2013-11-12T12:50:34-06:00 2012-12-31 990 2012-01-01 621646734 Covenant Health COVE 8653746864 1420 Centerpoint Blvd Bldg C Knoxville TN 379321960 JOHN T GEPPI 8655315421 2013-11-07 Self-prepared 2012 2016-02-24 21:20:13Z Anthony L Spezia 100 Ft Sanders W Blvd Knoxville TN 37922 137333935 0 X www.covenanthealth.com X 1996 TN Covenant Health is the parent organization in a community-owned health care system in East Tenn. 22 18 1002 612 889542 35384 264991 236671 78068540 87284340 53992813 34197630 1112707 298132 133439051 122016773 608694 902017 0 0 49879632 55635785 0 0 0 48226142 45578589 98714468 102116391 34724583 19900382 1099528246 1117847303 805301841 801215199 294226405 316632104 X 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. 0 0 29749540 29749540 Information Technology. See Schedule O for additional details.Information Technology: Expenses - $29,749,540; Revenue - $29,749,540.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 - 262,774 *Pharmacy medication mgmt. system - 2,124,642 orders *Total spam messages blocked - 16,478,852 *Network virus attempts blocked - 99,957,240 *PCs supported - 9,108 *Overall telephone usage - 35,080,367 calls *Pathway scheduling application - 624,991 appointments *Accounts payable checks - 100,932 *Server instances - 800 *Storage terabytes - 493 *Live IP addresses - 15,552 *Help Desk calls - 160,096 *PACS studies - 593,051 10333197 10333197 Business Office. See Schedule O for additional details.Business Office: Expenses - $10,333,197; Revenue - $10,333,197.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 2012, CBO submitted over 923,000 insurance claims totaling in excess of $3,489,000,000. Bad debt expense for 2012 was approximately 3.24% of gross revenue with bad debt recoveries/collections in excess of $9,800,000. The CBO handled over 124,000 incoming phone calls, following-up on over 453,000 open accounts and processed over 3.3 million financial transactions. 6901071 6901071 Human Resources. See Schedule O for additional details.Human Resources: Expenses - $6,901,071; Revenue - $6,901,071.Corporate Human Resources at Covenant Health provides high quality centralized sourcing and staffing services to all Covenant Health entities, 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 (employment) services assisted in hiring 1,842 employees during 2012. All new hires participated in various classroom orientation programs and on-line onboarding processes at the start of employment. Employment Services receives, on average, 1,071 applications per month. Through its Learning and Leadership Development (LLD) division, Human Resources provided over 300,903 training hours including both e-learning and classroom-based courses. LLD also manages a framework of over 50 identified leadership competencies. LLD offers more than 100 clinical nursing courses from both in-house and vendor sourcing. It also manages a host of clinical training opportunities including everything from CPR to Advanced Neurological and Neonatal Intensive Care courses. 44557742 902017 63267630 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 custom built 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 service that Covenant Health has recently centralized 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 older in their effort to lead healthier, more independent lives.Most Health Information Management support functions have been centralized within Covenant Health including coding, linking of patient visit information to help with continuity of care, release of information, chart analysis, and optical scanning of documents. The department provides essential services related to improving the quality of patient records and verification of information to support accurate billing. 44557742 902017 63267630 91541550 1 1 0 1 0 0 0 0 0 0 1 0 0 0 1 1 0 1 0 0 0 0 0 0 0 0 0 1 1 1 1 0 0 0 0 0 0 0 0 0 1 1 1 0 0 0 1 1 1 0 0 1 641 0 1 1002 1 1 1 1 CA 0 0 0 0 0 0 0 0 X 22 18 0 0 0 0 0 0 0 1 1 1 0 1 1 1 1 1 1 1 1 0 X X Nancy Beck 8653746864 1420 Centerpoint Blvd Bldg C Knoxville TN 379321960 Anthony L Spezia 50.00 0.00 X X 1526847 0 230374 Gerald Boyd 1.00 0.00 X 679 0 0 Dr Richard Brinner 1.00 0.00 X 1291 0 0 Dr Mitchell Dickson 1.00 0.00 X 1914 0 0 Pamela P Fansler 1.00 0.00 X 0 0 0 James Fitzsimmons 1.00 0.00 X 1742 0 0 Kimberly Greene 1.00 0.00 X 937 0 0 Wayne Heatherly 1.00 0.00 X 752 0 0 Jim Johnson Jr 1.00 0.00 X 1642 0 0 Karla Lane 1.00 0.00 X 924 0 0 Eddie Mannis 1.00 0.00 X 0 0 0 Larry Mauldin 1.00 0.00 X 834 0 0 Dr Joseph Metcalf 3.00 0.00 X 15603 0 0 George Miller 1.00 0.00 X 978 0 0 Alvin Nance 1.00 0.00 X 966 0 0 Linda Ogle 1.00 0.00 X 0 0 0 Mitchell Steenrod 1.00 0.00 X 805 0 0 Carl Storms 1.00 0.00 X 1641 0 0 Joseph E Sutter 1.00 0.00 X 1313 0 0 Richard Swanson 1.00 0.00 X 0 0 0 Joe Ben Turner 1.00 0.00 X 783 0 0 David C Verble 1.00 0.00 X 958 0 0 John T Geppi 50.00 0.00 X 673095 0 27138 James D Vandersteeg 50.00 0.00 X 709162 0 33870 William M Ward 50.00 0.00 X 350997 0 33160 Lawrence C Kleinman 50.00 0.00 X 398236 0 19019 Janice McKinley 50.00 0.00 X 262307 0 17334 Larry R Lassiter 1.00 50.00 X 424641 0 30962 Michael R Belbeck Jr 1.00 50.00 X 386592 0 34819 Keith N Altshuler 1.00 50.00 X 349933 0 30339 Gordon E Lintz 1.00 50.00 X 308323 0 19145 James D Gann 1.00 50.00 X 254570 0 27489 Richard L Clark 0.00 0.00 X 273826 0 9800 5952291 0 513449 52 1 1 0 Morrison Mgmt Specialists Inc PO Box 102289 Atlanta GA 303682289 Cafeteria Management 18951962 Relay Health 5995 Windward Parkway Alpharetta GA 30005 Software Maintenance 3025742 Executive Health Resources 15 Campus Blvd Ste 200 Newton Square PA 19073 Review Services 2823631 Dell Marketing LP 2300 W Plano Pkwy Treas Dept Bl Plano TX 75075 Professional Service Fees 2784045 Quest Diagnostics PO Box 749409 Los Angeles CA 900749409 Patient Diagnostic Lab Services 2653061 78 236671 98448 236671 Management Fees 561000 76300230 76300230 Transcription Services 561499 5442170 4779458 662712 Telephone