TY 2015 Form 990

(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)
(1) Ed Anderson...................................................................... Director	0.00 ................. 1.00	X	1,435
(2) Gerald Boyd...................................................................... Director	0.00 ................. 1.00	X	1,316
(3) Dr Willard Campbell...................................................................... Director	0.00 ................. 1.00	X	0
(4) Dr Michael Casey...................................................................... Director	0.00 ................. 1.00	X	2,275
(5) Dr Mitchell Dickson...................................................................... Director	0.00 ................. 1.00	X	1,919
(6) Pamela P Fansler...................................................................... Director	0.00 ................. 1.00	X	0
(7) Homer Fisher...................................................................... Director	0.00 ................. 1.00	X	0
(8) James Fitzsimmons...................................................................... Director	0.00 ................. 1.00	X	1,813
(9) Jim Johnson Jr...................................................................... Director	0.00 ................. 1.00	X	1,272
(10) Amber Krupacs...................................................................... Director	0.00 ................. 1.00	X	1,741
(11) Eddie Mannis...................................................................... Director	0.00 ................. 1.00	X	0
(12) Timothy Matthews...................................................................... Director	0.00 ................. 1.00	X	1,637
(13) Larry Mauldin...................................................................... Chairman	0.00 ................. 1.00	X	1,422
(14) Dr Joseph Metcalf...................................................................... Director	0.00 ................. 1.00	X	0
(15) George Miller...................................................................... Director	0.00 ................. 1.00	X	1,270
(16) Alvin Nance...................................................................... Director	0.00 ................. 1.00	X	1,314
(17) Linda Ogle...................................................................... Director	0.00 ................. 1.00	X	0

(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)	(E) Reportable compensation from related organizations (W- 2/1099-MISC)	(F) Estimated amount of other compensation from the organization and related organizations
(18) Roger Osborne........................................................................ Director	0.00 .......................1.00	X					0	0	0
(19) Carl Storms........................................................................ Director	0.00 .......................1.00	X					0	1,206	0
(20) Joseph E Sutter........................................................................ Director	0.00 .......................1.00	X					0	1,490	0
(21) Richard Swanson........................................................................ Director	0.00 .......................1.00	X					0	1,444	0
(22) David C Verble........................................................................ Director	0.00 .......................1.00	X					0	1,428	0
(23) Anthony L Spezia........................................................................ President & CEO	0.00 .......................50.00	X	X				0	1,660,333	230,699
(24) John T Geppi........................................................................ EVP/CFO	0.00 .......................50.00		X				0	795,717	27,890
(25) Keith Altshuler........................................................................ President & CAO	44.00 .......................6.00		X				0	399,825	35,154
(26) Ronnie S Beeler........................................................................ VP - Financial Services	30.00 .......................10.00		X				202,842	0	30,118
(27) Kelly S Miles........................................................................ VP - Chief Nursing Officer	40.00 .......................0.00			X			241,777	0	19,575
(28) Bridgette Welch........................................................................ Director, Surgical Services	40.00 .......................0.00				X		133,608	0	18,232
(29) Mary E Dillon MD........................................................................ Medical Director	40.00 .......................0.00				X		240,376	0	3,055
(30) Nancy L Granger........................................................................ Pharmacy Manager	40.00 .......................0.00				X		148,099	0	30,042
(31) Christopher C Norris........................................................................ Pharmacy Director	40.00 .......................0.00				X		157,164	0	30,607
(32) Joseph M Bowling........................................................................ Medical Physicist	40.00 .......................0.00				X		189,346	0	28,810
(33) Jennifer Hanson........................................................................ Former VP - Chief Nursing Officer	0.00 .......................50.00					X	0	281,702	18,846

(A) Name and business address	(B) Description of services	(C) Compensation
GE Healthcare PO Box 96483 Chicago,IL60693	Equipment Maintenance/Service	2,666,471
Medic Regional Blood Center 1601 Ailor Avenue Knoxville,TN379216702	Blood Processing	1,432,534
Angelica Textile Services Inc PO Box 535122 Atlanta,GA30353	Linen Service	1,191,048
Fresenius Medical Care 16343 Collections Center Drive Chicago,IL60693	Dialysis Services	1,162,938
Enduracare Therapy Mgmt Inc TMI POBox 654072 Dallas,TX75265	Management Services	754,601
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 32

- TIN:

SCHEDULE A
(Form 990 or 990EZ)

Department of the Treasury
Internal Revenue Service

Public Charity Status and Public Support

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

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

Information about Schedule A (Form 990 or 990-EZ) and its instructions is at www.irs.gov/form990.

OMB No. 1545-0047

2015

Open to Public
Inspection

Name of the organization

Fort Sanders Regional Medical Center

Employer identification number

62-0528340

Part I

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

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

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

A school described in section 170(b)(1)(A)(ii). (Attach Schedule E (Form 990 or 990-EZ))

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

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

An organization operated for the benefit of a college or university owned or operated by a governmental unit described in section 170(b)(1)(A)(iv). (Complete Part II.)

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

An organization that normally receives a substantial part of its support from a governmental unit or from the general public described in section 170(b)(1)(A)(vi). (Complete Part II.)

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

An organization that normally receives: (1) more than 331/3% of its support from contributions, membership fees, and gross receipts from activities related to its exempt functions—subject to certain exceptions, and (2) no more than 331/3% of its support from gross investment income and unrelated business taxable income (less section 511 tax) from businesses acquired by the organization after June 30, 1975. See section 509(a)(2). (Complete Part III.)

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

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

Type I. A supporting organization operated, supervised, or controlled by its supported organization(s), typically by giving the supported organization(s) the power to regularly appoint or elect a majority of the directors or trustees of the supporting organization. You must complete Part IV, Sections A and B.

Type II. A supporting organization supervised or controlled in connection with its supported organization(s), by having control or management of the supporting organization vested in the same persons that control or manage the supported organization(s). You must complete Part IV, Sections A and C.

Type III functionally integrated. A supporting organization operated in connection with, and functionally integrated with, its supported organization(s) (see instructions). You must complete Part IV, Sections A, D, and E.

Type III non-functionally integrated. A supporting organization operated in connection with its supported organization(s) that is not functionally integrated. The organization generally must satisfy a distribution requirement and an attentiveness requirement (see instructions). You must complete Part IV, Sections A and D, and Part V.

Check this box if the organization received a written determination from the IRS that it is a Type I, Type II, Type III functionally integrated, or Type III non-functionally integrated supporting organization.

Enter the number of supported organizations ..............

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

(i)Name of supported organization	(ii) EIN	(iv) Is the organization listed in your governing document?		(v) Amount of monetary support (see instructions)	(vi) Amount of other support (see instructions)
(i)Name of supported organization	(ii) EIN	Yes	No	(v) Amount of monetary support (see instructions)	(vi) Amount of other support (see instructions)


Total

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

Cat. No. 11285F

Schedule A (Form 990 or 990-EZ) 2015

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)		(a) 2011	(b) 2012	(c) 2013	(d) 2014	(e) 2015	(f) Total
1	Gifts, grants, contributions, and membership fees received. (Do not include any unusual grants.) ....
2	Tax revenues levied for the organization's benefit and either paid to or expended on its behalf.......
3	The value of services or facilities furnished by a governmental unit to the organization without charge..
4	Total. Add lines 1 through 3
5	The portion of total contributions by each person (other than a governmental unit or publicly supported organization) included on line 1 that exceeds 2% of the amount shown on line 11, column (f)..
6	Public support. Subtract line 5 from line 4.

Section B. Total Support

Calendar year (or fiscal year beginning in)		(a) 2011	(b) 2012	(c) 2013	(d) 2014	(e) 2015	(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 VI.)..
11	Total support. Add lines 7 through 10.

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

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

Section C. Computation of Public Support Percentage

Public support percentage for 2015 (line 6, column (f) divided by line 11, column (f)) .........

Public support percentage for 2014 Schedule A, Part II, line 14 ...............

16a

33 1/3% support test—2015. If the organization did not check the box on line 13, and line 14 is 33 1/3% or more, check this box
and stop here. The organization qualifies as a publicly supported organization ....................... right arrow

33 1/3% support test—2014. If the organization did not check a box on line 13 or 16a, and line 15 is 33 1/3% or more, check this
box and stop here. The organization qualifies as a publicly supported organization ..................... right arrow

17a

10%-facts-and-circumstances test—2015. If the organization did not check a box on line 13, 16a, or 16b, and line 14
is 10% or more, and if the organization meets the facts-and-circumstances test, check this box and stop here. Explain
in Part VI how the organization meets the "facts-and-circumstances" test. The organization qualifies as a publicly supported
organization ..................................................... right arrow

10%-facts-and-circumstances test—2014. If the organization did not check a box on line 13, 16a, 16b, or 17a, and line
15 is 10% or more, and if the organization meets the "facts-and-circumstances" test, check this box and stop here.
Explain in Part VI how the organization meets the "facts-and-circumstances" test. The organization qualifies as a publicly
supported organization ................................................ right arrow

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

Schedule A (Form 990 or 990-EZ) 2015

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)		(a) 2011	(b) 2012	(c) 2013	(d) 2014	(e) 2015	(f) Total
1	Gifts, grants, contributions, and membership fees received. (Do not include any "unusual grants.") .
2	Gross receipts from admissions, merchandise sold or services performed, or facilities furnished in any activity that is related to the organization's tax-exempt purpose......
3	Gross receipts from activities that are not an unrelated trade or business under section 513...
4	Tax revenues levied for the organization's benefit and either paid to or expended on its behalf...
5	The value of services or facilities furnished by a governmental unit to the organization without charge..
6	Total. Add lines 1 through 5.
7a	Amounts included on lines 1, 2, and 3 received from disqualified persons...
b	Amounts included on lines 2 and 3 received from other than disqualified persons that exceed the greater of $5,000 or 1% of the amount on line 13 for the year.
c	Add lines 7a and 7b..
8	Public support. (Subtract line 7c from line 6.)

Section B. Total Support

Calendar year (or fiscal year beginning in)		(a) 2011	(b) 2012	(c) 2013	(d) 2014	(e) 2015	(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 VI.) ..
13	Total support. (Add lines 9, 10c, 11, and 12.)..

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

Section C. Computation of Public Support Percentage

Public support percentage for 2015 (line 8, column (f) divided by line 13, column (f)) .........

Public support percentage from 2014 Schedule A, Part III, line 15 ...............

Section D. Computation of Investment Income Percentage

Investment income percentage for 2015 (line 10c, column (f) divided by line 13, column (f)) ......

Investment income percentage from 2014 Schedule A, Part III, line 17 .............

19a

331/3% support tests—2015. If the organization did not check the box on line 14, and line 15 is more than 33 1/3%, and line 17 is not more than 33 1/3%, check this box and stop here. The organization qualifies as a publicly supported organization ....... right arrow

33 1/3% support tests—2014. If the organization did not check a box on line 14 or line 19a, and line 16 is more than 33 1/3% and line 18 is not more than 33 1/3%, check this box and stop here. The organization qualifies as a publicly supported organization .... right arrow

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

Schedule A (Form 990 or 990-EZ) 2015

Page 4

Part IV

Supporting Organizations

(Complete only if you checked a box on line 11 of Part I. If you checked 11a of Part I, complete Sections A and B. If you checked 11b of Part I, complete Sections A and C. If you checked 11c of Part I, complete Sections A, D, and E. If you checked 11d of Part I, complete Sections A and D, and complete Part V.)

Section A. All Supporting Organizations

Yes

Are all of the organization’s supported organizations listed by name in the organization’s governing documents?
If "No," describe in Part VI how the supported organizations are designated. If designated by class or purpose,
describe the designation. If historic and continuing relationship, explain.

Did the organization have any supported organization that does not have an IRS determination of status under section 509(a)(1) or (2)? If "Yes," explain in Part VI how the organization determined that the supported organization was described in section 509(a)(1) or (2).

Did the organization have a supported organization described in section 501(c)(4), (5), or (6)? If "Yes," answer (b) and (c) below.

Did the organization confirm that each supported organization qualified under section 501(c)(4), (5), or (6) and satisfied the public support tests under section 509(a)(2)? If "Yes," describe in Part VI when and how the organization made the determination.

Did the organization ensure that all support to such organizations was used exclusively for section 170(c)(2)(B) purposes? If "Yes," explain in Part VI what controls the organization put in place to ensure such use.

Was any supported organization not organized in the United States ("foreign supported organization")? If “Yes” and if you checked 11a or 11b in Part I, answer (b) and (c) below.

Did the organization have ultimate control and discretion in deciding whether to make grants to the foreign supported organization? If “Yes,” describe in Part VI how the organization had such control and discretion despite being controlled or supervised by or in connection with its supported organizations.

Did the organization support any foreign supported organization that does not have an IRS determination under sections 501(c)(3) and 509(a)(1) or (2)? If “Yes,” explain in Part VI what controls the organization used to ensure that all support to the foreign supported organization was used exclusively for section 170(c)(2)(B) purposes.

Did the organization add, substitute, or remove any supported organizations during the tax year? If “Yes,” answer (b) and (c) below (if applicable). Also, provide detail in Part VI, including (i) the names and EIN numbers of the supported organizations added, substituted, or removed; (ii) the reasons for each such action; (iii) the authority under the organization's organizing document authorizing such action; and (iv) how the action was accomplished (such as by amendment to the organizing document).

Type I or Type II only. Was any added or substituted supported organization part of a class already designated in the organization's organizing document?

Substitutions only. Was the substitution the result of an event beyond the organization's control?

Did the organization provide support (whether in the form of grants or the provision of services or facilities) to anyone other than (i) its supported organizations, (ii) individuals that are part of the charitable class benefited by one or more of its supported organizations, or (iii) other supporting organizations that also support or benefit one or more of the filing organization’s supported organizations? If “Yes,” provide detail in Part VI.

Did the organization provide a grant, loan, compensation, or other similar payment to a substantial contributor (defined in section 4958(c)(3)(C)), a family member of a substantial contributor, or a 35% controlled entity with regard to a substantial contributor? If “Yes,” complete Part I of Schedule L (Form 990 or 990-EZ) .

Did the organization make a loan to a disqualified person (as defined in section 4958) not described in line 7? If “Yes,” complete Part I of Schedule L (Form 990 or 990-EZ).

Was the organization controlled directly or indirectly at any time during the tax year by one or more disqualified persons as defined in section 4946 (other than foundation managers and organizations described in section 509(a)(1) or (2))? If “Yes,” provide detail in Part VI.

Did one or more disqualified persons (as defined in line 9a) hold a controlling interest in any entity in which the supporting organization had an interest? If “Yes,” provide detail in Part VI.

Did a disqualified person (as defined in line 9a) have an ownership interest in, or derive any personal benefit from, assets in which the supporting organization also had an interest? If “Yes,” provide detail in Part VI.

10a

Was the organization subject to the excess business holdings rules of section 4943 because of section 4943(f) (regarding certain Type II supporting organizations, and all Type III non-functionally integrated supporting organizations)? If “Yes,” answer line 10b below.

10a

Did the organization have any excess business holdings in the tax year? (Use Schedule C, Form 4720, to determine whether the organization had excess business holdings).

10b

Schedule A (Form 990 or 990-EZ) 2015

Page 5

Part IV

Supporting Organizations (continued)

Yes

Has the organization accepted a gift or contribution from any of the following persons?

A person who directly or indirectly controls, either alone or together with persons described in (b) and (c) below, the governing body of a supported organization?

11a

A family member of a person described in (a) above?

11b

A 35% controlled entity of a person described in (a) or (b) above? If “Yes” to a, b, or c, provide detail in Part VI.

11c

Section B. Type I Supporting Organizations

Yes

Did the directors, trustees, or membership of one or more supported organizations have the power to regularly appoint or elect at least a majority of the organization’s directors or trustees at all times during the tax year? If “No,” describe in Part VI how the supported organization(s) effectively operated, supervised, or controlled the organization’s activities. If the organization had more than one supported organization, describe how the powers to appoint and/or remove directors or trustees were allocated among the supported organizations and what conditions or restrictions, if any, applied to such powers during the tax year.

Did the organization operate for the benefit of any supported organization other than the supported organization(s) that operated, supervised, or controlled the supporting organization? If “Yes,” explain in Part VI how providing such benefit carried out the purposes of the supported organization(s) that operated, supervised or controlled the supporting organization.

Section C. Type II Supporting Organizations

Yes

Were a majority of the organization’s directors or trustees during the tax year also a majority of the directors or trustees of each of the organization’s supported organization(s)? If “No,” describe in Part VI how control or management of the supporting organization was vested in the same persons that controlled or managed the supported organization(s).

