MORRISTOWN HAMBLEN HOSP: Form 990, tax year 2011

View the entire original 990 at ProPublica ↗

Organization: MORRISTOWN HAMBLEN HOSP (EIN 62-0545814)
Tax period: 2011-01-01 to 2011-12-31
Filed: 2012-11-13
IRS object ID: 201243189349301279
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 D
Schedule H
Schedule I
Schedule J
Schedule L
Schedule O
Schedule R

Return header ReturnHeader

Field	Value	IRS element (for citing)
Timestamp	2012-11-13T09:11:15-06:00	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	620545814	EIN

Name Name

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

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

US Address USAddress

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

Officer Officer

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

Doing Business As DoingBusinessAs

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

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

Address Principal Officer US AddressPrincipalOfficerUS

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

Field	Value	IRS element (for citing)
Gross Receipts	113926910	GrossReceipts
Group Return For Affiliates	0	GroupReturnForAffiliates
Organization501c3	X	Organization501c3
Web Site	www.mhhs1.org	WebSite
Type Of Organization Corporation	X	TypeOfOrganizationCorporation
Year Formation	1955	YearFormation
State Legal Domicile	TN	StateLegalDomicile
Activity Or Mission Description	MHHS operates a 167-bed hospital in Morristown & provides quality healthcare services to the region.	ActivityOrMissionDescription
Nbr Voting Members Governing Body	21	NbrVotingMembersGoverningBody
Nbr Independent Voting Members	16	NbrIndependentVotingMembers
Total Nbr Employees	1021	TotalNbrEmployees
Total Nbr Volunteers	86	TotalNbrVolunteers
Total Gross UBI	303587	TotalGrossUBI
Net Unrelated Business Txbl Income	101515	NetUnrelatedBusinessTxblIncome
Contributions Grants Prior Year	10000	ContributionsGrantsPriorYear
Contributions Grants Current Year	37427	ContributionsGrantsCurrentYear
Program Service Revenue Prior Year	50892571	ProgramServiceRevenuePriorYear
Program Service Revenue CY	112556375	ProgramServiceRevenueCY
Investment Income Prior Year	315187	InvestmentIncomePriorYear
Investment Income Current Year	-243441	InvestmentIncomeCurrentYear
Other Revenue Prior Year	673068	OtherRevenuePriorYear
Other Revenue Current Year	1537943	OtherRevenueCurrentYear
Total Revenue Prior Year	51890826	TotalRevenuePriorYear
Total Revenue Current Year	113888304	TotalRevenueCurrentYear
Grants And Similar Amnts Prior Year	85404	GrantsAndSimilarAmntsPriorYear
Grants And Similar Amnts CY	173590	GrantsAndSimilarAmntsCY
Benefits Paid To Members Prior Year	0	BenefitsPaidToMembersPriorYear
Benefits Paid To Members CY	0	BenefitsPaidToMembersCY
Salaries Etc Prior Year	20576537	SalariesEtcPriorYear
Salaries Etc Current Year	40485765	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	31777243	OtherExpensePriorYear
Other Expenses Current Year	76117621	OtherExpensesCurrentYear
Total Expenses Prior Year	52439184	TotalExpensesPriorYear
Total Expenses Current Year	116776976	TotalExpensesCurrentYear
Revenues Less Expenses Prior Year	-548358	RevenuesLessExpensesPriorYear
Revenues Less Expenses CY	-2888672	RevenuesLessExpensesCY
Total Assets BOY	55997130	TotalAssetsBOY
Total Assets EOY	64083055	TotalAssetsEOY
Total Liabilities BOY	18507002	TotalLiabilitiesBOY
Total Liabilities EOY	19025442	TotalLiabilitiesEOY
Net Assets Or Fund Balances BOY	37490128	NetAssetsOrFundBalancesBOY
Net Assets Or Fund Balances EOY	45057613	NetAssetsOrFundBalancesEOY
Info In Schedule O Part III	X	InfoInScheduleOPartIII
Mission Description	Morristown-Hamblen Healthcare System provides quality healthcare, in alignment with Covenant Health's mission to serve the community by improving the quality of life through better health, regardless of the patient's ability to pay.	MissionDescription
Significant New Program Services	0	SignificantNewProgramServices
Significant Change	0	SignificantChange
Expense	13108892	Expense
Revenue	11567058	Revenue
Description	Orthopedic Services: See Schedule O.Orthopedic Services: Expenses - $13,108,892; Revenue - $11,597,058Morristown-Hamblen Healthcare System's board-certified orthopedic surgeons are skilled in diagnosing and treating bone, muscle and joint disorders. Specialty areas include total hip and knee replacement, spinal surgeries, fractures, complex rotator cuff/shoulder repairs and hand reconstruction. The hospital treated 1,582 orthopedic surgery patients in 2011. Using a series of best practice guidelines and standard orders, the staff treats patients efficiently and provides the best opportunity for optimal outcomes.Intense inpatient rehabilitation begins after surgery in a group setting. It is one way of maximizing the patient's chance for a full recovery. The therapy staff specializes in treating a variety of orthopedic, neurologic, and medical problems, with an emphasis on helping individuals overcome disability caused by disease, injury, development abnormality, or amputation. The physical therapy staff at Morristown-Hamblen Healthcare System provides care for orthopedic, neurologic, and medical rehabilitation of individuals with neck, lower back, arm and leg injuries; sports and overuse injuries, arthritis, stroke, brain injury, and post-amputation needs. Specialty programs include sports medicine and wound/burn care.	Description

Activity2 Activity2

Field	Value	IRS element (for citing)
Expense	13105620	Expense
Revenue	12049335	Revenue
Description	Cardiovascular Services: See Schedule O.Cardiovascular Services: Expenses - $13,105,620; Revenue - $12,049,335Morristown-Hamblen Healthcare System offers a complete continuum of cardiovascular care including prevention and public education, diagnostic and interventional procedures, and rehabilitative services. During 2011, the program participated in five (5) community health fairs providing basic screenings and education to the residents of an eight-county service area. Cardiology provided over 21,000 diagnostic exams to both inpatient and outpatient populations. Tests included EKGs, echocardiograms, exercise stress, nuclear stress and Holter monitoring. Approximately 1,570 diagnostic cardiac catheterizations and 440 cardiac interventions were performed utilizing the latest technology in angioplasty, drug eluting stents and closure devices. Approximately 286 peripheral vascular procedures were performed in two state-of-the-art angioplasty suites. Cardiopulmonary Rehab provided 3,107 Phase II and 4,629 Phase III rehabilitation sessions. Future plans include adding Phase I educational services and participation in a congestive heart failure readmission initiative.	Description

Activity3 Activity3

Field	Value	IRS element (for citing)
Expense	9636083	Expense
Revenue	9282654	Revenue
Description	Surgical Services: See Schedule O.Surgical Services: Expenses - $9,636,083; Revenue - $9,282,654In 2011, surgeons at Morristown-Hamblen Healthcare System performed procedures on 6,860 patients in several surgical specialty areas. Under the clinical leadership of a board-certified Chief of Surgery, the surgery staff is committed to restoring quality of life to the fullest extent possible. Our focus in the surgical area is to reduce the risk of wound infection after surgery. This is achieved primarily by making sure our patients get the right medications at the right time on the day of surgery. Our success in preventing infection is measured by core measures which are compared to the national and state average.	Description

Activity Other ActivityOther

Field	Value	IRS element (for citing)
Expense	76289942	Expense
Grants	173590	Grants
Revenue	80350924	Revenue
Description	Expenses - $76,289,942, including Grants of $173,590; Revenue - $80,350,924As a full-service acute care hospital, Morristown-Hamblen Healthcare System features 24-hour emergency care, diagnostic imaging services, a dedicated women's center and four hospital-owned OB/GYN practices, three family care clinics for treatment of non-emergent conditions, and the Morristown Regional Cancer Center, as well as a host of other specialty medical services.	Description

