TY 2010 Form 990

(A) Name and Title	(C) Position (check all that apply)	(E) Reportable compensation from related organizations (W- 2/1099-MISC)
(1) Anthony L Spezia President & CEO	X	X	1,406,336	246,381
(2) Dr Richard Brinner Director	X		922	0
(3) Harry M Call Director	X		1,532	0
(4) Dr Mitchell Dickson Director	X		1,771	0
(5) Pamela P Fansler Director	X		767	0
(6) Homer Fisher Director	X		436	0
(7) James Fitzsimmons Director	X		1,876	0
(8) Dr William Hall Director	X		1,274	0
(9) Wayne Heatherly Director	X		1,697	0
(10) Jim Johnson Jr Director	X		1,114	0
(11) Karla Lane Director	X		950	0
(12) Dr Randolph Lowry Director	X		1,665	0
(13) Larry Mauldin Director	X		1,226	0
(14) George Miller Director	X		647	0
(15) Alvin Nance Director	X		673	0
(16) Linda N Ogle Director	X		0	0
(17) Francis Olmstead Jr Chairman	X		2,212	0

(A) Name and Title	(B) Average hours per week (describe hours for related organizations in Schedule O)	(C) Position (check all that apply)	(E) Reportable compensation from related organizations (W- 2/1099-MISC)	(F) Estimated amount of other compensation from the organization and related organizations
(18) Mitchell Steenrod Director	0.00	X				0	1,081	0
(19) Joseph E Sutter Director	0.00	X				0	1,829	0
(20) Joe Ben Turner Director	0.00	X				0	819	0
(21) David C Verble Director	0.00	X				0	1,434	0
(22) John T Geppi EVP/CFO	0.00		X			0	675,119	41,480
(23) Keith Altshuler Pres. & CAO - FSRMC	44.00		X			0	374,679	50,893
(24) David McReynolds VP-Financial Services	36.50		X			178,482	0	35,259
(25) Jennifer L Hanson VP-Chief Nursing Officer	45.00			X		0	220,542	13,765
(26) Mary E Dillon Medical Director	40.00				X	162,472	0	4,619
(27) Chad J Brown VP-Operations	45.00				X	203,430	0	12,962
(28) Christopher Norris Pharmacy Director	40.00				X	135,832	0	24,198
(29) Nancy Granger Pharmacy Manager	40.00				X	122,610	0	25,133
(30) Marianne Oliveira Sr. Instructor - Nursing School	40.00				X	134,789	0	20,988

(A) Name and business address	(B) Description of services	(C) Compensation
GE Healthcare PO Box 402076 Atlanta,GA303842076	Service Contracts/ Equipment Maintenance	2,751,870
Medic Regional Blood Center 1601 Ailor Avenue Knoxville,TN37921	Blood Processing	1,780,688
Angelica Textile Services Inc PO Box 535122 Atlanta,GA30353	Linen Service	1,322,878
Covenant Medical Management 280 Fort Sanders West Blvd Ste 205 Knoxville,TN37922	Physician Services	1,080,647
Covenant Health Properties 280 Fort Sanders West Blvd Ste 214 Knoxville,TN37922	Property Management	1,042,319
2 Total number of independent contractors (including but not limited to those listed above) who received more than $100,000 in compensation from the organization 34

Do not include amounts reported on lines 6b, 7b, 8b, 9b, and 10b of Part VIII.	(A) Total expenses	(B) Program service expenses	(C) Management and general expenses	(D) Fundraising expenses
1	Grants and other assistance to governments and organizations in the U.S. See Part IV, line 21	101,246	101,246
2	Grants and other assistance to individuals in the U.S. See Part IV, line 22	25,823	25,823
3	Grants and other assistance to governments, organizations, and individuals outside the U.S. See Part IV, lines 15 and 16
4	Benefits paid to or for members
5	Compensation of current officers, directors, trustees, and key employees ....	213,741		213,741
6	Compensation not included above, to disqualified persons (as defined under section 4958(f)(1)) and persons described in section 4958(c)(3)(B) ....
7	Other salaries and wages	78,268,799	76,739,538	1,529,261
8	Pension plan contributions (include section 401(k) and section 403(b) employer contributions) ....	2,444,302	2,378,718	65,584
9	Other employee benefits .......	9,837,364	9,557,167	280,197
10	Payroll taxes ...........	5,657,369	5,481,048	176,321
11	Fees for services (non-employees):
a	Management ......	18,560,011	18,178,229	381,782
b	Legal .........	103,062	5,481	97,581
c	Accounting ...........	33,812		33,812
d	Lobbying ...........
e	Professional fundraising. See Part IV, line 17..
f	Investment management fees ......
g	Other ..........	18,587,869	17,767,194	820,675
12	Advertising and promotion ....	462,651	126,736	335,915
13	Office expenses .......	3,127,384	2,623,517	503,867
14	Information technology ......
15	Royalties ..
16	Occupancy ...........	5,267,988	4,287,185	980,803
17	Travel ............	90,126	85,929	4,197
18	Payments of travel or entertainment expenses for any federal, state, or local public officials ......
19	Conferences, conventions, and meetings ....	288,536	161,696	126,840
20	Interest ...........	523,085	523,085
21	Payments to affiliates .......
22	Depreciation, depletion, and amortization .....	13,906,010	13,906,010
23	Insurance ..............	956,764	933,454	23,310
24	Other expenses. Itemize expenses not covered above. (Expenses grouped together and labeled miscellaneous may not exceed 5% of total expenses shown on line 25 below.)
a	Unrelated Business Inco	72,637		72,637
b	Supplies and Equipment	88,715,140	88,440,485	274,655
c	Charity Care	30,524,627	30,524,627
d	Bad Debts	14,975,758	14,975,758
e	Food/Dietary	2,866,775	2,862,672	4,103
f	All other expenses	2,658,907	2,416,697	242,210
25	Total functional expenses. Add lines 1 through 24f	298,269,786	292,102,295	6,167,491	0
26	Joint costs. Check here if following SOP 98-2 (ASC 958-720). Complete this line only if the organization reported in column (B) joint costs from a combined educational campaign and fundraising solicitation

Part X Balance Sheet
	1	Cashnon-interest-bearing ..........	2,669	1	3,839
2	Savings and temporary cash investments .......	-5,016,772	2	-2,010,391
3	Pledges and grants receivable, net .........		3
4	Accounts receivable, net .........	27,262,151	4	26,319,193
5	Receivables from current and former officers, directors, trustees, key employees, and highest compensated employees. Complete Part II of
	Schedule L ..........		5
6	Receivables from other disqualified persons (as defined under section 4958(f)(1)) and persons described in section 4958(c)(3)(B). Complete Part II of
	Schedule L ..........		6
7	Notes and loans receivable, net .............	44,555	7	44,555
8	Inventories for sale or use ..............	6,504,835	8	6,695,999
9	Prepaid expenses and deferred charges ............	647,482	9	534,865
10a	Land, buildings, and equipment: cost or other basis. Complete Part VI of Schedule D	10a	348,335,730
b	Less: accumulated depreciation. .....	10b	226,408,732	104,370,837	10c	121,926,998
11	Investments—publicly traded securities ..........		11
12	Investments—other securities. See Part IV, line 11 ......		12
13	Investments—program-related. See Part IV, line 11 ..		13
14	Intangible assets .........		14
15	Other assets. See Part IV, line 11 ...........	3,241,669	15	3,341,620
16	Total assets. Add lines 1 through 15 (must equal line 34)...	137,057,426	16	156,856,678
	17	Accounts payable and accrued expenses .	20,375,832	17	22,491,125
18	Grants payable ..........		18
19	Deferred revenue ..........	585,312	19	563,664
20	Tax-exempt bond liabilities ..........	10,577,991	20	9,044,795
21	Escrow or custodial account liability. Complete Part IV of Schedule D..		21
22	Payables to current and former officers, directors, trustees, key employees, highest compensated employees, and disqualified
	persons. Complete Part II of Schedule L..........		22
23	Secured mortgages and notes payable to unrelated third parties ..	308,822	23	140,137
24	Unsecured notes and loans payable to unrelated third parties ....		24
25	Other liabilities. Complete Part X of Schedule D.....	7,823,981	25	12,424,326
26	Total liabilities. Add lines 17 through 25.....	39,671,938	26	44,664,047
		Organizations that follow SFAS 117, check here and complete lines 27 through 29, and lines 33 and 34.
27	Unrestricted net assets .....	97,385,488	27	112,192,631
28	Temporarily restricted net assets .....		28
29	Permanently restricted net assets .....		29
	Organizations that do not follow SFAS 117, check here and complete lines 30 through 34.
30	Capital stock or trust principal, or current funds .....		30
31	Paid-in or capital surplus, or land, building or equipment fund .....		31
32	Retained earnings, endowment, accumulated income, or other funds		32
33	Total net assets or fund balances .....	97,385,488	33	112,192,631
34	Total liabilities and net assets/fund balances .....	137,057,426	34	156,856,678

- TIN:

SCHEDULE A
(Form 990 or 990EZ)

Department of the Treasury
Internal Revenue Service

Public Charity Status and Public Support

Complete if the organization is a section 501(c)(3) organization or a section
4947(a)(1) nonexempt charitable trust.

Attach to Form 990 or Form 990-EZ. right arrow

See separate instructions.

OMB No. 1545-0047

2010

Open to Public
Inspection

Name of the organization

Fort Sanders Regional Medical Center

Employer identification number

62-0528340

Part I

Reason for Public Charity Status (All organizations must complete this part.) See instructions

The organization is not a private foundation because it is: (For lines 1 through 11, check only one box.)

A church, convention of churches, or association of churches. section 170(b)(1)(A)(i).

A school described in section 170(b)(1)(A)(ii). (Attach Schedule E.)

A hospital or a cooperative hospital service organization described in section 170(b)(1)(A)(iii).

A medical research organization operated in conjunction with a hospital described in section 170(b)(1)(A)(iii). Enter the hospital's name, city, and state:

An organization operated for the benefit of a college or university owned or operated by a governmental unit described in

section 170(b)(1)(A)(iv). (Complete Part II.)

A federal, state, or local government or governmental unit described in section 170(b)(1)(A)(v).

An organization that normally receives a substantial part of its support from a governmental unit or from the general public described in

section 170(b)(1)(A)(vi). (Complete Part II.)

A community trust described in section 170(b)(1)(A)(vi). (Complete Part II.)

An organization that normally receives: (1) more than 331/3% of its support from contributions, membership fees, and gross

receipts from activities related to its exempt functions—subject to certain exceptions, and (2) no more than 331/3% of

its support from gross investment income and unrelated business taxable income (less section 511 tax) from businesses

acquired by the organization after June 30, 1975. See section 509(a)(2). (Complete Part III.)

An organization organized and operated exclusively to test for public safety. Seesection 509(a)(4).

An organization organized and operated exclusively for the benefit of, to perform the functions of, or to carry out the purposes of one or more publicly supported organizations described in section 509(a)(1) or section 509(a)(2). See section 509(a)(3). Check the box that describes the type of supporting organization and complete lines 11e through 11h.

Type I

Type II

Type III - Functionally integrated

Type III - Other

By checking this box, I certify that the organization is not controlled directly or indirectly by one or more disqualified persons other than foundation managers and other than one or more publicly supported organizations described in section 509(a)(1) or section 509(a)(2).

If the organization received a written determination from the IRS that it is a Type I, Type II or Type III supporting organization, check this box ..................................................

Since August 17, 2006, has the organization accepted any gift or contribution from any of the
following persons?

(i) a person who directly or indirectly controls, either alone or together with persons described in (ii)

Yes

and (iii) below, the governing body of the the supported organization? ................

11g(i)

(ii) a family member of a person described in (i) above? ......................

11g(ii)

(iii) a 35% controlled entity of a person described in (i) or (ii) above? ................

11g(iii)

Provide the following information about the supported organization(s).

(i) Name of supported organization	(ii) EIN	(iv) Is the organization in col. (i) listed in your governing document?		(v) Did you notify the organization in col. (i) of your support?		(vi) Is the organization in col. (i) organized in the U.S.?		(vii) Amount of support?
(i) Name of supported organization	(ii) EIN	Yes	No	Yes	No	Yes	No	(vii) Amount of support?


Total

For Paperwork Reduction Act Notice, see the Instructions for Form 990.

Cat. No. 11285F

Schedule A (Form 990 or 990-EZ) 2010

Page 2

Part II

Support Schedule for Organizations Described in IRC 170(b)(1)(A)(iv) and 170(b)(1)(A)(vi)
(Complete only if you checked the box on line 5, 7, or 8 of Part I or if the organization failed to qualify under Part III. If the organization fails to qualify under the tests listed below, please complete Part III.)

Section A. Public Support

Calendar year(or fiscal year beginning in)		(a) 2006	(b) 2007	(c) 2008	(d) 2009	(e) 2010	(f) Total
1	Gifts, grants, contributions, and membership fees received. (Do not include any "unusual grants.") ....
2	Tax revenues levied for the organization's benefit and either paid to or expended on its behalf.......
3	The value of services or facilities furnished by a governmental unit to the organization without charge..
4	Total. Add lines 1 through 3..
5	The portion of total contributions by each person (other than a governmental unit or publicly supported organization) included on line 1 that exceeds 2% of the amount shown on line 11, column (f)..
6	Public Support. Subtract line 5 from line 4.

Section B. Total Support

Calendar year(or fiscal year beginning in)		(a) 2006	(b) 2007	(c) 2008	(d) 2009	(e) 2010	(f) Total
7	Amounts from line 4..
8	Gross income from interest, dividends, payments received on securities loans, rents, royalties and income from similar sources..
9	Net income from unrelated business activities, whether or not the business is regularly carried on..
10	Other income. (Explain in Part IV.) Do not include gain or loss from the sale of capital assets..
11	Total support (Add lines 7 through 10).

Gross receipts from related activities, etc. (See instructions.) ..................

First Five Years If the Form 990 is for the organization's first, second, third, fourth, or fifth tax year as a 501(c)(3) organization,
check this box and stop here.......................................... right arrow

Section C. Computation of Public Support Percentage

Public Support Percentage for 2010 (line 6 column (f) divided by line 11 column (f)) .........

Public Support Percentage for 2009 Schedule A, Part II, line 14 ...............

16a

33 1/3% support test—2010. If the organization did not check the box on line 13, and line 14 is 33 1/3% or more, check this box
and stop here. The organization qualifies as a publicly supported organization ...................... right arrow

33 1/3% support test—2009. If the organization did not check the box on line 13 or 16a, and line 15 is 33 1/3% or more, check this
box and stop here. The organization qualifies as a publicly supported organization ..................... right arrow

17a

10%-facts-and-circumstances test—2010. If the organization did not check a box on line 13, 16a, or 16b and line 14
is 10% or more, and if the organization meets the "facts and circumstances" test, check this box and stop here. Explain
in Part IV how the organization meets the "facts and circumstances" test. The organization qualifies as a publicly supported
organization .................................................. right arrow

10%-facts-and-circumstances test—2009. If the organization did not check a box on line 13, 16a, 16b, or 17a and line
15 is 10% or more, and if the organization meets the "facts and circumstances" test, check this box and stop here.
Explain in Part IV how the organization meets the "facts and circumstances" test. The organization qualifies as a publicly
supported organization .............................................. right arrow

Private Foundation If the organization did not check a box on line 13, 16a, 16b, 17a or 17b, check this box and see
instructions ................................................... right arrow

Schedule A (Form 990 or 990-EZ) 2010

Page 3

Part III

Support Schedule for Organizations Described in IRC 509(a)(2)
(Complete only if you checked the box on line 9 of Part I or if the organization failed to qualify under Part II. If the organization fails to qualify under the tests listed below, please complete Part II.)

