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
2012
Open to Public Inspection
A For the 2012 calendar year, or tax year beginning 01-01-2012 , 2012, and ending 12-31-2012
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)
1420 Centerpoint Blvd Bldg C
 
Room/suite
City or town, state or country, and ZIP + 4
Knoxville, TN379321960
D Employer identification number

62-1646734
E Telephone number

G Gross receipts $ 137,333,935
F Name and address of principal officer:
Anthony L Spezia
100 Ft Sanders W 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 22
4 Number of independent voting members of the governing body (Part VI, line 1b) ..... 4 18
5 Total number of individuals employed in calendar year 2011 (Part V, line 2a) ...... 5 1,002
6 Total number of volunteers (estimate if necessary) ............. 6 612
7a Total unrelated business revenue from Part VIII, column (C), line 12 ........ 7a 889,542
b Net unrelated business taxable income from Form 990-T, line 34 ......... 7b 35,384
Revenues Prior Year Current Year
8 Contributions and grants (Part VIII, line 1h) ......... 264,991 236,671
9 Program service revenue (Part VIII, line 2g) ......... 78,068,540 87,284,340
10 Investment income (Part VIII, column (A), lines 3, 4, and 7d ) .... 53,992,813 34,197,630
11 Other revenue (Part VIII, column (A), lines 5, 6d, 8c, 9c, 10c, and 11e) 1,112,707 298,132
12 Total revenue—add lines 8 through 11 (must equal Part VIII, column (A), line 12)................... 133,439,051 122,016,773
Expenses; 13 Grants and similar amounts paid (Part IX, column (A), lines 1–3 )... 608,694 902,017
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) 49,879,632 55,635,785
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–24e).... 48,226,142 45,578,589
18 Total expenses. Add lines 13–17 (must equal Part IX, column (A), line 25) 98,714,468 102,116,391
19 Revenue less expenses. Subtract line 18 from line 12....... 34,724,583 19,900,382
Net Assets or Fund Balances; Beginning of Current Year End of Year
20 Total assets (Part X, line 16)............. 1,099,528,246 1,117,847,303
21 Total liabilities (Part X, line 26)............. 805,301,841 801,215,199
22 Net assets or fund balances. Subtract line 21 from line 20..... 294,226,405 316,632,104
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 Use Only
Print/Type preparer's name
 
Preparer's signature
Date
PTIN
Firm's name MediumBullet

Firm's EIN MediumBullet
Firm's address MediumBullet



Phone no.
May the IRS discuss this return with the preparer shown above? (see instructions) ............
For Paperwork Reduction Act Notice, see the separate instructions.
Cat. No. 11282Y
Form 990 (2012)
Form 990 (2012)
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.
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 organization’s program service accomplishments for each of its three largest program services, as measured by expenses. Section 501(c)(3) and 501(c)(4) organizations 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 $ 29,749,540 including grants of $   ) (Revenue $ 29,749,540 )
Information Technology. See Schedule O for additional details.Information Technology: Expenses - $29,749,540; Revenue - $29,749,540.The Information Technology (IT) division of Covenant Health provides all computing equipment and information management related services to Covenant Health facilities. Information management systems and related application support (install, upgrade, help desk) services are available on a 24/7 basis spanning healthcare functions across core patient-care clinical systems, physician, nursing, and associated ancillary systems (lab, radiology, pharmacy, therapy), as well as the supporting business functions encompassing patient accounting, materials management, finance, and human resources. IT also manages a centralized data center (and a backup disaster recovery data center) where the hardware equipment is housed to deliver the computing resources for all clinical/business functions on a 24/7 schedule. Additionally, IT is responsible for management of all PC workstations (desktop, laptop, mobile cart), all client to server internal and external network connectivity, as well as telephone services and telephone equipment (PBX, handsets, cell phones, pagers) across the company. It also facilitates project management activities related to meeting regulatory and quality reporting requirements. Key statistics for the year include: *Payroll checks/deposits - 262,774 *Pharmacy medication mgmt. system - 2,124,642 orders *Total spam messages blocked - 16,478,852 *Network virus attempts blocked - 99,957,240 *PCs supported - 9,108 *Overall telephone usage - 35,080,367 calls *Pathway scheduling application - 624,991 appointments *Accounts payable checks - 100,932 *Server instances - 800 *Storage terabytes - 493 *Live IP addresses - 15,552 *Help Desk calls - 160,096 *PACS studies - 593,051
4b (Code:   ) (Expenses $ 10,333,197 including grants of $   ) (Revenue $ 10,333,197 )
Business Office. See Schedule O for additional details.Business Office: Expenses - $10,333,197; Revenue - $10,333,197.Knoxville Business Office Services is the CBO (Centralized Business Office) for Covenant Health providing accounts receivable management for Fort Sanders Regional Medical Center, Parkwest Medical Center, Fort Loudoun Medical Center, LeConte Medical Center, Methodist Medical Center, and Morristown-Hamblen Hospital Association. These services include, but are not limited to, customer service, payment collection, financial posting, refund processing, and insurance billing and follow-up.During 2012, CBO submitted over 923,000 insurance claims totaling in excess of $3,489,000,000. Bad debt expense for 2012 was approximately 3.24% of gross revenue with bad debt recoveries/collections in excess of $9,800,000. The CBO handled over 124,000 incoming phone calls, following-up on over 453,000 open accounts and processed over 3.3 million financial transactions.
4c (Code:   ) (Expenses $ 6,901,071 including grants of $   ) (Revenue $ 6,901,071 )
Human Resources. See Schedule O for additional details.Human Resources: Expenses - $6,901,071; Revenue - $6,901,071.Corporate Human Resources at Covenant Health provides high quality centralized sourcing and staffing services to all Covenant Health entities, standardized benefit design and administration, exempt and non-exempt salary system design and delivery, human resources information system administration, employee relations and retention, clinical and non-clinical skill development, leadership and management development, cultural change, leadership succession and continuity, and security. Additionally, Human Resources is responsible for system-wide programs, policies and procedures; regulatory and legal compliance affecting all areas of Human Resources Administration; and contemporary, cost-effective systems and processes to meet organizational strategies, goals and tactics.Through Human Resources, staffing (employment) services assisted in hiring 1,842 employees during 2012. All new hires participated in various classroom orientation programs and on-line onboarding processes at the start of employment. Employment Services receives, on average, 1,071 applications per month. Through its Learning and Leadership Development (LLD) division, Human Resources provided over 300,903 training hours including both e-learning and classroom-based courses. LLD also manages a framework of over 50 identified leadership competencies. LLD offers more than 100 clinical nursing courses from both in-house and vendor sourcing. It also manages a host of clinical training opportunities including everything from CPR to Advanced Neurological and Neonatal Intensive Care courses.
(Code:   ) (Expenses $ 44,557,742 including grants of $ 902,017 ) (Revenue $ 63,267,630 )
In addition to the services previously mentioned, support provided by Covenant Health to its member facilities takes on many other forms, some examples of which are: * Executive leadership, strategic planning, and other planning both at the System and organizational level; * Financial, management and advisory services; * Third party reporting; * Integrity compliance program; * Real estate management; * Risk management; * Internal audit; * Asset and liability related treasury management functions; * Procurement; * Clinical quality improvement; * Marketing; and * External reporting.Other services and activities conducted by Covenant Health directly benefit patients and members of the communities served by the Supported Organizations. Some services are aimed at improving the operational efficiency of and the quality of care provided by the Supported Organizations, such as the service of providing sterile packs. Covenant Health Sterile Solutions is the only operation of its kind in the Knoxville area and produces its own surgical sterile packs and distributes them to Supported Organizations. The use of custom built Sterile Packs helps reduce surgical pack supply costs, reduce inventory levels, and helps minimize waste in keeping with the organization's green initiatives. Along with those achievements, sterile packs also help reduce setup time, leaving more time for treating patients and with fewer items to open, there is also a reduced risk of contamination. Another service that Covenant Health has recently centralized is Medical Transcription. Medical Transcription is an allied health profession, which deals in the process of converting voice-recorded reports, as dictated by physicians or other healthcare professionals, into text format. Other programs have community benefit as their main goal. One example is Covenant Health Senior Services, which assists older adults who are 50 or older in their effort to lead healthier, more independent lives.Most Health Information Management support functions have been centralized within Covenant Health including coding, linking of patient visit information to help with continuity of care, release of information, chart analysis, and optical scanning of documents. The department provides essential services related to improving the quality of patient records and verification of information to support accurate billing.
4d Other program services (Describe in Schedule O.)
(Expenses $ 44,557,742 including grants of $ 902,017 ) (Revenue $ 63,267,630 )
4e Total program service expensesMediumBullet91,541,550
Form 990 (2012)
Form 990 (2012)
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 (see instructions)? 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, or have a section 501(h) election in effect during the tax year? 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 IIIClick to see attachment............................
5
 
No
6
Did the organization maintain any donor advised funds or any similar funds or accounts for which 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 for escrow or custodial account liability; 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 temporarily restricted endowments, permanent endowments, 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, line 10?
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 VIIClick 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 VIIIClick 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 IXClick to see attachment............
11d
 
No
e
Did the organization report an amount for other liabilities in Part X, line 25? If “Yes,” complete Schedule D, Part XClick 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 XClick to see attachment.........................
11f
Yes
 
12a
Did the organization obtain separate, independent audited financial statements for the tax year?
If “Yes,” complete Schedule D, Parts XI and XII 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 and XII 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, investment, and program service activities outside the United States, or aggregate foreign investments valued at $100,000 or more? If “Yes,” complete Schedule F, Parts I and IV.........
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 United States? If “Yes,” complete Schedule F, Parts II and IV
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 United States? If “Yes,” complete Schedule F, Parts III and IV...
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 (see instructions)....
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
20a
Did the organization operate one or more hospital facilities? If “Yes,” complete Schedule H....
20a
 
No
b
If “Yes” to line 20a, did the organization attach a copy of its audited financial statements to this return?
20b
 
 
Form 990 (2012)
Form 990 (2012)
Page 4
Part IV
Checklist of Required Schedules (continued)
21
Did the organization report more than $5,000 of grants and other assistance to any government or organization 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, line 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 lines 24b through 24d and complete Schedule K. If “No,” go to line 25................ Click to see list of attachments
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........ Click to see attachment
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................... Click to see attachment
25b
 
No
26
Was a loan to or by a current or former officer, director, trustee, key employee, highest compensated employee, or disqualified person outstanding as of the end of the organization’s tax year? If “Yes,” complete Schedule L,
Part II.......................... Click to see attachment
26
 
No
27
Did the organization provide a grant or other assistance to an officer, director, trustee, key employee, substantial contributor or employee thereof, a grant selection committee member, or to a 35% controlled entity or family member of any of these persons? If “Yes,” complete Schedule L, Part III......... Click to see attachment
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 .......................... Click to see attachment
28a
 
No
b
A family member of a current or former officer, director, trustee, or key employee? If “Yes,”
complete Schedule L, Part IV..................... Click to see attachment
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 direct or indirect owner? If “Yes,” complete Schedule L, Part IV... Click to see attachment
28c
Yes
 
29
Did the organization receive more than $25,000 in non-cash contributions? If “Yes,” complete Schedule M..Click 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...........................
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, Part II, III, or IV, and Part V, line 1........................ Click to see attachment
34
Yes
 
35a
Did the organization have a controlled entity within the meaning of section 512(b)(13)?
35a
Yes
 
b
If ‘Yes’ to line 35a, 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
35b
Yes
 
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 11b and 19? Note. All Form 990 filers are required to complete Schedule O. ............
38
Yes
 
Form 990 (2012)
Form 990 (2012)
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
641
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
1,002
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, securities account, or other financial 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 as charitable contributions?...
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. See the instructions for additional information the organization must report on Schedule O.
13a
 
 
b
Enter the 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 amount of reserves on hand ............
13c
 
14a
Did the organization receive any payments for indoor tanning services during the tax year?.....
14a
 
No
b
If "Yes," has it filed a Form 720 to report these payments? If “No,” provide an explanation in Schedule O..
14b
 
 
Form 990 (2012)
Form 990 (2012)
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
22
If there are material differences in voting rights among members of the governing body, or if the governing body delegated broad authority to an executive committee or similar committee, explain in Schedule O.
b
Enter the number of voting members included in line 1a, above, who are independent ...................
1b
18
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
 
No
5
Did the organization become aware during the year of a significant diversion of the organization’s assets? .
5
 
No
6
Did the organization have members or stockholders? ................
6
 
No
7a
Did the organization have members, stockholders, or other persons who had the power to elect or appoint one or more members of the governing body? ....................
7a
 
No
b
Are any governance decisions of the organization reserved to (or subject to approval by) members, stockholders, or persons other than the governing body? ...................
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
Did the organization have local chapters, branches, or affiliates? ............
10a
 
No
b
If “Yes,” did the organization have written policies and procedures governing the activities of such chapters, affiliates, and branches to ensure their operations are consistent with the organization's exempt purposes?
10b
 
 
11a
Has the organization provided a complete 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 this Form 990. .....
12a
Did the organization have a written conflict of interest policy? If “No,” go to line 13.......
12a
Yes
 
b
Were officers, directors, or trustees, and key employees required to disclose annually interests that could give rise to conflicts? ..........................
12b
Yes
 
c
Did the organization regularly and consistently monitor and enforce compliance with the policy? If “Yes,” describe in Schedule O how this was done.......................
12c
Yes
 