Field	Value	IRS element (for citing)
Total Of Other Program Service Exp	76289942	TotalOfOtherProgramServiceExp
Total Of Other Program Service Grnt	173590	TotalOfOtherProgramServiceGrnt
Total Of Other Program Service Rev	80350924	TotalOfOtherProgramServiceRev
Total Program Service Expense	112140537	TotalProgramServiceExpense
Described In501 C3	1	DescribedIn501C3
Schedule B Required	1	ScheduleBRequired
Political Activities	0	PoliticalActivities
Lobbying Activities	0	LobbyingActivities
Subject To Proxy Tax	0	SubjectToProxyTax
Donor Advised Funds	0	DonorAdvisedFunds
Conservation Easements	0	ConservationEasements
Collections Of Art	0	CollectionsOfArt
Credit Counseling	0	CreditCounseling
Term Or Permanent Endowments	0	TermOrPermanentEndowments
Report Land Bldg Equip	1	ReportLandBldgEquip
Report Invest Oth Securities	0	ReportInvestOthSecurities
Report Prog Rel Invest	0	ReportProgRelInvest
Report Other Assets	0	ReportOtherAssets
Report Other Liabilities	1	ReportOtherLiabilities
Report Fin48 Footnote	1	ReportFin48Footnote
Independent Audit Financial Stmt	0	IndependentAuditFinancialStmt
Consolidated Audit Financial Stmt	1	ConsolidatedAuditFinancialStmt
School	0	School
Foreign Office	0	ForeignOffice
Foreign Activities	0	ForeignActivities
More Than5000 K To Organizations	0	MoreThan5000KToOrganizations
More Than5000 K To Individuals	0	MoreThan5000KToIndividuals
Professional Fundraising	0	ProfessionalFundraising
Fundraising Activities	0	FundraisingActivities
Gaming	0	Gaming
Hospital	1	Hospital
Financial Stmt Attached	1	FinancialStmtAttached
Grants To Organizations	1	GrantsToOrganizations
Grants To Individuals	0	GrantsToIndividuals
Schedule J Required	1	ScheduleJRequired
Tax Exempt Bonds	0	TaxExemptBonds
Excess Benefit Transaction	0	ExcessBenefitTransaction
Prior Excess Benefit Transaction	0	PriorExcessBenefitTransaction
Loan To Officer Or DQP	1	LoanToOfficerOrDQP
Grant To Related Person	0	GrantToRelatedPerson
Bsnss Rltnshp With Organization	0	BsnssRltnshpWithOrganization
Bsnss Rltnshp Thru Family Member	0	BsnssRltnshpThruFamilyMember
Officer Entity With Bsnss Rltnshp	1	OfficerEntityWithBsnssRltnshp
Deductible Non Cash Contributions	0	DeductibleNonCashContributions
Deductible Contributions Of Art	0	DeductibleContributionsOfArt
Terminated	0	Terminated
Partial Liquidation	0	PartialLiquidation
Disregarded Entity	0	DisregardedEntity
Related Entity	1	RelatedEntity
Related Org Controlled Entity	1	RelatedOrgControlledEntity
Transaction Related Entity	1	TransactionRelatedEntity
Transfers To Exempt Non Chrtbl Org	0	TransfersToExemptNonChrtblOrg
Activities Conducted Partnership	0	ActivitiesConductedPartnership
Schedule O Required	1	ScheduleORequired
Number Forms Transmitted With1096	222	NumberFormsTransmittedWith1096
Number W2 G Included	0	NumberW2GIncluded
Compliance With Backup Witholding	1	ComplianceWithBackupWitholding
Number Of Employees	1021	NumberOfEmployees
Employment Tax Returns Filed	1	EmploymentTaxReturnsFiled
Unrelated Business Income	1	UnrelatedBusinessIncome
Form990-T Filed	1	Form990-TFiled
Foreign Financial Account	0	ForeignFinancialAccount
Prohibited Tax Shelter Trans	0	ProhibitedTaxShelterTrans
Taxable Party Notification	0	TaxablePartyNotification
Non Deductible Contributions	0	NonDeductibleContributions
Quid Pro Quo Contributions	0	QuidProQuoContributions
Form8282 Property Disposed Of	0	Form8282PropertyDisposedOf
Funds To Pay Premiums	0	FundsToPayPremiums
Premiums Paid	0	PremiumsPaid
Indoor Tanning Services	0	IndoorTanningServices
Info In Schedule O Part VI	X	InfoInScheduleOPartVI
Nbr Voting Governing Body Members	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 (33 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	0.00	X	X	0	2492642	25707
Dr Richard Brinner
Director	0.00	X		0	0	0
Dr Mitchell Dickson
Director	0.00	X		0	1184	0
Pamela P Fansler
Director	0.00	X		0	0	0
Homer Fisher
Director	0.00	X		0	0	0
James Fitzsimmons
Director	0.00	X		0	1192	0
Dr William Hall
Director	0.00	X		0	1579	0
Wayne Heatherly
Director	0.00	X		0	747	0
Jim Johnson Jr
Director	0.00	X		0	1184	0
Karla Lane
Director	0.00	X		0	0	0
Eddie Mannis
Director	0.00	X		0	0	0
Larry Mauldin
Chairman	0.00	X		0	2832	0
Dr Joseph Metcalf
Director	0.00	X		0	0	0
George Miller
Director	0.00	X		0	0	0
Alvin Nance
Director	0.00	X		0	1235	0
Linda N Ogle
Director	0.00	X		0	0	0
Francis H Olmstead Jr
Director	0.00	X		0	0	0
Mitchell Steenrod
Director	0.00	X		0	1184	0
Carl Storms
Director	0.00	X		0	769	0
Joseph E Sutter
Director	0.00	X		0	1273	0
Richard Swanson
Director	0.00	X		0	0	0
Joe Ben Turner
Director	0.00	X		0	1192	0
David C Verble
Director	0.00	X		0	1251	0
John T Geppi
EVP/CFO	0.00		X	0	705467	29048
Richard L Clark
President & CAO	50.00		X	0	340642	29731
Maxwell Owens
VP-Financial Services	50.00		X	189779	0	20798
Jeremy Biggs
President & CAO (interim)	50.00		X	27693	0	0
Dedra C Whitaker
VP-Chief Nursing Officer	50.00			173737	0	23631	X
Peter Clark MD
Physician	50.00			701441	0	47020		X
Penny Knight MD
Physician	50.00			336301	0	31201		X
Billy Black MD
Physician	40.00			296729	0	34451		X
Frank Ellis MD
Physician	50.00			267225	0	27545		X
Jason Cox MD
Physician/ Hospitalist	50.00			262163	0	16793		X

Field	Value	IRS element (for citing)
Total Reportable Comp From Org	2255068	TotalReportableCompFromOrg
Total Reportable Comp Frm Rltd Orgs	3554373	TotalReportableCompFrmRltdOrgs
Total Other Compensation	285925	TotalOtherCompensation
Number Individuals GT100 K	20	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
Aramark Healthcare
10510 Twin Lakes Parkway	Charlotte	NC	282697658	Clinical Engineering & Technology	1326060
Sodexo Inc and Affiliates
PO Box 536922	Atlanta	GA	303536922	Cafeteria Management	789697
Medic Regional Blood Center
1601 Ailor Avenue	Knoxville	TN	37921	Blood Processing	441608
Nearterm Corporation
15915 Katy Freeway Suite 205	Houston	TX	770941700	Interim Management	417157
CompHealth Inc
PO Box 972651	Dallas	TX	753972651	Physician Services	395883

Field	Value	IRS element (for citing)
Number Of Contractors GT100 K	11	NumberOfContractorsGT100K
Government Grants	37427	GovernmentGrants
Total Contributions	37427	TotalContributions

Program Service Revenue ProgramServiceRevenue (3 entries)

DescriptionDescription	Business CodeBusinessCode	Total Revenue ColumnTotalRevenueColumn	Related Or Exempt Function IncomeRelatedOrExemptFunctionIncome	Unrelated Business RevenueUnrelatedBusinessRevenue
Medical Services	622110	111729868	111729868
Rental Inc - Affiliate	531120	525212	525212
Laboratory	621500	301295		301295

