Form990
Click to see attachment
Department of the Treasury
Internal Revenue Service
Return of Organization Exempt From Income Tax
Under section 501(c), 527, or 4947(a)(1) of the Internal Revenue Code (except black lung benefit trust or private foundation)

MediumBullet The organization may have to use a copy of this return to satisfy state reporting requirements.
OMB No. 1545-0047
2010
Open to Public Inspection
A For the calendar year, or tax year beginning 01-01-2010 and ending 12-31-2010
BCheck if applicable:
CName of organization
Covenant Health
 
Doing Business As
 
 
Number and street (or P.O. box if mail is not delivered to street address)
1410 Centerpoint Blvd No 401
 
Room/suite
City or town, state or country, and ZIP + 4
Knoxville, TN379321985
D Employer identification number

62-1646734
E Telephone number

G Gross receipts $ 136,149,704
F Name and address of principal officer:
Anthony L Spezia
100 Fort Sanders West Blvd
Knoxville,TN37922
I
Tax-exempt status: (   ) LeftBullet (insert no.) or
J
Website:MediumBullet
www.covenanthealth.com
H(a)
Is this a group return for
affiliates?
H(b)
Are all affiliates included?
If "No," attach a list. (see instructions)
H(c)
Group exemption number MediumBullet  
K Form of organization:
 
L Year of formation: 1996
M State of legal domicile: TN
Part I
Summary
Activities & Governance 1 Briefly describe the organization’s mission or most significant activities: Covenant Health is the parent organization in a community-owned health care system in East Tenn.
2 Check this box MediumBullet
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) ... 5 834
6 Total number of volunteers (estimate if necessary) .... 6 591
7a Total unrelated business revenue from Part VIII, column (C), line 12 .. 7a 2,388,305
b Net unrelated business taxable income from Form 990-T, line 34 .. 7b 200,048
Revenues; Prior Year Current Year
8 Contributions and grants (Part VIII, line 1h) ......... 368,932 217,356
9 Program service revenue (Part VIII, line 2g) ......... 67,207,537 72,485,482
10 Investment income (Part VIII, column (A), lines 3, 4, and 7d ) .... -4,465,154 42,342,688
11 Other revenue (Part VIII, column (A), lines 5, 6d, 8c, 9c, 10c, and 11e) 2,365,107 1,765,437
12 Total revenue—add lines 8 through 11 (must equal Part VIII, column (A), line 12)................... 65,476,422 116,810,963
Expenses; 13 Grants and similar amounts paid (Part IX, column (A), lines 1–3 )... 827,012 750,368
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) 41,612,107 43,486,606
16a Professional fundraising fees (Part IX, column (A), line 11e).... 0 0
b Total fundraising expenses (Part IX, column (D), line 25) MediumBullet0    
17 Other expenses (Part IX, column (A), lines 11a–11d, 11f–24f).... 42,922,039 44,614,387
18 Total expenses. Add lines 13–17 (must equal Part IX, column (A), line 25) 85,361,158 88,851,361
19 Revenue less expenses. Subtract line 18 from line 12...... -19,884,736 27,959,602
Net Assets or Fund Balances; Beginning of Current Year End of Year
20 Total assets (Part X, line 16)............ 1,022,929,095 1,038,866,299
21 Total liabilities (Part X, line 26)............ 714,228,091 715,772,497
22 Net assets or fund balances. Subtract line 21 from line 20 ..... 308,701,004 323,093,802
Part II
Signature Block
Under penalties of perjury, I declare that I have examined this return, including accompanying schedules and statements, and to the best of my knowledge and belief, it is true, correct, and complete. Declaration of preparer (other than officer) is based on all information of which preparer has any knowledge.
Sign Here
JumboBullet
Signature of officer Date
JumboBullet
Type or print name and title.
Paid Preparer's Use Only Preparer's
signatureBig Right Arrow 		Date
right pointing bullet image Preparer’s taxpayer identification number
(see instructions)
Firm’s name (or yours
if self-employed),
address, and ZIP + 4Big Right Arrow




 		EIN right pointing bullet image
Phone no. right pointing bullet image
May the IRS discuss this return with the preparer shown above? (see instructions) .........
For Privacy Act and Paperwork Reduction Act Notice, see the separate instructions.
Cat. No. 11282Y
Form 990 (2010)
Form 990 (2010)
Page 2
Part III
Statement of Program Service Accomplishments
Check if Schedule O contains a response to any question in this Part III . . . . . . . . . .
1
Briefly describe the organization’s mission: Covenant Health operates exclusively as a supporting organization within the meaning of Internal Revenue Code section 509(a)(3). Its mission, which is shared by its member hospitals and other organizations (see Schedule A), is to serve the community by improving the quality of life through better health, regardless of a patient's ability to pay. Please see the Report to the Community for the Covenant Health organizations, which describes the substantial benefit provided by the system, at the end of this schedule.
2
Did the organization undertake any significant program services during the year which were not listed on
the prior Form 990 or 990-EZ? ....................
If “Yes,” describe these new services on Schedule O.
3
Did the organization cease conducting, or make significant changes in how it conducts, any program services? ..........................
If “Yes,” describe these changes on Schedule O.
4
Describe the exempt purpose achievements for each of the organization’s three largest program services by expenses.
Section 501(c)(3) and 501(c)(4) organizations and section 4947(a)(1) trusts are required to report the amount of grants and allocations to others, the total expenses, and revenue, if any, for each program service reported.
4a (Code:   ) (Expenses $ 25,889,266 including grants of $   ) (Revenue $ 25,889,266 )
Information Technology. See Schedule O for additional details.Information Technology: Expenses - $25,889,266; Revenue - $25,889,266.The Information Technology (IT) division of Covenant Health provides all computing equipment and information management related services to Covenant Health facilities. Information management systems and related application support (install, upgrade, help desk) services are available on a 24/7 basis spanning healthcare functions across core patient-care clinical systems, physician, nursing, and associated ancillary systems (lab, radiology, pharmacy, therapy), as well as the supporting business functions encompassing patient accounting, materials management, finance, and human resources. IT also manages a centralized data center (and a backup disaster recovery data center) where the hardware equipment is housed to deliver the computing resources for all clinical/business functions on a 24/7 schedule. Additionally, IT is responsible for management of all PC workstations (desktop, laptop, mobile cart), all client to server internal and external network connectivity, as well as telephone services and telephone equipment (PBX, handsets, cell phones, pagers) across the company. It also facilitates project management activities related to meeting regulatory and quality reporting requirements.Key statistics for the year include: *Payroll checks/deposits - 225,962 *Pharmacy medication mgmt. system - 2,888,281 orders *Total Spam messages blocked - 40,620,976 *Network virus attempts blocked - 115,961,249 *PCs supported - 7,281 *Overall telephone usage - 34,873,880 calls *Pathway scheduling application - 614,341 appointments *Accounts payable checks - 95,294
4b (Code:   ) (Expenses $ 7,616,073 including grants of $   ) (Revenue $ 7,616,073 )
Business Office. See Schedule O for additional details.Business Office: Expenses - $7,616,073; Revenue - $7,616,073.Knoxville Business Office Services is the CBO (Centralized Business Office) for Covenant Health providing accounts receivable management for Fort Sanders Regional Medical Center, Parkwest Medical Center, Fort Loudoun Medical Center, LeConte Medical Center, and Methodist Medical Center. These services include, but are not limited to, customer service, payment collection, financial posting, refund processing, and insurance billing and follow-up.During 2010, CBO submitted over 746,000 insurance claims totaling in excess of $2,658,000,000. Bad debt expense for 2010 was approximately 2.9% of gross revenue with bad debt recoveries/collections in excess of $8,600,000. The CBO handled over 109,000 incoming phone calls, following-up on over 422,000 open accounts and processed over 2.6 million financial transactions.
4c (Code:   ) (Expenses $ 6,141,167 including grants of $   ) (Revenue $ 6,141,167 )
Human Resources. See Schedule O for additional details.Human Resources: Expenses - $6,141,167; Revenue - $6,141,167.The Corporate Human Resources division of Covenant Health provides high quality centralized services to all Covenant Health entities in sourcing and staffing (employment), standardized benefit design and administration, exempt and non-exempt salary system design and delivery, human resources information system administration, employee relations and retention, clinical and non-clinical skill development, leadership and management development, cultural change, leadership succession and continuity, and security. Additionally, Human Resources is responsible for system-wide programs, policies and procedures; regulatory and legal compliance affecting all areas of Human Resources Administration; and contemporary, cost-effective systems and processes to meet organizational strategies, goals and tactics.Through Human Resources, staffing services assisted in hiring 1,192 employees during 2010 and held 52 orientation sessions for new employees. Employment applications averaged 1,051 per month. Through the learning and leadership development (LLD) division of Human Resources, Human Resources provided over 270,000 training hours including both e-learning and classroom-based courses. LLD also manages a framework of over 50 identified leadership competencies with all 400+ Covenant leaders accountable for a minimum of 60 hours of developmental training each year. In the clinical areas, LLD manages a host of training opportunities including everything from CPR to Advanced Neuro and Neo-natal Intensive Care courses.
(Code:   ) (Expenses $ 38,963,379 including grants of $ 750,368 ) (Revenue $ 49,829,923 )
In addition to the services previously mentioned, support provided by Covenant Health to its member facilities takes on many other forms, some examples of which are: * Executive leadership, strategic planning, and other planning both at the System and organizational level; * Financial, management and advisory services; * Third party reporting; * Integrity compliance program; * Real estate management; * Risk management; * Internal audit; * Asset and liability related treasury management functions; * Procurement; * Clinical quality improvement; * Marketing; and * External reporting.Other activities conducted by Covenant Health directly benefit patients and members of the communities served by the Supported Organizations. Some are aimed at improving the operational efficiency of and the quality of care provided by the Supported Organizations. Other programs have community benefit as their main goal. One example is Covenant Health Senior Services, which assists older adults who are 50 or better in their effort to lead healthier, more independent lives.
4d Other program services. (Describe in Schedule O.)
(Expenses $ 38,963,379 including grants of $ 750,368 ) (Revenue $ 49,829,923 )
4e Total program service expensesMediumBullet$ 78,609,885
Form 990 (2010)
Form 990 (2010)
Page 3
Part IV
Checklist of Required Schedules
Yes
No
1
Is the organization described in section 501(c)(3) or 4947(a)(1) (other than a private foundation)? If “Yes,” complete Schedule AClick to see attachment.....................
1
Yes
 
2
Is the organization required to complete Schedule B, Schedule of Contributors? Click to see attachment........
2
Yes
 
3
Did the organization engage in direct or indirect political campaign activities on behalf of or in opposition to candidates for public office? If “Yes,” complete Schedule C, Part IClick to see attachment..........
3
 
No
4
Section 501(c)(3) organizations. Did the organization engage in lobbying activities? If “Yes,” complete Schedule C,
Part IIClick to see attachment.........................
4
Yes
 
5
Is the organization a section 501(c)(4), 501(c)(5), or 501(c)(6) organization that receives membership dues, assessments, or similar amounts as defined in Revenue Procedure 98-19? If “Yes,” complete Schedule C, Part III........................
5
 
 
6
Did the organization maintain any donor advised funds or any similar funds or accounts where donors have the right to provide advice on the distribution or investment of amounts in such funds or accounts? If “Yes,” complete
Schedule D, Part IClick to see attachment.......................
6
 
No
7
Did the organization receive or hold a conservation easement, including easements to preserve open space,
the environment, historic land areas or historic structures? If “Yes,” complete Schedule D, Part IIClick to see attachment...
7
 
No
8
Did the organization maintain collections of works of art, historical treasures, or other similar assets? If “Yes,” complete Schedule D, Part III Click to see attachment....................
8
 
No
9
Did the organization report an amount in Part X, line 21; serve as a custodian for amounts not listed in Part X; or provide credit counseling, debt management, credit repair, or debt negotiation services? If “Yes,”
complete Schedule D, Part IVClick to see attachment...................
9
 
No
10
Did the organization, directly or through a related organization, hold assets in term, permanent,or quasi-endowments? If “Yes,” complete Schedule D, Part VClick to see attachment
10
 
No
11
If the organization’s answer to any of the following questions is ‘Yes,’ then complete Schedule D, Parts VI, VII, VIII, IX, or X as applicable:
a
Did the organization report an amount for land, buildings, and equipment in Part X, line10? If “Yes,” complete Schedule D, Part VI.Click to see attachment
11a
Yes
 
b
Did the organization report an amount for investments—other securities in Part X, line 12 that is 5% or more of its total assets reported in Part X, line 16? If “Yes,” complete Schedule D, Part VII.Click to see attachment
11b
 
No
c
Did the organization report an amount for investments—program related in Part X, line 13 that is 5% or more of its total assets reported in Part X, line 16? If “Yes,” complete Schedule D, Part VIII.Click to see attachment
11c
 
No
d
Did the organization report an amount for other assets in Part X, line 15 that is 5% or more of its total assets reported in Part X, line 16? If “Yes,” complete Schedule D, Part IX.Click to see attachment
11d
Yes
 
e
Did the organization report an amount for other liabilities in Part X, line 25? If “Yes,” complete Schedule D, Part X.Click to see attachment
11e
Yes
 
f
Did the organization’s separate or consolidated financial statements for the tax year include a footnote that addresses the organization’s liability for uncertain tax positions under FIN 48 (ASC 740)? If “Yes,” complete Schedule D, Part X.Click to see attachment
11f
 
