Covenant Health

What it reported doing in 2024

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.

Financial Efficiency

• Mission deployment rate: 59.7%; rating input score 60
• Program expense ratio: 87.7%; rating input score 88
• Fundraising efficiency: $0.55 raised per $1 spent on fundraising; rating input score 1; 1st percentile among comparable filings

Transparency & Controls

• Consistency checks: 92.3%; rating input score 92; 12th percentile among comparable filings
• Pay-setting controls: 5 of 6 controls in place; rating input score 83
  • Compensation committee: Pass
  • Independent consultant: Pass
  • Other Form 990s reviewed: Missing
  • Written employment contract: Pass
  • Compensation survey or study: Pass
  • Board or committee approval: Pass
• Foreign activity oversight: Limited
• Grant itemization coverage: 83.2%; rating input score 83; 18th percentile among comparable filings
• Major donor itemization: Yes; rating input score 100
• Related-party transparency: Yes; rating input score 100

Accountability

• Independent voting board: 95%; rating input score 95; 47th percentile among comparable filings
• Governance controls: 9 of 9 controls in place; rating input score 100
  • Conflict-of-interest policy: Pass
  • Whistleblower policy: Pass
  • Document-retention policy: Pass
  • CEO compensation review process: Pass
  • Other executive compensation review process: Pass
  • Form 990 shared with the board: Pass
  • Board meeting minutes documented: Pass
  • Audit committee oversight: Pass
  • Independent financial-statement audit: Pass

Sustainability

• Operating margin: 13.9%; rating input score 80; 80th percentile among comparable filings
• Total-asset coverage ratio: 9.64; rating input score 91; 91st percentile among comparable filings
• Liabilities to assets ratio: 0.55; rating input score 32; 32nd percentile among comparable filings
• Officer compensation ratio: 7%; rating input score 7; 7th percentile among comparable filings

Growth

• Program expense growth: 6.1% per year; rating input score 100; 50th percentile among comparable filings
• Revenue growth: 5.4% per year; rating input score 100; 46th percentile among comparable filings
• Asset growth: 4.6% per year; rating input score 100; 33rd percentile among comparable filings