Field	Value	IRS element (for citing)
Total Program Service Revenue	112556375	TotalProgramServiceRevenue

Investment Income InvestmentIncome

Field	Value	IRS element (for citing)
Total Revenue Column	-253302	TotalRevenueColumn
Exclusion	-$253,302	ExclusionAmount

Gross Rents GrossRents

Field	Value	IRS element (for citing)
Real	236436	Real
Personal	2292	Personal

Less Rental Expenses LessRentalExpenses

Field	Value	IRS element (for citing)
Real	38467	Real
Personal	0	Personal

Rental Income Or Loss RentalIncomeOrLoss

Field	Value	IRS element (for citing)
Real	197969	Real
Personal	2292	Personal

Net Rental Income Or Loss NetRentalIncomeOrLoss

Field	Value	IRS element (for citing)
Total Revenue Column	200261	TotalRevenueColumn
Unrelated Business Revenue	2292	UnrelatedBusinessRevenue
Exclusion	$197,969	ExclusionAmount

Gross Amount Sales Assets GrossAmountSalesAssets

Field	Value	IRS element (for citing)
Other	10000	Other

Less Cost Oth Basis Sales Expenses LessCostOthBasisSalesExpenses

Field	Value	IRS element (for citing)
Other	139	Other

Gain Or Loss GainOrLoss

Field	Value	IRS element (for citing)
Other	9861	Other

Net Gain Or Loss Investments NetGainOrLossInvestments

Field	Value	IRS element (for citing)
Total Revenue Column	9861	TotalRevenueColumn
Exclusion	$9,861	ExclusionAmount

Other Revenue Misc OtherRevenueMisc (3 entries)

DescriptionDescription	Business CodeBusinessCode	Total Revenue ColumnTotalRevenueColumn	Related Or Exempt Function IncomeRelatedOrExemptFunctionIncome	ExclusionExclusionAmount
Cancer Center Investme	621400	606328	606328
Management Fees	531310	183996		$183,996
Billing Fees	561000	117887	117887

Miscellaneous Revenue MiscellaneousRevenue

Field	Value	IRS element (for citing)
Total Revenue Column	429471	TotalRevenueColumn
Related Or Exempt Function Income	270676	RelatedOrExemptFunctionIncome
Exclusion	$158,795	ExclusionAmount

Field	Value	IRS element (for citing)
Total Other Revenue	1337682	TotalOtherRevenue

Total Revenue TotalRevenue

Field	Value	IRS element (for citing)
Total Revenue Column	113888304	TotalRevenueColumn
Related Or Exempt Function Income	113249971	RelatedOrExemptFunctionIncome
Unrelated Business Revenue	303587	UnrelatedBusinessRevenue
Exclusion	$297,319	ExclusionAmount

Grants To Domestic Orgs GrantsToDomesticOrgs

Field	Value	IRS element (for citing)
Total	173590	Total
Program Services	173590	ProgramServices

Comp Current Officers Directors CompCurrentOfficersDirectors

Field	Value	IRS element (for citing)
Total	407945	Total
Management And General	407945	ManagementAndGeneral

Other Salaries And Wages OtherSalariesAndWages

Field	Value	IRS element (for citing)
Total	33999039	Total
Program Services	32454744	ProgramServices
Management And General	1544295	ManagementAndGeneral

Pension Plan Contributions PensionPlanContributions

Field	Value	IRS element (for citing)
Total	596027	Total
Program Services	544094	ProgramServices
Management And General	51933	ManagementAndGeneral

Other Employee Benefits OtherEmployeeBenefits

Field	Value	IRS element (for citing)
Total	3299936	Total
Program Services	3073932	ProgramServices
Management And General	226004	ManagementAndGeneral

Payroll Taxes PayrollTaxes

Field	Value	IRS element (for citing)
Total	2182818	Total
Program Services	1933322	ProgramServices
Management And General	249496	ManagementAndGeneral

Fees For Services Management FeesForServicesManagement

Field	Value	IRS element (for citing)
Total	3500000	Total
Program Services	3361038	ProgramServices
Management And General	138962	ManagementAndGeneral

Fees For Services Legal FeesForServicesLegal

Field	Value	IRS element (for citing)
Total	81529	Total
Program Services	4265	ProgramServices
Management And General	77264	ManagementAndGeneral

Fees For Services Accounting FeesForServicesAccounting

Field	Value	IRS element (for citing)
Total	17000	Total
Management And General	17000	ManagementAndGeneral

Fees For Services Other FeesForServicesOther

Field	Value	IRS element (for citing)
Total	7662300	Total
Program Services	7261449	ProgramServices
Management And General	400851	ManagementAndGeneral

Advertising Advertising

Field	Value	IRS element (for citing)
Total	358241	Total
Program Services	317294	ProgramServices
Management And General	40947	ManagementAndGeneral

Office Expenses OfficeExpenses

Field	Value	IRS element (for citing)
Total	5743528	Total
Program Services	4805480	ProgramServices
Management And General	938048	ManagementAndGeneral

Occupancy Occupancy

Field	Value	IRS element (for citing)
Total	1593602	Total
Program Services	1345179	ProgramServices
Management And General	248423	ManagementAndGeneral

Travel Travel

Field	Value	IRS element (for citing)
Total	33812	Total
Program Services	27845	ProgramServices
Management And General	5967	ManagementAndGeneral

Conferences Meetings ConferencesMeetings

Field	Value	IRS element (for citing)
Total	121304	Total
Program Services	98718	ProgramServices
Management And General	22586	ManagementAndGeneral

Interest Interest

Field	Value	IRS element (for citing)
Total	-43606	Total
Program Services	-43606	ProgramServices

Depreciation Depletion DepreciationDepletion

Field	Value	IRS element (for citing)
Total	5437259	Total
Program Services	5437259	ProgramServices

Insurance Insurance

Field	Value	IRS element (for citing)
Total	328965	Total
Program Services	321963	ProgramServices
Management And General	7002	ManagementAndGeneral

Other Expenses OtherExpenses (4 entries)

DescriptionDescription	TotalTotal	Management And GeneralManagementAndGeneral	Program ServicesProgramServices
Unrelated Business Inco	13636	13636
Supplies and Equipment	20856292	6436	20849856
Bad Debt Expense	15688309		15688309
Charity Care	14161394		14161394

All Other Expenses AllOtherExpenses

Field	Value	IRS element (for citing)
Total	564056	Total
Program Services	324412	ProgramServices
Management And General	239644	ManagementAndGeneral

Total Functional Expenses TotalFunctionalExpenses

Field	Value	IRS element (for citing)
Total	116776976	Total
Program Services	112140537	ProgramServices
Management And General	4636439	ManagementAndGeneral
Fundraising	0	Fundraising

Cash Non Interest Bearing CashNonInterestBearing

Field	Value	IRS element (for citing)
BOY	12197	BOY
EOY	2452	EOY

Savings And Temp Cash Investments SavingsAndTempCashInvestments

Field	Value	IRS element (for citing)
BOY	604665	BOY
EOY	696223	EOY

Accounts Receivable AccountsReceivable

Field	Value	IRS element (for citing)
BOY	8591557	BOY
EOY	12899585	EOY

Receivables From Officers Etc ReceivablesFromOfficersEtc

Field	Value	IRS element (for citing)
BOY	8846	BOY
EOY	3846	EOY

Other Notes Loans Receivable Net OtherNotesLoansReceivableNet

Field	Value	IRS element (for citing)
BOY	1029243	BOY
EOY	0	EOY

Inventories For Sale Or Use InventoriesForSaleOrUse

Field	Value	IRS element (for citing)
BOY	1497835	BOY
EOY	1784436	EOY

Prepaid Expenses Deferred Charges PrepaidExpensesDeferredCharges

Field	Value	IRS element (for citing)
BOY	830103	BOY
EOY	738196	EOY

Field	Value	IRS element (for citing)
Land Buildings Equipment Basis	88995213	LandBuildingsEquipmentBasis
Land Bldg Equipment Accum Deprec	48271347	LandBldgEquipmentAccumDeprec