No
12a
Did the organization obtain separate, independent audited financial statements for the tax year? If “Yes,” complete Schedule D, Parts XI, XII, and XIII Click to see attachment
12a
 
No
b
Was the organization included in consolidated, independent audited financial statements for the tax year? If “Yes,” and if the organization answered ‘No’ to line 12a, then completing Schedule D, Parts XI, XII, and XIII is optional Click to see attachment
12b
Yes
 
13
Is the organization a school described in section 170(b)(1)(A)(ii)? If “Yes,” complete Schedule E
13
 
No
14a
Did the organization maintain an office, employees, or agents outside of the United States?....
14a
 
No
b
Did the organization have aggregate revenues or expenses of more than $10,000 from grantmaking, fundraising, business, and program service activities outside the United States? If “Yes,” complete Schedule F, Part I.........
14b
 
No
15
Did the organization report on Part IX, column (A), line 3, more than $5,000 of grants or assistance to any organization or entity located outside the U.S.? If “Yes,” complete Schedule F, Part II..
15
 
No
16
Did the organization report on Part IX, column (A), line 3, more than $5,000 of aggregate grants or assistance to individuals located outside the U.S.? If “Yes,” complete Schedule F, Part III..
16
 
No
17
Did the organization report a total of more than $15,000, of expenses for professional fundraising services on Part IX, column (A), lines 6 and 11e? If “Yes,” complete Schedule G, Part I
17
 
No
18
Did the organization report more than $15,000 total of fundraising event gross income and contributions on Part VIII, lines 1c and 8a? If “Yes,” complete Schedule G, Part II..........
18
 
No
19
Did the organization report more than $15,000 of gross income from gaming activities on Part VIII, line 9a? If “Yes,” complete Schedule G, Part III...................
19
 
No
Form 990 (2010)
Form 990 (2010)
Page 4
Part IV
Checklist of Required Schedules (continued)
20a
Did the organization operate one or more hospitals? If “Yes,” complete Schedule H.....
20a
 
No
b
Did the organization attach its audited financial statement to this return? Note: All Form 990 filers that operate one or more hospitals must attach audited financial statements. .....
20b
 
 
21
Did the organization report more than $5,000 of grants and other assistance to governments and organizations in the United States on Part IX, column (A), line 1? If “Yes,” complete Schedule I, Parts I and II.. Click to see attachment
21
Yes
 
22
Did the organization report more than $5,000 of grants and other assistance to individuals in the United States on Part IX, column (A), line 2? If “Yes,” complete Schedule I, Parts I and III..... Click to see attachment
22
Yes
 
23
Did the organization answer “Yes” to Part VII, Section A, questions 3, 4, or 5, about compensation of the organization’s current and former officers, directors, trustees, key employees, and highest compensated employees? If “Yes,” complete Schedule J................ Click to see attachment
23
Yes
 
24a
Did the organization have a tax-exempt bond issue with an outstanding principal amount of more than $100,000 as of the last day of the year, that was issued after December 31, 2002? If “Yes,” answer questions 24b–24d and complete Schedule K. If “No,” go to line 25................ Click to see attachment
24a
Yes
 
b
Did the organization invest any proceeds of tax-exempt bonds beyond a temporary period exception?...
24b
 
No
c
Did the organization maintain an escrow account other than a refunding escrow at any time during the year
to defease any tax-exempt bonds?......................
24c
 
No
d
Did the organization act as an “on behalf of” issuer for bonds outstanding at any time during the year?...
24d
 
No
25a
Section 501(c)(3) and 501(c)(4) organizations. Did the organization engage in an excess benefit transaction with a disqualified person during the year? If “Yes,” complete Schedule L, Part I......
25a
 
No
b
Is the organization aware that it engaged in an excess benefit transaction with a disqualified person in a prior year, and that the transaction has not been reported on any of the organization’s prior Forms 990 or 990-EZ? If “Yes,” complete Schedule L, Part I................
25b
 
No
26
Was a loan to or by a current or former officer, director, trustee, key employee, highly compensated employee, or disqualified person outstanding as of the end of the organization’s tax year? If “Yes,” complete Schedule L,
Part II...........................
26
 
No
27
Did the organization provide a grant or other assistance to an officer, director, trustee, key employee, substantial contributor, or a grant selection committee member, or to a person related to such an individual? If “Yes,” complete Schedule L, Part III...............
27
 
No
28
Was the organization a party to a business transaction with one of the following parties? (see Schedule L, Part IV instructions for applicable filing thresholds, conditions, and exceptions):
a
A current or former officer, director, trustee, or key employee? If “Yes,” complete Schedule L, Part IV .........................
28a
 
No
b
A family member of a current or former officer, director, trustee, or key employee? If “Yes,”
complete Schedule L, Part IV...................
28b
 
No
c
An entity of which a current or former officer, director, trustee, or key employee (or a family member thereof) was an officer, director, trustee, or owner? If “Yes,” complete Schedule L, Part IV..
28c
 
No
29
Did the organization receive more than $25,000 in non-cash contributions? If “Yes,” complete Schedule MClick to see attachment
29
Yes
 
30
Did the organization receive contributions of art, historical treasures, or other similar assets, or qualified conservation contributions? If “Yes,” complete Schedule M............ Click to see attachment
30
Yes
 
31
Did the organization liquidate, terminate, or dissolve and cease operations? If “Yes,” complete Schedule N,
Part I........................... Click to see attachment
31
 
No
32
Did the organization sell, exchange, dispose of, or transfer more than 25% of its net assets? If “Yes,” complete Schedule N, Part II.......................
32
 
No
33
Did the organization own 100% of an entity disregarded as separate from the organization under Regulations sections 301.7701-2 and 301.7701-3? If “Yes,” complete Schedule R, Part I........ Click to see attachment
33
 
No
34
Was the organization related to any tax-exempt or taxable entity? If “Yes,” complete Schedule R, Parts II, III, IV, and V, line 1..................... Click to see attachment
34
Yes
 
35
Is any related organization a controlled entity within the meaning of section 512(b)(13)? .....
35
Yes
 
a
Did the organization receive any payment from or engage in any transaction with a controlled entity within the meaning of section 512(b)(13)? If “Yes,” complete Schedule R, Part V, line 2... Click to see attachment
36
Section 501(c)(3) organizations. Did the organization make any transfers to an exempt non-charitable related organization? If “Yes,” complete Schedule R, Part V, line 2........... Click to see attachment
36
 
No
37
Did the organization conduct more than 5% of its activities through an entity that is not a related organization and that is treated as a partnership for federal income tax purposes? If “Yes,” complete Schedule R, Part VIClick to see attachment
37
 
No
38
Did the organization complete Schedule O and provide explanations in Schedule O for Part VI, lines 11 and 19? Note. All Form 990 filers are required to complete Schedule O. ............
38
Yes
 
Form 990 (2010)
Form 990 (2010)
Page 5
Part V
Statements Regarding Other IRS Filings and Tax Compliance
Check if Schedule O contains a response to any question in this Part V . . . . . . . . . .
Yes
No
1a
Enter the number reported in Box 3 of Form 1096. Enter -0- if not applicable. .......
1a
466
b
Enter the number of Forms W-2G included in line 1a. Enter -0- if not applicable.
1b
0
c
Did the organization comply with backup withholding rules for reportable payments to vendors and reportable gaming (gambling) winnings to prize winners? ..................
1c
Yes
 
2a
Enter the number of employees reported on Form W-3, Transmittal of Wage and Tax Statements filed for the calendar year ending with or within the year covered by this return .....................
2a
834
b
If at least one is reported on line 2a, did the organization file all required federal employment tax returns?

Note. If the sum of lines 1a and 2a is greater than 250, you may be required to e-file. (see instructions)
2b
Yes
 
3a
Did the organization have unrelated business gross income of $1,000 or more during the year?.............................
3a
Yes
 
b
If “Yes,” has it filed a Form 990-T for this year? If “No,” provide an explanation in Schedule O.....
3b
Yes
 
4a
At any time during the calendar year, did the organization have an interest in, or a signature or other authority over, a financial account in a foreign country (such as a bank account or securities account)?.......................
4a
Yes
 
b
If "Yes," enter the name of the foreign country: MediumBulletCA
See instructions for filing requirements for Form TD F 90-22.1, Report of Foreign Bank and Financial Accounts.
5a
Was the organization a party to a prohibited tax shelter transaction at any time during the tax year?..
5a
 
No
b
Did any taxable party notify the organization that it was or is a party to a prohibited tax shelter transaction?
5b
 
No
c
If “Yes” to line 5a or 5b, did the organization file Form 8886-T? ........
5c
 
 
6a
Does the organization have annual gross receipts that are normally greater than $100,000, and did the organization solicit any contributions that were not tax deductible?..........
6a
 
No
b
If “Yes,” did the organization include with every solicitation an express statement that such contributions or gifts were not tax deductible?........................
6b
 
 
7
Organizations that may receive deductible contributions under section 170(c).
a
Did the organization receive a payment in excess of $75 made partly as a contribution and partly for goods and services provided to the payor?....................
7a
 
No
b
If “Yes,” did the organization notify the donor of the value of the goods or services provided?.....
7b
 
 
c
Did the organization sell, exchange, or otherwise dispose of tangible personal property for which it was required to file Form 8282?...........................
7c
 
No
d
If “Yes,” indicate the number of Forms 8282 filed during the year ....
7d
 
e
Did the organization receive any funds, directly or indirectly, to pay premiums on a personal benefit contract?..........................
7e
 
No
f
Did the organization, during the year, pay premiums, directly or indirectly, on a personal benefit contract?..
7f
 
No
g
If the organization received a contribution of qualified intellectual property, did the organization file Form 8899 as required?...................
7g
 
 
h
If the organization received a contribution of cars, boats, airplanes, or other vehicles, did the organization file a Form 1098-C?...............
7h
 
 
8
Sponsoring organizations maintaining donor advised funds and section 509(a)(3) supporting organizations. Did the supporting organization, or a donor advised fund maintained by a sponsoring organization, have excess business holdings at any time during the year?................
8
 
 
9
Sponsoring organizations maintaining donor advised funds.
a
Did the organization make any taxable distributions under section 4966?.........
9a
 
 
b
Did the organization make a distribution to a donor, donor advisor, or related person?......
9b
 
 
10
Section 501(c)(7) organizations. Enter:
a
Initiation fees and capital contributions included on Part VIII, line 12 ...
10a
 
b
Gross receipts, included on Form 990, Part VIII, line 12, for public use of club facilities
10b
 
11
Section 501(c)(12) organizations. Enter:
a
Gross income from members or shareholders .........
11a
 
b
Gross income from other sources (Do not net amounts due or paid to other sources against amounts due or received from them.) ........
11b
 
12a
Section 4947(a)(1) non-exempt charitable trusts. Is the organization filing Form 990 in lieu of Form 1041?
12a
 
 
b
If “Yes,” enter the amount of tax-exempt interest received or accrued during the year.
12b
 
13
Section 501(c)(29) qualified nonprofit health insurance issuers.
a
Is the organization licensed to issue qualified health plans in more than one state?
Note. All 501(c)(29) organizations must list in Schedule O each state in which they are licensed to issue qualified health plans, the amount of reserves required by each state, and the amount of reserves the organization allocated to each state.
13a
 
 
b
Enter the aggregate amount of reserves the organization is required to maintain by the states in which the organization is licensed to issue qualified health plans.
13b
 
c
Enter the aggregate amount of reserves on hand.
13c
 
14a
Did the organization receive any payments for indoor tanning services during the tax year?.....
14a
 
 
b
If "Yes," has it filed a Form 720 to report these payments? If “No,” provide an explanation in Schedule O..
14b
 
 
Form 990 (2010)
Form 990 (2010)
Page 6
Part VI
Governance, Management, and Disclosure For each “Yes” response to lines 2 through 7b below, and for a “No” response to lines 8a, 8b, or 10b below, describe the circumstances, processes, or changes in Schedule O. See instructions.
Check if Schedule O contains a response to any question in this Part VI . . . . . . . . . .
Section A. Governing Body and Management
Yes
No
1a
Enter the number of voting members of the governing body at the end of the tax year ..............
1a
21
b
Enter the number of voting members included in line 1a, above, who are independent .................
1b
16
2
Did any officer, director, trustee, or key employee have a family relationship or a business relationship with any other officer, director, trustee, or key employee? .................
2
 
No
3
Did the organization delegate control over management duties customarily performed by or under the direct supervision of officers, directors or trustees, or key employees to a management company or other person? ..
3
 
No
4
Did the organization make any significant changes to its governing documents since the prior Form 990 was filed?
4
Yes
 
5
Did the organization become aware during the year of a significant diversion of the organization’s assets? .
5
 
No
6
Does the organization have members or stockholders? ................
6
 
No
7a
Does the organization have members, stockholders, or other persons who may elect one or more members of the governing body? .........................
7a
 
No
b
Are any decisions of the governing body subject to approval by members, stockholders, or other persons? ..
7b
 
No
8
Did the organization contemporaneously document the meetings held or written actions undertaken during the year by the following:
a
The governing body? .........................
8a
Yes
 
b
Each committee with authority to act on behalf of the governing body? ............
8b
Yes
 
9
Is there any officer, director, trustee, or key employee listed in Part VII, Section A, who cannot be reached at the organization’s mailing address? If “Yes,” provide the names and addresses in Schedule O .....
9
Yes
 
Section B. Policies (This Section B requests information about policies not required by the Internal
Revenue Code.)
Yes
No
10a
Does the organization have local chapters, branches, or affiliates? ............
10a
 