Section D. All Type III Supporting Organizations

Yes

Did the organization provide to each of its supported organizations, by the last day of the fifth month of the organization’s tax year, (i) a written notice describing the type and amount of support provided during the prior tax year, (ii) a copy of the Form 990 that was most recently filed as of the date of notification, and (iii) copies of the organization’s governing documents in effect on the date of notification, to the extent not previously provided?

Were any of the organization’s officers, directors, or trustees either (i) appointed or elected by the supported organization(s) or (ii) serving on the governing body of a supported organization? If "No," explain in Part VI how the organization maintained a close and continuous working relationship with the supported organization(s).

By reason of the relationship described in (2), did the organization’s supported organizations have a significant voice in the organization’s investment policies and in directing the use of the organization’s income or assets at all times during the tax year? If "Yes," describe in Part VI the role the organization’s supported organizations played in this regard.

Section E. Type III Functionally-Integrated Supporting Organizations

Check the box next to the method that the organization used to satisfy the Integral Part Test during the year (see instructions):

The organization satisfied the Activities Test. Complete line 2 below.

The organization is the parent of each of its supported organizations. Complete line 3 below.

The organization supported a governmental entity. Describe in Part VI how you supported a government entity (see instructions)

Activities Test. Answer (a) and (b) below.

Yes

Did substantially all of the organization’s activities during the tax year directly further the exempt purposes of the supported organization(s) to which the organization was responsive? If "Yes," then in Part VI identify those supported organizations and explain how these activities directly furthered their exempt purposes, how the organization was responsive to those supported organizations, and how the organization determined that these activities constituted substantially all of its activities.

Did the activities described in (a) constitute activities that, but for the organization’s involvement, one or more of the organization’s supported organization(s) would have been engaged in? If "Yes," explain in Part VI the reasons for the organization’s position that its supported organization(s) would have engaged in these activities but for the organization’s involvement.

Parent of Supported Organizations. Answer (a) and (b) below.

Did the organization have the power to regularly appoint or elect a majority of the officers, directors, or trustees of each of the supported organizations? Provide details in Part VI.

Did the organization exercise a substantial degree of direction over the policies, programs and activities of each of its supported organizations? If "Yes," describe in Part VI. the role played by the organization in this regard.

Schedule A (Form 990 or 990-EZ) 2015

Page 6

Part V

Type III Non-Functionally Integrated 509(a)(3) Supporting Organizations

Check here if the organization satisfied the Integral Part Test as a qualifying trust on Nov. 20, 1970. See instructions. All other Type III non-functionally integrated supporting organizations must complete Sections A through E.

	Section A - Adjusted Net Income		(A) Prior Year	(B) Current Year (optional)
1	Net short-term capital gain	1
2	Recoveries of prior-year distributions	2
3	Other gross income (see instructions)	3
4	Add lines 1 through 3	4
5	Depreciation and depletion	5
6	Portion of operating expenses paid or incurred for production or collection of gross income or for management, conservation, or maintenance of property held for production of income (see instructions)	6
7	Other expenses (see instructions)	7
8	Adjusted Net Income (subtract lines 5, 6 and 7 from line 4)	8

	Section B - Minimum Asset Amount		(A) Prior Year	(B) Current Year (optional)
1	Aggregate fair market value of all non-exempt-use assets (see instructions for short tax year or assets held for part of year):	1
a	Average monthly value of securities	1a
b	Average monthly cash balances	1b
c	Fair market value of other non-exempt-use assets	1c
d	Total (add lines 1a, 1b, and 1c)	1d
e	Discount claimed for blockage or other factors (explain in detail in Part VI):
2	Acquisition indebtedness applicable to non-exempt use assets	2
3	Subtract line 2 from line 1d	3
4	Cash deemed held for exempt use. Enter 1-1/2% of line 3 (for greater amount, see instructions).	4
5	Net value of non-exempt-use assets (subtract line 4 from line 3)	5
6	Multiply line 5 by .035	6
7	Recoveries of prior-year distributions	7
8	Minimum Asset Amount (add line 7 to line 6)	8

	Section C - Distributable Amount		Current Year
1	Adjusted net income for prior year (from Section A, line 8, Column A)	1
2	Enter 85% of line 1	2
3	Minimum asset amount for prior year (from Section B, line 8, Column A)	3
4	Enter greater of line 2 or line 3	4
5	Income tax imposed in prior year	5
6	Distributable Amount. Subtract line 5 from line 4, unless subject to emergency temporary reduction (see instructions)	6

Check here if the current year is the organization's first as a non-functionally-integrated Type III supporting organization (see instructions)

Schedule A (Form 990 or 990-EZ) 2015

Page 7

Part V

Type III Non-Functionally Integrated 509(a)(3) Supporting Organizations (continued)

Section D - Distributions		Current Year
1 Amounts paid to supported organizations to accomplish exempt purposes
2 Amounts paid to perform activity that directly furthers exempt purposes of supported organizations, in excess of income from activity
3 Administrative expenses paid to accomplish exempt purposes of supported organizations
4 Amounts paid to acquire exempt-use assets
5 Qualified set-aside amounts (prior IRS approval required)
6 Other distributions (describe in Part VI). See instructions
7Total annual distributions. Add lines 1 through 6.
8 Distributions to attentive supported organizations to which the organization is responsive (provide details in Part VI). See instructions
9 Distributable amount for 2015 from Section C, line 6
10 Line 8 amount divided by Line 9 amount

Section E - Distribution Allocations (see instructions)		(i) Excess Distributions	(ii) Underdistributions Pre-2015	(iii) Distributable Amount for 2015
1 Distributable amount for 2015 from Section C, line 6
2 Underdistributions, if any, for years prior to 2015 (reasonable cause required--see instructions)
3 Excess distributions carryover, if any, to 2015:
a
b
c
d From 2013.......
e From 2014.......
fTotal of lines 3a through e
g Applied to underdistributions of prior years
h Applied to 2015 distributable amount
i Carryover from 2010 not applied (see instructions)
j Remainder. Subtract lines 3g, 3h, and 3i from 3f.
4Distributions for 2015 from Section D, line 7:
$
a Applied to underdistributions of prior years
b Applied to 2015 distributable amount
c Remainder. Subtract lines 4a and 4b from 4.
5 Remaining underdistributions for years prior to 2015, if any. Subtract lines 3g and 4a from line 2 (if amount greater than zero, see instructions)
6 Remaining underdistributions for 2015. Subtract lines 3h and 4b from line 1 (if amount greater than zero, see instructions)
7 Excess distributions carryover to 2016. Add lines 3j and 4c.
8 Breakdown of line 7:
a
b
c Excess from 2013.......
d From 2014.......
e From 2015.......

Schedule A (Form 990 or 990-EZ) (2015)

Schedule A (Form 990 or 990-EZ) 2015

Page 8

Part VI

Supplemental Information. Provide the explanations required by Part II, line 10; Part II, line 17a or 17b; Part III, line 12; Part IV, Section A, lines 1, 2, 3b, 3c, 4b, 4c, 5a, 6, 9a, 9b, 9c, 11a, 11b, and 11c; Part IV, Section B, lines 1 and 2; Part IV, Section C, line 1; Part IV, Section D, lines 2 and 3; Part IV, Section E, lines 1c, 2a, 2b, 3a and 3b; Part V, line 1; Part V, Section B, line 1e; Part V Section D, lines 5, 6, and 8; and Part V, Section E, lines 2, 5, and 6. Also complete this part for any additional information. (See instructions).

Facts And Circumstances Test

Return Reference	Explanation

Schedule A (Form 990 or 990-EZ) 2015

Additional Data

Software ID:
Software Version:

- TIN:

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

Department of the Treasury
Internal Revenue Service

Schedule of Contributors

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

Information about Schedule B (Form 990, 990-EZ, or 990-PF) and its instructions is at www.irs.gov/form990.

OMB No. 1545-0047

2015

Name of the organization

Fort Sanders Regional Medical Center

Employer identification number

62-0528340

Organization type (check one):

Filers of:

Section:

Form 990 or 990-EZ

501(c)( ) (enter number) organization

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

527 political organization

Form 990-PF

501(c)(3) exempt private foundation

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

501(c)(3) taxable private foundation

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

General Rule

For an organization filing Form 990, 990-EZ, or 990-PF that received, during the year, contributions totaling $5,000 or more (in money or other property) from any one contributor. Complete Parts I and II. See instructions for determining a contributor's total contributions.

Special Rules

For an organization described in section 501(c)(3) filing Form 990 or 990-EZ that met the 33¹/3% support test of the regulations
under sections 509(a)(1) and 170(b)(1)(A)(vi), that checked Schedule A (Form 990 or 990-EZ), Part II, line 13, 16a, or 16b, and that received from any one contributor, during the year, total contributions of the greater of (1) $5,000 or (2) 2% of the amount on (i) Form 990, Part VIII, line 1h, or (ii) Form 990-EZ, line 1. Complete Parts I and II.

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

For an organization described in section 501(c)(7), (8), or (10) filing Form 990 or 990-EZ that received from any one contributor,
during the year, contributions exclusively for religious, charitable, etc., purposes, but no such contributions totaled more than $1,000. If this box is checked, enter here the total contributions that were received during the year for an exclusively religious, charitable, etc., purpose. Do not complete any of the parts unless the General Rule applies to this organization because it received nonexclusively religious, charitable, etc., contributions totaling $5,000 or more during the year ......... Arrow Bullet

Caution. An organization that is not covered by the General Rule and/or the Special Rules does not file Schedule B (Form 990,
990-EZ, or 990-PF), but it must answer “No” on Part IV, line 2, of its Form 990; or check the box on line H of its
Form 990-EZ or on its Form 990PF, Part I, line 2, 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) (2015)

Schedule B (Form 990, 990-EZ, or 990-PF) (2015) Page 2

Name of organization Fort Sanders Regional Medical Center

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	Person Payroll Noncash (Complete Part II for noncash contributions.)
(a) No.	(b) Name, address, and ZIP + 4	(c) Total contributions	(d) Type of contribution
		$	Person Payroll Noncash (Complete Part II for noncash contributions.)
(a) No.	(b) Name, address, and ZIP + 4	(c) Total contributions	(d) Type of contribution
		$	Person Payroll Noncash (Complete Part II for noncash contributions.)
(a) No.	(b) Name, address, and ZIP + 4	(c) Total contributions	(d) Type of contribution
		$	Person Payroll Noncash (Complete Part II for noncash contributions.)
(a) No.	(b) Name, address, and ZIP + 4	(c) Total contributions	(d) Type of contribution
		$	Person Payroll Noncash (Complete Part II for noncash contributions.)
(a) No.	(b) Name, address, and ZIP + 4	(c) Total contributions	(d) Type of contribution
		$	Person Payroll Noncash (Complete Part II for noncash contributions.)
Schedule B (Form 990, 990-EZ, or 990-PF) (2015)

Schedule B (Form 990, 990-EZ, or 990-PF) (2015)

Page 3

Name of organization Fort Sanders Regional Medical Center		Employer identification number 62-0528340

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) (2015)

Schedule B (Form 990, 990-EZ, or 990-PF) (2015)

Page 4


Name of organization Fort Sanders Regional Medical Center			Employer identification number 62-0528340
Part III Exclusively religious, charitable, etc., contributions to organizations described in section 501(c)(7), (8), or (10) that total more than $1,000 for the year from any one contributor. 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.) $ Use duplicate copies of Part III if additional space is needed.

(a)
No.from Part I

(b) Purpose of gift

(d) Description of how gift is held

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

(a)
No.from Part I

(b) Purpose of gift

(d) Description of how gift is held

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

(a)
No.from Part I

(b) Purpose of gift

(d) Description of how gift is held

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

(a)
No.from Part I

(b) Purpose of gift

(d) Description of how gift is held

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

Schedule B (Form 990, 990-EZ, or 990-PF) (2015)

Additional Data

Software ID:
Software Version:

- TIN:

SCHEDULE D
(Form 990)

Department of the Treasury
Internal Revenue Service

Supplemental Financial Statements

Complete if the organization answered "Yes," on 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.
Information about Schedule D (Form 990) and its instructions is at www.irs.gov/form990.

OMB No. 1545-0047

2015

Open to Public Inspection

Name of the organization

Fort Sanders Regional Medical Center

Employer identification number

62-0528340

Part I

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

			(a) Donor advised funds	(b) Funds and other accounts

1	Total number at end of year ....
2	Aggregate value of contributions to (during year)
3	Aggregate value of grants from (during year)
4	Aggregate value at end of year ....

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

Yes No

Did the organization inform all grantees, donors, and donor advisors in writing that grant funds 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? ............................

Yes No

Part II

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

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

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

Protection of natural habitat Preservation of a certified historic structure

Preservation of open space

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.


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

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

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

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

Yes No

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

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

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

Yes No

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" on Form 990, Part IV, line 8.

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.

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)

Revenue included on Form 990, Part VIII, line 1 ......................... SchDMd Bullet

(ii)

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

If the organization received or held works of art, historical treasures, or other similar assets for financial gain, provide the
following amounts required to be reported under SFAS 116 (ASC 958) relating to these items:

Revenue included on Form 990, Part VIII, line 1 .......................... SchDMd Bullet

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) 2015

Page 2

Part III

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

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):

Public exhibition

Loan or exchange programs

Scholarly research

Other

Preservation for future generations

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

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

Yes No

Part IV

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

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

Yes No


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

Did the organization include an amount on Form 990, Part X, line 21, for escrow or custodial account liability?

Yes No

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" on Form 990, Part IV, line 10.

		(a)Current year	(b)Prior year	(c)Two years back	(d)Three years back	(e)Four years back

1a	Beginning of year balance ....	132,536	130,916	129,426	113,809	103,913
b	Contributions ...		1,620	1,490	15,617	9,896
c	Net investment earnings, gains, and losses	3,981	6,275	4,041	3,914	4,390
d	Grants or scholarships ...
e	Other expenditures for facilities and programs ...	3,981	6,275	4,041	3,914	4,390
f	Administrative expenses ....
g	End of year balance ......	132,536	132,536	130,916	129,426	113,809

Provide the estimated percentage of the current year end balance (line 1g, column (a)) held as:

Board designated or quasi-endowment SchDMd Bullet

0 %

Permanent endowment SchDMd Bullet

100.000 %

Temporarily restricted endowment SchDMd Bullet

0 %

The percentages on lines 2a, 2b, and 2c should equal 100%.

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

Yes

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

3a(i)

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

3a(ii)

Yes

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

Yes

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

Part VI

Land, Buildings, and Equipment.
Complete if the organization answered 'Yes' on Form 990, Part IV, line 11a. 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 ...	100,345	7,271,989		7,372,334
b	Buildings	83,241,991	100,404,545	111,298,546	72,347,990
c	Leasehold improvements		2,530,246	2,065,484	464,762
d	Equipment ...		209,390,556	186,115,245	23,275,311
e	Other ...		4,571,158	1,084,617	3,486,541
Total. Add lines 1a through 1e. (Column (d) must equal Form 990, Part X, column (B), line 10(c).)..					106,946,938

Schedule D (Form 990) 2015

Page 3

Part VII

InvestmentsOther Securities. Complete if the organization answered 'Yes' on Form 990, Part IV, line 11b. 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
(3)Other
(A)
(B)
(C)
(D)
(E)
(F)
(G)
(H)
Total. (Column (b) must equal Form 990, Part X, col. (B) line 12.)

Part VIII

InvestmentsProgram Related. Complete if the organization answered 'Yes' on Form 990, Part IV, line 11c. See Form 990, Part X, line 13.

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

(1)
(2)
(3)
(4)
(5)
(6)
(7)
(8)
(9)
Total. (Column (b) must equal Form 990, Part X, col.(B) line 13.)

Part IX

Other Assets. Complete if the organization answered 'Yes' on Form 990, Part IV, line 11d. See Form 990, Part X, line 15.

(a) Description				(b) Book value
(1) Deferred Compensation				1,126,762
(2) Due from Affiliates, Net				103,007,986
(3) Miscellaneous Non-Affiliate Receivables				194,282
(4) Rental Income Receivable				158,741
(4)
(5)
(6)
(7)
(8)
(9)
Total. (Column (b) must equal Form 990, Part X, col.(B) line 15.)...........				104,487,771

Part X

Other Liabilities. Complete if the organization answered 'Yes' on Form 990, Part IV, line 11e or 11f. See Form 990, Part X, line 25.