Land Buildings Equipment Basis Net LandBuildingsEquipmentBasisNet

Field	Value	IRS element (for citing)
BOY	34685134	BOY
EOY	40723866	EOY

Investments Program Related InvestmentsProgramRelated

Field	Value	IRS element (for citing)
BOY	1946252	BOY
EOY	2956316	EOY

Intangible Assets IntangibleAssets

Field	Value	IRS element (for citing)
BOY	3515000	BOY
EOY	3505000	EOY

Other Assets Total OtherAssetsTotal

Field	Value	IRS element (for citing)
BOY	3276298	BOY
EOY	773135	EOY

Total Assets TotalAssets

Field	Value	IRS element (for citing)
BOY	55997130	BOY
EOY	64083055	EOY

Accounts Payable Accrued Expenses AccountsPayableAccruedExpenses

Field	Value	IRS element (for citing)
BOY	11978355	BOY
EOY	12007841	EOY

Deferred Revenue DeferredRevenue

Field	Value	IRS element (for citing)
BOY	37427	BOY
EOY	1000	EOY

Mort Notes Pybl Secured Invest Prop MortNotesPyblSecuredInvestProp

Field	Value	IRS element (for citing)
BOY	4981641	BOY
EOY	4330858	EOY

Other Liabilities OtherLiabilities

Field	Value	IRS element (for citing)
BOY	1509579	BOY
EOY	2685743	EOY

Total Liabilities TotalLiabilities

Field	Value	IRS element (for citing)
BOY	18507002	BOY
EOY	19025442	EOY

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

Unrestricted Net Assets UnrestrictedNetAssets

Field	Value	IRS element (for citing)
BOY	37490128	BOY
EOY	45057613	EOY

Total Net Assets Fund Balances TotalNetAssetsFundBalances

Field	Value	IRS element (for citing)
BOY	37490128	BOY
EOY	45057613	EOY

Total Liab Net Assets Fund Balances TotalLiabNetAssetsFundBalances

Field	Value	IRS element (for citing)
BOY	55997130	BOY
EOY	64083055	EOY

Field	Value	IRS element (for citing)
Info In Schedule O Part XI	X	InfoInScheduleOPartXI
Reconcilation Revenue Expenses	-2888672	ReconcilationRevenueExpenses
Reconcilation Other Changes	10456157	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)
Hospital170b1 Aiii	X	Hospital170b1Aiii

Schedule B IRS990ScheduleB

Contributor Info ContributorInfo

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

Contributor Name Business ContributorNameBusiness

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

Contributor Address US ContributorAddressUS

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

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

Schedule D IRS990ScheduleD

Land Land

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

Buildings Buildings

Field	Value	IRS element (for citing)
Other Cost Or Other Basis	39806523	OtherCostOrOtherBasis
Depreciation	19716728	Depreciation
Book Value	20089795	BookValue

Equipment Equipment

Field	Value	IRS element (for citing)
Other Cost Or Other Basis	46791269	OtherCostOrOtherBasis
Depreciation	28375103	Depreciation
Book Value	18416166	BookValue

Other Land Buildings OtherLandBuildings

Field	Value	IRS element (for citing)
Other Cost Or Other Basis	1761410	OtherCostOrOtherBasis
Depreciation	179516	Depreciation
Book Value	1581894	BookValue

Field	Value	IRS element (for citing)
Total Of Book Value Land Buildings	40723866	TotalOfBookValueLandBuildings

Other Liabilities OtherLiabilities (3 entries)

DescriptionDescription	AmountAmount
Due to Affiliates, Net	$876,648
Due to Third Party Payors	$1,801,555
Long-term Deferred Compensation	$7,540

Field	Value	IRS element (for citing)
Total Of Amounts	2685743	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	Note G to the consolidated audited financial statements of Covenant Health, the parent company of Morristown-Hamblen Hospital Association, 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 H IRS990ScheduleH

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

Charity Care At Cost CharityCareAtCost

Field	Value	IRS element (for citing)
Total Community Benefit Expense	5785300	TotalCommunityBenefitExpense
Direct Offsetting Revenue	712254	DirectOffsettingRevenue
Net Community Benefit Expense	5073046	NetCommunityBenefitExpense
Percent Of Total Expense	0.05020	PercentOfTotalExpense

Unreimbursed Medicaid UnreimbursedMedicaid

Field	Value	IRS element (for citing)
Total Community Benefit Expense	15271761	TotalCommunityBenefitExpense
Direct Offsetting Revenue	10976555	DirectOffsettingRevenue
Net Community Benefit Expense	4295206	NetCommunityBenefitExpense
Percent Of Total Expense	0.04250	PercentOfTotalExpense

Total Charity Care TotalCharityCare

Field	Value	IRS element (for citing)
Total Community Benefit Expense	21057061	TotalCommunityBenefitExpense
Direct Offsetting Revenue	11688809	DirectOffsettingRevenue
Net Community Benefit Expense	9368252	NetCommunityBenefitExpense
Percent Of Total Expense	0.09270	PercentOfTotalExpense

Community Health Services CommunityHealthServices

Field	Value	IRS element (for citing)
Total Community Benefit Expense	84181	TotalCommunityBenefitExpense
Direct Offsetting Revenue	18698	DirectOffsettingRevenue
Net Community Benefit Expense	65483	NetCommunityBenefitExpense
Percent Of Total Expense	0.00060	PercentOfTotalExpense

Health Professions Education HealthProfessionsEducation

Field	Value	IRS element (for citing)
Total Community Benefit Expense	17689	TotalCommunityBenefitExpense
Direct Offsetting Revenue	14250	DirectOffsettingRevenue
Net Community Benefit Expense	3439	NetCommunityBenefitExpense
Percent Of Total Expense	0.00000	PercentOfTotalExpense

Cash And In Kind Contributions CashAndInKindContributions

Field	Value	IRS element (for citing)
Total Community Benefit Expense	23332	TotalCommunityBenefitExpense
Net Community Benefit Expense	23332	NetCommunityBenefitExpense
Percent Of Total Expense	0.00020	PercentOfTotalExpense

Total Other Benefits TotalOtherBenefits

Field	Value	IRS element (for citing)
Total Community Benefit Expense	125202	TotalCommunityBenefitExpense
Direct Offsetting Revenue	32948	DirectOffsettingRevenue
Net Community Benefit Expense	92254	NetCommunityBenefitExpense
Percent Of Total Expense	0.00080	PercentOfTotalExpense

Total Community Benefits TotalCommunityBenefits

Field	Value	IRS element (for citing)
Total Community Benefit Expense	21182263	TotalCommunityBenefitExpense
Direct Offsetting Revenue	11721757	DirectOffsettingRevenue
Net Community Benefit Expense	9460506	NetCommunityBenefitExpense
Percent Of Total Expense	0.09350	PercentOfTotalExpense

Physical Improvements And Housing PhysicalImprovementsAndHousing

Field	Value	IRS element (for citing)
Total Community Building Expense	4502	TotalCommunityBuildingExpense
Net Community Building Expense	4502	NetCommunityBuildingExpense
Percent Of Total Expense	0.00000	PercentOfTotalExpense

Community Support CommunitySupport

Field	Value	IRS element (for citing)
Total Community Building Expense	12934	TotalCommunityBuildingExpense
Net Community Building Expense	12934	NetCommunityBuildingExpense
Percent Of Total Expense	0.00010	PercentOfTotalExpense

Leadership Development LeadershipDevelopment

Field	Value	IRS element (for citing)
Total Community Building Expense	459	TotalCommunityBuildingExpense
Net Community Building Expense	459	NetCommunityBuildingExpense
Percent Of Total Expense	0.00000	PercentOfTotalExpense

Health Improvement Advocacy HealthImprovementAdvocacy

Field	Value	IRS element (for citing)
Total Community Building Expense	1577	TotalCommunityBuildingExpense
Net Community Building Expense	1577	NetCommunityBuildingExpense
Percent Of Total Expense	0.00000	PercentOfTotalExpense

