COVENANT HEALTH SYSTEM

EIN: 752765566 501(c)(3) Health Care

RENTON, WA

Total Revenue
$101,706,790
Total Expenses
$93,736,511
Total Assets
$251,526,995
Net Assets
$-138,151,370
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Financial Trends

Organization Details

Formation Year
1998
Legal Domicile
TX
Principal Officer
WALTER CATHEY
Phone
8067250000
Tax Period
2023-01-01 to 2023-12-31

COVENANT HEALTH SYSTEM, founded in 1998, is a major nonprofit in the Health Care sector that reported $101.7M in total revenue in fiscal year 2023. Revenue decreased 18% compared to the prior year. Expenses of $93.7M left a modest 8% surplus.

Mission

AS EXPRESSIONS OF GOD'S HEALING LOVE, WITNESSED THROUGH THE MINISTRY OF JESUS, WE ARE STEADFAST IN SERVING ALL, ESPECIALLY THOSE WHO ARE POOR AND VULNERABLE.

Program Service Accomplishments

Program 1
Expenses: $56,992,422 Revenue: $94,036,802

AT PROVIDENCE, WE USE OUR VOICE TO ADVOCATE FOR VULNERABLE POPULATIONS AND NEEDED REFORMS IN HEALTH CARE. WE ARE ALSO PURSUING INNOVATIVE WAYS TO TRANSFORM HEALTH CARE BY KEEPING PEOPLE HEALTHY, AND...