Section A. Public Support

Calendar year(or fiscal year beginning in)		(a) 2006	(b) 2007	(c) 2008	(d) 2009	(e) 2010	(f) Total
1	Gifts, grants, contributions, and membership fees received. (Do not include any "unusual grants.") .
2	Gross receipts from admissions, merchandise sold or services performed, or facilities furnished in any activity that is related to the organization's tax-exempt purpose......
3	Gross receipts from activities that are not an unrelated trade or business under section 513..
4	Tax revenues levied for the organization's benefit and either paid to or expended on its behalf...
5	The value of services or facilities furnished by a governmental unit to the organization without charge..
6	Total. Add lines 1 through 5.
7a	Amounts included on lines 1, 2, and 3 received from disqualified persons...
b	Amounts included on lines 2 and 3 received from other than disqualified persons that exceed the greater of $5,000 or 1% of the amount on line 13 for the year.
c	Add lines 7a and 7b..
8	Public Support (Subtract line 7c from line 6.)

Section B. Total Support

Calendar year (or fiscal year beginning in)		(a) 2006	(b) 2007	(c) 2008	(d) 2009	(e) 2010	(f) Total
9	Amounts from line 6...
10a	Gross income from interest, dividends, payments received on securities loans, rents, royalties and income from similar sources..
b	Unrelated business taxable income (less section 511 taxes) from businesses acquired after June 30, 1975.
c	Add lines 10a and 10b.
11	Net income from unrelated business activities not included in line 10b, whether or not the business is regularly carried on.
12	Other income. Do not include gain or loss from the sale of capital assets (Explain in Part IV.)
13	Total support (Add lines 9, 10c, 11 and 12.).

Section C. Computation of Public Support Percentage

Public Support Percentage for 2010 (line 8 column (f) divided by line 13 column (f)) .........

Public support percentage from 2009 Schedule A, Part III, line 15 ...............

Section D. Computation of Investment Income Percentage

Investment income percentage for 2010 (line 10c column (f) divided by line 13 column (f)) ......

Investment income percentage from 2009 Schedule A, Part III, line 17 .............

19a

33 1/3% support tests—2010. If the organization did not check the box on line 14, and line 15 is more than 33 1/3% and line 17 is not more than 33 1/3%, check this box and stop here. The organization qualifies as a publicly supported organization .......... right arrow

33 1/3% support tests—2009. If the organization did not check a box on line 14 or line 19a, and line 16 is more than 33 1/3% and line 18 is not more than 33 1/3%, check this box and stop here. The organization qualifies as a publicly supported organization .... right arrow

Private Foundation If the organization did not check a box on line 14, 19a or 19b, check this box and see instructions ..... right arrow

Schedule A (Form 990 or 990-EZ) 2010

Page 4

Part IV

Supplemental Information. Supplemental Information. Complete this part to provide the explanation required by Part II, line 10; Part II, line 17a or 17b; or Part III, line 12. Also complete this part for any additional information. (See instructions).

Facts And Circumstances Test

Explanation

Schedule A (Form 990 or 990-EZ) 2010

Additional Data

Software ID:
Software Version:

- TIN:

Schedule B
(Form 990, 990-EZ,
or 990-PF)

Department of the Treasury
Internal Revenue Service

Schedule of Contributors

Attach to Form 990, 990-EZ, or 990-PF.

OMB No. 1545-0047

2010

Name of organization

Fort Sanders Regional Medical Center

Employer identification number

62-0528340

Organization type (check one):

Filers of:

Section:

Form 990 or 990-EZ

501(c)( ) (enter number) organization

4947(a)(1) nonexempt charitable trust not treated as a private foundation

527 political organization

Form 990-PF

501(c)(3) exempt private foundation

4947(a)(1) nonexempt charitable trust treated as a private foundation

501(c)(3) taxable private foundation

Check if your organization is covered by the General Rule or a Special Rule.
Note. Only a section 501(c)(7), (8), or (10) organization can check boxes for both the General Rule and a Special Rule. See instructions.

General Rule

For an organization filing Form 990, 990-EZ, or 990-PF that received, during the year, $5,000 or more (in money or
property) from any one contributor. Complete Parts I and II.

Special Rules

For a section 501(c)(3) organization filing Form 990 or 990-EZ, that met the 33¹/3% support test of the regulations
under sections 509(a)(1) and 170(b)(1)(A)(vi), and received from any one contributor, during the year, a contribution of the
greater of (1) $5,000 or (2) 2% of the amount on (i) Form 990, Part VIII, line 1h, or (ii) Form 990-EZ, line 1. Complete Parts I and II.

For a section 501(c)(7), (8), or (10) organization filing Form 990, or 990-EZ, that received from any one contributor,
during the year, aggregate contributions of more than $1,000 for use exclusively for religious, charitable,
scientific, literary, or educational purposes, or the prevention of cruelty to children or animals. Complete Parts I, II, and
III.

For a section 501(c)(7), (8), or (10) organization filing Form 990, or 990-EZ, that received from any one contributor,
during the year, contributions for use exclusively for religious, charitable, etc., purposes, but these contributions did
not aggregate to more than $1,000. If this box is checked, enter here the total contributions that were received during
the year for an exclusively religious, charitable, etc., purpose. Do not complete any of the parts unless the General Rule
applies to this organization because it received nonexclusively religious, charitable, etc., contributions of $5,000 or more
during the year. ......................... Arrow Bullet

Caution. An Organization that is not covered by the General Rule and/or the Special Rules does not file Schedule B (Form 990,
990-EZ, or 990-PF), but it must answer “No” on Part IV, line 2 of its Form 990, or check the box in the heading of its
Form 990-EZ, or on line 2 of its Form 990-PF, to certify that it does not meet the filing requirements of Schedule B (Form 990,
990-EZ, or 990-PF).

For Paperwork Reduction Act Notice, see the Instructions
for Form 990, 990-EZ, or 990-PF.

Cat. No. 30613XSchedule B (Form 990, 990-EZ, or 990-PF) (2010)

Name of organization Fort Sanders Regional Medical Center
Schedule B (Form 990, 990-EZ, or 990-PF) (2010) Page 1 of 1 of Part I
Part I	Contributors (see Instructions)
(a) No.	(b) Name, address, and ZIP + 4	(c) Aggregate contributions	(d) Type of contribution
RESTRICTED	RESTRICTED RESTRICTED RESTRICTED RESTRICTED, RESTRICTED RESTRICTED	$RESTRICTED	Person Payroll Noncash (Complete Part II if there is a noncash contribution.)
(a) No.	(b) Name, address, and ZIP + 4	(c) Aggregate contributions	(d) Type of contribution
		$	Person Payroll Noncash (Complete Part II if there is a noncash contribution.)
(a) No.	(b) Name, address, and ZIP + 4	(c) Aggregate contributions	(d) Type of contribution
		$	Person Payroll Noncash (Complete Part II if there is a noncash contribution.)
(a) No.	(b) Name, address, and ZIP + 4	(c) Aggregate contributions	(d) Type of contribution
		$	Person Payroll Noncash (Complete Part II if there is a noncash contribution.)
(a) No.	(b) Name, address, and ZIP + 4	(c) Aggregate contributions	(d) Type of contribution
		$	Person Payroll Noncash (Complete Part II if there is a noncash contribution.)
(a) No.	(b) Name, address, and ZIP + 4	(c) Aggregate contributions	(d) Type of contribution
		$	Person Payroll Noncash (Complete Part II if there is a noncash contribution.)
Schedule B (Form 990, 990-EZ, or 990-PF) (2010)

Name of organization Fort Sanders Regional Medical Center
Schedule B (Form 990, 990-EZ, or 990-PF) (2010) Page 1 of 1 of Part II
Part II	Noncash Property (see Instructions)
(a) No. from Part I	(b) Description of noncash property given	(c) FMV (or estimate) (see instructions)	(d) Date received
		$
(a) No. from Part I	(b) Description of noncash property given	(c) FMV (or estimate) (see instructions)	(d) Date received
		$
(a) No. from Part I	(b) Description of noncash property given	(c) FMV (or estimate) (see instructions)	(d) Date received
		$
(a) No. from Part I	(b) Description of noncash property given	(c) FMV (or estimate) (see instructions)	(d) Date received
		$
(a) No. from Part I	(b) Description of noncash property given	(c) FMV (or estimate) (see instructions)	(d) Date received
		$
(a) No. from Part I	(b) Description of noncash property given	(c) FMV (or estimate) (see instructions)	(d) Date received
		$
Schedule B (Form 990, 990-EZ, or 990-PF) (2010)

Schedule B (Form 990, 990-EZ, or 990-PF) (2010)

Page 1 of 1 of Part III

Name of organization
Fort Sanders Regional Medical Center

Employer identification number

62-0528340

Part III

Exclusively religious, charitable, etc., individual contributions to section 501(c)(7), (8), or (10) organizations
aggregating more than $1,000 for the year. (Complete columns (a) through (e) and the following line entry.)
For organizations completing Part III, enter the total of exclusively religious, charitable, etc.,
contributions of $1,000 or less for the year. (Enter this information once. See instructions.) Arrow Bullet

(a) No.
from
Part I

(b)
Purpose of gift

(d)
Description of how gift is held

(e) Transfer of gift
Transferee's name, address, and ZIP 4	Relationship of transferor to transferee

(a) No.
from
Part I

(b)
Purpose of gift

(d)
Description of how gift is held

(e) Transfer of gift
Transferee's name, address, and ZIP 4	Relationship of transferor to transferee

(a) No.
from
Part I

(b)
Purpose of gift

(d)
Description of how gift is held

(e) Transfer of gift
Transferee's name, address, and ZIP 4	Relationship of transferor to transferee

(a) No.
from
Part I

(b)
Purpose of gift

(d)
Description of how gift is held

(e) Transfer of gift
Transferee's name, address, and ZIP 4	Relationship of transferor to transferee

Schedule B (Form 990, 990-EZ, or 990-PF) (2010)

Additional Data

Software ID:
Software Version:

- TIN:

SCHEDULE D
(Form 990)

Department of the Treasury
Internal Revenue Service

Supplemental Financial Statements

Complete if the organization answered "Yes," to Form 990,
Part IV, line 6, 7, 8, 9, 10, 11, or 12.
SchDMd Bullet

Attach to Form 990. SchDMd Bullet

See separate instructions.

OMB No. 1545-0047

2010

Open to Public Inspection

Name of the organization

Fort Sanders Regional Medical Center

Employer identification number

62-0528340

Part I

Organizations Maintaining Donor Advised Funds or Other Similar Funds or Accounts. Complete if the organization answered "Yes" to Form 990, Part IV, line 6.

		(a) Donor advised funds	(b) Funds and other accounts
1	Total number at end of year .......
2	Aggregate contributions to (during year) ...
3	Aggregate grants from (during year) ...
4	Aggregate value at end of year .......

Did the organization inform all donors and donor advisors in writing that the assets held in donor advised
funds are the organization's property, subject to the organization's exclusive legal control? ............

Yes No

Did the organization inform all grantees, donors, and donor advisors in writing that grant funds may be
used only for charitable purposes and not for the benefit of the donor or donor advisor, or for any other purpose conferring impermissible private benefit. ...................................

Yes No

Part II

Conservation Easements. Complete if the organization answered "Yes" to Form 990, Part IV, line 7.

Purpose(s) of conservation easements held by the organization (check all that apply).

Preservation of land for public use (e.g., recreation or pleasure) Preservation of an historically importantly land area

Protection of natural habitat Preservation of a certified historic structure

Preservation of open space

Complete lines 2a–2d if the organization held a qualified conservation contribution in the form of a conservation easement on the last day of the tax year.


a	Total number of conservation easements .......................	2a
b	Total acreage restricted by conservation easements ..................	2b
c	Number of conservation easements on a certified historic structure included in (a) .....	2c
d	Number of conservation easements included in (c) acquired after 8/17/06 ........	2d

Number of conservation easements modified, transferred, released, extinguished, or terminated by the organization during
the taxable year SchDMd Bullet

Number of states where property subject to conservation easement is located SchDMd Bullet

Does the organization have a written policy regarding the periodic monitoring, inspection, handling of violations, and
enforcement of the conservation easements it holds? .............................

Yes No

Staff and volunteer hours devoted to monitoring, inspecting and enforcing conservation easements during the year SchDMd Bullet

Amount of expenses incurred in monitoring, inspecting, and enforcing conservation easements during the year SchDMd Bullet

Does each conservation easement reported on line 2(d) above satisfy the requirements of section
170(h)(4)(B)(i) and 170(h)(4)(B)(ii)? ....................................

Yes No

In Part XIV, describe how the organization reports conservation easements in its revenue and expense statement, and
balance sheet, and include, if applicable, the text of the footnote to the organization’s financial statements that describes
the organization’s accounting for conservation easements.

Part III

Organizations Maintaining Collections of Art, Historical Treasures, or Other Similar Assets.
Complete if the organization answered "Yes" to Form 990, Part IV, line 8.

If the organization elected, as permitted under SFAS 116, not to report in its revenue statement and balance sheet works of
art, historical treasures, or other similar assets held for public exhibition, education or research in furtherance of public service,
provide, in Part XIV, the text of the footnote to its financial statements that describes these items.

If the organization elected, as permitted under SFAS 116, to report in its revenue statement and balance sheet works of art,
historical treasures, or other similar assets held for public exhibition, education, or research in furtherance of public service,
provide the following amounts relating to these items:

(i)

Revenues included in Form 990, Part VIII, line 1 ........................ SchDMd Bullet

(ii)

Assets included in Form 990, Part X .............................. SchDMd Bullet

If the organization received or held works of art, historical treasures, or other similar assets for financial gain, provide the
following amounts required to be reported under SFAS 116 relating to these items:

Revenues included in Form 990, Part VIII, line 1 .......................... SchDMd Bullet

Assets included in Form 990, Part X ............................... SchDMd Bullet

For Privacy Act and Paperwork Reduction Act Notice, see the Intructions for Form 990

Cat. No. 52283D

Schedule D (Form 990) 2010

Page 2

Part III

Organizations Maintaining Collections of Art, Historical Treasures, or Other Similar Assets (continued)

Using the organization’s accession and other records, check any of the following that are a significant use of its collection
items (check all that apply):

Public exhibition

Loan or exchange programs

Scholarly research

Other

Preservation for future generations

Provide a description of the organization’s collections and explain how they further the organization’s exempt purpose in
Part XIV.

During the year, did the organization solicit or receive donations of art, historical treasures or other similar
assets to be sold to raise funds rather than to be maintained as part of the organization’s collection?........

Yes No

Part IV

Escrow and Custodial Arrangements. Complete if the organization answered "Yes" to Form 990,
Part IV, line 9, or reported an amount on Form 990, Part X, line 21.

Is the organization an agent, trustee, custodian or other intermediary for contributions or other assets not
included on Form 990, Part X? ....................................

Yes No

If "Yes," explain the arrangement in Part XIV and complete the following table:


c	Beginning balance .................................	1c
d	Additions during the year ..............................	1d
e	Distributions during the year .............................	1e
f	Ending balance ...................................	1f

Did the organization include an amount on Form 990, Part X, line 21? .....................

Yes No

If “Yes,” explain the arrangement in Part XIV.

Part V

Endowment Funds. Complete if the organization answered "Yes" to Form 990, Part IV, line 10.

		(a)Current Year	(b)Prior Year	(c)Two Years Back
1a	Beginning of year balance ....	65,000	25,000	25,000
b	Contributions ........	38,913	40,000
c	Investment earnings or losses ...	4,233	567	999
d	Grants or scholarships .....
e	Other expenditures for facilities and programs ........	4,233	567	999
f	Administrative expenses ....
g	End of year balance ......	103,913	65,000	25,000

Provide the estimated percentage of the year end balance held as:

Board designated or quasi-endowment: SchDMd Bullet

0 %

Permanent endowment: SchDMd Bullet

100.000 %

Term endowment: SchDMd Bullet

0 %

Are there endowment funds not in the possession of the organization that are held and administered for the
organization by:

Yes

(i) unrelated organizations ........................

3a(i)

(ii) related organizations ........................

3a(ii)

Yes

If "Yes" to 3a(ii), are the related organizations listed as required on Schedule R? .........

Yes

Describe in Part XIV the intended uses of the organization's endowment funds.

Part VI

InvestmentsLand, Buildings, and Equipment. See Form 990, Part X, line 10.