Total Total

Field	Value	IRS element (for citing)
Total Community Building Expense	19472	TotalCommunityBuildingExpense
Net Community Building Expense	19472	NetCommunityBuildingExpense
Percent Of Total Expense	0.00010	PercentOfTotalExpense

Field	Value	IRS element (for citing)
Bad Debt Expense Reported	0	BadDebtExpenseReported
Bad Debt Expense	$15,688,309	BadDebtExpenseAmount
Amount Attributable To	2855272	AmountAttributableTo
Amount Reimbursed By Medicare	31415241	AmountReimbursedByMedicare
Cost Of Care Reimbursed By Medicare	28931669	CostOfCareReimbursedByMedicare
Medicare Surplus Or Shortfall	2483572	MedicareSurplusOrShortfall

Costing Methodology Used CostingMethodologyUsed

Field	Value	IRS element (for citing)
Other	X	Other

Field	Value	IRS element (for citing)
Written Debt Collection Policy	1	WrittenDebtCollectionPolicy
Provision For Charity Care	1	ProvisionForCharityCare

Form990 Schedule H Part IV Form990ScheduleHPartIV

Name Of Entity NameOfEntity

Field	Value	IRS element (for citing)
Business Name Line1	1 Associates of the Meridian Health Outpatient Surgery Center LLC	BusinessNameLine1

Field	Value	IRS element (for citing)
Description Ent Primary Activity	Healthcare Services	DescriptionEntPrimaryActivity
Organization Profit Or Ownership	0.88000	OrganizationProfitOrOwnership
Physicans Profit Or Ownership	0.12000	PhysicansProfitOrOwnership

Field	Value	IRS element (for citing)
Number Of Hospital Facilities	1	NumberOfHospitalFacilities

Form990 Schedule H Part V Section A Form990ScheduleHPartVSectionA

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

Name Name

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

Address Address

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

Field	Value	IRS element (for citing)
Licensed Hospital	X	LicensedHospital
General Medical And Surgical	X	GeneralMedicalAndSurgical
Er24 Hours	X	Er24Hours

Form990 Schedule H Part V Section B Form990ScheduleHPartVSectionB

Hospital Facility Name HospitalFacilityName

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

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

Form990 Schedule H Part V Section C Form990ScheduleHPartVSectionC

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

Other Facilities OtherFacilities (13 entries)

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

Form990 Schedule H Part VI Form990ScheduleHPartVI (14 entries)