Services 517000 5053263 4921617 131646 Community Outreach 621990 419975 414909 5066 Managed Care Services 541900 68702 68702 87284340 23307261 23307261 473163 473163 364101 120769 243332 243332 26482 216850 11118314 11078353 11760201 19260 -641887 11059093 10417206 10417206 3471732 3416932 54800 54800 122016773 110251438 889542 10639122 829143 829143 72874 72874 4173801 3613425 560376 39198105 34181141 5016964 2427239 2118494 308745 6651448 5806147 845301 3185192 2780036 405156 1619562 741252 878310 70000 70000 15500 15500 2132465 1656996 475469 666697 666697 6439915 6271216 168699 11236268 11236268 1566007 1510449 55558 277772 262850 14922 585227 275798 309429 15074982 15074982 3265392 2748483 516909 564240 275568 288672 Unrelated Business Inco 10500 10500 Subscriptions 1036559 793832 242727 Dues and Licenses 738930 537596 201334 Meals and Entertainment 59148 39249 19899 219425 33554 185871 102116391 91541550 10574841 0 1800 1700 24331691 27363582 482400 548178 6689469 7341137 118958834 18244313 55941942 100714521 844634509 858118766 18622469 16214264 148823966 107545155 1099528246 1117847303 54619201 41977092 45455991 46058912 677079609 686157441 28147040 27021754 805301841 801215199 X 294226405 316632104 294226405 316632104 1099528246 1117847303 X 19900382 38977080 -36471763 X X 0 1 X 1 0 X X X 0 0 0 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 11 0 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. RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED 1 1 0 1 10 0 0 1 9610 0 1 96381 106001 0 Explanation of Lobbying Activities: Part II-B, Line 1: Covenant Health indirectly conducts lobbying activities through various membership organizations. A portion of membership dues paid is included in the amount on Line 1i. 9427981 9427981 18149919 2570368 15579551 1236240 1054426 181814 18886866 14619519 4267347 71257828 71257828 100714521 Accrued Interest Receivable 5989241 Assets Limited as to Use 1553852 Bond Issuance Costs, Net 10859628 Deferred Compensation 3986092 Due from Affiliates, Net 84707986 Long Term Deposit 304481 Other Receivables 143875 107545155 Long-Term ASO Agreement 2867796 Long-Term Deferred Compensation 5784976 Long-Term Reserve for Malpractice 17330447 Long-Term Reserve for Workers Comp 1038535 27021754 X Description of Uncertain Tax Positions Under FIN 48: Part X, Line 2: Part X, Line 2: Note B to the consolidated audited financial statements of Covenant Health reads in part: "Income taxes: Covenant and certain of its subsidiaries or controlled entities are exempt from income taxes pursuant to Section 501(c)(3) of the Internal Revenue Code. Accordingly, no provision for income taxes on qualifying activities has been made for these entities in the accompanying consolidated financial statements. However, certain entities and operations are subject to income taxes which are accounted for in accordance with Financial Accounting Standards Board (FASB) Accounting Standards Codification (ASC) 740, Income Taxes (See Note G)." Note G to the consolidated audited financial statements of Covenant Health, reads in part: "Covenant had no unrecognized tax benefits at December 31, 2012 and 2011. As such, no interest or penalties were recognized in the Consolidated Statements of Operations related to unrecognized tax benefits. At December 31, 2012, tax returns for 2009 through 2012 are subject to examination by the Internal Revenue Service. Covenant has no uncertain tax positions that would require financial statement recognition or disclosure under generally accepted accounting principles at December 31, 2012 or 2011." 1 American Cancer Society 871 Weisgarber Road Knoxville TN 37909 131788491 501(c)(3) 10000 Support for 2012 Hope Gala American Heart Association 4708 Papermill Road Knoxville TN 37909 135613797 501(c)(3) 25000 Sponsorship of 2012 Heart Walk and 2013 Gala Great Smoky Mtn Council Boy Scouts of America PO Box 51885 Knoxville TN 37950 620476811 501(c)(3) 7000 Support for 2012 Friends of Scouting Campaign Cancer Support Community Inc 2230 Sutherland Avenue Knoxville TN 37919 581846210 501(c)(3) 15000 Support for 2013 Cancer Support Catholic Charities of East TN Inc 3009 Lake Brook Blvd Knoxville TN 37909 621377551 501(c)(3) 43000 Support of HUD housing and sponsorship of fundraisers Congressional Medal of Honor Society Convention 11400 Parkside Drive Ste 200 Knoxville TN 37934 453413985 501(c)(3) 25000 Support of 2014 Convention Support of 2012 Legacy Dinner East TN Economic Development Agency 10215 Technology Drive Ste 202 Knoxville TN 37932 621158958 501(c)(3) 70000 General support East TN Children's Hospital PO Box 15016 Knoxville TN 37901 626002604 501(c)(3) 5990 Support of 2012 Center Stage EventGeneral support Fort Sanders Foundation 280 Ft Sanders West Blvd Ste 202 Knoxville TN 37922 621748601 501(c)(3) 10000 Fundraisers benefiting Patricia Neal Rehab. Center, Peninsula, & the Hope Center Support for Marblegate fundraiser Honor Air Knoxville 7536 Taggart Lane Knoxville TN 37938 262825063 501(c)(3) 20000 General support General support fundraiser - Southern Summer Nights Interfaith Health Clinic 315 Gill Avenue Knoxville TN 37917 581947641 501(c)(3) 62000 General support for Interfaith Health Clinic Support of 2012 Walk to Cure Diabetes Knoxville Academy of Medicine Foundation 115 Surburban Road Knoxville TN 37923 621458199 501(c)(3) 17500 Knoxville Area Project Access - medical care for the needy Knoxville Community Development Corp 901 N Broadway Knoxville TN 379213550 626001582 501(c)(3) 62500 Support for 2012 Fund Case Mgmt Services for At Risk Residents Knoxville Medical Mission Foundation 1932 Historic Ferry Way Knoxville TN 37922 300197352 501(c)(3) 10000 General support Knoxville News Sentinel Charities Inc 2332 News Sentinel Drive Knoxville TN 37921 510141541 501(c)(3) 25000 General support fundraiser - Knoxville Sentinel Open Tournament Knoxville Symphony Orchestra 100 S Gay St Ste 302 Knoxville TN 37901 626008097 501(c)(3) 8090 