Covenant Health

EIN: 621646734 501(c)(3) Health Care

Knoxville, TN

Total Revenue
$235,666,950
Total Expenses
$203,004,800
Total Assets
$1,956,038,753
Net Assets
$887,405,464
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Financial Trends

Organization Details

Formation Year
1996
Legal Domicile
TN
Principal Officer
James D VanderSteeg
Phone
8653745329
Tax Period
2024-01-01 to 2024-12-31

Covenant Health, founded in 1996, is a major nonprofit in the Health Care sector that reported $235.7M in total revenue in fiscal year 2024. Revenue grew 14% year-over-year, indicating healthy expansion. Expenses of $203.0M left a modest 14% surplus.

Mission

Covenant Health supports its member hospitals and other organizations (see Schedule A) serve the community by improving the quality of life through better health, regardless of a patient's ability to pay.

Program Service Accomplishments

Program 1
Expenses: $178,069,437 Revenue: $231,812,092

Covenant Health is a community-owned, clinically integrated healthcare enterprise dedicated to being the region's premier healthcare network through service, community and innovation. Our mission is...

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Covenant Health is a community-owned, clinically integrated healthcare enterprise dedicated to being the region's premier healthcare network through service, community and innovation. Our mission is to improve the quality of life in our region through better health. Covenant Health provides patient-centered care that inspires clinical and service excellence and strives to be the first and best choice for the communities we serve. 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 composed 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 top employer by Forbes and Becker's Hospital Review. Covenant Health serves a 25-county area and includes nine acute care hospitals in East Tennessee: Fort Sanders Regional Medical Center and Parkwest Medical Center in Knoxville, Methodist Medical Center of Oak Ridge, 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. Peninsula provides behavioral health services at an inpatient hospital in Blount County and at outpatient locations in Knox, Blount, Loudon, and Sevier counties. The health system includes Covenant Medical Group, which serves patients at more than 90 office and clinic locations. CMG providers include primary care physicians and specialists in areas such as cardiology, gastroenterology, neurology, surgery, and other medical specialties. Covenant Health employs nearly 450 physicians and advanced practice clinicians throughout East Tennessee. Affiliated organizations include Thompson Cancer Survival Center, Thompson Oncology Group, Fortress Corporation and Subsidiaries, Covenant HomeCare, and Fort Sanders Perinatal Center. Covenant Health also operates Thompson Proton Center and offers innovative services such as Advanced Care at Home. Philanthropic organizations include Covenant Health Foundation and 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 to enhance patient care.SERVICECovenant Health's various system-level divisions operationally support and facilitate the health system's not-for-profit mission of improving the region's quality of life through better health. These divisions include information technology, business office and health information management, along with system-wide departments such as human resources, learning and leadership development, and others.

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Trantor Score

Financial Health Score (300–850) · Liquidity · Solvency · Sustainability · Efficiency

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Liquidity (40%) • Solvency (30%) • Sustainability (20%) • Efficiency (10%)

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Financial Overview (2024)

Revenue Breakdown

Contributions & Grants $300,000
Program Service Revenue $172,183,053
Investment Income $63,042,227
Other Revenue $141,670
TOTAL REVENUE $235,666,950

Expense Breakdown

Grants Paid $377,488
Salaries & Benefits $112,878,925
Fundraising Expenses $549,590
Program Expenses $178,069,437
Other Expenses $89,748,387
TOTAL EXPENSES $203,004,800

Year-over-Year Comparison

2024 2023 Change
Revenue $235,666,950 $207,141,823 +0.1%
Expenses $203,004,800 $191,450,181 +0.1%
Net Income $32,662,150 $15,691,642 +1.1%
Key Indicators
Grants to Organizations Grants to Individuals Lobbying Political Activity Foreign Activities Donor Advised Fund Schedule B Required
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Governance

Voting Members
20
Independent Members
19
Employees
1587
Volunteers
19

Governance Policies

Conflict of Interest Policy
Whistleblower Policy
Document Retention Policy

Special Practices & Reported Activities

Operated a School
Operated a Hospital
Provided First Class Travel
Reported Conflict of Interest
Reported Asset Diversion
Excess Benefit Transaction
Made Political Expenditures
Engaged in Lobbying
Operated Donor Advised Fund
Maintained Art Collections
Filed Form 720