ExplanationExplanation	IdentifierIdentifier
Part I, Line 6a: Covenant Health, the parent company of Morristown-Hamblen Hospital Association, dba Morristown-Hamblen Healthcare System, and other affiliated acute care hospitals, prepares an annual Report to the Community on behalf of the entire system.
Part I, Line 7: Amounts on Lines 7a-7b are from the hospital's cost accounting system, which addresses all patient segments. Other community benefit expenses are at cost from the general ledger.
Part I, Line 7, Column (f): The Bad Debt expense included on Form 990, Part IX, Line 25, Column (A), but subtracted for purposes of calculating the percentage in this column is $ 15688309.
Part II: Morristown-Hamblen Healthcare System ("MHHS") cares for the whole person and recognizes that improved social and economic conditions may lead to the improved health and well-being of the community. The hospital's community building activities and those of its parent organization, Covenant Health, address many of the root causes of health problems, such as poverty and homelessness due to lack of education and jobs.MHHS supports the community building activities of its parent company. An allocation of the Parent's community building expenditures has been made to each member hospital in proportion to the financial contribution of each to the health system. Covenant Health is not a hospital and does not file Schedule H with its Form 990. Contributions made in 2011 were made to or designated for: Children's group homes Temporary housing for the homeless Low-income housing projects Community support organizations Youth mentoring programs After-school programs Early childhood literacy projects Community leadership training Advocacy for health care improvements
Part III, Line 4: Note B to the 2011 Audited Consolidated Financial Statements of the Covenant Health system, of which Morristown-Hamblen Hospital Association is a member, reads: "Patient accounts receivable are reported net of both an estimated allowance for uncollectible accounts and an estimated allowance for contractual adjustments. The contractual allowance represents the difference between established billing rates and estimated reimbursement from Medicare, TennCare and other third-party payment programs. Operations for 2011 and 2010 include an estimated provision for bad debts, included in Supplies and Other in the Consolidated Statements of Operations and Changes in Net Assets. The allowance for uncollectible accounts is estimated based upon the age of the patient accounts receivable, prior experience and any unusual circumstances (such as local, regional or national economic conditions) which affect the collectability of receivables, including management's assumptions about conditions it expects to exist and courses of action it expects to take. Covenant's policy does not require collateral or other security for patient accounts receivable, and Covenant routinely accepts assignment of, or is otherwise entitled to receive, patient benefits payable under health insurance programs, plans or policies."Bad debt expense on Part III, Line 2 is the amount recorded in the organization's financial statements.In 2011, the hospital reviewed all self-pay accounts receivable to identify patients who might have qualified for financial assistance. As of year end, the hospital could not make a final determination as to their qualification for financial assistance due to all information not yet being received but felt strongly that the patient was in need of some form of assistance. Notes in the patient record were examined to see if a charity care application had been sent to the patient or guarantor or if the account was being analyzed by a business office employee for approval for charity care. The percentage of patient accounts being analyzed as a percent of total self-pay accounts receivable has been applied to the current year total bad debt expense on Line 2 to arrive at the amount reported on Line 3.
Part III, Line 8: Costing Methodology: MHHS used a combination of sources in calculating Medicare allowable costs on Part III, Line 6 including its cost accounting system, general ledger accounting system, and facility-specific analyses and calculations.
Part III, Line 9b: Self-pay patients automatically receive a minimum 44% discount on charges. Federal poverty guidelines are utilized in the determination of charity care eligibility. Patients who are unable to pay and have exhausted all sources of payment assistance may qualify for charity care. A sliding scale is used for extending charity care utilizing the income levels reported under the federal poverty guidelines. Patients/guarantors with income that falls below 200% of the federal poverty guidelines receive 100% charity care. Patients/guarantors with income of 201-300% of the federal poverty guidelines, receive 70% charity care. For catastrophic illness, exceptions to income and asset limitations may be made on a case-by-case basis. The amount considered for charity will be based upon the evaluation of the patient's/guarantor's ability to pay.Patients/ guarantors who qualify for partial financial assistance are responsible for paying any balance remaining after the charity adjustment and third party payments. Once an account has been processed through routine collection channels internally, it may be assigned to an attorney/agency for collection. The patient/ guarantor will be billed for all collection costs as may be applicable. Credit reports will be filed no earlier than 30 days following the assignment on all nonpaid balances.
Part V, Section B, Line 13g: Please see the explanation to Part VI, Line 3.	Morristown-Hamblen Healthcare System
Part V, Section B, Line 19d: Please see the explanation to Part III, Line 9b.	Morristown-Hamblen Healthcare System
Part VI, Line 2: The hospital actively addresses a variety of identified needs in the community through its relationships with community based groups including the local health council, public health department, school systems, health coalitions, inter-agency council, and health-related not-for-profit organizations. Additionally, the East Tennessee 2-1-1 Information and Referral system is able to provide a profile of the health and social services most requested by the citizens of each county. This information serves as an ongoing assessment of basic health and human service needs and of what resources are lacking in each community.
Part VI, Line 3: Morristown-Hamblen Healthcare System posts signs in its registration areas stating: FINANCIAL ASSISTANCE If you cannot pay your medical expenses, then you may qualify for free or reduced care through the hospital's financial assistance program. For more information, please contact a financial counselor. Covenant Health is committed to providing quality health services in a caring environment. It is the expressed philosophy of Covenant Health, and its member hospitals, that no one should be denied necessary medical care because of the inability to pay. In conjunction with this philosophy, staffs of Morristown-Hamblen Healthcare System are available to assist you with your financial needs. If you are an uninsured person with no public or private source of payment for medical services, Morristown-Hamblen Healthcare System, in compliance with Tennessee Code Annotated, Title 47, Chapter 18 and Title 68, will provide at a reduced rate, medically indicated services. A financial counselor is available to assist you with these matters Monday through Friday between the hours of 8 a.m. - 4:30 p.m.To communicate the hospital's financial policy to the patient, the hospital distributes a Patient Handbook discussing the availability of financial assistance to every patient that is registered. Financial counselors make daily visits to patients identified as "inpatient self-pay" to discuss financial arrangements and provide applications for financial assistance, if requested. The hospital's website has a "Patients and Visitors" menu where patients can go to view information about payment policies, accepted insurance, and the hospital financial assistance (charity care) program. The website gives two phone numbers that patients can use to contact a financial counselor to discuss their individual financial alternatives. The hospital's charity care policy and financial assistance contact information is posted in the Admissions areas, Emergency areas, and other areas of the hospital's facilities in which eligible patients may be present. All staff with patient contact are knowledgeable about the charity care policy (admitting and billing clerks, nursing and medical staffs, social workers, chaplains, patient advocates, etc.).
Part VI, Line 4: Hamblen County, Tennessee, is the primary market for Morristown-Hamblen Healthcare System, a non-profit hospital affiliated with Covenant Health. Hamblen County is a rural community with close proximity to the metropolitan Knoxville area. Morristown-Hamblen Hospital shares its market with the region's only for-profit hospital, Lakeway Hospital. According to internal hospital data for 2011, about 55% of the inpatient discharges were Hamblen County residents.According to 2008 data of the U.S. Census Bureau, the population of Hamblen County numbers approximately 63,033 and is evenly split between men and women. The largest population segment is the 18 and younger age group, accounting for 24% of the population. The 65 and older group accounts for 15% of the population. Hamblen County has one of the largest Hispanic populations in East Tennessee at 12.5%. The median income of Hamblen County is $41,324 per household with 17% of the population living below the poverty level. Unemployment is at 12%.According to a recently released study by the Robert Wood Johnson Foundation/ University of Wisconsin Population Health Institute, Hamblen County residents have the following health indicators that are above the national benchmarks: Hamblen - TN - National Adult Smoking: 28% - 24% - 15% Adult Obesity: 31% - 31% - 25% Excessive Drinking: 9% - 9% - 8% Teen Birthrate: 80 - 55 - 22 of every 1,000 teenage girls Poor or Fair Health: 25% - 19% - 10%
Part VI, Line 5: We serve the community by improving the quality of life through better health. Morristown-Hamblen Healthcare System ("MHHS"), in conjunction with its parent company, Covenant Health, is committed to providing quality health care services in a caring environment that fulfills the needs of our patients, physicians, employers, employees, and community. The hospital operates an emergency room open to all persons, without regard to the ability to pay. The hospital uses any surplus funds to improve the quality of patient care, expand or improve its facilities, and advance its medical training and education programs. Covenant Health's Board of Directors, which is comprised of independent community leaders with diverse and professional backgrounds, serves as MHHS's Board. The hospital maintains an open medical staff, with membership and privileges available to all qualified physicians and healthcare professionals. Administration of the hospital is active with many groups in developing a community needs assessment and ensuring our services are in line with the health needs of the communities we serve. In these and other respects, the hospital is organized and operated in a manner that promotes the health of the community and therefore fulfills charitable purposes within the meaning of Internal Revenue Code Section 501(c)(3).MHHS provides numerous education and outreach efforts to the community, ranging from health screenings and fairs to presentations to area groups. The various programs and services are provided complimentary or at a minimum charge. These are offered throughout the year based upon activities and services which the hospital believes will serve a bona fide community need.In addition to health education programs and activities, the hospital participates in other community outreach and support programs, including various community activities to benefit civic organizations, local schools, and members of the community. The hospital values the relationships maintained with the community organizations and provides conference rooms for a variety of meetings, seminars, and educational programming at no charge to outside groups. Additionally, the hospital provides other in-kind services and staff support to many area support groups.
Part VI, Line 6: Morristown-Hamblen Healthcare System (MHHS), as a member of the Covenant Health system, benefits from the collaboration among all affiliated organizations to promote quality improvement, patient safety and efficient delivery of care for the communities served. As a system, Covenant assures that business processes are in place in each facility to measure and report quality, to increase the role of compliance, and to integrate risk management, utilization review, peer review, mandatory reporting and quality improvement into one cohesive function. In this way, the system is able to use analytic tools to help identify any systemic inability to satisfy the various requirements on the part of the facilities. MHHS's patients benefit from the availability of and ease of access to Covenant Health affiliated entities for services not provided by the hospital itself. Transfer or referral to such services is expedited and coordinated to help create a seamless continuum of care. A full range of community mental health and psychiatric hospital services are available within the system that help support the hospital's emergency room as well as provide an accessible and efficient pathway for those patients who require such services post discharge. Other specialized services such as inpatient rehabilitation, home health and hospice services are provided by affiliated entities. The Covenant Health system also enhances the patient's access to care through the provision of outpatient in a variety of settings located throughout the service area. These include a diabetes center, wound care center, bariatric surgery center, pulmonary rehabilitation programs and ambulatory infusion centers.Through this combination of resources and the collective development, implementation and monitoring of clinical protocols and other improvement initiatives, the affiliated entities of Covenant Health are able to deliver higher quality care in a more efficient manner than could be achieved working independently.

Schedule I IRS990ScheduleI

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

Recipient Table RecipientTable

Recipient Name Business RecipientNameBusiness

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

Address US AddressUS

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

Field	Value	IRS element (for citing)
EIN Of Recipient	621697090	EINOfRecipient
IRC Section	501(c)(3)	IRCSection
Amount Of Cash Grant	170385	AmountOfCashGrant
Purpose Of Grant	Subsidy for rent and other operating expenses, fundraiser sponsorship, memorial donations	PurposeOfGrant

Field	Value	IRS element (for citing)
Total Nbr Of501 C3 And Govt Grants	1	TotalNbrOf501C3AndGovtGrants
Total Nbr Of Other Organizations	0	TotalNbrOfOtherOrganizations

Form990 Schedule I Part IV Form990ScheduleIPartIV

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

Schedule J IRS990ScheduleJ

Field	Value	IRS element (for citing)
Idemnification Gross Up Payments	X	IdemnificationGrossUpPayments
Written Policy Re T And E Expenses	1	WrittenPolicyReTAndEExpenses
Substantiation Required	1	SubstantiationRequired
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 (10 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
0	924445	0	326250	0	1241947	0	9800	0	15907	0	2518349	0	759468
John T Geppi
0	393584	0	237900	0	73983	0	9800	0	19248	0	734515	0	0
Richard L Clark
0	235546	0	6778	0	98318	0	9800	0	19931	0	370373	0	0
Maxwell Owens
150471	0	4188	0	35120	0	13155	0	7643	0	210577	0	0	0
Dedra C Whitaker
158985	0	4157	0	10595	0	5113	0	18518	0	197368	0	0	0
Peter Clark MD
330851	0	366978	0	3612	0	28012	0	19008	0	748461	0	0	0
Penny Knight MD
318961	0	0	0	17340	0	17550	0	13651	0	367502	0	0	0
Billy Black MD
295889	0	0	0	840	0	16382	0	18069	0	331180	0	0	0
Frank Ellis MD
222809	0	42964	0	1452	0	6940	0	20605	0	294770	0	0	0
Jason Cox MD
254845	0	6800	0	518	0	0	0	16793	0	278956	0	0	0

Form990 Schedule J Part III Form990ScheduleJPartIII (3 entries)