13
Did the organization have a written whistleblower policy? ...............
13
Yes
 
14
Did 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 15a or 15b, 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,” did the organization follow a written policy or procedure requiring the organization to evaluate its participation in joint venture arrangements under applicable federal tax law, and take 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
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 made these available. Check all that apply.
19
Describe in Schedule O whether (and if so, how), the organization made its governing documents, conflict of interest policy, and financial statements available to the public during the tax year.
20
State the name, physical address, and telephone number of the person who possesses the books and records of the organization:
MediumBulletNancy Beck1420 Centerpoint Blvd Bldg CKnoxvilleTN379321960 (865) 374-6864
Form 990 (2012)
Form 990 (2012)
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. 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 organization compensated any current officer, director, or trustee.
(A)
Name and Title 		(B)
Average hours per week (list any hours for related organizations below dotted line) 		(C)
Position (do not check more than one box, unless person is both an officer and a director/trustee) 		(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
.......................0.00 		X   X       1,526,847 0 230,374
(2) Gerald Boyd........................................................................
Director
 1.00
.......................0.00 		X           679 0 0
(3) Dr Richard Brinner........................................................................
Director
 1.00
.......................0.00 		X           1,291 0 0
(4) Dr Mitchell Dickson........................................................................
Director
 1.00
.......................0.00 		X           1,914 0 0
(5) Pamela P Fansler........................................................................
Director
 1.00
.......................0.00 		X           0 0 0
(6) James Fitzsimmons........................................................................
Director
 1.00
.......................0.00 		X           1,742 0 0
(7) Kimberly Greene........................................................................
Director
 1.00
.......................0.00 		X           937 0 0
(8) Wayne Heatherly........................................................................
Director
 1.00
.......................0.00 		X           752 0 0
(9) Jim Johnson Jr........................................................................
Director
 1.00
.......................0.00 		X           1,642 0 0
(10) Karla Lane........................................................................
Director
 1.00
.......................0.00 		X           924 0 0
(11) Eddie Mannis........................................................................
Director
 1.00
.......................0.00 		X           0 0 0
(12) Larry Mauldin........................................................................
Chairman
 1.00
.......................0.00 		X           834 0 0
(13) Dr Joseph Metcalf........................................................................
Director
 3.00
.......................0.00 		X           15,603 0 0
(14) George Miller........................................................................
Director
 1.00
.......................0.00 		X           978 0 0
(15) Alvin Nance........................................................................
Director
 1.00
.......................0.00 		X           966 0 0
(16) Linda Ogle........................................................................
Director
 1.00
.......................0.00 		X           0 0 0
(17) Mitchell Steenrod........................................................................
Director
 1.00
.......................0.00 		X           805 0 0
Form 990 (2012)
Form 990 (2012)
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 (list any hours for related organizations below dotted line) 		(C)
Position (do not check more than one box, unless person is both an officer and a director/trustee) 		(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) Carl Storms........................................................................
Director
 1.00
.......................0.00 		X           1,641 0 0
(19) Joseph E Sutter........................................................................
Director
 1.00
.......................0.00 		X           1,313 0 0
(20) Richard Swanson........................................................................
Director
 1.00
.......................0.00 		X           0 0 0
(21) Joe Ben Turner........................................................................
Director
 1.00
.......................0.00 		X           783 0 0
(22) David C Verble........................................................................
Director
 1.00
.......................0.00 		X           958 0 0
(23) John T Geppi........................................................................
EVP/CFO
 50.00
.......................0.00 		    X       673,095 0 27,138
(24) James D Vandersteeg........................................................................
EVP-Hospital Operations
 50.00
.......................0.00 		      X     709,162 0 33,870
(25) William M Ward........................................................................
SVP-Chief Information Officer
 50.00
.......................0.00 		      X     350,997 0 33,160
(26) Lawrence C Kleinman........................................................................
EVP-Human Resources
 50.00
.......................0.00 		      X     398,236 0 19,019
(27) Janice McKinley........................................................................
SVP-Quality, Safety, & Nursing
 50.00
.......................0.00 		      X     262,307 0 17,334
(28) Larry R Lassiter........................................................................
President/CAO - Parkwest Med Ctr
 1.00
.......................50.00 		        X   424,641 0 30,962
(29) Michael R Belbeck Jr........................................................................
President/CAO - Methodist
 1.00
.......................50.00 		        X   386,592 0 34,819
(30) Keith N Altshuler........................................................................
President/CAO - Fort Sanders Reg
 1.00
.......................50.00 		        X   349,933 0 30,339
(31) Gordon E Lintz........................................................................
President/CAO - Morristown
 1.00
.......................50.00 		        X   308,323 0 19,145
(32) James D Gann........................................................................
President/CAO (retired)- Roane
 1.00
.......................50.00 		        X   254,570 0 27,489
(33) Richard L Clark........................................................................
Former HCE
 0.00
.......................0.00 		          X 273,826 0 9,800
1b Sub-Total................MediumBullet
c Total from continuation sheets to Part VII, Section A....MediumBullet
d Total (add lines 1b and 1c)............MediumBullet 5,952,291 0 513,449
2
Total number of individuals (including but not limited to those listed above) who received more than $100,000 of reportable compensation from the organizationMediumBullet52
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
Yes
 
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. Report compensation for the calendar year ending with or within the organization’s tax year.
(A)
Name and business address 		(B)
Description of services 		(C)
Compensation
Morrison Mgmt Specialists IncPO Box 102289AtlantaGA303682289 Cafeteria Management 18,951,962
Relay Health5995 Windward ParkwayAlpharettaGA30005 Software Maintenance 3,025,742
Executive Health Resources15 Campus Blvd Ste 200Newton SquarePA19073 Review Services 2,823,631
Dell Marketing LP2300 W Plano Pkwy Treas Dept BlPlanoTX75075 Professional Service Fees 2,784,045
Quest DiagnosticsPO Box 749409Los AngelesCA900749409 Patient Diagnostic Lab Services 2,653,061
2
Total number of independent contractors (including but not limited to those listed above) who received more than $100,000 of compensation from the organization MediumBullet78
Form 990 (2012)
Form 990 (2012)
Page 9
Part VIII
Statement of Revenue
Check if Schedule O contains a response to any question in this Part VIII ..............
(A)
Total revenue 		(B)
Related or
exempt
function
revenue 		(C)
Unrelated
business
revenue 		(D)
Revenue
excluded from
tax under sections
512, 513, or 514
Contributions, Gifts, Grants and Other Similar Amounts 1a Federated campaigns..1a  
b Membership dues....1b  
c Fundraising events....1c  
d Related organizations...1d 236,671
e Government grants (contributions)1e  
f All other contributions, gifts, grants, and
similar amounts not included above1f 		 
g Noncash contributions included in lines
1a-1f:$ 		98,448
h Total. Add lines 1a-1f.......MediumBullet 236,671
Program Service Revenue Business Code
2a Management Fees 561000 76,300,230 76,300,230    
b Transcription Services 561499 5,442,170 4,779,458 662,712  
c Telephone Services 517000 5,053,263 4,921,617 131,646  
d Community Outreach 621990 419,975 414,909   5,066
e Managed Care Services 541900 68,702   68,702  
f All other program service revenue .        
g Total. Add lines 2a–2f........MediumBullet 87,284,340
Other Revenue 3 Investment income (including dividends, interest, and other similar amounts).......MediumBullet 23,307,261 23,307,261    
4 Income from investment of tax-exempt bond proceeds..MediumBullet 473,163 473,163    
5 Royalties...........MediumBullet        
(i) Real (ii) Personal
6a Gross rents 364,101  
b Less: rental expenses 120,769  
c Rental income or (loss) 243,332  
d Net rental income or (loss).......MediumBullet 243,332   26,482 216,850
(i) Securities (ii) Other
7a Gross amount from sales of assets other than inventory 11,118,314 11,078,353
b Less: cost or other basis and sales expenses 11,760,201 19,260
c Gain or (loss) -641,887 11,059,093
d Net gain or (loss)..........MediumBullet 10,417,206     10,417,206
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 3,471,732
b Less: cost of goods sold ..b 3,416,932
c Net income or (loss) from sales of inventory..MediumBullet 54,800 54,800    
Miscellaneous Revenue Business Code
11a            
b            
c            
d All other revenue ....        
e Total. Add lines 11a–11d ...... MediumBullet  
12 Total revenue. See Instructions......MediumBullet 122,016,773 110,251,438 889,542 10,639,122
Form 990 (2012)
Form 990 (2012)
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).Check if Schedule O contains a response to any question in this Part IX ...............
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 United States. See Part IV, line 21 829,143 829,143
2 Grants and other assistance to individuals in the United States. See Part IV, line 22 72,874 72,874
3 Grants and other assistance to governments, organizations, and individuals outside the United States. See Part IV, lines 15 and 16    
4 Benefits paid to or for members    
5 Compensation of current officers, directors, trustees, and key employees .... 4,173,801 3,613,425 560,376  
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 39,198,105 34,181,141 5,016,964  
8 Pension plan accruals and contributions (include section 401(k) and 403(b) employer contributions) .... 2,427,239 2,118,494 308,745  
9 Other employee benefits ....... 6,651,448 5,806,147 845,301  
10 Payroll taxes ........... 3,185,192 2,780,036 405,156  
11 Fees for services (non-employees):        
a Management ......        
b Legal ......... 1,619,562 741,252 878,310  
c Accounting ........... 70,000   70,000  
d Lobbying ...........        
e Professional fundraising services. See Part IV, line 17    
f Investment management fees ...... 15,500 15,500    
g Other (If line 11g amount exceeds 10% of line 25, column (A) amount, list line 11g expenses on Schedule O) ........ 2,132,465 1,656,996 475,469  
12 Advertising and promotion .... 666,697 666,697    
13 Office expenses ....... 6,439,915 6,271,216 168,699  
14 Information technology ...... 11,236,268 11,236,268    
15 Royalties ..        
16 Occupancy ........... 1,566,007 1,510,449 55,558  
17 Travel ............ 277,772 262,850 14,922  
18 Payments of travel or entertainment expenses for any federal, state, or local public officials ......        
19 Conferences, conventions, and meetings .... 585,227 275,798 309,429  
20 Interest ........... 15,074,982 15,074,982    
21 Payments to affiliates .......        
22 Depreciation, depletion, and amortization ..... 3,265,392 2,748,483 516,909  
23 Insurance .............. 564,240 275,568 288,672  
24 Other expenses. Itemize expenses not covered above (List miscellaneous expenses in line 24e. If line 24e amount exceeds 10% of line 25, column (A) amount, list line 24e expenses on Schedule O.)
a Unrelated Business Inco 10,500   10,500  
b Subscriptions 1,036,559 793,832 242,727  
c Dues and Licenses 738,930 537,596 201,334  
d Meals and Entertainment 59,148 39,249 19,899  
e All other expenses 219,425 33,554 185,871  
25 Total functional expenses. Add lines 1 through 24e 102,116,391 91,541,550 10,574,841 0
26 Joint costs. Complete this line only if the organization reported in column (B) joint costs from a combined educational campaign and fundraising solicitation. Check here MediumBullet if following SOP 98-2 (ASC 958-720).        
Form 990 (2012)
Form 990 (2012)
Page 11
Part X Balance Sheet Check if Schedule O contains a response to any question in this Part X ...............
(A)
Beginning of year 		(B)
End of year
Assets 1 Cash—non-interest-bearing ............. 1,800 1 1,700
2 Savings and temporary cash investments ......... 24,331,691 2 27,363,582
3 Pledges and grants receivable, net ...........   3  
4 Accounts receivable, net .............   4  
5 Loans and other receivables from current and former officers, directors, trustees, key employees, and highest compensated employees. Complete Part II of
Schedule L ..................
  5  
6 Loans and other receivables from other disqualified persons (as defined under section 4958(f)(1)), persons described in section 4958(c)(3)(B), and contributing employers and sponsoring organizations of section 501(c)(9) voluntary employees' beneficiary organizations (see instructions) Complete Part II of Schedule L
  6  
7 Notes and loans receivable, net .............   7  
8 Inventories for sale or use .............. 482,400 8 548,178
9 Prepaid expenses and deferred charges .......... 6,689,469 9 7,341,137
10a Land, buildings, and equipment: cost or other basis. Complete Part VI of Schedule D 10a 118,958,834
b Less: accumulated depreciation ..... 10b 18,244,313 55,941,942 10c 100,714,521
11 Investments—publicly traded securities .......... 844,634,509 11 858,118,766
12 Investments—other securities. See Part IV, line 11 ..... 18,622,469 12 16,214,264
13 Investments—program-related. See Part IV, line 11 .....   13  
14 Intangible assets ...............   14  
15 Other assets. See Part IV, line 11 ........... 148,823,966 15 107,545,155
16 Total assets. Add lines 1 through 15 (must equal line 34)...... 1,099,528,246 16 1,117,847,303
Liabilities 17 Accounts payable and accrued expenses ......... 54,619,201 17 41,977,092
18 Grants payable .................   18  
19 Deferred revenue ................ 45,455,991 19 46,058,912
20 Tax-exempt bond liabilities ............. 677,079,609 20 686,157,441
21 Escrow or custodial account liability. Complete Part IV of Schedule D..   21  
22 Loans and other 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 (including federal income tax, payables to related third parties, and other liabilities not included on lines 17-24). Complete Part X of Schedule D.................... 28,147,040 25 27,021,754
26 Total liabilities. Add lines 17 through 25......... 805,301,841 26 801,215,199
Net Assets or Fund Balance Organizations that follow SFAS 117 (ASC 958), check here MediumBullet and complete lines 27 through 29, and lines 33 and 34.
27 Unrestricted net assets .............. 294,226,405 27 316,632,104
28 Temporarily restricted net assets ...........   28  
29 Permanently restricted net assets ...........   29  
Organizations that do not follow SFAS 117 (ASC 958), 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 ........... 294,226,405 33 316,632,104
34 Total liabilities and net assets/fund balances ........ 1,099,528,246 34 1,117,847,303
Form 990 (2012)
Form 990 (2012)
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
122,016,773
2
Total expenses (must equal Part IX, column (A), line 25) ............
2
102,116,391
3
Revenue less expenses. Subtract line 2 from line 1 ..............
3
19,900,382
4
Net assets or fund balances at beginning of year (must equal Part X, line 33, column (A)) ..
4
294,226,405
5
Net unrealized gains (losses) on investments ...............
5
38,977,080
6
Donated services and use of facilities .................
6
 
