2023-11-13T18:22:35-06:00 2022-12-31 990 2022-01-01 621114867 LeConte Medical Center LECO 8653743140 1420 Centerpoint Blvd Bldg C Knoxville TN 379321960 Joseph C Dolan EVP/CFO 8653746872 2023-11-08 Joseph Dolan 999009999 0 2 AAL1 IAL1 2022 2023-04-26 12:10:37Z James D VanderSteeg 244 Ft Sanders W Blvd Knoxville TN 37922 142873972 0 X www.covenanthealth.com/leconte/ X 1981 TN LeConte Medical Center is a 79-bed full service acute care hospital located in Sevier County, Tennessee. It is a member of the Covenant Health system. 23 22 676 75 179115 24737 7580901 5932339 135857632 135823674 32873 316597 714392 787766 144185798 142860376 25446 24157 0 0 34338363 33896363 0 0 0 88944266 92746707 123308075 126667227 20877723 16193149 91240969 88306586 16954278 8630747 74286691 79675839 X LeConte Medical Center provides quality healthcare, in alignment with Covenant Health's mission to serve the community by improving the quality of life through better health, regardless of a patient's ability to pay. 0 0 124510086 24157 135953521 LeConte Medical Center ("LeConte") provides care to the 14 million people who visit Sevier County each year and the nearly 100,000 residents who call Sevier County home. Previously a member of the former Fort Sanders Health Alliance, the hospital became a member of Covenant Health when the health system was formed in 1996. Located in the foothills of the Great Smoky Mountains, LeConte Medical Center is a full-service, state-of-the-art hospital with 79 beds.SERVICEThe hospital is best known for women's services (including labor and delivery), emergency care, outpatient diagnostic services, and cardiopulmonary rehabilitation. The American College of Radiology recognizes LeConte as one of the select facilities in Tennessee designated as a Lung Cancer Screening Center. LeConte's Comprehensive Breast Center is an American College of Radiology Breast Imaging Center of Excellence. In addition, the radiology department has accreditation in every advanced imaging procedure.The Dolly Parton Birthing Unit is a family-centered facility featuring state-of-the-art monitoring systems for the safety of moms and babies. LeConte has previously been named a Best Maternity hospital by Newsweek, a Bronze "Safe Sleep" Hospital, and was designated a BEST for Babies hospital by the Tennessee Health Department and Tennessee Hospital Association.In 2022, the hospital saw 120,596 patients. Of these, 116,339 were outpatients and 4,257 were inpatients with an average length-of-stay of 3.95 days. PUTTING PATIENTS FIRSTAs part of a growing community and a popular vacation destination for visitors from around the country, the emergency department at LeConte is one of the busiest in the region and is open 24 hours a day, seven days a week. It is equipped with a helicopter pad and an observation area. As part of Covenant Health's stroke hospital network, LeConte provides rapid diagnosis and treatment of stroke, and is certified by The Joint Commission as an Advanced Primary Stroke Center. LeConte was recognized with the American Heart Association/American Stroke Association's Get With The Guidelines-Stroke Gold Plus Quality Achievement Award. The award recognizes LeConte's commitment to ensuring stroke patients receive the most appropriate treatment according to nationally recognized, research-based guidelines based on the latest scientific evidence.LeConte was previously named a Top Rural Hospital by Leapfrog; a recognition only given to 23 rural hospitals in the nation. It was also voted the number one healthcare facility in Sevier County by the Mountain Press in the Reader's Choice awards, held in November.IMPROVING THE COMMUNITY'S QUALITY OF LIFE THROUGH BETTER HEALTHLocated inside the Dolly Parton Center for Women's Services, the LeConte Comprehensive Breast Center offers 3D mammography, stereotactic breast biopsy, bone density screenings, and has certified patient navigators available to help cancer patients manage their health care regimens. The center's "Paint the Mountains Pink" program educates the community about the importance of regular mammograms and provides free mammograms to women in Sevier County who qualify for mammography screening but cannot afford it.The LeConte Wellness Center is a full-service fitness center located in the Pigeon Forge Community Center. It offers members a safe and family-friendly atmosphere in which to exercise, in addition to hosting health and education programs throughout the year. LeConte's certified sports medicine athletic trainers work with coaches and students at high schools and sports tourism venues in Sevier and surrounding counties, bringing awareness of injury prevention and safety issues on and off the field. In 2022, LeConte sports medicine was also selected by the TSSAA to be the healthcare provider for the State Golf Championship held in Sevierville, TN. For the past 12 years, LeConte Medical Center has partnered with Dollywood's Splash Country (a 35-acre water park located in nearby Pigeon Forge) to host a Water Safety Day. This event is designed to provide children and parents with life-saving water safety skills, and builds awareness about the importance of teaching children to swim. Participants also learn about boating safety, skin cancer prevention, emergency first aid, general water safety, and recognizing the signs of stroke. COVENANT HEALTHLeConte Medical Center is a member of Covenant Health. Covenant Health is a comprehensive, community-owned health system dedicated to improving the health of the people it serves. Established in 1996 by the consolidation of Fort Sanders Health System, Knoxville, Tennessee, and MMC HealthCare System in Oak Ridge, Covenant Health is governed by a voluntary board of directors comprised of community leaders and medical professionals. With more than 11,000 employees, affiliated physicians and volunteers, Covenant Health is the Knoxville area's largest employer and has been named a Best Employer by Forbes. Covenant Health includes nine acute care hospitals