1.(a) Description of liability	(b) Book value
(1) Federal income taxes
Due to Third Party Payors	1,031,329
Long-term Deferred Compensation	1,126,762
Long-term Reserve for Workers Comp	1,598,138
(4)
(5)
(6)
(7)
(8)
(9)
Total. (Column (b) must equal Form 990, Part X, col.(B) line 25.)	3,756,229
2. Liability for uncertain tax positions. 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) 2015

Page 4

Part XI Reconciliation of Revenue per Audited Financial Statements With Revenue per Return Complete if the organization answered 'Yes' on Form 990, Part IV, line 12a.
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 (losses) 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. Complete if the organization answered 'Yes' on Form 990, Part IV, line 12a.
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

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.

Return Reference

Explanation

Part V, Line 4:

Fort Sanders Foundation maintains two permanent endowments for the purpose of providing a permanent source of income for the following programs at Fort Sanders Regional Medical Center: The Pastoral Care Fund and the Caroline Can! Fund. The principal of the endowments will be kept intact in perpetuity. Only the income generated will be distributed to FSRMC to provide support for the aforementioned programs.

Part X, Line 2:

Note B to the consolidated audited financial statements of Covenant Health, parent company to Fort Sanders Regional Medical Center, 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 (See Note G). Note G reads in part: "Covenant had no unrecognized tax benefits at December 31, 2015 and 2014. As such, no interest or penalties were recognized in the Consolidated Statements of Operations and Changes in Net Assets related to unrecognized tax benefits. At December 31, 2015, tax returns for 2012 through 2015 are subject to examination by the Internal Revenue Service. Covenant has no uncertain tax positions that would require financial statement recognition or disclosure under GAAP at December 31, 2015 or 2014."

Schedule D (Form 990) 2015

Additional Data

Software ID:
Software Version:

- TIN:

SCHEDULE H
(Form 990)

Department of the Treasury
Internal Revenue Service

Hospitals

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

Attach to Form 990.
MediumBullet

Information about Schedule H (Form 990) and its instructions is at www.irs.gov/form990.

OMB No. 1545-0047

2015

Open to Public Inspection

Name of the organization

Fort Sanders Regional Medical Center

Employer identification number

62-0528340

Part I

Financial Assistance and Certain Other Community Benefits at Cost

Yes

Did the organization have a financial assistance policy during the tax year? If "No," skip to question 6a . . . .

Yes

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

Yes

If the organization had multiple hospital facilities, indicate which of the following best describes application of the financial assistance policy to its various hospital facilities during the tax year.

Applied uniformly to all hospital facilities Applied uniformly to most hospital facilities Generally tailored to individual hospital facilities

Answer the following based on the financial assistance eligibility criteria that applied to the largest number of the organization's patients during the tax year.

Did the organization use Federal Poverty Guidelines (FPG) as a factor in determining eligibility for providing free care?

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

Yes

100% 150% 200% Other %

Did the organization use FPG as a factor in determining eligibility for providing discounted care? If "Yes," indicate

which of the following was the family income limit for eligibility for discounted care: . . . . . . . .

Yes

200% 250% 300% 350% 400% Other %

If the organization used factors other than FPG in determining eligibility, describe in Part VI the criteria used for determining eligibility for free or discounted care. Include in the description whether the organization used an asset test or other threshold, regardless of income, as a factor in determining eligibility for free or discounted care.

Did the organization's financial assistance policy that applied to the largest number of its patients during the tax year provide for free or discounted care to the "medically indigent"? . . . . . . . . . . . . .

Yes

Did the organization budget amounts for free or discounted care provided under its financial assistance policy during
the tax year? . . . . . . . . . . . . . . . . . . . . . . .

Yes

If "Yes," did the organization's financial assistance expenses exceed the budgeted amount? . . . . . .

Yes

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

Did the organization prepare a community benefit report during the tax year? . . . . . . . . .

Yes

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

Yes

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

Financial Assistance and Certain Other Community Benefits at Cost

Financial Assistance and Means-Tested Government Programs		(c) Total community benefit expense	(d) Direct offsetting revenue	(e) Net community benefit expense	(f) Percent of total expense
a	Financial Assistance at cost (from Worksheet 1) . . .	20,842,517	8,454,903	12,387,614	4.030 %
b	Medicaid (from Worksheet 3, column a) . . . . .	49,980,904	39,774,076	10,206,828	3.320 %
c	Costs of other means-tested government programs (from Worksheet 3, column b) . .	1,100,749	299,592	801,157	0.260 %
d	Total Financial Assistance and Means-Tested Government Programs . . . . .	71,924,170	48,528,571	23,395,599	7.610 %
Other Benefits
e	Community health improvement services and community benefit operations (from Worksheet 4).	176,401	121,563	54,838	0.020 %
f	Health professions education (from Worksheet 5) . . .	92,915		92,915	0.030 %
g	Subsidized health services (from Worksheet 6) . . . .	27,604,494	19,165,030	8,439,464	2.750 %
h	Research (from Worksheet 7) .
i	Cash and in-kind contributions for community benefit (from Worksheet 8) . . . .	149,023	54,866	94,157	0.030 %
j	Total. Other Benefits . .	28,022,833	19,341,459	8,681,374	2.830 %
k	Total. Add lines 7d and 7j .	99,947,003	67,870,030	32,076,973	10.440 %

For Paperwork Reduction Act Notice, see the Instructions for Form 990. Cat. No. 50192T Schedule H (Form 990) 2015

Schedule H (Form 990) 2015

Page

Part II

Community Building Activities Complete this table if the organization conducted any community building activities during the tax year, and describe in Part VI how its community building activities promoted the health of the communities it serves.

		(c) Total community building expense	(e) Net community building expense	(f) Percent of total expense
1	Physical improvements and housing	228	228	0 %
2	Economic development	37,025	37,025	0.010 %
3	Community support	31,356	31,356	0.010 %
4	Environmental improvements
5	Leadership development and training for community members	3,791	3,791	0 %
6	Coalition building
7	Community health improvement advocacy
8	Workforce development
9	Other
10	Total	72,400	72,400	0.020 %

Part III

Bad Debt, Medicare, & Collection Practices

Section A. Bad Debt Expense

Yes

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

Yes

Enter the amount of the organization's bad debt expense. Explain in Part VI the methodology used by the organization to estimate this amount. ......

17,320,921

Enter the estimated amount of the organization's bad debt expense attributable to patients eligible under the organization's financial assistance policy. Explain in Part VI the methodology used by the organization to estimate this amount and the rationale, if any, for including this portion of bad debt as community benefit. ......

9,699,716

Provide in Part VI the text of the footnote to the organization’s financial statements that describes bad debt expense or the page number on which this footnote is contained in the attached financial statements.

Section B. Medicare

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

54,424,084

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

59,557,587

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

-5,133,503

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

Cost accounting system Cost to charge ratio Other

Section C. Collection Practices

Did the organization have a written debt collection policy during the tax year? ..........

Yes

If "Yes," did the organization’s collection policy that applied to the largest number of its patients during the tax year
contain provisions on the collection practices to be followed for patients who are known to qualify for financial assistance? Describe in Part VI .........................

Yes

Part IV

Management Companies and Joint Ventures(owned 10% or more by officers, directors, trustees, key employees, and physicians—see instructions)

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

Schedule H (Form 990) 2015

Page

Part VFacility Information

Section A. Hospital Facilities (list in order of size from largest to smallest—see instructions) How many hospital facilities did the organization operate during the tax year?1 Name, address, primary website address, and state license number (and if a group return, the name and EIN of the subordinate hospital organization that operates the hospital facility)
1	Fort Sanders Regional Medical Center 1901 Clinch Avenue Knoxville,TN37916 www.fsregional.com 00000043	X	X	X	X

Schedule H (Form 990) 2015

Page 4

Part VFacility Information (continued)

Section B. Facility Policies and Practices

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

	Fort Sanders Regional Medical Center
Name of hospital facility or letter of facility reporting group

Line number of hospital facility, or line numbers of hospital facilities in a facility
reporting group (from Part V, Section A):

Yes

Community Health Needs Assessment

Was the hospital facility first licensed, registered, or similarly recognized by a state as a hospital facility in the current tax year or the immediately preceding tax year?........................

Was the hospital facility acquired or placed into service as a tax-exempt hospital in the current tax year or the immediately preceding tax year? If “Yes,” provide details of the acquisition in Section C...............

During the tax year or either of the two immediately preceding tax years, did the hospital facility conduct a community health needs assessment (CHNA)? If "No," skip to line 12......................

Yes

If "Yes," indicate what the CHNA report describes (check all that apply):

A definition of the community served by the hospital facility

Demographics of the community

Existing health care facilities and resources within the community that are available to respond to the health needs of the community

How data was obtained

The significant health needs of the community

Primary and chronic disease needs and other health issues of uninsured persons, low-income persons, and minority groups

The process for identifying and prioritizing community health needs and services to meet the community health needs

The process for consulting with persons representing the community’s interests

Information gaps that limit the hospital facility’s ability to assess the community’s health needs

Other (describe in Section C)

Indicate the tax year the hospital facility last conducted a CHNA: 20 13

In conducting its most recent CHNA, did the hospital facility take into account input from persons who represent the broad interests of the community served by the hospital facility, including those with special knowledge of or expertise in public health? If "Yes," describe in Section C how the hospital facility took into account input from persons who represent the community, and identify the persons the hospital facility consulted .................

Yes

6 a

Was the hospital facility’s CHNA conducted with one or more other hospital facilities? If "Yes," list the other hospital facilities in Section C..................................

Yes

Was the hospital facility’s CHNA conducted with one or more organizations other than hospital facilities?” If “Yes,” list the other organizations in Section C. ............................

Yes

Did the hospital facility make its CHNA report widely available to the public?..............

Yes

If "Yes," indicate how the CHNA report was made widely available (check all that apply):

Hospital facility’s website (list url): www.fsregional.com

Other website (list url):

Made a paper copy available for public inspection without charge at the hospital facility

Other (describe in Section C)

Did the hospital facility adopt an implementation strategy to meet the significant community health needs
identified through its most recently conducted CHNA? If "No," skip to line 11. ..............

Yes

Indicate the tax year the hospital facility last adopted an implementation strategy: 20 14

Is the hospital facility's most recently adopted implementation strategy posted on a website?.........

Yes

If "Yes" (list url): www.fsregional.com

If "No," is the hospital facility’s most recently adopted implementation strategy attached to this return? ......

10b

Describe in Section C how the hospital facility is addressing the significant needs identified in its most recently conducted CHNA and any such needs that are not being addressed together with the reasons why such needs are not being addressed.

12a

Did the organization incur an excise tax under section 4959 for the hospital facility's failure to conduct a CHNA as required by section 501(r)(3)?...............................

12a

If "Yes" on line 12a, did the organization file Form 4720 to report the section 4959 excise tax?........

12b

If "Yes" on line 12b, what is the total amount of section 4959 excise tax the organization reported on Form 4720 for all of its hospital facilities? $

Schedule H (Form 990) 2015

Page 5

Part VFacility Information (continued)

Financial Assistance Policy (FAP)

	Fort Sanders Regional Medical Center
Name of hospital facility or letter of facility reporting group

Yes

Did the hospital facility have in place during the tax year a written financial assistance policy that:

Explained eligibility criteria for financial assistance, and whether such assistance included free or discounted care?

Yes

If “Yes,” indicate the eligibility criteria explained in the FAP:

Federal poverty guidelines (FPG), with FPG family income limit for eligibility for free care of 200.000000000000% and FPG family income limit for eligibility for discounted care of 300.000000000000%

Income level other than FPG (describe in Section C)

Asset level

Medical indigency

Insurance status

Underinsurance discount

Residency

Other (describe in Section C)

Explained the basis for calculating amounts charged to patients?.................

Yes

Explained the method for applying for financial assistance?...................

Yes

If “Yes,” indicate how the hospital facility’s FAP or FAP application form (including accompanying instructions) explained the method for applying for financial assistance (check all that apply):

Described the information the hospital facility may require an individual to provide as part of his or her application

Described the supporting documentation the hospital facility may require an individual to submit as part of his or
her application

Provided the contact information of hospital facility staff who can provide an individual with information about the
FAP and FAP application process

Provided the contact information of nonprofit organizations or government agencies that may be sources of
assistance with FAP applications

Other (describe in Section C)

Included measures to publicize the policy within the community served by the hospital facility?........

Yes

If "Yes," indicate how the hospital facility publicized the policy (check all that apply):

The FAP was widely available on a website (list url):

The FAP application form was widely available on a website (list url):

A plain language summary of the FAP was widely available on a website (list url):

The FAP was available upon request and without charge (in public locations in the hospital facility and by mail)

The FAP application form was available upon request and without charge (in public locations in the hospital facility
and by mail)

A plain language summary of the FAP was available upon request and without charge (in public locations in the
hospital facility and by mail)

Notice of availability of the FAP was conspicuously displayed throughout the hospital facility

Notified members of the community who are most likely to require financial assistance about availability of the FAP

Other (describe in Section C)

Billing and Collections

Did the hospital facility have in place during the tax year a separate billing and collections policy, or a written financial assistance policy (FAP) that explained all of the actions the hospital facility or other authorized party may take upon non-payment?..................................

Yes

Check all of the following actions against an individual that were permitted under the hospital facility's policies during the tax year before making reasonable efforts to determine the individual’s eligibility under the facility’s FAP:

Reporting to credit agency(ies)

Selling an individual’s debt to another party

Actions that require a legal or judicial process

Other similar actions (describe in Section C)

None of these actions or other similar actions were permitted

Schedule H (Form 990) 2015

Page 6

Part VFacility Information (continued)

	Fort Sanders Regional Medical Center
Name of hospital facility or letter of facility reporting group

Yes

Did the hospital facility or other authorized party perform any of the following actions during the tax year before making reasonable efforts to determine the individual’s eligibility under the facility’s FAP?............

If "Yes," check all actions in which the hospital facility or a third party engaged:

Reporting to credit agency(ies)

Selling an individual’s debt to another party

Actions that require a legal or judicial process

Other similar actions (describe in Section C)

Indicate which efforts the hospital facility or other authorized party made before initiating any of the actions listed (whether or not checked) in line 19. (check all that apply):

Notified individuals of the financial assistance policy on admission

Notified individuals of the financial assistance policy prior to discharge

Notified individuals of the financial assistance policy in communications with the individuals regarding the individuals’ bills

Documented its determination of whether individuals were eligible for financial assistance under the hospital facility’s financial assistance policy

Other (describe in Section C)

None of these efforts were made

Policy Relating to Emergency Medical Care

Did the hospital facility have in place during the tax year a written policy relating to emergency medical care that required the hospital facility to provide, without discrimination, care for emergency medical conditions to individuals regardless of their eligibility under the hospital facility’s financial assistance policy?..................

Yes

If "No," indicate why:

The hospital facility did not provide care for any emergency medical conditions

The hospital facility’s policy was not in writing

The hospital facility limited who was eligible to receive care for emergency medical conditions (describe in Section C)

Other (describe in Section C)

Charges to Individuals Eligible for Assistance Under the FAP (FAP-Eligible Individuals)

Indicate how the hospital facility determined, during the tax year, the maximum amounts that can be charged to FAP-eligible individuals for emergency or other medically necessary care.

The hospital facility used its lowest negotiated commercial insurance rate when calculating the maximum amounts that
can be charged

The hospital facility used the average of its three lowest negotiated commercial insurance rates when calculating the maximum amounts that can be charged

The hospital facility used the Medicare rates when calculating the maximum amounts that can be charged

Other (describe in Section C)

During the tax year, did the hospital facility charge any FAP-eligible individual to whom the hospital facility provided emergency or other medically necessary services more than the amounts generally billed to individuals who had insurance covering such care? ...............................

If "Yes," explain in Section C.

During the tax year, did the hospital facility charge any FAP-eligible individual an amount equal to the gross charge for any service provided to that individual? ...........................

If "Yes," explain in Section C.