7
Investment expenses .....................
7
 
8
Prior period adjustments .....................
8
 
9
Other changes in net assets or fund balances (explain in Schedule O) ........
9
-36,471,763
10
Net assets or fund balances at end of year. Combine lines 3 through 9 (must equal Part X, line 33, column (B))
10
316,632,104
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
If ‘Yes,’ check a box below to indicate whether the financial statements for the year were compiled or reviewed on a separate basis, consolidated basis, or both:
b
Were the organization’s financial statements audited by an independent accountant?
2b
Yes
 
If ‘Yes,’ check a box below to indicate whether the financial statements for the year were audited on a separate basis, consolidated basis, or both:
c
If “Yes,” to line 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?
2c
Yes
 
If the organization changed either its oversight process or selection process during the tax year, explain in Schedule O.
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
 
No
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
 
 
Form 990 (2012)
Form 990, Special Condition Description:
Special Condition Description
Additional Data


Software ID:  
Software Version:  
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
2012
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 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
Provide the following information about the supported organization(s).
(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 monetary support
Yes No Yes No Yes No
(A) Fort Loudoun Medical Ctr
  		621373691 3   No Yes   Yes   0
(B) Fort Sanders Perinatal Ctr
  		043760551 3   No Yes   Yes   0
(C) Fort Sanders Regional Med Ctr
  		620528340 3   No Yes   Yes   0
(D) LeConte Medical Ctr
  		621114867 3   No Yes   Yes   0
(E) Methodist Medical Ctr
  		620636239 3   No Yes   Yes   0
(F) Parkwest Medical Ctr
  		581897274 3   No Yes   Yes   0
(G) Roane County Medical Ctr
  		680673354 3   No Yes   Yes   0
(H) Thompson Cancer Survival Ctr
  		621250943 3   No Yes   Yes   0
(I) Covenant Homecare
  		621623114 9   No Yes   Yes   0
(J) Thompson Oncology Group
  		621619239 3   No Yes   Yes   0
(K) Morristown-Hamblen Healthcare System
  		620545814 3   No Yes   Yes   0
Total                 0

For Paperwork Reduction Act Notice, see the Instructions for Form 990 or 990EZ.
Cat. No. 11285F
Schedule A (Form 990 or 990-EZ) 2012
Schedule A (Form 990 or 990-EZ) 2012
Page 2
Part II
Support Schedule for Organizations Described in Sections 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) right arrow (a) 2008 (b) 2009 (c) 2010 (d) 2011 (e) 2012 (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) right arrow (a) 2008 (b) 2009 (c) 2010 (d) 2011 (e) 2012 (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. Do not include gain or loss from the sale of capital assets (Explain in Part IV.)..            
11 Total support (Add lines 7 through 10).            
12
12
 
13
First five years. If the Form 990 is for the organization's first, second, third, fourth, or fifth tax year as a 501(c)(3) organization, check this box and stop here........................................right arrow
Section C. Computation of Public Support Percentage
14
14
 
15
15
 
16a
b
17a
b
18
Private foundation. If the organization did not check a box on line 13, 16a, 16b, 17a, or 17b, check this box and see
instructions ..................................................... right arrow
Schedule A (Form 990 or 990-EZ) 2012
Schedule A (Form 990 or 990-EZ) 2012
Page 3
Part III
Support Schedule for Organizations Described in Section 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) right arrow (a) 2008 (b) 2009 (c) 2010 (d) 2011 (e) 2012 (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) right arrow (a) 2008 (b) 2009 (c) 2010 (d) 2011 (e) 2012 (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) 2012
Schedule A (Form 990 or 990-EZ) 2012
Page 4
Part IV
Supplemental Information. Complete this part to provide the explanations required by Part II, line 10; Part II, line 17a or 17b; and 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) 2012

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
2012
Name of the 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 on line H of its
Form 990-EZ or on Part I, 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) (2012)

Schedule B (Form 990, 990-EZ, or 990-PF) (2012)
Page 2
Name of organization
Covenant Health
  		Employer identification number

62-1646734
Part I
Contributors (see instructions). Use duplicate copies of Part I if additional space is needed.
     
(a)
No.		 (b)
Name, address, and ZIP + 4		 (c)
Total 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)
Total contributions		 (d)
Type of contribution
 
 
 

     
 
   

$  


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

     
 
   

$  


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

     
 
   

$  


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

     
 
   

$  


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

     
 
   

$  


(Complete Part II if there is a noncash contribution.)
Schedule B (Form 990, 990-EZ, or 990-PF) (2012)

Schedule B (Form 990, 990-EZ, or 990-PF) (2012)
Page 3
Name of organization
Covenant Health
  		Employer identification number

62-1646734
Part II
Noncash Property (see instructions). Use duplicate copies of Part II if additional space is needed.
     
(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) (2012)

Schedule B (Form 990, 990-EZ, or 990-PF) (2012)
Page 4
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
that total 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 $1,000 or less for the year. (Enter this information once. See instructions.) Arrow Bullet$  
Use duplicate copies of Part III if additional space is needed.
(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) (2012)

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
2012
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 35c (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 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 function 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 Paperwork Reduction Act Notice, see the instructions for Form 990 or 990-EZ.
Cat. No. 50084S
Schedule C (Form 990 or 990-EZ) 2012

Schedule C (Form 990 or 990-EZ) 2012
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 SchCMd Bulletexpenses, and share of excess lobbying expenditures).
B Check SchCMd Bullet
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) 2009 (b) 2010 (c) 2011 (d) 2012 (e) Total
             
2a Lobbying nontaxable amount          
             
b Lobbying ceiling amount
(150% of line 2a, column(e)) 		         
             
c Total lobbying expenditures          
             
d Grassroots nontaxable amount          
             
e Grassroots ceiling amount
(150% of line 2d, column (e))		          
             
f Grassroots lobbying expenditures          
Schedule C (Form 990 or 990-EZ) 2012


Schedule C (Form 990 or 990-EZ) 2012
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)).
For each “Yes” response to lines 1a through 1i below, provide in Part IV a detailed description of the lobbying activity.
(a)
No
Yes
(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
 
10
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
 
9,610
h
Rallies, demonstrations, seminars, conventions, speeches, lectures, or any similar means? ......
 
No
 
i
Other activities? ..........................
Yes
 
96,381
j
Total. Add lines 1c through 1i ...............................
106,001
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 carry over 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) and if either (a) BOTH Part III-A, lines 1 and 2, are answered “No” OR (b) Part III-A, line 3, is answered “Yes."
1
Dues, assessments and similar amounts from members .....................
1
 
2
Section 162(e) nondeductible 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; Part II-A (affiliated group list); Part II-A, line 2; and Part ll-B, line 1. Also, complete this part for any additional information.
Identifier Return Reference Explanation
Explanation of Lobbying Activities: Part II-B, Line 1: Covenant Health indirectly conducts lobbying activities through various membership organizations. A portion of membership dues paid is included in the amount on Line 1i.
Schedule C (Form 990 or 990EZ) 2012

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, 11a, 11b, 11c, 11d, 11e, 11f, 12a, or 12b
SchDMd Bullet Attach to Form 990. SchDMd Bullet See separate instructions.
OMB No. 1545-0047
2012
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 can 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 through 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, and not on a historic structure listed in the National Register .................... 2d  
3
Number of conservation easements modified, transferred, released, extinguished, or terminated by the organization during
the tax 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 section 170(h)(4)(B)(ii)? .......................................
9
In Part XIII, 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 (ASC 958), 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 XIII, the text of the footnote to its financial statements that describes these items.
b
If the organization elected, as permitted under SFAS 116 (ASC 958), 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 (ASC 958) 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 Paperwork Reduction Act Notice, see the Instructions for Form 990.
Cat. No. 52283D
Schedule D (Form 990) 2012

Schedule D (Form 990) 2012
Page 2
Part III
Organizations Maintaining Collections of Art, Historical Treasures, or Other Similar Assets (continued)
3
Using the organization’s acquisition, 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 XIII.
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 XIII 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 XIII. Check here if the explanation has been provided in Part XIII ........
Part V
Endowment Funds. Complete if the organization answered "Yes" to Form 990, Part IV, line 10.
(a)Current year (b)Prior year b (c)Two years back (d)Three years back (e)Four years back
1a Beginning of year balance ....          
b Contributions ........          
c Net investment earnings, gains, and 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 current year end balance (line 1g, column (a)) held as:
a
Board designated or quasi-endowment SchDMd Bullet  
b
Permanent endowment SchDMd Bullet  
c
Temporarily restricted endowment SchDMd Bullet  
The percentages in lines 2a, 2b, and 2c should equal 100%.
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 XIII the intended uses of the organization's endowment funds.
Part VI
Land, Buildings, and Equipment. See Form 990, Part X, line 10.
Description of property (a) Cost or other basis (investment) (b)Cost or other basis (other) (c) Accumulated depreciation (d) Book value
1a Land .................   9,427,981 9,427,981
b Buildings ................   18,149,919 2,570,368 15,579,551
c Leasehold improvements ............   1,236,240 1,054,426 181,814
d Equipment ................   18,886,866 14,619,519 4,267,347
e Other .................   71,257,828   71,257,828
Total. Add lines 1a through 1e. (Column (d) must equal Form 990, Part X, column (B), line 10(c).).......SchDMdBullet 100,714,521
Schedule D (Form 990) 2012

Schedule D (Form 990) 2012
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) must 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) must 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 5,989,241
(2) Assets Limited as to Use 1,553,852
(3) Bond Issuance Costs, Net 10,859,628
(4) Deferred Compensation 3,986,092
(5) Due from Affiliates, Net 84,707,986
(6) Long Term Deposit 304,481
(7) Other Receivables 143,875


Total. (Column (b) must equal Form 990, Part X, col.(B) line 15.)...........Small Bullet 107,545,155
Part X
Other Liabilities. See Form 990, Part X, line 25.
1.(a) Description of liability (b) Book value
Federal income taxes  
Long-Term ASO Agreement 2,867,796
Long-Term Deferred Compensation 5,784,976
Long-Term Reserve for Malpractice 17,330,447
Long-Term Reserve for Workers Comp 1,038,535





Total. (Column (b) must equal Form 990, Part X, col.(B) line 25.)Small Bullet 27,021,754
2. Fin 48 (ASC 740) Footnote. In Part XIII, 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 (ASC 740). Check here if the text of the footnote has been provided in Part XIII .....................................................
Schedule D (Form 990) 2012

Schedule D (Form 990) 2012
Page 4
Part XI 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 XIII.) ............ 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 XIII.) ........... 4b  
c Add lines 4a and 4b....................... 4c  
5 Total revenue. Add lines 3 and 4c. (This must equal Form 990, Part I, line 12.) ...... 5  
Part XII 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 XIII.) ............ 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 XIII.) ............ 4b  
c Add lines 4a and 4b....................... 4c  
5 Total expenses. Add lines 3 and 4c. (This must equal Form 990, Part I, line 18.) ...... 5  
Part XIII
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, line 2; Part XI, lines 2d and 4b; and Part XII, lines 2d and 4b. Also complete this part to provide any additional information.
Identifier Return Reference Explanation
Description of Uncertain Tax Positions Under FIN 48: Part X, Line 2: Part X, Line 2: Note B to the consolidated audited financial statements of Covenant Health reads in part: "Income taxes: Covenant and certain of its subsidiaries or controlled entities are exempt from income taxes pursuant to Section 501(c)(3) of the Internal Revenue Code. Accordingly, no provision for income taxes on qualifying activities has been made for these entities in the accompanying consolidated financial statements. However, certain entities and operations are subject to income taxes which are accounted for in accordance with Financial Accounting Standards Board (FASB) Accounting Standards Codification (ASC) 740, Income Taxes (See Note G)." Note G to the consolidated audited financial statements of Covenant Health, reads in part: "Covenant had no unrecognized tax benefits at December 31, 2012 and 2011. As such, no interest or penalties were recognized in the Consolidated Statements of Operations related to unrecognized tax benefits. At December 31, 2012, tax returns for 2009 through 2012 are subject to examination by the Internal Revenue Service. Covenant has no uncertain tax positions that would require financial statement recognition or disclosure under generally accepted accounting principles at December 31, 2012 or 2011."
Schedule D (Form 990) 2012