No
b
If “Yes,” does the organization have written policies and procedures governing the activities of such chapters, affiliates, and branches to ensure their operations are consistent with those of the organization? ....
10b
 
 
11a
Has the organization provided a copy of this Form 990 to all members of its governing body before filing the form?
11a
Yes
 
b
Describe in Schedule O the process, if any, used by the organization to review the Form 990. .....
12a
Does the organization have a written conflict of interest policy? If “No,” go to line 13.......
12a
Yes
 
b
Are officers, directors or trustees, and key employees required to disclose annually interests that could give rise to conflicts? ...........................
12b
Yes
 
c
Does the organization regularly and consistently monitor and enforce compliance with the policy? If “Yes,” describe in Schedule O how this is done ....................
12c
Yes
 
13
Does the organization have a written whistleblower policy? ...............
13
Yes
 
14
Does the organization have a written document retention and destruction policy? .........
14
Yes
 
15
Did the process for determining compensation of the following persons include a review and approval by independent persons, comparability data, and contemporaneous substantiation of the deliberation and decision?
a
The organization’s CEO, Executive Director, or top management official ...........
15a
Yes
 
b
Other officers or key employees of the organization ................
15b
Yes
 
If "Yes" to line a or b, describe the process in Schedule O. (See instructions.)
16a
Did the organization invest in, contribute assets to, or participate in a joint venture or similar arrangement with a taxable entity during the year? ......................
16a
 
No
b
If “Yes,” has the organization adopted a written policy or procedure requiring the organization to evaluate its participation in joint venture arrangements under applicable federal tax law, and taken steps to safeguard the organization’s exempt status with respect to such arrangements? ............
16b
 
 
Section C. Disclosure
17
List the States with which a copy of this Form 990 is required to be filedMediumBullet
TN
18
Section 6104 requires an organization to make its Form 1023 (or 1024 if applicable), 990, and 990-T (501(c)(3)s only) available for public inspection. Indicate how you make these available. Check all that apply.
19
Describe in Schedule O whether (and if so, how), the organization makes its governing documents, conflict of interest policy, and financial statements available to the public.
20
State the name, physical address, and telephone number of the person who possesses the books and records of the organization: MediumBullet
John T Geppi EVPCFO
1410 Centerpoint Blvd Bldg B Ste
Knoxville,TN379321985
(865) 374-6864
Form 990 (2010)
Form 990 (2010)
Page 7
Part VII
Compensation of Officers, Directors,Trustees, Key Employees, Highest Compensated Employees, and Independent Contractors
Check if Schedule O contains a response to any question in this Part VII . . . . . . . . . .
Section A. Officers, Directors, Trustees, Key Employees, and Highest Compensated Employees
1a Complete this table for all persons required to be listed. Report compensation for the calendar year ending with or within the organization’s tax year.
RoundBullet List all of the organization’s current officers, directors, trustees (whether individuals or organizations), regardless of amount
of compensation, and current key employees. Enter -0- in columns (D), (E), and (F) if no compensation was paid.

RoundBullet List all of the organization’s current key employees, if any. See instructions for definition of "key employee."
RoundBullet List the organization’s five current highest compensated employees (other than an officer, director, trustee or key employee)
who received reportable compensation (Box 5 of Form W-2 and/or Box 7 of Form 1099-MISC) of more than $100,000 from the
organization and any related organizations.

RoundBullet List all of the organization’s former officers, key employees, or highest compensated employees who received more than $100,000
of reportable compensation from the organization and any related organizations.

RoundBullet List all of the organization’s former directors or trustees that received, in the capacity as a former director or trustee of the
organization, more than $10,000 of reportable compensation from the organization and any related organizations.

List persons in the following order: individual trustees or directors; institutional trustees; officers; key employees; highest
compensated employees; and former such persons.
Check this box if neither the organization nor any related organizations compensated any current or former officer, director, or trustee.
(A)
Name and Title 		(B)
Average hours per week (describe hours for related organizations in Schedule O) 		(C)
Position (check all that apply) 		(D)
Reportable compensation from the organization (W- 2/1099-MISC) 		(E)
Reportable compensation from related organizations (W- 2/1099-MISC) 		(F)
Estimated amount of other compensation from the organization and related organizations
Individual Trustee or Director; Institutional Trustee; Officer; Key Employee; Highest compensated employee; Former;
(1) Anthony L Spezia
President & CEO
 50.00 X   X       1,406,336 0 246,381
(2) Dr Richard Brinner
Director
 1.00 X           922 0 0
(3) Harry M Call
Director
 1.00 X           1,532 0 0
(4) Dr Mitchell Dickson
Director
 1.00 X           1,771 0 0
(5) Pamela P Fansler
Director
 1.00 X           767 0 0
(6) Homer Fisher
Director
 1.00 X           436 0 0
(7) James Fitzsimmons
Director
 1.00 X           1,876 0 0
(8) Dr William Hall
Director
 1.00 X           1,274 0 0
(9) Wayne Heatherly
Director
 1.00 X           1,697 0 0
(10) Jim Johnson Jr
Director
 1.00 X           1,114 0 0
(11) Karla Lane
Director
 1.00 X           950 0 0
(12) Dr Randolph Lowry
Director
 1.00 X           1,665 0 0
(13) Larry Mauldin
Director
 1.00 X           1,226 0 0
(14) George Miller
Director
 1.00 X           647 0 0
(15) Alvin Nance
Director
 1.00 X           673 0 0
(16) Linda N Ogle
Director
 1.00 X           0 0 0
(17) Francis Olmstead Jr
Chairman
 1.00 X           2,212 0 0
Form 990 (2010)
Form 990 (2010)
Page 8
Part VII
Section A. Officers, Directors, Trustees, Key Employees, and Highest Compensated Employees (continued)
(A)
Name and Title 		(B)
Average hours per week (describe hours for related organizations in Schedule O) 		(C)
Position (check all that apply) 		(D)
Reportable compensation from the organization (W- 2/1099-MISC) 		(E)
Reportable compensation from related organizations (W- 2/1099-MISC) 		(F)
Estimated amount of other compensation from the organization and related organizations
Individual Trustee or Director; Institutional Trustee; Officer; Key Employee; Highest compensated employee; Former;
(18) Mitchell Steenrod
Director
 1.00 X           1,081 0 0
(19) Joseph E Sutter
Director
 1.00 X           1,829 0 0
(20) Joe Ben Turner
Director
 1.00 X           819 0 0
(21) David C Verble
Director
 1.00 X           1,434 0 0
(22) John T Geppi
EVP/CFO
 50.00     X       675,119 0 41,480
(23) James D Vandersteeg
EVP - Hospital Operations
 50.00       X     627,504 0 37,133
(24) Samuel R Buscetta
EVP - Human Resources
 50.00       X     477,931 0 36,834
(25) William M Ward
SVP - Chief Information Officer
 50.00       X     314,445 0 38,102
(26) Larry R Lassiter
Pres/CAO - Parkwest
 50.00         X   382,939 0 36,147
(27) Keith Altshuler
Pres/CAO - Regional
 50.00         X   374,679 0 50,893
(28) Michael R Belbeck Jr
Pres/CAO - Methodist
 50.00         X   352,459 0 43,966
(29) Gordon Lintz
Pres/CAO - Thompson
 50.00         X   269,336 0 24,398
(30) Virginia K Morrow
SVP - Philanthropy
 40.00         X   244,599 0 30,891
1b Sub-Total................MediumBullet
c Total from continuation sheets to Part VII, Section A....MediumBullet
d Total (add lines 1b and 1c)............MediumBullet 5,149,272 0 586,225
2
Total number of individuals (including but not limited to those listed above) who received more than $100,000 in reportable compensation from the organizationMediumBullet47
Yes
No
3
Did the organization list any former officer, director or trustee, key employee, or highest compensated employee on line 1a? If “Yes,” complete Schedule J for such individual .............
3
 
No
4
For any individual listed on line 1a, is the sum of reportable compensation and other compensation from the organization and related organizations greater than $150,000? If “Yes,” complete Schedule J for such individual...........................
4
Yes
 
5
Did any person listed on line 1a receive or accrue compensation from any unrelated organization or individual for services rendered to the organization? If “Yes,” complete Schedule J for such person .....
5
 
No
Section B. Independent Contractors
1
Complete this table for your five highest compensated independent contractors that received more than $100,000 of compensation from the organization.
(A)
Name and business address 		(B)
Description of services 		(C)
Compensation
Morrison Mgmt Specialists Inc
PO Box 102289
Atlanta,GA303682289 		Cafeteria Management 17,467,357
McKesson Info Solutions
PO Box 98347
Chicago,IL606938347 		IT services 8,689,104
Specialty Laboratories
File 51048
Los Angeles,CA900741048 		Laboratory Services 2,000,834
Wagner Myers and Sanger
PO Box 1308
Knoxville,TN37901 		Legal Services 1,380,158
Perot Systems Corp
2300 W Plano Pkwy Treas Dept Bl
Plano,TX75075 		Professional Service fees 820,375
2
Total number of independent contractors (including but not limited to those listed above) who received more than $100,000 in compensation from the organization MediumBullet57
Form 990 (2010)
Form 990 (2010)
Page 9
Part VIII
Statement of Revenue
(A)
Total revenue 		(B)
Related or
exempt
function
revenue 		(C)
Unrelated
business
revenue 		(D)
Revenue
excluded from
tax under sections
512, 513, or 514
Contributions, gifts, grants and other similar amounts 1a Federated campaigns..1a  
b Membership dues....1b  
c Fundraising events....1c  
d Related organizations...1d 217,356
e Government grants (contributions)1e  
f All other contributions, gifts, grants, and
similar amounts not included above1f 		 
g Noncash contributions included in lines 1a-1f:$ 54,393
h Total. Add lines 1a-1f.......MediumBullet 217,356
Program Service Revenue Business Code
2a Management Fees 561,000 63,097,673 63,097,673    
b Telephone Services 517,000 4,787,544 4,463,560 323,984  
c Transcription Services 561,499 4,219,483 3,910,969 308,514  
d Community Outreach 621,990 310,540 278,540   32,000
e Managed Care Services 541,900 68,992   68,992  
f All other program service revenue . 1,250   1,250  
g Total. Add lines 2a–2f........MediumBullet 72,485,482
Other Revenue 3 Investment income (including dividends, interest
and other similar amounts).....MediumBullet 16,942,869 16,942,869    
4 Income from investment of tax-exempt bond proceeds..MediumBullet 734,080 734,080    
5 Royalties............MediumBullet        
(i) Real (ii) Personal
6a Gross Rents    
b Less: rental expenses    
c Rental income or (loss)    
d Net rental income or (loss).......MediumBullet        
(i) Securities (ii) Other
7a Gross amount from sales of assets other than inventory 16,292,587 24,923,031
b Less: cost or other basis and sales expenses 16,488,733 61,146
c Gain or (loss) -196,146 24,861,885
d Net gain or (loss)..........MediumBullet 24,665,739   2,420 24,663,319
8a Gross income from fundraising events (not including
$  
of contributions reported on line 1c). See Part IV, line 18 ...
a  
b Less: direct expenses ...b  
c Net income or (loss) from fundraising events..MediumBullet      
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...MediumBullet        
10a Gross sales of inventory, less
returns and allowances .
a 2,837,600
b Less: cost of goods sold ..b 2,788,862
c Net income or (loss) from sales of inventory..MediumBullet 48,738 48,738    
Miscellaneous Revenue Business Code
11a Info. Technology Servi 518,210 1,683,145   1,683,145  
b Rental Income 531,110 33,554     33,554
c            
d All other revenue ....        
e Total. Add lines 11a–11d ......MediumBullet 1,716,699
12 Total revenue. See Instructions....MediumBullet 116,810,963 89,476,429 2,388,305 24,728,873
Form 990 (2010)
Form 990 (2010)
Page 10
Part IX
Statement of Functional Expenses
Section 501(c)(3) and 501(c)(4) organizations must complete all columns. All other organizations must complete column (A) but are not required to complete columns (B), (C), and (D).
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 21 725,368 725,368
2 Grants and other assistance to individuals in the U.S. See Part IV, line 22 25,000 25,000
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 .... 3,923,494 3,393,319 530,175  
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 30,938,482 26,882,431 4,056,051  
8 Pension plan contributions (include section 401(k) and section 403(b) employer contributions) .... 1,793,741 1,560,196 233,545  
9 Other employee benefits ....... 4,443,860 3,875,226 568,634  
10 Payroll taxes ........... 2,387,029 2,076,238 310,791  
11 Fees for services (non-employees):        
a Management ......        
b Legal ......... 1,611,224 575,680 1,035,544  
c Accounting ........... 60,500   60,500  
d Lobbying ...........        
e Professional fundraising. See Part IV, line 17..    
f Investment management fees ...... 18,500 18,500    
g Other .......... 7,582,954 5,425,082 2,157,872  
12 Advertising and promotion .... 887,836 887,408 428  
13 Office expenses ....... 5,051,519 5,196,691 -145,172  
14 Information technology ...... 10,083,559 10,083,559    
15 Royalties ..        
16 Occupancy ........... 2,342,928 2,227,587 115,341  
17 Travel ............ 234,585 221,511 13,074  
18 Payments of travel or entertainment expenses for any federal, state, or local public officials ......        
19 Conferences, conventions, and meetings .... 615,354 300,884 314,470  
20 Interest ........... 11,319,827 11,319,827    
21 Payments to affiliates .......        
22 Depreciation, depletion, and amortization ..... 3,277,449 2,878,686 398,763  
23 Insurance .............. 487,497 236,898 250,599  
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 25,887   25,887  
b Dues and Licenses 827,683 720,698 106,985  
c Subscriptions 618,449 610,646 7,803  
d Recruitment 108,527 108,527    
e Other Taxes and License 57,025   57,025  
f All other expenses -596,916 -740,077 143,161  
25 Total functional expenses. Add lines 1 through 24f 88,851,361 78,609,885 10,241,476 0
26 Joint costs. Check here MediumBullet 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 		       
Form 990 (2010)
Form 990 (2010)
Page 11
Part X Balance Sheet
(A)
Beginning of year 		(B)
End of year
Assets 1 Cash—non-interest-bearing .......... 1,850 1 1,800
2 Savings and temporary cash investments ....... 17,011,694 2 28,911,749
3 Pledges and grants receivable, net .........   3  
4 Accounts receivable, net .........   4  
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 .............   7  
8 Inventories for sale or use .............. 229,076 8 442,964
9 Prepaid expenses and deferred charges ............ 4,776,020 9 5,566,314
10a Land, buildings, and equipment: cost or other basis. Complete Part VI of Schedule D 10a 44,490,370
b Less: accumulated depreciation. ..... 10b 14,161,669 22,831,559 10c 30,328,701
11 Investments—publicly traded securities .......... 743,931,029 11 768,458,922
12 Investments—other securities. See Part IV, line 11 ...... 2,039,318 12 6,917,363
13 Investments—program-related. See Part IV, line 11 ..   13  
14 Intangible assets .........   14  
15 Other assets. See Part IV, line 11 ........... 232,108,549 15 198,238,486
16 Total assets. Add lines 1 through 15 (must equal line 34)... 1,022,929,095 16 1,038,866,299
Liabilities 17 Accounts payable and accrued expenses . 43,133,693 17 47,323,061
18 Grants payable ..........   18  
19 Deferred revenue .......... 67,243,793 19 56,298,033
20 Tax-exempt bond liabilities .......... 579,139,629 20 586,520,252
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 ..   23  
24 Unsecured notes and loans payable to unrelated third parties ....   24  
25 Other liabilities. Complete Part X of Schedule D..... 24,710,976 25 25,631,151
26 Total liabilities. Add lines 17 through 25..... 714,228,091 26 715,772,497
Net Assets or Fund Balance Organizations that follow SFAS 117, check here MediumBullet and complete lines 27 through 29, and lines 33 and 34.
27 Unrestricted net assets ..... 308,701,004 27 323,093,802
28 Temporarily restricted net assets .....   28  
29 Permanently restricted net assets .....   29  
Organizations that do not follow SFAS 117, check here MediumBullet 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 ..... 308,701,004 33 323,093,802
34 Total liabilities and net assets/fund balances ..... 1,022,929,095 34 1,038,866,299
Form 990 (2010)
Form 990 (2010)
Page 12
Part XI
Reconcilliation of Net Assets
Check if Schedule O contains a response to any question in this Part XI . . . . . . . . . .
1
Total revenue (must equal Part VIII, column (A), line 12) . . .
1
116,810,963
2
Total expenses (must equal Part IX, column (A), line 25) . . . . .
2
88,851,361
3
Revenue less expenses. Subtract line 2 from line 1 . . . .
3
27,959,602
4
Net assets or fund balances at beginning of year (must equal Part X, line 33, column (A)) . .
4
308,701,004
5
Other changes in net assets or fund balances (explain in Schedule O) . . . .
5
-13,566,804
6
Net assets or fund balances at end of year. Combine lines 3, 4, and 5 (must equal Part X, line 33, column (B)) . . . . . .
6
323,093,802
Part XII
Financial Statements and Reporting
Check if Schedule O contains a response to any question in this Part XII . . . . . . . . . .
Yes
No
1
Accounting method used to prepare the Form 990:  
If the organization changed its method of accounting from a prior year or checked "Other," explain in
Schedule O.
2a
Were the organization’s financial statements compiled or reviewed by an independent accountant?..
2a
 