in East Tennessee: Methodist Medical Center of Oak Ridge, Fort Sanders Regional Medical Center and Parkwest Medical Center in Knoxville, Fort Loudoun Medical Center in Lenoir City, LeConte Medical Center in Sevierville, Morristown-Hamblen Healthcare System in Morristown, Roane Medical Center in Harriman, Claiborne Medical Center in Tazewell and Cumberland Medical Center in Crossville. It also includes Peninsula, a division of Parkwest Medical Center, a behavioral health hospital in Blount County, Tennessee. The health system also includes Covenant Medical Group, which includes more than 200 physicians and advanced practice clinicians in office locations throughout East Tennessee.Affiliated organizations include Thompson Cancer Survival Center, Thompson Oncology Group, Fortress Corporation and Subsidiaries, Covenant HomeCare, and Fort Sanders Perinatal Center. Philanthropic organizations include Fort Sanders Foundation and the Thompson Cancer Survival Center Foundation in Knoxville, Methodist Medical Center Foundation in Oak Ridge, Dr. Robert F. Thomas Foundation in Sevierville, and Morristown-Hamblen Hospital Foundation in Morristown. Funds raised by the foundations provide services, equipment and other resources for excellence in patient care.LeConte 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.IMPACT OF COVID-19In March 2020, the outbreak of the coronavirus disease 2019 ("COVID-19") was declared a public health emergency by the Department of Health and Human Services and declared a national pandemic by the World Health Organization. The COVID-19 pandemic had a major impact on the operations of all hospitals and affiliates included within the Covenant Health System. Three years later, although the overall number of hospital admissions due to the virus is significantly lower than the prior two years, COVID-19 continues to be a long-term problem.The stresses on the System which began in 2020 continue to have long-term and far-reaching implications, creating new challenges for every hospital in the System. The rapid rise in costs for supplies and equipment, unprecedented staffing shortages, and lower patient volumes continue to result in financial stress. Elective surgeries and diagnostic procedures have not yet returned to pre-COVID levels. Government subsidies in 2020 and 2021 helped offset the financial losses caused by significant declines in volumes due to cancelled and postponed procedures. In 2021 and 2022, Federal and state grants continued to be used to subsidize the rising costs of retaining staff and providing quality care. These federal and state grants were helpful but the financial pressures of rising costs across the System are ongoing.Early results from our focus groups for the Community Health Needs Assessments indicate that community problems such as substance abuse, mental illness, asthma and other respiratory diseases, and access to health care have gotten worse since COVID-19, thus stressing the health care System even more than usual.Covenant Health has put in place a number of changes to address these challenges. We are aggressively pursuing cost reductions in supplies across our hospitals and with our vendors. Covenant has increased nurse pay and implemented retention bonuses and other incentives to help reduce staff fatigue and turnover. A number of innovations, including a growing use of Tele-health capabilities, have assured that we continue to reach and serve patients in the community. Patient care continues to be our top priority despite the economic pressures. 124510086 1 1 0 0 0 0 0 0 0 1 1 0 0 0 1 1 0 1 0 0 0 0 0 0 0 0 1 1 1 0 1 0 0 0 0 0 0 0 0 0 0 0 0 0 1 0 0 0 1 92 0 1 676 1 1 1 0 0 0 0 0 0 0 0 0 X 23 22 0 0 0 0 1 1 1 1 1 0 0 1 1 1 1 1 1 1 1 0 X Amy DeLong 8653743140 1420 Centerpoint Blvd Bldg C Knoxville TN 379321960 Gerald Boyd Director 0.00 1.00 X 0 0 0 Willard Campbell MD Director 0.00 1.00 X 0 0 0 Michael Casey MD Director 0.00 1.00 X 0 0 0 Ronni Chandler Director 0.00 1.00 X 0 0 0 Mitchell Dickson MD Director 0.00 1.00 X 0 268 0 Stephanie Flood Director 0.00 1.00 X 0 849 0 James Gibson Director 0.00 1.00 X 0 74 0 Edgar Gray Director 0.00 1.00 X 0 1432 0 Leslye Hartsell Director 0.00 1.00 X 0 889 0 Donald Hickman Director 0.00 1.00 X 0 1538 0 Timothy Matthews Director 0.00 1.00 X 0 906 0 Janice McKinley Director 0.00 1.00 X 0 1097 0 Dave Miller Director 0.00 1.00 X 0 1208 0 Bill Myers Director 0.00 1.00 X 0 0 0 Alvin Nance Director 0.00 1.00 X 0 0 0 Linda Ogle Director 0.00 1.00 X 0 0 0 King Purnell Director/Chair 0.00 1.00 X X 0 1050 0 Jorge Sanabria Director 0.00 1.00 X 0 1485 0 William Seale Director 0.00 1.00 X 0 1251 0 Cosby Stone Director 0.00 1.00 X 0 1408 0 Joe Sutter Director 0.00 1.00 X 0 979 0 James Tramontana MD Director 0.00 1.00 X 0 1208 0 James D VanderSteeg President & CEO 0.00 50.00 X X 0 2346646 316057 John T Geppi EVP/CFO 0.00 50.00 X 0 1099851 33916 Elissa G Jolly Fmr Pres & CAO (through Mar 2022) 50.00 0.00 X 0 230362 17415 Jacqueline H Hounshell VP - Financial Services 35.00 15.00 X 209727 0 38635 Aaron M Burns President & CAO 50.00 0.00 X 76418 164089 30289 Carolyn S Shipley Fmr VP - CNO (through Aug 2022) 50.00 0.00 X 180550 0 26554 Alexander V Usynin Medical Physicist 50.00 0.00 X 185198 0 39774 Jeremy M Clement Shift Leader CN 50.00 0.00 X 165671 0 37152 Diane R Bailey Pharmacist 50.00 0.00 X 143299 0 19791 Leonid D Malenchii Nursing Home Administrator 50.00 0.00 X 133963 0 9568 Jodi L Whitaker VP - CNO 50.00 0.00 X 28664 119711 36848 1123490 3976301 605999 20 0 1 0 Image Construction 3644 Lash-Brooke Way Louisville TN 37777 Construction Services 1190866 Linen King LLC 1521 W 36th Place Tulsa OK 74107 Linen Services 844679 Southeastern Emergency Physicians 265 Brookview Centre Way Knoxville TN 37919 Physician Services 697760 SRS-Telemedicine LLC PO Box 198813 Nashville TN 37219 Nephrology Telemedicine Consults 567483 Medic Regional Blood Center 1601 Ailor Avenue Knoxville TN 37921 Blood Processing Fees 416778 15 15079 5771439 145821 5932339 Net Patient Revenue 