General support Knoxville Track Club PO Box 32035 Knoxville TN 37930 620731345 501(c)(3) 50000 General support; Covenant Health Marathon 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 General support Innovation Valley Inc 17 Market Square Ste 201 Knoxville TN 37902 262087582 501(c)(3) 60000 General support Morristown Hamblen Hospital Foundation PO Box 1178 Morristown TN 37816 621697090 501(c)(3) 9050 General support fundraising Roane State Community College Foundation 276 Patton Lane Harriman TN 37748 581413034 501(c)(3) 150000 Allied Health & Technolgy Building Pledge Robert F Thomas Foundation PO Box 4395 Sevierville TN 37864 581537582 501(c)(3) 7000 Fundraisers to benefit Leconte Medical Center Sacred Heart Church 711 South Northshore Drive Knoxville TN 37919 620572260 501(c)(3) 8000 Hope for Haiti medical outreach; general support for fundraising Thompson Cancer Survival Center Foundation 1915 White Avenue Knoxville TN 37916 582130450 501(c)(3) 7000 2012 Buddy's Race for a Cure 2012 Rugby Park Sponsorship General support Variety Children's Charity of East TN 7132 Regal Lane Knoxville TN 37918 331025696 501(c)(3) 20000 General support W C Two 2351 Dandridge Avenue Knoxville TN 37915 621845117 501(c)(3) 10000 General support Boys & Girls Club of the TN Valley 220 Carrick Street Ste 318 Knoxville TN 37921 620475743 501(c)(3) 7411 Drug screenings 27 0 Scholarships to employees of related facilities 41 72874 Procedure for Monitoring Grants in the U.S.: Part I, Line 2: 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. X X X 1 1 X X X X 1 1 0 0 0 0 0 0 0 Anthony L Spezia 941953 0 379600 0 205294 0 213800 0 16574 0 1757221 0 0 0 John T Geppi 421940 0 171991 0 79164 0 9800 0 17338 0 700233 0 0 0 James D Vandersteeg 463378 0 182553 0 63231 0 9800 0 24070 0 743032 0 0 0 William M Ward 236135 0 72268 0 42594 0 9800 0 23360 0 384157 0 0 0 Lawrence C Kleinman 296364 0 75000 0 26872 0 8385 0 10634 0 417255 0 0 0 Janice McKinley 192578 0 48994 0 20735 0 8722 0 8612 0 279641 0 0 0 Larry R Lassiter 290786 0 89677 0 44178 0 9800 0 21162 0 455603 0 0 0 Michael R Belbeck Jr 281367 0 58400 0 46825 0 9800 0 25019 0 421411 0 0 0 Keith N Altshuler 256759 0 53791 0 39383 0 9800 0 20539 0 380272 0 0 0 Gordon E Lintz 199460 0 56734 0 52129 0 9800 0 9345 0 327468 0 0 0 James D Gann 8196 0 23709 0 222665 0 7310 0 20179 0 282059 0 0 0 Richard L Clark 0 0 0 0 273826 0 9800 0 0 0 283626 0 0 0 Part I, Line 1a Part I, Line 1a: Tax gross-up payments are provided to certain executives and managers. Additionally, moving expenses 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, Lines 4a-b Part I, Lines 4a-b: Severance payments were provided to the following individuals: James Gann - $106,389, Richard Clark - $271,170. Anthony Spezia was a participant in two nonqualified deferred compensation plans, which will be referred to as Plan A and Plan B. In 2011 Mr. Spezia vested in Plan A, and the accumulated balance as of August 1, 2011 was included in his 2011 taxable income. An Amendment to Plan A was adopted effective August 1, 2011 which terminated further accruals (contributions) to the plan. However, the Amendment does allow the accrual of interest on undistributed amounts which will be subject to risk of forfeiture until such time as indicated in the Amendment. Interest earned by Plan A in 2012 amounted to $71,781.22 and is not required to be reported in Part II, as Mr. Spezia is not substantially vested in earnings accumulated after July 31, 2011. Plan B was established in 2011. Employer contributions to Plan B during 2012 totaled $204,000, which is reported in Column C of Schedule J, Part II. Interest earned by Plan B during 2012 of $17,909.59 is not required to be reported in compensation in Part II, as Mr. Spezia is not substantially vested in Plan B. A Health Educ & Housing Facil Brd of Knox Co 621220275 499523UUO 2006-12-20 46245448 See Part VI. 0 0 0 B Health Educ & Housing Facil Brd of Knox Co 621220275 499523VR6 2011-03-24 103700000 See Part VI. 0 0 0 C Health Educ & Housing Facil Brd of Knox Co 621220275 noneavail 2011-09-15 135500000 See Part VI. 0 0 0 D Health Educ & Housing Facil Brd of Knox Co 621220275 noneavail 2011-09-15 125000000 See Part VI. 0 0 0 A 23755001 46245448 17872725 506941 21983506 2010 0 1 1 1 B 122000000 103700000 2006 1 0 1 1 C 35500000 135500000 64712322 35287678 1 0 0 1 D 125000000 2010 1 0 1 1 A 0 0 0 0 0.00000 0.00000 0.00000 0 0 1 C 0 0 0 0 0.00000 0.00000 0.00000 0 0 1 D 0 0 0 0 0.00000 0.00000 0.00000 0 0 1 A 1 0 0 0 0 1 B 0 1 0 0 1 0 0 0 1 C 0 1 0 0 1 0 0 0 1 D 0 1 0 0 1 0 0 0 1 A 1 B 1 C 1 D 1 As there are five bond issues to be presented on Schedule K, there is an additonal Schedule K included. Schedule K, Part I, Column F Bond Issues - description of purpose: Bond Issue A, date of issue 12/20/2006 - 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, date of issue 3/24/2011 - These bonds were issued for the partial refunding of bonds issued December 12, 2002. Bond Issue C, date of issue 9/15/2011 - $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 facilities. Bond Issue D, date of issue 9/15/2011 - These bonds relate to the conversion of a portion of bonds issued December 20, 2006. Schedule K - Second Form Bond Issue A, date of issue 12/13/2012 - These bonds were issued to refund capital appreciation bonds and capital interest bonds issued December 12, 2002. A Health Educ & Housing Facil Brd of Knox Co 621220275 499527BM0 2012-12-13 161291013 See Part VI. 0 0 0 A 159999519 161291013 1291494 2006 1 0 1 1 A 0 1 0 0 1 0 0 0 1 A 1 First Tennessee Bank Independent contractor 202132 Investment management and loan closing fees 0 X 53 22141 Retail value,expert X 175 FMV X 32567 Various X 1 520 Comparables X 3 1556 Retail value X Gift cards/certificates/tickets 84 32104 Retail or face value X Various 19 9385 Various 0 0 0 Organization Mission Statement Form 990, Part III, Line 1 In 1996, Fort Sanders Health System and MMC Healthcare System of