Compensation of Officers, Directors & Key Employees

Total Officers
5
$4,811,716
Total Directors
20
$3,253,624
Key Employees
9
$6,561,053
Highest Compensated
5
reported
Name Title Hours/Week Role Reportable Comp Other Comp Total
Mitchell Dickson MD Director 1.00
Director
$0 $0 $0
Stephanie Flood Director 1.00
Director
$964 $0 $964
James Gibson Director 1.00
Director
$0 $0 $0
Edgar Gray Director 1.00
Director
$844 $0 $844
Leslye Hartsell Director 1.00
Director
$1,124 $0 $1,124
Donald Hickman Director 1.00
Director
$675 $0 $675
Timothy Matthews Director 1.00
Director
$657 $0 $657
Janice McKinley Director 1.00
Director
$0 $0 $0
Cletus McMahon MD Director 1.00
Director
$0 $0 $0
Dave Miller Director 1.00
Director
$0 $0 $0
Bill Myers Director 1.00
Director
$0 $0 $0
Alvin Nance Director 1.00
Director
$648 $0 $648
Linda Ogle Director 1.00
Director
$0 $0 $0
King Purnell Director/Chair 1.00
Officer Director
$935 $0 $935
Jorge Sanabria Director 1.00
Director
$807 $0 $807
William Seale Director 1.00
Director
$1,060 $0 $1,060
Cosby Stone Director 1.00
Director
$1,113 $0 $1,113
Joe Sutter Director 1.00
Director
$881 $0 $881
James Tramontana MD Director 1.00
Director
$1,086 $0 $1,086
James D VanderSteeg President & CEO 50.00
Officer Director
$2,880,556 $362,274 $3,242,830
Joseph C Dolan EVP/CFO 50.00
Officer
$861,693 $105,608 $967,301
Kathleen F Zitzman Chief Compliance Officer 50.00
Officer
$396,574 $46,864 $443,438
Philip V Schmidt Director - Internal Audit 50.00
Officer
$118,339 $38,873 $157,212
Michael R Belbeck Jr EVP-Hosp Ops 50.00
Key Emp
$976,075 $113,223 $1,089,298
M Douglas Campbell Jr General Counsel 50.00
Key Emp
$874,804 $124,126 $998,930
Jon-David Deeson EVP - Physician Enterprises 50.00
Key Emp
$693,902 $92,036 $785,938
Amanda G Halford MD SVP - Chief Medical Officer 50.00
Key Emp
$685,012 $44,785 $729,797
Debra A Welch SVP - Human Resources 50.00
Key Emp
$629,172 $37,337 $666,509
William C Clabough SVP - Chief Development Officer 50.00
Key Emp
$595,648 $55,012 $650,660
William M Ward SVP - Chief Information Officer 50.00
Key Emp
$546,146 $46,120 $592,266
Debra R Honey SVP - Chief Nursing Officer 50.00
Key Emp
$529,114 $38,502 $567,616
Teresa A Giles Fmr SVP - Finance (through May 2024) 50.00
Key Emp
$458,845 $21,194 $480,039
Keith N Altshuler President/CAO - Fort Sanders Reg 0.00
Highest
$659,599 $36,837 $696,436
Gordon E Lintz President/CAO - Morristown-Hamblen 0.00
Highest
$564,436 $26,089 $590,525
Devan C Johnson President/CAO - Parkwest 0.00
Highest
$562,166 $50,375 $612,541
Jeremy H Biggs President/CAO - Methodist Med Ctr 0.00
Highest
$530,098 $45,244 $575,342
Wesley C Halford MD Medical Director Physician 50.00
Highest
$389,543 $22,159 $411,702
Note: Compensation data is self-reported by the organization on their Form 990. "Reportable Comp" includes salary, bonuses, and other reportable compensation from the organization and related organizations. "Other Comp" includes benefits, deferred compensation, and non-taxable benefits.

Historical Data

Year Revenue Expenses Assets Net Income
2024 $235,666,950 $203,004,800 $1,956,038,753 $32,662,150
2023 $207,141,823 $191,450,181 $1,801,246,321 $15,691,642
2022 $220,269,899 $180,206,350 $1,741,953,217 $40,063,549
2021 $188,217,463 $163,022,804 $1,927,401,864 $25,194,659
2020 $186,599,540 $160,638,163 $1,756,557,265 $25,961,377
2019 $259,416,121 $153,436,488 $1,638,320,485 $105,979,633
2018 $193,250,266 $166,435,527 $1,386,644,162 $26,814,739
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