622110 134488343 134488343 Community Health 621990 972051 972051 Rental Income - Exempt Affiliates 531120 205857 205857 Laboratory 621500 157423 157423 135823674 29327 29327 11430 8866 2564 2564 2564 292000 4730 287270 287270 287270 Cafeteria 722514 233929 233929 Thrift Shop 455951 197593 197593 Fitness Center 713940 185914 185914 167766 21692 146074 785202 142860376 135953521 179115 795401 X 22157 22157 2000 2000 540564 540564 27506580 27006157 500423 823779 809701 14078 3045331 2995028 50303 1980109 1914708 65401 12215716 12053944 161772 11808 11808 16872365 16793817 78548 160897 154916 5981 590564 377482 213082 2877420 2568306 309114 48107 40984 7123 23192 18039 5153 5356862 5356862 102035 81262 20773 Medical Supplies 42540550 42540550 Bad Debt 8385493 8385493 Minor Equipment 2645983 2602188 43795 Food and Dietary 432721 432721 482994 353771 129223 126667227 124510086 2157141 0 2785 2685 -499146 -358463 14620262 12598735 3630335 2253998 402848 380602 146170244 74075632 70538195 72094612 102562 102120 2443128 1232297 91240969 88306586 14959804 7186433 1994474 1444314 16954278 8630747 X 74286691 79675839 74286691 79675839 91240969 88306586 X 16193149 -10804001 X 0 1 X 1 1 1 X RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED 102562 1000 558 2000 102120 102123 2439 2000 102562 103504 2119 3500 102123 107930 1574 6000 103504 110163 1267 3500 107930 1.00000 0 0 790000 790000 82097563 27348842 54748721 66346 54389 11957 62797948 46672401 16125547 418387 418387 72094612 Due to Affiliates, Net 174929 Long-Term Deferred Compensation 258039 Long-Term Reserve for Workers Comp 321609 Operating and Finance Leases 689737 1444314 X Part V, Line 4: LeConte Medical Center maintains one endowment fund, the Volunteer Scholarship Fund, for the purpose of providing financial assistance to student and adult volunteers, employees, or dependents seeking education in the medical field. The principal amount will be maintained in perpetuity and only the annual income generated will determine the number and amounts of scholarships awarded each year. Part X, Line 2: Excerpts from the consolidated audited financial statements of Covenant Health (Covenant), parent company to LeConte Medical Center: 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. Covenant had no unrecognized tax benefits at December 31, 2022 and 2021. As such, no interest or penalties were recognized in the consolidated financial statements related to unrecognized tax benefits. At December 31, 2022 and 2021, tax returns for 2019 through 2022 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, 2022 and 2021. 1 1 X 1 X 1 X 1 1 1 0 1 1 7627031 7627031 0.06450 29124867 23872932 5251935 0.04440 50849 92605 0 0.00000 36802747 23965537 12878966 0.10890 59473 59473 0.00050 230 230 0.00000 5849692 1519620 4330072 0.03660 31853 31853 0.00030 5941248 1519620 4421628 0.03740 42743995 25485157 17300594 0.14630 27870 27870 0.00020 1976 1976 0.00000 92 92 0.00000 29938 29938 0.00020 1 8385493 1080891 14354012 13389648 964364 X 1 1 1 1 LeConte Medical Center 742 Middle Creek Road Sevierville TN 37862 www.covenanthealth.com/leconte/ 00000103 X X X LeConte Medical Center 1 0 0 1 X X X X X X X X 20 1 0 1 1 X See Part V, Page 8 X 1 20 1 See Part V, Page 8 0 1 X 200.000000000000 300.000000000000 X X 1 1 X X X 1 X https://www.covenanthealth.com/patients-visitors/financial-assistance X https://www.covenanthealth.com/patients-visitors/financial-assistance X https://www.covenanthealth.com/patients-visitors/financial-assistance X X X X X X 1 X 0 X X X 1 X 0 0 LeConte Medical Center Part V, Section B, Line 5: LeConte Medical Center ("LeConte") conducted its third Community Health Needs Assessment ("CHNA") in 2020. A Steering Committee was formed to guide the assessment process and included the Sevier County Health Department, LeConte Medical Center, the Sevier County Health Council and the Tennessee Department of Health. Each of these community organizations serve the broader community and, in particular, the low-income, uninsured, and chronically ill. The Steering Committee worked with the University of Tennessee-Knoxville Social Work Office of Research and Public Service ("UT-SWORPS") to devise a Sevier County household survey and to host four focus groups of community leaders, each of which represented a part of the overall Sevier County public health system. The household survey collected information from nearly 225 Sevier County residents. Participation in the survey was diverse and reflected the demographic profile of the county for the attributes of educational level, income, ethnicity and age. The primary research was analyzed and combined with county demographics, mortality, and secondary data for more than 60 health indicators. A Data Team was formed to begin the analysis of the data and determine the most significant findings from the assessment. The Data Team included members of the Steering Committee as well as representatives from the Cherokee Health Systems, East Tennessee State University, Sevier County Sheriff's Office, Covenant Medical Group, Sevier County School System, and Gatlinburg Recreation Department. LeConte Medical Center Part V, Section B, Line 6b: LeConte's 2020 CHNA was conducted with the following organizations: - Cherokee Health System - Department of Children's Services - Dollywood - East Tennessee State University - Family Resource Center - First Baptist Church - Helen Ross McNabb - Local Law Firm - Mountain Hope Clinic - Safe Harbor CAC - Sevier County Health Department - UT Extension - Sevier County Emergency Medical Services - Seymour Farmers Market - Sevier County Schools - Dr. Robert F. Thomas Foundation - Sevier County Sheriff's Office LeConte Medical Center Part V, Section B, Line 11: The primary findings from the assessment were access to healthcare, senior health, poverty, tobacco use, mental health, awareness of resources, substance abuse, obesity, health education, and chronic disease management. After discussion, the Data Team developed a consensus around the