Description of investment		(a) Cost or other basis (investment)	(b)Cost or other basis (other)	(c) Accumulated depreciation	(d) Book value
1a	Land .................	100,345	6,790,526		6,890,871
b	Buildings ................	30,749,482	87,562,205	80,996,611	37,315,076
c	Leasehold improvements ............		1,826,606	838,232	988,374
d	Equipment ................		220,274,220	143,754,379	76,519,841
e	Other .................		1,032,346	819,510	212,836
Total. Add lines 1a-1e. (Column (d) should equal Form 990, Part X, column (B), line 10(c).)........					121,926,998

Schedule D (Form 990) 2010

Page 3

Part VII

InvestmentsOther Securities. See Form 990, Part X, line 12.

(a) Description of security or category (including name of security)		(b)Book value	(c) Method of valuation: Cost or end-of-year market value
(1)Financial derivatives
(2)Closely-held equity interests
Other








Total. (Column (b) should equal Form 990, Part X, col.(B) line 12.)

Part VIII

InvestmentsProgram Related. See Form 990, Part X, line 13.

(a) Description of investment type		(b) Book value	(c) Method of valuation: Cost or end-of-year market value









Total. (Column (b) should equal Form 990, Part X, col.(B) line 13.)

Part IX

Other Assets. See Form 990, Part X, line 15.

(a) Description				(b) Book value









Total. (Column (b) should equal Form 990, Part X, col.(B) line 15.)...........

Part X

Other Liabilities. See Form 990, Part X, line 25.

1.(a) Description of Liability		(b) Amount
Federal Income Taxes
Due to Affiliates, Net		7,468,858
Due to Third Party Payors		2,804,181
Long-term Deferred Compensation		115,452
Long-term Reserve for Workers Comp		2,035,835





Total. (Column (b) should equal Form 990, Part X, col.(B) line 25.)		12,424,326
2. Fin 48 (ASC 740) Footnote. In Part XIV, provide the text of the footnote to the organization's financial statements that reports the organization's liability for uncertain tax positions under FIN 48 (ASC740).

Schedule D (Form 990) 2010

Page 4

Part XI Reconciliation of Change in Net Assets from Form 990 to Financial Statements
1	Total revenue (Form 990, Part VIII, column (A), line 12) ....................	1
2	Total expenses (Form 990, Part IX, column (A), line 25) .....................	2
3	Excess or (deficit) for the year. Subtract line 2 from line 1 .............	3
4	Net unrealized gains (losses) on investments ..........................	4
5	Donated services and use of facilities .............................	5
6	Investment expenses ...................................	6
7	Prior period adjustments ..................................	7
8	Other (Describe in Part XIV) .................................	8
9	Total adjustments (net). Add lines 4 - 8 .............................	9
10	Excess or (deficit) for the year per financial statements. Combine lines 3 and 9 .........	10

Part XII Reconciliation of Revenue per Audited Financial Statements With Revenue per Return
1	Total revenue, gains, and other support per audited financial statements .......		1
2	Amounts included on line 1 but not on Form 990, Part VIII, line 12:
a	Net unrealized gains on investments ..........	2a
b	Donated services and use of facilities .........	2b
c	Recoveries of prior year grants ...........	2c
d	Other (Describe in Part XIV): ............	2d
e	Add lines 2a through 2d .....................		2e
3	Subtract line 2e from line 1.....................		3
4	Amounts included on Form 990, Part VIII, line 12, but not on line 1:
a	Investment expenses not included on Form 990, Part VIII, line 7b .	4a
b	Other (Describe in Part XIV): ...........	4b
c	Add lines 4a and 4b.......................		4c
5	Total Revenue. Add lines 3 and 4c. (This should equal Form 990, Part I, line 12.) ......		5

Part XIII Reconciliation of Expenses per Audited Financial Statements With Expenses per Return
1	Total expenses and losses per audited financial statements .............		1
2	Amounts included on line 1 but not on Form 990, Part IX, line 25:
a	Donated services and use of facilities ..........	2a
b	Prior year adjustments ..............	2b
c	Other losses ................	2c
d	Other (Describe in Part XIV): ............	2d
e	Add lines 2a through 2d......................		2e
3	Subtract line 2e from line 1.....................		3
4	Amounts included on Form 990, Part IX, line 25, but not on line 1:
a	Investment expenses not included on Form 990, Part VIII, line 7b ..	4a
b	Other (Describe in Part XIV): ............	4b
c	Add lines 4a and 4b.......................		4c
5	Total expenses. Add lines 3 and 4c. (This should equal Form 990, Part I, line 18.) ......		5

Part XIV

Supplemental Information

Complete this part to provide the descriptions required for Part II, lines 3, 5, and 9; Part III, lines 1a and 4; Part lV, lines 1b and 2b;
Part V, line 4; Part X; Part XI, line 8; Part XII, lines 2d and 4b; and Part XIII, lines 2d and 4b. Also complete this part to provide any additional information.

Identifier	Return Reference	Explanation
Description of Intended Use of Endowment Funds:	Part V, Line 4:	Fort Sanders Foundation mantains two permanent endowments for the purpose of providing a permanent source of income for the following programs at Fort Sanders Regional Medical Center: The Pastoral Care Fund and the Caroline Can! Fund. The principal of the endowments will be kept intact in perpetuity. Only the income generated will be distributed to FSRMC to provide support for the aforementioned programs.

Schedule D (Form 990) 2010

Additional Data

Software ID:
Software Version:

- TIN:

SCHEDULE G
(Form 990 or 990-EZ)

Department of the Treasury
Internal Revenue Service

Supplemental Information Regarding
Fundraising or Gaming Activities

Complete if the organization answered "Yes" to Form 990, Part IV, lines 17, 18, or 19,
or if the organization entered more than $15,000 on Form 990-EZ, line 6a.
right arrow

Attach to Form 990 or Form 990-EZ. right arrow

See separate instructions.

OMB No. 1545-0047

2010

Open to Public Inspection

Name of the organization
Fort Sanders Regional Medical Center

Employer identification number

62-0528340

Part I

Fundraising Activities. Complete if the organization answered "Yes" to Form 990, Part IV, line 17.

Indicate whether the organization raised funds through any of the following activities. Check all that apply.

a	Mail solicitations	e	Solicitation of non-government grants
b	Internet and e-mail solicitations	f	Solicitation of government grants
c	Phone solicitations	g	Special fundraising events
d	In-person solicitations

Did the organization have a written or oral agreement with any individual (including officers, directors, trustees

or key employees listed in Form 990, Part VII) or entity in connection with professional fundraising services?

Yes

If “Yes,” list the ten highest paid individuals or entities (fundraisers) pursuant to agreements under which the fundraiser is
to be compensated at least $5,000 by the organization. Form 990-EZ filers are not required to complete this table.

(i) Name and address of individual or entity (fundraiser)	(ii) Activity	(iii) Did fundraiser have custody or control of contributions?		(iv) Gross receipts from activity	(v) Amount paid to (or retained by) fundraiser listed in col. (i)	(vi) Amount paid to (or retained by) organization
	(ii) Activity	Yes	No	(iv) Gross receipts from activity		(vi) Amount paid to (or retained by) organization
Total .................

List all states in which the organization is registered or licensed to solicit funds or has been notified it is exempt from registration or licensing.

For Privacy Act and Paperwork Reduction Act Notice, see the Instructions for Form 990.

Cat. No. 50083H

Schedule G (Form 990 or 990-EZ) 2010

Page 2

Part II

Fundraising Events. Complete if the organization answered "Yes" to Form 990, Part IV, line 18, or reported more than $15,000 on Form 990-EZ, line 6a. List events with gross receipts greater than $5,000.

		(a) Event #1 Uniform Sales (event type)	(b) Event #2 Jewelry Sales (event type)	(d) Total Events (Add col. (a) through col. (c))
1	Gross receipts . . .	50,176	11,101	61,277
2	Less: Charitable contributions . . .
3	Gross income (line 1 minus line 2) . . .	50,176	11,101	61,277
4	Cash prizes . . .
5	Non-cash prizes . .
6	Rent/facility costs . .
7	Food and beverages . .
8	Entertainment . . .
9	Other direct expenses .	40,040	9,069	49,109
10	Direct expense summary. Add lines 4 through 9 in column (d) ...........			49,109
11	Net income summary. Combine lines 3 and 10 in column (d)............			12,168

Part III

Gaming. Complete if the organization answered "Yes" to Form 990, Part IV, line 19, or reported more than $15,000 on Form 990-EZ, line 6a.

(a) Bingo

(b) Pull tabs/Instant
bingo/progressive bingo

(c) Other gaming

(d) Total gaming (Add col. (a) through col. (c))

Gross revenue . . . .

Cash prizes . . . .

Non-cash prizes . . .

Rent/facility costs . . .

Other direct expenses . .

Volunteer labor . . .

	Yes
	No

	Yes
	No

	Yes
	No

Direct expense summary. Add lines 2 through 5 in column (d) ........... right arrow

Net gaming income summary. Combine lines 1 and 7 in column (d) .......... right arrow

Enter the state(s) in which the organization operates gaming activities:

Is the organization licensed to operate gaming activities in each of these states? ............

YesNo

If "No," Explain:

10a

Were any of the organization's gaming licenses revoked, suspended or terminated during the tax year? .....

YesNo

If "Yes," Explain:

Does the organization operate gaming activities with nonmembers? .................

YesNo

Is the organization a grantor, beneficiary or trustee of a trust or a member of a partnership or other entity

formed to administer charitable gaming? ...........................

YesNo

Schedule G (Form 990 or 990-EZ) 2010

Page 3

Indicate the percentage of gaming activity operated in:

The organization's facility ......................

13a

An outside facility ........................

13b

Provide the name and address of the person who prepares the organization's gaming/special events books and records:

Name

Address

15a

Does the organization have a contract with a third party from whom the organization receives gaming

revenue? ......................................

YesNo

If "Yes," enter the amount of gaming revenue received by the organization right arrow

$ and the

amount of gaming revenue retained by the third party right arrow

$ .

If "Yes," enter name and address:

Name

Address

Gaming manager information:

Name

Gaming manager compensation right arrow

Description of services provided right arrow

Director/officer Employee Independent contractor

Mandatory distributions:

Is the organization required under state law to make charitable distributions from the gaming proceeds to

retain the state gaming license? ............................

YesNo

Enter the amount of distributions required under state law distributed to other exempt organizations or spent

in the organization's own exempt activities during the tax year right arrow

Part IV

Complete this part to provide additional information for responses to quuestion on Schedule G (see instructions.)

Identifier	ReturnReference	Explanation

Schedule G (Form 990 or 990-EZ) 2010

Additional Data

Software ID:
Software Version:

- TIN:

SCHEDULE H
(Form 990)

Department of the Treasury
Internal Revenue Service

Hospitals

Complete if the organization answered "Yes" to Form 990, Part IV, question 20.
MediumBullet

Attach to Form 990. MediumBullet

See separate instructions.

OMB No. 1545-0047

2010

Open to Public Inspection

Name of the organization

Fort Sanders Regional Medical Center

Employer identification number

62-0528340

Part I

Charity Care and Certain Other Community Benefits at Cost

Yes

Does the organization have a charity care policy? If "No," skip to question 6a...........

Yes

If "Yes," is it a written policy? .......................

Yes

If the organization has multiple hospitals, indicate which of the following best describes application of the charity care policy to the various hospitals.

Applied uniformly to all hospitals Applied uniformly to most hospitals Generally tailored to individual hospitals

Answer the following based on the charity care eligibility criteria that applies to the largest number of the organization's patients.

Does the organization use Federal Poverty Guidelines (FPG) to determine eligibility for providing free care to low

income individuals? If "Yes," indicate which of the following is the FPG family income limit for eligibility for free care:

Yes

100% 150% 200% Other

Does the organization use FPG to determine eligibility for providing discounted care to low income individuals? If

"Yes," indicate which of the following is the family income limit for eligibility for discounted care: .....

Yes

200% 250% 300% 350% 400% Other

If the organization does not use FPG to determine eligibility, describe in Part VI the income based criteria for determining eligibility for free or discounted care. Include in the description whether the organization uses an asset test or other threshold, regardless of income, to determine eligibility for free or discounted care.

Does the organization's policy provide free or discounted care to the "medically indigent"? ......

Yes

Does the organization budget amounts for free or discounted care provided under its charity care policy? ...

Yes

If "Yes," did the organization's charity care expenses exceed the budgeted amount?.........

Yes

If "Yes" to line 5b, as a result of budget considerations, was the organization unable to provide free or discounted
care to a patient who was eligibile for free or discounted care?...............

Does the organization prepare an annual community benefit report?.............

Yes

If "Yes," does the organization make it available to the public? ..............

Yes

Complete the following table using the worksheets provided in the Schedule H instructions. Do not submit these worksheets with the Schedule H.

Charity Care and Certain Other Community Benefits at Cost

	(c) Total community benefit expense	(d) Direct offsetting revenue	(e) Net community benefit expense	(f) Percent of total expense
a Charity care at cost (from Worksheets 1 and 2) ..	19,077,522	6,450,409	12,627,113	4.460 %
b Unreimbursed Medicaid (from Worksheet 3, column a) .	58,941,781	40,245,990	18,695,791	6.600 %
c Unreimbursed costs—other means-tested government programs (from Worksheet 3, column b) ....	2,021,203	538,012	1,483,191	0.520 %
dTotal Charity Care and Means-Tested Government Programs .....	80,040,506	47,234,411	32,806,095	11.580 %
Other Benefits e Community health improvement services and community benefit operations (from (Worksheet 4) ....	96,995	39,775	57,220	0.020 %
f Health professions education (from Worksheet 5) ..	55,269	8,036	47,233	0.020 %
g Subsidized health services (from Worksheet 6) ..	11,102,728	7,080,509	4,022,219	1.420 %
h Research (from Worksheet 7)
i Cash and in-kind contributions to community groups (from Worksheet 8) ..	162,567	56,294	106,273	0.040 %
jTotal Other Benefits ...	11,417,559	7,184,614	4,232,945	1.500 %
kTotal. Add lines 7d and 7j. ..	91,458,065	54,419,025	37,039,040	13.080 %

For Privacy Act and Paperwork Reduction Act Notice, see the Instructions for Form 990. Cat. No. 50192T Schedule H (Form 990) 2010

Schedule H (Form 990) 2010

Page 2

Part II

Community Building Activities Complete this table if the organization conducted any community building activities.

		(c) Total community building expense	(e) Net community building expense	(f) Percent of total expense
1	Physical improvements and housing	12,903	12,903	0 %
2	Economic development	49,300	49,300	0.020 %
3	Community support	45,458	45,458	0.020 %
4	Environmental improvements
5	Leadership development and training for community members
6	Coalition building	524	524	0 %
7	Community health improvement advocacy
8	Workforce development
9	Other
10	Total	108,185	108,185	0.040 %

Part III

Bad Debt, Medicare, & Collection Practices

Section A. Bad Debt Expense

Yes

Does the organization report bad debt expense in accordance with Heathcare Financial Management Association Statement No. 15? ..........................

Enter the amount of the organization's bad debt expense (at cost).....

4,113,665

Enter the estimated amount of the organization's bad debt expense (at cost) attributable to patients eligible under the organization's charity care policy ..

1,438,960

Provide in Part VI the text of the footnote to the organization's financial statements that describes bad debt expense. In addition, describe the costing methodology used in determining the amounts reported on lines 2 and 3, and rationale for including a portion of bad debt amounts as community benefit.

Section B. Medicare

Enter total revenue received from Medicare (including DSH and IME).....

75,518,080

Enter Medicare allowable costs of care relating to payments on line 5.....

70,991,653

Subtract line 6 from line 5. This is the surplus or (shortfall)........

4,526,427

Describe in Part VI the extent to which any shortfall reported in line 7 should be treated as community benefit.
Also describe in Part VI the costing methodology or source used to determine the amount reported on line 6.
Check the box that describes the method used:

Cost accounting system Cost to charge ratio Other

Section C. Collection Practices

Does the organization have a written debt collection policy? ...............

Yes

If "Yes," does the organization's collection policy contain provisions on the collection practices to be followed for patients who are known to qualify for charity care or financial assistance? Describe in Part VI......