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
2012
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. Part II can be duplicated if additional space is needed.
(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 Society
871 Weisgarber Road
Knoxville,TN37909 		13-1788491 501(c)(3) 10,000       Support for 2012 Hope Gala
(2) American Heart Association
4708 Papermill Road
Knoxville,TN37909 		13-5613797 501(c)(3) 25,000       Sponsorship of 2012 Heart Walk and 2013 Gala
(3) Great Smoky Mtn Council Boy Scouts of America
PO Box 51885
Knoxville,TN37950 		62-0476811 501(c)(3) 7,000       Support for 2012 Friends of Scouting Campaign
(4) Cancer Support Community Inc
2230 Sutherland Avenue
Knoxville,TN37919 		58-1846210 501(c)(3) 15,000       Support for 2013 Cancer Support
(5) Catholic Charities of East TN Inc
3009 Lake Brook Blvd
Knoxville,TN37909 		62-1377551 501(c)(3) 43,000       Support of HUD housing and sponsorship of fundraisers
(6) Congressional Medal of Honor Society Convention
11400 Parkside Drive Ste 200
Knoxville,TN37934 		45-3413985 501(c)(3) 25,000       Support of 2014 Convention
(7)  

 
  		          Support of 2012 Legacy Dinner
(8) East TN Economic Development Agency
10215 Technology Drive Ste 202
Knoxville,TN37932 		62-1158958 501(c)(3) 70,000       General support
(9) East TN Children's Hospital
PO Box 15016
Knoxville,TN37901 		62-6002604 501(c)(3) 5,990       Support of 2012 Center Stage EventGeneral support
(10) Fort Sanders Foundation
280 Ft Sanders West Blvd Ste 202
Knoxville,TN37922 		62-1748601 501(c)(3) 10,000       Fundraisers benefiting Patricia Neal Rehab. Center, Peninsula, & the Hope Center
(11)  

 
  		          Support for Marblegate fundraiser
(12) Honor Air Knoxville
7536 Taggart Lane
Knoxville,TN37938 		26-2825063 501(c)(3) 20,000       General support
(13)  

 
  		          General support fundraiser - Southern Summer Nights
(14) Interfaith Health Clinic
315 Gill Avenue
Knoxville,TN37917 		58-1947641 501(c)(3) 62,000       General support for Interfaith Health Clinic
(15)  

 
  		          Support of 2012 Walk to Cure Diabetes
(16) Knoxville Academy of Medicine Foundation
115 Surburban Road
Knoxville,TN37923 		62-1458199 501(c)(3) 17,500       Knoxville Area Project Access - medical care for the needy
(17) Knoxville Community Development Corp
901 N Broadway
Knoxville,TN379213550 		62-6001582 501(c)(3) 62,500       Support for 2012 Fund Case Mgmt Services for At Risk Residents
(18) Knoxville Medical Mission Foundation
1932 Historic Ferry Way
Knoxville,TN37922 		30-0197352 501(c)(3) 10,000       General support
(19) Knoxville News Sentinel Charities Inc
2332 News Sentinel Drive
Knoxville,TN37921 		51-0141541 501(c)(3) 25,000       General support fundraiser - Knoxville Sentinel Open Tournament
(20) Knoxville Symphony Orchestra
100 S Gay St Ste 302
Knoxville,TN37901 		62-6008097 501(c)(3) 8,090       General support
(21) Knoxville Track Club
PO Box 32035
Knoxville,TN37930 		62-0731345 501(c)(3) 50,000       General support; Covenant Health Marathon
(22) Komen Knoxville Race for Cure
9724 Kingston Pike Ste 705
Knoxville,TN37922 		75-1835298 501(c)(3) 12,000       Race sponsor for organization supporting breast cancer research and awareness
(23)  

 
  		          General support
(24) Innovation Valley Inc
17 Market Square Ste 201
Knoxville,TN37902 		26-2087582 501(c)(3) 60,000       General support
(25) Morristown Hamblen Hospital Foundation
PO Box 1178
Morristown,TN37816 		62-1697090 501(c)(3) 9,050       General support fundraising
(26) Roane State Community College Foundation
276 Patton Lane
Harriman,TN37748 		58-1413034 501(c)(3) 150,000       Allied Health & Technolgy Building Pledge
(27) Robert F Thomas Foundation
PO Box 4395
Sevierville,TN37864 		58-1537582 501(c)(3) 7,000       Fundraisers to benefit Leconte Medical Center
(28) Sacred Heart Church
711 South Northshore Drive
Knoxville,TN37919 		62-0572260 501(c)(3) 8,000       Hope for Haiti medical outreach; general support for fundraising
(29) Thompson Cancer Survival Center Foundation
1915 White Avenue
Knoxville,TN37916 		58-2130450 501(c)(3) 7,000       2012 Buddy's Race for a Cure
(30)  

 
  		          2012 Rugby Park Sponsorship
(31)  

 
  		          General support
(32) Variety Children's Charity of East TN
7132 Regal Lane
Knoxville,TN37918 		33-1025696 501(c)(3) 20,000       General support
(33) W C Two
2351 Dandridge Avenue
Knoxville,TN37915 		62-1845117 501(c)(3) 10,000       General support
(34) Boys & Girls Club of the TN Valley
220 Carrick Street Ste 318
Knoxville,TN37921 		62-0475743 501(c)(3) 7,411       Drug screenings
2
Enter total number of section 501(c)(3) and government organizations listed in the line 1 table ................ Bullet Image
27
3
Enter total number of other organizations listed in the line 1 table ........................ . Bullet Image
0
For Paperwork Reduction Act Notice, see the Instructions for Form 990.
Cat. No. 50055P
Schedule I (Form 990) 2012

Schedule I (Form 990) 2012
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.
Part III can be duplicated 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) Scholarships to employees of related facilities 41 72,874      












Part IV
Supplemental Information.
Complete this part to provide the information required in Part I, line 2, Part III, column (b), 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 for charitable contributions from Covenant Health are determined by a review of a written proposal or similar documentation submitted by the requesting organization. Intended use of funds must be stated or evident in the proposal/documentation. Recipient organizations generally verify use of funds in one or more of the following ways: event publicity, follow-up reports or newsletters, sponsor recognition at a program or event, itemized receipts, year-end summaries.
Schedule I (Form 990) 2012


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
2012
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 or provision of all of 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 filing organization used to establish the compensation of the
organization's CEO/Executive Director. Check all that apply. Do not check any boxes for methods
used by a related organization to establish compensation of the CEO/Executive Director, but explain in Part III.
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
Yes
 
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 Regulations 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 Paperwork Reduction Act Notice, see the Instructions for Form 990.
Cat. No. 50053T
Schedule J (Form 990) 2012

Schedule J (Form 990) 2012
Page 2
Part II
Officers, Directors, Trustees, Key Employees, and Highest Compensated Employees. Use duplicate copies if additional space is 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) for each listed individual must equal the total amount of Form 990, Part VII, Section A, line 1a, applicable column (D) and (E) amounts for that individual.
(A) Name and Title (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 as deferred
in prior Form 990
(i) Base compensation (ii) Bonus & incentive compensation (iii) Other reportable compensation
(1)Anthony L SpeziaPresident & CEO (i)
(ii)		 941,953
0 		379,600
0 		205,294
0 		213,800
0 		16,574
0 		1,757,221
0 		0
0
(2)John T GeppiEVP/CFO (i)
(ii)		 421,940
0 		171,991
0 		79,164
0 		9,800
0 		17,338
0 		700,233
0 		0
0
(3)James D VandersteegEVP-Hospital Operations (i)
(ii)		 463,378
0 		182,553
0 		63,231
0 		9,800
0 		24,070
0 		743,032
0 		0
0
(4)William M WardSVP-Chief Information Officer (i)
(ii)		 236,135
0 		72,268
0 		42,594
0 		9,800
0 		23,360
0 		384,157
0 		0
0
(5)Lawrence C KleinmanEVP-Human Resources (i)
(ii)		 296,364
0 		75,000
0 		26,872
0 		8,385
0 		10,634
0 		417,255
0 		0
0
(6)Janice McKinleySVP-Quality, Safety, & Nursing (i)
(ii)		 192,578
0 		48,994
0 		20,735
0 		8,722
0 		8,612
0 		279,641
0 		0
0
(7)Larry R LassiterPresident/CAO - Parkwest Med Ctr (i)
(ii)		 290,786
0 		89,677
0 		44,178
0 		9,800
0 		21,162
0 		455,603
0 		0
0
(8)Michael R Belbeck JrPresident/CAO - Methodist (i)
(ii)		 281,367
0 		58,400
0 		46,825
0 		9,800
0 		25,019
0 		421,411
0 		0
0
(9)Keith N AltshulerPresident/CAO - Fort Sanders Reg (i)
(ii)		 256,759
0 		53,791
0 		39,383
0 		9,800
0 		20,539
0 		380,272
0 		0
0
(10)Gordon E LintzPresident/CAO - Morristown (i)
(ii)		 199,460
0 		56,734
0 		52,129
0 		9,800
0 		9,345
0 		327,468
0 		0
0
(11)James D GannPresident/CAO (retired)- Roane (i)
(ii)		 8,196
0 		23,709
0 		222,665
0 		7,310
0 		20,179
0 		282,059
0 		0
0
(12)Richard L ClarkFormer HCE (i)
(ii)		 0
0 		0
0 		273,826
0 		9,800
0 		0
0 		283,626
0 		0
0
Schedule J (Form 990) 2012

Schedule J (Form 990) 2012
Page 3
Part III
Supplemental Information
Complete this part to provide the information, explanation, or descriptions required for Part I, lines 1a, 1b, 3, 4a, 4b, 4c, 5a, 5b, 6a, 6b, 7, and 8, and for Part II.
Also complete this part for any additional information.
Identifier Return Reference Explanation
  Part I, Line 1a Part I, Line 1a: Tax gross-up payments are provided to certain executives and managers. Additionally, moving expenses are provided to certain executives and managers in connection with relocation. These benefits are treated as taxable compensation to the recipients. Officers and Board members attending official Board retreats are offered a discretionary spending allowance that may be used for incidental spending and/or companion travel. The allowance is treated as taxable compensation to the recipient. In addition, Board members receive tax indemnification payments related to reportable compensation from the spending allowances, which are also treated as taxable compensation.
  Part I, Lines 4a-b Part I, Lines 4a-b: Severance payments were provided to the following individuals: James Gann - $106,389, Richard Clark - $271,170. Anthony Spezia was a participant in two nonqualified deferred compensation plans, which will be referred to as Plan A and Plan B. In 2011 Mr. Spezia vested in Plan A, and the accumulated balance as of August 1, 2011 was included in his 2011 taxable income. An Amendment to Plan A was adopted effective August 1, 2011 which terminated further accruals (contributions) to the plan. However, the Amendment does allow the accrual of interest on undistributed amounts which will be subject to risk of forfeiture until such time as indicated in the Amendment. Interest earned by Plan A in 2012 amounted to $71,781.22 and is not required to be reported in Part II, as Mr. Spezia is not substantially vested in earnings accumulated after July 31, 2011. Plan B was established in 2011. Employer contributions to Plan B during 2012 totaled $204,000, which is reported in Column C of Schedule J, Part II. Interest earned by Plan B during 2012 of $17,909.59 is not required to be reported in compensation in Part II, as Mr. Spezia is not substantially vested in Plan B.
Schedule J (Form 990) 2012