No
b
Were the organization’s financial statements audited by an independent accountant?........
2b
Yes
 
c
If “Yes,” to 2a or 2b, does the organization have a committee that assumes responsibility for oversight of the audit, review, or compilation of its financial statements and selection of an independent accountant?
If the organization changed either its oversight process or selection process during the tax year, explain in Schedule O............................
2c
Yes
 
d
If “Yes” to line 2a or 2b, check a box below to indicate whether the financial statements for the year were issued on a separate basis, consolidated basis, or both:
3a
As a result of a federal award, was the organization required to undergo an audit or audits as set forth in the Single Audit Act and OMB Circular A-133? ................
3a
Yes
 
b
If “Yes,” did the organization undergo the required audit or audits? If the organization did not undergo the required audit or audits, explain why in Schedule O and describe any steps taken to undergo such audits. ..
3b
Yes
 
Form 990 (2010)
Additional Data


Software ID:  
Software Version:  
Form 990, Special Condition Description:
Special Condition Description
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.
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
Covenant Health
 
Employer identification number

62-1646734
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.)
1
2
3
4
5
section 170(b)(1)(A)(iv). (Complete Part II.)
6
7
8
9
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.)
10
11
e
f
g
(i) a person who directly or indirectly controls, either alone or together with persons described in (ii)
Yes
No
and (iii) below, the governing body of the the supported organization? ................
11g(i)
 
No
(ii) a family member of a person described in (i) above? ......................
11g(ii)
 
No
(iii) a 35% controlled entity of a person described in (i) or (ii) above? ................
11g(iii)
 
No
h
(i)
Name of supported organization 		(ii)
EIN 		(iii)
Type of organization (described on lines 1- 9 above or IRC section (see instructions)) 		(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?
Yes No Yes No Yes No
(1) Fort Loudoun Medical Ctr
  		621373691 3   No Yes   Yes   0
(2) Fort Sanders Perinatal Ctr
  		043760551 3   No Yes   Yes   0
(3) Fort Sanders Regional Med Ctr
  		620528340 3   No Yes   Yes   0
(4) LeConte Medical Ctr
  		621114867 3   No Yes   Yes   0
(5) Methodist Medical Ctr
  		620636239 3   No Yes   Yes   0
(6) Parkwest Medical Ctr
  		581897274 3   No Yes   Yes   0
(7) Roane County Medical Ctr
  		680673354 3   No Yes   Yes   0
(8) Thompson Cancer Survival Ctr
  		621250943 3   No Yes   Yes   0
(9) Covenant Homecare
  		621623114 9   No Yes   Yes   0
(10) Thompson Oncology Group
  		621619239 3   No Yes   Yes   0
(11) Morristown-Hamblen Healthcare System
  		620545814 3   No Yes   Yes   0
Total                 0

For Paperwork Reduction Act Notice, see the Instructions for Form 990.
Cat. No. 11285F
Schedule A (Form 990 or 990-EZ) 2010
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).            
12
12
 
13
Section C. Computation of Public Support Percentage
14
14
 
15
15
 
16a
b
17a
b
18
Schedule A (Form 990 or 990-EZ) 2010
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.).            
14
Section C. Computation of Public Support Percentage
15
15
 
16
16
 
Section D. Computation of Investment Income Percentage
17
17
 
18
18
 
19a
b
20
Schedule A (Form 990 or 990-EZ) 2010
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, Part IV, Supplemental Information: Explanation for Part I, Line 11(h)(iv): Covenant Health is operated or controlled in connection with all of its listed supported organizations, and its articles of organization require that it be operated to support or benefit these organizations. All of the above described organizations are governed by a board of directors with 100% overlap of board membership. Explanation for Part I, Line 11(h)(vii): Covenant Health operates to serve the interests of its member hospitals and the other non-profit health organizations named in Schedule A, Part I (the "Supported Organizations"). The organization's activities have been discussed in detail on Schedule O in response to Form 990, Part III, Lines 4a thru 4d. Covenant Health may also pay expenses on behalf of, provide operating cash to, or make a grant to one of its Supported Organizations. See Schedule R, Part V for information about transfers to controlled organizations.
 
 
 
Schedule A (Form 990 or 990-EZ) 2010

Additional Data


Software ID:  
Software Version:  
Schedule B
(Form 990, 990-EZ,
or 990-PF)
Department of the Treasury
Internal Revenue Service
Schedule of Contributors
Arrow Bullet Attach to Form 990, 990-EZ, or 990-PF.
OMB No. 1545-0047
2010
Name of organization
Covenant Health
 
Employer identification number

62-1646734
Organization type (check one):
Filers of:
Section:
Form 990 or 990-EZ





Form 990-PF




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—
Special Rules
......................... 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)

Schedule B (Form 990, 990-EZ, or 990-PF) (2010)
Page 1 of 1 of Part I
Name of organization
Covenant Health
  		Employer identification number

62-1646734
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




(Complete Part II if there is
a noncash contribution.)
(a)
No.		 (b)
Name, address, and ZIP + 4		 (c)
Aggregate contributions		 (d)
Type of contribution
 
 
 

     
 
   

$  




(Complete Part II if there is
a noncash contribution.)
(a)
No.		 (b)
Name, address, and ZIP + 4		 (c)
Aggregate contributions		 (d)
Type of contribution
 
 
 

     
 
   

$  




(Complete Part II if there is
a noncash contribution.)
(a)
No.		 (b)
Name, address, and ZIP + 4		 (c)
Aggregate contributions		 (d)
Type of contribution
 
 
 

     
 
   

$  




(Complete Part II if there is
a noncash contribution.)
(a)
No.		 (b)
Name, address, and ZIP + 4		 (c)
Aggregate contributions		 (d)
Type of contribution
 
 
 

     
 
   

$  




(Complete Part II if there is
a noncash contribution.)
(a)
No.		 (b)
Name, address, and ZIP + 4		 (c)
Aggregate contributions		 (d)
Type of contribution
 
 
 

     
 
   

$  




(Complete Part II if there is
a noncash contribution.)
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 II
Name of organization
Covenant Health
  		Employer identification number

62-1646734
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
Covenant Health
  		Employer identification number

62-1646734
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		 (c)
Use 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		 (c)
Use 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		 (c)
Use 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		 (c)
Use 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:  
SCHEDULE C
(Form 990 or 990-EZ)

Department of the Treasury
Internal Revenue Service
Political Campaign and Lobbying Activities

For Organizations Exempt From Income Tax Under section 501(c) and section 527
SchCMd Bullet Complete if the organization is described below.
SchCMd Bullet Attach to Form 990 or Form 990-EZ. SchCMd Bullet See separate instructions.
OMB No. 1545-0047
2010
Open to Public
Inspection
If the organization answered “Yes,” to Form 990, Part IV, Line 3, or Form 990-EZ, Part V, line 46 (Political Campaign Activities), then
Round Bullet Section 501(c)(3) organizations: Complete Parts I-A and B. Do not complete Part I-C.
Round Bullet Section 501(c) (other than section 501(c)(3)) organizations: Complete Parts I-A and C below. Do not complete Part I-B.
Round Bullet Section 527 organizations: Complete Part I-A only.
If the organization answered “Yes,” to Form 990, Part IV, Line 4, or Form 990-EZ, Part VI, line 47 (Lobbying Activities), then
Round Bullet Section 501(c)(3) organizations that have filed Form 5768 (election under section 501(h)) Complete Part II-A. Do not complete Part II-B.
Round Bullet Section 501(c)(3) organizations that have NOT filed Form 5768 (election under section 501(h)): Complete Part II-B. Do not complete Part II-A.
If the organization answered “Yes,” to Form 990, Part IV, Line 5 (Proxy Tax) or Form 990-EZ, Part V, line 35a (Proxy Tax), then
Round Bullet Section 501(c)(4), (5), or (6) organizations: Complete Part III.
Name of the organization
Covenant Health
 
Employer identification number

62-1646734
Part I-A
Complete if the organization is exempt under section 501(c) or is a section 527 organization.

1
Provide a description of the organization's direct and indirect political campaign activities on behalf of or in opposition to candidates for public office in Part IV.
2
Political expenditures ....................................SchCMd Bullet
$  
3
Volunteer hours ........................................
 

Part I-B
Complete if the organization is exempt under section 501(c)(3).
1
Enter the amount of any excise tax incurred by the organization under section 4955 .........SchCMd Bullet
$  
2
Enter the amount of any excise tax incurred by organization managers under section 4955 ......SchCMd Bullet
$  
3
If the organization incurred a section 4955 tax, did it file Form 4720 for this year? ..............
4a
Was a correction made? .........................................
b
If "Yes," describe in Part IV.
Part I-C
Complete if the organization is exempt under section 501(c) except section 501(c)(3).
1
Enter the amount directly expended by the filing organization for section 527 exempt function activities SchCMd Bullet
$  
2
Enter the amount of the filing organization's funds contributed to other organizations for section 527 exempt funtion activities ....................................SchCMd Bullet

$  
3
Total exempt function expenditures. Add lines 1 and 2. Enter here and on Form 1120-POL, line 17b..SchCMd Bullet

$  
4
Did the filing organization file Form 1120-POL for this year? ..........................
5
Enter the names, addresses and employer identification number (EIN) of all section 527 political organizations to which the filing
organization made payments. For each organization listed, enter the amount paid from the filing organization’s funds. Also enter the amount of political contributions received that were promptly and directly delivered to a separate political organization, such as a separate segregated fund or a political action committee (PAC). If additional space is needed, provide information in Part IV.
(a) Name (b) Address (c) EIN (d) Amount paid from filing organization's funds. If none, enter -0-. (e) Amount of political contributions received and promptly and directly delivered to a separate political organization. If none, enter -0-.