Yes

Part IV

Management Companies and Joint Ventures

(a) Name of entity	(b) Description of primary activity of entity	(c) Organization's profit % or stock ownership %	(d) Officers, directors, trustees, or key employees' profit % or stock ownership%	(e) Physicians' profit % or stock ownership %
11 NONE
2
3
4
5
6
7
8
9
10
11
12
13

Schedule H (Form 990) 2010

Page 3

Part VFacility Information

Section A. Hospital Facilities (list in order of size, measured by total revenue per facility, from largest to smallest) How many hospital facilities did the organization operate during the tax year?1 Name and address		Other (Describe)
1	Fort Sanders Regional Medical Center 1901 Clinch Avenue Knoxville,TN37916	X	X	X	X

Schedule H (Form 990) 2010

Page 4

Part VFacility Information (continued)

Section B. Facility Policies and Practices.

(Complete a separate Section B for each of the hospital facilities listed in Part V, Section A)

Name of Hospital Facility:Not Required

Line Number of Hospital Facility (from Schedule H, Part V, Section A):1

				Yes	No
Community Health Needs Assessment (Lines 1 through 7 are optional for 2010)
1	During the tax year or any prior tax year, did the hospital facility conduct a community health needs assessment (“Needs Assessment”)? If “No,” skip to question 8. .....................		1
	If “Yes,” indicate what the Needs Assessment describes (check all that apply):
	a	A definition of the community served by the hospital facility
	b	Demographics of the community
	c	Existing health care facilities and resources within the community that are available to respond to the health needs of the community
	d	How data was obtained
	e	The health needs of the community
	f	Primary and chronic disease needs and other health issues of uninsured persons, low-income persons, and minority groups
	g	The process for identifying and prioritizing community health needs and services to meet those needs
	h	The process for consulting with persons representing the community’s interests
	i	Information gaps that limit the hospital facility’s ability to assess all of the community’s health needs
	j	Other (describe in Part VI)
2	Indicate the tax year the hospital facility last conducted a Needs Assessment: 20
3	In conducting its most recent Needs Assessment, did the hospital facility take into account input from persons who represent the community served by the hospital facility? If “Yes,” describe in Part VI how the hospital facility took into account input from persons who represent the community, and identify the persons the hospital facility consulted.		3
4	Was the hospital facility’s Needs Assessment conducted with one or more other hospital facilities? If “Yes,” list the other hospital facilities in Part VI............................		4
5	Did the hospital facility make its Needs Assessment widely available to the public? ...........		5
	If “Yes,” indicate how the Needs Assessment was made widely available (check all that apply):
	a	Hospital facility’s website
	b	Available upon request from the hospital facility
	c	Other (describe in Part VI)
6	If the hospital facility addressed needs identified in its most recently conducted Needs Assessment, indicate how (check all that apply):
	a	Adoption of an implementation strategy to address the health needs of the hospital facility’s community
	b	Execution of the implementation strategy
	c	Development of a community benefit plan for the facility
	d	Participation in community-wide community benefit plan
	e	Inclusion of a community benefit section in operational plans
	f	Adoption of a budget for provision of services that address the needs identified in the CHNA
	g	Prioritization of health needs in the community
	h	Prioritization of services that the hospital facility will undertake to meet health needs in its community
	i	Other (describe in Part VI)
7	Did the hospital facility address all of the needs identified in its most recently conducted Needs Assessment? If “No,” explain in Part VI which needs it has not addressed together with the reasons why it has not addressed such needs.		7
Financial Assistance Policy
	Did the hospital facility have in place during the tax year a written financial assistance policy that:
8	Explains eligibility criteria for financial assistance, and whether such assistance includes free or discounted care?		8
9	Used federal poverty guidelines (FPG) to determine eligibility for providing free care to low incomeindividuals?..		9
	If “Yes,” indicate the FPG family income limit for eligibility for free care: %

Schedule H (Form 990) 2010

Page 5

Part VFacility Information (continued)

				Yes	No
10	Used FPG to determine eligibility for providing discounted care to low income individuals?.........		10
	If “Yes,” indicate the FPG family income limit for eligibility for discounted care: %
11	Explained the basis for calculating amounts charged to patients?.................		11
	If “Yes,” indicate the factors used in determining such amounts (check all that apply):
	a	Income level
	b	Asset level
	c	Medical indigency
	d	Insurance status
	e	Uninsured discount
	f	Medicaid/Medicare
	g	State regulation
	h	Other (describe in Part VI)
12	Explained the method for applying for financial assistance?...................		12
13	Included measures to publicize the policy within the community served by the hospital facility?.......		13
	If “Yes,” indicate how the hospital facility publicized the policy (check all that apply):
	a	The policy was posted at all times on the hospital facility’s web site
	b	The policy was attached to all billing invoices
	c	The policy was posted in the hospital facility’s emergency rooms or waiting rooms
	d	The policy was posted in the hospital facility’s admissions offices
	e	The policy was provided, in writing, to patients upon admission to the hospital facility
	f	The policy was available upon request
	g	Other (describe in Part VI)
Billing and Collections
14	Did the hospital facility have in place during the tax year a separate billing and collections policy, or a written financial assistance policy that explained actions the hospital facility may take upon non-payment?........		14
15	Check all of the following collection actions against a patient that were permitted under the hospital facility's policies at any time during the tax year:
	a	Reporting to credit agency
	b	Lawsuits
	c	Liens on residences
	d	Body attachments or arrests
	e	Other (describe in Part VI)
16	Did the hospital facility engage in or authorize a third party to engage in any of the following collection actions during the tax year?...................................		16
	If “Yes,” check all collection actions in which the hospital facility or a third party engaged (check all that apply):
	a	Reporting to credit agency
	b	Lawsuits
	c	Liens on residences
	d	Body attachments
	e	Other (describe in Part VI)
17	Indicate which actions the hospital facility took before initiating any of the collection actions checked in question 16 (check all that apply):
	a	Notified patients of the financial assistance policy upon admission
	b	Notified patients of the financial assistance policy prior to discharge
	c	Notified patients of the financial assistance policy in communications with the patients regarding the patients’ bills
	d	Documented its determination of whether a patient who applied for financial assistance under the financial assistance policy qualified for financial assistance
	e	Other (describe in Part VI)

Schedule H (Form 990) 2010

Page 6

Part VFacility Information (continued)

Policy Relating to Emergency Medical Care
				Yes	No
18	Did the hospital facility have in place during the tax year a written policy relating to emergency medical care that requires the hospital facility to provide, without discrimination, care for emergency medical conditions to individuals regardless of their eligibility under the hospital facility’s financial assistance policy?..........		18
	If “No,” indicate the reasons why (check all that apply):
	a	The hospital facility did not provide care for any emergency medical conditions
	b	The hospital facility did not have a policy relating to emergency medical care
	c	The hospital facility limited who was eligible to receive care for emergency medical conditions (describe in Part VI)
	d	Other (describe in Part VI)
Charges for Medical Care
19	Indicate how the hospital facility determined the amounts generally billed to individuals who had insurance covering emergency or other medically necessary care (check all that apply):
	a	The hospital facility used the lowest negotiated commercial insurance rate for those services at the hospital facility
	b	The hospital facility used the average of the three lowest negotiated commercial insurance rates for those services at the hospital facility
	c	The hospital facility used the Medicare rate for those services
	d	Other (describe in Part VI)
20	Did the hospital facility charge any of its patients who were eligible for assistance under the hospital facility’s financial assistance policy, and to whom the hospital facility provided emergency or other medically necessary services, more than the amounts generally billed to individuals who had insurance covering such care?.........		20
	If “Yes,” explain in Part VI.
21	Did the hospital facility charge any of its patients an amount equal to the gross charge for services provided to that patient?...................................		21
	If “Yes,” explain in Part VI.

Schedule H (Form 990) 2010

Page 7

Part VFacility Information (continued)

Section C. Other Facilities That Are Not Licensed, Registered, or Similarly Recognized as a Hospital Facility (list in order of size, measured by total revenue per facility, from largest to smallest) How many non-hospital facilities did the organization operate during the tax year?18
Name and address		Type of Facility (Describe)
1	FSR Infusion Services TCSC 1915 White Avenue Knoxville,TN37916	Pharmacy - Infusion Services
2	FSR Infusion Services TCSC 1915 White Avenue Knoxville,TN37916	Pharmacy - Infusion Services
3	FSR Infusion Services TCSC 1915 White Avenue Knoxville,TN37916	Pharmacy - Infusion Services
4	FSR Infusion Services TCSC 1915 White Avenue Knoxville,TN37916	Pharmacy - Infusion Services
5	FSR Infusion Services TCSC 1915 White Avenue Knoxville,TN37916	Pharmacy - Infusion Services
6	FSR Infusion Services TCSC 1915 White Avenue Knoxville,TN37916	Pharmacy - Infusion Services
7	FSR Infusion Services TCSC 1915 White Avenue Knoxville,TN37916	Pharmacy - Infusion Services
8	FSR Infusion Services TCSC 1915 White Avenue Knoxville,TN37916	Pharmacy - Infusion Services
9	FSR Infusion Services TCSC 1915 White Avenue Knoxville,TN37916	Pharmacy - Infusion Services
10	FSR Infusion Services TCSC 1915 White Avenue Knoxville,TN37916	Pharmacy - Infusion Services
11	FSR Infusion Services TCSC 1915 White Avenue Knoxville,TN37916	Pharmacy - Infusion Services
12	FSR Infusion Services TCSC 1915 White Avenue Knoxville,TN37916	Pharmacy - Infusion Services
13	FSR Infusion Services TCSC 1915 White Avenue Knoxville,TN37916	Pharmacy - Infusion Services
14	FSR Infusion Services TCSC 1915 White Avenue Knoxville,TN37916	Pharmacy - Infusion Services
15	FSR Infusion Services TCSC 1915 White Avenue Knoxville,TN37916	Pharmacy - Infusion Services
16	FSR Infusion Services TCSC 1915 White Avenue Knoxville,TN37916	Pharmacy - Infusion Services
17	FSR Infusion Services TCSC 1915 White Avenue Knoxville,TN37916	Pharmacy - Infusion Services
18	FSR Infusion Services TCSC 1915 White Avenue Knoxville,TN37916	Pharmacy - Infusion Services

Schedule H (Form 990) 2010

Page 8

Part VI

Supplemental Information

Complete this part to provide the following information.

1	Required descriptions. Provide the description required for Part I, lines 3c, 6a, and 7; Part II; Part III, lines 4, 8, and 9b; and Part V, Section B, lines 1j, 2, 4c, 6i, 7, 11i, 13i, 17l, 18l, 19e, 21d, 25, and 26.
2	Community health needs assessment. Describe how the organization assesses the health care needs of the communities it serves, in addition to any community health needs assessments reported in Part V, Section B.
3	Patient education of eligibility for assistance. Describe how the organization informs and educates patients and persons who may be billed for patient care about their eligibility for assistance under federal, state, or local government programs or under the organization’s financial assistance policy.
4	Community information. Describe the community the organization serves, taking into account the geographic area and demographic constituents it serves.
5	Promotion of community health. Provide any other information important to describing how the organization’s hospital facilities or other health care facilities further its exempt purpose by promoting the health of the community (e.g., open medical staff, community board, use of surplus funds, etc.).
6	Affiliated health care system. If the organization is part of an affiliated health care system, describe the respective roles of the organization and its affiliates in promoting the health of the communities served.
7	State filing of community benefit report. If applicable, identify all states with which the organization, or a related organization, files a community benefit report.