most significant issues and narrowed the initial list of health concerns to a list of the top four.In rank order as determined by the Data Team: 1. Mental Health 2. Obesity - Adult and Child 3. Health Education 4. Substance Abuse.1. Mental HealthBehavioral Health Services Expansion - Psychiatric consultation service is now being provided for patients in the Emergency Department and for inpatients at LeConte via tele-video through Peninsula Behavioral Health, a department of Parkwest Medical Center. - LeConte's patients can be referred to Peninsula's Outpatient Psychiatric Clinic, which is located less than a mile away from the hospital. - LeConte, with funding support from the Covenant Health Office of Philanthropy, implemented an Emergency Department Diversion Program in 2021. A team of medical and behavioral specialists conducts a behavioral assessment and develops a treatment plan to meet the identified needs. An outreach specialist follows up with patients to oversee the implementation plan. 2. Adult and Childhood ObesityCovenant Kids Run - Each year, as part of the Covenant Health Knoxville Marathon, children in kindergarten through 8th grades participate in the Covenant Kids Run. Participants work on completing 26.2 miles of activity with the final mile taking place on race day of the marathon. The intent of the program is to get youth to engage in physical activity and develop healthy habits. LeConte, the Knoxville Track Club and Covenant Health's marketing department coordinate with Sevier County Schools to encourage participation. Walk Across the Smokies - Community Hikes - LeConte sponsors a series of Spring and Fall community hikes. This is an on-going collaboration with the Friends of the Smokies organization.3. Substance AbusePeninsula Drug Treatment Program - LeConte can now refer patients to Peninsula's Medication Assistance Treatment program through the Center's Outpatient Services for Substance Abuse. This program offers specialized medications and intensive therapy to treat substance abuse disorders. Cherokee Health Navigator Program - LeConte has an agreement with Cherokee Health via a grant program to provide counseling and resources for overdose patients in the Emergency Department or as inpatients.HEAL Coalition - LeConte will continue to support this multi-disciplinary coalition to address the incidence of Neonatal Abstinence Syndrome in Sevier County. - LeConte will continue to support its Women's Recovery Support Group for women dealing with addiction. The group is held each Monday at the medical center.Opioid Lite Program - LeConte's Emergency Department is participating in a Covenant Health system-wide initiative to curb the use of hospital-prescribed opioids. Physicians are prescribing non-opioid drugs when indicated for pain management during treatment and at discharge. - LeConte works in conjunction with other community resources, including Helen Ross McNabb and Sevier County Alcohol and Drug Education, to address substance-related issues, including tobacco use. 4. Health EducationDollywood Partnership - LeConte is a member of Covenant Health, which is the health partner for Dollywood, Sevier County's largest employer. LeConte periodically provides speakers for Dollywood's safety team. Cardiac Rehab Education - LeConte also provides cardiac rehabilitation education. Community Stroke Education - LeConte provides chronic disease education (e.g., diabetes) in conjunction with University of Tennessee Agricultural Extension agents. - LeConte's stroke coordinator regularly provides stroke education to the community. LeConte Medical Center Part V, Section B, Line 16j: All other ways in which the hospital widely publicizes the FAP are discussed in detail in Part VI, Line 3. Part V, Line 7a, CHNA website https://www.covenanthealth.com/leconte/chna/ Part V, Line 10a, Implementation Strategy Website https://www.covenanthealth.com/leconte/chna/ Part V, Line 20d, Presumptive Eligibility Determinations The hospital follows the eligibility procedures as detailed within the FAP and does not make presumptive eligibility determinations. 12 1 - Thompson Radiation Oncology Sevier 710 Middle Creek Road Sevierville TN 37862 Radiation Oncology 2 - LeConte Comprehensive Breast Center 740 Middle Creek Road Suite 106 Sevierville TN 37862 Breast Imaging Center 3 - Thompson Infusion Services Downtown 1915 White Avenue Knoxville TN 37916 Infusion Services 4 - Thompson PET Services 710 Middle Creek Road Sevierville TN 37862 PET Imaging Services 5 - Thompson Infusion Services West 9711 Sherrill Blvd Suite 202 Knoxville TN 37932 Infusion Services 6 - LeConte Health and Rehabilitation Ctr 731 Middle Creek Road Sevierville TN 37862 Nursing Home 7 - Thompson Infusion Services Sevier 710 Middle Creek Road Sevierville TN 37862 Infusion Services 8 - Sevier County Wellness Center 717 Middle Creek Road Sevierville TN 37862 Occupational Health 9 - LeConte Cardio-Pulmonary Rehab Ctr 740 Middle Creek Road Suite 112 Sevierville TN 37862 Rehabilitation & Therapy Services 10 - Thompson Infusion Services Maryville 220 Blount Memorial Hosp Cancer Ctr Maryville TN 37804 Infusion Services 11 - LeConte Therapy Services-Seymour 127 W Macon Lane Ste2 Seymour TN 37865 Rehabilitation & Therapy Services 12 - Pigeon Forge Fitness Center 170 Community Center Drive Pigeon Forge TN 37863 Fitness Center Part I, Line 3c: In addition to the Federal Poverty Guidelines ("FPG"), LeConte utilizes an asset test as a factor in determining eligibility for free or discounted care. Ten percent (10%) of the patient/guarantor's net assets will be added to income for determination of total annual income. The guidelines for determining assets include, but are not limited to, primary dwelling (and attached land), automobiles, liquid assets, investments, farm land, business property, rental property, farm and/or business equipment including livestock and crops. All real property will be considered at fair market value. The values of both real and personal property will be reduced by