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AT PROVIDENCE, WE USE OUR VOICE TO ADVOCATE FOR VULNERABLE POPULATIONS AND NEEDED REFORMS IN HEALTH CARE. WE ARE ALSO PURSUING INNOVATIVE WAYS TO TRANSFORM HEALTH CARE BY KEEPING PEOPLE HEALTHY, AND MAKING OUR SERVICES MORE CONVENIENT, ACCESSIBLE AND AFFORDABLE FOR ALL. IN AN INCREASINGLY UNCERTAIN WORLD, WE ARE COMMITTED TO HIGH-QUALITY, COMPASSIONATE CARE FOR EVERYONE - REGARDLESS OF COVERAGE OR ABILITY TO PAY. WE HELP PEOPLE AND COMMUNITIES BENEFIT FROM THE BEST HEALTH CARE MODEL FOR THE FUTURE - TODAY.TOGETHER, OUR 117,000 CAREGIVERS (ALL EMPLOYEES) SERVE IN 51 HOSPITALS, 1,000 CLINICS AND A COMPREHENSIVE RANGE OF HEALTH AND SOCIAL SERVICES ACROSS ALASKA, CALIFORNIA, MONTANA, NEW MEXICO, OREGON, TEXAS AND WASHINGTON. THE PROVIDENCE FAMILY INCLUDES:-PROVIDENCE ACROSS SEVEN WESTERN STATES-COVENANT HEALTH IN WEST TEXAS-PROVIDENCE FACEY MEDICAL FOUNDATION IN LOS ANGELES, CA-KADLEC IN SOUTHEAST WASHINGTON-PACIFIC MEDICAL CENTERS IN SEATTLE, WA-SWEDISH HEALTH SERVICES IN SEATTLE, WAAS A COMPREHENSIVE HEALTH CARE ORGANIZATION, WE ARE SERVING MORE PEOPLE, ADVANCING BEST PRACTICES AND CONTINUING OUR MORE THAN 100-YEAR TRADITION OF SERVING THE POOR AND VULNERABLE. DELIVERING SERVICES ACROSS SEVEN STATES, PROVIDENCE IS COMMITTED TO TOUCHING MILLIONS OF MORE LIVES AND ENHANCING THE HEALTH OF THE AMERICAN WEST TO TRANSFORM CARE FOR THE NEXT GENERATION AND BEYOND.THROUGH COMMUNITY BENEFIT PROGRAMS AND OTHER HIGH-IMPACT INVESTMENTS, WE WORK TO ENSURE BASIC HEALTH NEEDS ARE MET AND SERVE TO REMOVE BARRIERS TO CARE, BUILD COMMUNITY RESILIENCE AND INNOVATE FOR THE FUTURE. MINISTRIES AND AFFILIATES SUPPORT ORGANIZATIONS, PROGRAMS AND INITIATIVES THAT IMPROVE HEALTH AND WELL-BEING AND INCREASE EQUITABLE ACCESS TO QUALITY CARE AT THE COMMUNITY LEVEL AND AT SCALE ACROSS SEVEN STATES.WE ARE PROUD OF OUR HISTORY AND CONTINUED COMMITMENT TO HELPING BUILD A MORE EQUITABLE, SUSTAINABLE FUTURE. OUR STEADFAST COMMITMENT TO RESPONDING TO COMMUNITY NEED IS ONE OF THE MANY WAYS MINISTRIES, AFFILIATES AND CAREGIVERS LIVE OUT OUR SHARED MISSION AND CONTINUE TO SERVE AS A VITAL SAFETY NET FOR THOSE WHO ARE VULNERABLE. FOR MORE INFORMATION GO TO: HTTPS://WWW.PROVIDENCE.ORG/ABOUT/ANNUAL-REPORTENVIRONMENTAL, SOCIAL, AND GOVERNANCE STANDARDSPROVIDENCE CONTINUES TO EXECUTE ON OUR INTEGRATED STRATEGIC AND FINANCIAL PLAN, WHICH CLEARLY EXPRESSES OUR COMMITMENT AND ACCELERATION OF THE IMPORTANT WORK TO ADDRESS SOCIAL, RACIAL, AND ECONOMIC DISPARITIES AND REDUCE OUR CARBON FOOTPRINT IN THE COMMUNITIES WE SERVE. PROVIDENCE ADVANCES PROGRESS ON OUR CARBON NEGATIVE GOAL AND IN 2023 WE ESTIMATED THAT WE DECREASED EMISSIONS BY OVER 12 PERCENT COMPARED TO OUR 2019 BASELINE. IN ADDITION, OUR EFFORTS LED TO THE INTRODUCTION OF THE GREEN HOSPITALS ACT, LEGISLATION MODELED