Identifier	ReturnReference	Explanation
		Part I, Line 6a: Covenant Health, the parent company of Fort Sanders Regional Medical Center and other affiliated acute care hospitals, prepares an annual Report to the Community on behalf of the entire system.
		Part I, Line 7: Amounts on Lines 7a-7c are from the hospital's cost accounting system, which addresses all patient segments. Other community benefit expenses are at historical cost from the general ledger.
		Part I, Line 7g: The organization has included $1,076,067 in physician sponsorship fees in total subsidized health services.
		Part I, Line 7, Column (f): The Bad Debt expense included on Form 990, Part IX, Line 25, Column (A), but subtracted for purposes of calculating the percentage in this column is $ 14975758.
		Part II: Fort Sanders Regional Medical Center supports the community building activities of its parent company, Covenant Health. 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.Community Building activities included cash and in-kind donations for the development of community health programs and partnerships. These activities include physical improvements and housing, economic development and support system enhancements like disaster readiness, mentoring programs, and youth asset development initiatives. Such programs address the root causes of health problems, such as poverty and homelessness due to lack of education and jobs.In 2010 the System provided Community Building support to many organizations, the most significant of which included: Catholic Charities of East Tennessee East TN Economic Development Agency Emerald Youth Foundation Great Schools Partnership Charitable Trust (for Knox Co. schools) Innovation Valley Technology Council Second Harvest Food Bank of East TN Variety Children's Charity of East TN
		Part III, Line 4: Note B to the 2010 Audited Consolidated Financial Statements of the Covenant Health system, of which Fort Sanders Regional Medical Center is a member, reads: "Patient accounts receivable are reported net of both an estimated allowance for uncollectible accounts and an estimated allowance for contractual adjustments. The contractual adjustment represents the difference between established billing rates and estimated reimbursement from Medicare, TennCare and other third-party payment programs. Current operations for 2010 and 2009 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 at cost on Line 2 was obtained from the hospital's cost accounting system from a listing of all accounts written off to bad debt.In the previous year, the hospital reviewed all patient accounts in bad debt status to identify persons who might have qualified for financial assistance. Notes in the patient record were reviewed to see if a patient or guarantor was sent a charity care application based on statements that they could not afford to pay all that they owed. The hospital could not make a final determination as to their qualification for financial assistance due to missing or incomplete information (i.e. charity care application was not returned to the hospital business office or supporting documentation was not provided) but felt strongly that the patients were in need of some form of assistance. The percentage of total bad debt at cost applicable to patients identified through this review process has been applied to the current year total bad debt at cost on Line 2 to arrive at the amount reported on Line 3.
		Part III, Line 8: Costing Methodology: Fort Sanders Regional Medical Center used a combination of sources in calculating Medicare allowable costs on Part III, Line 6 including its cost accounting system, general ledger accounting system, and facility-specific analyses and calculations.
		Part III, Line 9b: Self-pay patients automatically receive a minimum 46% discount on charges. Federal poverty guidelines are utilized in the determination of charity care eligibility. Patients who are unable to pay and have exhausted all sources of payment assistance may qualify for charity care. A sliding scale is used for extending charity care utilizing the income levels reported under the federal poverty guidelines. Patients/ guarantors with income that falls below 200% of the federal poverty guidelines receive 100% charity care. Patients/guarantors with income of 201-300% of the federal poverty guidelines receive 70% charity care.For catastrophic illness, exceptions to income and asset limitations may be made on a case-by-case basis. The amount considered for charity will be based upon the evaluation of the patient's/guarantor's ability to pay.
		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: Fort Sanders Regional Medical Center (FSRMC) posts a sign in each registration office that states: Financial Assistance: It is FSRMC's philosophy that no one shall be denied medically necessary services based on an inability to pay. Financial assistance applications for medically necessary services are available during the registration process or through our Financial Counselor's office. To apply for financial aid, please ask our registration staff or contact the Counselor's office at 541-2987. The Financial Counselor is available Monday - Friday, 8 a.m. to 4:30 p.m.In addition, signs are posted in the main and registration lobbies at FSRMC that read: 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 Fort Sanders Regional Medical Center 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, Fort Sanders Regional Medical Center, 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 by calling 865-541-1112, Monday through Friday between the hours of 8 a.m. - 4:30 p.m.FSRMC employs full-time financial counselors that meet with each uninsured patient. In addition, FSRMC contracts with First Source Solutions, an eligibility service, that places a representative in the facility full time. This representative screens patients for eligibility, assists them with TennCare and disability enrollment, and ensures enrollment in the appropriate programs.The Charity Care Policy states that patients who are unable to pay and have exhausted all sources of payment assistance may be screened for potential charity care eligibility. According to the policy, the financial counselors initiate screening of the patient and/or guarantor by obtaining income and other financial information to determine eligibility for charity care or discounted services.
		Part VI, Line 4: Fort Sanders Regional Medical Center is located in downtown Knoxville, Tennessee. Although located in metropolitan Knox County, Fort Sanders Regional Medical Center receives many specialty referrals from outlying hospitals and physicians and serves patients from 16 diverse counties, a mix of urban, suburban and rural. According to internal hospital data for 2010, slightly more than 52% of the inpatients discharged were Knox County residents. Sevier County provides Fort Sanders Regional with the second highest number of admissions compared to other counties in the region, nearly 11% of the total.According to 2008 data of the U.S. Census Bureau, the collective population of the 16-county region is 1,157,473, of which 51.2% are female and 48.8% are male. The racial makeup of the population is 94% Caucasian, 4.6% black, and 1.4% other races. There are 22 hospitals in the 16-county area which, with one exception, are tax exempt. The average income and percentage of the population with incomes below the federal poverty guideline within the 16 counties ranges from a low of $12,925 and 21% in Morgan County to a high of $21,875 and 14% in Knox County.According to a recently released study by the Robert Wood Johnson Foundation/ University of Wisconsin Population Health Institute, Knox County residents have the following health indicators that are above the national benchmarks: Knox - TN - National Adult Smoking: 21% - 24% - 15% Adult Obesity: 29% - 31% - 25% Excessive Drinking: 11% - 9% - 8% Teen Birthrate: 39 - 55 - 22 of every 1,000 teenage girls Poor or Fair Health: 16% - 19% - 10%
		Part VI, Line 6: Fort Sanders Regional Medical Center (FSRMC), in conjunction with its parent company, Covenant Health, uses any available surplus of receipts over disbursements to expand and modernize the facility and to support the education of healthcare professionals, both of which serve to improve patient care and serve the unmet needs of the community.Covenant Health's Board of Directors serves as FSRMC's board. It is comprised of independent community leaders with diverse educational and professional backgrounds. The board sets policies and provides oversight of FSRMC.FSRMC maintains an open medical staff, with privileges available to all qualified physicians. Additionally, the hospital operates an active and accessible emergency department that accepts all patients regardless of ability to pay.
		Part VI, Line 7: Fort Sanders Regional Medical Center (FSRMC), as an affiliate of Covenant Health, benefits from the collaboration among all affiliated organizations as well as with other community-based resources to promote quality improvement, patient safety and efficiency of care delivery for the communities served. 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. 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. FSRMC, as a regional referral hospital, provides a wide range of acute care services, many of which are unique in the Covenant system. These services are therefore more easily accessible by other affiliated hospitals and health care organizations through transfer or referral helping to create a seamless continuum of care. The hospital, through its Patricia Neal Rehabilitation Center division, is the only acute inpatient rehabilitation facility in the Covenant system and the largest such provider in the service area. Programming includes specialized services for stroke, brain injury, spinal cord injury and other difficult patient populations with the primary goal of returning the patient home with the greatest gain in functional ability possible. FSRMC also provides hospital-based skilled nursing care which serves as either a bridge back home or as an important step along the continuum of care to other long term care resources.The hospital also provides other important services unique to the Covenant system including high risk obstetrical services and home infusion. The hospital operates the only outpatient diabetes center in the health system which serves a large community-based population with educational, dietary and other supportive medical services that would otherwise be unavailable or difficult to access. Co-located with the diabetes center, the Coumadin clinic serves to educate another vulnerable population as well as to monitor the therapeutic effectiveness of this drug. These services, the diabetes center and the Coumadin clinic, are important to preventing unnecessary hospitalizations through the provision of effective community-based care. FSRMC also provides other extensive outpatient services through its ambulatory infusion centers, physical therapy centers, a wound care center, and its cardiac and pulmonary rehabilitation programs. FSRMC benefits from the access and availability of services within the Covenant system that are not provided by the hospital itself. For example, home health and hospice services are an important part of the continuum of care for a large portion of the hospital's patient population due to the complexity of care provided by the hospital. Also very important are the full range of community mental health and psychiatric hospital services that are available within the system which help support the hospital's emergency room as well as to provide an accessible and efficient pathway for those patients who require such services post discharge from the acute care hospital. The Covenant system also enhances the patient's access to care through the provision of services through a variety of outpatient settings located throughout the service area.FSRMC works closely with the Fort Sanders Foundation which seeks out community support through a variety of fund raising mechanisms. For example, the Fort Sanders Foundation helps to arrange sponsorship for significant fund raising activities of the Patricia Neal Rehabilitation Center division of the hospital including an annual golf tournament that has become the largest single day fundraising event in the state of Tennessee. The proceeds of these events help fund needed equipment and facilities for the center as well as to provide access to the center's services for uninsured or underinsured individuals who are in need of intensive rehabilitation but would otherwise be denied such services due to the lack of resources. The foundation also provides temporary residential services through the Fellowship Center for patients of the hospital and their families that travel to Knoxville to receive needed care but are unable to afford the costs involved.The Fort Sanders Nursing Department at Tennessee Wesleyan College is an important affiliate of FSRMC. The school provides a baccalaureate nursing education helping to alleviate what is a shortage of registered nurses to serve a growing and aging population. It is a continuation of a nursing education tradition of the hospital that began more than eighty years ago. The hospital provides a substantial financial contribution to support the program. Training qualified nursing professionals to serve the current or future needs of the community is an important hospital mission. FSRMC is integrated with its community in a number of ways including its active participation in the development of a Fort Sanders Neighborhood District Long Range Plan. Fort Sanders is a densely populated urban neighborhood in the City of Knoxville. With its proximity to downtown, the location of two regional referral hospitals (FSRMC and East Tennessee Children's Hospital) in its boundaries along with the flagship campus of the University of Tennessee, it provides an ideal location for convenient access for residents and as a gateway to visitors. With these assets, it is imperative that the city and neighborhood leaders work together in order to coordinate quality growth while maintaining the rich character and history that give Fort Sanders its unique identity.

Schedule H (Form 990) 2010

Additional Data

Software ID:
Software Version:

- TIN:

Schedule I
(Form 990)

Department of the Treasury
Internal Revenue Service

Grants and Other Assistance to Organizations,
Governments and Individuals in the United States

Complete if the organization answered "Yes," to Form 990, Part IV, line 21 or 22.
lBullet

Attach to Form 990

OMB No. 1545-0047

2010

Open to Public
Inspection

Name of the organization
Fort Sanders Regional Medical Center

Employer identification number
62-0528340

Part I

General Information on Grants and Assistance

Does the organization maintain records to substantiate the amount of the grants or assistance, the grantees' eligibility for the grants or assistance, and
the selection criteria used to award the grants or assistance? ....................................

Yes No

Describe in Part IV the organization's procedures for monitoring the use of grant funds in the United States.

Part II

Grants and Other Assistance to Governments and Organizations in the United States. Complete if the organization answered "Yes" to
Form 990, Part IV, line 21 for any recipient that received more than $5,000. Check this box if no one recipient received more than $5,000. Use
Part IV and Schedule I-1 (Form 990) if additional space is needed ......................... lBullet

(a) Name and address of organization or government	(b) EIN	(c) IRC Code section if applicable	(d) Amount of cash grant	(h) Purpose of grant or assistance
(1) Thompson Cancer Survival Center1915 White Avenue Knoxville,TN37916	62-1250943	501(c)(3)	75,192	Financial support of Fellowship Center
(2) Fort Sanders Foundation280 Fort Sanders West Blvd Suite 100 Knoxville,TN37922	62-1748601	501(c)(3)	10,000	Fellowship Center maintenance and food fund
(3) Joni and Friends Ministry Knoxville1540 Robinson Road Knoxville,TN37923	62-1458199	501(c)(3)	8,000	Wheels to the World and Family Retreat programs

Enter total number of section 501(c)(3) and government organizations ......................... Bullet Image

Enter total number of other organizations ................................ . Bullet Image

For Privacy Act and Paperwork Reduction Act Notice, see the Instructions for Form 990.

Cat. No. 50055P

Schedule I (Form 990) 2010

Page 2

Part III

Grants and Other Assistance to Individuals in the United States. Complete if the organization answered "Yes" to Form 990, Part IV, line 22.
Use Schedule I-1 (Form 990) if additional space is needed.

(a)Type of grant or assistance	(b)Number of recipients	(c)Amount of cash grant	(d)Amount of non-cash assistance	(e)Method of valuation (book, FMV, appraisal, other)	(f)Description of non-cash assistance
(1) Provided medication and medical supplies to patients who could not be discharged without it but could not pay for it	381		12,691	Book	Prescription medications and infusion supplies
(2) Paid for ambulance service to transfer patients to nursing home	2		773	Book	Transportation
(3) One month rental of medical equipment for patient unable to afford it on discharge	1		2,900	Book	Medical equipment
(4) Nursing scholarships	4	8,800
(5) Provided sign language interpreter for patient following discharge from hospital	1		659	Cost	Sign language interpreters

Part IV

Supplemental Information. Complete this part to provide the information required in Part I, line 2, and any other additional information.

Identifier	Return Reference	Explanation
Procedure for Monitoring Grants in the U.S.:	Part I, Line 2:	Schedule I, Part I, Line 2: The hospital provides for the post-hospitalization transportation and medication needs of its patients when there is a demonstrated need as attested to by a social services worker. The determination is made by Case Management based on the judgment of the social services worker after working with the patient and the patient's family. Assistance is approved on a case-by-case basis by Case Management, and this approval is verified upon approval of any invoices to be paid.

Schedule I (Form 990) 2010

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- TIN:

Schedule J
(Form 990)

Department of the Treasury
Internal Revenue Service

Compensation Information

For certain Officers, Directors, Trustees, Key Employees, and Highest
Compensated Employees
SchJMediumBullet

Complete if the organization answered "Yes" to Form 990,
Part IV, question 23.
SchJMediumBullet

Attach to Form 990. SchJMediumBullet

See separate instructions.

OMB No. 1545-0047

2010

Open to Public Inspection

Name of the organization

Fort Sanders Regional Medical Center

Employer identification number

62-0528340

Part I

Questions Regarding Compensation

Yes

Check the appropiate box(es) if the organization provided any of the following to or for a person listed in Form
990, Part VII, Section A, line 1a. Complete Part III to provide any relevant information regarding these items.

First-class or charter travel Housing allowance or residence for personal use

Travel for companions Payments for business use of personal residence

Tax idemnification and gross-up payments Health or social club dues or initiation fees

Discretionary spending account Personal services (e.g., maid, chauffeur, chef)

If any of the boxes in line 1a are checked, did the organization follow a written policy regarding payment or reimbursement orprovision of all the expenses described above? If "No," complete Part III to explain....

Yes

Did the organization require substantiation prior to reimbursing or allowing expenses incurred by all
officers, directors, trustees, and the CEO/Executive Director, regarding the items checked in line 1a? ....

Yes

Indicate which, if any, of the following the organization uses to establish the compensation of the
organization's CEO/Executive Director. Check all that apply.

Compensation committee Written employment contract

Independent compensation consultant Compensation survey or study

Form 990 of other organizations Approval by the board or compensation committee

During the year, did any person listed in Form 990, Part VII, Section A, line 1a with respect to the filing organization or a related organization:

Receive a severance payment or change-of-control payment? ...............

Participate in, or receive payment from, a supplemental nonqualified retirement plan? ........

Yes

Participate in, or receive payment from, an equity-based compensation arrangement? ........

If "Yes" to any of lines 4a-c, list the persons and provide the applicable amounts for each item in Part III.

Only 501(c)(3) and 501(c)(4) organizations only must complete lines 5-9.

For persons listed in form 990, Part VII, Section A, line 1a, did the organization pay or accrue any
compensation contingent on the revenues of:

The organization? ...........................

Any related organization? .........................

If "Yes," to line 5a or 5b, describe in Part III.

For persons listed in form 990, Part VII, Section A, line 1a, did the organization pay or accrue any
compensation contingent on the net earnings of:

The organization? ...........................

Any related organization? .........................

If "Yes," to line 6a or 6b, describe in Part III.

For persons listed in Form 990, Part VII, Section A, line 1a, did the organization provide any non-fixed
payments not described in lines 5 and 6? If "Yes," describe in Part III ............

Were any amounts reported in Form 990, Part VII, paid or accured pursuant to a contract that was
subject to the initial contract exception described in Regs. section 53.4958-4(a)(3)? If "Yes," describe
in Part III .............................

If "Yes" to line 8, did the organization also follow the rebuttable presumption procedure described in Regulations section 53.4958-6(c)? .........................

For Privacy Act and Paperwork Reduction Act Notice, see the Intructions for Form 990

Cat. No. 50053T

Schedule J (Form 990) 2010

Page 2

Part II

Officers, Directors, Trustees, Key Employees, and Highest Compensated Employees. Use Schedule J-1 if additional space needed.

For each individual whose compensation must be reported in Schedule J, report compensation from the organization on row (i) and from related organizations, described in the
instructions on row (ii). Do not list any individuals that are not listed on Form 990, Part VII.

Note. The sum of columns (B)(i)-(iii) must equal the applicable column (D) or column (E) amounts on Form 990, Part VII, line 1a.

(A) Name		(B) Breakdown of W-2 and/or 1099-MISC compensation			(C) Retirement and other deferred compensation	(D) Nontaxable benefits	(E) Total of columns (B)(i)-(D)	(F) Compensation reported in prior Form 990 or Form 990-EZ
(A) Name		(i) Base compensation	(ii) Bonus & incentive compensation	(iii) Other reportable compensation	(C) Retirement and other deferred compensation	(D) Nontaxable benefits	(E) Total of columns (B)(i)-(D)
(1) Anthony L Spezia	(i) (ii)	0 690,560	0 652,524	0 63,252	0 216,512	0 29,869	0 1,652,717	0 156,680
(2) John T Geppi	(i) (ii)	0 367,693	0 268,268	0 39,158	0 9,800	0 31,680	0 716,599	0 0
(3) Keith Altshuler	(i) (ii)	0 238,746	0 102,297	0 33,636	0 15,034	0 35,859	0 425,572	0 0
(4) David McReynolds	(i) (ii)	133,207 0	19,589 0	25,686 0	11,032 0	24,227 0	213,741 0	0 0
(5) Jennifer L Hanson	(i) (ii)	0 136,999	0 66,125	0 17,418	0 0	0 13,765	0 234,307	0 0
(6) Mary E Dillon	(i) (ii)	162,047 0	0 0	425 0	0 0	4,619 0	167,091 0	0 0
(7) Chad J Brown	(i) (ii)	174,925 0	9,890 0	18,615 0	0 0	12,962 0	216,392 0	0 0
(8) Christopher Norris	(i) (ii)	125,776 0	0 0	10,056 0	8,432 0	15,766 0	160,030 0	0 0
(9) Marianne Oliveira	(i) (ii)	125,932 0	0 0	8,857 0	5,520 0	15,468 0	155,777 0	0 0

Schedule J (Form 990) 2010

Page 3

Part III

Supplemental Information

Complete this part to provide the information, explanation, or descriptions required for Part I, lines 1a, 1b, 4c, 5a, 5b, 6a, 6b, 7, and 8. Also complete this part for any additional information.

Identifier	Return Reference	Explanation
	Part I, Line 1a	Part I, Line 1a: Tax indemnification and gross-up payments are provided to certain executives and managers. These are treated as taxable compensation to the recipient.
	Part I, Line 4b	Part I, Line 4b: Anthony L. Spezia (compensated by Covenant Health, parent organization) $206,712 - current year contribution to 457(f) plan $213,161 - current year distribution from 457(f) plan, of which $156,680 was earned and reported in 2006.
Supplemental Information	Part III	Part I, Line 3: Covenant Health, the parent company of Fort Sanders Regional Medical Center, used one or more of the methods listed in establishing the compensation of Anthony L. Spezia. Please see the statement to Core Part VI, Section B, Line 15a on Schedule O.