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 Part VI.
SchKMediumBullet Attach to Form 990. SchKMediumBullet See separate instructions.
OMB No. 1545-0047
2012
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 Part VI.   X   X   X
B Health Educ & Housing Facil Brd of Knox Co
  		62-1220275 499523VR6 03-24-2011 103,700,000 See Part VI.   X   X   X
C Health Educ & Housing Facil Brd of Knox Co
  		62-1220275 noneavail 09-15-2011 135,500,000 See Part VI.   X   X   X
D Health Educ & Housing Facil Brd of Knox Co
  		62-1220275 noneavail 09-15-2011 125,000,000 See Part VI.   X   X   X
Health Educ & Housing Facil Brd of Knox Co
  		62-1220275 499527BM0 12-13-2012 161,291,013 See Part VI.   X   X   X
Part II
Proceeds
A B C D
1 Amount of bonds retired . . . . . . . . . . . . . . 122,000,000 122,000,000 35,500,000  
2 Amount of bonds legally defeased . . . . . . . . . . . 23,755,001      
3 Total proceeds of issue . . . . . . . . . . . . . . 46,245,448 103,700,000 135,500,000 125,000,000
4 Gross proceeds in reserve funds . . . . . . . . . . . .        
5 Capitalized interest from proceeds . . . . . . . . . . .        
6 Proceeds in refunding escrows . . . . . . . . . . . . 17,872,725      
7 Issuance costs from proceeds . . . . . . . . . . . . 506,941      
8 Credit enhancement from proceeds . . . . . . . . . . .        
9 Working capital expenditures from proceeds . . . . . . . . .        
10 Capital expenditures from proceeds . . . . . . . . . . . 21,983,506   64,712,322  
11 Other spent proceeds . . . . . . . . . . . . . .        
12 Other unspent proceeds . . . . . . . . . . . . . . 35,287,678   35,287,678  
13 Year of substantial completion . . . . . . . . . . . . 2010 2006 2010
Yes No Yes No Yes No Yes No
14 Were the bonds issued as part of a current refunding issue? . . . . .   X X   X   X  
15 Were the bonds issued as part of an advance refunding issue? . . . . . X     X   X   X
16 Has the final allocation of proceeds been made? . . . . . . . . X   X     X X  
17 Does the organization maintain adequate books and records to support the final allocation of proceeds? . . . . . . . . . . . . . . X   X   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   X    
2 Are there any lease arrangements that may result in private business use of bond-financed property? . . . . . . . . .   X   X   X    
For Paperwork Reduction Act Notice, see the Instructions for Form 990.
Cat. No. 50193E
Schedule K (Form 990) 2012
Schedule K (Form 990) 2012
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 of bond-financed property? . . . . . . . . . . . .   X   X   X    
b If "Yes" to line 3a, does the organization routinely engage bond counsel or other outside counsel to review any management or service contracts relating to the financed property? . . . . . . . . . . . . . . . .                
c Are there any research agreements that may result in private business use of bond-financed property? . . . . . . . . . . . . . . .   X   X   X    
d If "Yes" to line 3c, does the organization routinely engage bond counsel or other outside counsel to review any research agreements relating to the financed property? .                
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 0.00000% 0.00000% 0.00000%   %
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 0.00000% 0.00000% 0.00000%   %
6 Total of lines 4 and 5 . . . . . . . . . . . . . . . 0.00000% 0.00000% 0.00000%   %
7 Does the bond issue meet the private security or payment test? . . . . .   X   X   X    
8a Has there been a sale or disposition of any of the bond financed property to a nongovernmental person other than a 501(c)(3) organization since the bonds were issued?. . . . . . . . . . . . . . . . .   X   X   X    
b If “Yes” to line 8a, enter the percentage of bond-financed property sold or disposed of.   %   %   %   %
c If “Yes” to line 8a, was any remedial action taken pursuant to Regulations sections 1.141-12 and 1.145-2? . . . . . . . . . . . . .                
9 Has the organization established written procedures to ensure that all nonqualified bonds of the issue are remediated in accordance with the requirements under
Regulations sections 1.141-12 and 1.145-2?
X   X   X      
Part IV
Arbitrage
A B C D
Yes No Yes No Yes No Yes No
1 Has the issuer filed Form 8038-T? . . . . . X     X   X   X
2 If "No" to line 1, did the following apply? . . . .
a Rebate not due yet? . . . . . . . . X   X   X   X  
b Exception to rebate? . . . . . . . .   X   X   X   X
c No rebate due? . . . . . . . . . .
  X   X   X   X
If you checked "No rebate due" in line 2c, provide in Part VI the date the rebate computation was performed
3 Is the bond issue a variable rate issue? . . . .   X X   X   X  
4a Has the organization or the governmental issuer entered into a qualified hedge with respect to the bond issue?   X   X   X   X
b Name of provider . . . . . . . . .  
  		 
  		 
  		 
 
c Term of hedge . . . . . . . . . .        
d Was the hedge superintegrated? . . . . . .                
e Was a hedge terminated? . . . . . . .                
Schedule K (Form 990) 2012
Schedule K (Form 990) 2012
Page 3
Part IV
Arbitrage (Continued)
A B C D
Yes No Yes No Yes No Yes No
5a Were gross proceeds invested in a guaranteed investment contract (GIC)? . . . . . . . . .   X   X   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? . . . . .                
6 Were any gross proceeds invested beyond an available temporary period? . . . . . . . .   X   X   X   X
7 Has the organization established written procedures to monitor the requirements of section 148? . . . X   X   X   X  
Part V
Procedures To Undertake Corrective Action
A B C D
Yes No Yes No Yes No Yes No
1 Has the organization established written procedures to ensure that violations of federal tax requirements are timely identified and corrected through the voluntary closing agreement program if self-remediation is not available under applicable regulations? X   X   X   X  
Part VI
Supplemental Information. Complete this part to provide additional information for responses to questions on Schedule K (see instructions).
Identifier Return Reference Explanation
    As there are five bond issues to be presented on Schedule K, there is an additonal Schedule K included. Schedule K, Part I, Column F Bond Issues - description of purpose: Bond Issue A, date of issue 12/20/2006 - These capital appreciation bonds were initially related to a larger bond issue, subsequently refinanced as noted below, the majority of which were used to build a replacement hospital and cancer treatment center in Sevier County and to make numerous renovations and improvements at all the member hospitals. A portion of the capital appreciation bonds were used for the refunding of bonds issued December 12, 2002. Bond Issue B, date of issue 3/24/2011 - These bonds were issued for the partial refunding of bonds issued December 12, 2002. Bond Issue C, date of issue 9/15/2011 - $35,500,000 relates to the conversion of a portion of the bonds issued December 20, 2006. All other proceeds are designated to build a replacement hospital in Roane County and for various facility and equipment improvements and additions at other facilities. Bond Issue D, date of issue 9/15/2011 - These bonds relate to the conversion of a portion of bonds issued December 20, 2006. Schedule K - Second Form Bond Issue A, date of issue 12/13/2012 - These bonds were issued to refund capital appreciation bonds and capital interest bonds issued December 12, 2002.
Schedule K (Form 990) 2012

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 Part VI.
SchKMediumBullet Attach to Form 990. SchKMediumBullet See separate instructions.
OMB No. 1545-0047
2012
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 Part VI.   X   X   X
B Health Educ & Housing Facil Brd of Knox Co
  		62-1220275 499523VR6 03-24-2011 103,700,000 See Part VI.   X   X   X
C Health Educ & Housing Facil Brd of Knox Co
  		62-1220275 noneavail 09-15-2011 135,500,000 See Part VI.   X   X   X
D Health Educ & Housing Facil Brd of Knox Co
  		62-1220275 noneavail 09-15-2011 125,000,000 See Part VI.   X   X   X
Health Educ & Housing Facil Brd of Knox Co
  		62-1220275 499527BM0 12-13-2012 161,291,013 See Part VI.   X   X   X
Part II
Proceeds
A B C D
1 Amount of bonds retired . . . . . . . . . . . . . . 122,000,000 122,000,000 35,500,000  
2 Amount of bonds legally defeased . . . . . . . . . . . 23,755,001      
3 Total proceeds of issue . . . . . . . . . . . . . . 46,245,448 103,700,000 135,500,000 125,000,000
4 Gross proceeds in reserve funds . . . . . . . . . . . .        
5 Capitalized interest from proceeds . . . . . . . . . . .        
6 Proceeds in refunding escrows . . . . . . . . . . . . 17,872,725      
7 Issuance costs from proceeds . . . . . . . . . . . . 506,941      
8 Credit enhancement from proceeds . . . . . . . . . . .        
9 Working capital expenditures from proceeds . . . . . . . . .        
10 Capital expenditures from proceeds . . . . . . . . . . . 21,983,506   64,712,322  
11 Other spent proceeds . . . . . . . . . . . . . .        
12 Other unspent proceeds . . . . . . . . . . . . . . 35,287,678   35,287,678  
13 Year of substantial completion . . . . . . . . . . . . 2010 2006 2010
Yes No Yes No Yes No Yes No
14 Were the bonds issued as part of a current refunding issue? . . . . .   X X   X   X  
15 Were the bonds issued as part of an advance refunding issue? . . . . . X     X   X   X
16 Has the final allocation of proceeds been made? . . . . . . . . X   X     X X  
17 Does the organization maintain adequate books and records to support the final allocation of proceeds? . . . . . . . . . . . . . . X   X   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   X    
2 Are there any lease arrangements that may result in private business use of bond-financed property? . . . . . . . . .   X   X   X    
For Paperwork Reduction Act Notice, see the Instructions for Form 990.
Cat. No. 50193E
Schedule K (Form 990) 2012
Schedule K (Form 990) 2012
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 of bond-financed property? . . . . . . . . . . . .   X   X   X    
b If "Yes" to line 3a, does the organization routinely engage bond counsel or other outside counsel to review any management or service contracts relating to the financed property? . . . . . . . . . . . . . . . .                
c Are there any research agreements that may result in private business use of bond-financed property? . . . . . . . . . . . . . . .   X   X   X    
d If "Yes" to line 3c, does the organization routinely engage bond counsel or other outside counsel to review any research agreements relating to the financed property? .                
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 0.00000% 0.00000% 0.00000%   %
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 0.00000% 0.00000% 0.00000%   %
6 Total of lines 4 and 5 . . . . . . . . . . . . . . . 0.00000% 0.00000% 0.00000%   %
7 Does the bond issue meet the private security or payment test? . . . . .   X   X   X    
8a Has there been a sale or disposition of any of the bond financed property to a nongovernmental person other than a 501(c)(3) organization since the bonds were issued?. . . . . . . . . . . . . . . . .   X   X   X    
b If “Yes” to line 8a, enter the percentage of bond-financed property sold or disposed of.   %   %   %   %
c If “Yes” to line 8a, was any remedial action taken pursuant to Regulations sections 1.141-12 and 1.145-2? . . . . . . . . . . . . .                
9 Has the organization established written procedures to ensure that all nonqualified bonds of the issue are remediated in accordance with the requirements under
Regulations sections 1.141-12 and 1.145-2?
X   X   X      
Part IV
Arbitrage
A B C D
Yes No Yes No Yes No Yes No
1 Has the issuer filed Form 8038-T? . . . . . X     X   X   X
2 If "No" to line 1, did the following apply? . . . .
a Rebate not due yet? . . . . . . . . X   X   X   X  
b Exception to rebate? . . . . . . . .   X   X   X   X
c No rebate due? . . . . . . . . . .
  X   X   X   X
If you checked "No rebate due" in line 2c, provide in Part VI the date the rebate computation was performed
3 Is the bond issue a variable rate issue? . . . .   X X   X   X  
4a Has the organization or the governmental issuer entered into a qualified hedge with respect to the bond issue?   X   X   X   X
b Name of provider . . . . . . . . .  
  		 
  		 
  		 
 
c Term of hedge . . . . . . . . . .        
d Was the hedge superintegrated? . . . . . .                
e Was a hedge terminated? . . . . . . .                
Schedule K (Form 990) 2012
Schedule K (Form 990) 2012
Page 3
Part IV
Arbitrage (Continued)
A B C D
Yes No Yes No Yes No Yes No
5a Were gross proceeds invested in a guaranteed investment contract (GIC)? . . . . . . . . .   X   X   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? . . . . .                
6 Were any gross proceeds invested beyond an available temporary period? . . . . . . . .   X   X   X   X
7 Has the organization established written procedures to monitor the requirements of section 148? . . . X   X   X   X  
Part V
Procedures To Undertake Corrective Action
A B C D
Yes No Yes No Yes No Yes No
1 Has the organization established written procedures to ensure that violations of federal tax requirements are timely identified and corrected through the voluntary closing agreement program if self-remediation is not available under applicable regulations? X   X   X   X  
Part VI
Supplemental Information. Complete this part to provide additional information for responses to questions on Schedule K (see instructions).
Identifier Return Reference Explanation
    As there are five bond issues to be presented on Schedule K, there is an additonal Schedule K included. Schedule K, Part I, Column F Bond Issues - description of purpose: Bond Issue A, date of issue 12/20/2006 - These capital appreciation bonds were initially related to a larger bond issue, subsequently refinanced as noted below, the majority of which were used to build a replacement hospital and cancer treatment center in Sevier County and to make numerous renovations and improvements at all the member hospitals. A portion of the capital appreciation bonds were used for the refunding of bonds issued December 12, 2002. Bond Issue B, date of issue 3/24/2011 - These bonds were issued for the partial refunding of bonds issued December 12, 2002. Bond Issue C, date of issue 9/15/2011 - $35,500,000 relates to the conversion of a portion of the bonds issued December 20, 2006. All other proceeds are designated to build a replacement hospital in Roane County and for various facility and equipment improvements and additions at other facilities. Bond Issue D, date of issue 9/15/2011 - These bonds relate to the conversion of a portion of bonds issued December 20, 2006. Schedule K - Second Form Bond Issue A, date of issue 12/13/2012 - These bonds were issued to refund capital appreciation bonds and capital interest bonds issued December 12, 2002.
Schedule K (Form 990) 2012

Additional Data


Software ID:  
Software Version:  

Schedule L
(Form 990 or 990-EZ)
Department of the Treasury
Internal Revenue Service
Transactions with Interested Persons
MediumBullet Complete if the organization answered
"Yes" on Form 990, Part IV, lines 25a, 25b, 26, 27, 28a, 28b, or 28c,
or Form 990-EZ, Part V, line 38a or 40b.
MediumBullet Attach to Form 990 or Form 990-EZ. MediumBullet See separate instructions.
OMB No. 1545-0047
2012
Open to Public Inspection
Name of the organization
Covenant Health
 
Employer identification number

62-1646734
Part I
Excess Benefit Transactions (section 501(c)(3) and section 501(c)(4) organizations only).
Complete if the organization answered "Yes" on Form 990, Part IV, line 25a or 25b, or Form 990-EZ, Part V, line 40b.
1(a) Name of disqualified person (b) Relationship between disqualified person and organization (c) Description of transaction (d) Corrected?
Yes No





2
Enter the amount of tax incurred by organization managers or disqualified persons during the year under section 4958. ........................... Bullet Image$
 