AFTER PROVIDENCE THAT WOULD PROVIDE CRITICAL FEDERAL FUNDING TO WEATHERIZE AND MODERNIZE HEALTH CARE FACILITIES. PROVIDENCE COMPLETED A COMPREHENSIVE CLIMATE RESILIENCE PLAN IN ALIGNMENT WITH OUR COMMITMENT TO THE US DEPARTMENT OF HEALTH AND HUMAN SERVICES CLIMATE PLEDGE. WE CONTINUE TO REDUCE GREENHOUSE GAS EMISSIONS WITH A FOCUS ON LED LIGHTING UPGRADES, WATER CONSERVATION, MORE EFFICIENT DELIVERY OF NITROUS OXIDE GAS DURING ANESTHESIA, AND ADVANCING OUR WASTE OPTIMIZATION WORK ACROSS ALL HOSPITALS AND CLINICS.2023 PROGRAM SERVICE ACCOMPLISHMENTS:COVENANT HEALTH LUBBOCK HOSPITALS:COVENANT HEALTH MEDICAL CENTER, GRACE SURGICAL HOSPITAL, COVENANT CHILDREN'S, HOSPITAL AND COVENANT SPECIALTY HOSPITAL (JOINT VENTURE) WORK COLLABORATIVELY THROUGH A CENTRALIZED/SHARED SERVICE COMMUNITY BENEFIT/COMMUNITY HEALTH INVESTMENT DEPARTMENT TO MEET THE NEEDS IDENTIFIED IN THE CHNA. THE LUBBOCK BASED FACILITIES ARE REFERRED TO COLLECTIVELY AS COVENANT HEALTH LUBBOCK HOSPITALS AND ALL SERVE THE SAME GEOGRAPHIC SERVICE AREA OF WEST TEXAS AND EASTERN NEW MEXICO. ADDITIONALLY, DUE TO OVERLAPPING SERVICE AREAS, CLOSE GEOGRAPHIC PROXIMITY TO ONE ANOTHER, AND SHARED COMMUNITY BENEFIT OUTREACH PROGRAMS, THE COVENANT HEALTH LUBBOCK HOSPITALS WORKED WITH COVENANT HEALTH PLAINVIEW, COVENANT HEALTH LEVELLAND AND COVENANT HOBBS HOSPITAL TO DEVELOP A REGIONAL APPROACH TO MANY OF THEIR 2021-2023 CHIP'S. WHILE THERE ARE SOME DIFFERENCES IN SELECT STRATEGIES AND COMMUNITY PARTNERS, COVENANT MEDICAL CENTER, COVENANT CHILDREN'S, GRACE SURGICAL HOSPITAL, COVENANT SPECIALTY HOSPITAL, COVENANT HEALTH PLAINVIEW, COVENANT HOBBS HOSPITAL, AND COVENANT HEALTH LEVELLAND SHARE MANY SIMILAR OUTREACH STRATEGIES, WHICH ALLOWS FOR MORE EFFECTIVELY LEVERAGING INVESTMENTS IN THE REGION TO MEET COMMUNITY NEEDS. COVENANT HOBBS HOSPITAL'S FIRST CHNA OCCURRED IN 2023 HOWEVER, THEY PARTICIPATED IN MANY OUTREACH ACTIVITIES AND INVESTMENTS IN 2023 PRIOR TO COMPLETION OF THEIR CHNA AND CHIP.COVENANT HEALTH HAS A RICH HISTORY IN THE TEXAS/NEW MEXICO REGION. WHILE HEALTH CARE IN OUR REGION HAS CHANGED OVER THE YEARS, OUR COMMITMENT TO FULFILLING OUR MISSION, VISION, VALUES AND PROMISE HAVE NOT WAIVERED. BELOW WE HIGHLIGHT THREE PRIORITY AREA ACCOMPLISHMENTS ACROSS COVENANT HEALTH LUBBOCK HOSPITALS:MENTAL AND BEHAVIORAL HEALTHMENTAL AND BEHAVIORAL HEALTH MENTAL AND BEHAVIORAL HEALTH TREATMENT, INTERVENTION AND PREVENTION SERVICES FOR THE COMMUNITY, INCLUDING RELATED ISSUES SUCH AS SUBSTANCE USE1) THE COVENANT COMMUNITY OUTREACH COUNSELING PROGRAM PROVIDES COUNSELING SERVICES TO LOW-INCOME, UNINSURED AND VULNERABLE PERSONS IN OUR COMMUNITIES. IN 2023 SERVICE SITES WERE EXPANDED TO INCLUDE ON-SITE COUNSELING FOR VARIOUS COMMUNITY PARTNERS INCLUDING THE LUBBOCK YWCA AND LUBBOCK CHILDREN'S HEALTH CLINIC. WRAP AROUND COUNSELING SERVICES WERE MADE