Schedule H (Form 990) 2015

Page 7

Part V

Facility Information (continued)

Section C. Supplemental Information for Part V, Section B. Provide descriptions required for Part V, Section B, lines 2, 3j, 5, 6a, 6b, 7d, 11, 13b, 13h, 15e, 16i, 18d, 19d, 20e, 21c, 21d, 22d, 23, and 24. If applicable, provide separate descriptions for each hospital facility in a facility reporting group, designated by facility reporting group letter and hospital facility line number from Part V, Section A (“A, 1,” “A, 4,” “B, 2,” “B, 3,” etc.) and name of hospital facility.
Form and Line Reference	Explanation
Fort Sanders Regional Medical Center	Part V, Section B, Line 5: "Together! Healthy Knox" (T!HK) was launched by the Knox County Health Department in May 2010 and was designed to create a community approach to better health. The T!HK initiative is based on the Mobilizing for Action through Planning and Partnerships (MAPP) model for community health planning, which consists of specific steps meant to be repeated every three to five years. What began with a twenty partner Leadership Team grew to involve over seventy community and organizational partners. The assessment process, led by the Health Department, had broad participation from the public health community, including all Knox County hospitals. All four MAPP assessments were completed in 2011, and the T!HK Leadership Team determined the most critical issues to be addressed in Knox County. After nearly three years of data collection, analysis and meetings, the priority areas were announced to the broader community in a press conference on November 1, 2012. Three action teams formulated goals and strategies to address the three priority areas identified.
Fort Sanders Regional Medical Center	Part V, Section B, Line 6a: Knox County hospitals who participated in the "Together! Healthy Knox" initiative included Fort Sanders Regional Medical Center, Parkwest Medical Center, East Tennessee Children's Hospital, and The University of Tennessee Medical Center.
Fort Sanders Regional Medical Center	Part V, Section B, Line 6b: The CHNA could not have been completed without the leadership of the Knox County Health Department and the Together! Healthy Knox Leadership Team. Their expertise, use of the MAPP process, meeting facilitation and guidance ultimately resulted in the most comprehensive health assessment process ever undertaken in Knox County. Other community organizations who participated in the CHNA process were Child and Family Tennessee, City of Knoxville, Knoxville Academy of Medicine, Knoxville Area Coalition on Childhood Obesity, Knoxville Chamber of Commerce, Knoxville Police Department, Knoxville Community Development Corporation, Helen Ross McNabb Center, Interfaith Health Clinic, Knox County Government, Metropolitan Drug Commission, and community members from many other organizations.
Fort Sanders Regional Medical Center	Part V, Section B, Line 11: Of the significant findings identified in the CHNA, Fort Sanders Regional Medical Center is focusing its resources on the following: Achieving Equitable Health Outcomes Promoting educational clinics through the Patricia Neal Innovative Recreation Cooperative to assist individuals with disabilities so they can improve their quality of life through adaptive recreational endeavors Increasing community safety awareness as a participant in Dollywood Safety Day Strengthening Community Partnerships Collaborating with a local children's hospital to identify and treat infants diagnosed with Neonatal Abstinence Syndrome and initiating referrals to substance abuse resources and community agencies as appropriate Partnering with employers to assist with their worksite employee health program utilizing the HealthQuest program; assistance includes wellness program consultation, health risk data analysis, biometric screenings, employee outreach, weight management and primary care referral
Fort Sanders Regional Medical Center	Part V, Section B, Line 16i: Please see the explanation to Part VI, Line 3.
Fort Sanders Regional Medical Center	Part V, Section B, Line 22d: Please see the explanation to Part III, Line 9b.

Schedule H (Form 990) 2015

Page 8

Part VFacility Information (continued)

Section D. Other Health Care Facilities That Are Not Licensed, Registered, or Similarly Recognized as a Hospital Facility (list in order of size, from largest to smallest) How many non-hospital health care facilities did the organization operate during the tax year?18
Name and address		Type of Facility (describe)
1	1 - FSR Infusion Services Oak Ridge 200 New York Avenue Suite 230 Oak Ridge,TN37830	Pharmacy - Infusion Services
2	2 - FSR Infusion Services TCSC 1915 White Avenue Knoxville,TN37916	Pharmacy - Infusion Services
3	3 - Patricia Neal Rehabilitation Center 1901 Clinch Avenue Knoxville,TN37916	Rehabilitation Unit
4	4 - Thompson Infusion Center 215 BMH Cancer Center Drive Maryville,TN37804	Pharmacy - Infusion Services
5	5 - Fort Sanders Regional MRI Dept 1915 White Avenue Knoxville,TN37916	MRI Dept (Diagnostic)
6	6 - FSR Infusion Services Lenoir City 576 Fort Loudoun Med Ctr Dr Ste 204 Lenoir City,TN37772	Pharmacy - Infusion Services
7	7 - Fort Sanders West Diagnostic Center Fort Sanders West Blvd MOB-3 Ste 210 Knoxville,TN37922	Diagnostic Center
8	8 - Fort Sanders Regional Infusion Services 1901 Clinch Avenue Knoxville,TN37916	Pharmacy - Infusion Services
9	9 - FSR Gamma Knife Center 1915 White Avenue 1st Floor Knoxville,TN37916	Gamma Knife Center
10	10 - Fort Sanders Wound Care Center 2001 Laurel Avenue Suite G-5 Knoxville,TN37916	Wound Care
11	11 - FSRMC Transitional Care Unit 1901 Clinch Avenue Knoxville,TN37916	Skilled Nursing Facility
12	12 - FS Neurodiagnostics & Sleep Center Ft Sanders POB Ste 303 501 20th St Knoxville,TN37916	Neurodiagnostic and Sleep Center
13	13 - Fort Sanders Regional Laser Center 1915 White Avenue Knoxville,TN37916	Center for Barrett's Esophagus
14	14 - FSR Therapy Center - Downtown 2001 Laurel Avenue Ste 504 Knoxville,TN37916	Physical Rehabilitation Therapy Center
15	15 - FSR Cardiopulmonary Rehab Ft Sanders POB Ste 301 501 20th St Knoxville,TN37916	Cardiopulmonary Rehab Therapy Center
16	16 - Fort Sanders Regional Breast Center 1915 White Avenue Knoxville,TN37916	Breast Center (Diagnostic)
17	17 - FSR Therapy Center - Halls 6679 Maynardville Hwy Knoxville,TN37918	Physical Rehabilitation Therapy Center
18	18 - FSR Therapy Center - Powell 3515 Emory Road Suite P-9 Powell,TN37849	Physical Rehabilitation Therapy Center

Schedule H (Form 990) 2015

Page 9

Part VI

Supplemental Information

Provide the following information.

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

Form and Line Reference	Explanation
Part I, Line 6a:	Covenant Health, the parent company of Fort Sanders Regional Medical Center and other affiliated acute care hospitals, prepares an annual Report to the Community on behalf of the entire system.
Part I, Line 7:	Amounts on Lines 7a-7c and certain program costs included on Line 7g are from the hospital's cost accounting system, which addresses all patient segments. Other community benefit expenses are at cost from the general ledger.
Part I, Line 7g:	The organization has included $6,960,326 in physician sponsorship fees in total subsidized health services.
Part I, Line 7, Column (f):	The Bad Debt expense included on Form 990, Part IX, Line 25, Column (A), but subtracted for purposes of calculating the percentage in this column is $ 17,320,921.
Part II, Community Building Activities:	Fort Sanders Regional Medical Center cares for the whole person and recognizes that improved social and economic conditions may lead to the improved health and well-being of the community. The hospital's community building activities and those of its parent organization, Covenant Health, address many of the root causes of health problems, such as poverty and homelessness, and help find solutions to alleviate the symptoms.An allocation of the Parent's community building expenditures has been made to each member hospital in proportion to the financial contribution of each to the health system. Covenant Health is not a hospital and does not file Schedule H with its Form 990. In 2015 contributions were made to organizations meeting the community's needs by providing: Literacy programs - Dollywood Foundation The basic needs of life including temporary shelter, food and clothing - United Way and others Youth mentoring, development and after-school programs - Emerald Youth Foundation, Boys and Girls Club and Great Smoky Mountain Council Business recruitment and marketing initiatives that boost economic development - Innovation Valley and East Tennessee Economic Development Agency Leadership development programs and workshops - Leadership Knoxville Assistance and special programs for at risk, physically challenged, abused and neglected children - Variety of Eastern Tennessee (local chapter of Variety-The Children's Charity) and East TN Tech Access Center, Inc. Improve access to health services - Interfaith Health Clinic and Knoxville Academy of Medicine Programs targeting cancer patients and their families - Cancer Support Community, Inc. and Komen Knoxville Race for Cure
Part III, Line 2:	Bad debt expense on Line 2 is the amount recorded in the organization's financial statements. Discounts and payments on patient accounts are netted against bad debt.
Part III, Line 3:	In 2015, the hospital reviewed all self-pay accounts receivable to identify patients who might have qualified for financial assistance. As of year end, the hospital could not make a final determination as to some patients' qualification for financial assistance because not all requested financial information had been received but felt strongly that they were in need of some form of assistance. Notes in the patient records were examined to see if a charity care application had been sent to the patients or guarantors or if the accounts were being analyzed by a business office employee for approval for charity care. The percentage of patient accounts being analyzed as a percent of total self-pay accounts receivable has been applied to the current year total bad debt expense on Line 2 to arrive at the amount reported on Line 3. It is our belief that the amount of bad debt on line 3 should be included as community benefit. As a tax-exempt hospital, we must provide necessary services regardless of the patients' ability to pay for the service provided. As a not-for-profit, patient care is provided to all, regardless of ability to pay for that care. Making quality patient care available to all in our community, regardless of economic means, qualifies bad debts as a community benefit.
Part III, Line 4:	Note B to the 2015 Audited Consolidated Financial Statements of the Covenant Health system, of which Fort Sanders Regional Medical Center is a member, reads in part: "Patient accounts receivable are reported net of both an estimated allowance for uncollectible accounts and an estimated allowance for contractual adjustments. The contractual allowance represents the difference between established billing rates and estimated reimbursement from Medicare, TennCare and other third-party payment programs. The allowance for uncollectible accounts is estimated based upon the age of the patient accounts receivable, prior experience and any unusual circumstances (such as local, regional or national economic conditions) which affect the collectability of receivables, including management's assumptions about conditions it expects to exist and courses of action it expects to take. Covenant's policy does not require collateral or other security for patient accounts receivable and Covenant routinely accepts assignment of, or is otherwise entitled to receive, patient benefits payable under health insurance programs, plans or policies."
Part III, Line 8:	Medicare Shortfall: Fort Sanders Regional Medical Center believes that all of the $5.1 million shortfall reported in Line 7 should be considered as community benefit. The IRS Community Benefit Standard includes the provision of care to the elderly and Medicare patients. Medicare shortfalls must be absorbed by the hospital in order to continue treating the elderly in our community. This year, Medicare patients accounted for 27.9% of total patient days (22,634 out of 81,192 total). The hospital provides care regardless of this shortfall and thereby relieves the federal government of the burden of paying the full cost for Medicare beneficiaries.Costing Methodology: Fort Sanders Regional Medical Center used a combination of sources in calculating Medicare allowable costs on Part III, Line 6 including its cost accounting system, general ledger accounting system, and facility-specific analyses and calculations.
Part III, Line 9b:	Self-pay patients automatically receive a minimum 48% discount on charges. Federal poverty guidelines are utilized in the determination of charity care eligibility. Patients who are unable to pay and have exhausted all sources of payment assistance may qualify for charity care. A sliding scale is used for extending charity care utilizing the income levels reported under the federal poverty guidelines. Patients/guarantors with income that falls below 200% of the federal poverty guidelines receive 100% charity care. Patients/guarantors with income of 201-300% of the federal poverty guidelines receive 70% charity care.For catastrophic illness, exceptions to income and asset limitations may be made on a case-by-case basis. The amount considered for charity will be based upon the evaluation of the patient's/guarantor's ability to pay.Patients/guarantors who qualify for partial financial assistance are responsible for paying any balance remaining after the charity adjustment and third party payments. Once an account has been processed internally through routine collection channels, it may be assigned to an attorney or agency for collection. The patient/guarantor will be billed for all collection costs as may be applicable. Credit reports will be filed no earlier than 30 days following the assignment on all nonpaid balances.
Part VI, Line 2:	While the Community Health Needs Assessment is a formal means by which the health system assesses the needs of the community, there are many informal linkages that give the Covenant Health hospitals a sense of community issues and needs. Fort Sanders Regional Medical Center obtains additional community information thru the service of its employees with organizations including the Interfaith Health Clinic, local Chambers of Commerce and Rotary clubs, the Knoxville Area Coalition on Childhood Obesity, Knox Area Project Access, and the United Way of Greater Knoxville.
Part VI, Line 3:	Fort Sanders Regional Medical Center informs patients and other persons who may be billed for patient care about its financial assistance policies by posting signs in highly visible areas of the hospital and including information about the financial assistance policy in patient booklets provided to inpatients during the registration process.The following sign is posted in the main registration area, main lobby area and in the Emergency Department registration entrance: Financial Assistance: Covenant Health is committed to providing quality health services in a caring environment. It is the expressed philosophy of Covenant Health, and its member hospitals, that no one should be denied necessary medical care because of the inability to pay. In conjunction with this philosophy, staffs of Fort Sanders Regional Medical Center are available to assist you with your financial needs. If you are an uninsured person with no public or private source of payment for medical services, Fort Sanders Regional Medical Center, in compliance with Tennessee Code Annotated, Title 47, Chapter 18 and Title 68, will provide at a reduced rate, medically indicated services. A financial counselor is available to assist you with these matters by calling 865-541-1112, Monday through Friday between the hours of 8 a.m. and 4:30 p.m.Signs are also posted at each registration desk and at Customer Service stating: Financial Assistance: It is Fort Sanders Regional Medical Center's philosophy that no one shall be denied medically necessary services based on an inability to pay. Financial assistance applications for medically necessary services are available during the registration process or through our Financial Counselor's office. To apply for financial aid, please ask our registration staff or contact the Counselor's office at 541-1112. The Financial Counselor is available Monday - Friday, 8 a.m. - 4:30 p.m.Fort Sanders Regional Medical Center employs full time financial counselors and has a contract employee from First Source Solutions that meet with each uninsured patient. In addition, Fort Sanders Regional Medical Center assists with completion of a TennCare application and ensures the application is directed to the appropriate Department of Human Services.The Charity Care Policy states that patients who are unable to pay and have exhausted all sources of payment assistance may be screened for potential charity care eligibility. According to the policy, the financial counselor initiates screening of the patient and/or guarantor by obtaining income and other financial information to determine eligibility for charity care or discounted services.
Part VI, Line 4:	Fort Sanders Regional Medical Center is located in downtown Knoxville, Tennessee. Although located in metropolitan Knox County, Fort Sanders Regional Medical Center receives many specialty referrals from outlying hospitals and physicians and serves patients from 16 diverse counties, a mix of urban, suburban and rural. According to internal hospital data for 2015, more than 54% of the inpatients and outpatient cases were from Knox County. Sevier County provides Fort Sanders Regional with the second highest number of admissions compared to other counties in the region, slightly more than 9% of the total.According to 2015 data from the County Health Ranking report of the Robert Wood Johnson Foundation the population of Knox County is 448,644. The percent of the population that is 65 years or older constitute 14.5% of the residents. The unemployment rate in 2015 was 4.8%. According to the 2015 County Health Rankings Report by the Robert Wood Johnson Foundation/ University of Wisconsin Population Health Institute, Knox County residents ranked 15 out of 95 Tennessee Counties in overall health. Knox County residents have the following health indicators that are at or above the national benchmarks: Knox - TN - National Adult Smoking: 22% - 24% - 14% Adult Obesity: 29% - 32% - 25% Excessive Drinking: 12% - 12% - 12% Teen Birthrate: 31 - 45 - 19 of every 1,000 teenage girls
Part VI, Line 5:	Fort Sanders Regional Medical Center (FSRMC), in conjunction with its parent company, Covenant Health, uses any available surplus of receipts over disbursements to expand and modernize the facility and to support the education of healthcare professionals, both of which serve to improve patient care and serve the unmet needs of the community.Covenant Health's Board of Directors serves as FSRMC's board. It is comprised of independent community leaders with diverse educational and professional backgrounds. The board sets policies and provides oversight of FSRMC.FSRMC maintains an open medical staff, with privileges available to all qualified physicians. Additionally, the hospital operates an active and accessible emergency department that accepts all patients regardless of ability to pay.
Part VI, Line 6:	Fort Sanders Regional Medical Center, as a member of the Covenant Health system, benefits from the collaboration among all affiliated organizations to promote quality improvement, patient safety and efficient delivery of care for the communities served. As a system, Covenant assures that business processes are in place at each facility to measure and report quality, to increase the role of compliance, and to integrate risk management, utilization review, peer review, mandatory reporting and quality improvement into one cohesive function. In this way the system is able to use analytic tools to help identify any systemic inability to satisfy the various requirements on the part of the facilities. Fort Sanders Regional, as a regional referral hospital, provides a wide range of acute care services, many of which are unique in the Covenant system. These services are therefore more easily accessible by other affiliated hospitals and health care organizations through transfer or referral, helping to create a seamless continuum of care. The hospital, through its Patricia Neal Rehabilitation Center division, is the only acute inpatient rehabilitation facility in the Covenant system and the largest such provider in the service area. Programming includes specialized services for stroke, brain injury, spinal cord injury and other difficult patient populations with the primary goal of returning the patient home with the greatest gain in functional ability possible. Fort Sanders Regional also provides hospital-based skilled nursing care which serves as either a bridge back home or as an important step along the continuum of care to other long-term care resources. Fort Sanders Regional also provides other important services unique to the Covenant system including high risk obstetrical services and home infusion. Regional operates the Coumadin clinic, as well, which serves to educate another vulnerable population as well as to monitor the therapeutic effectiveness of this drug. These services are important to preventing unnecessary hospitalizations through the provision of effective community-based care. Fort Sanders Regional also provides other extensive outpatient services through its ambulatory infusion centers, physical therapy centers, a wound care center, and its cardiac and pulmonary rehabilitation programs. Fort Sanders Regional's patients benefit from the availability of and ease of access to Covenant affiliated entities for services not provided by the hospital itself. Transfer or referral to such services is expedited and coordinated to help create a seamless continuum of care. A full range of community mental health and psychiatric hospital services are available within the system which help support the hospital's emergency room as well as provide an accessible and efficient pathway for those patients who require such services post discharge. Home health and hospice services are also an important part of the continuum of care for a large portion of the hospital's patient population. The Covenant Health system also enhances the patient's access to care through the provision of outpatient services in a variety of settings located throughout the service area.The Fort Sanders Foundation seeks out community support for Fort Sanders Regional and other Covenant Health hospitals through a variety of fund raising mechanisms. For example, the Fort Sanders Foundation helps to arrange sponsorship for significant fund raising activities of the Patricia Neal Rehabilitation Center division of the hospital including an annual golf tournament that has become the largest, single day fundraising event in the state of Tennessee. The proceeds of these events help fund needed equipment and facilities for the center as well as to provide access to the center's services for uninsured or underinsured individuals who are in need of intensive rehabilitation but may otherwise be denied such services due to the lack of resources. The Foundation also provides temporary residential services through the Fellowship Center for patients of the hospital and their families that travel to Knoxville to receive needed care but are unable to afford the costs involved.The Fort Sanders Nursing Department at Tennessee Wesleyan College is an important affiliate of Fort Sanders Regional. The school provides a baccalaureate nursing education, helping to alleviate a shortage of registered nurses to serve a growing and aging population. It is a continuation of a nursing education tradition of the hospital that began more than eighty years ago. The hospital provides a substantial financial contribution to support the program. Training qualified nursing professionals to serve the current or future needs of the community is an important hospital mission.Fort Sanders Regional is integrated with its community in a number of ways including its active participation in the development of a Fort Sanders Neighborhood District Long Range Plan. Fort Sanders is a densely populated urban neighborhood in the City of Knoxville. With its proximity to downtown and with the location of two regional referral hospitals (East Tennessee Children's Hospital being the other) and the flagship campus of the University of Tennessee in its boundaries, it provides an ideal location for convenient access for residents and as a gateway to visitors. With these assets, it is imperative that the city and neighborhood leaders work together in order to coordinate quality growth while maintaining the rich character and history that give Fort Sanders its unique identity.Through this combination of resources and the collective development, implementation and monitoring of clinical protocols and other improvement initiatives, the affiliated entities of Covenant Health are able to deliver higher quality care in a more efficient manner than could be achieved working independently.