For Privacy Act and Paperwork Reduction Act Notice, see the instructions for Form 990.
Cat. No. 50084S
Schedule C (Form 990 or 990-EZ) 2010

Schedule C (Form 990 or 990-EZ) 2010
Page 2
Part II-A
Complete if the organization is exempt under section 501(c)(3) and filed Form 5768 (election under section 501(h)).
A Check
B Check
Limits on Lobbying Expenditures
(The term "expenditures" means amounts paid or incurred.) 		(a) Filing
Organization's
Totals 		(b) Affiliated Group
Totals
1a Total lobbying expenditures to influence public opinion (grass roots lobbying) ......    
b Total lobbying expenditures to influence a legislative body (direct lobbying) .......    
c Total lobbying expenditures (add lines 1a and 1b) ...................    
d Other exempt purpose expenditures ........................    
e Total exempt purpose expenditures (add lines 1c and 1d) ...............    
f Lobbying nontaxable amount. Enter the amount from the following table in both
columns.		    
  If the amount on line 1e, column (a) or (b) is:The lobbying nontaxable amount is:    
  Not over $500,00020% of the amount on line 1e.    
  Over $500,000 but not over $1,000,000$100,000 plus 15% of the excess over $500,000.    
  Over $1,000,000 but not over $1,500,000$175,000 plus 10% of the excess over $1,000,000.    
  Over $1,500,000 but not over $17,000,000$225,000 plus 5% of the excess over $1,500,000.    
  Over $17,000,000$1,000,000.    
       
g Grassroots nontaxable amount (enter 25% of line 1f) .................    
h Subtract line 1g from line 1a. If zero or less, enter -0-. ................    
i Subtract line 1f from line 1c. If zero or less, enter -0-. ................    
j If there is an amount other than zero on either line 1h or line 1i, did the organization file Form 4720 reporting
section 4911 tax for this year? ......................................

4-Year Averaging Period Under Section 501(h)
(Some organizations that made a section 501(h) election do not have to complete all of the five
columns below. See the instructions for lines 2a through 2f on page 4.)
Lobbying Expenditures During 4-Year Averaging Period
  Calendar year (or fiscal year
beginning in) 		(a) 2007 (b) 2008 (c) 2009 (d) 2010 (e) Total
             
2a Lobbying non-taxable amount          
             
b Lobbying ceiling amount
(150% of line 2a, column(e)) 		         
             
c Total lobbying expenditures          
             
d Grassroots non-taxable amount          
             
e Grassroots ceiling amount
(150% of line 2d, column (e))		          
             
f Grassroots lobbying expenditures          
Schedule C (Form 990 or 990-EZ) 2010


Schedule C (Form 990 or 990-EZ) 2010
Page 3
Part II-B
Complete if the organization is exempt under section 501(c)(3) and has NOT filed Form 5768 (election under section 501(h)).
(a)
Yes
No
(b)
Amount
1
During the year, did the filing organization attempt to influence foreign, national, state or local legislation, including any attempt to influence public opinion on a legislative matter or referendum, through the use of:
a
Volunteers? .........................................
Yes
 
b
Paid staff or management (include compensation in expenses reported on lines 1c through 1i)? ....
Yes
 
c
Media advertisements? ....................................
 
No
 
d
Mailings to members, legislators, or the public? .........................
Yes
 
50
e
Publications, or published or broadcast statements? .......................
 
No
 
f
Grants to other organizations for lobbying purposes? .......................
 
No
 
g
Direct contact with legislators, their staffs, government officials, or a legislative body? ........
Yes
 
9,261
h
Rallies, demonstrations, seminars, conventions, speeches, lectures, or any similar means? ......
 
No
 
i
Other activities? If "Yes," describe in Part IV ..........................
Yes
 
1,600
j
Total. lines 1c through 1i ...................................
10,911
2a
Did the activities in line 1 cause the organization to be not described in section 501(c)(3)? .....
 
No
b
If "Yes," enter the amount of any tax incurred under section 4912 .................
 
c
If "Yes," enter the amount of any tax incurred by organization managers under section 4912 .....
 
d
If the filing organization incurred a section 4912 tax, did it file Form 4720 for this year? .......
 
 
Part III-A
Complete if the organization is exempt under section 501(c)(4), section 501(c)(5), or section 501(c)(6).
Yes
No
1
Were substantially all (90% or more) dues received nondeductible by members? ................
1
 
 
2
Did the organization make only in-house lobbying expenditures of $2,000 or less? ................
2
 
 
3
Did the organization agree to carryover lobbying and political expenditures from the prior year? ..........
3
 
 
Part III-B
Complete if the organization is exempt under section 501(c)(4), section 501(c)(5), or section 501(c)(6) if BOTH Part III-A, lines 1 and 2 are answered “No” OR if Part III-A, line 3 is answered “Yes”.
1
Dues, assessments and similar amounts from members .....................
1
 
2
Section 162(e) non-deductible lobbying and political expenditures (do not include amounts of political
expenses for which the section 527(f) tax was paid).
a
Current year .........................................
2a
 
b
Carryover from last year ....................................
2b
 
c
Total ...........................................
2c
 
3
Aggregate amount reported in section 6033(e)(1)(A) notices of nondeductible section 162(e) dues .
3
 
4
If notices were sent and the amount on line 2c exceeds the amount on line 3, what portion of the excess does the organization agree to carryover to the reasonable estimate of nondeductible lobbying and political expenditure next year? ................................
4
 
5
Taxable amount of lobbying and political expenditures (see instructions) ..............
5
 
Part IV
Supplemental Information
Complete this part to provide the descriptions required for Part l-A, line 1; Part l-B, line 4; Part l-C, line 5; and Part ll-B, line 1i.
Also, complete this part for any additional information.
Identifier Return Reference Explanation
Explanation of Other Lobbying Activities: Part II-B, Line 1i: Covenant Health indirectly conducts lobbying activities through various membership organizations. A portion of membership dues paid is included in the amount on Line 1i.
Schedule C (Form 990 or 990EZ) 2010

Additional Data


Software ID:  
Software Version:  

SCHEDULE D
(Form 990)
Department of the Treasury
Internal Revenue Service
Supplemental Financial Statements
SchDMd Bullet 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
Covenant Health
 
Employer identification number

62-1646734
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 .......    
5
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? ............
6
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. ...................................
Part II
Conservation Easements. Complete if the organization answered "Yes" to Form 990, Part IV, line 7.
1
Purpose(s) of conservation easements held by the organization (check all that apply).
2
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.
Held at the End of the 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  
3
Number of conservation easements modified, transferred, released, extinguished, or terminated by the organization during
the taxable year SchDMd Bullet  
4
Number of states where property subject to conservation easement is located SchDMd Bullet  
5
Does the organization have a written policy regarding the periodic monitoring, inspection, handling of violations, and
enforcement of the conservation easements it holds? .............................
6
Staff and volunteer hours devoted to monitoring, inspecting and enforcing conservation easements during the year SchDMd Bullet  
7
Amount of expenses incurred in monitoring, inspecting, and enforcing conservation easements during the year SchDMd Bullet $  
8
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)? ....................................
9
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.
1a
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.
b
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 $  
2
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:
a
Revenues included in Form 990, Part VIII, line 1 ..........................SchDMd Bullet $  
b
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

Schedule D (Form 990) 2010
Page 2
Part III
Organizations Maintaining Collections of Art, Historical Treasures, or Other Similar Assets (continued)
3
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):
a
d
b
e
 
c
4
Provide a description of the organization’s collections and explain how they further the organization’s exempt purpose in
Part XIV.
5
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?........
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.
1a
Is the organization an agent, trustee, custodian or other intermediary for contributions or other assets not
included on Form 990, Part X? ....................................
b
If "Yes," explain the arrangement in Part XIV and complete the following table:
Amount
c Beginning balance ................................. 1c  
d Additions during the year .............................. 1d  
e Distributions during the year ............................. 1e  
f Ending balance ................................... 1f  
2a
Did the organization include an amount on Form 990, Part X, line 21? .....................
b
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 (d)Three Years Back (e)Four Years Back
1a Beginning of year balance ....      
b Contributions ........      
c Investment earnings or losses ...      
d Grants or scholarships .....      
e Other expenditures for facilities
and programs ........ 		     
f Administrative expenses ....      
g End of year balance ......      
2
Provide the estimated percentage of the year end balance held as:
a
Board designated or quasi-endowment: SchDMd Bullet  
b
Permanent endowment: SchDMd Bullet  
c
Term endowment: SchDMd Bullet  
3a
Are there endowment funds not in the possession of the organization that are held and administered for the
organization by:

Yes
No
(i) unrelated organizations ........................
3a(i)
 
 
(ii) related organizations ........................
3a(ii)
 
 
b
If "Yes" to 3a(ii), are the related organizations listed as required on Schedule R? .........
3b
 
 
4
Describe in Part XIV the intended uses of the organization's endowment funds.
Part VI
Investments—Land, 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 .................   5,499,641 5,499,641
b Buildings ................   13,302,635 1,463,505 11,839,130
c Leasehold improvements ............   1,408,322 1,059,290 349,032
d Equipment ................   15,027,456 11,638,874 3,388,582
e Other .................   9,252,316   9,252,316
Total. Add lines 1a-1e. (Column (d) should equal Form 990, Part X, column (B), line 10(c).)........SchDMdBullet 30,328,701
Schedule D (Form 990) 2010

Schedule D (Form 990) 2010
Page 3
Part VII
Investments—Other 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.)Small Bullet  
Part VIII
Investments—Program 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.)Small Bullet  
Part IX
Other Assets. See Form 990, Part X, line 15.
(a) Description (b) Book value
(1) Accrued Interest Receivable 5,313,242
(2) Assets Limited as to Use 1,902,441
(3) Bond Issuance Costs, Net 20,751,752
(4) Deferred Compensation 3,108,832
(5) Due from Affiliates 165,934,230
(6) Long Term Deposit 97,216
(7) Other Receivables 1,130,773


Total. (Column (b) should equal Form 990, Part X, col.(B) line 15.)...........Small Bullet 198,238,486
Part X
Other Liabilities. See Form 990, Part X, line 25.
1.(a) Description of Liability (b) Amount
Federal Income Taxes  
Long-Term ASO Agreement 4,569,435
Long-Term Deferred Compensation 3,970,995
Long-Term Reserve for Malpractice 15,716,172
Long-Term Reserve for Workers Comp 1,374,549





Total. (Column (b) should equal Form 990, Part X, col.(B) line 25.)Small Bullet 25,631,151
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

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
Schedule D (Form 990) 2010

Additional Data


Software ID:  
Software Version:  