Schedule J (Form 990) 2010

Additional Data

Software ID:
Software Version:

- TIN:

SCHEDULE O
(Form 990 or 990-EZ)

Department of the Treasury
Internal Revenue Service

Supplemental Information to Form 990 or 990-EZ

Complete to provide information for responses to specific questions on
Form 990 or to provide any additional information.
MediumBullet

Attach to Form 990 or 990-EZ.

OMB No. 1545-0047

2010

Open to Public
Inspection

Name of the organization

Fort Sanders Regional Medical Center

Employer identification number

62-0528340

Identifier	Return Reference	Explanation
Form 990, Part VI, Section B, line 11		A summary of Fort Sanders Regional Medical Center's 2010 Form 990 was prepared and presented to the Covenant Health Finance Committee and Board of Directors at their 2011 September and October meetings, respectively. This entity is one member of a large, integrated healthcare system which files a total of twelve (12) Form 990s. Prior to filing, the Board of Directors and Finance Committee had access to the 990s of all Covenant Health facilities.
	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 Fort Sanders Regional Medical Center, Covenant Health (Parent Company), and affiliates are set by the Compensation Committee of the Board of Directors, which is comprised of independent members of the Board. The Committee is guided in its decision-making process by an independent, nationally-recognized executive compensation consultant experienced in advising nonprofit hospital boards. Compensation policies for Anthony Spezia and John Geppi are reported on the 2010 Form 990 of Covenant Health, EIN 62-1646734, parent company of Fort Sanders Regional Medical Center. Form 990, Part VI, Section B, Line 15b: Base salaries and annual bonus opportunities for Keith Altshuler, President/CAO, and David McReynolds, VP-Financial Services, ("Key Executives") are set by the Covenant Health CEO or Executive Vice President-Human Resources and/or Executive Vice President-Operations, subject to approval of the Compensation Committee of the Covenant Health Board of Directors ("the Committee"), after review by and discussion with the executive compensation consultant ("the consultant") to insure that total compensation for each executive is reasonable and within a fair market value range. Salary ranges for each executive position are based upon the recommendations of the consultant made after comparison with similar jobs in similar size health systems across the nation. Bonuses are recommended by the CEO and approved by the Committee conditioned upon receipt of a written opinion from the consultant that total compensation for each Key Executive is reasonable and consistent with fair market value. Base salaries are initially targeted at midpoint and vary according to the individual's experience, market conditions and competition. Annual bonuses are designed to award 0-35% for the CAOs and 0-20% for the VP-Financial Services of base salary based upon system performance and accomplishment of certain targets established by the CEO.
	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 Nationally Recognized Municipal Securities Information Repositories. Any member of such a repository has access to these financial statements. In addition, Fort Sanders Regional Medical Center files a Joint Annual Report containing financial information with the Tennessee Department of Health.
Contact Addresses for Officers, Directors, Etc.:	Form 990, Part VI, Section A, Line 9 and Part VII	Anthony L. Spezia Covenant Health 100 Ft Sanders West Blvd. Knoxville, TN 37922 John T. Geppi, Francis Olmstead, and all Directors Covenant Health 1410 Centerpoint Blvd., Suite 401 Knoxville, TN 37932 Chad Brown 1606 Kilmer Drive Knoxville, TN 37922 All other persons listed in Part VII, Section A may be contacted at the organization's address.
	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 Fort Sanders Regional Medical Center is a member, as a whole. The hours these individuals devoted to the system in 2010 are reported on Covenant Health's Form 990, Part VII.
Changes in Net Assets or Fund Balances:	Form 990, Part XI, line 5:	Intracompany Eliminations -82,041. Total to Form 990, Part XI, Line 5: -82,041.
	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.
	Form 990, Part III, Line 1 - Report to the Community:	Service to the people and communities of East Tennessee is the cornerstone of the mission of Covenant Health, hereinafter referred to as "the System,' a community-owned health system which includes acute care hospitals, outpatient facilities and clinics, and numerous specialty services. The System's mission, "we serve the community by improving the quality of life through better health," has been the foundation of the services and programs offered by the System and its member organizations since it was formed through the consolidation of Fort Sanders Health System in Knoxville and MMC Healthcare System in Oak Ridge in 1996. The System is a community-owned healthcare system and provides comprehensive health services throughout East Tennessee. Headquartered in Knoxville, Tennessee, the System includes seven acute care hospitals with a total of more than 1,700 licensed beds, as well as numerous outpatient services and clinics. The System also includes specialty providers of behavioral, oncology, and rehabilitation services, along with home care, physician clinics, community wellness programs and managed care products and services. The System has more than 1,000 affiliated physicians and 9,000 employees. Covenant Health, a tax-exempt entity pursuant to section 501(c)(3) of the Internal Revenue Code, is the parent company and sole member of several controlled entities: Fort Loudoun Medical Center, Fort Sanders Regional Medical Center, LeConte Medical Center, Methodist Medical Center of Oak Ridge, Morristown-Hamblen Hospital Association, Parkwest Medical Center, Peninsula, a Division of Parkwest Medical Center, Roane Medical Center, Thompson Cancer Survival Center, Covenant HomeCare and Fort Sanders Perinatal Center. These entities were established to provide healthcare services primarily to East Tennesseans in the surrounding 16-county area. Operating as an integrated network of health services, 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 history of the System demonstrates a clear and consistent charitable purpose: the provision of healthcare services to all residents of the community without regard to age, race, gender, creed, national origin, ability to pay, or physical or mental handicap. Beyond the services documented in this report are countless acts of generosity by employees that will never be completely captured and reported, nor will they be forgotten by those who benefited from them. One of the most tangible expressions of the System's charitable purpose is the provision of care to people unable to pay. The System embraces its purpose and strives to grow the types of services not provided by other area health care providers; examples of such services include but are not limited to services provided by Peninsula, a Division of Parkwest, which provides inpatient and outpatient behavioral health services, and the Hope Center, which provides comprehensive support services for patients with HIV/AIDS and other serious illnesses, and their families and caregivers. The System provides medically necessary services to all people, regardless of their ability to pay. Patients who fall below 300 percent of the federal poverty income guidelines for a 12-month period, who are unable to pay, and who have exhausted all sources of payment assistance may be eligible for charity care. According to policy, patients whose annual income falls between 0-200% of federal poverty guidelines receive 100% discount while those whose income is between 201-300% of the federal poverty guidelines receive a 70% discount. For those who do not fall below the guidelines but are facing difficult economic circumstances, ability to pay is determined on a case-by-case basis. In particular, cases involving serious illness and/or unusually high-cost care are individually evaluated, and expectation of payment by the System is adjusted to recognize the reasonable ability of the individual patient to pay for services received. For the year ending December 31, 2010, the System provided services under the previously stated policy which resulted in significant losses to the System. Both inpatients and outpatients were provided care under the aforementioned policy. No patient was refused necessary medical care on the basis of his or her ability to pay. In addition to the level of services identified above, the System is an active participant in the State of Tennessee TennCare program. The System is the area's largest TennCare provider of services to residents of East Tennessee. The TennCare program seeks to provide payment for healthcare services to individuals who meet certain financial and categorical requirements. Financial requirements include evaluation of both assets and income. TennCare program reimbursement rates are substantially below Medicare reimbursement rates. In addition to the provision of care without expectation of payment or the provision of care to TennCare-eligible people at rates substantially below charges, the System provided services to people covered under the federal Medicare program. Medicare recipients were the largest single payor classification of patients served by the System. The payment rate for inpatient services was on a per case rate, calculated based on the diagnostic-related group into which the patient was categorized, coupled with other factors related to area wage rates, capital costs and other variables. Outpatient services were reimbursed on a pre-determined case rate. Moreover, the System works diligently throughout the year to achieve its mission by supporting community health education and outreach programs. The System underwrites the cost of community screenings, health fairs, outreach programs for seniors, outdoor fitness programs, community exercise classes, support groups for new parents and other specific populations, smoking cessation classes, and local wellness education programs. Notable examples of these programs include: Covenant Health Check, a multi-county annual screening event, now in its 27th year, which has served more than 150,000 people; Body Works, a multi-location exercise program for adults; Passport, an organization promoting health and active lifestyles for adults 50 and older; Monthly Lunch 'n Learns and Health Nights in Knox and surrounding counties; Covenant Health at the Mall, freestanding health information kiosks at two local malls; Community fitness events such as the Covenant Health Knoxville Marathon and a bike ride and foot race held in conjunction with Knoxville's Dogwood Arts Festival; Wellness programs, support groups, and outreach services sponsored by Covenant Health's member hospitals. The system also funds two "hospitality house" outreach programs, one at Fort Sanders Regional Medical Center in Knoxville, and one at Methodist Medical Center in Oak Ridge. These facilities provide temporary "homes away from home" for non-local patients and caregivers who are receiving ongoing medical treatment care at Covenant Health member organizations. The System is committed to education in order to prepare qualified nurses and other healthcare workers for the future, and to provide continuing education for current healthcare professionals. This support is shown in multiple ways, including support of Tennessee Wesleyan College-Fort Sanders Nursing, a baccalaureate level nursing education program offered under the auspices of Tennessee Wesleyan College in Athens, Tennessee, with classroom and clinical training opportunities offered in Knoxville and at various Covenant Health facilities. The System also provides clinical training rotations at its hospitals and member facilities for students in area nursing and ancillary health education programs. Additional program support and scholarships are given to students and to schools providing healthcare education throughout the area. Special programs are offered to high school and middle school students who are interested in careers in healthcare. Continuing education opportunities are provided for physicians, nurses, and other healthcare professionals on a variety of topics. During 2010, the System subsidized services related to sports medicine, services for women and children, and behavioral health assessments. Subsidized services are those services which are typically provided to meet an identified community need. If no longer offered, the services would either be unavailable in the area or fall to the responsibility of the government or another not-for-profit system to provide.
		The system also designated specific amounts as Physician subsidies to support the recruitment by the System and its affiliates of physicians and other health professionals for areas underserved or specialties not adequately served in the community. High populations of Tenncare patients and uninsured patients typically reside in these areas. The System supported the important work of many unaffiliated organizations and charities during 2010. While the principal community donation by the System was in the area of indigent care, donations within the context of the organization's established charitable contribution policy were also made to other causes. More than 50 organizations received charitable contributions from Covenant Health and/or its member organizations in 2010, including: American Cancer Society American Heart Association Catholic Charities East Tennessee Children's Hospital Great Schools Partnership Holston Home for Children Innovation Valley Knoxville Track Club (for sponsorship of Covenant Health Knoxville Marathon) Senior Services Contributions and Sponsorships Susan G. Komen Foundation University of Tennessee Variety Children's Charity of East Tennessee Wellness Community Donations also included support of medical mission trips to Guatemala and Haiti. Community Building activities included cash, in-kind donations, and budgeted expenditures for the development of community health programs and partnerships. These activities include physical improvements and housing, economic development and support system enhancements like disaster readiness, mentoring programs, and youth asset development initiatives. In 2010 the System provided Community Building support to many organizations, including but not limited to: Boys & Girls Club Emerald Youth Foundation Family Promise of Knoxville Interfaith Health Clinic Knoxville Academy of Medicine Project Access Roane Alliance Second Harvest Food Bank United Way Wee Course Classic In a separate but related donation category, in 2010 employees of the System also contributed financially to the System's United Way drive and Covenant Health's We Care campaign, which raises funds for charitable services provided by the System such as patient assistance with medication costs, chaplain's fund for employees in need, hospitality houses for patients from outside the area, and nursing scholarship programs. The volunteer programs at the System's acute care organizations are active and vital parts of the System's success. Volunteers donate time and service to Fort Loudoun Medical Center, Fort Sanders Regional Medical Center, LeConte Medical Center, Methodist Medical Center, Morristown-Hamblen Hospital Association, Parkwest Medical Center, Thompson Cancer Survival Center, and Covenant HomeCare. At the acute care facilities, volunteers include adults, college students and teenagers working in a variety of settings such as inpatient and outpatient facility departments, patient reception areas, gift shops, fellowship centers, etc. Funds raised by volunteers are donated for hospital equipment, supplies and special projects, as well as to meet charitable community needs.

For Paperwork Reduction Act Notice, see the Instructions for Form 990 or 990-EZ.

Cat. No. 51056K

Schedule O (Form 990 or 990-EZ) 2010

Additional Data

Software ID:
Software Version:

- TIN:

SCHEDULE R
(Form 990)

Department of the Treasury
Internal Revenue Service

Related Organizations and Unrelated Partnerships

Complete if the organization answered "Yes" to Form 990, Part IV, line 33, 34, 35, 36, or 37.
MediumBullet

Attach to Form 990. MediumBullet

See separate instructions.

OMB No. 1545-0047

2010

Open to Public Inspection

Name of the organization

Fort Sanders Regional Medical Center

Employer identification number

62-0528340

Part I

Identification of Disregarded Entities (Complete if the organization answered "Yes" on Form 990, Part IV, line 33.)

(a) Name, address, and EIN of disregarded entity	(b) Primary activity	(c) Legal domicile (state or foreign country)	(d) Total income	(e) End-of-year assets	(f) Direct controlling entity

Part II

Identification of Related Tax-Exempt Organizations (Complete if the organization answered "Yes" on Form 990, Part IV, line 34 because it had one or more related tax-exempt organizations during the tax year.)

(a) Name, address, and EIN of related organization	(b) Primary activity	(c) Legal domicile (state or foreign country)	(d) Exempt Code section	(e) Public charity status (if section 501(c)(3))	(f) Direct controlling entity	(g) Section 512(b)(13) controlled organization
(a) Name, address, and EIN of related organization	(b) Primary activity	(c) Legal domicile (state or foreign country)	(d) Exempt Code section	(e) Public charity status (if section 501(c)(3))	(f) Direct controlling entity	Yes	No
(1) Covenant Health 1410 Centerpoint Blvd Suite 401 Knoxville,TN379321985 62-1646734	Supporting organization	TN	501(c)(3)	Line 11b, II	N/A		No
(2) Parkwest Medical Center 9352 Park West Boulevard Knoxville,TN37923 58-1897274	Acute care hospital & behavioral services	TN	501(c)(3)	Line 3	Covenant Health		No
(3) Methodist Medical Center 990 Oak Ridge Turnpike Oak Ridge,TN37830 62-0636239	Acute care hospital	TN	501(c)(3)	Line 3	Covenant Health		No
(4) LeConte Medical Center 742 Middle Creek Road Sevierville,TN37862 62-1114867	Acute care hospital	TN	501(c)(3)	Line 3	Covenant Health		No
(5) Roane County Medical Center dba Roane Medical Center 412 Devonia Street Harriman,TN37748 68-0673354	Acute care hospital	TN	501(c)(3)	Line 3	Covenant Health		No
(6) Fort Loudoun Medical Center 550 Fort Loudoun Medical Center Dr Loudon,TN37772 62-1373691	Acute care hospital	TN	501(c)(3)	Line 3	Covenant Health		No
(7) Thompson Cancer Survival Center 1915 White Avenue Knoxville,TN37916 62-1250943	Cancer treatment facility	TN	501(c)(3)	Line 3	Covenant Health		No
(8) Thompson Oncology Group 1915 White Avenue Knoxville,TN37916 62-1619239	Oncology services	TN	501(c)(3)	Line 3	Thompson Cancer Survival Center		No
(9) Covenant Homecare 3001 Lake Brook Blvd Suite 101 Knoxville,TN37909 62-1623114	Home health services	TN	501(c)(3)	Line 9	Covenant Health		No
(10) Fort Sanders Perinatal Center 501 19th Street Suite 304 Knoxville,TN37916 04-3760551	High risk obstetrical services	TN	501(c)(3)	Line 3	Fort Sanders Regional Medical Center	Yes
(11) Fort Sanders Foundation 280 Fort Sanders West Blvd Ste 100 Knoxville,TN37922 62-1748601	Fundraising and development	TN	501(c)(3)	Line 11a, I	Covenant Health		No
(12) Morristown-Hamblen Hospital Assoc dba M-H Healthcare System 908 W 4th North St Morristown,TN37814 62-0545814	Acute care hospital	TN	501(c)(3)	Line 3	Covenant Health		No

For Privacy Act and Paperwork Reduction Act Notice, see the Instructions for Form 990.