any existing liabilities incurred by the applicant in obtaining the assets (net assets) with the exception of primary dwelling. The primary dwelling net asset will be the amount of equity above $100,000. Actual or potential third party liability to the patient, hospital or the guarantor by common law, contract, statute or otherwise, shall be considered an asset and must be listed on the Hospital Financial Assistance application. Part I, Line 6a: Covenant Health, the parent company of LeConte 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: Subsidized health services includes the difference between the cost of services and the payments received for those services. The cost of providing OB and neonatal care exceeded the payments by $726,126. The organization has included $3,603,947 in physician sponsorship fees in total subsidized health services. All subsidized health services included on line 7g are for services that would otherwise be unavailable in the community or be below the community's needs. Part I, Ln 7 Col(f): The Bad Debt expense included on Form 990, Part IX, Line 24a, but subtracted for purposes of calculating the percentage in this column is $8,385,493. Part II, Community Building Activities: LeConte 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. Contributions in 2022 were made to organizations meeting the community's needs by providing: - The basic needs of life including temporary shelter, food and clothing (Ladies of Charity, City Shepherds, Safe Families for Children East TN and Second Harvest Food Bank) - Youth mentoring, development and after-school programs (Emerald Youth Foundation, Boys and Girls Club, Knox Education Foundation, First Tee of Greater Knoxville and Great Smoky Mountain Council) - Business recruitment and marketing initiatives that boost economic development (Knoxville Technology Council, Knoxville Zoological Garden and Pellissippi State Foundation) - Leadership development programs and workshops (Knoxville Area Urban League and Leadership Knoxville) - Assistance and special programs for at risk older adults, people with physical and mental challenges, and abused and neglected children (Senior Citizens Home Assist and Sertoma Center) - Improve access to health services (East TN Children's Hospital, Helen Ross McNabb Center, Interfaith Health Clinic, Knoxville Academy of Medicine, and Region II Emergency Medical Services) - Programs supporting patients and their families (Air Force Association, Alzheimer's Tennessee, American Cancer Society, American Heart Association, Angel Wings Memory Gowns, East TN Kidney Foundation, East TN Veteran Memorial Association, Juvenile Diabetes Research Foundation and Leukemia & Lymphoma Society, Wreaths Across America) Part III, Line 2: Bad debt expense on Part III, Line 2 is the amount recorded in the organization's financial statements. Discounts and payments on patient accounts are netted against bad debt. The allowance for bad debt is determined based on management's assessment of factors including the age of the accounts, historical collections data, and industry standards. Part III, Line 3: At regular intervals, the Vice President of Revenue Cycle analyzes all self-pay accounts receivables to identify patients who may have been eligible for charity care during a particular period or year. Because this analysis does not yield a final determination of eligibility due to various factors including but not limited to charity applications still in process, failure of eligible patients to submit their charity application, and applications still under consideration, further analysis of the accounts comprising the self-pay accounts receivable is conducted. The accounts for which a patient was contacted to apply for charity care include an identifier; these charity-identified accounts are then categorized according to status. A ratio of the dollar amounts of those accounts whose charity application is in process or has been approved divided by the total self-pay accounts receivable is computed. This ratio is applied to the bad debt expense total to determine the estimated amount of the bad debt expense attributable to patients eligible for charity care according to the hospital's policy. Part III, Line 4: Note B to the 2022 Audited Consolidated Financial Statements of the Covenant Health system, of which LeConte Medical Center is a member, states: Patient accounts receivable are reported net of an estimated allowance for contractual adjustments and an allowance for implicit price concessions. 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: Costing Methodology: LeConte 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: LeConte utilizes a look-back method to determine amounts generally billed ("AGB") to establish the maximum amount that will be charged to individuals eligible under the financial assistance policy ("FAP") for emergency or other medically necessary care. Self-pay patients automatically receive a 70% discount on charges based on the facility's calculated AGB. 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 90% 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.LeConte makes reasonable efforts to determine a patient's eligibility under the facility FAP. All collection activity will be halted if a charity application is received and will remain on hold until a determination is made by LeConte and communicated in writing to the responsible party. If the charity application is approved, all collection activities taken will be reversed and any amounts paid above the amount required will be refunded. Patients/guarantors who qualify for partial financial assistance are responsible for paying any balance remaining after the charity adjustment and third party payments. LeConte will not engage in extraordinary collection actions ("ECA") before it makes reasonable efforts to determine whether an individual who has an unpaid bill is eligible for financial assistance. Reasonable efforts to determine whether the individual who has an unpaid