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
Covenant Health
 
Employer identification number
62-1646734
Part I
General Information on Grants and Assistance
1
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? ....................................
2
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 (e) Amount of non-cash
assistance		 (f) Method of valuation
(book, FMV, appraisal,
other)		 (g) Description of
non-cash assistance		 (h) Purpose of grant
or assistance
(1) American Cancer Society871 Weisgarber Road
Knoxville,TN37909 		13-1788491 501(c)(3) 10,000       Sponsorship of 2010 Hope Gala
(2) American Heart Association4708 Papermill Road
Knoxville,TN37909 		13-5613797 501(c)(3) 25,000       Sponsorship of 2010 Heart Walk
(3) Boys and Girls Club of the TN Valley220 Carrick St Suite 318
Knoxville,TN37921 		62-0475743 501(c)(3) 7,682       Drug screenings
(4) Catholic Charities of East TN Inc3009 Lake Brook Blvd
Knoxville,TN37909 		62-1377551 501(c)(3) 33,750       Support of HUD housing and sponsorship of fundraisers
(5) East TN Children's HospitalPO Box 15016
Knoxville,TN37901 		62-6002604 501(c)(3) 6,681       Sponsorship of fundraisers
(6) East TN Economic Development Agency10215 Technology Dr Ste 202
Knoxville,TN37932 		62-1158958 501(c)(3) 35,000       General support
(7) Fort Sanders Foundation280 Ft Sanders West Blvd Ste 100
Knoxville,TN37922 		62-1748601 501(c)(3) 12,500       Fundraisers benefiting Patricia Neal Rehab. Center, Peninsula, & the Hope Center
(8) Great Schools PartnershipPO Box 2188
Knoxville,TN37902 		76-6206166 509(a)(3) 50,000       General support
(9) Holston Home for ChildrenPO Box 188
Greeneville,TN37744 		62-0515531 501(c)(3) 5,800       General support; fundraising dinner
(10) Innovation Valley Inc17 Market Square 201
Knoxville,TN37902 		62-1624472 501(c)(3) 60,000       Funding for Innovation Valley, Inc. - regional economic & technological development
(11) Interfaith Health Clinic315 Gill Avenue
Knoxville,TN37917 		58-1947641 501(c)(3) 61,000       General support, fundraisers
(12) Knoxville Academy of Medicine Foundation115 Suburban Road
Knoxville,TN37923 		62-1458199 501(c)(3) 20,000       Knoxville Area Project Access - medical care for needy
(13) Knoxville Medical Mission Foundation1932 Historic Ferry Way
Knoxville,TN37922 		30-0197352 501(c)(3) 10,000       General support
(14) Knoxville Symphony OrchestraPO Box 360
Knoxville,TN37901 		62-6008097 501(c)(3) 12,820       Music & Wellness Program; Young People's Concerts; general support
(15) Knoxville Track ClubPO Box 32035
Knoxville,TN37930 		62-0731345 501(c)(3) 50,000       2011 Knoxville Marathon and Covenant Kids' Run
(16) Komen Knoxville Race for Cure9724 Kingston Pike Ste 705
Knoxville,TN37922 		75-1835298 501(c)(3) 12,000       Race sponsor for organization supporting breast cancer research and awareness
(17) Robert F Thomas FoundationPO Box 4395
Sevierville,TN37864 		58-1537582 501(c)(3) 8,000       Fundraisers to benefit Leconte Medical Center
(18) Rotary Foundation of Knoxville625 Market Street Suite 1400
Knoxville,TN37902 		62-6047101 501(c)(3) 20,000       Honor Air Knoxville program; general support
(19) Sacred Heart Church711 S Northshore Drive
Knoxville,TN37919 		62-0572260 501(c)(3) 13,000       Hope for Haiti medical outreach; general support for fundraising
(20) Junior League of Knoxville6739 Baum Dr
Knoxville,TN37919 		62-6051012 501(c)(3) 25,000       General support
(21) Knox Area Golf Charities10646 Dutchtown Rd
Knoxville,TN37932 		20-8329413   15,000       Sponsor fundraising event
(22) Variety Children's Charity of East TN7132 Regal Lane
Knoxville,TN37918 		33-1025696 501(c)(3) 25,000       General support
(23) Morristown Hamblen Hospital FoundationPO Box 1178
Morristown,TN37816 		62-1697090 501(c)(6) 6,200       General support fundraising
(24) Wellness Community702 Lindsay Place
Knoxville,TN37919 		58-1846210 501(c)(3) 15,000       General support
(25) Second Harvest Food Bank922 Deleware Ave
Knoxville,TN37921 		58-1450139 501(c)(3) 25,000       General support
(26) Dogwood Arts Festival602 S Gay Street
Knoxville,TN37902 		62-6074113 501(c)(3) 20,000       Sponsor 2010 & 2011 Blooms & Bikes ride and Dogwood Mile race
(27) City of Knoxville400 Main Street
Knoxville,TN37901 		  50,000       General support
(28) Emerald Youth Foundation1718 N Central St
Knoxville,TN37917 		62-1474791 501(c)(3) 10,000       Programs for at-risk youth
(29) Thompson Cancer Center Foundation1915 White Ave
Knoxville,TN37916 		58-2130450 501(c)(3) 7,000       2010 Buddy's Race for a Cure
2
Enter total number of section 501(c)(3) and government organizations ......................... Bullet Image
25
3
Enter total number of other organizations ................................ . Bullet Image
3
For Privacy Act and Paperwork Reduction Act Notice, see the Instructions for Form 990.
Cat. No. 50055P
Schedule I (Form 990) 2010

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) Funeral assistance to family of Parkwest Medical Center shooting victim. 1 25,000      













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: Eligibility and selection criteria are determined by a review of a written proposal or similar documentation submitted by the requesting organization. Intended use of funds must be stated or evident in the proposal/documentation. Recipient organizations generally verify use of funds in one or more of the following ways: event publicity, follow-up reports or newsletters, sponsor recognition at a program or event, itemized receipts, or year-end summaries.
Schedule I (Form 990) 2010


Additional Data


Software ID:  
Software Version:  


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
Covenant Health
 
Employer identification number

62-1646734
Part I
Questions Regarding Compensation
Yes
No
1a
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.
b
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....
1b
Yes
 
2
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? ....
2
Yes
 
3
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.
4
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:
a
Receive a severance payment or change-of-control payment? ...............
4a
 
No
b
Participate in, or receive payment from, a supplemental nonqualified retirement plan? ........
4b
Yes
 
c
Participate in, or receive payment from, an equity-based compensation arrangement? ........
4c
 
No
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.
5
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:
a
The organization? ...........................
5a
 
No
b
Any related organization? .........................
5b
 
No
If "Yes," to line 5a or 5b, describe in Part III.
6
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:
a
The organization? ...........................
6a
 
No
b
Any related organization? .........................
6b
 
No
If "Yes," to line 6a or 6b, describe in Part III.
7
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 ............
7
 
No
8
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 .............................
8
 
No
9
If "Yes" to line 8, did the organization also follow the rebuttable presumption procedure described in Regulations section 53.4958-6(c)? .........................
9
 
 
For Privacy Act and Paperwork Reduction Act Notice, see the Intructions for Form 990
Cat. No. 50053T
Schedule J (Form 990) 2010

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
(i) Base compensation (ii) Bonus & incentive compensation (iii) Other reportable compensation
(1) Anthony L Spezia (i)
(ii)		 690,560
0 		652,524
0 		63,252
0 		216,512
0 		29,869
0 		1,652,717
0 		156,680
0
(2) John T Geppi (i)
(ii)		 367,693
0 		268,268
0 		39,158
0 		9,800
0 		31,680
0 		716,599
0 		0
0
(3) James D Vandersteeg (i)
(ii)		 386,512
0 		211,264
0 		29,728
0 		9,800
0 		27,333
0 		664,637
0 		0
0
(4) Samuel R Buscetta (i)
(ii)		 240,691
0 		194,884
0 		42,356
0 		9,800
0 		27,034
0 		514,765
0 		0
0
(5) William M Ward (i)
(ii)		 210,248
0 		73,321
0 		30,876
0 		9,800
0 		28,302
0 		352,547
0 		0
0
(6) Larry R Lassiter (i)
(ii)		 257,399
0 		96,325
0 		29,215
0 		9,800
0 		26,347
0 		419,086
0 		0
0
(7) Keith Altshuler (i)
(ii)		 238,746
0 		102,297
0 		33,636
0 		15,034
0 		35,859
0 		425,572
0 		0
0
(8) Michael R Belbeck Jr (i)
(ii)		 245,862
0 		76,985
0 		29,612
0 		14,724
0 		29,242
0 		396,425
0 		0
0
(9) Gordon Lintz (i)
(ii)		 176,792
0 		64,924
0 		27,620
0 		10,855
0 		13,543
0 		293,734
0 		0
0
(10) Virginia K Morrow (i)
(ii)		 136,844
0 		72,148
0 		35,607
0 		9,737
0 		21,154
0 		275,490
0 		0
0






Schedule J (Form 990) 2010

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 & gross-up payments are provided to certain executives and managers. These benefits are treated as taxable compensation to the recipients. Officers and Board members attending official Board retreats are offered a discretionary spending allowance that may be used for incidental spending and/or companion travel. The allowance is treated as taxable compensation to the recipient. In addition, Board members receive tax indemnification payments related to reportable compensation from the spending allowances, which are also treated as taxable compensation.
  Part I, Line 4b Part I, Line 4b: Anthony L. Spezia $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.
Schedule J (Form 990) 2010

Additional Data


Software ID:  
Software Version:  
Schedule K
(Form 990)
Department of the Treasury
Internal Revenue Service
Supplemental Information on Tax Exempt Bonds
SchKMediumBullet Complete if the organization answered "Yes" to Form 990, Part IV, line 24a. Provide descriptions,
explanations, and any additional information in Schedule O (Form 990).
SchKMediumBullet Attach to Form 990. SchKMediumBullet See separate instructions.
OMB No. 1545-0047
2010
Open to Public
Inspection
Name of the organization
Covenant Health
 
Employer identification number
62-1646734
Part I
Bond Issues
(a) Issuer Name (b) Issuer EIN (c) CUSIP # (d) Date Issued (e) Issue Price (f) Description of Purpose (g) Defeased (h) On
Behalf of
Issuer 		(i) Pool
financing
Yes No Yes No Yes No
A Health Educ & Housing Facil Brd of Knox Co
  		62-1220275 499523UUO 12-20-2006 46,245,448 See Schedule O.   X   X   X
B Health Educ & Housing Facil Brd of Knox Co
  		62-1220275 499527AH2 12-20-2006 160,500,000 See Schedule O.   X   X   X
Part II
Proceeds
A B C D
1 Amount of bonds retired. . . . .        
2 Amount of bonds defeased . . . .        
3 Total proceeds of issue . . . . 46,245,448 160,500,000    
4 Gross proceeds in reserve funds . .        
5 Capitalized interest from proceeds.        
6 Proceeds in refunding escrow. . . . . 23,755,001      
7 Issuance costs from proceeds . . . 506,941 1,355,613    
8 Credit enhancement from proceeds. 6,128,925 6,128,925    
9 Working capital expenditures from proceeds . .        
10 Capital expenditures from proceeds . . 21,983,506 153,015,462    
11 Other spent proceeds . .        
12 Other unspent proceeds. . .        
13 Year of substantial completion . . . 2007 2010
Yes No Yes No Yes No Yes No
14 Were the bonds issued as part of a current refunding issue?   X   X        
15 Were the bonds issued as part of an advance refunding issue? X     X        
16 Has the final allocation of proceeds been made? . . X   X          
17 Does the organization maintain adequate books and records to support the final allocation of proceeds? . X   X          
Part III
Private Business Use
A B C D
Yes No Yes No Yes No Yes No
1 Was the organization a partner in a partnership, or a member of an LLC, which owned property financed by tax-exempt bonds? . . .   X   X        
2 Are there any lease arrangements that may result in private business use of bond-financed property? . . . . .   X   X        
For Privacy Act and Paperwork Reduction Act Notice, see the Instructions for Form 990.
Cat. No. 50193E
Schedule K (Form 990) 2010
Schedule K (Form 990) 2010
Page 2
Part III
Private Business Use (Continued)
A B C D
Yes No Yes No Yes No Yes No
3a Are there any management or service contracts that may result in private business use?   X   X        
b Are there any research agreements that may result in private business use of bond-financed property? . .   X   X        
c Does the organization routinely engage bond counsel or other outside counsel to review any management or service contracts or research agreements relating to the financed property? . X   X          
4 Enter the percentage of financed property used in a private business use by entities other than a section 501(c)(3) organization or a state or local government . . . . . . . . . . . . . SchKMediumBullet 0 % 0 %    
5 Enter the percentage of financed property used in a private business use as a result of unrelated trade or business activity carried on by your organization, another section 501(c)(3) organization, or a state or local government . SchKMediumBullet 0 % 0 %    
6 Total of lines 4 and 5 . . .. . . . . . 0 % 0 %    
7 Has the organization adopted management practices and procedures to ensure the post-issuance compliance of its tax-exempt bond liabilities? X   X          
Part IV
Arbitrage
A B C D
Yes No Yes No Yes No Yes No
1 Has a Form 8038-T, Arbitrage Rebate, Yield Reduction and Penalty in Lieu of Arbitrage Rebate, been filed with respect to the bond issue? . . .   X   X        
2 Is the bond issue a variable rate issue?   X X          
3a Has the organization or the governmental issuer entered into a hedge with respect to the bond issue?   X   X        
b Name of provider .  
  		 
  		 
  		 
 
c Term of hedge . .        
d Was the hedge superintegrated? .                
e Was a hedge terminated? .                
4a Were gross proceeds invested in a GIC? .   X   X        
b Name of provider .  
  		 
  		 
  		 
 
c Term of GIC . .        
d Was the regulatory safe harbor for establishing the fair market value of the GIC satisfied? .                
5 Were any gross proceeds invested beyond an available temporary period? .   X   X        
6 Did the bond issue qualify for an exception to rebate? . . .   X   X        
Schedule K (Form 990) 2010

Schedule K (Form 990) 2010
Page 3
Part V
Supplemental Information
Complete this part to provide additional information for responses to questions on Schedule K (see instructions).
Identifier Return Reference Explanation
Schedule K (Form 990) 2010

Additional Data


Software ID:  
Software Version:  

SCHEDULE M
(Form 990)

Department of the Treasury
Internal Revenue Service
NonCash Contributions
Right pointing arrow large imageComplete if the organization answered "Yes" on Form 990, Part IV, lines 29 or 30.
Right pointing arrow large image Attach to Form 990.
OMB No. 1545-0047
2010
Open to Public Inspection
Name of the organization
Covenant Health
 
Employer identification number

62-1646734
Part I
Types of Property
(a)
Check if applicable 		(b)
Number of Contributions or items contributed 		(c)
Contribution amounts reported on
Form 990, Part VIII, line 1g 		(d)
Method of determining
contribution amounts
1 Art—Works of art .... X 21 5,836 Retail value,expert
2 Art—Historical treasures .        
3 Art—Fractional interests ..        
4 Books and publications ..      
5 Clothing and household
goods ....... 		X 26,292 Various
6 Cars and other vehicles ..        
7 Boats and planes ....        
8 Intellectual property ...        
9 Securities—Publicly traded .        
10 Securities—Closely held stock .        
11 Securities—Partnership, LLC,
or trust interests .... 		       
12 Securities—Miscellaneous ..        
13 Qualified conservation
contribution—Historic
structures ..... 		       
14 Qualified conservation
contribution—Other ... 		       
15 Real estate—Residential .        
16 Real estate—Commercial ..        
17 Real estate—Other ...        
18 Collectibles ..... X 1 499 Comparables
19 Food inventory ... X 3 112  
20 Drugs and medical supplies .        
21 Taxidermy ......        
22 Historical artifacts ....        
23 Scientific specimens ..        
24 Archeological artifacts ...        
25 Other Right pointing arrow large image ( Gift cards/certificates/tickets ) X 22 15,949 Retail or face value
26 Other Right pointing arrow large image ( Donated services/use of facilities ) X 4 5,704 Retail value
27 Other Right pointing arrow large image( )
28 Other Right pointing arrow large image ( )
29
Number of Forms 8283 received by the organization during the tax year for contributions
for which the organization completed Form 8283, Part IV, Donee Acknowledgement ...
29
 