Schedule H (Form 990) 2015

Additional Data

Software ID:
Software Version:

- TIN:

Schedule I
(Form 990)

Department of the Treasury
Internal Revenue Service

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

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

Attach to Form 990.
lBullet

Information about Schedule I (Form 990) and its instructions is at www.irs.gov/form990.

OMB No. 1545-0047

2015

Open to Public
Inspection

Name of the organization
Fort Sanders Regional Medical Center

Employer identification number
62-0528340

Part I

General Information on Grants and Assistance

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

Yes No

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

Part II

Grants and Other Assistance to Domestic Organizations and Domestic Governments. Complete if the organization answered "Yes" on 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 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) Fort Sanders Foundation 280 Ft Sanders West Blvd Ste 202 Knoxville,TN37922	62-1748601	501(c)(3)	10,200				Fellowship Center and patient support
(2) Thompson Cancer Survival Center 1915 White Avenue Knoxville,TN37916	62-1250943	501(c)(3)	75,193				Operating subsidy for Fellowship Center

Enter total number of section 501(c)(3) and government organizations listed in the line 1 table ................. Bullet Image

Enter total number of other organizations listed in the line 1 table ........................ . Bullet Image

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

Cat. No. 50055P

Schedule I (Form 990) 2015

Page 2

Part III

Grants and Other Assistance to Domestic Individuals. Complete if the organization answered "Yes" on 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) Leased a LifeVest Wearable defibrillator for one month for a patient.	1	3,000
(2) Provided critical medications to indigent hospital patients at discharge in order to facilitate earlier discharge or to prevent readmission.	332		23,947	Cost	Prescription medications
(3) Patient well being items- gift cards, tickets, drugs & medical supplies.	100		8,542	Cost or FMV	Donated gift cards, tickets and clothing passed on to patients
(4) Provided 4 scholarships for nursing school to non-employees.	4	8,800
(4)
(5)
(6)
(7)

Part IV

Supplemental Information. Provide the information required in Part I, line 2, Part III, column (b), and any other additional information.

Return Reference

Explanation

Part I, Line 2:

The hospital provides for the post-hospitalization medication needs of its patients when there is a demonstrated need as attested to by a social services worker. The determination is made by Case Management based on the judgment of the social services worker after working with the patient and the patient's family. Assistance is approved on a case-by-case basis by Case Management, and this approval is verified upon approval of any invoices to be paid.

Schedule I (Form 990) 2015

Additional Data

Software ID:
Software Version:

- TIN:

Schedule J
(Form 990)

Department of the Treasury
Internal Revenue Service

Compensation Information

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

Complete if the organization answered "Yes" on Form 990, Part IV, line 23.
SchJMediumBullet

Attach to Form 990.
SchJMediumBullet

Information about Schedule J (Form 990) and its instructions is at www.irs.gov/form990.

OMB No. 1545-0047

2015

Open to Public Inspection

Name of the organization

Fort Sanders Regional Medical Center

Employer identification number

62-0528340

Part I

Questions Regarding Compensation

Yes

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

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

Travel for companions Payments for business use of personal residence

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

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

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

Yes

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

Yes

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.

Compensation committee Written employment contract

Independent compensation consultant Compensation survey or study

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

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

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

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

Yes

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

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

Only 501(c)(3), 501(c)(4), and 501(c)(29) organizations must complete lines 5-9.

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

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

Any related organization?

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

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

The organization?

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

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

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

Were any amounts reported on 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 .............................

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

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

Cat. No. 50053T

Schedule J (Form 990) 2015

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 on 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 in column(B) reported as deferred on prior Form 990
(A) Name and Title		(i) Base compensation	(ii) Bonus & incentive compensation	(iii) Other reportable compensation	(C) Retirement and other deferred compensation	(D) Nontaxable benefits	(E) Total of columns (B)(i)-(D)
1Anthony L SpeziaPresident & CEO	(i) (ii)	0 ------------- 1,003,236	0 ------------- 503,500	0 ------------- 153,597	0 ------------- 214,400	0 ------------- 16,299	0 ------------- 1,891,032	0 ------------- 0
2John T GeppiEVP/CFO	(i) (ii)	0 ------------- 496,663	0 ------------- 215,000	0 ------------- 84,054	0 ------------- 10,400	0 ------------- 17,490	0 ------------- 823,607	0 ------------- 0
3Keith AltshulerPresident & CAO	(i) (ii)	0 ------------- 267,757	0 ------------- 80,000	0 ------------- 52,068	0 ------------- 10,400	0 ------------- 24,754	0 ------------- 434,979	0 ------------- 0
4Ronnie S BeelerVP - Financial Services	(i) (ii)	162,699 ------------- 0	20,000 ------------- 0	20,143 ------------- 0	7,056 ------------- 0	23,062 ------------- 0	232,960 ------------- 0	0 ------------- 0
5Kelly S MilesVP - Chief Nursing Officer	(i) (ii)	212,772 ------------- 0	20,000 ------------- 0	9,005 ------------- 0	4,523 ------------- 0	15,052 ------------- 0	261,352 ------------- 0	0 ------------- 0
6Bridgette WelchDirector, Surgical Services	(i) (ii)	132,068 ------------- 0	1,302 ------------- 0	238 ------------- 0	8,135 ------------- 0	10,097 ------------- 0	151,840 ------------- 0	0 ------------- 0
7Mary E Dillon MDMedical Director	(i) (ii)	239,228 ------------- 0	0 ------------- 0	1,148 ------------- 0	0 ------------- 0	3,055 ------------- 0	243,431 ------------- 0	0 ------------- 0
8Nancy L GrangerPharmacy Manager	(i) (ii)	144,401 ------------- 0	0 ------------- 0	3,698 ------------- 0	8,604 ------------- 0	21,438 ------------- 0	178,141 ------------- 0	0 ------------- 0
9Christopher C NorrisPharmacy Director	(i) (ii)	155,866 ------------- 0	0 ------------- 0	1,298 ------------- 0	9,280 ------------- 0	21,327 ------------- 0	187,771 ------------- 0	0 ------------- 0
10Joseph M BowlingMedical Physicist	(i) (ii)	189,198 ------------- 0	0 ------------- 0	148 ------------- 0	10,953 ------------- 0	17,857 ------------- 0	218,156 ------------- 0	0 ------------- 0
11Jennifer HansonFormer VP - Chief Nursing Officer	(i) (ii)	0 ------------- 201,594	0 ------------- 44,000	0 ------------- 36,108	0 ------------- 10,330	0 ------------- 8,516	0 ------------- 300,548	0 ------------- 0

Schedule J (Form 990) 2015

Page 3

Part III

Supplemental Information

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.

Return Reference	Explanation
Part I, Line 1a	Tax gross-up payments related to deferred compensation are provided to certain executives and managers. These are treated as taxable compensation to the recipients.
Part I, Line 3	Covenant Health, the parent company of Fort Sanders Regional Medical Center, used one or more of the methods listed in establishing the compensation of Anthony L. Spezia. Please see the statement to Core Part VI, Section B, Line 15a on Schedule O.
Part I, Line 4b	Anthony L. 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 2015 amounted to $90,424 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 2015 totaled $204,000, which is reported in Column C of Schedule J, Part II. Interest earned by Plan B during 2015 of $57,620 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) 2015

Additional Data

Software ID:
Software Version:

- TIN:

SCHEDULE O
(Form 990 or 990-EZ)

Department of the Treasury
Internal Revenue Service

Supplemental Information to Form 990 or 990-EZ

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

Attach to Form 990 or 990-EZ.
MediumBullet

Information about Schedule O (Form 990 or 990-EZ) and its instructions is at
www.irs.gov/form990.