Oak Ridge consolidated to form Covenant Health, with a mission of serving its communities by improving the quality of life through better health. Covenant Health is a nationally recognized top health system in many areas: patient care, quality performance, cost, integration, information technology, finances, ethics and innovation. To meet the challenges and implications of healthcare reform, Covenant Health has committed to these imperatives: * Serving the community as a not-for-profit health system. * Leading in quality and service. * Outstanding governance and leadership. * An engaged work force with the right skill sets. * Being the practice environment of choice for physicians. * Reinvesting in communities, providing programs, services, technologies and facilities that improve local healthcare services and patient care. Covenant Health has invested more than a billion dollars in its communities since 2000 - a commitment no other healthcare organization has approached. Covenant Health has opened new hospitals, expanded services, and brought cutting-edge medical technology to the region. * Meeting the challenges of the healthcare environment through effective strategic planning and wise use of resources. * Providing excellent care to every patient, every time. This commitment to excellence will help the system accomplish its mission of improving the quality of life through better health. In order to deliver on the promise of excellence in today's healthcare environment, preparation is critical. Covenant Health's Board of Directors ("the Board") is committed to advancing its understanding of health care. The Board is continually learning about hospitals' operational challenges and how the current environment affects physicians and their practices. The healthcare universe is constantly shifting. The Board members are volunteers, but have a passion for Covenant Health's mission, and a desire to expand its knowledge in preparation for leading the organization. Dedication to a shared goal is essential. Very few community endeavors are as important as making high-quality health care available to its citizens. Our patients and their families are at vulnerable points in their lives, and the Board believes it is a privilege to meet their healthcare needs. Experience is a valuable asset. Covenant Health has a legacy of delivering high-quality care, which will help to weather the storms of change, including transitioning to value-based reimbursement. COVENANT HEALTH MEMBER ORGANIZATIONS AND SERVICES Covenant Health Board members and administrative leaders serve their communities through strategic planning and successful operation of these member organizations: Hospitals and Other Healthcare Providers: Covenant Homecare and Hospice Fort Loudoun Medical Center Fort Sanders Perinatal Center Fort Sanders Regional Medical Center LeConte Medical Center Methodist Medical Center of Oak Ridge Morristown-Hamblen Healthcare System Parkwest Medical Center Peninsula Hospital, a Division of Parkwest Medical Center Roane County Medical Center Thompson Cancer Survival Center Thompson Oncology Group Knoxville Heart Group Outpatient and Specialty Care Departments, and Joint Ventures: Fort Sanders West Diagnostic Center Fort Sanders West Outpatient Surgery Center Patricia Neal Rehabilitation Center Peninsula Outpatient Centers Fort Sanders Sevier Nursing Home Foundations: Fort Sanders Foundation Methodist Medical Center Foundation Morristown-Hamblen Hospital Foundation Thompson Cancer Survival Center Foundation BRINGING QUALITY CARE TO LOCAL COMMUNITIES Covenant Health delivers quality care, with services designed to meet the specific needs of people in the communities it serves. Seven acute care hospitals located in Knoxville and surrounding areas comprise the foundation of the health system. The hospitals offer comprehensive care, including emergency care, specialty services, and a full range of diagnostics and treatment, provided by board-certified medical staffs. Three Covenant Health hospitals - Fort Sanders Regional, Methodist, and Parkwest Medical Centers, were named among the top 10 hospitals in Tennessee in 2013 by U.S. News and World Report, recognizing excellence in both overall and specialty care. Several hospitals have been recognized for clinical accomplishments by VHA, Inc., a cooperative of non-profit healthcare organizations. In 2013, the community celebrated the opening of the new 50-bed Roane County Medical Center in Harriman. The new hospital brings expanded medical services and sophisticated technology to the people of Roane County. In addition to comprehensive hospital services, Covenant Health provides: * Innovative cancer care and technologies to deliver radiation therapy and other cancer treatment in Knox, Sevier, Anderson and Hamblen counties. * Nationally recognized care for patients suffering from physical disabilities, stroke and traumatic brain injury at Fort Sanders Regional Medical Center's Patricia Neal Rehabilitation Center. * Affiliated physician clinics throughout the region which offers convenient access to primary and specialty care. * Rehabilitation services including physical therapy, speech therapy, sports medicine, and specialized therapy such as hand therapy and vestibular (balance) rehabilitation. RACING AGAINST TIME AND DISTANCE IN STROKE CARE With Fort Sanders Regional Medical Center's "tele-stroke" robot, East Tennessee stroke patients can benefit from early consultation with the hospital's stroke experts - regardless of where patients are located across the region. Fort Sanders Regional Medical Center ("Fort Sanders") introduced robots to the region in 2012. The InTouch R7 robot is a mobile communications platform that enables stroke patients to receive consults from Fort Sanders' neurologists via its video screen "face." The robot allows neurologist's availability to patients in outlying areas 24 hours a day. Covenant Health stationed its first two