AVAILABLE TO LUBBOCK ISD STUDENTS ENROLLED IN THE COMMUNITY ADVOCACY PROGRAM. TELE-HEALTH COUNSELING SERVICES WERE CONTINUED TO SUPPORT LEVELLAND, PLAINVIEW AND SURROUNDING COMMUNITIES. A COUNSELING INTERNSHIP PROGRAM WAS EXPANDED THROUGH PARTNERSHIPS WITH AREA UNIVERSITIES CREATING A SIGNIFICANT INCREASE IN SERVICES PROVIDED TO THE COMMUNITY DUE TO THE DEVELOPMENT OF THE COUNSELOR INTERNSHIP PROGRAM. THE INTERNSHIP PROGRAM HAS GROWN FROM 2 COUNSELOR INTERNS AT THE END OF 2022 TO 5 INTERNS AT THE END OF 2023. IN 2023, THE COVENANT COMMUNITY COUNSELING CENTER COMPLETED 3,389 COUNSELING SESSION ENCOUNTERS. COVENANT ALSO PARTICIPATES IN A REGIONAL-WIDE MENTAL HEALTH COLLABORATIVE- WEST TEXAS MENTAL HEALTH COLLABORATIVE WHICH PROVIDES SUPPORT TO THE ENTIRE TEXAS SERVICE AREA. THROUGH THIS COLLABORATIVE WE HAVE SUPPORTED THE CREATION OF A NEW DIVERSION CENTER WHICH WILL BE CONSTRUCTED IN 2023-2024 AND WE HAVE ALSO BROUGHT MENTAL HEALTH CONFERENCES TO THE REGION.ACCESS TO CARE AND HEALTH RESOURCESISSUES RELATED TO ACCESSING HEALTH SERVICES AND RESOURCES INCLUDING SOCIAL DETERMINANTS OF HEALTH WITH AN EMPHASIS ON VULNERABLE POPULATIONS AND HEALTH EQUITY1) THROUGH COVENANT HEATH'S COMMUNITY DENTAL OUTREACH PROGRAM, WE ARE ABLE TO PROVIDE LOW-COST DENTAL SERVICES TO DENTALLY UN-INSURED THROUGH DENTAL OUTREACH CLINICS IN LUBBOCK AND PLAINVIEW, PARTNERING WITH LUBBOCK IMPACT TO HOLD FULL-DAY DENTAL CLINICS, AND PERFORMING FREE DENTAL SEALANTS TO CHILDREN IN NEED IN LUBBOCK AND HOCKLEY COUNTIES. IN 2023, THIS PROGRAM TOTALED 1,682 DENTAL ENCOUNTERS PROVIDING ACCESS TO THE FULL ARRAY OF DENTAL SERVICES FROM EXTRACTIONS TO DENTURES. THIS PROVIDES ACCESS TO DENTAL FOR ADULTS IN OUR SERVICE AREA WHO WOULD OTHERWISE GO WITHOUT DENTAL CARE. ADDITIONALLY, WE COMPLETED DENTAL SEALANT CLINICS TO PLACE PREVENTATIVE SEALANTS FOR LOW-INCOME CHILDREN IN LITTLEFIELD AND LEVELLAND SCHOOL DISTRICTS. WE HELD 3 DENTAL SEALANT CLINICS AND PROVIDED FREE SEALANTS TO APPROXIMATELY 50 CHILDREN. IN 2023, WE ALSO EXPANDED OUR DENTAL OUTREACH TO INCLUDE 2 ON-SITE DENTAL DAYS AT LUBBOCK IMPACT, PROVIDING DENTAL SERVICES TO APPROXIMATELY 30 HOUSING INSECURE INDIVIDUALS. WE ALSO PROVIDED DENTAL HYGIENE EDUCATION AT THE LUBBOCK YWCA TO 249 CHILDREN.2) COVENANT'S COMMUNITY HEALTH EDUCATION PROGRAM PROVIDES FREE HEALTH EDUCATION TO COMMUNITY MEMBERS THROUGH ONE ON ONE APPOINTMENTS WITH A DIABETIC EDUCATOR, GROUP CLASSES, AND COMMUNITY COOKING CLASSES. IN 2023, OVER THERE JUST OVER 260 ENCOUNTERS FOR THIS PROGRAM WITH REFERRALS COMING FROM OVER 20 COMMUNITY PARTNER AGENCIES. ADDITIONALLY, THIS PROGRAM COLLABORATED WITH OUR HEALTH EQUITY DIABETES PROGRAM OFFERING COMMUNITY DIABETES CLASSES AND HANDS ON COOKING CLASSES.FOR MORE INFORMATION ON COVENANT HEALTH GO TO: HTTPS://WWW.PROVIDENCE.ORG/LOCATIONS/COVENANT-HEALTH/HOME

