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← MORRISTOWN HAMBLEN HOSP

Form 990 for tax year 2023

Filed by MORRISTOWN HAMBLEN HOSP.

Totals

Total revenue
$140,103,926
Total expenses
$127,016,752
Contributions and grants received
$512,068
Grants paid
$6,700
Program service revenue
$139,105,759
Investment income
$24,334
Other revenue
$461,765
Total assets, end of year
$109,849,024
Total liabilities, end of year
$12,597,140
Net assets or fund balances, end of year
$97,251,884
Program services expenses (Part IX)
$123,541,264
Management and general expenses
$3,475,489
Fundraising expenses
$0
Program service expenses (Part III)
$123,541,264

Program services were 97.3% of total expenses calculated — Part IX's program-services column over total expenses, both as filed.

Line items

Every line the filer filed in Parts VIII, IX and X, as filed and in filed order. Blank columns are left out, and the lines are not forced to add up to the totals above.

Revenue

Part VIII, the statement of revenue.

  • 1d · Related organizations

    $512,068

  • 1g · Noncash contributions included above

    $7,250

  • 2a · Program service revenue: Net Patient Revenue

    total $138,357,059 · related or exempt $138,357,059

  • 2b · Program service revenue: Laboratory

    total $605,888 · unrelated business $605,888

  • 2c · Program service revenue: Rental Income - Exempt Affiliate

    total $142,812 · related or exempt $142,812

  • 3 · Investment income

    total $24,324 · excluded $24,324

  • 6a · Gross rents

    real property $384,092

  • 6b · Less rental expenses

    real property $421,817

  • 6c · Rental income or loss

    real property -$37,725

  • 6d · Net rental income or loss

    total -$37,725 · unrelated business -$39,529 · excluded $1,804

  • 7a · Gross sales of assets other than inventory

    other assets $10

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

    other assets $0

  • 7c · Gain or loss

    other assets $10

  • 7d · Net gain or loss

    total $10 · excluded $10

  • 11a · Other revenue: Cafeteria

    total $310,095 · excluded $310,095

  • 11b · Other revenue: Gift Shop

    total $73,178 · excluded $73,178

  • 11c · Other revenue: Vending

    total $41,132 · excluded $41,132

  • 11d · All other revenue

    total $75,085 · related or exempt $22,787 · excluded $52,298

  • 11e · Other revenue, total

    $499,490

Functional expenses

Part IX, the statement of functional expenses.

  • 1 · Grants to domestic organizations and governments

    total $2,000 · program services $2,000

  • 2 · Grants to domestic individuals

    total $4,700 · program services $4,700

  • 5 · Compensation of officers, directors and key employees

    total $420,071 · management and general $420,071

  • 7 · Other salaries and wages

    total $39,141,222 · program services $38,519,042 · management and general $622,180

  • 8 · Pension plan contributions

    total $646,619 · program services $640,860 · management and general $5,759

  • 9 · Other employee benefits

    total $4,731,805 · program services $4,663,232 · management and general $68,573

  • 10 · Payroll taxes

    total $2,829,825 · program services $2,759,445 · management and general $70,380

  • 11a · Fees: management

    total $12,475,123 · program services $12,094,790 · management and general $380,333

  • 11b · Fees: legal

    total $128,087 · management and general $128,087

  • 11g · Fees: other

    total $14,727,334 · program services $14,444,974 · management and general $282,360

  • 12 · Advertising and promotion

    total $209,740 · program services $204,280 · management and general $5,460

  • 13 · Office expenses

    total $600,025 · program services $515,202 · management and general $84,823

  • 16 · Occupancy

    total $2,924,515 · program services $2,454,082 · management and general $470,433

  • 17 · Travel

    total $51,801 · program services $50,151 · management and general $1,650

  • 19 · Conferences, conventions and meetings

    total $14,024 · program services $13,292 · management and general $732

  • 22 · Depreciation, depletion and amortization

    total $6,408,155 · program services $5,784,882 · management and general $623,273

  • 23 · Insurance

    total $119,835 · program services $7,177 · management and general $112,658

  • 24a · Other expenses: Unrelated Business Inco

    total $1,048 · management and general $1,048

  • 24b · Other expenses: Medical Supplies

    total $25,975,931 · program services $25,975,931

  • 24c · Other expenses: Bad Debt

    total $9,794,478 · program services $9,794,478

  • 24d · Other expenses: Minor Equipment

    total $2,508,318 · program services $2,472,477 · management and general $35,841

  • 24e · All other expenses

    total $3,302,096 · program services $3,140,268 · management and general $161,828

Balance sheet

Part X, book values.