robots in the emergency departments at Parkwest Medical Center in Knoxville and LeConte Medical Center in Sevierville. The telestroke network allows physicians in surrounding hospitals to use live Web video streaming to consult with Fort Sanders Stroke Center neurologists as soon as a patient arrives at the community hospital. The neurologist can remotely review patient information and examine and talk with the patient, family members and local clinicians to help determine the best course of treatment, all at the patient's bedside. A STROKE CENTER OF EXCELLENCE Fort Sanders is a Stroke Center of Excellence, and the only facility in the region to hold both a Comprehensive Stroke Center certification from the Joint Commission and three separate stroke accreditations from the Commission on the Accreditation of Rehabilitation Facilities. Fort Sanders has a team of experts available to treat patients 24 hours a day, seven days a week. The stroke team includes emergency room physicians, neurologists, neurosurgeons, neurointerventional radiologists, nurses and therapists who quickly diagnose patients and use the most technically advanced methods available to remove clots, repair broken arteries that cause strokes, and restore blood flow to the brain. TAVR - CHARTING NEW DIRECTIONS IN HEART CARE In 2012, Parkwest Medical Center ("Parkwest") performed its first transcatheter aortic valve replacement (TAVR) procedure. Parkwest is the first hospital in the area to offer TAVR as a minimally invasive procedure to help men and women with the progressive, life-threatening condition known as aortic stenosis. Within the first year, the TAVR team of physicians from Parkwest and Fort Sanders Regional Medical Centers performed surgery for nearly 60 people who were deemed inoperable for traditional open-heart surgery. The patients received new heart valves via a catheter tube inserted either into the femoral artery or through the rib cage. Recovery is markedly shorter than traditional open-heart surgery. In most cases the patients were discharged from the hospital within three to six days. An important aspect of TAVR is its multi-disciplinary approach. The TAVR team includes physicians specializing in cardiovascular and cardiothoracic surgery, interventional cardiology, and cardiac anesthesiology, as well as nurses and technicians with specialized training. The operating room used for TAVR procedures at Parkwest is also multi-disciplinary in design. The $2.6 million hybrid operating room combines the resources of a cardiac catheterization lab and an operating room, including the imaging equipment needed for minimally invasive procedures. ACHIEVING QUALITY THROUGH PARTNERSHIPS WITH PHYSICIANS Overall, Covenant Health's desire for alignment is driven by the need to fully evolve as a healthcare system. In pursuing its goal of outstanding quality and seamless continuum of care, Covenant Medical Management, Inc. (CMM), a for-profit entity in the Covenant Health system, has developed models with physicians that include both employment and joint ventures. CMM provides practice management services and support to over 120 primary care and specialty physicians in more than 60 practices in East Tennessee. CMM recently added Southern Medical Group and Family Care Specialists to its employed physician groups that include: * Cardiology Associates of East Tennessee * Crossville Medical Group * Fort Sanders Women's Specialists * Tennessee Brain and Spine CMM also acquired a new, separate corporation, East Tennessee Cardiovascular Surgery Group, in 2012. Prior to joining the Covenant Health system, the surgeons in this practice served as the primary cardiac surgeons for Fort Sanders Regional, Methodist, and Parkwest Medical Centers and worked in the system's Valve Centers and TAVR program. BEHAVIORAL HEALTH - A COMMITMENT TO ESSENTIAL SERVICES In 2012, Peninsula, a division of Parkwest Medical Center, faced an unprecedented challenge: Lakeshore, a state-funded mental health institute, would be closing its doors for good, and the majority of patients would funnel into Peninsula Hospital. The closing was a strategic move by the state Department of Mental Health to follow the national trend of moving behavioral health toward community-based care and away from state-funded care. With a multi-professional team made up of experienced people from across the continuum of mental health care, Peninsula laid out a plan to accommodate the influx of hospital admissions, reduce costs, and improve the quality of care for mental health patients. The team was challenged by not only having more patients, but patients with serious and complex mental disorders. Changes in staffing and processes helped create a smooth admission process and improvement of service. On average, Peninsula serves about a dozen more inpatients per day since Lakeshore closed. Even with the additional volume, Peninsula has been able to increase its customer satisfaction score and maintain or improve its performance in safety quality measures. Many of the changes which resulted in taking the patients from Lakeshore translated to better service. For example, a process was developed to assess and enroll the patients in CoverRX, the state-funded program for prescription coverage. Patients have benefited by increased collaborative efforts within the community such as regular meetings with a community providers group including representatives from local law enforcement, hospital emergency departments, mobile crisis, and a state mental health facility. The group works on the continuum of services for behavioral health patients in the area. Peninsula participates in the Crisis Intervention Training (CIT) for officers from the surrounding areas' police and sheriff's offices. The training facilitates understanding about mental illness, and when that happens, patients benefit. A partnership with the State of Tennessee brought improvements to the community based