3
Enter the amount of tax, if any, on line 2, above, reimbursed by the organization ....... Bullet Image$
 

Part II
Loans to and/or From Interested Persons.
Complete if the organization answered "Yes" on Form 990-EZ, Part V, line 38a, or Form 990, Part IV, line 26; or if the organization reported an amount on Form 990, Part X, line 5, 6, or 22
(a) Name of interested person (b) Relationship with organization (c) Purpose of loan (d) Loan to or from the organization? (e)Original principal amount (f)Balance due (g) In default? (h) Approved by board or committee? (i)Written agreement?
To From Yes No Yes No Yes No
Total ......Small Bullet $  
Part III
Grants or Assistance Benefitting Interested Persons.
Complete if the organization answered "Yes" on Form 990, Part IV, line 27.
(a) Name of interested person (b) Relationship between interested person and the organization (c) Amount of assistance (d) Type of assistance (e) Purpose of assistance
For Paperwork Reduction Act Notice, see the Instructions for Form 990 or 990-EZ.
Cat. No. 50056A
Schedule L (Form 990 or 990-EZ) 2012
Schedule L (Form 990 or 990-EZ) 2012
Page 2
Part IV
Business Transactions Involving Interested Persons.
Complete if the organization answered "Yes" on Form 990, Part IV, line 28a, 28b, or 28c.
(a) Name of interested person (b) Relationship between interested person and the organization (c) Amount of transaction (d) Description of transaction (e) Sharing of organization's revenues?
Yes No
(1) First Tennessee Bank
  		Independent contractor 202,132 Investment management and loan closing fees   No
Part V
Supplemental Information
Complete this part to provide additional information for responses to questions on Schedule L (see instructions).
Identifier Return Reference Explanation
Schedule L (Form 990 or 990-EZ) 2012

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 organizations answered "Yes" on Form 990, Part IV, lines 29 or 30.
Right pointing arrow large image Attach to Form 990.
OMB No. 1545-0047
2012
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)
Noncash contribution amounts reported on
Form 990, Part VIII, line 1g 		(d)
Method of determining
noncash contribution amounts
1 Art—Works of art .... X 53 22,141 Retail value,expert
2 Art—Historical treasures .        
3 Art—Fractional interests ..        
4 Books and publications .. X 175 FMV
5 Clothing and household
goods ....... 		X 32,567 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 1 520 Comparables
19 Food inventory ... X 3 1,556 Retail value
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 84 32,104 Retail or face value
26 Other Right pointing arrow large image ( Various ) X 19 9,385 Various
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 noncash
contributions? ..........................
32a
 
No
b
If "Yes," describe in Part II.
33
If the organization did not report an amount in column (c) for a type of property for which column (a) is checked,
describe in Part II.
For Paperwork Reduction Act Notice, see the Instructions for Form 990.
Cat. No. 51227J
Schedule M (Form 990) (2012)
Schedule M (Form 990) (2012)
Page 2
Part II
Supplemental Information. Complete this part to provide the information required by Part I, lines 30b,
32b, and 33, and whether the organization is reporting in Part I, column (b), the number of contributions, the number of items received, or a combination of both. Also complete this part for any additional information.
Identifier Return Reference Explanation
Schedule M (Form 990) (2012)
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
2012
Open to Public
Inspection
Name of the organization
Covenant Health
 
