Form 990 for tax year 2022

Revenue

Part VIII, the statement of revenue.

• 1d · Related organizations

  $11,400

• 1e · Government grants (contributions)

  $5,438,029

• 1f · All other contributions, gifts and grants

  $55,310

• 2a · Program service revenue: Net Patient Revenue

  total $86,135,193 · related or exempt $86,135,193

• 2b · Program service revenue: Laboratory

  total $36,287 · unrelated business $36,287

• 3 · Investment income

  total $26,499 · excluded $26,499

• 6a · Gross rents

  real property $782,009

• 6b · Less rental expenses

  real property $529,429

• 6c · Rental income or loss

  real property $252,580

• 6d · Net rental income or loss

  total $252,580 · unrelated business $120,035 · excluded $132,545

• 7a · Gross sales of assets other than inventory

  other assets $113,101

• 7b · Less cost or other basis and sales expenses

  other assets $26,106

• 7c · Gain or loss

  other assets $86,995

• 7d · Net gain or loss

  total $86,995 · excluded $86,995

• 11a · Other revenue: Wellness Center

  total $536,344 · excluded $536,344

• 11b · Other revenue: Cafeteria

  total $387,153 · excluded $387,153

• 11c · Other revenue: Medical Records

  total $36,452 · excluded $36,452

• 11d · All other revenue

  total $66,218 · related or exempt $24,988 · excluded $41,230

• 11e · Other revenue, total

  $1,026,167

Functional expenses

Part IX, the statement of functional expenses.

• 1 · Grants to domestic organizations and governments

  total $10,100 · program services $10,100

• 5 · Compensation of officers, directors and key employees

  total $392,475 · management and general $392,475

• 7 · Other salaries and wages

  total $35,830,321 · program services $34,400,008 · management and general $1,430,313

• 8 · Pension plan contributions

  total $461,601 · program services $451,639 · management and general $9,962

• 9 · Other employee benefits

  total $3,598,321 · program services $3,503,837 · management and general $94,484

• 10 · Payroll taxes

  total $2,256,056 · program services $2,162,238 · management and general $93,818

• 11a · Fees: management

  total $1,948,648 · program services $1,880,598 · management and general $68,050

• 11g · Fees: other

  total $20,811,474 · program services $20,237,062 · management and general $574,412

• 12 · Advertising and promotion

  total $150,656 · program services $124,951 · management and general $25,705

• 13 · Office expenses

  total $345,659 · program services $185,728 · management and general $159,931

• 14 · Information technology

  total $1,395,323 · program services $1,377,775 · management and general $17,548

• 16 · Occupancy

  total $2,669,000 · program services $1,920,157 · management and general $748,843

• 17 · Travel

  total $43,027 · program services $38,312 · management and general $4,715

• 19 · Conferences, conventions and meetings

  total $55,458 · program services $36,124 · management and general $19,334

• 20 · Interest

  total $15 · program services $15

• 22 · Depreciation, depletion and amortization

  total $5,385,032 · program services $5,385,032

• 23 · Insurance

  total $161,505 · program services $157,994 · management and general $3,511

• 24a · Other expenses: Unrelated Business Inco

  total $31,000 · management and general $31,000

• 24b · Other expenses: Medical Supplies

  total $13,272,335 · program services $13,272,335

• 24c · Other expenses: Bad Debt

  total $8,866,763 · program services $8,866,763

• 24d · Other expenses: Minor Equipment

  total $2,386,783 · program services $2,319,356 · management and general $67,427

• 24e · All other expenses

  total $1,850,475 · program services $1,795,467 · management and general $55,008

Balance sheet

Part X, book values.

• 1 · Cash, non-interest-bearing

  beginning of year $2,963,616 · end of year $2,964,803

• 4 · Accounts receivable

  beginning of year $9,520,309 · end of year $9,115,515

• 8 · Inventories for sale or use

  beginning of year $940,359 · end of year $1,032,573

• 9 · Prepaid expenses and deferred charges

  beginning of year $1,141,982 · end of year $1,033,510

• 10a · Land, buildings and equipment: cost or other basis

  $171,031,490

• 10b · Land, buildings and equipment: accumulated depreciation

  $113,289,010

• 10c · Land, buildings and equipment, net

  beginning of year $59,599,330 · end of year $57,742,480

• 14 · Intangible assets

  beginning of year $10,082,209 · end of year $9,692,473

• 15 · Other assets

  beginning of year $6,347,642 · end of year $487,459

• 17 · Accounts payable and accrued expenses

  beginning of year $14,125,695 · end of year $10,612,106

• 19 · Deferred revenue

  end of year $3,759

• 25 · Other liabilities

  beginning of year $1,949,001 · end of year $4,785,764

• 27 · Net assets without donor restrictions

  beginning of year $74,520,751 · end of year $66,667,184

The filer's explanations (Part III)

Part I, Line 3

Covenant Health, the parent company of Cumberland 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

David Bunch, Former President/CAO of Cumberland Medical Center, received a severance payment $120,200 during 2022. The amount is included in taxable compensation. His termination date was August 5, 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).

Disregarded entities

Part I: entities that legally are the filer and file no return of their own.

• Cumberland Physician Group LLC

  Physician services · TN · income $0 · assets $45,250

  Directly controlled by Cumberland Medical Center

Related partnerships

Part III: related organizations taxable as a partnership, with the filer's share.

• Covenant-AmSurg ASC Ventures LLC

  Management Company · TN

• Covenant-KEC ASC Ventures LLC

  Management Company · TN

• TEC North LLC

  Physician Services · TN

• The Endoscopy Center of Knoxville LLC

  Physician Services · TN

Related corporations and trusts

Part IV: related organizations taxable as a corporation or trust.

• Fortress Corporation

  C · Management company · TN

• Covenant Medical Group Inc

  C · Physician practice management · TN · controlled entity

• Knoxville Heart Group

  C · Cardiology medical practice · TN

• East TN Cardiovascular Surgery Group Inc

  C · Cardiovascular surgical practice · TN

• VortexT Analytics

  C · Computer programming services · TN

• TenHats LLC

  C · Data storage · TN