care of mental health patients, such as transportation and medications. As a result, more outpatients are keeping their first appointments, and there are a lower number of readmissions. In addition to the 155-bed inpatient psychiatric hospital in Blount County, Peninsula also has outpatient facilities in Knox, Blount, Loudon and Sevier counties. SETTING THE STANDARD FOR TECHNOLOGY The recently enacted American Recovery and Reinvestment Act includes incentives and penalties designed to accelerate our nation's adoption and "meaningful use" of electronic health records, ("EHRs"). The implementation of meaningful use initiatives is changing the way healthcare is delivered not only at Covenant Health, but also across Tennessee, and throughout the U.S. With widespread adoption, EHRs can: * make a patient's current health information available in a single, secure, shared record, * provide real-time decision support designed to hardwire best practices and reduce care variability, * reduce paperwork, duplicate testing and other inefficiencies. Meaningful Use provides the technology infrastructure and electronic applications to connect care settings, reduce costs, improve efficiency and standardize quality. From 2015 forward, for every year that meaningful use requirements are not met, providers will receive penalties in the form of reduced reimbursement. At Covenant Health, interdisciplinary and multidisciplinary operational teams have been involved in developing and implementing applications and processes related to the main components of Meaningful Use: * E-prescription writing, and computerized patient order entry, * Interoperability, or exchanging key clinical information among providers and patients, * Automated quality reporting. Through Meaningful Use initiatives Covenant Health will transform the way it delivers care by improving patient outcomes, clinical quality, patient safety and organizational effectiveness. Covenant Health has installed a record number of applications related to Meaningful Use. Seven initiatives ranging from admission databases and medication reconciliation (important for patient safety) to computerized patient order entry and physician practice management software took place in 2012 and continued in 2013. The successful installation of multiple applications in a one-year period is unprecedented in the IT world. Quality assurance processes are in place to ensure delivery of the best applications and processes for patient care, clinical quality, and patient safety. "MOST WIRED" Hospitals & Health Networks magazine, the journal of the American Hospital Association, has named Covenant Health among the nation's Most Wired healthcare organizations in the 15th annual Most Wired Survey and Benchmarking Study. It is the 10th time that Covenant Health has been named to the Most Wired list. Although Covenant has been named among the nation's Most Wired many times, the health systems that made the list in recent years have had to meet the demands of a more stringent analytic structure. The Most Wired survey includes questions about IT initiatives that support Meaningful Use requirements. It measures IT achievements in four focus sections: infrastructure, business and administrative management, clinical quality and safety (hospital inpatient/outpatient) and clinical integration (ambulatory/physician/community). Participating organizations must meet specific criteria for each section in order to be named "Most Wired." Most Wired surveys were completed by 659 healthcare organizations representing 1,713 hospitals, or roughly 30 percent of all U.S. hospitals. PHILANTHROPY TURNS CHALLENGE INTO OPPORTUNITY The Covenant Health Office of Philanthropy coordinates the philanthropic contributions of individuals and businesses throughout East Tennessee and beyond in support of health care in the region. Fund raising efforts are led by volunteer boards and staff at four foundations: Fort Sanders Foundation, Methodist Medical Center Foundation, Morristown-Hamblen Hospital Foundation, and Thompson Cancer Survival Center Foundation. When Fort Sanders Health Systems created its first fund raising office, Fort Sanders Foundation, in the mid-1970s to raise funds to support Fort Sanders Regional Medical Center, it was a progressive move for a health care provider. Fund raising was not a need, but more in the category of "nice to have." This status has changed in today's era of healthcare reform. Financial resources have tightened and hospitals look to the community for charitable contributions that are now very much in the "need to have" category if they are to continue to meet the healthcare needs of the people of East Tennessee. During the past year these foundations received contributions of approximately $3.7 million to help provide new equipment and facilities at the hospitals, staff training and patient care programs. While the Office of Philanthropy staff coordinates community events and fund raisers, local community leadership and involvement is critical to fund raising success. In an effort to expand the cadre of informed volunteer leaders in the community, the Office of Philanthropy launched a new education program this year, Covenant Answers: A Healthcare Leadership Academy. Inaugural Academy participants included representatives from the boards of Covenant Health, and Fort Sanders and TCSC foundations. Future Leadership Academy classes will include business and community representatives from throughout Covenant Health's service area. Over a five-month period, class members attended half-day sessions at five Covenant hospitals, which included behind-the-scenes tours and hands-on access to the latest technologies and treatments. Participants discussed the challenges of the current health care environment with Covenant physicians and clinicians, heard firsthand from patients whose recovery hinged on the excellent care provided at our hospitals, and even tried their hands