Employer identification number

62-1646734
Identifier Return Reference Explanation
Organization Mission Statement Form 990, Part III, Line 1 In 1996, Fort Sanders Health System and MMC Healthcare System of Oak Ridge consolidated to form Covenant Health, with a mission of serving its communities by improving the quality of life through better health. Covenant Health is a nationally recognized top health system in many areas: patient care, quality performance, cost, integration, information technology, finances, ethics and innovation. To meet the challenges and implications of healthcare reform, Covenant Health has committed to these imperatives: * Serving the community as a not-for-profit health system. * Leading in quality and service. * Outstanding governance and leadership. * An engaged work force with the right skill sets. * Being the practice environment of choice for physicians. * Reinvesting in communities, providing programs, services, technologies and facilities that improve local healthcare services and patient care. Covenant Health has invested more than a billion dollars in its communities since 2000 - a commitment no other healthcare organization has approached. Covenant Health has opened new hospitals, expanded services, and brought cutting-edge medical technology to the region. * Meeting the challenges of the healthcare environment through effective strategic planning and wise use of resources. * Providing excellent care to every patient, every time. This commitment to excellence will help the system accomplish its mission of improving the quality of life through better health. In order to deliver on the promise of excellence in today's healthcare environment, preparation is critical. Covenant Health's Board of Directors ("the Board") is committed to advancing its understanding of health care. The Board is continually learning about hospitals' operational challenges and how the current environment affects physicians and their practices. The healthcare universe is constantly shifting. The Board members are volunteers, but have a passion for Covenant Health's mission, and a desire to expand its knowledge in preparation for leading the organization. Dedication to a shared goal is essential. Very few community endeavors are as important as making high-quality health care available to its citizens. Our patients and their families are at vulnerable points in their lives, and the Board believes it is a privilege to meet their healthcare needs. Experience is a valuable asset. Covenant Health has a legacy of delivering high-quality care, which will help to weather the storms of change, including transitioning to value-based reimbursement. COVENANT HEALTH MEMBER ORGANIZATIONS AND SERVICES Covenant Health Board members and administrative leaders serve their communities through strategic planning and successful operation of these member organizations: Hospitals and Other Healthcare Providers: Covenant Homecare and Hospice Fort Loudoun Medical Center Fort Sanders Perinatal Center Fort Sanders Regional Medical Center LeConte Medical Center Methodist Medical Center of Oak Ridge Morristown-Hamblen Healthcare System Parkwest Medical Center Peninsula Hospital, a Division of Parkwest Medical Center Roane County Medical Center Thompson Cancer Survival Center Thompson Oncology Group Knoxville Heart Group Outpatient and Specialty Care Departments, and Joint Ventures: Fort Sanders West Diagnostic Center Fort Sanders West Outpatient Surgery Center Patricia Neal Rehabilitation Center Peninsula Outpatient Centers Fort Sanders Sevier Nursing Home Foundations: Fort Sanders Foundation Methodist Medical Center Foundation Morristown-Hamblen Hospital Foundation Thompson Cancer Survival Center Foundation BRINGING QUALITY CARE TO LOCAL COMMUNITIES Covenant Health delivers quality care, with services designed to meet the specific needs of people in the communities it serves. Seven acute care hospitals located in Knoxville and surrounding areas comprise the foundation of the health system. The hospitals offer comprehensive care, including emergency care, specialty services, and a full range of diagnostics and treatment, provided by board-certified medical staffs. Three Covenant Health hospitals - Fort Sanders Regional, Methodist, and Parkwest Medical Centers, were named among the top 10 hospitals in Tennessee in 2013 by U.S. News and World Report, recognizing excellence in both overall and specialty care. Several hospitals have been recognized for clinical accomplishments by VHA, Inc., a cooperative of non-profit healthcare organizations. In 2013, the community celebrated the opening of the new 50-bed Roane County Medical Center in Harriman. The new hospital brings expanded medical services and sophisticated technology to the people of Roane County. In addition to comprehensive hospital services, Covenant Health provides: * Innovative cancer care and technologies to deliver radiation therapy and other cancer treatment in Knox, Sevier, Anderson and Hamblen counties. * Nationally recognized care for patients suffering from physical disabilities, stroke and traumatic brain injury at Fort Sanders Regional Medical Center's Patricia Neal Rehabilitation Center. * Affiliated physician clinics throughout the region which offers convenient access to primary and specialty care. * Rehabilitation services including physical therapy, speech therapy, sports medicine, and specialized therapy such as hand therapy and vestibular (balance) rehabilitation. RACING AGAINST TIME AND DISTANCE IN STROKE CARE With Fort Sanders Regional Medical Center's "tele-stroke" robot, East Tennessee stroke patients can benefit from early consultation with the hospital's stroke experts - regardless of where patients are located across the region. Fort Sanders Regional Medical Center ("Fort Sanders") introduced robots to the region in 2012. The InTouch R7 robot is a mobile communications platform that enables stroke patients to receive consults from Fort Sanders' neurologists via its video screen "face." The robot allows neurologist's availability to patients in outlying areas 24 hours a day. Covenant Health stationed its first two robots in the emergency departments at Parkwest Medical Center in Knoxville and LeConte Medical Center in Sevierville. The telestroke network allows physicians in surrounding hospitals to use live Web video streaming to consult with Fort Sanders Stroke Center neurologists as soon as a patient arrives at the community hospital. The neurologist can remotely review patient information and examine and talk with the patient, family members and local clinicians to help determine the best course of treatment, all at the patient's bedside. A STROKE CENTER OF EXCELLENCE Fort Sanders is a Stroke Center of Excellence, and the only facility in the region to hold both a Comprehensive Stroke Center certification from the Joint Commission and three separate stroke accreditations from the Commission on the Accreditation of Rehabilitation Facilities. Fort Sanders has a team of experts available to treat patients 24 hours a day, seven days a week. The stroke team includes emergency room physicians, neurologists, neurosurgeons, neurointerventional radiologists, nurses and therapists who quickly diagnose patients and use the most technically advanced methods available to remove clots, repair broken arteries that cause strokes, and restore blood flow to the brain.
    TAVR - CHARTING NEW DIRECTIONS IN HEART CARE In 2012, Parkwest Medical Center ("Parkwest") performed its first transcatheter aortic valve replacement (TAVR) procedure. Parkwest is the first hospital in the area to offer TAVR as a minimally invasive procedure to help men and women with the progressive, life-threatening condition known as aortic stenosis. Within the first year, the TAVR team of physicians from Parkwest and Fort Sanders Regional Medical Centers performed surgery for nearly 60 people who were deemed inoperable for traditional open-heart surgery. The patients received new heart valves via a catheter tube inserted either into the femoral artery or through the rib cage. Recovery is markedly shorter than traditional open-heart surgery. In most cases the patients were discharged from the hospital within three to six days. An important aspect of TAVR is its multi-disciplinary approach. The TAVR team includes physicians specializing in cardiovascular and cardiothoracic surgery, interventional cardiology, and cardiac anesthesiology, as well as nurses and technicians with specialized training. The operating room used for TAVR procedures at Parkwest is also multi-disciplinary in design. The $2.6 million hybrid operating room combines the resources of a cardiac catheterization lab and an operating room, including the imaging equipment needed for minimally invasive procedures. ACHIEVING QUALITY THROUGH PARTNERSHIPS WITH PHYSICIANS Overall, Covenant Health's desire for alignment is driven by the need to fully evolve as a healthcare system. In pursuing its goal of outstanding quality and seamless continuum of care, Covenant Medical Management, Inc. (CMM), a for-profit entity in the Covenant Health system, has developed models with physicians that include both employment and joint ventures. CMM provides practice management services and support to over 120 primary care and specialty physicians in more than 60 practices in East Tennessee. CMM recently added Southern Medical Group and Family Care Specialists to its employed physician groups that include: * Cardiology Associates of East Tennessee * Crossville Medical Group * Fort Sanders Women's Specialists * Tennessee Brain and Spine CMM also acquired a new, separate corporation, East Tennessee Cardiovascular Surgery Group, in 2012. Prior to joining the Covenant Health system, the surgeons in this practice served as the primary cardiac surgeons for Fort Sanders Regional, Methodist, and Parkwest Medical Centers and worked in the system's Valve Centers and TAVR program. BEHAVIORAL HEALTH - A COMMITMENT TO ESSENTIAL SERVICES In 2012, Peninsula, a division of Parkwest Medical Center, faced an unprecedented challenge: Lakeshore, a state-funded mental health institute, would be closing its doors for good, and the majority of patients would funnel into Peninsula Hospital. The closing was a strategic move by the state Department of Mental Health to follow the national trend of moving behavioral health toward community-based care and away from state-funded care. With a multi-professional team made up of experienced people from across the continuum of mental health care, Peninsula laid out a plan to accommodate the influx of hospital admissions, reduce costs, and improve the quality of care for mental health patients. The team was challenged by not only having more patients, but patients with serious and complex mental disorders. Changes in staffing and processes helped create a smooth admission process and improvement of service. On average, Peninsula serves about a dozen more inpatients per day since Lakeshore closed. Even with the additional volume, Peninsula has been able to increase its customer satisfaction score and maintain or improve its performance in safety quality measures. Many of the changes which resulted in taking the patients from Lakeshore translated to better service. For example, a process was developed to assess and enroll the patients in CoverRX, the state-funded program for prescription coverage. Patients have benefited by increased collaborative efforts within the community such as regular meetings with a community providers group including representatives from local law enforcement, hospital emergency departments, mobile crisis, and a state mental health facility. The group works on the continuum of services for behavioral health patients in the area. Peninsula participates in the Crisis Intervention Training (CIT) for officers from the surrounding areas' police and sheriff's offices. The training facilitates understanding about mental illness, and when that happens, patients benefit. A partnership with the State of Tennessee brought improvements to the community based care of mental health patients, such as transportation and medications. As a result, more outpatients are keeping their first appointments, and there are a lower number of readmissions. In addition to the 155-bed inpatient psychiatric hospital in Blount County, Peninsula also has outpatient facilities in Knox, Blount, Loudon and Sevier counties. SETTING THE STANDARD FOR TECHNOLOGY The recently enacted American Recovery and Reinvestment Act includes incentives and penalties designed to accelerate our nation's adoption and "meaningful use" of electronic health records, ("EHRs"). The implementation of meaningful use initiatives is changing the way healthcare is delivered not only at Covenant Health, but also across Tennessee, and throughout the U.S. With widespread adoption, EHRs can: * make a patient's current health information available in a single, secure, shared record, * provide real-time decision support designed to hardwire best practices and reduce care variability, * reduce paperwork, duplicate testing and other inefficiencies. Meaningful Use provides the technology infrastructure and electronic applications to connect care settings, reduce costs, improve efficiency and standardize quality. From 2015 forward, for every year that meaningful use requirements are not met, providers will receive penalties in the form of reduced reimbursement. At Covenant Health, interdisciplinary and multidisciplinary operational teams have been involved in developing and implementing applications and processes related to the main components of Meaningful Use: * E-prescription writing, and computerized patient order entry, * Interoperability, or exchanging key clinical information among providers and patients, * Automated quality reporting. Through Meaningful Use initiatives Covenant Health will transform the way it delivers care by improving patient outcomes, clinical quality, patient safety and organizational effectiveness. Covenant Health has installed a record number of applications related to Meaningful Use. Seven initiatives ranging from admission databases and medication reconciliation (important for patient safety) to computerized patient order entry and physician practice management software took place in 2012 and continued in 2013. The successful installation of multiple applications in a one-year period is unprecedented in the IT world. Quality assurance processes are in place to ensure delivery of the best applications and processes for patient care, clinical quality, and patient safety.
    "MOST WIRED" Hospitals & Health Networks magazine, the journal of the American Hospital Association, has named Covenant Health among the nation's Most Wired healthcare organizations in the 15th annual Most Wired Survey and Benchmarking Study. It is the 10th time that Covenant Health has been named to the Most Wired list. Although Covenant has been named among the nation's Most Wired many times, the health systems that made the list in recent years have had to meet the demands of a more stringent analytic structure. The Most Wired survey includes questions about IT initiatives that support Meaningful Use requirements. It measures IT achievements in four focus sections: infrastructure, business and administrative management, clinical quality and safety (hospital inpatient/outpatient) and clinical integration (ambulatory/physician/community). Participating organizations must meet specific criteria for each section in order to be named "Most Wired." Most Wired surveys were completed by 659 healthcare organizations representing 1,713 hospitals, or roughly 30 percent of all U.S. hospitals. PHILANTHROPY TURNS CHALLENGE INTO OPPORTUNITY The Covenant Health Office of Philanthropy coordinates the philanthropic contributions of individuals and businesses throughout East Tennessee and beyond in support of health care in the region. Fund raising efforts are led by volunteer boards and staff at four foundations: Fort Sanders Foundation, Methodist Medical Center Foundation, Morristown-Hamblen Hospital Foundation, and Thompson Cancer Survival Center Foundation. When Fort Sanders Health Systems created its first fund raising office, Fort Sanders Foundation, in the mid-1970s to raise funds to support Fort Sanders Regional Medical Center, it was a progressive move for a health care provider. Fund raising was not a need, but more in the category of "nice to have." This status has changed in today's era of healthcare reform. Financial resources have tightened and hospitals look to the community for charitable contributions that are now very much in the "need to have" category if they are to continue to meet the healthcare needs of the people of East Tennessee. During the past year these foundations received contributions of approximately $3.7 million to help provide new equipment and facilities at the hospitals, staff training and patient care programs. While the Office of Philanthropy staff coordinates community events and fund raisers, local community leadership and involvement is critical to fund raising success. In an effort to expand the cadre of informed volunteer leaders in the community, the Office of Philanthropy launched a new education program this year, Covenant Answers: A Healthcare Leadership Academy. Inaugural Academy participants included representatives from the boards of Covenant Health, and Fort Sanders and TCSC foundations. Future Leadership Academy classes will include business and community representatives from throughout Covenant Health's service area. Over a five-month period, class members attended half-day sessions at five Covenant hospitals, which included behind-the-scenes tours and hands-on access to the latest technologies and treatments. Participants discussed the challenges of the current health care environment with Covenant physicians and clinicians, heard firsthand from patients whose recovery hinged on the excellent care provided at our hospitals, and even tried their hands at using adaptive rehab equipment and maneuvering a surgical robot. IMPROVING HEALTH BEYOND HOSPITAL WALLS One of the greatest challenges facing a healthcare organization is not only caring for the patients and families who receive direct services, but making a positive impact in the health of the surrounding community. That is the mission of Covenant Health: reaching beyond hospital walls to improve the quality of life through better health. In all the communities Covenant Health serves, local initiatives and partnerships create opportunities to interact with people of all ages and encourage healthier lifestyles. * In Knoxville more than 7,000 people participated in the annual Covenant Health Knoxville Marathon, which attracted local runners and hand cyclists, as well as competitors from throughout the U.S. and other countries. * The Covenant Health Biggest Winner Weight Loss Challenge is a friendly competition that encourages East Tennesseans to get off the couch and get moving for a fit and healthy lifestyle. Team members train together for five months, with the goal of crossing the finish line in Covenant Health Knoxville Marathon events. Participants challenge other East Tennesseans to start a health journey that will change their lives for the better. * Some of the funds raised through the Covenant Health Knoxville Marathon were contributed to The Patricia Neal Rehabilitation Center's Innovative Recreation Cooperative, a collaboration of groups and individuals who help disabled persons enjoy leisure and recreation activities such as water skiing and cycling. * The Covenant Kids Run attracted over 1,000 children who participated in a "marathon" of activities over a period of several weeks, culminating in a run to Neyland Stadium on the day before the Covenant Health Knoxville Marathon. * Covenant Health was the fitness sponsor of the Dogwood Arts Festival, held annually in April. Fitness activities included several outdoor walks, "Bikes and Blooms" bike rides on local Dogwood trails, and a Dogwood Mile run and Kids Race held in downtown Knoxville. * Covenant HomeCare Hospice helps children grieving the loss of a loved one through Katerpillar Kids Camp, offered with the support of Variety-The Children's Charity. The camp is staffed by health system volunteers and helps children in grades 1-12 express their feelings in a supportive environment while enjoying camp activities. * Morristown-Hamblen's Wellness of Women is dedicated to improving the lives of area women and their families. The program sponsors events such as an annual Girls Night Out, which offers free health screenings and encourages women to have fun while learning to stay healthy. UNCOMPENSATED CARE One of the most tangible expressions of the charitable purpose of Covenant Health is providing care to people in need. As a not-for-profit system, Covenant Health provides medically necessary services to people with limited resources. Covenant Health actively participates in the state's TennCare program, and collaborates with other area providers to identify and support efforts to make community healthcare resources available for those in need. The Community Benefit totals for uncompensated care are included on the Forms 990 for the individual Covenant Health hospitals.
  Form 990, Part VI, Section B, line 11 Part VI, Section B, Line 11: Covenant Health is a large integrated health system which files twelve Forms 990. Annually, at the September Finance Committee meeting, one of the twelve 990s is selected (a different entity each year) for distribution to each member of the Committee. Management then reviews in detail each of the Form 990 schedules and describes variances between entities, if any. The remaining eleven Forms are made available for review by any committee member. The same presentation is made to the Covenant Health Board of Directors at the October meeting. All twelve Forms 990 are then made available to all Board members for their review throughout the month of October.
  Form 990, Part VI, Section B, line 12c Board members, officers and employees are required to adhere to rules and policies regarding conflicts of interest. Covenant Health distributes a Board-approved Code of Conduct to all employees. The Code covers among other subjects, conflicts of interest. Additionally, managers are required to complete and sign an annual management certification that addresses conflicts of interest. Board members' conflicts of interests are dealt with in the corporate bylaws, and Board members are required to complete and sign a conflict of interest questionnaire on an annual basis. The Integrity Compliance Office maintains records that contain conflict of interest information obtained from Board members, officers and employees. These records are available to be queried prior to engaging in business transactions. The Integrity Compliance Officer initially reviews all conflict of interest data. Based on this information, the officer determines what conflicts of interest exist at that point in time. Between times when surveys are collected Board members are expected to disclose any new conflicts that have arisen that affect pending Board decisions. As well, managers and other employees are expected to report conflicts to the Integrity Compliance Officer as they arise. Depending on the nature of the conflict and the circumstances surrounding the conflict and transaction, the Integrity Compliance Officer, Senior Leadership, or the Board of Directors may review the conflict of interest. Where appropriate these bodies may also consult legal counsel. Restrictions imposed on persons with a conflict of interest are determined on a case by case basis. For Covenant Health employees, the Integrity Compliance Officer in conjunction with Executive Leadership determines how to appropriately handle the conflict. In any conflict involving a Board member, such member is expected to excuse himself or herself from voting on matters that give rise to the conflict.
  Form 990, Part VI, Section B, line 15 Form 990, Part VI, Section B, Line 15a: Annual compensation for Covenant Health's President and Chief Executive Officer("CEO"), Anthony L. Spezia, is determined by the Compensation Committee of the Covenant Health Board of Directors, ("the Committee") which is composed of independent members of the board and chaired by the chairman of the board. The Committee is guided in its decision-making process by an independent, nationally recognized executive compensation consultant experienced in advising nonprofit hospital boards ("consultant") whose services include: (1) providing pay comparisons with market comparables; (2) recommending salary ranges and annual base salary adjustments; (3) designing incentive compensation and deferred compensation components of the CEO's total compensation package; (4) reviewing benefits and perquisites; and (5) certifying as to the reasonableness of total annual compensation. The consultant analyzes and makes recommendations with respect to the CEO's total compensation package through analysis of CEO compensation data for comparable nonprofit health systems in the United States. The systems selected for comparison are similar to Covenant Health in size, revenue, total assets, number of full time employees and services provided. Covenant Health's current compensation methodology includes setting base salary at or near the midpoint recommended by the consultant based on the CEO's experience and market conditions. In addition, annual incentive bonus compensation may be awarded upon achievement of established targets. Bonus opportunity ranges from 35-50% of base salary depending upon the executive's performance. The CEO also earns forfeitable, deferred compensation, the amount of which depends upon the amount of any annual bonus awarded. As a part of its CEO performance evaluation process, the Committee asks each member of the board of directors to submit a written evaluation of the CEO's performance using an evaluation form prepared by an independent audit firm. This information is collected, collated, and reported to the Committee by the audit firm; however, results are "blinded" so that individual board members are not identified. The collated results are shared with the CEO as part of the evaluation process. Any increase in base salary, award of annual bonus, or changes in overall compensation methodology are made by the Committee after discussion with and advice of the consultant and conditioned upon the consultant's determination that such decisions result in total annual compensation that is reasonable and within a fair market value range. Once the annual performance evaluation is completed, the chairman and at least one other member of the Committee meet with the CEO and share the Committee and board's evaluation of his prior year's performance, communicate his performance goals for the upcoming year, and inform him of the Committee's actions with respect to any annual bonus award for the prior year and any base salary adjustment for the upcoming year. Minutes of the actions of the Committee are recorded and kept on file. In addition, all determinations of the Committee with respect to the CEO's compensation are reported to and ratified by the full board of directors. Form 990, Part VI, Section B, Line 15b: Base salaries and annual bonus opportunities for Key Executives (*1) are set by the Covenant Health CEO or Executive Vice President-Human Resources, subject to approval of the Compensation Committee of the Covenant Health Board of Directors ("the Committee"), after review by and discussion with the executive compensation consultant ("the consultant") to insure that total compensation for each executive is reasonable and within a fair market value range. Salary ranges for each executive position are based upon the recommendations of the consultant made after comparison with similar jobs in similar size health systems across the nation. Bonuses are recommended by the CEO and approved by the Committee conditioned upon receipt of a written opinion from the consultant that total compensation for each Key Executive is reasonable and consistent with fair market value. Base salaries are initially targeted at midpoint and vary according to the individual's experience, market conditions and competition. Annual bonuses are designed to award 0 - 45% for the Executive Vice President ("EVP"), and 0 - 35% for the Senior Vice President ("SVP") and Chief Administrative Officer ("CAO") of base salary based upon system performance and accomplishment of certain targets established by the CEO. (*1) KEY EXECUTIVES: Covenant Health employees: John T. Geppi, EVP-Chief Financial Officer James D. Vandersteeg, EVP-Hospital Operations Lawrence C. Kleinman, EVP-Human Resources William M. Ward, SVP-Chief Information Officer Janice McKinley, SVP-Quality, Safety & Nursing Operations Related organization employees compensated by Covenant Health: Keith Altshuler, President & CAO of Fort Sanders Regional Medical Ctr. Michael R. Belbeck, Jr., President & CAO of Methodist Medical Center Larry R. Lassiter, President & CAO of Parkwest Medical Center Ellen F. Wilhoit, President & CAO of LeConte Medical Center Jeffrey Feike, President & CAO of Fort Loudoun Medical Center James Gann, President & CAO (retired) of Roane Medical Center Gordon Lintz, President & CAO of Morristown-Hamblen Healthcare System Gaye Jolly, President & CAO of Roane Medical Center
  Form 990, Part VI, Section C, line 19 Form 990, Part VI, Section C, Line 19: Per its tax exempt bond provisions, Covenant Health, is required to file quarterly and annual consolidated and obligated group financial statements in addition to other documentation, with various bond insurers and other agencies, including the Electronic Municipal Market Access, EMMA, website. Any member of such a repository has access to these financial statements.
Contact Addresses for Highest Compensated Employees: Form 990, Part VI, Line 9 Covenant Health compensates the Presidents and CAOs of its member hospitals in its role as a supporting organization. Their contact addresses are provided below. Michael R. Belbeck, Jr. Methodist Medical Center 990 Oak Ridge Turnpike Oak Ridge, TN 37830 Larry R. Lassiter Parkwest Medical Center 9352 Park West Boulevard Knoxville, TN 37923 Keith Altshuler Fort Sanders Regional Medical Center & Fort Sanders Perinatal Center 1901 Clinch Avenue Knoxville, TN 37916 Gordon Lintz Morristown-Hamblen Healthcare System 908 West Fourth North Morristown, TN 37814 James Gann 126 Indigo Bunting Rd. Harriman, TN 37748 Richard Clark 3102 Hampton Circle Morristown, TN 37814 All other persons listed in Part VII, Section A may be contacted at the organization's address.
Changes in Net Assets or Fund Balances: Form 990, Part XI, line 9: Book/Tax Diff in Income(Loss) from Partnerships/Trusts -131,978. Return of capital from subsidiaries 859,924. Capital contributed to subsidiaries -37,383,522. Change in 457(b) unrealized gain/loss 183,813.
  Form 990, Part XII, Line 2c: The Finance Committee of the Board of Directors assumes responsibility for oversight of the audit of the consolidated financial statements and selection of an independent accountant.
For Paperwork Reduction Act Notice, see the Instructions for Form 990 or 990-EZ.
Cat. No. 51056K
Schedule O (Form 990 or 990-EZ) 2012