bill is eligible for financial assistance include notification to the individual of the financial assistance policy, contacting individuals who have submitted incomplete financial assistance applications regarding how to complete the application, and allowing a reasonable time period to do so, and reviewing completed applications for financial assistance eligibility. LeConte does not sell any accounts receivable accounts to outside firms. All accounts remain property of and under the policies set by LeConte. LeConte will not defer or deny medically necessary care because of nonpayment for previously provided care whether it was covered or not covered under the charity program. Part VI, Line 2: While the CHNA is a formal means by which the health system assesses the needs of the community, there are many informal networks that give the Covenant Health hospitals a sense of community issues and needs. LeConte obtains additional community information through the service of its employees with the Chamber of Commerce, Sevier County Health Council, and Rotary Club, and through partnerships with the Boys and Girls Club and the Mountain Hope Good Shepherd Clinic for the uninsured. Covenant Health, the parent organization, maintains community benefit professionals working year-round to ensure that all hospitals are assessing and addressing the needs of the communities served. Part VI, Line 3: The FAP states that patients who are unable to pay or have exhausted all sources of payment assistance may be considered for charity care. Signage about the policy is posted in highly visible areas of the hospital, such as lobbies and registration areas. Information about the FAP is posted in patient booklets provided to patients during the registration process and communicated via patient billing statements. In addition, the FAP and application are available on the facility website. LeConte employs full time financial counselors to assist patients in applying for TennCare and screening for eligibility for financial assistance. Office hours and the phone number for the counselors are included on the signage. Wall signs informing patients about available financial assistance state the following: 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, counselors at LeConte 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 LeConte Medical Center will provide, at a reduced rate, medically indicated services. A financial counselor is available to assist you with these matters by calling 865-446-8687, Monday through Friday between the hours of 8 a.m.-4 p.m. Additional information regarding financial assistance is also available on our website at LeConteMedicalCenter.com. Signage at the registration areas state the following:It is LeConte 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, through a financial counselor, or on our website at LeConteMedicalCenter.com. A financial counselor is available to assist you with these matters by calling 865-446-8687, Monday through Friday between the hours of 8 a.m.-4 p.m. Part VI, Line 4: Sevier County, Tennessee, is the primary market for LeConte. It is a rural community within close proximity to the metropolitan Knoxville area. LeConte is the only hospital in the county. According to internal hospital data for 2022, 68% of the inpatient encounters and 60% of the outpatient encounters originate from Sevier County, the focus of the assessment.The following statistics are taken from the 2022 County Health Rankings data of the Robert Wood Johnson Foundation. The population of Sevier County is 99,244. Persons over the age of 65 account for 20.5% of the population. Nearly 22% of adults are uninsured as are 6% of children. The unemployment rate is 9.63%. Three-fourths of the population works in the hospitality/tourism sector, and the median household income is $54,300.According to the 2022 County Health Rankings Report of the Robert Wood Johnson Foundation and the University of Wisconsin Population Health Institute, Sevier County residents have the following health indicators that are above the national benchmarks: Sevier - TN - National Adult Smoking: 25% - 21% - 16% Adult Obesity: 36% - 37% - 32% Children in Poverty: 20% - 18% - 16% Teen Birthrate: 30 - 27 - 19 of every 1,000 teenage girls Poor or Fair Health: 23% - 20% - 17% Physical Inactivity: 33% - 29% - 26% Drug Overdose Deaths 45 - 34 - 23 per 100,000 population Part VI, Line 5: LeConte, 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 LeConte's board. The board is comprised of independent community leaders with diverse educational and professional backgrounds. The board provides governance and oversight of LeConte. LeConte 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: LeConte, 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.LeConte's patients benefit from the availability of and ease of access to Covenant Health affiliated entities for services not provided by the hospital itself. Transfer or referral to such services is expedited and coordinated to help create a seamless continuum of care. A full range of community mental health and psychiatric hospital services are available within the system that help support the hospital's emergency room as well as provide an accessible and efficient pathway for those patients who require such services post discharge. Other specialized services such as inpatient rehabilitation, cardiac care, cancer treatment, home health and hospice services are provided by affiliated entities. The Covenant Health system also enhances the patient's access to care through the provision of outpatient services in a variety of settings located throughout the service area. These include a diabetes center, wound care center, bariatric surgery center, pulmonary rehabilitation programs, and ambulatory infusion centers.Thompson Cancer Survival Center participates with LeConte in educating the community about cancer prevention and treatment by providing information and materials at the Sevier County annual Relay for Life event. The Robert F. Thomas Foundation ("Foundation"), a not-for-profit fundraising organization, conducts fundraising events. A portion of the funds are donated to LeConte for the purpose of purchasing healthcare related equipment. In addition, the Foundation donates funds to be used for the continuing education of physical therapists employed by LeConte.