Return ReferenceReturnReference	ExplanationExplanation	IdentifierIdentifier
Part I, Line 1a	Part I, Line 1a: Tax gross-up payments are provided to certain executives and managers. These are treated as taxable compensation to the recipient.
Part I, Line 4b	Part II, Anthony L. Spezia (compensated by Covenant Health, parent organization) - Column (B)(iii): Other reportable compensation. $1,010,702 of the total amount reported as "other reportable compensation" under Column (B)(iii) is the total amount accrued during years 2007, 2008, 2009, 2010 and 2011 under a 457(f) deferred compensation plan established for Mr. Spezia in year 2000. Amounts accrued in years 2007 through 2010 have been previously reported and included in compensation on Form 990 for the applicable year. Although all deferred amounts became fully vested and taxable in 2011, only 2007 accruals were distributed to Mr. Spezia in 2011. Accruals for 2008-2011 are distributable in future years. Consequently, the $1,103, 451 is comprised of the following: $586,516 accrued and previously reported as income on Form 990 for years 2008, 2009, and 2010; which is fully vested but has not been distributed $235,299 distributed in 2011, of which $172,952 was previously reported as income on Form 990 for year 2007, the remainder representing earnings on the deferred amount distributed $188,887 accrued in 2011, which is fully vested but has not been distributed
Part III	Part I, Line 3: Covenant Health, the parent company of Morristown-Hamblen Hospital Association, used one or more of the methods listed in establishing the compensation of Anthony L. Spezia. Please see the statement to Core Part VI, Section B, Line 15a on Schedule O.	Supplemental Information

Schedule L IRS990ScheduleL

Loan Table LoanTable

Field	Value	IRS element (for citing)
Name Person	Billy Black MD	NamePerson
Purpose Of Loan	Employment Contract Advance	PurposeOfLoan
Loan From Organization	X	LoanFromOrganization
Original Principal	$15,000	OriginalPrincipalAmount
Balance Due	3846	BalanceDue
Default	0	Default
Approved By Board	1	ApprovedByBoard
Written Agreement	1	WrittenAgreement

Field	Value	IRS element (for citing)
Total Balance Due	3846	TotalBalanceDue

Form990 Schedule L Part IV Form990ScheduleLPartIV

Name Of Interested Person NameOfInterestedPerson

Name Business NameBusiness

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

Field	Value	IRS element (for citing)
Relationship	Morristown-Hamblen Hospital Association has an 88% ownership interest.	Relationship
Amount Of Transaction	722662	AmountOfTransaction
Description Of Transaction	SECOM rents space from and pays a management fee to Morristown-Hamblen Hospital Association (MHHA). Dedra Whitaker, MHHA VP and Chief Nursing Officer, served during 2011 and continues to serve as a manager on the Board of SECOM. Richard Clark, former MHHA President and CAO, also served as a manager on the Board of SECOM during 2011.	DescriptionOfTransaction
Sharing Of Revenues	0	SharingOfRevenues

Form990 Schedule L Part V Form990ScheduleLPartV

Field	Value	IRS element (for citing)
Identifier	Schedule L, Part II - Loan to Billy Black, M.D.:	Identifier
Explanation	Dr. Black's employment contract and the advance on the contract were approved by the Board of Directors of Morristown-Hamblen Hospital Association prior to the hospital becoming a member of the Covenant Health system.	Explanation

Schedule O IRS990ScheduleO

General Explanation GeneralExplanation (11 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	Covenant Health is a large, integrated health system which files twelve Forms 990. Morristown-Hamblen Hospital Association is one of those twelve entities. Annually, at the September Finance Committee meeting, one of the twelve 990s is selected (a different entity each year) for distribution to each member of the Committee. Management then reviews in detail each of the Form 990 schedules and describes variances between entities, if any. The remaining eleven forms are made available for review by any Committee member. The same presentation is made to the Covenant Health Board of Directors at the October meeting. All twelve Forms 990 are then made available to all Board members for their review throughout the month of October.
	Form 990, Part VI, Section B, line 12c	Board members, officers and employees are required to adhere to rules and policies regarding conflicts of interest. Covenant Health, the parent company of the organization, distributes a Board-approved employee handbook to all employees. The handbook covers among other subjects, conflicts of interest. Additionally, managers are required to complete and sign an annual management certification that addresses conflicts of interest. Board members' conflicts of interests are dealt with in the corporate bylaws, and Board members are required to complete and sign a conflict of interest questionnaire on an annual basis. The Integrity Compliance Office maintains records that contain conflict of interest information obtained from Board members, officers and employees. These records are available to be queried prior to engaging in business transactions. The Integrity Compliance Officer initially reviews all conflict of interest data. Based on this information, the officer determines what conflicts of interest exist at that point in time. Between times when surveys are collected Board members are expected to disclose any new conflicts that have arisen that affect pending Board decisions. As well, managers and other employees are expected to report conflicts to the Integrity Compliance Officer as they arise. Depending on the nature of the conflict and the circumstances surrounding the conflict and transaction, the Integrity Compliance Officer, Senior Leadership, or the Board of Directors may review the conflict of interest. Where appropriate these bodies may also consult legal counsel. Restrictions imposed on persons with a conflict of interest are determined on a case by case basis. For Covenant Health employees, the Integrity Compliance Officer in conjunction with Executive Leadership determines how to appropriately handle the conflict. In any conflict involving a Board member, such member is expected to excuse himself or herself from voting on matters that give rise to the conflict.
	Form 990, Part VI, Section B, line 15	Form 990, Part VI, Section B, Line 15a: Overall compensation policies for Morristown-Hamblen Hospital Association, Covenant Health (Parent Company), and affiliates are set by the Compensation Committee of the Board of Directors, which is comprised of independent members of the Board. The Committee is guided in its decision-making process by an independent, nationally-recognized executive compensation consultant experienced in advising nonprofit hospital boards. Compensation policies for Anthony Spezia and John Geppi are reported on the 2011 Form 990 of Covenant Health, EIN 62-1646734, parent company of Morristown-Hamblen Hospital Association. Form 990, Part VI, Section B, Line 15b: Base salary and annual bonus opportunities for the President/CAO are set by the Covenant Health CEO or Executive Vice President-Human Resources, subject to approval of the Compensation Committee of the Covenant Health Board of Directors ("the Committee"), after review by and discussion with the executive compensation consultant ("the consultant") to insure that total compensation is reasonable and within a fair market value range. Salary ranges are based upon the recommendations of the consultant made after comparison with similar jobs in similar size health systems across the nation. Bonuses are recommended by the CEO and approved by the Committee conditioned upon receipt of a written opinion from the consultant that total compensation for the President/CAO is reasonable and consistent with fair market value. Base salaries are initially targeted at midpoint and vary according to the individual's experience, market conditions and competition. Annual bonuses are designed to award 0 - 35% of base salary based upon system performance and accomplishment of certain targets established by the CEO. Base salaries and annual bonus opportunities for Dedra Whitaker, VP-CNO, and the position of VP-Financial Services, are based on established targets 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 comparison with similar jobs in similar size health systems across the nation. Base salaries and bonuses are approved by Executive Leadership predicated upon performance, and are reasonable and consistent with fair market value. Base salaries are initially targeted at midpoint and vary according to the individual's experience, market conditions and competition. Annual bonuses are designed to award 0 - 20% of base salary based upon system performance and accomplishment of certain targets established by Executive Leadership.
	Form 990, Part VI, Section C, line 19	Form 990, Part VI, Section C, Line 19: Per its tax-exempt bond provisions, the parent company, Covenant Health, is required to file quarterly and annual consolidated and obligated group financial statements in addition to other documentation, with various bond insurers and other agencies, including the Electronic Municipal Market Access, EMMA, website. Any member of such a repository has access to these financial statements. In addition, Morristown-Hamblen Hospital Association files a Joint Annual Report containing financial information with the Tennessee Department of Health.
Contact Addresses for Officers, Directors, Etc.:	Form 990, Part VI, Section A, Line 9 and Part VII	Anthony L. Spezia and Jeremy Biggs Covenant Health 100 Ft Sanders West Blvd. Knoxville, TN 37922 John T. Geppi, Larry Mauldin, and all Directors Covenant Health 1420 Centerpoint Blvd., Bldg. C Knoxville, TN 37932 Richard Clark 3102 Hampton Circle Morristown, TN 37814 All other persons listed in Part VII, Section A may be contacted at the hospital's address, which is: Morristown-Hamblen Healthcare System 908 W. Fourth North St. Morristown, TN 37814
	Form 990, Part VII, Section A, Column B:	The President/CEO, EVP/CFO, and Board of Directors serve Covenant Health, EIN 62-1646734, parent company of an integrated health care delivery system, of which Morristown-Hamblen Hospital Association is a member, as a whole. The hours these individuals devoted to the system in 2011 are reported on Covenant Health's Form 990, Part VII.
Changes in Net Assets or Fund Balances:	Form 990, Part XI, line 5:	Income from partnership Schedule K-1: -51,803. Capital contribution 10,507,960. Total to Form 990, Part XI, Line 5: 10,456,157.
	Form 990, Part XII, Line 2c:	The Finance Committee of the Board of Directors assumes responsibility for oversight of the audit of the consolidated financial statements and selection of an independent accountant.