at using adaptive rehab equipment and maneuvering a surgical robot. IMPROVING HEALTH BEYOND HOSPITAL WALLS One of the greatest challenges facing a healthcare organization is not only caring for the patients and families who receive direct services, but making a positive impact in the health of the surrounding community. That is the mission of Covenant Health: reaching beyond hospital walls to improve the quality of life through better health. In all the communities Covenant Health serves, local initiatives and partnerships create opportunities to interact with people of all ages and encourage healthier lifestyles. * In Knoxville more than 7,000 people participated in the annual Covenant Health Knoxville Marathon, which attracted local runners and hand cyclists, as well as competitors from throughout the U.S. and other countries. * The Covenant Health Biggest Winner Weight Loss Challenge is a friendly competition that encourages East Tennesseans to get off the couch and get moving for a fit and healthy lifestyle. Team members train together for five months, with the goal of crossing the finish line in Covenant Health Knoxville Marathon events. Participants challenge other East Tennesseans to start a health journey that will change their lives for the better. * Some of the funds raised through the Covenant Health Knoxville Marathon were contributed to The Patricia Neal Rehabilitation Center's Innovative Recreation Cooperative, a collaboration of groups and individuals who help disabled persons enjoy leisure and recreation activities such as water skiing and cycling. * The Covenant Kids Run attracted over 1,000 children who participated in a "marathon" of activities over a period of several weeks, culminating in a run to Neyland Stadium on the day before the Covenant Health Knoxville Marathon. * Covenant Health was the fitness sponsor of the Dogwood Arts Festival, held annually in April. Fitness activities included several outdoor walks, "Bikes and Blooms" bike rides on local Dogwood trails, and a Dogwood Mile run and Kids Race held in downtown Knoxville. * Covenant HomeCare Hospice helps children grieving the loss of a loved one through Katerpillar Kids Camp, offered with the support of Variety-The Children's Charity. The camp is staffed by health system volunteers and helps children in grades 1-12 express their feelings in a supportive environment while enjoying camp activities. * Morristown-Hamblen's Wellness of Women is dedicated to improving the lives of area women and their families. The program sponsors events such as an annual Girls Night Out, which offers free health screenings and encourages women to have fun while learning to stay healthy. UNCOMPENSATED CARE One of the most tangible expressions of the charitable purpose of Covenant Health is providing care to people in need. As a not-for-profit system, Covenant Health provides medically necessary services to people with limited resources. Covenant Health actively participates in the state's TennCare program, and collaborates with other area providers to identify and support efforts to make community healthcare resources available for those in need. The Community Benefit totals for uncompensated care are included on the Forms 990 for the individual Covenant Health hospitals. Form 990, Part VI, Section B, line 11 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 990s is selected (a different entity each year) for distribution to each member of the Committee. Management then reviews in detail each of the Form 990 schedules and describes variances between entities, if any. The remaining eleven Forms are made available for review by any committee member. The same presentation is made to the Covenant Health Board of Directors at the October meeting. All twelve Forms 990 are then made available to all Board members for their review throughout the month of October. Form 990, Part VI, Section B, line 12c Board members, officers and employees are required to adhere to rules and policies regarding conflicts of interest. Covenant Health distributes a Board-approved Code of Conduct to all employees. The Code covers among other subjects, conflicts of interest. Additionally, managers are required to complete and sign an annual management certification that addresses conflicts of interest. Board members' conflicts of interests are dealt with in the corporate bylaws, and Board members are required to complete and sign a conflict of interest questionnaire on an annual basis. The Integrity Compliance Office maintains records that contain conflict of interest information obtained from Board members, officers and employees. These records are available to be queried prior to engaging in business transactions. The Integrity Compliance Officer initially reviews all conflict of interest data. Based on this information, the officer determines what conflicts of interest exist at that point in time. Between times when surveys are collected Board members are expected to disclose any new conflicts that have arisen that affect pending Board decisions. As well, managers and other employees are expected to report conflicts to the Integrity Compliance Officer as they arise. Depending on the nature of the conflict and the circumstances surrounding the conflict and transaction, the Integrity Compliance Officer, Senior Leadership, or the Board of Directors may review the conflict of interest. Where appropriate these bodies may also consult legal counsel. Restrictions imposed on persons with a conflict of interest are determined on a case by case basis. For Covenant Health employees, the Integrity Compliance Officer in conjunction with Executive Leadership determines how to appropriately handle the conflict. In any conflict involving a Board member, such member is expected to excuse himself or herself from voting on matters that give rise to the conflict. Form 990, Part VI, Section B, line 15 Form 990, Part VI, Section B, Line 15a: Annual compensation for Covenant Health's President and Chief Executive Officer("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 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 Executive Vice President ("EVP"), and 0 - 35% for the Senior Vice President ("SVP") and Chief Administrative Officer ("CAO") 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 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 (retired) of Roane Medical Center Gordon Lintz, President & CAO of Morristown-Hamblen Healthcare System Gaye Jolly, President & CAO of Roane 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. Contact Addresses for Highest Compensated Employees: Form 990, Part VI, Line 9 Covenant Health compensates the Presidents and CAOs of its member hospitals in its role as a supporting organization. Their contact addresses are provided below. 