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. 1 United Way of Sevier County 140 Court Ave Ste 1 Sevierville TN 37862 621225078 501(c)(3) 11600 0 General Support 1 Part I, Line 2: Grant funds are provided to charitable organizations for the purpose of enhancing and promoting health care and improving quality of life in the community. The organization has guidelines in place to review the eligibility of grantees, and all grants require written documentation and appropriate levels of approval. Funds are generally not tracked after being granted as the original eligibility and selection criteria have been met. X 1 1 1 1 0 0 0 0 0 0 0 James D VanderSteeg President & CEO 0 1425507 0 742500 0 178639 0 284975 0 31082 0 2662703 0 0 John T Geppi EVP/CFO 0 679719 0 309084 0 111048 0 11600 0 22316 0 1133767 0 0 Aaron M Burns President & CAO 42868 162349 33413 0 137 1740 0 0 8679 21610 85097 185699 0 0 Jacqueline H Hounshell VP - Financial Services 143969 0 33000 0 32758 0 7070 0 31565 0 248362 0 0 0 Elissa G Jolly Fmr Pres & CAO (through Mar 2022) 0 48903 0 85952 0 95507 0 11600 0 5815 0 247777 0 0 Alexander V Usynin Medical Physicist 183722 0 1220 0 256 0 11296 0 28478 0 224972 0 0 0 Carolyn S Shipley Fmr VP - CNO (through Aug 2022) 86866 0 28505 0 65179 0 6509 0 20045 0 207104 0 0 0 Jeremy M Clement Shift Leader CN 160283 0 2440 0 2948 0 9800 0 27352 0 202823 0 0 0 Jodi L Whitaker VP - CNO 22640 96251 0 22000 6024 1460 3953 3953 4479 24463 37096 148127 0 0 Diane R Bailey Pharmacist 141326 0 1220 0 753 0 8602 0 11189 0 163090 0 0 0 Part I, Line 1a Tax gross-up payments related to deferred compensation are provided to certain executives and managers. Amounts are included in taxable compensation. Part I, Line 3 Covenant Health, the parent company of LeConte Medical Center, used the following methods in establishing the compensation of President/CEO, James D. VanderSteeg: compensation committee, independent compensation consultant, written employment contract, compensation survey or study, and approval by the board or compensation committee. Additional detail is provided in response to Form 990, Part VI, Section B, Lines 15a and 15b within Schedule O. Part I, Lines 4a-b Carolyn Shipley, Former VP Chief Nursing Officer, received a severance payment of $55,384 during 2022. The amount is included in taxable compensation. Her termination date was August 22, 2022. Leonid Malenchii, Former Nursing Home Administrator, received a severance payment of $29,000 during 2022. The amount is included in taxable compensation. His termination date was December 1, 2022. Covenant Health maintains a nonqualified deferred compensation ("NQDC") plan intended to support retention of President and CEO, James D. VanderSteeg. Employer contributions of $273,375 are reported as deferred compensation on Schedule J, Part II, Column C. Contributions along with 2022 earnings of $70,560 are subject to a substantial risk of forfeiture. Amounts are combined with other compensation and considered for reasonableness. Compensation procedures are discussed in detail in Schedule O (Form 990, Part VI, Section B, Line 15a). Form 990, Part VI, Section A, line 6 Covenant Health is the sole member of LeConte Medical Center. Form 990, Part VI, Section A, line 7a Covenant Health's board of directors also serves as the board of directors for LeConte Medical Center. Form 990, Part VI, Section A, line 7b Governance decisions of LeConte Medical Center are subject to approval of the sole member, Covenant Health. Form 990, Part VI, Section B, line 11b The Covenant Health Board of Directors has delegated to its Finance Committee the full power and authority of the Board to receive, review, approve, authorize the filing of, address and resolve audit or review issues, and otherwise take all action required or appropriate relative to IRS Forms 990 and other applicable tax filings. Prior to filing Form 990, management reviews with the committee the returns, discusses any material variations in the Form 990 as compared to those to be filed by the organization's affiliates, and answers any questions. At the conclusion of review and discussion, the Finance Committee approves the Form 990. Form 990, Part VI, Section B, line 12c Board members, officers, and employees are required to adhere to rules and policies regarding conflicts of interest. Covenant Health distributes a board-approved Code of Conduct to all employees. The Code covers among other subjects, conflicts of interest, and requires disclosure and resolution of employee conflicts of interest. Additionally, officers, employed physicians and highly compensated employees are required to complete and sign an annual conflict of interest disclosure statement. Board members' conflicts of interests are addressed in the corporate bylaws, and board members are required to complete and sign a conflict of interest questionnaire on an annual basis. The Integrity-Compliance Office maintains records that contain conflict of interest information obtained from board members, officers, and employees. These records are available to be queried prior to engaging in business transactions. The Chief Compliance Officer reviews 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. Officers and other employees are expected to report conflicts to the Chief Compliance Officer as they arise. Depending on the nature of the conflict and the circumstances surrounding the conflict and transaction, the Chief Compliance Officer, senior leadership, or the board of directors may review the conflict of interest. When appropriate, these parties 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 Chief Compliance Officer in conjunction