Yes
No
30a
During the year, did the organization receive by contribution any property reported in Part I, lines 1-28 that it
must hold for at least three years from the date of the initial contribution, and which is not required to be used
for exempt purposes for the entire holding period? ..................
30a
 
No
b
If "Yes," describe the arrangement in Part II.
31
Does the organization have a gift acceptance policy that requires the review of any non-standard contributions?
31
 
No
32a
Does the organization hire or use third parties or related organizations to solicit, process, or sell non-cash
contributions? ............................
32a
 
No
b
If "Yes," describe in Part II.
33
If the organization did not report revenues in column (c) for a type of property for which column (a) is checked,
describe in Part II.
For Privacy Act and Paperwork Reduction Act Notice, see the Instructions for Form 990.
Cat. No. 51227J
Schedule M (Form 990) 2010
Schedule M (Form 990) 2010
Page 2
Part II
Supplemental Information. Complete this part to provide the information required by Part I, lines 30b,
32b, and 33. Also complete this part for any additional information.
Identifier Return Reference Explanation
Schedule M (Form 990) 2010
Additional Data


Software ID:  
Software Version:  
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
Covenant Health
 
Employer identification number

62-1646734
Identifier Return Reference Explanation
Form 990, Part VI, Section A, line 4   The following changes were made to the corporate bylaws of Covenant health in 2010: 1. Qualifications of Directors The following additional qualifications were added in order to be eligible for election to the board of directors: a. an exception to the age limit of 75 was made for any initial director nominated for office by the Local Board of Morristown-Hamblen Hospital Association, a nonprofit, tax exempt hospital of which Covenant Health became the sole member in 2010 ("MHHA"). b. a person (other than the CEO) may not be employed by Covenant Health or any Supported Organization, any Covenant Organization or any of their affiliates. c. unless waived by the board of directors, a "conflicted person" may not serve as a director. A "conflicted person" is an individual who (i) has a direct or indirect (through one or more intermediaries) financial interest in any competitor of the corporation, any Supported Organization, Covenant Organization or any of their affiliates (individually "Covenant Entity"), (ii) has a direct or indirect (through one or more intermediaries) financial arrangement with any competitor of a Covenant Entity, (iii) serves as an officer of the medical staff of any competitor of a Covenant Entity, (iv) serves as a director or trustee of any competitor of Covenant Entity or (v) has an immediate family member who has any such interest, affiliation or relationship. d. other requirements and qualifications may be added from time to time by action of the board of directors. 2. Removal of Directors An elected director can be removed without cause on a vote of 3/4 of the other board members then serving and for cause by a majority vote of other members then serving. 3. MHHA Directors Pursuant to an agreement under which Covenant Health became the sole member of MHHA, it was agreed that two voting directors of the Covenant Board would be elected form a slate of nominees made by the Local Board of MHHA. The following new Section 2.9 was added to the bylaws to address this requirement: SECTION 2.9 Morristown-Hamblen Directors. There shall at all times be two voting directors serving on the board who have been elected from a slate of Qualified Individuals nominated by the Local Board of Morristown-Hamblen Hospital Association ("MH"), except during periods when a vacancy shall exist with respect to one or more of such board seats. In addition, the chief of staff of MH will serve on the System Quality Improvement and Professional Relations Committee. (a) Initially, the Local Board shall nominate to the board a slate of five (5) Qualified Individuals selected from those persons who are members of the Local Board at the time of nomination, and the board shall elect from among such Qualified Individuals two (2) individuals (each an "MH Director") who shall serve as voting members of the board for such term as the board shall specify. (b) Thereafter, upon the chairman advising the Local Board chairman that the term of one MH Director is set to expire, or that the seat of one MH Director has been or will be vacated, then at its next meeting, the Local Board shall nominate to the board a slate of no less than three (3) Qualified Individuals (at least two (2) of whom must be independent community leaders from the Hospital's market area). Upon the board advising the Local Board chairman that the terms of two MH Directors are set to expire, or that the seats of two MH Directors have been or will be vacated, then at its next meeting, the Local Board shall nominate to the board a slate of no less than five (5) Qualified Individuals (at least four (4) of whom must be independent community leaders from the Hospital's market area). (c) Except for the individuals nominated pursuant to Subsection (a), individuals nominated by the Local Board need not be members of the Local Board. (d) In the event the board chairman advises the Local Board chairman that the board has determined, in good faith, that one or more persons nominated by the Local Board is not a Qualified Individual it may, at its option, request that the Local Board nominate another person for such office who is a Qualified Individual. (e) To be eligible for nomination to the board as a MH Director, an individual must satisfy all of the following conditions (any individual satisfying all of such conditions being referred to herein as a "Qualified Individual"); (i) such individual must be a natural person who, at the time of election, shall be at least 28 and no more than 75 years of age provided that such age limitation shall not apply to any initial Local Director elected pursuant to Subsection (a); (ii) such individual shall, in the determination of the board, (1) exemplify qualities of honesty, integrity, and sound moral character and (2) be committed to support and uphold the purposes, mission and general policies of the corporation, and (3) have a willingness and ability to devote the necessary time to board activities; (iii) such individual shall not be employed by MH or by this corporation or any of their affiliates; (iv) such individual, in the determination of the board, is not a "conflicted person," meaning an individual who (i) has a direct or indirect (through one or more intermediaries) financial interest in any competitor of the corporation, MH, any Supported Organization or any of their affiliates (individually "Covenant Entity"), (ii) has a direct or indirect (through one or more intermediaries) financial arrangement with any competitor of a Covenant Entity, (iii) serves as an officer of the medical staff of any competitor of a Covenant Entity, (iv) serves as a director or trustee of any competitor of Covenant Entity or (v) has an immediate family member who has any such interest, affiliation or relationship. Notwithstanding the foregoing, any existing or potential conflict of interest may be submitted in advance to the board in request of a waiver from the above qualifications, which may be granted or withheld in the sole and absolute discretion of board; (v) such individual, in the determination of the board, is and remains fully committed to and supportive of MH's affiliation with Covenant and Covenant's plans and initiatives for, and the Covenant board's governance of, MH; and (vi) such individual meets the requirements and qualifications for being a voting member of the board under these bylaws and board policies in effect from time to time. (f) Any MH Director may be removed by a majority vote of the remaining members of the Covenant board then serving if such person ceases to be a Qualified Individual during such individual's term of service, and any such removal shall create a vacancy to be filled as provided by these bylaws. 4. Compensation Committee of the Board of Directors Responsibilities of the Executive Committee of the Board of Directors related to (i) approving the compensation of executive employees of Covenant Health and the establishment of related compensation policies, rules and procedures, (ii) evaluating the performance and determining the compensation of the President and CEO and (iii) review of all executive compensation policies, plans, benefits and perquisites was transferred to a new standing board committee known as the Compensation Committee comprised of the Chairman of the Board and no less than four Independent board members appointed by the Chairman. 5. Corporate Officers The offices of first vice chairman of the board and second vice chairman of the board were eliminated and the office of integrity compliance officer was added and the duties of such officer included. The President/CEO was given authority to appoint officers of Supported organizations and Covenant Organizations in accordance with the bylaws of such organizations.
Form 990, Part VI, Section B, line 11   A summary of Covenant Health'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 health care 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 hand book covers among other subjects, conflicts of interest. Additionally, managers are required to complete and sign an annual management certification that addresses conflicts of interest. Board members' conflicts of interests are dealt with in the corporate bylaws, and Board members are required to complete and sign a conflict of interest questionnaire on an annual basis. The Integrity Compliance Office maintains records that contain conflict of interest information obtained from Board members, officers and employees. These records are available to be queried prior to engaging in business transactions. The Integrity Compliance Officer initially reviews all conflict of interest data. Based on this information, the officer determines what conflicts of interest exist at that point in time. Between times when surveys are collected Board members are expected to disclose any new conflicts that have arisen that affect pending Board decisions. As well, managers and other employees are expected to report conflicts to the Integrity Compliance Officer as they arise. Depending on the nature of the conflict and the circumstances surrounding the conflict and transaction, the Integrity Compliance Officer, Senior Leadership, or the Board of Directors may review the conflict of interest. Where appropriate these bodies may also consult legal counsel. Restrictions imposed on persons with a conflict of interest are determined on a case by case basis. For Covenant Health employees, the Integrity Compliance Officer in conjunction with Executive Leadership determines how to appropriately handle the conflict. In any conflict involving a Board member, such member is expected to excuse himself or herself from voting on matters that give rise to the conflict.
  Form 990, Part VI, Section B, line 15 Form 990, Part VI, Section B, Line 15a: Annual compensation for Covenant Health's President and CEO, Anthony L. Spezia, is determined by the Compensation Committee of the Covenant Health Board of Directors ("the Committee"), which is composed of independent members of the board and chaired by the chairman of the board. The Committee is guided in its decision-making process by an independent, nationally recognized executive compensation consultant experienced in advising nonprofit hospital boards (" the consultant") whose services include: (1) providing pay comparisons with market comparables; (2) recommending salary ranges and annual base salary adjustments; (3) designing incentive compensation and deferred compensation components of the CEO's total compensation package; (4) reviewing benefits and perquisites; and (5) certifying as to the reasonableness of total annual compensation. The consultant analyzes and makes recommendations with respect to the CEO's total compensation package through analysis of CEO compensation data for comparable healthcare nonprofit health systems in the United States. The systems selected for comparison are similar to Covenant Health in size, revenue, total assets, number of full time employees and services provided. Covenant Health's current compensation methodology includes setting base salary at, or near the midpoint recommended by the consultant based on the CEO's experience and market conditions. In addition, annual incentive bonus compensation may be awarded upon achievement of established targets. Bonus opportunity ranges from 0-50% of base salary depending upon the executive's performance. The CEO also earns forfeitable, deferred compensation, the amount of which partially depends upon the amount of any annual bonus awarded. As a part of its CEO performance evaluation process, the Committee asks each member of the board of directors to submit a written evaluation of the CEO's performance using an evaluation form prepared by an independent audit firm. This information is collected, collated, and reported to the Committee by the audit firm; however, results are "blinded" so that individual board members are not identified. The collated results are shared with the CEO as part of the evaluation process. Any increase in base salary, award of annual bonus, or changes in overall compensation methodology are made by the Committee after discussion with and advice of the consultant and conditioned upon the consultant's determination that such decisions result in total annual compensation that is reasonable and within a fair market value range. Once the annual performance evaluation is completed, the chairman and at least one other member of the Committee meet with the CEO and share the Committee and board's evaluation of his prior year's performance, communicate his performance goals for the upcoming year, and inform him of the Committee's actions with respect to any annual bonus award for the prior year and any base salary adjustment for the upcoming year. Minutes of the actions of the Committee are recorded and kept on file. In addition, all determinations of the Committee with respect to the CEO's compensation are reported to and ratified by the full board of directors. Form 990, Part VI, Section B, Line 15b: Base salaries and annual bonus opportunities for Key Executives (*1) are set by the Covenant Health CEO or Executive Vice President-Human Resources, subject to approval of the Compensation Committee of the Covenant Health Board of Directors ("the Committee"), after review by and discussion with the executive compensation consultant ("the consultant") to insure that total compensation for each executive is reasonable and within a fair market value range. Salary ranges for each executive position are based upon the recommendations of the consultant made after comparison with similar jobs in similar size health systems across the nation. Bonuses are recommended by the CEO and approved by the Committee conditioned upon receipt of a written opinion from the consultant that total compensation for each Key Executive is reasonable and consistent with fair market value. Base salaries are initially targeted at midpoint and vary according to the individual's experience, market conditions and competition. Annual bonuses are designed to award 0 - 45% for the EVP's, and 0 - 35% for the SVP's and CAO's of base salary based upon system performance and accomplishment of certain targets established by the CEO. (*1) KEY EXECUTIVES: Covenant Health employees: John T. Geppi, EVP-Chief Financial Officer James D. Vandersteeg, EVP-Hospital Operations Samuel R. Buscetta, EVP-Human Resources William M. Ward, SVP-Chief Information Officer Virginia K. Morrow, SVP-Philanthropy Related organization employees compensated by Covenant Health: Keith Altshuler, President & CAO of Fort Sanders Regional Medical Ctr. Michael R. Belbeck, Jr., President & CAO of Methodist Medical Center Larry R. Lassiter, President & CAO of Parkwest Medical Center Ellen F. Wilhoit, President & CAO of LeConte Medical Center Jeffrey Feike, President & CAO of Fort Loudoun Medical Center James Gann, President & CAO of Roane County Medical Center Richard Clark, President & CAO of Morristown Hamblen Hospital Association
  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.
Average Hours Per Week/Contact Addresses for Highest Compensated Employees: Form 990, Part VI, Section A, Line 9 & Part VII, Section A Covenant Health compensates the Presidents and CAOs of its member hospitals in its role as a supporting organization. Average hours worked per week by the following persons are reported on the Form 990 of the facility for which they work. Their contact addresses are provided here, as well. Keith Altshuler Fort Sanders Regional Medical Center & Fort Sanders Perinatal Center 1901 Clinch Avenue Knoxville, TN 37916 Michael R. Belbeck, Jr. Methodist Medical Center 990 Oak Ridge Turnpike Oak Ridge, TN 37830 Larry R. Lassiter Parkwest Medical Center 9352 Park West Boulevard Knoxville, TN 37923 Gordon Lintz Thompson Cancer Survival Center 1915 White Ave. Knoxville, TN 37916 Virginia K. Morrow Fort Sanders Foundation 280 Fort Sanders West Blvd. Ste. 100 Knoxville, TN 37922 All other persons listed in Part VII, Section A may be contacted at the organization's address.
Changes in Net Assets or Fund Balances: Form 990, Part XI, line 5: Net unrealized gains on investments: 21,106,009. Book/Tax Diff in Income(Loss) from Partnerships/Trusts -1,189,448. UBI Accrual 69,096. Return of capital from subsidiaries 4,646,171. Capital contributed to subsidiaries -38,405,135. Change in 457(b) unrealized gain/loss 206,503. Total to Form 990, Part XI, Line 5: -13,566,804.
  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.
Bond Issues - Description of Purpose: Schedule K, Part I, Column(f) The bond issues reported in Part I of Schedule K are related. The majority of the proceeds have been used to build a replacement hospital and cancer treatment center in Sevier County and make numerous renovations and improvements at all the member hospitals. A portion of the 2006 bonds were used for the refunding of bonds issued in 2002.
  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:  
SCHEDULE R
(Form 990)
Department of the Treasury
Internal Revenue Service
Related Organizations and Unrelated Partnerships
MediumBulletComplete if the organization answered "Yes" to Form 990, Part IV, line 33, 34, 35, 36, or 37.
MediumBulletAttach to Form 990. MediumBullet See separate instructions.