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 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 James Gann 126 Indigo Bunting Rd. Harriman, TN 37748 Richard Clark 3102 Hampton Circle 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 9: Book/Tax Diff in Income(Loss) from Partnerships/Trusts -131,978. Return of capital from subsidiaries 859,924. Capital contributed to subsidiaries -37,383,522. Change in 457(b) unrealized gain/loss 183,813. 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. 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 health 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 8045 Roane Medical Center Dr 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 202 Knoxville TN 37922 621748601 Fundraising and patient outreach TN 501(c)(3) Line 11b, II 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 Endoscopy Center of Oak Ridge LLC 988 Oak Ridge Turnpike Ste 200 Oak Ridge TN 37830 621667358 Outpatient medical facility TN N/A Fort Sanders West OP Surgery Ctr LLC 210 Fort Sanders West Blvd Ste 106 Knoxville TN 37922 621366907 Outpatient surgery center TN N/A Fort Sanders West Associates 280 Fort Sanders West Blvd Ste 214 Knoxville TN 37922 621384171 Building ownership TN N/A Assoc of the Meridian Health Outpatient Surgery Ctr LLC 908 W 4th North St Morristown TN 37814 861167487 Outpatient surgery center 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 Fortress Corporation 280 Ft Sanders West Blvd Suite 214 Knoxville TN 37922 621308885 Management company TN N/A C 1 KASC Acquisition Company Inc 1420 Centerpoint Blvd Bldg C Knoxville TN 37932 263400984 Real estate holdings TN N/A C 0 Covenant Medical Management Inc 1400 Centerpoint Blvd Bldg A Ste 10 Knoxville TN 37932 621282917 Physician practice management TN N/A C 1 Knoxville Heart Group 1819 Clinch Avenue Suite 108 Knoxville TN 37916 271528941 Cardiology medical practice TN N/A C 0 East TN Cardiovascular Surgery Group Inc 9125 Cross Park Drive Ste 200 Knoxville TN 37923 621018541 Cardiovascular surgical practice TN N/A C 0 1 1 1 0 0 0 1 1 0 1 1 1 1 0 1 1 1 1 1 Fort Sanders Regional Medical Center G 1001873 FMV Fort Sanders Regional Medical Center L 21519456 FMV Fort Sanders Regional Medical Center O 334177 FMV Fort Sanders Regional Medical Center Q 39741877 Cost Fort Sanders Regional Medical Center S 236151 Cash Parkwest Medical Center G 5256960 FMV Parkwest Medical Center L 21912541 FMV Parkwest Medical Center O 456901 FMV Parkwest Medical Center P 186596374 Cost Parkwest Medical Center Q 131391665 Cost Parkwest Medical Center R 1717621 Cash Parkwest Medical Center S 6501327 Cash Methodist Medical Center G 1276220 FMV Methodist Medical Center L 13001996 FMV Methodist Medical Center O 289578 FMV Methodist Medical Center P 76761098 Cost Methodist Medical Center Q 62113962 Cost Methodist Medical Center S 1649047 Cash Morristown-Hamblen Hospital Association G 1817266 FMV Morristown-Hamblen Hospital Association L 6374557 FMV Morristown-Hamblen Hospital Association O 457841 FMV Morristown-Hamblen Hospital Association P 50213075 Cost Morristown-Hamblen Hospital Association Q 45060456 Cost Morristown-Hamblen Hospital Association R 50276653 Cash LeConte Medical Center G 480748 FMV LeConte Medical Center L 5238718 FMV LeConte Medical Center O 228608 FMV LeConte Medical Center P 41174517 Cost LeConte Medical Center Q 33187207 Cost LeConte Medical Center S 659832 Cash Roane County Medical Center G 424500 FMV Roane County Medical Center L 1212089 FMV Roane County Medical Center O 381613 FMV Roane County Medical Center P 2009401 Cost Roane County Medical Center Q 8274934 Cost Roane County Medical Center R 450450 Cash Fort Loudoun Medical Center G 94438 FMV Fort Loudoun Medical Center L 2942589 FMV Fort Loudoun Medical Center O 234362 FMV Fort Loudoun Medical Center P 15383161 Cost Fort Loudoun Medical Center Q 13033520 Cost Fort Loudoun Medical Center S 73288 Cash Thompson Cancer Survival Center G 61208 FMV Thompson Cancer Survival Center L 1770358 FMV Thompson Cancer Survival Center O 296441 FMV Thompson Cancer Survival Center P 14904365 Cost Thompson Cancer Survival Center Q 6758426 Cost Thompson Cancer Survival Center R 84857 Cash Thompson Oncology Group L 425076 FMV Thompson Oncology Group P 8409765 Cost Thompson Oncology Group Q 15357622 Cost Thompson Oncology Group R 105900 Cash Covenant Homecare G 120999 FMV Covenant Homecare L 1120843 FMV Covenant Homecare K 69213 FMV Covenant Homecare P 10391530 Cost Covenant Homecare Q 9877428 Cost Fort Sanders Perinatal Center P 8822784 Cost Fort Sanders Perinatal Center Q 7308961 Cost Surgery Endoscopy Ctr of Morristown Q 203373 Cost Knoxville Heart Group L 200330 FMV Knoxville Heart Group P 2497394 Cost Knoxville Heart Group Q 4523330 Cost Fort Sanders West OP Surgery Center Q 72677 Cost Fort Sanders Foundation O 184840 FMV Fortress Corporation K 374919 FMV Fortress Corporation L 362132 FMV Fortress Corporation Q 546879 FMV Covenant Medical Management G 79067 FMV Covenant Medical Management Q 28757575 Cost Covenant Homecare A 2710 Cost Covenant Medical Management A 8331 Cost Fortress Corporation A 241 Cost