OMB No. 1545-0047

2015

Open to Public
Inspection

Name of the organization

Fort Sanders Regional Medical Center

Employer identification number

62-0528340

Return Reference	Explanation
Form 990, Part III, Line 1	2015 Report to the Community Covenant Health is a comprehensive, community-owned, not-for-profit health system serving 23 counties in East Tennessee. Nine acute care hospitals located in Knoxville and surrounding areas comprise the foundation of the health system. Additional outpatient and specialty care departments are located throughout the region providing diagnostic and surgery services, mental health and cancer treatments, and therapy and home health services. Over 10,000 employees and 1,500 affiliated physicians are dedicated to improving the quality of life for the more than one million patients and families served each year. Covenant Health's mission is to serve its communities by improving health. It has invested well over a billion dollars in the local communities since 2000 - a commitment that no other healthcare organization in the region has approached. In the current challenging environment Covenant Health is nationally recognized as a top performer in many areas: patient care, quality, cost, information technology, finances, ethics and innovation. It reaffirms its long-standing commitment to the communities and its core strategies: * Provide the best care and outstanding customer service to every patient, every time. * Serve its communities as a not-for-profit health system. * Provide excellence in governance and leadership, effective strategic planning and wise use of resources. * Engage a work force with the appropriate skill sets. * Be the practice environment of choice for its physicians. * Optimize the value of being a unified health system. In 2015, Covenant Health ranked in the top 20 percent of a national study of health systems that measures quality and efficiency in areas such as adherence to clinical standards of care, patient safety and satisfaction, length of stay and other criteria. It received awards for clinical excellence from VHA, Inc., a national healthcare performance improvement alliance. Two of its hospitals - Fort Loudoun Medical Center and LeConte Medical Center - were among just six hospitals in the country to receive a VHA 2015 Excellence Award for Clinical Effectiveness for achieving exceptionally high levels of performance compared to national benchmarks. Fort Sanders Center for Bariatric Surgery Obesity has become a significant national health issue. Morbid obesity, defined as having a Body Mass Index (BMI) over 35 and being at risk for obesity-related health issues, is closely correlated with serious medical conditions including heart disease, high blood pressure and diabetes. Bariatric surgery often eliminates these conditions, along with the side effects that can result from the medications used to treat them. It is becoming a more viable option for people who need to lose at least 100 pounds and have found other weight-loss strategies to be unsuccessful. Bariatric surgeons, after helping more than 2000 patients over the past dozen years, created the Fort Sanders Center for Bariatric Surgery which has been designated as a Center of Excellence by the American Society of Metabolic and Bariatric Surgery. The atmosphere at the Center for Bariatric Surgery is one of support and encouragement. The relationship between physicians, staff and the patient is very open. It is important that the patient is completely informed when making a choice about surgery. A support group is available before and after surgery, and patients are strongly encouraged to take part. The Center for Bariatric Surgery offers two cutting edge solutions. Laparoscopic gastric bypass, usually done as a robotic procedure, creates a smaller stomach pouch and reroutes a portion of the small intestine. Sleeve gastrectomy removes a portion of the stomach and creates a narrower digestive tube. The safety of bariatric surgery has improved greatly over the past several years, and in most instances the patient goes home within 24 hours after surgery. Partners in Quality Care Covenant Health collaborates with physicians to carry out its mission of improving the quality of life through better health. Physicians partner with the health system in many ways including employment, as members of hospital medical staffs and Covenant's board of directors, and in committee leadership roles. Covenant Medical Group, Inc. (CMG) employs nearly 200 primary care and specialty physicians in about 100 practice locations. Covenant Health builds and maintains partnerships with physicians through joint ventures such as surgery centers and the development of service line strategies that focus on improving quality and cost of patient care. Nearly 1,500 physicians are affiliated with Covenant Health hospitals and member organizations as active or consulting members of the health system's medical staffs. These physicians may serve in leadership positions at their respective hospitals, and several also represent their organizations and communities through membership in Covenant Health's Board of Directors. Good Health is Good Business In addition to partnerships with physicians, Covenant Health works with businesses and insurance brokers to help control and lower healthcare costs. Working side by side with companies, Covenant Health helps to develop programs and services such as on-site clinics to engage employees in healthy behaviors and manage chronic diseases. With more than 30 years of experience providing biometric screenings and wellness programs in local communities, Covenant Health's professionals deliver on-site solutions for business clients. The program's goals are to improve employee health and positively affect an organization's healthcare investment.
Form 990, Part III, Line 1	Covenant Health Named Among Nation's "Most Wired" The American Hospital Association's Health Forum and the College of Healthcare Information Management Executives (CHIME) named Covenant Health among the nation's "Most Wired" healthcare organizations in the 2015 "Most Wired" survey. The survey and benchmarking study is a leading industry barometer measuring information technology use among hospitals nationwide. The survey of more than 2,213 hospitals examined how healthcare organizations leverage IT to improve performance for value-based healthcare in areas such as infrastructure, business and administrative management, quality and safety, and clinical integration. The survey showed that hospitals are taking more aggressive privacy and security measures to protect and safeguard patient data. Most Wired hospitals are using IT to better facilitate information exchange across health care and other settings, and greater alignment between hospitals and physicians. Most Wired organizations are also implementing patient portals to get patients actively involved in their health and health care. Covenant Health is one of only four Tennessee healthcare organizations to be named to the Most Wired list. It is the 12th time that Covenant Health has been ranked among Most Wired. Best Practices for Babies' Healthy Start The Covenant hospitals are part of a statewide Healthy Tennessee Babies Are Worth the Wait initiative to increase awareness of the benefits of full-term delivery. Babies born too early are at risk for respiratory distress, jaundice, hypoglycemia and other conditions that need more medical care and put them at greater risk for death before their first birthdays. Waiting until 39 weeks to deliver allows for better growth and development of vital organs and is also better for the health and safety of the mother. In addition to patient and staff education programs, Covenant Health obstetrics departments adopted a policy prohibiting early elective deliveries before 39 weeks unless there is a clear medical risk to the mother or the baby. In 2011 about 12 percent of the hospitals' deliveries that occurred prior to 39 weeks gestation were considered elective. By second quarter of 2015, the number had dropped to zero. Covenant hospitals are also involved with the Tennessee Initiative for Perinatal Quality Care's breastfeeding project, which focuses on promoting and supporting breastfeeding in the delivery setting and after mothers return home. Caring for Women throughout Their Lives Covenant Health provides a full spectrum of health services for women of all ages. The health system's ten breast centers offer patients access to the latest technological advances in the prevention, early detection, diagnosis and treatment of breast cancer. A full range of diagnostic screenings, gynecological care, cancer care, and specialized treatment are offered to women in all ages and stages of life. The health system provides comprehensive heart and stroke care for women, and has developed educational and outreach programs to teach women about cardiovascular disease, risk factors, prevention, treatment and rehabilitation. Advanced Technology Keeps More Hearts Beating Covenant Health is committed to excellence in all areas of heart care - from heart disease prevention and diagnosis of heart conditions to advanced technology and treatments, emergency interventions, and cardiac rehabilitation programs for follow-up care. More than 50 affiliated cardiologists provide diagnostic testing and perform a variety of interventional procedures such as heart catheterization and techniques to clear blocked arteries and place stents to restore blood flow. Cardiologists also treat heart arrhythmias and often repair heart valves and holes in the chambers of the heart. Covenant Health is at the forefront of cardiac innovations that restore health and the ability to live life to the fullest. Covenant was the first health system in the region to offer Transcatheter Aortic Valve Replacement (TAVR), in which a minimally invasive procedure places a new valve into the heart. The procedure gives new hope to patients suffering from life-threatening aortic stenosis who are not candidates for open-heart surgery. In addition to TAVR, a full spectrum of advanced cardiac procedures are available at Covenant Health's "heart hospitals" - Fort Sanders Regional Medical Center, Methodist Medical Center of Oak Ridge and Parkwest Medical Center. For patients experiencing severe coronary disease like blocked arteries and aortic enlargement, care close to home may seem like a distant hope. Covenant's cardiac services offer complex surgeries and treatment that are often only available in larger cities. When Minutes Matter If a heart attack occurs, time is critical. The heart hospitals of Covenant Health have adopted the American College of Cardiology and American Heart Association recommended care standards for heart attack patients, specifically those identified as the "ST-Segment Elevation MI" (STEMI) population. These patients have the highest mortality (risk of death) and morbidity (risk of associated complications). They can be rapidly identified by having an electrocardiogram (EKG). The standards emphasize organizing regional systems of care and patient transfer procedures to provide faster access to advanced therapies that help facilitate rapid restoration of blood flow during a heart attack. The care team - from first responders and emergency departments to cardiologists and cath lab staff - collaborate to provide efficient and effective care. They evaluate the entire process and collaborate with anyone who has contact with this patient population to develop a standardized approach to efficiently get them to a cath lab. Every 30 minutes results in nearly an eight percent increase in risk of death, so patient outcomes are improved by having a systems approach to identification, notification, and rapid transfer. Several new processes have been developed, including: * Training EMS providers to identify STEMI patients quickly, and building relationships with emergency transporters to ensure efficient arrival at a center equipped to deal with STEMI patients. * Clinical members of Covenant Rapid Access, Covenant Health's patient transfer center, are available 24/7 to accept STEMI patients from outlying hospitals and immediately notify the cath lab team and interventional cardiologist. Rapid Access is the coordinating center for Covenant facilities. * Emergency transporters simultaneously notify both ED and cath lab teams of potential STEMI patients and transmit an EKG when available. This allows earlier activation of the cath lab team, with personnel available immediately when the patient arrives. * A regular review process provides feedback on outcomes and helps continually improve systems and processes. As a result of these efforts, Fort Sanders Regional Medical Center has exceeded state and national hospitals' performance in meeting standards for "First Medical Contact-to-Device" times. Mortality and readmission rates also declined. The STEMI team collaborates with hospitals and emergency responders in Claiborne, Sevier, and Jefferson counties, and as far away as Kentucky.
Form 990, Part III, Line 1	Cardiac Rehabilitation Helps Pave the Road to Recovery The weeks immediately following a heart attack, angioplasty, or open heart surgery are critical for long-range rehabilitation. Several Covenant hospitals offer medically supervised Cardio-Pulmonary Rehabilitation programs that safely restore physical fitness and function for people who have recently had serious cardiac events. Through monitored exercise, education, counseling and healthy lifestyle changes, patients regain confidence in exercising their hearts, and they learn to make lifestyle changes to reduce the risk of further complications from heart disease. Cardiac rehabilitation offers effective treatment for heart attack, angina, post-infarction, angioplasty, post-coronary bypass, and patients considered to be high risk for coronary artery disease. The Region's Only Stroke Hospital Network When a stroke happens, timely treatment is critical. The Covenant Health network is well above the national average in delivering advanced diagnostics and treatment to halt the devastating effects of stroke. At the hub of the network are Fort Sanders Regional Medical Center, certified as a comprehensive stroke center by The Joint Commission, and the award-winning Patricia Neal Rehabilitation Center, accredited by the Commission on the Accreditation of Rehabilitation Facilities. Reaching Across Time and Distance Thanks to Fort Sanders Regional Medical Center's "tele-stroke" robot, East Tennessee stroke patients benefit from early consultation with the hospital's stroke experts, even if they are at a different hospital location. 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 neurologists to be available to patients in outlying areas 24 hours a day. Covenant Health has stationed robots in the emergency departments at Parkwest Medical Center in Knoxville, LeConte Medical Center in Sevierville and Morristown-Hamblen Hospital in Morristown. The telestroke network allows physicians in surrounding hospitals to use live Web video streaming to consult with 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. The interaction between neurologist and the patient via the robot helps the physician see facial expressions and get the patient to respond to the physician. Accurate, timely diagnosis is essential when stroke occurs. The clock starts with the onset of symptoms. As time ticks by, treatment options become more limited and patients can lose more and more functionality. With this tele-medicine tool, neurologists and specialists can advise surrounding emergency departments how to best treat their stroke patients or to have them transported to Fort Sanders Regional for advanced care. Rehabilitation After Stroke While prompt medical care can stop or minimize the effects of stroke, rehabilitation after a "brain attack" can help a patient recover abilities and reconnect with loved ones. At the Patricia Neal Rehabilitation Center, stroke patients are treated with a holistic team approach including the patient and family members. Physical Medicine and Rehabilitation physicians, physical therapists, occupational therapists, speech-language pathologists, rehab psychologists (behavioral medicine), nursing staff, case managers and recreation therapists make up the treatment team. Treatment is an active process with both patient and family involved in goal setting, therapy and education. Therapies include psychological and leisure/recreation evaluations, and training in range of motion, strengthening and conditioning exercises, self-care and daily living skills, and speech, language and swallowing. Other aspects include identification and management of risk factors to help prevent future strokes. The Patricia Neal Rehabilitation Center has received multiple awards including five top-honor Crystal Awards from Professional Research Consultants for overall patient satisfaction along with accolades for innovation, quality of care and successful outcomes. Leading the Fight Against Cancer Even though cancer affects many thousands of people, a cancer diagnosis can be a lonely experience. Covenant Health is committed to helping cancer patients fight the disease with excellent medical care and a multidisciplinary team of support. At the core of Covenant Health's cancer care is an elite team of physicians, armed with the most advanced cancer fighting tools available. Technology includes advanced imaging such as positron emission technology (PET) in Knoxville and mobile PET services in Sevierville, high-dose-rate brachytherapy and 3D radiation therapy. Fort Sanders Regional Medical Center offers Gamma Knife, a non-invasive radiosurgical device that targets tumors in a single visit. A variety of clinical trials, stem cell transplantation and genetic counseling are also available. Patients receiving cancer care at Covenant Health facilities receive individualized treatment plans, and have a multidisciplinary team of specialists and "navigators" to help with the treatment process. Support is also provided by social workers, nutrition counselors and other members of the cancer care team. The health system invested $7.6 million for equipment upgrades, expanded connectivity and growth of a highly regarded radiation therapy research program at six locations: Thompson Cancer Survival Centers in downtown and west Knoxville, Oak Ridge and Sevierville, at Morristown Regional Cancer Center, and at Cumberland Medical Center's radiation oncology program in Crossville. Thompson Oncology Group has 8 physician offices in 7 different counties. The group has been recognized by the Quality Oncology Practice Initiative Certification Program, an affiliate of the American Society of Clinical Oncology. The certification process includes each of the 8 Thompson Oncology Group locations and entails evaluation of treatment planning, staff training, patient education and safe chemotherapy administration.
Form 990, Part III, Line 1	Connecting with Our Communities In addition to taking care of patients and families who receive direct services, Covenant Health is committed to making a positive impact in the health of the surrounding community. 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 March 2015 Covenant Health sponsored the Knoxville Marathon for the 11th year in a row. The race attracted over 7,750 people who competed in full and half marathons, a 5K, relays, hand cycling and push-rim wheelchair races. * Some of the funds raised through the Covenant Health Knoxville Marathon were contributed to Patricia Neal Rehabilitation Center's Innovative Recreation Cooperative (IRC). More than $5,000 was given to the IRC by a collaboration of groups and individuals who help disabled persons enjoy leisure/recreation activities such as skiing and cycling. * The Covenant Health Biggest Winner Weight Loss Challenge continued as a friendly competition that encourages East Tennesseans to get moving for a fit and healthy lifestyle. Team members trained together for five months, with the goal of crossing the finish line in Covenant Health Knoxville Marathon events, and challenging other East Tennesseans to change their lives for the better. * The Covenant Kids Run attracted nearly 1,000 children who participated in a "marathon of activities" over a period of several weeks, culminating in a run to Neyland Stadium the day before the Covenant Health Knoxville Marathon. * Covenant HomeCare Hospice helps children grieving the loss of a loved one through Katerpillar Kids Camp, a free event offered with the support of Variety - The Children's Charity. The camp helps children in grades 1-12 express their feelings of loss in a supportive environment. * Methodist Medical Center co-sponsored the third annual Baby's Best Fest, a day of family games and an ice cream social celebrating World Breastfeeding Month and supporting breastfeeding as the healthiest start for babies. * LeConte Medical Center partnered with Dollywood's Splash Country for the second year to host Water Safety Day. The day was held in conjunction with the "World's Largest Swimming Lesson," a national event promoting the importance of learning to swim. LeConte employees educated children about water safety; representatives from Thompson Cancer Survival Center talked about the need for sunscreen; and staff from the Patricia Neal Rehabilitation Center presented the Think First head and spinal cord injury prevention program and adaptive water sports. More than 600 children participated. * Cumberland Medical Center in Crossville co-sponsored numerous health fairs and community events throughout the year, and hosted free Mammogram Days for women who met specific screening criteria and did not have insurance coverage. * Parkwest Medical Center, LeConte Medical Center and Thompson Cancer Survival Center co-sponsored hiking programs led by Missy Kane, an Olympic Medalist from Tennessee and fitness expert. Missy led hikes in communities where Covenant Health hospitals are located and established walking clubs in Roane and Anderson counties in conjunction with Roane Medical Center and Methodist Medical Center.
Form 990, Part VI, Section B, line 11	Covenant Health is a large integrated health system which files fourteen Forms 990. Fort Sanders Regional Medical Center is one of these fourteen entities. Annually, at the September Finance Committee meeting, one of the fourteen 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 thirteen 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 fourteen Forms 990 are then made available to all board members for their review throughout the month of October.
Form 990, Part VI, Section B, line 12c	Board members, officers and employees are required to adhere to rules and policies regarding conflicts of interest. Covenant Health, the parent company of the organization, distributes a board-approved 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 within the corporate bylaws, and board members are required to complete and sign a conflict of interest questionnaire on an annual basis. The Integrity Compliance Office maintains records that contain conflict of interest information obtained from board members, officers and employees. These records are available to be queried prior to engaging in business transactions. The Integrity Compliance Officer initially reviews all conflict of interest data. Based on this information, the officer determines what conflicts of interest exist at that point in time. Between times when surveys are collected board members are expected to disclose any new conflicts that have arisen that affect pending board decisions. As well, managers and other employees are expected to report conflicts to the Integrity Compliance Officer as they arise. Depending on the nature of the conflict and the circumstances surrounding the conflict and transaction, the Integrity Compliance Officer, Senior Leadership, or the Board of Directors may review the conflict of interest. Where appropriate these bodies may also consult legal counsel. Restrictions imposed on persons with a conflict of interest are determined on a case by case basis. For Covenant Health employees, the Integrity Compliance Officer in conjunction with Executive Leadership determines how to appropriately handle the conflict. In any conflict involving a board member, such member is expected to excuse himself or herself from voting on matters that give rise to the conflict.
Form 990, Part VI, Section B, line 15	Form 990, Part VI, Section B, Line 15a: Overall compensation policies for Fort Sanders Regional Medical Center, Covenant Health (Parent Company), and affiliates are set by the Compensation Committee of the Board of Directors ("the Committee"), which is comprised of independent members of the board. The Committee is guided in its decision-making process by an independent, nationally-recognized executive compensation consultant experienced in advising nonprofit hospital boards. Compensation policies for Anthony Spezia and John Geppi are reported on the 2015 Form 990 of Covenant Health, EIN 62-1646734. Form 990, Part VI, Section B, Line 15b: Base salary and annual bonus opportunities for Keith Altshuler, President and Chief Administrative Officer, are set by the Covenant Health CEO in consultation with the Senior 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 ensure that total compensation is reasonable and within a fair market value range. Salary ranges are based upon the recommendations of the Consultant made after comparison with similar jobs in similar size health systems across the nation. Bonuses are recommended by the CEO and approved by the Committee conditioned upon receipt of a written opinion from the Consultant that total compensation for the executive is reasonable and consistent with fair market value. Base salary is initially targeted at midpoint and may vary according to market conditions, performance, tenure, experience, special skills or qualifications, recruitment and retention challenges, and other relevant factors. Annual bonuses are designed to award 0-35% of base salary based upon system performance and accomplishment of certain targets established by the CEO. Base salaries and annual bonus opportunities for Ronnie Beeler, Vice President of Financial Services, and Kelly Miles, Vice President and Chief Nursing Officer, are based on targets established by an independent, nationally-recognized executive compensation consultant to ensure that total compensation for each executive is reasonable and within a fair market value range. Salary ranges are based upon comparison with similar jobs in similar size health systems across the nation. Base salaries and bonuses are approved by Executive Leadership predicated upon performance, and are reasonable and consistent with fair market value. Base salaries are initially targeted at midpoint and may vary according to market conditions, performance, tenure, experience, special skills or qualifications, recruitment and retention challenges, and other relevant factors. Annual bonuses are designed to award 0-20% of base salary based upon system performance and accomplishment of certain targets established by Executive Leadership.
Form 990, Part VI, Section C, line 19	Fort Sanders Regional Medical Center files a Joint Annual Report containing financial information with the Tennessee Department of Health. Per its tax-exempt bond provisions, Covenant Health, the parent company of the organization, is required to file quarterly and annual consolidated and obligated group financial statements and other documentation with various bond insurers and other agencies, including the Electronic Municipal Market Access (EMMA) service of the Municipal Securities Rulemaking Board (MSRB). Any member of such a repository has access to these financial statements. The organization's governing documents and conflict of interest policy are not made publicly available.
Form 990, Part VI, Section A, Line 9:	Contact Addresses for Officers, Directors, Etc. Anthony L. Spezia Covenant Health 100 Fort Sanders West Blvd. Knoxville, TN 37922 John T. Geppi, Larry Mauldin, and all Directors Covenant Health 1420 Centerpoint Blvd., Bldg. C Knoxville, TN 37932 Jenny Hanson LeConte Medical Center 742 Middle Creek Road Sevierville, TN 37862 All other persons listed in Part VII, Section A may be contacted at the organization's address, which is: Fort Sanders Regional Medical Center 1901 Clinch Avenue Knoxville, TN 37916
Form 990, Part XI, line 9:	Intracompany eliminations 37,470.
Form 990, Part XII, Line 2c:	The Audit Committee of the Board of Directors annually selects the external auditors for Covenant Health. There is a joint meeting of the Finance Committee and Audit Committee of the Board of Directors where the audit of the consolidated financial statements are presented.

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

Cat. No. 51056K

Schedule O (Form 990 or 990-EZ) 2015

Additional Data

Software ID:
Software Version:

- TIN:

SCHEDULE R
(Form 990)

Department of the Treasury
Internal Revenue Service

Related Organizations and Unrelated Partnerships

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

Attach to Form 990.
MediumBullet

Information about Schedule R (Form 990) and its instructions is at www.irs.gov/form990.