  • 1 · Cash, non-interest-bearing

    beginning of year $1,380 · end of year $1,480

  • 2 · Savings and temporary cash investments

    beginning of year -$2,606,547 · end of year -$490,346

  • 4 · Accounts receivable

    beginning of year $15,633,557 · end of year $18,329,747

  • 8 · Inventories for sale or use

    beginning of year $1,145,303 · end of year $1,203,363

  • 9 · Prepaid expenses and deferred charges

    beginning of year $496,234 · end of year $521,712

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

    $185,526,766

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

    $107,413,551

  • 10c · Land, buildings and equipment, net

    beginning of year $65,493,042 · end of year $78,113,215

  • 14 · Intangible assets

    beginning of year $8,819,138 · end of year $8,819,138

  • 15 · Other assets

    beginning of year $1,672,803 · end of year $3,350,715

  • 17 · Accounts payable and accrued expenses

    beginning of year $9,567,480 · end of year $9,716,277

  • 25 · Other liabilities

    beginning of year $1,438,020 · end of year $2,880,863

  • 27 · Net assets without donor restrictions

    beginning of year $79,649,410 · end of year $97,251,884

Mission and programs · 2023

Mission

Morristown-Hamblen Hospital Association 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 the patient's ability to pay.

Activities or mission (Part I)

Morristown-Hamblen Hospital Association operates a 167-bed acute care hospital located in Hamblen County, Tennessee. It is a member of the Covenant Health System.

  • Founded in 1895, Morristown-Hamblen Healthcare System ("Morristown-Hamblen") is a 167-bed facility that has provided more than 100 years of care to its community. The hospital serves an eight-county region in the Lakeway Area of East Tennessee. SERVICEMorristown-Hamblen includes six centers of excellence: the Heart, Lung, and Vascular Center; Women's Center; Breast Center; Morristown Regional Cancer Center; Outpatient Surgery Center, Emergency Department and Critical Care Unit. Morristown-Hamblen received an "A" Hospital Safety Score from The Leapfrog Group in Fall 2023. In 2023 the hospital saw 124,050 patients. Of these, 116,924 were outpatients and 7,126 were inpatients with an average length-of-stay of 4.79 days. PUTTING PATIENTS FIRSTThe hospital's Morristown Regional Cancer Center offers comprehensive cancer care that includes medical oncology, chemotherapy, and radiation oncology, among other services. The radiation oncology department includes a highly specialized team of radiation therapists, a radiation oncologist, medical physicists and registered nurses. The program is the only provider of radiation therapy within a 45-mile radius of Morristown. The cancer center has a dedicated high-speed CT scanner for treatment simulation and planning, an advanced linear accelerator, and other state-of-the-art technology. The program offers treatments such as external beam radiation therapy, intensity-modulated radiation therapy, high-dose-rate brachytherapy and low-dose CT scans for early detection of lung cancer. Morristown-Hamblen's Heart, Lung, and Vascular Center offers a complete continuum of care including prevention, diagnostic, interventional and rehabilitative services for both inpatients and outpatients. Tests available include EKGs, Holter monitors, echocardiograms, and stress testing. Diagnostic and interventional catheterizations are performed using advanced technologies in angioplasty, drug-eluting stents, intra-aortic balloon pumps and closure devices. In 2023, Morristown-Hamblen opened a third cardiac cath lab to meet the growing heart care needs of the Lakeway area.Since opening Morristown-Hamblen Women's Healthcare of Morristown in 2018, women in all stages of life have received a wide range of care. This includes specialties such as gynecology, pregnancy care, hormonal and menopause management, and gynecological surgery. The Center partners with the Hamblen County Foundation for Educational Excellence to provide toolkits that include community resources and parenting guides to each new mother at the hospital.Morristown-Hamblen is certified under The Joint Commission's Gold Seal of Approval and the American Heart Association/American Stroke Association's Heart-Check mark for Advanced Certification for Primary Stroke Centers. The Gold Seal of Approval and the Heart-Check mark represent symbols of quality from their respective organizations for excellence in stroke care. The hospital is also a member of Covenant Health's stroke hospital network, which links Covenant Health's member hospitals in providing our region with access to rapid diagnosis and treatment of stroke. In 2023 Morristown-Hamblen Healthcare System was the first hospital in the Lakeway area to begin offering robotic-assisted joint replacement procedures, launching the technology with a knee replacement procedure. This advanced technology allows surgeons to customize treatment plans for their patients and make adjustments if needed during the procedure. The technology often results in less pain and faster recovery for patients. INTRODUCING MORRISTOWN-HAMBLEN WESTTo meet the healthcare needs of Morristown and the surrounding area, in June 2023 Morristown-Hamblen opened a 50,000-square-foot outpatient facility, Morristown-Hamblen West, to serve the growing community. The facility includes a free-standing emergency department, primary care, diagnostic imaging, a breast center and physician offices. As an expansion of the only hospital in the area, the additional Morristown-Hamblen location reduces the need for residents to travel long distances for care and decreases the wait time at the main hospital, providing faster care to more members of the community.PARTNERING WITH THE COMMUNITY FOR BETTER HEALTHIn early 2023 the City of Morristown opened Morristown Landing, a new multi-purpose recreation and events center that provides wellness, sports, and recreation programs, along with space for meetings and community events. Covenant Health was selected as the exclusive health and wellness partner for Morristown Landing. During the first year of Morristown Landing's operation, Morristown-Hamblen Healthcare System has provided posters and health education materials; presented programs on heart health, breast cancer and other health topics, and hosted quarterly health fairs. Athletic trainers from Covenant Health's Sports Medicine program provide injury prevention expertise during tournaments and other sporting events.