Schedule R IRS990ScheduleR

Form990 Schedule R Part II Form990ScheduleRPartII (15 entries)

Address Line1AddressUS/AddressLine1	CityAddressUS/City	StateAddressUS/State	ZIP CodeAddressUS/ZIPCode	EINEIN	Primary ActivitiesPrimaryActivities	Legal Domicile StateLegalDomicileState	Exempt Code SectionExemptCodeSection	Public Charity StatusPublicCharityStatus	Direct Controlling Entity NADirectControllingEntityNA	Controlled OrgControlledOrg	Business Name Line1DirectControllingEntityName/BusinessNameLine1
Covenant Health
1420 Centerpoint Blvd Bldg C	Knoxville	TN	37932	621646734	Supporting organization	TN	501(c)(3)	Line 11b, II	N/A	0
Fort Sanders Regional Medical Center
1901 W Clinch Ave	Knoxville	TN	37916	620528340	Acute care hospital	TN	501(c)(3)	Line 3		0	Covenant Health
Parkwest Medical Center
9352 Park West Boulevard	Knoxville	TN	37923	581897274	Acute care hospital & behavioral services	TN	501(c)(3)	Line 3		0	Covenant Health
Methodist Medical Center
990 Oak Ridge Turnpike	Oak Ridge	TN	37830	620636239	Acute care hospital	TN	501(c)(3)	Line 3		0	Covenant Health
LeConte Medical Center
742 Middle Creek Road	Sevierville	TN	37862	621114867	Acute care hospital	TN	501(c)(3)	Line 3		0	Covenant Health
Roane County Medical Center dba Roane Medical Center
412 Devonia Street	Harriman	TN	37748	680673354	Acute care hospital	TN	501(c)(3)	Line 3		0	Covenant Health
Fort Loudoun Medical Center
550 Fort Loudoun Medical Center Dr	Lenoir City	TN	37772	621373691	Acute care hospital	TN	501(c)(3)	Line 3		0	Covenant Health
Thompson Cancer Survival Center
1915 White Avenue	Knoxville	TN	37916	621250943	Cancer treatment facility	TN	501(c)(3)	Line 3		0	Covenant Health
Thompson Oncology Group
1915 White Avenue	Knoxville	TN	37916	621619239	Oncology services	TN	501(c)(3)	Line 3		0	Covenant Health
Covenant Homecare
3001 Lake Brook Blvd Suite 101	Knoxville	TN	37909	621623114	Home health services	TN	501(c)(3)	Line 9		0	Covenant Health
Fort Sanders Perinatal Center
501 19th St Suite 304	Knoxville	TN	37916	043760551	High risk obstetrical services	TN	501(c)(3)	Line 3		0	Covenant Health
Fort Sanders Foundation
280 Fort Sanders West Blvd Ste 100	Knoxville	TN	37922	621748601	Fundraising and patient outreach	TN	501(c)(3)	Line 11a, I		0	Covenant Health
Thompson Cancer Survival Center Foundation
1915 White Avenue	Knoxville	TN	37916	582130450	Fundraising and patient outreach	TN	501(c)(3)	Line 11a, I		0	Thompson Cancer Survival Center
Morristown-Hamblen Hospital Foundation
908 W Fourth North St	Morristown	TN	37814	621697090	Fundraising and patient outreach	TN	501(c)(3)	Line 11a, I		1	Morristown-Hamblen Hospital Association
Morristown Regional Cancer Center LLC
908 W Fourth North St	Morristown	TN	37814	200916364	Cancer treatment facility	TN	501(c)(3)	Line 3		0	Morristown-Hamblen Hospital Association

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	Predominant Income TypePredominantIncomeType	Share Of Total IncomeShareOfTotalIncome	Share Of EOY AssetsShareOfEOYAssets	Disproportionate AllocationsDisproportionateAllocations	General Or Managing PartnerGeneralOrManagingPartner	Percentage OwnershipPercentageOwnership
Assoc of the Meridian Health Outpatient Surgery Ctr LLC
908 W 4th North St	Morristown	TN	37814	861167487	Outpatient surgery center	TN	N/A	Related	51803	2001810	0	1	0.88000
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
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	Orthopaedic surgery	TN	N/A

Form990 Schedule R Part IV Form990ScheduleRPartIV (5 entries)

Address Line1AddressUS/AddressLine1	CityAddressUS/City	StateAddressUS/State	ZIP CodeAddressUS/ZIPCode	EINEIN	Primary ActivityPrimaryActivity	Legal Domicile StateLegalDomicileState	Direct Controlling Entity NADirectControllingEntityNA	Type Of EntityTypeOfEntity	Percentage OwnershipPercentageOwnership
Fortress Corporation
280 Fort Sanders West Blvd Suite 21	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 Fort Sanders West Blvd Suite 20	Knoxville	TN	37922	621282917	Physician practice management	TN	N/A	C
Knoxville Heart Group
1819 Clinch Ave Suite 108	Knoxville	TN	37916	271528941	Cardiology medical practice	TN	N/A	C
Morristown-Hamblen Health Services Inc
908 W Fourth North St	Morristown	TN	37814	621588521	Inactive - dissolved 2/5/2011	TN	N/A	C	1.00000

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	0	GiftGrantOrCapContrFrOtherOrg
Loans Or Guarantees To Other Org	0	LoansOrGuaranteesToOtherOrg
Loans Or Guarantees From Other Org	0	LoansOrGuaranteesFromOtherOrg
Sale Of Assets To Other Org	0	SaleOfAssetsToOtherOrg
Purchase Of Assets From Other Org	0	PurchaseOfAssetsFromOtherOrg
Exchange Of Assets	1	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	0	PerformOfServicesByOtherOrgs
Sharing Of Facilities	1	SharingOfFacilities
Sharing Of Paid Employees	1	SharingOfPaidEmployees
Reimbursement Paid To Other Org	0	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 (13 entries)

Transaction TypeTransactionType	Amount InvolvedAmountInvolved	Method Of Amt DeterminationMethodOfAmtDetermination
Morristown-Hamblen Hospital Foundation
B	170385	Cash
Morristown-Hamblen Hospital Foundation
N	108896	Actual wages + benefits
Morristown Regional Cancer Center LLC
I	154071	Actual
Morristown Regional Cancer Center LLC
K	117887	Actual
Morristown Regional Cancer Center LLC
N	946612	Actual wages + benefits
Morristown Regional Cancer Center LLC
P	662283	Cost
Morristown Regional Cancer Center LLC
R	618264	Book income
Assoc of the Meridian Health OP Surgery Center LLC
A	439700	Actual
Assoc of the Meridian Health OP Surgery Center LLC
B	1022000	Actual
Assoc of the Meridian Health OP Surgery Center LLC
K	282962	Actual
Assoc of the Meridian Health OP Surgery Center LLC
N	1308264	Actual wages + benefits
Assoc of the Meridian Health OP Surgery Center LLC
P	726241	Cost
Assoc of the Meridian Health OP Surgery Center LLC
Q	275685	Actual