Cat. No. 50135Y

Schedule R (Form 990) 2010

Page 2

Part III

Identification of Related Organizations Taxable as a Partnership (Complete if the organization answered "Yes" on Form 990, Part IV, line 34 because it had one or more related organizations treated as a partnership during the tax year.)

(a) Name, address, and EIN of related organization	(b) Primary activity	(c) Legal domicile (state or foreign country)	(d) Direct controlling entity	(f) Share of total income	(g) Share of end-of-year assets	(h) Disproprtionate allocations?		(i) Code VUBI amount in box 20 of Schedule K-1 (Form 1065)	(j) General or managing partner?
(a) Name, address, and EIN of related organization	(b) Primary activity	(c) Legal domicile (state or foreign country)	(d) Direct controlling entity	(f) Share of total income	(g) Share of end-of-year assets	Yes	No	(i) Code VUBI amount in box 20 of Schedule K-1 (Form 1065)	Yes	No
(1) Fort Sanders Endoscopy Center LLC 100 Fort Sanders West Blvd Knoxville,TN37922	Inactive - dissolved October 2010	TN	N/A
(2) Fort Sanders OP Cardiac Catheterization Ctr LLC 100 Fort Sanders West Blvd Knoxville,TN37922	Inactive - dissolved October 2010	TN	N/A
(3) Parkwest Endoscopy Center LLC 100 Fort Sanders West Blvd Knoxville,TN37922	Inactive - dissolved October 2010	TN	N/A
(4) Endoscopy Center of Oak Ridge LLC 988 Oak Ridge Turnpike Ste 200 Oak Ridge,TN37830 62-1667358	Outpatient medical facility	TN	N/A
(5) Fort Sanders West OP Surgery Ctr LLC 210 Fort Sanders West Blvd Ste 106 Knoxville,TN37922 62-1366907	Outpatient surgery center	TN	N/A
(6) Fort Sanders West Associates 280 Fort Sanders West Blvd Ste 214 Knoxville,TN37922 62-1384171	Building ownership	TN	N/A
(7) Associates of the Meridian Health Outpatient Surgery Ctr LLC 908 W 4th North St Morristown,TN37814 86-1167487	Outpatient surgery center	TN	N/A

Part IV

Identification of Related Organizations Taxable as a Corporation or Trust (Complete if the organization answered "Yes" on Form 990, Part IV, line 34 because it had one or more related organizations treated as a corporation or trust during the tax year.)

(a) Name, address, and EIN of related organization	(b) Primary activity	(c) Legal domicile (state or foreign country)	(d) Direct controlling entity	(e) Type of entity (C corp, S corp, or trust)
(1) Fortress Corporation 280 Fort Sanders West Blvd Suite 21 Knoxville,TN37922 62-1308885	Management company	TN	N/A	C
(2) KASC Acquisition Company Inc 1410 Centerpoint Blvd Suite 401 Knoxville,TN37932 26-3400984	Real estate holdings	TN	N/A	C
(3) Covenant Medical Management Inc 280 Fort Sanders West Blvd Suite 20 Knoxville,TN37922 62-1282917	Physician practice management	TN	N/A	C
(4) Knoxville Heart Group 1819 Clinch Ave Suite 108 Knoxville,TN37916 27-1528941	Cardiology medical practice	TN	N/A	C
(5) Morristown-Hamblen Health Services Inc 908 W 4th North St Morristown,TN37814 62-1588521	Inactive - dissolved 2/5/2011	TN	N/A	C

Schedule R (Form 990) 2010

Page 3

Part V

Transactions With Related Organizations (Complete if the organization answered "Yes" on Form 990, Part IV, line 34, 35, 35A, or 36.)

Note. Complete line 1 if any entity is listed in Parts II, III or IV.

Yes

1 During the tax year, did the orgranization engage in any of the following transactions with one or more related organizations listed in Parts II-IV?

a Receipt of (i) interest (ii) annuities (iii) royalties (iv) rent from a controlled entity . . . . . . . . . . . . . . . . . . . . . . .

Yes

b Gift, grant, or capital contribution to other organization(s) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Yes

c Gift, grant, or capital contribution from other organization(s) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Yes

d Loans or loan guarantees to or for other organization(s) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

e Loans or loan guarantees by other organization(s) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

f Sale of assets to other organization(s) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

g Purchase of assets from other organization(s) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

h Exchange of assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

i Lease of facilities, equipment, or other assets to other organization(s) . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Yes

j Lease of facilities, equipment, or other assets from other organization(s) . . . . . . . . . . . . . . . . . . . . . . . . . . .

Yes

k Performance of services or membership or fundraising solicitations for other organization(s) . . . . . . . . . . . . . . . . . . . . . .

l Performance of services or membership or fundraising solicitations by other organization(s) . . . . . . . . . . . . . . . . . . . . . .

m Sharing of facilities, equipment, mailing lists, or other assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Yes

n Sharing of paid employees . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Yes

o Reimbursement paid to other organization for expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Yes

p Reimbursement paid by other organization for expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Yes

q Other transfer of cash or property to other organization(s) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Yes

r Other transfer of cash or property from other organization(s) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Yes

If the answer to any of the above is "Yes," see the instructions for information on who must complete this line, including covered relationships and transaction thresholds.

(a) Name of other organization	(b) Transaction type(a-r)	(c) Amount involved	(d) Method of determining amount involved
(1) Fort Sanders Perinatal Center	A	439,835	FMV
(2) Fort Sanders Perinatal Center	N	73,947	Cost
(3) Fort Sanders Perinatal Center	O	52,831	Cost
(4) Fort Sanders Perinatal Center	P	63,777	Cost
(5) Knoxville Heart Group	A	205,677	FMV
(6) Knoxville Heart Group	N	74,876	Cost
(7) Knoxville Heart Group	O	520,208	Cost
(8) Knoxville Heart Group	P	48,392	Cost

Schedule R (Form 990) 2010

Page 4

Part VI

Unrelated Organizations Taxable as a Partnership (Complete if the organization answered "Yes" on Form 990, Part IV, line 37.)

Provide the following information for each entity taxed as a partnership through which the organization conducted more than five percent of its activities (measured by total assets or gross revenue) that was not a related organization. See instructions regarding exclusion for certain investment partnerships.

(a) Name, address, and EIN of entity	(b) Primary activity	(c) Legal domicile (state or foreign country)	(d) Are all partners section 501(c)(3) organizations?		(e) Share of end-of-year assets	(f) Disproprtionate allocations?		(g) Code VUBI amount in box 20 of Schedule K-1 (Form 1065)	(h) General or managing partner?
(a) Name, address, and EIN of entity	(b) Primary activity	(c) Legal domicile (state or foreign country)	Yes	No	(e) Share of end-of-year assets	Yes	No	(g) Code VUBI amount in box 20 of Schedule K-1 (Form 1065)	Yes	No

Schedule R (Form 990) 2010

Page 5

Part VII

Supplemental Information

Complete this part to provide additional information for responses to questions on Schedule R (see instructions).

Identifier	Return Reference	Explanation

Additional Data

Software ID:
Software Version:

1	Briefly describe the organization’s mission or most significant activities: FSRMC provides quality hospital and other health services in the Knoxville metro area. (see Sch. O)Fort Sanders Regional Medical Center is located in the Fort Sanders community of downtown Knoxville, Tennessee, and is a member of the Covenant Health system. It serves as a regional referral center, where other hospitals send their most difficult cases. Fort Sanders Regional includes a full-service acute care hospital with 517 beds serving many specialty areas, the 24-bed Fort Sanders Transitional Care Unit, the Patricia Neal Rehabilitation Center, and specialized outpatient centers. In early 2011, Fort Sanders Regional opened its Gamma Knife Center, which houses the first advanced system in Tennessee and is one of only 30 in the United States.
2	Check this box
3	Number of voting members of the governing body (Part VI, line 1a) ....	3	21
4	Number of independent voting members of the governing body (Part VI, line 1b) ....	4	16
5	Total number of individuals employed in calendar year 2010 (Part V, line 2a) ...	5	2,407
6	Total number of volunteers (estimate if necessary) ....	6	1,672
7a	Total unrelated business revenue from Part VIII, column (C), line 12 ..	7a	2,594,820
b	Net unrelated business taxable income from Form 990-T, line 34 ..	7b	123,534

		Prior Year	Current Year
8	Contributions and grants (Part VIII, line 1h) .........	682,385	633,568
9	Program service revenue (Part VIII, line 2g) .........	284,927,809	304,282,711
10	Investment income (Part VIII, column (A), lines 3, 4, and 7d ) ....	24,664	-49,117
11	Other revenue (Part VIII, column (A), lines 5, 6d, 8c, 9c, 10c, and 11e)	8,679,125	8,291,808
12	Total revenue—add lines 8 through 11 (must equal Part VIII, column (A), line 12)...................	294,313,983	313,158,970
13	Grants and similar amounts paid (Part IX, column (A), lines 1–3 )...	431,499	127,069
14	Benefits paid to or for members (Part IX, column (A), line 4) ....	0	0
15	Salaries, other compensation, employee benefits (Part IX, column (A), lines 5–10)	93,672,649	96,421,575
16a	Professional fundraising fees (Part IX, column (A), line 11e)....	0	0
b	Total fundraising expenses (Part IX, column (D), line 25) 0
17	Other expenses (Part IX, column (A), lines 11a–11d, 11f–24f)....	182,721,832	201,721,142
18	Total expenses. Add lines 13–17 (must equal Part IX, column (A), line 25)	276,825,980	298,269,786
19	Revenue less expenses. Subtract line 18 from line 12......	17,488,003	14,889,184
		Beginning of Current Year	End of Year
20	Total assets (Part X, line 16)............	137,057,426	156,856,678
21	Total liabilities (Part X, line 26)............	39,671,938	44,664,047
22	Net assets or fund balances. Subtract line 21 from line 20 .....	97,385,488	112,192,631

Sign Here

	Signature of officer	Date

	Type or print name and title.

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4a	(Code: ) (Expenses $ 61,416,758 including grants of $ ) (Revenue $ 65,404,479 )
	Orthopedics, Neurology and Rehabilitation:The Ortho/Neuro/Rehab program at Fort Sanders Regional Medical Center is a comprehensive program of inpatient and outpatient services designed to restore optimal function and independence to individuals who are impaired due to orthopedic or neurological illness or injury. More information is on Schedule O.Orthopedics, Neurology and Rehabilitation: Expenses - $61,416,758; Revenue - $65,404,479.From hip, knee and shoulder replacement to other commonly performed orthopedic procedures like hand, foot and ankle and spine and back surgery, Fort Sanders Regional (FSR) possesses a commitment to service excellence and to improving the patient experience in every way. Its commitment is reflected in the comprehensive care provided orthopedic surgery patients, including: * In-depth education that fully prepares patients for surgery and recovery; * Infection prevention protocols that minimize infection risks; * Experienced, specialized surgeons and operating room teams that use state-of-the-art techniques; * A dedicated inpatient nursing unit staffed by expert nurses and caregivers who know how to help patients recover from orthopedic surgery; and * A wide array of inpatient and outpatient rehabilitation and therapy services to help patients return to an active lifestyle.At the FSR Joint and Spine Center, patients undergoing knee or hip replacement surgeries are not treated as "sick" but as healthy adults undergoing a procedure that will allow them to return to an active life. The goal is to get patients out of bed and moving as quickly as possible. This is accomplished through education, surgical expertise and intense physical therapy. Patients are provided information about joint replacement and are challenged to take the lead in their recovery. Patients go through the program with a family member, who is designated as the patient's "Coach" and is taught how to assist the patient at home.Outpatient rehabilitation services are provided on the hospital campus and at a network of community based outpatient therapy centers. These centers offer a wide variety of therapy services, many of which are unique in the community. They include: * Physical, occupational and speech therapy, * Wound care, * Aquatic therapy, * Lymphedema treatment, * Low-vision and adaptive driving programs, * Certified hand therapy, * Vestibular rehabilitation, and * Functional capacity evaluations.In 2010 the hospital had 10,642 Wound Care Center patient visits and 71,052 Outpatient Physical Therapy visits.Conditions and diseases of the brain, spinal cord and nervous system can affect how people walk, talk, comprehend and function. FSR's neurologists specialize in the diagnosis and treatment of epilepsy, tumors, stroke, Alzheimer's disease, dementia, Parkinson's disease and multiple sclerosis. As a Neuro-Spine Center of Excellence, FSR has made the commitment to offer the latest advancements in neurology, neurosurgery, spine surgery, and neuro-interventional radiology. Whether a patient needs medical, surgical or neuro-radiological intervention, the goal is to provide the most appropriate care to optimize patient outcome. In 2010 there were 298 interventional neuro-radiology cases - made up of 150 aneurysm coilings, 136 IVC filter placements, and 12 stroke treatments.At the Fort Sanders Sleep Disorders Center, the area's first accredited sleep center, neurologists work with patients who suffer from a host of sleep/wake disorders including sleep apnea, insomnia, narcolepsy, and restless leg syndrome. The Center saw 788 patients in 2010.Fort Sanders' neurosurgeons provide surgical intervention for brain tumors, aneurysms and hemorrhages, as well as a host of spine conditions. They also provide surgical relief for issues caused by nerve and muscle diseases, carpal tunnel syndrome, chronic back pain and conditions resistant to medical management, like Parkinson's disease.An example of the hospital's commitment to state-of-the-art technology is the StealthStation Treon, which helps guide Fort Sanders neurosurgeons through a variety of operations, including neurological and spinal procedures. This innovative 3D-imaging system uses global positioning technology to give physicians real time views inside the body, without radiation. This innovative technology allows less invasive operations and helps avoid brain and nerve damage.Strokes are the third leading cause of death in the United States and affect more than 795,000 Americans each year. As a Stroke Center of Excellence, the care provided by FSR and Patricia Neal Rehabilitation Center physicians and staff utilizes state-of-the-art diagnostic, treatment and rehabilitation modalities. The hospital holds a Primary Stroke Center certification from the Joint Commission (one of only a handful in the state of Tennessee) as well three separate stroke accreditations from the Commission on the Accreditation of Rehabilitation Facilities (CARF). In 2010 the hospital's Core Measure compliance related to strokes was 98.56%, and it had 369 stroke patient admissions.FSR was the first facility in the area to combine CT and bi-plane angiography with a full-time neuro-interventional radiologist to provide our region with new, minimally-invasive options for treating stroke, aneurysms, and other vascular diseases in the brain. With this system, neuro-interventional radiology procedures can be performed that would have previously required surgery and an extended hospital stay or would not have been options for some patients.Bi-plane technology improves imaging and resolution creating comprehensive 3D views of the blood vessels in the brain. Having a more precise picture of an abnormality makes it easier to diagnose and repair. A team of specialized technologists and nurses work to assist the performing radiologist with each procedure. All technologists are certified by the American Association of Radiological Technologists. Micro-catheters are inserted through the groin and then guided to the area of treatment to administer medications, coil aneurysms or retrieve clots. These new procedures often involve very short hospital stays, all while keeping radiation exposure to a safe minimum and avoiding major surgery.The Patricia Neal Rehabilitation Center is East Tennessee's recognized leader in helping stroke, spinal cord, brain injury, orthopedic and cancer patients rebuild their lives through the delivery of optimal rehabilitation services. Opened in 1978 as an integral part of the Ortho/Neuro/Rehab program at FSR, the PNRC offers a comprehensive team approach to care. Physical, occupational, recreational, behavioral medicine and speech language therapists work with nurses and physiatrists - doctors whose specialty is physical medicine and rehabilitation. This team develops the best individual care plan to return patients to their recovery potential as quickly as possible. Rehabilitation nurses and other specialists also educate patients, teaching them self-care skills to function as well as possible upon returning home. The Center holds 15 separate accreditations from the Commission on the Accreditation of Rehabilitation Facilities (CARF) and provides a comprehensive array of inpatient rehabilitation services that would otherwise be unavailable in the community. FSR is committed to maintaining access to unique services such as those at the Patricia Neal Rehabilitation Center. Through donations and other community support, the hospital, through the Fort Sanders Foundation, provides scholarships to allow patients with limited resources access to the rehab center's services.The Patricia Neal Innovative Recreation Cooperative (IRC), a service of the PNRC, was created in 1994 to meet the needs of individuals who have suffered a life-changing illness or injury. The program was designed to be part of the continuum of care in the rehabilitation process. Its scope is to host clinics under an umbrella of education and awareness: education to teach leisure skills to enhance quality of life in a safe environment and awareness to heighten the understanding of disabilities to the community. In its existence, the IRC has seen over 7,000 participants and volunteers. The goal is to remove all the barriers to develop each individual's right to self-directed leisure for a healthier lifestyle. This program is supported by community donations, grants and a hospital subsidy.Older adults are a significant portion of the patient population in Ortho/Neuro/Rehab. FSR is a NICHE (Nurses Improving Care for Health System Elders) site committed to special health care for older adults and was the first NICHE-certified facility in the East Tennessee region. Care is provided to help prevent complications such as skin breakdowns, falls/ injuries, pain, acute confusion, and the loss of strength and mobility.