    Expenses $123,541,264 · Grants $6,700 · Revenue $138,522,658

As filed on the 2023 return. The filer continues this part on Schedule O, which is not shown here.

Listed in Part VII

  • Gerald Boyd

    Director

    Total calculated
    $977
    From this org
    $0
    From related orgs
    $977
    Other
    $0
    Hours/week
    0 + 1 related

  • Willard Campbell MD

    Director

    Total calculated
    $0
    Hours/week
    0 + 1 related

  • Michael Casey MD

    Director

    Total calculated
    $0
    Hours/week
    0 + 1 related

  • Ronni Chandler

    Fmr Director (through June 2023)

    Total calculated
    $0
    Hours/week
    0 + 1 related

  • Mitchell Dickson MD

    Director

    Total calculated
    $796
    From this org
    $0
    From related orgs
    $796
    Other
    $0
    Hours/week
    0 + 1 related

  • Stephanie Flood

    Director

    Total calculated
    $808
    From this org
    $0
    From related orgs
    $808
    Other
    $0
    Hours/week
    0 + 1 related

  • James Gibson

    Director

    Total calculated
    $1,008
    From this org
    $0
    From related orgs
    $1,008
    Other
    $0
    Hours/week
    0 + 1 related

  • Edgar Gray

    Director

    Total calculated
    $1,054
    From this org
    $0
    From related orgs
    $1,054
    Other
    $0
    Hours/week
    0 + 1 related

  • Leslye Hartsell

    Director

    Total calculated
    $1,027
    From this org
    $0
    From related orgs
    $1,027
    Other
    $0
    Hours/week
    0 + 1 related

  • Donald Hickman

    Director

    Total calculated
    $1,498
    From this org
    $0
    From related orgs
    $1,498
    Other
    $0
    Hours/week
    0 + 1 related

  • Timothy Matthews

    Director

    Total calculated
    $1,196
    From this org
    $0
    From related orgs
    $1,196
    Other
    $0
    Hours/week
    0 + 1 related

  • Janice McKinley

    Director

    Total calculated
    $1,222
    From this org
    $0
    From related orgs
    $1,222
    Other
    $0
    Hours/week
    0 + 1 related

  • Dave Miller

    Director

    Total calculated
    $1,044
    From this org
    $0
    From related orgs
    $1,044
    Other
    $0
    Hours/week
    0 + 1 related

  • Bill Myers

    Director

    Total calculated
    $0
    Hours/week
    0 + 1 related

  • Alvin Nance

    Director

    Total calculated
    $1,044
    From this org
    $0
    From related orgs
    $1,044
    Other
    $0
    Hours/week
    0 + 1 related

  • Linda Ogle

    Director

    Total calculated
    $0
    Hours/week
    0 + 1 related

  • King Purnell

    Director/Chair

    Total calculated
    $1,630
    From this org
    $0
    From related orgs
    $1,630
    Other
    $0
    Hours/week
    0 + 1 related

  • Jorge Sanabria

    Director

    Total calculated
    $1,234
    From this org
    $0
    From related orgs
    $1,234
    Other
    $0
    Hours/week
    0 + 1 related

  • William Seale

    Director

    Total calculated
    $1,321
    From this org
    $0
    From related orgs
    $1,321
    Other
    $0
    Hours/week
    0 + 1 related

  • Cosby Stone

    Director

    Total calculated
    $1,595
    From this org
    $0
    From related orgs
    $1,595
    Other
    $0
    Hours/week
    0 + 1 related

  • Joe Sutter

    Director

    Total calculated
    $1,462
    From this org
    $0
    From related orgs
    $1,462
    Other
    $0
    Hours/week
    0 + 1 related

  • James Tramontana MD

    Director

    Total calculated
    $1,196
    From this org
    $0
    From related orgs
    $1,196
    Other
    $0
    Hours/week
    0 + 1 related

  • James D VanderSteeg

    President & CEO

    Total calculated
    $3,115,259
    From this org
    $0
    From related orgs
    $2,762,691
    Other
    $352,568
    Hours/week
    0 + 50 related