OMB No. 1545-0047
2010
Open to Public Inspection
Name of the organization
Covenant Health
 
Employer identification number

62-1646734
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
Yes No
(1) Fort Sanders Regional Medical Center

1901 W Clinch Avenue

Knoxville,TN37916
62-0528340 		Acute care hospital TN 501(c)(3) 3 Covenant Health
 
Yes
 
(2) Parkwest Medical Center

9352 Park West Boulevard

Knoxville,TN37923
58-1897274 		Acute care hospital & behavioral services TN 501(c)(3) 3 Covenant Health
 
Yes
 
(3) Methodist Medical Center

990 Oak Ridge Turnpike

Oak Ridge,TN37830
62-0636239 		Acute care hospital TN 501(c)(3) 3 Covenant Health
 
Yes
 
(4) LeConte Medical Center

742 Middle Creek Road

Sevierville,TN37862
62-1114867 		Acute care hospital TN 501(c)(3) 3 Covenant Health
 
Yes
 
(5) Roane County Medical Center dba Roane Medical Center

412 Devonia St

Harriman,TN37748
68-0673354 		Acute care hospital TN 501(c)(3) 3 Covenant Health
 
Yes
 
(6) Fort Loudoun Medical Center

550 Fort Loudoun Medical Ctr Dr

Loudon,TN37772
62-1373691 		Acute care hospital TN 501(c)(3) 3 Covenant Health
 
Yes
 
(7) Thompson Cancer Survival Center

1915 White Avenue

Knoxville,TN37916
62-1250943 		Cancer treatment facility TN 501(c)(3) 3 Covenant Health
 
Yes
 
(8) Thompson Oncology Group

1915 White Avenue

Knoxville,TN37916
62-1619239 		Oncology services TN 501(c)(3) 3 Thompson Cancer Survival Center
 
Yes
 
(9) Fort Sanders Foundation

280 Fort Sanders West Blvd Ste 100

Knoxville,TN37922
62-1748601 		Fundraising and development TN 501(c)(3) 11(a)-Type I Covenant Health
 
Yes
 
(10) Covenant Homecare

3001 Lake Brook Blvd Ste 101

Knoxville,TN37909
62-1623114 		Home health services TN 501(c)(3) 9 Covenant Health
 
Yes
 
(11) Fort Sanders Perinatal Center

501 19th St Ste 304

Knoxville,TN37916
04-3760551 		High risk obstetrical services TN 501(c)(3) 3 Fort Sanders Regional Medical Center
 
Yes
 
(12) Morristown-Hamblen Hospital Assoc dba Morristown-Hamblen Healthcare Sys

908 W 4th North St

Morristown,TN37814
62-0545814 		Acute care hospital TN 501(c)(3) 3 Covenant Health
 
Yes
 
For Privacy Act and Paperwork Reduction Act Notice, see the Instructions for Form 990.
Cat. No. 50135Y
Schedule R (Form 990) 2010
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



 		(e)
Predominant income(related, unrelated, excluded from tax under sections 512-514)

(f)
Share of total income




 		(g)
Share of end-of-year
assets



 		(h)
Disproprtionate allocations?




 		(i)
Code V—UBI
amount in box 20 of
Schedule K-1
(Form 1065)
 		(j)
General or
managing
partner?



 		(k)
Percentage
ownership
Yes No Yes No
(1) Endoscopy Center of Oak Ridge LLC

988 Oak Ridge Turnpike Suite 220
Oak Ridge,TN37830
62-1667358 		Outpatient medical facility TN N/A
                  
(2) Fort Sanders West Outpatient Surgery Center LLC

210 Fort Sanders West Blvd Suite 10
Knoxville,TN37922
62-1366907 		Outpatient surgery center TN N/A
                  
(3) Fort Sanders West Associates

280 Fort Sanders West Blvd Suite 21
Knoxville,TN37922
62-1384171 		Building ownership TN N/A
                  
(4) Fort Sanders Endoscopy Center LLC

100 Fort Sanders West Blvd
Knoxville,TN37922
 Inactive - dissolved October 2010 TN N/A
                  
(5) Fort Sanders Outpatient Cardiac Catheterization Ctr LLC

100 Fort Sanders West Blvd
Knoxville,TN37922
 Inactive - dissolved October 2010 TN N/A
                  
(6) Parkwest Endoscopy Center LLC

100 Fort Sanders West Blvd
Knoxville,TN37922
 Inactive - dissolved October 2010 TN N/A
                  
(7) Tellico Senior Living LLC

PO Box 308
Caryville,TN37714
36-4353505 		Retirement village TN N/A
                  
(8) KOSC Properties LLC

260 Fort Sanders West Blvd Ste 200
Knoxville,TN37922
26-2444076 		Building ownership TN N/A
                  
(9) Knoxville Orthopaedic Surgery Center LLC

260 Fort Sanders West Blvd Ste 200
Knoxville,TN37922
26-2437385 		Orthodopaedic surgery TN N/A
                  
(10) 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)

 		(f)
Share of total income



 		(g)
Share of
end-of-year
assets

 		(h)
Percentage
ownership
(1) Fortress Corporation
280 Ft Sanders West Blvd Suite 214
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 Acquisitions TN N/A
 C      
(3) Covenant Medical Management Inc
280 Ft Sanders West Blvd Suite 205
Knoxville,TN37922
62-1282917 		Physician Practice Management TN N/A
 C      
(4) Knoxville Heart Group
1819 Clinch Avenue 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
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
No
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 . . . . . . . . . . . . . . . . . . . . . . .
1a
Yes
 
b Gift, grant, or capital contribution to other organization(s) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
1b
Yes
 
c Gift, grant, or capital contribution from other organization(s) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
1c
Yes
 
d Loans or loan guarantees to or for other organization(s) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
1d
Yes
 
e Loans or loan guarantees by other organization(s) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
1e
 
No
f Sale of assets to other organization(s) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
1f
Yes
 
g Purchase of assets from other organization(s) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
1g
 
No
h Exchange of assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
1h
 
No
i Lease of facilities, equipment, or other assets to other organization(s) . . . . . . . . . . . . . . . . . . . . . . . . . . . .
1i
Yes
 
j Lease of facilities, equipment, or other assets from other organization(s) . . . . . . . . . . . . . . . . . . . . . . . . . . .
1j
Yes
 
k Performance of services or membership or fundraising solicitations for other organization(s) . . . . . . . . . . . . . . . . . . . . . .
1k
Yes
 
l Performance of services or membership or fundraising solicitations by other organization(s) . . . . . . . . . . . . . . . . . . . . . .
1l
Yes
 
m Sharing of facilities, equipment, mailing lists, or other assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
1m
 
No
n Sharing of paid employees . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
1n
Yes
 
o Reimbursement paid to other organization for expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
1o
Yes
 
p Reimbursement paid by other organization for expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
1p
Yes
 
q Other transfer of cash or property to other organization(s) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
1q
Yes
 
r Other transfer of cash or property from other organization(s) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
1r
Yes
 
2
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 Regional Medical Center

 A 1,663,461 Cash
(2) Fort Sanders Regional Medical Center

 F 786,141 FMV
(3) Fort Sanders Regional Medical Center

 K 19,442,840 FMV
(4) Fort Sanders Regional Medical Center

 N 1,992,854 FMV
(5) Fort Sanders Regional Medical Center

 O 597,046 Cost
(6) Fort Sanders Regional Medical Center

 P 131,295,587 Cost
(7) Fort Sanders Regional Medical Center

 Q 150,136,460 Cash
(8) Parkwest Medical Center

 A 10,291,936 Cash
(9) Parkwest Medical Center

 B 4,192,500 FMV
(10) Parkwest Medical Center

 F 1,233,059 FMV
(11) Parkwest Medical Center

 K 19,566,587 FMV
(12) Parkwest Medical Center

 N 1,172,084 FMV
(13) Parkwest Medical Center

 O 68,308 Cost
(14) Parkwest Medical Center

 P 137,758,450 Cost
(15) Parkwest Medical Center

 Q 3,581,293 Cash
(16) Parkwest Medical Center

 R 185,005,923 Cash
(17) Methodist Medical Center

 A 71,400 Cash
(18) Methodist Medical Center

 F 584,748 FMV
(19) Methodist Medical Center

 K 12,723,955 FMV
(20) Methodist Medical Center

 N 983,609 FMV
(21) Methodist Medical Center

 P 58,449,621 Cost
(22) Methodist Medical Center

 Q 81,188,347 Cash
(23) Morristown-Hamblen Hospital Association

 K 1,000,002 FMV
(24) Morristown-Hamblen Hospital Association

 P 31,503,665 Cost
(25) Morristown-Hamblen Hospital Association

 Q 36,146,363 Cash
(26) LeConte Medical Center

 A 748,715 Cash
(27) LeConte Medical Center

 F 177,527 FMV
(28) LeConte Medical Center

 K 4,357,867 FMV
(29) LeConte Medical Center

 N 376,640 FMV
(30) LeConte Medical Center

 P 36,099,977 Cost
(31) LeConte Medical Center

 R 23,707,071 Cash
(32) Roane County Medical Center

 D 4,723,785 Cost
(33) Roane County Medical Center

 K 300,000 FMV
(34) Roane County Medical Center

 N 1,012,504 FMV
(35) Roane County Medical Center

 O 920,749 Cost
(36) Roane County Medical Center

 P 4,250,263 Cost
(37) Roane County Medical Center

 Q 947,314 Cash
(38) Fort Loudoun Medical Center

 A 143,019 Cash
(39) Fort Loudoun Medical Center

 F 56,125 FMV
(40) Fort Loudoun Medical Center

 K 2,024,485 FMV
(41) Fort Loudoun Medical Center

 N 245,632 FMV
(42) Fort Loudoun Medical Center

 P 11,581,513 Cost
(43) Fort Loudoun Medical Center

 Q 15,137,039 Cash
(44) Thompson Cancer Survival Center

 K 2,285,493 FMV
(45) Thompson Cancer Survival Center

 N 292,065 FMV
(46) Thompson Cancer Survival Center

 P 6,374,489 Cost
(47) Thompson Cancer Survival Center

 R 16,006,405 Cash
(48) Thompson Oncology Group

 C 4,192,500 FMV
(49) Thompson Oncology Group

 K 199,157 FMV
(50) Thompson Oncology Group

 P 20,243,884 Cost
(51) Thompson Oncology Group

 Q 14,459,013 Cash
(52) Covenant Homecare

 K 1,093,848 FMV
(53) Covenant Homecare

 J 65,940 FMV
(54) Covenant Homecare

 P 7,837,524 Cost
(55) Covenant Homecare

 Q 8,120,787 Cash
(56) Fort Sanders Perinatal Center

 P 5,469,176 Cost
(57) Fort Sanders Perinatal Center

 R 6,240,426 Cash
(58) Knoxville Heart Group

 K 139,156 FMV
(59) Knoxville Heart Group

 P 3,107,603 Cost
(60) Knoxville Heart Group

 Q 147,370 Cash
(61) Knoxville Heart Group

 R 2,131,564 Cash
(62) Fortress

 B 5,112,606 FMV
(63) Fortress

 D 437,667 Cost
(64) Fortress

 J 462,842 FMV
(65) Fortress

 K 1,822,343 FMV
(66) Fortress

 O 153,105 Cost
(67) Fortress

 P 6,497,021 Cost
(68) Fort Sanders West OP Surgery Center

 P 1,531,826 Cost
(69) Covenant Medical Management

 K 2,367,422 FMV
(70) Covenant Medical Management

 P 21,123,408 Cost
(71) Fort Sanders Foundation

 C 121,610 Cash
(72) Fort Sanders Foundation

 N 186,719 FMV
Schedule R (Form 990) 2010
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 V—UBI
amount in box
20 of Schedule K-1
(Form 1065) 		(h)
General or
managing
partner?
Yes No Yes No Yes No






























Schedule R (Form 990) 2010
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


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