with Covenant Health Executive Leadership determines how to appropriately manage the conflict. In any conflict involving a board member, such member is expected to recuse himself or herself from voting on matters related to the conflict. Form 990, Part VI, Section B, line 15 Form 990, Part VI, Section B, Line 15a: Overall compensation policies for LeConte Medical Center, Covenant Health (Parent Company), and affiliates are set by the Covenant Health Chief Executive Officer (CEO) in consultation with appropriate Executive Vice Presidents and the Senior Vice President-Human Resources, after review by and discussion with the executive compensation consultant ("the Consultant") to ensure that total compensation for each executive is reasonable and within a fair market value range. The Covenant Health CEO is compensated by Covenant Health, and a detailed description of the compensation process is included on Covenant Health's Form 990. The process for LeConte Medical Center's CEO is included in response to Part VI, Section B, line 15b. Form 990, Part VI, Section B, Line 15b: Base salary and annual bonus opportunities for Aaron Burns, President and Chief Adminstrative Officer, are set by the Covenant Health CEO in consultation with appropriate Executive Vice Presidents and the Senior Vice President-Human Resources, 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 reviewed with 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 the 25th percentile 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 other officers and key employees are based on targets established by historical compensation consultant data and the Covenant Health Compensation department. 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 LeConte 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 IX, line 11g Intercompany Purchased Services: Program service expenses 1,773,095. Management and general expenses 0. Fundraising expenses 0. Total expenses 1,773,095. Other Purchased Services: Program service expenses 11,160,585. Management and general expenses 78,548. Fundraising expenses 0. Total expenses 11,239,133. Sponsorship Fees: Program service expenses 3,860,137. Management and general expenses 0. Fundraising expenses 0. Total expenses 3,860,137. Form 990, Part XI, line 9: Transfers of Capital -10,804,001. Covenant Health 1420 Centerpoint Blvd Bldg C Knoxville TN 379321960 621646734 Supporting organization TN 501(c)(3) Line 12b, II N/A 0 Covenant HomeCare 1420 Centerpoint Blvd Bldg C Knoxville TN 379321960 621623114 Home health services TN 501(c)(3) Line 10 Covenant Health 0 Fort Loudoun Medical Center 1420 Centerpoint Blvd Bldg C Knoxville TN 379321960 621373691 Acute care hospital TN 501(c)(3) Line 3 Covenant Health 0 Fort Sanders Regional Medical Center 1420 Centerpoint Blvd Bldg C Knoxville TN 379321960 620528340 Acute care hospital TN 501(c)(3) Line 3 Covenant Health 0 Fort Sanders Foundation 1420 Centerpoint Blvd Bldg C Knoxville TN 379321960 621748601 Fundraising and patient outreach TN 501(c)(3) Line 12b, II Covenant Health 0 Fort Sanders Perinatal Center 1420 Centerpoint Blvd Bldg C Knoxville TN 379321960 043760551 High risk obstetrical services TN 501(c)(3) Line 3 Fort Sanders Regional Medical Center 0 Methodist Medical Center 1420 Centerpoint Blvd Bldg C Knoxville TN 379321960 620636239 Acute care hospital TN 501(c)(3) Line 3 Covenant Health 0 Morristown-Hamblen Hospital Association 1420 Centerpoint Blvd Bldg C Knoxville TN 379321960 620545814 Acute care hospital TN 501(c)(3) Line 3 Covenant Health 0 Parkwest Medical Center 1420 Centerpoint Blvd Bldg C Knoxville TN 379321960 581897274 Acute care hospital and behavioral health services TN 501(c)(3) Line 3 Covenant Health 0 Roane County Medical Center 1420 Centerpoint Blvd Bldg C Knoxville TN 379321960 680673354 Acute care hospital TN 501(c)(3) Line 3 Covenant Health 0 Thompson Cancer Survival Center 1420 Centerpoint Blvd Bldg C Knoxville TN 379321960 621250943 Cancer support center TN 501(c)(3) Line 3 Covenant Health 0 Thompson Oncology Group 1420 Centerpoint Blvd Bldg C Knoxville TN 379321960 621619239 Oncology services TN 501(c)(3) Line 3 Thompson Cancer Survival Center 0 Thompson Cancer Survival Center Foundation 1420 Centerpoint Blvd Bldg C Knoxville TN 379321960 582130450 Fundraising and patient outreach TN 501(c)(3) Line 12b, II Covenant Health 0 Cumberland Medical Center 1420 Centerpoint Blvd Bldg C Knoxville TN 379321960 620790132 Acute care hospital TN 501(c)(3) Line 3 Covenant Health 0 Claiborne Medical Center 1420 Centerpoint Blvd Bldg C Knoxville TN 379321960 464420358 Acute care hospital TN 501(c)(3) Line 3 Covenant Health 0 The Dr Robert F Thomas Foundation Inc 1420 Centerpoint Blvd Bldg C Knoxville TN 379321960 581537582 Fundraising and patient outreach TN 501(c)(3) Line 12a, I Covenant Health 0 Covenant-AmSurg ASC Ventures LLC 1A Burton Hills Blvd Nashville TN 37215 884134388 Management Company TN N/A 0 0 Covenant-KEC ASC Ventures LLC 1A Burton Hills Blvd Nashville TN 37215 920539400 Management Company TN N/A 0 0 TEC North LLC 1A Burton Hills Blvd Nashville TN 37215 201871076 Physician Services TN N/A 0 0 The Endoscopy Center of Knoxville LLC 1A Burton Hills Blvd Nashville TN 37215 621512837 Physician Services TN N/A 0 0 Fortress Corporation 1420 Centerpoint Blvd Bldg C Knoxville TN 379321960 621308885 Management company TN N/A C 0 Covenant Medical Group Inc 1420 Centerpoint Blvd Bldg C Knoxville TN 379321960 621282917 Physician practice management TN N/A C 0 Knoxville Heart Group 1420 Centerpoint Blvd Bldg C Knoxville TN 379321960 271528941 Cardiology medical practice TN N/A C 0 East TN Cardiovascular Surgery Group Inc 1420 Centerpoint Blvd Bldg C Knoxville TN 379321960 621018541 Cardiovascular surgical practice TN N/A C 0 VortexT Analytics Inc 1420 Centerpoint Blvd Bldg C Knoxville TN 379321960 475296949 Computer programming services TN N/A C 0 TenHats LLC 1420 Centerpoint Blvd Bldg C Knoxville TN 379321960 814563094 Data storage TN N/A C 0 0 1 1 0 0 0 0 0 0 1 1 1 1 1 1 1 1 1 1