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
2012
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" to Form 990, Part IV, line 33.)
(a)
Name, address, and EIN (if applicable) 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" to 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 entity?
Yes No
(1) Fort Sanders Regional Medical Center

1901 W Clinch Avenue

Knoxville,TN37916
62-0528340 		Acute care hospital TN 501(c)(3) Line 3 Covenant Health
 
 
No
(2) Parkwest Medical Center

9352 Park West Boulevard

Knoxville,TN37923
58-1897274 		Acute care hospital & behavioral health services TN 501(c)(3) Line 3 Covenant Health
 
 
No
(3) Methodist Medical Center

990 Oak Ridge Turnpike

Oak Ridge,TN37830
62-0636239 		Acute care hospital TN 501(c)(3) Line 3 Covenant Health
 
 
No
(4) LeConte Medical Center

742 Middle Creek Road

Sevierville,TN37862
62-1114867 		Acute care hospital TN 501(c)(3) Line 3 Covenant Health
 
 
No
(5) Roane County Medical Center dba Roane Medical Center

8045 Roane Medical Center Dr

Harriman,TN37748
68-0673354 		Acute care hospital TN 501(c)(3) Line 3 Covenant Health
 
 
No
(6) Fort Loudoun Medical Center

550 Fort Loudoun Medical Ctr Dr

Lenoir City,TN37772
62-1373691 		Acute care hospital TN 501(c)(3) Line 3 Covenant Health
 
 
No
(7) Thompson Cancer Survival Center

1915 White Avenue

Knoxville,TN37916
62-1250943 		Cancer treatment facility TN 501(c)(3) Line 3 Covenant Health
 
 
No
(8) Thompson Oncology Group

1915 White Avenue

Knoxville,TN37916
62-1619239 		Oncology services TN 501(c)(3) Line 3 Covenant Health
 
 
No
(9) Fort Sanders Foundation

280 Fort Sanders West Blvd Ste 202

Knoxville,TN37922
62-1748601 		Fundraising and patient outreach TN 501(c)(3) Line 11b, II Covenant Health
 
 
No
(10) Covenant Homecare

3001 Lake Brook Blvd Ste 101

Knoxville,TN37909
62-1623114 		Home health services TN 501(c)(3) Line 9 Covenant Health
 
 
No
(11) Fort Sanders Perinatal Center

501 19th St Ste 304

Knoxville,TN37916
04-3760551 		High risk obstetrical services TN 501(c)(3) Line 3 Covenant Health
 
Yes
 
(12) Morristown-Hamblen Hospital Assoc dba M-H Healthcare System

908 W 4th North St

Morristown,TN37814
62-0545814 		Acute care hospital TN 501(c)(3) Line 3 Covenant Health
 
 
No
(13) Thompson Cancer Survival Center Foundation

1915 White Avenue

Knoxville,TN37916
58-2130450 		Fundraising and patient outreach TN 501(c)(3) Line 11a, I Thompson Cancer Survival Center
 
 
No
(14) Morristown Regional Cancer Center LLC

908 W 4th North St

Morristown,TN37814
20-0916364 		Cancer treatment facility TN 501(c)(3) Line 3 Morristown-Hamblen Hospital Association
 
 
No
For Paperwork Reduction Act Notice, see the Instructions for Form 990.
Cat. No. 50135Y
Schedule R (Form 990) 2012
Schedule R (Form 990) 2012
Page 2
Part III
Identification of Related Organizations Taxable as a Partnership (Complete if the organization answered "Yes" to 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 Ste 200
Oak Ridge,TN37830
62-1667358 		Outpatient medical facility TN N/A
                  
(2) Fort Sanders West OP Surgery Ctr LLC

210 Fort Sanders West Blvd Ste 106
Knoxville,TN37922
62-1366907 		Outpatient surgery center TN N/A
                  
(3) Fort Sanders West Associates

280 Fort Sanders West Blvd Ste 214
Knoxville,TN37922
62-1384171 		Building ownership TN N/A
                  
(4) Assoc of the Meridian Health Outpatient Surgery Ctr LLC

908 W 4th North St
Morristown,TN37814
86-1167487 		Outpatient surgery center TN N/A
                  
(5) KOSC Properties LLC

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

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


Part IV
Identification of Related Organizations Taxable as a Corporation or Trust (Complete if the organization answered "Yes" to 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
 		(i)
Section 512(b)(13) controlled entity?
Yes No
(1) Fortress Corporation

280 Ft Sanders West Blvd Suite 214
Knoxville,TN37922
62-1308885 		Management company TN N/A
 C       Yes  
(2) KASC Acquisition Company Inc

1420 Centerpoint Blvd Bldg C
Knoxville,TN37932
26-3400984 		Real estate holdings TN N/A
 C         No
(3) Covenant Medical Management Inc

1400 Centerpoint Blvd Bldg A Ste 10
Knoxville,TN37932
62-1282917 		Physician practice management TN N/A
 C       Yes  
(4) Knoxville Heart Group

1819 Clinch Avenue Suite 108
Knoxville,TN37916
27-1528941 		Cardiology medical practice TN N/A
 C         No
(5) East TN Cardiovascular Surgery Group Inc

9125 Cross Park Drive Ste 200
Knoxville,TN37923
62-1018541 		Cardiovascular surgical practice TN N/A
 C         No




Schedule R (Form 990) 2012
Schedule R (Form 990) 2012
Page 3
Part V
Transactions With Related Organizations (Complete if the organization answered "Yes" to Form 990, Part IV, line 34, 35b, or 36.)
Note. Complete line 1 if any entity is listed in Parts II, III, or IV of this schedule.
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 or (iv) rent from a controlled entity . . . . . . . . . . . . . . . . . . . . . . .
1a
Yes
 
b Gift, grant, or capital contribution to related organization(s) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
1b
Yes
 
c Gift, grant, or capital contribution from related organization(s) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
1c
Yes
 
d Loans or loan guarantees to or for related organization(s) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
1d
 
No
e Loans or loan guarantees by related organization(s) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
1e
 
No
f Dividends from related organization(s) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
1f
 
No
g Sale of assets to related organization(s) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
1g
Yes
 
h Purchase of assets from related organization(s) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
1h
Yes
 
i Exchange of assets with related organization(s) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
1i
 
No
j Lease of facilities, equipment, or other assets to related organization(s) . . . . . . . . . . . . . . . . . . . . . . . . . . . .
1j
Yes
 
k Lease of facilities, equipment, or other assets from related organization(s) . . . . . . . . . . . . . . . . . . . . . . . . . . .
1k
Yes
 
l Performance of services or membership or fundraising solicitations for related organization(s) . . . . . . . . . . . . . . . . . . . .
1l
Yes
 
m Performance of services or membership or fundraising solicitations by related organization(s) . . . . . . . . . . . . . . . . . . . .
1m
Yes
 
n Sharing of facilities, equipment, mailing lists, or other assets with related organization(s) . . . . . . . . . . . . . . . . . . . . .
1n
 
No
o Sharing of paid employees with related organization(s) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
1o
Yes
 
p Reimbursement paid to related organization(s) for expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
1p
Yes
 
q Reimbursement paid by related organization(s) for expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
1q
Yes
 
r Other transfer of cash or property to related organization(s) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
1r
Yes
 
s Other transfer of cash or property from related organization(s) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
1s
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-s) 		(c)
Amount involved 		(d)
Method of determining amount involved
(1) Fort Sanders Regional Medical Center

 G 1,001,873 FMV
(2) Fort Sanders Regional Medical Center

 L 21,519,456 FMV
(3) Fort Sanders Regional Medical Center

 O 334,177 FMV
(4) Fort Sanders Regional Medical Center

 Q 39,741,877 Cost
(5) Fort Sanders Regional Medical Center

 S 236,151 Cash
(6) Parkwest Medical Center

 G 5,256,960 FMV
(7) Parkwest Medical Center

 L 21,912,541 FMV
(8) Parkwest Medical Center

 O 456,901 FMV
(9) Parkwest Medical Center

 P 186,596,374 Cost
(10) Parkwest Medical Center

 Q 131,391,665 Cost
(11) Parkwest Medical Center

 R 1,717,621 Cash
(12) Parkwest Medical Center

 S 6,501,327 Cash
(13) Methodist Medical Center

 G 1,276,220 FMV
(14) Methodist Medical Center

 L 13,001,996 FMV
(15) Methodist Medical Center

 O 289,578 FMV
(16) Methodist Medical Center

 P 76,761,098 Cost
(17) Methodist Medical Center

 Q 62,113,962 Cost
(18) Methodist Medical Center

 S 1,649,047 Cash
(19) Morristown-Hamblen Hospital Association

 G 1,817,266 FMV
(20) Morristown-Hamblen Hospital Association

 L 6,374,557 FMV
(21) Morristown-Hamblen Hospital Association

 O 457,841 FMV
(22) Morristown-Hamblen Hospital Association

 P 50,213,075 Cost
(23) Morristown-Hamblen Hospital Association

 Q 45,060,456 Cost
(24) Morristown-Hamblen Hospital Association

 R 50,276,653 Cash
(25) LeConte Medical Center

 G 480,748 FMV
(26) LeConte Medical Center

 L 5,238,718 FMV
(27) LeConte Medical Center

 O 228,608 FMV
(28) LeConte Medical Center

 P 41,174,517 Cost
(29) LeConte Medical Center

 Q 33,187,207 Cost
(30) LeConte Medical Center

 S 659,832 Cash
(31) Roane County Medical Center

 G 424,500 FMV
(32) Roane County Medical Center

 L 1,212,089 FMV
(33) Roane County Medical Center

 O 381,613 FMV
(34) Roane County Medical Center

 P 2,009,401 Cost
(35) Roane County Medical Center

 Q 8,274,934 Cost
(36) Roane County Medical Center

 R 450,450 Cash
(37) Fort Loudoun Medical Center

 G 94,438 FMV
(38) Fort Loudoun Medical Center

 L 2,942,589 FMV
(39) Fort Loudoun Medical Center

 O 234,362 FMV
(40) Fort Loudoun Medical Center

 P 15,383,161 Cost
(41) Fort Loudoun Medical Center

 Q 13,033,520 Cost
(42) Fort Loudoun Medical Center

 S 73,288 Cash
(43) Thompson Cancer Survival Center

 G 61,208 FMV
(44) Thompson Cancer Survival Center

 L 1,770,358 FMV
(45) Thompson Cancer Survival Center

 O 296,441 FMV
(46) Thompson Cancer Survival Center

 P 14,904,365 Cost
(47) Thompson Cancer Survival Center

 Q 6,758,426 Cost
(48) Thompson Cancer Survival Center

 R 84,857 Cash
(49) Thompson Oncology Group

 L 425,076 FMV
(50) Thompson Oncology Group

 P 8,409,765 Cost
(51) Thompson Oncology Group

 Q 15,357,622 Cost
(52) Thompson Oncology Group

 R 105,900 Cash
(53) Covenant Homecare

 G 120,999 FMV
(54) Covenant Homecare

 L 1,120,843 FMV
(55) Covenant Homecare

 K 69,213 FMV
(56) Covenant Homecare

 P 10,391,530 Cost
(57) Covenant Homecare

 Q 9,877,428 Cost
(58) Fort Sanders Perinatal Center

 P 8,822,784 Cost
(59) Fort Sanders Perinatal Center

 Q 7,308,961 Cost
(60) Surgery Endoscopy Ctr of Morristown

 Q 203,373 Cost
(61) Knoxville Heart Group

 L 200,330 FMV
(62) Knoxville Heart Group

 P 2,497,394 Cost
(63) Knoxville Heart Group

 Q 4,523,330 Cost
(64) Fort Sanders West OP Surgery Center

 Q 72,677 Cost
(65) Fort Sanders Foundation

 O 184,840 FMV
(66) Fortress Corporation

 K 374,919 FMV
(67) Fortress Corporation

 L 362,132 FMV
(68) Fortress Corporation

 Q 546,879 FMV
(69) Covenant Medical Management

 G 79,067 FMV
(70) Covenant Medical Management

 Q 28,757,575 Cost
(71) Covenant Homecare

 A 2,710 Cost
(72) Covenant Medical Management

 A 8,331 Cost
(73) Fortress Corporation

 A 241 Cost
Schedule R (Form 990) 2012
Schedule R (Form 990) 2012
Page 4
Part VI
Unrelated Organizations Taxable as a Partnership (Complete if the organization answered "Yes" to 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)
Predominant income (related, unrelated, excluded from tax under section 512-514)

(e)
Are all partners
section
501(c)(3)
organizations? 		(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 Yes No






























Schedule R (Form 990) 2012
Schedule R (Form 990) 2012
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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