4b	(Code: ) (Expenses $ 48,030,389 including grants of $ ) (Revenue $ 51,582,673 )
	Surgical Services: Quality of care and patient safety are the top priorities at Fort Sanders Regional. The quality of care at Fort Sanders Regional has been recognized by the Joint Commission that inspects hospitals, the US Department of Health and leading independent standards associations. The 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 medicines at the right time on the day of surgery. Success in preventing infection is measured by core measures which are compared to the national and state average. Fort Sanders Regional's core measures rank above both state and national averages on all measures. More information is on Schedule O.Surgical Services: Expenses: $48,030,389 Revenue: $51,582,673Fort Sanders Regional Medical Center has the capability to provide extensive surgical procedures for patients in East Tennessee. The surgery program offers patients numerous options, utilizing the latest surgical technology available in addition to traditional surgical options such as advanced laparoscopy and day surgery procedures. Nearly 10,000 surgeries were performed at Fort Sanders Regional in 2010.As an adjunct to its goal to provide an array of minimally invasive surgical procedures, Fort Sanders Regional introduced the da Vinci Robotics system to East Tennessee in December 2004. Since that time, the hospital has used the system to perform: * More than 350 prostatectomies, * The first robotically-assisted lung removal surgery in the state, * One of the first robotically-assisted gynecological procedures in the area and, most recently, * The first cardiac single valve replacement in the region.Through robotics technology, surgeons are given greater precision and control. The surgeon's hand and finger movements are performed on a computer through tiny incisions. The small incisions mean less pain, a shorter hospital stay and a quicker recovery for patients. For cardiac patients, the use of the robotics system can prevent the need to crack open the patient's chest bone, again reducing recovery times and complications.In addition to robotics technology, Fort Sanders Regional surgeons perform numerous procedures using a laparoscope. Laparoscopic surgery has become the procedure of choice for many patients and surgeons in the East Tennessee area because it offers less scarring, less pain and a more rapid recovery. A laparoscope is a narrow, tube-like instrument with a camera and light on the tip. The camera is connected to a television screen, giving surgeons a magnified view of the treatment area. The laparoscope is designed to allow physicians to see tissue and organs inside the abdominal cavity without fully opening it with a surgical incision. For most procedures, the scope is inserted either through the abdominal wall or belly button. Long surgical instruments are inserted through the scope to repair medical problems. Most laparoscopic surgeries are performed on an outpatient basis, with patients in the hospital less than 24 hours. Recovery time is greatly minimized with most patients returning to work in just three to five days.Fort Sanders Regional Medical Center supports surgical procedures in multiple specialty areas: * Cardiothoracic Surgery * Cardiovascular Surgery * Colon/Rectal Surgery * Day Surgery * General Surgery * Neurosurgery * Orthopedic Surgery * Plastic Surgery * Surgical Oncology * Thoracic Surgery * Vascular SurgeryFort Sanders Regional is particularly strong in three of these areas: cardiovascular surgery, vascular surgery, and surgical oncology.The cardiovascular surgery program includes surgical procedures to correct abnormalities within the heart and/or great vessels. Some of the more common procedures are coronary artery bypass, valve repair or replacement, correction of congenital heart defects and repair of aortic aneurysms. As part of the facility's Cardiology Center of Excellence, Fort Sanders Regional is the only facility in the region to have both a surgical and catheter based approach to treating atrial fibrillation. The hospital had 1,098 cardiac surgery cases in 2010.Vascular surgery is the branch of surgery that involves the repair of arteries and veins, as well as treatments for diseases of the peripheral vascular system. Common procedures performed by vascular surgeons include: abdominal aortic aneurysm repair, varicose veins, stenting of peripheral vessels, and more. The hospital had 812 vascular surgery cases in 2010.Surgical oncology is the branch of surgery which focuses on the surgical management of cancer. The medical staff at Fort Sanders Regional Medical Center includes general surgical oncologists as well as thoracic surgical oncologists, gynecologic oncologists and other sub-specialists that specialize in treating cancer patients.

4c	(Code: ) (Expenses $ 34,641,673 including grants of $ ) (Revenue $ 35,583,497 )
	Oncology Services: Fort Sanders Regional Medical Center features extensive inpatient and outpatient oncology care provided by exceptional oncologists who practice throughout the Knoxville area. In 2010 there were 1,618 admissions to the oncology unit with 9,504 patient days. More information is on Schedule O.Oncology Services: Expenses - $34,641,673; Revenue - $35,583,497.The Oncology Center of Excellence at Fort Sanders Regional offers a comprehensive approach to patient care which minimizes patient disruption and maximizes clinical quality and efficiency. Cancer patients and their families can be assured their loved ones will receive the most complete and exceptional oncology care available. In Fort Sanders Regional's specialized oncology unit, all staff team members receive specialized oncology education. Chemotherapy-trained nurses work with oncologists to make sure each patient receives the correct chemotherapy drug, in the right dosage cycle, every time. Within the Oncology Center of Excellence, many of the nurses are also oncology certified at a national level. They have dedicated more than 1,000 hours to caring for cancer patients and have successfully completed a national certification examination demonstrating their specialized knowledge in this field. Staff attends special lectures and conferences hosted by local and national medical oncologists and radiation oncologists to keep up with the newest innovative treatments available.Fort Sanders Regional's emphasis on oncology knowledge and expertise isn't just limited to nurses. Each staff member on the oncology unit is also uniquely trained in the care of cancer patients. The oncology team includes a dedicated oncologic pharmacist, dietician, social worker, and RN case manager. This team communicates regularly to ensure the excellent patient care from admission to discharge. From the hospital's dieticians, to its pharmacists and radiologists, and to its housekeeping staff, Fort Sanders Regional has done a lot of work to provide oncology education to every employee who may come in contact with our patients. By completing this 360 degree education we provide better patient care. Safety is the number one priority in the Oncology Center of Excellence. Due to the nature and potency of the medications used in this area, strict safety processes are performed by doctors, pharmacists and certified nurses who work as a team to double and triple check these medications for accuracy. The Oncology Center of Excellence at Fort Sanders Regional holds the prestigious Certificate of Approval from the Commission on Cancer. The Commission on Cancer Certification is awarded only to facilities with oncology programs committed to providing the best comprehensive cancer care. The Oncology Nursing Unit also serves as the inpatient component of the Stem Cell Center which is based at the Thompson Cancer Survival Center. This Stem Cell treatment center in conjunction with our Oncology Nursing Unit has accomplished accreditation by the Foundation of Accreditation for Cellular Therapy, also known as FACT.Surgical oncology is the branch of surgery which focuses on the surgical management of cancer. The Medical Staff at Fort Sanders Regional Medical Center includes general surgical oncologists as well as thoracic surgical oncologists, gynecologic oncologists and other sub-specialists that specialize in treating cancer patients. Outcomes in surgical cancer care are positively associated to surgeon volume -- i.e. the more cancer cases a surgeon treats, the more proficient he becomes, thus improving overall outcomes and survival rates. Fort Sanders Regional's surgical oncologists handled 194 cases in 2010.Due to the close proximity of Fort Sanders Regional Medical Center to Thompson Cancer Survival Center, the surgeons and staff at Fort Sanders Regional work closely with the cancer center's multidisciplinary treatment teams in the collaboration of care and treatment plans for patients with chest and breast cancer. A team of cancer specialists in differing areas of expertise, including surgeons, gather and evaluate each patient's case to determine possible treatment options. Each specialist then meets individually with the patient to go over treatment choices and answer questions. As part of its outpatient oncology care, Fort Sanders Regional has opened four outpatient Infusion Centers in the area providing many of the chemotherapy medications for cancer patients. About 15,810 infusions were performed in the infusion centers in 2010.Fort Sanders Regional Medical Center, through the Patricia Neal Rehabilitation Center, is the only place in East Tennessee, and one of a handful in the country, who offers a cancer rehabilitation program. The cancer program combines many of the rehabilitation techniques currently used for patients with brain and spinal cord injuries and strokes because the impairments cancer patients experience can be very similar to those of traumatic injuries. At the Center, the cancer rehab team creates a special care plan for each patient. The goal is to help patients regain as much ability and independence as possible. The health-care team includes: * Each patient's personal physician * Medical, radiation and surgical oncologists * Physiatrists - doctors whose specialty is physical medicine and rehabilitation * Rehabilitation nurses * Physical, occupational and recreational therapists * Psychologists * Speech language pathologists * Pharmacists * Dietitians * Case managers Patricia Neal Rehabilitation Center treats many of the impairments that can result from cancer, cancer surgery, radiation therapy, chemotherapy and other treatments, such as: * Fatigue * Muscle wasting * Weakness * Pain * Skin breakdown * Impaired mobility * Anxiety * Depression * Adjustment problems * Overall deconditioning * Lymphedema (swelling) * Weight loss * Communication difficulty * Impaired thinking or memory loss Patricia Neal Rehabilitation Center has a positive, encouraging atmosphere. It is known for outstanding resources, from a rooftop therapy park to a computer life-skills lab. The Center also offers: * Fully-equipped therapy gyms * Special adaptive equipment programs * Animal therapy * Support groups * Community outings * Family and caregiver training * Tools to improve communication * Adaptive driving * Balance programs * An adaptive living apartment to ease the transition back to everyday life

	(Code: ) (Expenses $ 148,013,475 including grants of $ 104,269 ) (Revenue $ 151,680,501 )
	As a full-service acute care hospital and regional referral center, Fort Sanders Regional Medical Center treats patients across a broad spectrum of medical specialties in addition to those highlighted above.

4d	Other program services. (Describe in Schedule O.)
	(Expenses $ 148,013,475 including grants of $ 104,269 ) (Revenue $ 151,680,501 )
4e	Total program service expenses$ 292,102,295

1b	Sub-Total................
c	Total from continuation sheets to Part VII, Section A....
d	Total (add lines 1b and 1c)............	937,615	2,700,601	475,678

				(A) Total revenue	(B) Related or exempt function revenue	(C) Unrelated business revenue	(D) Revenue excluded from tax under sections 512, 513, or 514
1a	Federated campaigns..1a
b	Membership dues....1b
c	Fundraising events....1c
d	Related organizations...1d		450,751
e	Government grants (contributions)1e		181,114

f	All other contributions, gifts, grants, and similar amounts not included above1f		1,703
g	Noncash contributions included in lines 1a-1f:$ 22,590
h	Total. Add lines 1a-1f.......			633,568
			Business Code
2a	Medical Services		622,110	301,745,800	301,745,800
b	Laboratory		621,500	1,730,219		1,730,219
c	Rental Inc - Affiliate		531,120	806,692	806,692
d
e
f	All other program service revenue .
g	Total. Add lines 2a–2f........			304,282,711
3	Investment income (including dividends, interest
	and other similar amounts).....			30,970			30,970
4	Income from investment of tax-exempt bond proceeds..			1,086	1,086
5	Royalties............
		(i) Real	(ii) Personal
6a	Gross Rents	2,754,928
b	Less: rental expenses	3,753,985
c	Rental income or (loss)	-999,057
d	Net rental income or (loss).......			-999,057			-999,057
		(i) Securities	(ii) Other
7a	Gross amount from sales of assets other than inventory
b	Less: cost or other basis and sales expenses		81,173
c	Gain or (loss)		-81,173
d	Net gain or (loss)..........			-81,173			-81,173
8a	Gross income from fundraising events (not including $ of contributions reported on line 1c). See Part IV, line 18 ...
	a		120,756
b	Less: direct expenses ...b		108,588
c	Net income or (loss) from fundraising events..			12,168			12,168
9a	Gross income from gaming activities. See Part IV, line 19 ...
	a
b	Less: direct expenses ...b
c	Net income or (loss) from gaming activities...
10a	Gross sales of inventory, less returns and allowances .
	a
b	Less: cost of goods sold ..b
c	Net income or (loss) from sales of inventory..
Miscellaneous Revenue			Business Code
11a	Pharmacy		900,099	3,159,347			3,159,347
b	Cafeteria		722,212	2,612,401			2,612,401
c	Steam and Oxygen		900,099	833,018		833,018
d	All other revenue ....			2,673,931	1,697,572	31,583	944,776
e	Total. Add lines 11a–11d ......			9,278,697
12	Total revenue. See Instructions....			313,158,970	304,251,150	2,594,820	5,679,432


				(A) Beginning of year		(B) End of year
1	Cashnon-interest-bearing ..........			2,669	1	3,839
2	Savings and temporary cash investments .......			-5,016,772	2	-2,010,391
3	Pledges and grants receivable, net .........				3
4	Accounts receivable, net .........			27,262,151	4	26,319,193
5	Receivables from current and former officers, directors, trustees, key employees, and highest compensated employees. Complete Part II of
	Schedule L ..........				5
6	Receivables from other disqualified persons (as defined under section 4958(f)(1)) and persons described in section 4958(c)(3)(B). Complete Part II of
	Schedule L ..........				6
7	Notes and loans receivable, net .............			44,555	7	44,555
8	Inventories for sale or use ..............			6,504,835	8	6,695,999
9	Prepaid expenses and deferred charges ............			647,482	9	534,865
10a	Land, buildings, and equipment: cost or other basis. Complete Part VI of Schedule D	10a	348,335,730
b	Less: accumulated depreciation. .....	10b	226,408,732	104,370,837	10c	121,926,998
11	Investments—publicly traded securities ..........				11
12	Investments—other securities. See Part IV, line 11 ......				12
13	Investments—program-related. See Part IV, line 11 ..				13
14	Intangible assets .........				14
15	Other assets. See Part IV, line 11 ...........			3,241,669	15	3,341,620
16	Total assets. Add lines 1 through 15 (must equal line 34)...			137,057,426	16	156,856,678
17	Accounts payable and accrued expenses .			20,375,832	17	22,491,125
18	Grants payable ..........				18
19	Deferred revenue ..........			585,312	19	563,664
20	Tax-exempt bond liabilities ..........			10,577,991	20	9,044,795
21	Escrow or custodial account liability. Complete Part IV of Schedule D..				21
22	Payables to current and former officers, directors, trustees, key employees, highest compensated employees, and disqualified
	persons. Complete Part II of Schedule L..........				22
23	Secured mortgages and notes payable to unrelated third parties ..			308,822	23	140,137
24	Unsecured notes and loans payable to unrelated third parties ....				24
25	Other liabilities. Complete Part X of Schedule D.....			7,823,981	25	12,424,326
26	Total liabilities. Add lines 17 through 25.....			39,671,938	26	44,664,047
	Organizations that follow SFAS 117, check here and complete lines 27 through 29, and lines 33 and 34.
27	Unrestricted net assets .....			97,385,488	27	112,192,631
28	Temporarily restricted net assets .....				28
29	Permanently restricted net assets .....				29
	Organizations that do not follow SFAS 117, check here and complete lines 30 through 34.
30	Capital stock or trust principal, or current funds .....				30
31	Paid-in or capital surplus, or land, building or equipment fund .....				31
32	Retained earnings, endowment, accumulated income, or other funds				32
33	Total net assets or fund balances .....			97,385,488	33	112,192,631
34	Total liabilities and net assets/fund balances .....			137,057,426	34	156,856,678