OMB No. 1545-0047

2015

Open to Public Inspection

Name of the organization

Fort Sanders Regional Medical Center

Employer identification number

62-0528340

Part I

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

(a) Name, address, and EIN (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" on Form 990, Part IV, line 34 because it had one or more related tax-exempt organizations during the tax year.

(a) Name, address, and EIN of related organization	(b) Primary activity	(c) Legal domicile (state or foreign country)	(d) Exempt Code section	(e) Public charity status (if section 501(c)(3))	(f) Direct controlling entity	(g) Section 512(b)(13) controlled entity?
(a) Name, address, and EIN of related organization	(b) Primary activity	(c) Legal domicile (state or foreign country)	(d) Exempt Code section	(e) Public charity status (if section 501(c)(3))	(f) Direct controlling entity	Yes	No
(1)Covenant Health 1420 Centerpoint Blvd Bldg C Knoxville,TN379321960 62-1646734	Supporting organization	TN	501(c)(3)	Line 11b, II	N/A		No
(2)Parkwest Medical Center 9352 Park West Blvd Knoxville,TN37923 58-1897274	Acute care hospital and 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 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 Center 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 Ave Knoxville,TN37916 62-1250943	Cancer support center	TN	501(c)(3)	Line 3	Covenant Health		No
(8)Thompson Oncology Group 1915 White Ave Knoxville,TN37916 62-1619239	Oncology services	TN	501(c)(3)	Line 3	Thompson Cancer Survival Center		No
(9)Covenant Homecare 3001 Lake Brook Blvd Ste 101 Knoxville,TN37909 62-1623114	Home health services	TN	501(c)(3)	Line 9	Covenant Health		No
(10)Fort Sanders Perinatal Center Trustees Tower 501 19th St Ste 304 Knoxville,TN37916 04-3760551	High risk obstetrical services	TN	501(c)(3)	Line 3	Fort Sanders Regional Medical Center	Yes
(11)Fort Sanders Foundation 280 Fort Sanders West Blvd Ste 202 Knoxville,TN37922 62-1748601	Fundraising and patient outreach	TN	501(c)(3)	Line 11b, II	Covenant Health		No
(12)Morristown-Hamblen Hospital Association 908 W 4th N 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 Ave Knoxville,TN37916 58-2130450	Fundraising and patient outreach	TN	501(c)(3)	Line 11b, II	Covenant Health		No
(14)Cumberland Medical Center 421 S Main St Crossville,TN385555048 62-0790132	Acute care hospital	TN	501(c)(3)	Line 3	Covenant Health		No
(15)Claiborne Medical Center 1850 Old Knoxville Rd Tazewell,TN378793625 46-4420358	Acute care hospital	TN	501(c)(3)	Line 3	Covenant Health		No

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

Cat. No. 50135Y

Schedule R (Form 990) 2015

Page 2

Part III

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

(a) Name, address, and EIN of related organization	(b) Primary activity	(c) Legal domicile (state or foreign country)	(d) Direct controlling entity	(f) Share of total income	(g) Share of end-of-year assets	(h) Disproprtionate allocations?		(i) Code V-UBI amount in box 20 of Schedule K-1 (Form 1065)	(j) General or managing partner?
(a) Name, address, and EIN of related organization	(b) Primary activity	(c) Legal domicile (state or foreign country)	(d) Direct controlling entity	(f) Share of total income	(g) Share of end-of-year assets	Yes	No	(i) Code V-UBI amount in box 20 of Schedule K-1 (Form 1065)	Yes	No
(1) Fort Sanders West OP Surgery Center LLC 210 Fort Sanders West Blvd Ste 200 Knoxville,TN37922 62-1366907	Outpatient surgery center	TN	N/A
(2) Fort Sanders West Associates 280 Fort Sanders West Blvd Ste 214 Knoxville,TN37922 62-1384171	Building ownership	TN	N/A
(3) KOSC Properties LLC 256 Fort Sanders West Blvd Ste 200 Knoxville,TN37922 26-2444076	Building ownership	TN	N/A
(4) Knoxville Orthopaedic Surgery Center LLC 256 Fort Sanders West Blvd Ste 200 Knoxville,TN37922 26-2437385	Orthopaedic surgery	TN	N/A
(5) KOC 260 Bldg LLC 260 Fort Sanders West Blvd Knoxville,TN37922 46-5228440	Land and building ownership	TN	N/A
(6) Endoscopy Center of Oak Ridge LLC 988 Oak Ridge Turnpike Ste 200 Oak Ridge,TN378306919 62-1667358	Outpatient medical facility	TN	N/A

Part IV

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

(a) Name, address, and EIN of related organization	(b) Primary activity	(c) Legal domicile (state or foreign country)	(d) Direct controlling entity	(e) Type of entity (C corp, S corp, or trust)	(f) Share of total income	(g) Share of end-of-year assets	(i) Section 512(b)(13) controlled entity?
(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	Yes	No
(1) Fortress Corporation 280 Ft Sanders West Blvd Ste 214 Knoxville,TN37922 62-1308885	Management company	TN	N/A	C				No
(2) Covenant Medical Group Inc 1400 Centerpoint Blvd Ste 100 Bldg Knoxville,TN37932 62-1282917	Physician practice management	TN	N/A	C			Yes
(3) Knoxville Heart Group 1819 Clinch Ave Ste 108 Knoxville,TN37916 27-1528941	Cardiology medical practice	TN	N/A	C				No
(4) East TN Cardiovascular Surgery Group Inc 9125 Cross Park Drive Ste 200 Knoxville,TN37923 62-1018541	Cardiovascular surgical practice	TN	N/A	C			Yes

Schedule R (Form 990) 2015

Page 3

Part V

Transactions With Related Organizations Complete if the organization answered "Yes" on 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

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 .....................

Yes

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

Yes

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

Yes

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

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

f Dividends from related organization(s) ............................

g Sale of assets to related organization(s) ............................

h Purchase of assets from related organization(s) ............................

i Exchange of assets with related organization(s) ............................

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

Yes

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

Yes

l Performance of services or membership or fundraising solicitations for related organization(s) .....................

Yes

m Performance of services or membership or fundraising solicitations by related organization(s) .................

Yes

n Sharing of facilities, equipment, mailing lists, or other assets with related organization(s) ...................

Yes

o Sharing of paid employees with related organization(s) ............................

Yes

p Reimbursement paid to related organization(s) for expenses ............................

Yes

q Reimbursement paid by related organization(s) for expenses ............................

Yes

r Other transfer of cash or property to related organization(s) ............................

Yes

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

Yes

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

(a) Name of related organization	(b) Transaction type (a-s)	(c) Amount involved	(d) Method of determining amount involved
(1) Fort Sanders Perinatal Center	A	376,156	FMV
(2) Fort Sanders Perinatal Center	J	276,731	Cost
(3) Fort Sanders Perinatal Center	L	112,766	Cost
(4) Fort Sanders Perinatal Center	Q	95,530	Cost
(5) Covenant Medical Group Inc	A	255,229	FMV
(6) Knoxville Heart Group	A	190,845	FMV

Schedule R (Form 990) 2015

Page 4

Part VI

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

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

(a) Name, address, and EIN of entity	(b) Primary activity	(c) Legal domicile (state or foreign country)	(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?
(a) Name, address, and EIN of entity	(b) Primary activity	(c) Legal domicile (state or foreign country)	Yes	No	(f) Share of total income	(g) Share of end-of-year assets	Yes	No	(i) Code V-UBI amount in box 20 of Schedule K-1 (Form 1065)	Yes	No

Schedule R (Form 990) 2015

Page 5

Part VII

Supplemental Information

Provide additional information for responses to questions on Schedule R (see instructions).

Return Reference	Explanation

Schedule R (Form 990) 2015

Additional Data

Software ID:
Software Version:

1	Briefly describe the organization’s mission or most significant activities: See Schedule O. Fort Sanders Regional Medical Center (FSRMC) provides quality hospital and other health services in the Knoxville metro area. FSRMC is located in the Fort Sanders community of downtown Knoxville, Tennessee, and is a member of the Covenant Health system. It serves as a regional referral center, where other hospitals send their most difficult cases. Fort Sanders Regional includes a full-service acute care hospital with 517 beds serving many specialty areas, the 24-bed Fort Sanders Transitional Care Unit, the Patricia Neal Rehabilitation Center, and specialized outpatient centers. In early 2011, Fort Sanders Regional opened its Gamma Knife Center, which houses the first advanced system in Tennessee and is one of only two located in the state of Tennessee.
2	Check this box
3	Number of voting members of the governing body (Part VI, line 1a) ........	3	23
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 2015 (Part V, line 2a) ......	5	2,142
6	Total number of volunteers (estimate if necessary) .............	6	243
7a	Total unrelated business revenue from Part VIII, column (C), line 12 ........	7a	1,906,372
b	Net unrelated business taxable income from Form 990-T, line 34 .........	7b	217,799

		Prior Year	Current Year
8	Contributions and grants (Part VIII, line 1h) .........	390,018	335,776
9	Program service revenue (Part VIII, line 2g) .........	344,448,703	339,503,085
10	Investment income (Part VIII, column (A), lines 3, 4, and 7d ) ....	18,085	14,514
11	Other revenue (Part VIII, column (A), lines 5, 6d, 8c, 9c, 10c, and 11e)	6,578,367	4,729,655
12	Total revenue—add lines 8 through 11 (must equal Part VIII, column (A), line 12)	351,435,173	344,583,030
13	Grants and similar amounts paid (Part IX, column (A), lines 1–3 )...	144,454	133,281
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)	90,683,444	92,323,665
16a	Professional fundraising fees (Part IX, column (A), line 11e) .....	0	0
b	Total fundraising expenses (Part IX, column (D), line 25) 0
17	Other expenses (Part IX, column (A), lines 11a–11d, 11f–24e)....	228,453,487	232,176,761
18	Total expenses. Add lines 13–17 (must equal Part IX, column (A), line 25)	319,281,385	324,633,707
19	Revenue less expenses. Subtract line 18 from line 12.......	32,153,788	19,949,323
		Beginning of Current Year	End of Year
20	Total assets (Part X, line 16).............	226,764,889	245,894,926
21	Total liabilities (Part X, line 26).............	28,239,619	27,382,863
22	Net assets or fund balances. Subtract line 21 from line 20.....	198,525,270	218,512,063

Sign Here

	Signature of officer	Date

	Type or print name and title


4a	(Code: ) (Expenses $ 62,384,938 including grants of $ ) (Revenue $ 56,729,863 )
	Orthopedics, Neurology and Rehabilitation:The Ortho/Neuro/Rehab program at Fort Sanders Regional Medical Center is a comprehensive program of inpatient and outpatient services designed to restore optimal function and independence to individuals who are impaired due to orthopedic or neurological illness or injury. More information about these services is on Schedule O.Orthopedics, Neurology and Rehabilitation: Expenses - $62,384,938; Revenue - $56,729,863From hip, knee and shoulder replacement to other commonly performed orthopedic procedures like hand, foot and ankle and spine and back surgery, Fort Sanders Regional (FSR) possesses a commitment to service excellence and to improving the patient experience in every way. These commitments are reflected in the comprehensive care provided orthopedic surgery patients, including:* In-depth education that fully prepares patients for surgery and recovery;* Infection prevention protocols that minimize infection risks;* Experienced, specialized surgeons and operating room teams that use state-of-the-art techniques;* A dedicated inpatient orthopedic nursing unit staffed by expert nurses and caregivers who know how to help patients recover from orthopedic surgery; and* A wide array of rehabilitation and therapy services, inpatient and outpatient, to help patients return to an active lifestyle.At the FSR Joint and Spine Center, patients undergoing knee or hip replacement surgeries are not treated as "sick" but as healthy adults undergoing a procedure that will allow them to return to an active life. The goal is to get patients out of bed and moving as quickly as possible. This is accomplished through education, surgical expertise and intense physical therapy. Patients are provided information about joint replacement and are challenged to take the lead in their recovery. Patients go through the program with a family member, who is designated as the patient's "Coach and is taught how to assist the patient at home.Outpatient rehabilitation services are provided on the hospital campus and at a network of community based outpatient therapy centers. These centers offer a wide variety of therapy services, many of which are unique in the community. They include: * Physical, occupational and speech therapy, * Wound care, * Aquatic therapy, * Lymphedema treatment, * Low-vision and adaptive driving programs, * Certified hand therapy, * Vestibular rehabilitation, and * Functional capacity evaluations.In 2015 the hospital recorded 7,316 Wound Care Center patient visits and 84,046 Outpatient Physical Therapy visits.Conditions and diseases of the brain, spinal cord and nervous system can affect how people walk, talk, comprehend and function. FSR's neurologists specialize in the diagnosis and treatment of epilepsy, tumors, stroke, Alzheimer's disease, dementia, Parkinson's disease and multiple sclerosis. As a Neuro-Spine Center of Excellence, FSR has made the commitment to offer the latest advancements in neurology, neurosurgery, spine surgery, and neuro-interventional radiology. Whether a patient needs medical, surgical or neuro-radiological intervention, the goal is to provide the most appropriate care to optimize patient outcome. In 2015 there were 217 Interventional neuro-radiology cases - made up of 44 Aneurysm coilings, 57 IVC Filter placements, and 126 stroke treatments.At the Fort Sanders Sleep Disorders Center, the area's first accredited sleep center, neurologists work with patients who suffer from a host of sleep/wake disorders including sleep apnea, insomnia, narcolepsy, and restless leg syndrome. The Center treated 575 patients in 2015.Fort Sanders' neurosurgeons provide surgical intervention for brain tumors, aneurysms and hemorrhages, as well as a host of spine conditions. They also provide surgical relief for issues caused by nerve and muscle diseases, carpal tunnel syndrome, chronic back pain and conditions resistant to medical management, like Parkinson's disease.The StealthStation Treon is an example of the hospital's commitment to state-of-the-art technology, which helps guide FSR's neurosurgeons through a variety of operations, including neurological and spinal procedures. This innovative 3D-imaging system uses global positioning technology to give physicians real time views inside the body, without radiation. The technology allows less invasive operations and helps avoid brain and nerve damage.Strokes are the third leading cause of death in the United States and affect more than 795,000 Americans each year. As a Stroke Center of Excellence, FSR and Patricia Neal Rehabilitation Center physicians and staff utilize state-of-the-art diagnostic, treatment and rehabilitation modalities. The hospital holds a Comprehensive Stroke Center certification from the Joint Commission (one of only 5 in the state) as well three separate stroke accreditations from the Commission on the Accreditation of Rehabilitation Facilities (CARF). In 2015, FSR's aggregate score related to strokes was 99.1%, and it had 654 Ischemic and 96 Hemorrhagic stroke patient admissions.FSR was the first facility in the area to combine CT and bi-plane angiography with a full-time neuro-interventional radiologist to provide our region with new, minimally-invasive options for treating stroke, aneurysms, and other vascular diseases in the brain. With this system, neuro-interventional radiology procedures can be performed that would have previously required surgery and an extended hospital stay or would not have been options for some patients.Bi-plane technology improves imaging and resolution creating comprehensive 3D views of the blood vessels in the brain. Having a more precise picture of an abnormality makes it easier to diagnose and repair. A team of specialized technologists and nurses work to assist the performing radiologist with each procedure. All technologists are certified by the American Association of Radiological Technologists. These procedures often involve very short hospital stays, all while keeping radiation exposure to a safe minimum and avoiding major surgery.The Patricia Neal Rehabilitation Center (PNRC) is East Tennessee's recognized leader in helping stroke, spinal cord, brain injury, orthopedic and cancer patients rebuild their lives through the delivery of optimal rehabilitation services. Opened in 1978 as an integral part of the Ortho/Neuro/Rehab program at FSR, the PNRC offers a comprehensive team approach to care. Physical, occupational, recreational, behavioral medicine and speech language therapists work with nurses and physiatrists - doctors whose specialty is physical medicine and rehabilitation. This team develops the best individual care plan to return patients to their recovery potential as quickly as possible. Rehabilitation nurses and other specialists also educate patients, teaching them self-care skills to function as well as possible upon returning home. The Center holds 10 separate accreditations from the Commission on the Accreditation of Rehabilitation Facilities (CARF) and provides a comprehensive array of inpatient rehabilitation services that would otherwise be unavailable in the community.FSR is committed to maintaining access to unique services such as those at the PNRC. Through donations and other community support, the hospital, through the Fort Sanders Foundation, provides scholarships to allow patients with limited resources access to the rehab center's services.The Patricia Neal Innovative Recreation Cooperative (IRC) was created in 1994 to meet the needs of individuals who have suffered a life-changing illness or injury. The program was designed to be part of the continuum of care in the rehabilitation process. Its scope is to host clinics under an umbrella of education and awareness: education to teach leisure skills to enhance quality of life in a safe environment and awareness to heighten the understanding of disabilities in the community. In its existence, the IRC has seen over 7,000 participants and volunteers. The goal is to remove all the barriers to develop each individual's right to self-directed leisure for a healthier lifestyle. This program is supported by community donations, grants and a hospital subsidy.Older adults are a significant portion of the patient population in Ortho/Neuro/Rehab. FSR is committed to special health care for older adults and was the first NICHE-certified (Nurses Improving Care for Health System Elders) facility in the East Tennessee region. Care is provided to help prevent complications such as skin breakdowns, falls/injuries, pain, acute confusion, and the loss of strength and mobility.