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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 (2023)

Revenue Breakdown

Contributions & Grants $766,750
Program Service Revenue $21,356,564
Investment Income $1,078,163
Other Revenue $78,505,313
TOTAL REVENUE $101,706,790

Expense Breakdown

Grants Paid $1,712,777
Salaries & Benefits $29,501,007
Fundraising Expenses $6,396
Program Expenses $56,992,422
Other Expenses $62,522,727
TOTAL EXPENSES $93,736,511

Year-over-Year Comparison

2023 2022 Change
Revenue $101,706,790 $124,698,924 -0.2%
Expenses $93,736,511 $115,856,089 -0.2%
Net Income $7,970,279 $8,842,835 -0.1%
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
16
Independent Members
15
Employees
723
Volunteers
64

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
$3,350,959
Total Directors
16
$774,842
Key Employees
3
$5,947,062
Highest Compensated
5
reported
Name Title Hours/Week Role Reportable Comp Other Comp Total
JOEL GILBERTSON DIVISION CHIEF EXEC - CENTRAL 16.00
Key Emp
$0 $333,262 $3,167,071
RICHARD PARKS FRMR OFF EXEC. ADVISOR 0.00
$0 $37,055 $1,822,649
SCOTT O'BRIEN DIVISION COO - CENTRAL 14.00
Key Emp
$0 $208,371 $1,781,484
WALTER CATHEY REG CE - WEST TX/EASTERN NM 18.00
Officer
$0 $203,418 $1,645,841
JOHN GRIGSON REGIONAL CFO - THRU 3/23 54.50
Officer
$0 $31,533 $1,057,577
MELISSA DAMM DIVISION CFO - CENTRAL 14.00
Key Emp
$0 $117,526 $998,507
CRAIG RHYNE MD REGIONAL CHIEF MEDICAL OFFICER 50.00
Highest
$964,696 $0 $964,696
JAMES KELLY FRMR OFF. - VP SENIOR CORP COUNSEL 0.00
$0 $104,422 $808,682
KERRY HENDERSHOT MD BOARD MEMBER 0.50
Director
$0 $75,054 $774,842
BRUCE WHITE VP REGIONAL RURAL ADMINISTRATOR 25.00
Highest
$462,155 $67,774 $529,929
CHRISTINE SHAVER FRMR KE - VP CHIEF HR - COVHS 0.00
$0 $67,941 $507,455
DAVID SHAW VP NM HOSPITAL ADMINISTRATOR 50.00
Highest
$394,214 $37,295 $431,509
STEVEN BECK CHIEF ADMINISTRATIVE OFFICER 50.00
Highest
$400,379 $14,963 $415,342
DYANA KERR REGIONAL CFO (PART YEAR) 27.50
Officer
$0 $64,209 $410,134
LINDY LAUDERDALE CHIEF ADMINISTRATIVE OFFICER 50.00
Highest
$299,090 $37,279 $336,369
KATHLEEN BURRELL SECR. CHIEF GOVERNANCE OFF. (PT YR) 7.00
Officer
$0 $31,334 $193,718
LINDZI TIMBERLAKE SECR./CHIEF GOV. OFF. - THRU 2/23 47.50
Officer
$0 $3,401 $43,689
BRIAN BRUENING MD BOARD MEMBER 0.50
Director
$0 $0 $0
CHRISTOPHER SNEAD BOARD MEMBER 0.50
Director
$0 $0 $0
DAVID QUINTANILLA BOARD MEMBER 0.50
Director
$0 $0 $0
DAVID WEAVER BOARD MEMBER 0.50
Director
$0 $0 $0
GABE VITELA BOARD MEMBER 0.50
Director
$0 $0 $0
JORGE RAMIREZ BOARD MEMBER 0.50
Director
$0 $0 $0
JOSHUA HILL MD BOARD MEMBER 0.50
Director
$0 $0 $0
KIM TURNER BOARD MEMBER/VICE CHAIR 0.50
Director
$0 $0 $0
LINDSAY COOPER BOARD MEMBER 0.50
Director
$0 $0 $0
PHEBE ELLIS-ROACH BOARD MEMBER 0.50
Director
$0 $0 $0
SAMMY DEEB MD BOARD MEMBER 0.50
Director
$0 $0 $0
SISTER CHRISTINE RAY CSJ BOARD MEMBER 0.50
Director
$0 $0 $0
SISTER MARIAN SCHUBERT CSJ BOARD MEMBER 0.50
Director
$0 $0 $0
TRAVIS FUNK BOARD MEMBER/CHAIR 1.00
Director
$0 $0 $0
TROY TUCKER BOARD MEMBER 0.50
Director
$0 $0 $0
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 No data No data No data No data
2023 $101,706,790 $93,736,511 $251,526,995 $7,970,279
2022 $124,698,924 $115,856,089 $88,236,720 $8,842,835
2021 $106,469,001 $98,316,333 $235,112,275 $8,152,668
2020 $94,073,918 $85,973,403 $156,000,960 $8,100,515
2019 $89,452,397 $85,386,826 $143,533,032 $4,065,571
2018 $696,149,527 $686,425,076 $716,587,857 $9,724,451
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