg C Knoxville TN 379321960 620528340 Acute care hospital TN 501(C)(3) Line 3 Covenant Health 0 Fort Sanders Foundation 1420 Centerpoint Blvd Bldg C Knoxville TN 379321960 621748601 Fundraising and patient outreach TN 501(C)(3) Line 12b, II Covenant Health 0 Fort Sanders Perinatal Center 1420 Centerpoint Blvd Bldg C Knoxville TN 379321960 043760551 High risk obstetrical services TN 501(C)(3) Line 3 Fort Sanders Regional Medical Center 0 LeConte Medical Center 1420 Centerpoint Blvd Bldg C Knoxville TN 379321960 621114867 Acute care hospital TN 501(C)(3) Line 3 Covenant Health 0 Methodist Medical Center 1420 Centerpoint Blvd Bldg C Knoxville TN 379321960 620636239 Acute care hospital TN 501(C)(3) Line 3 Covenant Health 0 Morristown-Hamblen Hospital Association 1420 Centerpoint Blvd Bldg C Knoxville TN 379321960 620545814 Acute care hospital TN 501(C)(3) Line 3 Covenant Health 0 Parkwest Medical Center 1420 Centerpoint Blvd Bldg C Knoxville TN 379321960 581897274 Acute care hospital and behavioral health services TN 501(C)(3) Line 3 Covenant Health 0 Roane County Medical Center 1420 Centerpoint Blvd Bldg C Knoxville TN 379321960 680673354 Acute care hospital TN 501(C)(3) Line 3 Covenant Health 0 Thompson Cancer Survival Center 1420 Centerpoint Blvd Bldg C Knoxville TN 379321960 621250943 Cancer support center TN 501(C)(3) Line 3 Covenant Health 0 Thompson Oncology Group 1420 Centerpoint Blvd Bldg C Knoxville TN 379321960 621619239 Oncology services TN 501(C)(3) Line 3 Thompson Cancer Survival Center 0 Thompson Cancer Survival Center Foundation 1420 Centerpoint Blvd Bldg C Knoxville TN 379321960 582130450 Fundraising and patient outreach TN 501(C)(3) Line 12b, II Covenant Health 0 Cumberland Medical Center 1420 Centerpoint Blvd Bldg C Knoxville TN 379321960 620790132 Acute care hospital TN 501(C)(3) Line 3 Covenant Health 0 Claiborne Medical Center 1420 Centerpoint Blvd Bldg C Knoxville TN 379321960 464420358 Acute care hospital TN 501(C)(3) Line 3 Covenant Health 0 Fort Sanders West Associates 280 Fort Sanders West Blvd Ste 214 Knoxville TN 37922 621384171 Building ownership TN N/A KOSC Properties LLC 256 Fort Sanders West Blvd Ste 200 Knoxville TN 37922 262444076 Building ownership TN N/A Knoxville Orthopaedic Surgery Center LLC 256 Fort Sanders West Blvd Ste 200 Knoxville TN 37922 262437385 Orthopaedic surgery TN N/A KOC 260 Bldg LLC 256 Fort Sanders West Blvd Ste 200 Knoxville TN 37922 465228440 Land and building ownership TN N/A Knoxville Health Care Center LP PO Box 1398 Murfreesboro TN 371331398 621019281 Rehabilitation center TN N/A Smith & Hammaker Enterprises LLC 550 Fort Summit Way Knoxville TN 37915 270122252 Rental real estate TN N/A Fortress Corporation 1420 Centerpoint Blvd Bldg C Knoxville TN 379321960 621308885 Management company TN N/A C 0 Covenant Medical Group Inc 1420 Centerpoint Blvd Bldg C Knoxville TN 379321960 621282917 Physician practice management TN N/A C 0 Knoxville Heart Group 1420 Centerpoint Blvd Bldg C Knoxville TN 379321960 271528941 Cardiology medical practice TN N/A C 0 East TN Cardiovascular Surgery Group Inc 1420 Centerpoint Blvd Bldg C Knoxville TN 379321960 621018541 Cardiovascular surgical practice TN N/A C 0 VortexT Analytics Inc 8351 E Walker Springs Lane Ste 403 Knoxville TN 37923 475296949 Computer programming services TN N/A C 0 SH Data Centers LLC 550 Fort Summit Way Knoxville TN 37915 814563094 Data storage TN N/A C 0 0 0 1 0 0 0 0 0 0 0 1 0 1 1 1 1 1 1 1