4b	(Code: ) (Expenses $ 51,153,789 including grants of $ ) (Revenue $ 65,691,708 )
	Oncology Services: Fort Sanders Regional Medical Center features extensive inpatient and outpatient oncology care provided by exceptional oncologists who practice throughout the Knoxville area. In 2015 Fort Sanders Regional Medical Center had 1,484 admissions to the oncology unit with 8,890 patient days. More information about oncology services is on Schedule O.Oncology Services: Expenses - $51,153,789; Revenue - $65,691,708The Oncology Center of Excellence at Fort Sanders Regional offers a comprehensive approach to patient care which minimizes patient disruption and maximizes clinical quality and efficiency. Safety is the number one priority in the Oncology Center of Excellence. Due to the nature and potency of the medications used in this area, strict safety processes are performed by doctors, pharmacists and certified nurses who work as a team to double and triple check these medications for accuracy. Chemotherapy-trained nurses work with oncologists to make sure each patient receives the correct chemotherapy drug, in the right dosage cycle, every time. Within the Oncology Center of Excellence, many of the nurses are oncology certified at a national level. Staff attends special lectures and conferences hosted by local and national medical oncologists and radiation oncologists to keep up with the newest innovative treatments available.Each staff member on the oncology unit is uniquely trained in the care of cancer patients. The oncology team includes a dedicated oncologic pharmacist, dietitian, social worker, and RN case manager. This team communicates regularly to ensure excellent patient care from admission to discharge. From dietitians, to pharmacists and radiologists, to housekeeping staff, Fort Sanders has done a lot of work to provide oncology education to every employee who may come in contact with patients. By completing this 360-degree education, Fort Sanders provides better patient care. The Oncology Center of Excellence at Fort Sanders Regional holds the prestigious Certificate of Approval from the Commission on Cancer. The Commission on Cancer Certification is awarded only to facilities with oncology programs committed to providing the best comprehensive cancer care. The Oncology Nursing Unit serves as the inpatient component of the accredited Stem Cell Center based at the Thompson Cancer Survival Center. This Stem Cell treatment center in conjunction with our Oncology Nursing Unit has accomplished accreditation by the Foundation of Accreditation for Cellular Therapy, also known as FACT.Surgical oncology focuses on the surgical management of cancer. The medical staff at Fort Sanders Regional Medical Center includes general surgical oncologists as well as thoracic surgical oncologists, gynecologic oncologists and other sub-specialists that specialize in treating cancer patients. Outcomes in surgical cancer care are positively associated to surgeon volume -- i.e. the more cancer cases a surgeon treats, the more proficient the surgeon becomes, thus improving overall outcomes and survival rates. In 2015 FSR had 467 surgical oncology cases.Due to the close proximity of Fort Sanders Regional Medical Center to Thompson Cancer Survival Center, the surgeons and staff at Fort Sanders Regional work closely with the cancer center's multidisciplinary treatment teams in the collaboration of care and treatment plans for patients with chest and breast cancer. A team of cancer specialists in differing areas of expertise, including surgeons, gather and evaluate each patient's case to determine possible treatment options. Each specialist then meets individually with the patient to go over treatment choices and answer questions. As part of outpatient Oncology care, Fort Sanders Regional has five outpatient Infusion Centers in the area providing many of the chemotherapy medications for cancer patients. There were 62,766 infusion visits to the infusion centers in 2015.Fort Sanders Regional Medical Center, through the Patricia Neal Rehabilitation Center is the only place in East Tennessee, and one of a handful in the country that offer a cancer rehabilitation program. The cancer program combines many of the rehabilitation techniques currently used for patients with brain and spinal cord injuries and strokes because the impairments cancer patients experience can be very similar to those of traumatic injuries. The health-care team includes:* Each patient's personal physician * Medical, radiation and surgical oncologists * Physiatrists doctors whose specialty is physical medicine and rehabilitation * Rehabilitation nurses * Physical, occupational and recreational therapists * Psychologists * Speech language pathologists * Pharmacists * Dietitians * Case managers At Patricia Neal, the cancer rehab team creates a special care plan for each patient with the goal of helping patients regain as much ability and independence as possible. The center treats many of the impairments that can result from cancer, cancer surgery, radiation therapy, chemotherapy and other treatments, such as:* Fatigue * Muscle wasting * Weakness * Pain * Skin breakdown * Impaired mobility * Anxiety * Depression * Adjustment problems * Overall deconditioning * Lymphedema swelling * Weight loss * Communication difficulty * Impaired thinking or memory loss Patricia Neal has a positive, encouraging atmosphere and is known for outstanding resources, from a rooftop therapy park to a computer life-skills lab. The center also offers:* Fully-equipped therapy gyms * Special adaptive equipment programs * Animal therapy * Support groups * Community outings * Family and caregiver training * Tools to improve communication * Adaptive driving programs* Balance programs * An adaptive living apartment to ease the transition back to everyday life

4c	(Code: ) (Expenses $ 30,977,226 including grants of $ ) (Revenue $ 31,431,426 )
	Cardiovascular Services:From diagnosis to rehabilitation, Fort Sanders Regional's award-winning Heart Center has one of the most comprehensive cardiac services available. Our advanced diagnostics, interventional technologies, cardiovascular surgery, and clinical trials are tailored to meet each patient's cardiac needs. Fort Sanders Regional's program is designed to help patients regain their strength and stamina. In 2015 the hospital recorded 1,288 admissions to the Cardiology unit with 5,908 patient days. More information about cardiology services is on Schedule O. Cardiovascular Services: Expenses - $30,977,226; Revenue - $31,431,426Fort Sanders Regional Medical Center's Cardiology department is the recipient of the 2014 American College of Cardiology Foundation's NCDR ACTION Registry - 2014 GWTG Platinum Performance Achievement Award. The award recognizes the hospital's commitment and success in implementing a higher standard of care for heart attack patients. Honored hospitals have maintained a rate of performance of 90% or better for eight consecutive quarters, ending quarter four in 2013. The Joint Commission named Fort Sanders Regional Medical Center one of the nation's Top Performers on Key Quality Measures. Fort Sanders Regional Medical Center is one of three "valve centers" in the Covenant Health system, allowing the most complex cardiovascular problems to be treated locally. Covenant Health is also the first health system in East Tennessee and only one of 10 in the entire state to offer TAVR, a breakthrough procedure for replacing heart valves. State-of-the-Art Cardiac DiagnosticsThere were 40,771 cardiac diagnostic procedures performed at Fort Sanders Regional Medical Center's Cardiology Department in 2015.A fast, accurate diagnosis of a heart condition significantly improves a patient's chance for recovery after a heart attack. State-of-the-art diagnostic tools available at Fort Sanders Regional include:* The area's first Lightspeed 64-slice VCT Scanner captures an incredibly precise image of the heart in just five heartbeats. * Vivid 7 echocardiography uses ultrasound to produce a moving cardiac image in real time. * Nuclear stress tests find difficult-to-detect problems in the heart's outer covering. * Electrocardiograms provide reliable diagnostics and stress tests performed right in the hospital assure immediate care if a problem is discovered. The Latest MedicinesPhysicians at Fort Sanders Regional participate in clinical trials of new medicines for a wide range of heart conditions. Three potentially life-saving medicines for unstable angina and heart attacks are currently being tested. A new trial is investigating a drug to prevent heart attacks and strokes in acute coronary syndrome patients. Minimally-Invasive TreatmentGreat strides have been made in minimally-invasive procedures for heart-related issues. Minimally-invasive procedures allow physicians to implant valves and repair holes in the heart wall without a major incision.* The new Innova 2100-IQ all-digital cath lab gives cardiologists unprecedented image clarity to better view hard-to-see blood vessels, with less radiation exposure for patients and physicians. * Radio frequency ablation controls rapid heartbeats with radio waves. * Drug-eluting stents open blocked arteries and help prevent a recurrence of the blockage. Cardiovascular SurgeryCardiovascular surgery includes surgical procedures to correct abnormalities within the heart and/or great vessels. The hospital recorded 337 cardiology surgical cases in 2015. Some of the more common procedures are Coronary Artery Bypass Grafting, commonly known as CABG, which is a treatment option for clogged arteries; valve repair or replacement; and correction of congenital heart defects and repair of aortic aneurysms.Robotically-Assisted Surgery - The da Vinci robotics system gives surgeons the capability to perform select heart procedures without opening the patient's chest and patients usually experience fewer side effects and faster recovery times. Cardiac Rehabilitation - Heart patients often need to strengthen weakened heart muscles and learn heart-healthy practices. Fort Sanders Regional's complete Cardiac Rehabilitation Outpatient Program (CROP) combines education, exercise, counseling, and more to help heart patients regain their functional capacity and reduce the possibility of future heart problems. In 2015 there were 13,706 cardiac rehabilitation visits recorded.Information for Heart Failure Patients - Fort Sanders Regional has developed a resource booklet for patients who are being treated for heart failure. This booklet includes details about heart failure, how it is diagnosed and treated, and lifestyle information for those seeking to be as healthy and active as possible while dealing with heart failure. The booklet also contains tracking sheets to record information that will be helpful for you and your healthcare provider, as well as a list of related resources and services within Covenant Health.

	(Code: ) (Expenses $ 172,619,954 including grants of $ 133,281 ) (Revenue $ 185,553,457 )
	As a full-service acute care hospital and regional referral center, Fort Sanders Regional Medical Center treats patients across a broad spectrum of medical specialties in addition to those highlighted above.

4d	Other program services (Describe in Schedule O.)
	(Expenses $ 172,619,954 including grants of $ 133,281 ) (Revenue $ 185,553,457 )
4e	Total program service expenses317,135,907

1b	Sub-Total................
c	Total from continuation sheets to Part VII, Section A....
d	Total (add lines 1b and 1c)...........	1,313,212	3,160,559	473,028

1a	Federated campaigns..		1a
b	Membership dues..		1b
c	Fundraising events..		1c
d	Related organizations		1d	250,692
e	Government grants (contributions)		1e	80,084

f	All other contributions, gifts, grants, and similar amounts not included above		1f	5,000

g	Noncash contributions included in lines 1a-1f:$ 10,942
h Total.Add lines 1a-1f.......		335,776

			Business Code
2a	Medical Services	622110	337,665,236	337,665,236
b	Laboratory	621500	1,134,947		1,134,947
c	Rental Inc - Exempt Affiliate	531120	702,902	702,902
d
e
f	All other program service revenue.
g Total.Add lines 2a–2f.....			339,503,085

3 Investment income (including dividends, interest, and othersimilar amounts) ..........			20,436			20,436
4 Income from investment of tax-exempt bond proceeds
5 Royalties...........
		(ii) Personal	(i) Real
6a	Gross rents	23,495	4,424,675
b	Less: rental expenses	23,495	4,220,002
c	Rental income or (loss)	0	204,673
d	Net rental income or (loss)......			204,673		-61,135	265,808
		(ii) Other	(i) Securities
7a	Gross amount from sales of assets other than inventory	400
b	Less: cost or other basis and sales expenses	6,322
c	Gain or (loss)	-5,922
d	Net gain or (loss).....			-5,922			-5,922
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..
9a	Gross income from gaming activities. See Part IV, line 19 ...
	a
b	Less: direct expenses ...b
c	Net income or (loss) from gaming activities..
10a	Gross sales of inventory, less returns and allowances ..
	a
b	Less: cost of goods sold ..b
c	Net income or (loss) from sales of inventory..
Business Code			Miscellaneous Revenue
11a	Food Services		722212	1,831,979			1,831,979
b	Steam & Oxygen		900099	826,558		826,558
c	Gift Shop		453220	640,851			640,851
d	All other revenue ....			1,225,594	1,038,316	6,002	181,276
e	Total. Add lines 11a–11d ......			4,524,982
12	Total revenue. See Instructions......			344,583,030	339,406,454	1,906,372	2,934,428

1	Grants and other assistance to domestic organizations and domestic governments. See Part IV, line 21	88,992	88,992
2	Grants and other assistance to individuals in the United States. See Part IV, line 22	44,289	44,289
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 ....	494,312		494,312
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	75,003,136	74,404,203	598,933
8	Pension plan accruals and contributions (include section 401(k) and 403(b) employer contributions) ....	2,297,416	2,277,910	19,506
9	Other employee benefits .......	8,760,903	8,679,802	81,101
10	Payroll taxes ...........	5,767,898	5,689,742	78,156
11	Fees for services (non-employees):
a	Management ......	22,873,530	21,967,111	906,419
b	Legal .........	156,916		156,916
c	Accounting ...........
d	Lobbying ...........
e	Professional fundraising services. See Part IV, line 17
f	Investment management fees ......
g	Other (If line 11g amount exceeds 10% of line 25, column (A) amount, list line 11g expenses on Schedule O)	21,398,296	21,160,002	238,294
12	Advertising and promotion ....	696,563	684,449	12,114
13	Office expenses .......	2,831,174	2,186,316	644,858
14	Information technology ......
15	Royalties ..
16	Occupancy ...........	7,783,448	5,505,033	2,278,415
17	Travel ............	44,092	42,244	1,848
18	Payments of travel or entertainment expenses for any federal, state, or local public officials .
19	Conferences, conventions, and meetings ....	261,713	225,677	36,036
20	Interest ...........	8,010	8,010
21	Payments to affiliates .......
22	Depreciation, depletion, and amortization ..	12,589,263	11,068,356	1,520,907
23	Insurance ...	666,340	657,049	9,291
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	13,417		13,417
b	Supplies & Equipment	96,713,251	96,624,454	88,797
c	Charity Care	33,170,135	33,170,135
d	Bad Debts	17,320,921	17,320,921
e	All other expenses	15,649,692	15,331,212	318,480
25	Total functional expenses. Add lines 1 through 24e	324,633,707	317,135,907	7,497,800	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 if following SOP 98-2 (ASC 958-720).

1	Cash–non-interest-bearing ........			5,678	1	6,083
2	Savings and temporary cash investments .........			-1,966,137	2	-1,604,118
3	Pledges and grants receivable, net ......				3
4	Accounts receivable, net .............			27,681,390	4	28,437,542
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 ....			44,555	7	0
8	Inventories for sale or use ........			5,677,145	8	6,922,270
9	Prepaid expenses and deferred charges ......			1,228,313	9	698,440
10a	Land, buildings, and equipment: cost or other basis. Complete Part VI of Schedule D	10a	407,510,830
b	Less: accumulated depreciation	10b	300,563,892	107,932,742	10c	106,946,938
11	Investments—publicly traded securities .				11
12	Investments—other securities. See Part IV, line 11 .....				12
13	Investments—program-related. See Part IV, line 11 ..				13
14	Intangible assets ...............				14
15	Other assets. See Part IV, line 11 ...........			86,161,203	15	104,487,771
16	Total assets. Add lines 1 through 15 (must equal line 34)...			226,764,889	16	245,894,926

17	Accounts payable and accrued expenses .....	24,347,150	17	23,382,847
18	Grants payable ...		18
19	Deferred revenue .........		19
20	Tax-exempt bond liabilities .........	1,059,901	20	0
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	243,787
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	2,832,568	25	3,756,229
26	Total liabilities. Add lines 17 through 25..	28,239,619	26	27,382,863

	Organizations that follow SFAS 117 (ASC 958), check here and complete lines 27 through 29, and lines 33 and 34.
27	Unrestricted net assets	198,525,270	27	218,512,063
28	Temporarily restricted net assets ...........		28
29	Permanently restricted net assets		29
	Organizations that do not follow SFAS 117 (ASC 958), check here and complete lines 30 through 34.
30	Capital stock or trust principal, or current funds .....		30
31	Paid-in or capital surplus, or land, building or equipment fund ...		31
32	Retained earnings, endowment, accumulated income, or other funds		32
33	Total net assets or fund balances ...........	198,525,270	33	218,512,063
34	Total liabilities and net assets/fund balances ........	226,764,889	34	245,894,926