    Schedule J breakdown matched by us

    Base
    $0 + $1,523,002 related
    Bonus
    $0 + $1,039,500 related
    Other
    $0 + $200,189 related
    Deferred
    $0 + $322,565 related
    Nontaxable benefits
    $0 + $30,003 related
    Filer's total
    $0 + $3,115,259 related

  • John T Geppi

    Fmr EVP/CFO (through June 2023)

    Total calculated
    $995,771
    From this org
    $0
    From related orgs
    $971,426
    Other
    $24,345
    Hours/week
    0 + 50 related

    Schedule J breakdown matched by us

    Base
    $0 + $349,550 related
    Bonus
    $0 + $292,063 related
    Other
    $0 + $329,813 related
    Deferred
    $0 + $12,200 related
    Nontaxable benefits
    $0 + $12,145 related
    Filer's total
    $0 + $995,771 related

  • Joseph C Dolan

    EVP/CFO

    Total calculated
    $397,454
    From this org
    $0
    From related orgs
    $358,890
    Other
    $38,564
    Hours/week
    0 + 50 related

    Schedule J breakdown matched by us

    Base
    $0 + $284,875 related
    Bonus
    $0 + $60,000 related
    Other
    $0 + $14,015 related
    Deferred
    $0 + $29,667 related
    Nontaxable benefits
    $0 + $8,897 related
    Filer's total
    $0 + $397,454 related

  • Gordon E Lintz

    President & CAO

    Total calculated
    $557,832
    From this org
    $0
    From related orgs
    $534,235
    Other
    $23,597
    Hours/week
    50

    Schedule J breakdown matched by us

    Base
    $0 + $345,803 related
    Bonus
    $0 + $110,000 related
    Other
    $0 + $78,432 related
    Deferred
    $0 + $12,200 related
    Nontaxable benefits
    $0 + $11,397 related
    Filer's total
    $0 + $557,832 related

  • Amy E Herndon

    VP - Financial Services

    Total calculated
    $211,407
    From this org
    $184,672
    From related orgs
    $0
    Other
    $26,735
    Hours/week
    50

    Schedule J breakdown matched by us

    Base
    $123,295
    Bonus
    $25,000
    Other
    $36,377
    Deferred
    $5,716
    Nontaxable benefits
    $21,019
    Filer's total
    $211,407

  • Lisa M Kelley

    VP - Chief Nursing Officer

    Total calculated
    $208,663
    From this org
    $174,077
    From related orgs
    $0
    Other
    $34,586
    Hours/week
    50

    Schedule J breakdown matched by us

    Base
    $132,142
    Bonus
    $25,000
    Other
    $16,935
    Deferred
    $4,870
    Nontaxable benefits
    $29,716
    Filer's total
    $208,663

  • Robert J Drinnon

    Medical Physicist

    Total calculated
    $230,063
    From this org
    $191,837
    From related orgs
    $0
    Other
    $38,226
    Hours/week
    50

    Schedule J breakdown matched by us

    Base
    $191,561
    Bonus
    $0
    Other
    $276
    Deferred
    $6,079
    Nontaxable benefits
    $32,147
    Filer's total
    $230,063

  • Pamela S Western

    Pharmacist

    Total calculated
    $163,271
    From this org
    $140,540
    From related orgs
    $0
    Other
    $22,731
    Hours/week
    50

    Schedule J breakdown matched by us

    Base
    $140,097
    Bonus
    $0
    Other
    $443
    Deferred
    $4,348
    Nontaxable benefits
    $18,383
    Filer's total
    $163,271

  • Jacqueline S Lewis

    Clinical Nurse

    Total calculated
    $165,386
    From this org
    $131,333
    From related orgs
    $0
    Other
    $34,053
    Hours/week
    50

    Schedule J breakdown matched by us

    Base
    $130,520
    Bonus
    $750
    Other
    $63
    Deferred
    $4,862
    Nontaxable benefits
    $29,191
    Filer's total
    $165,386

  • Sarah G Ramsey

    Supervisor Pharmacy

    Total calculated
    $135,947
    From this org
    $122,744
    From related orgs
    $0
    Other
    $13,203
    Hours/week
    50

  • Deborah K Cox

    Shift Leader Clinical Nurse

    Total calculated
    $143,442
    From this org
    $119,618
    From related orgs
    $0
    Other
    $23,824
    Hours/week
    50

Compensation is as filed in Part VII: reportable pay from this organization and from related organizations, other compensation, and hours per week. The total, marked calculated, is our sum of the three dollar columns, with a blank column counted as $0; the form itself has no total. On a Form 990-EZ the columns are Part IV's instead, and on a Form 990-PF Part VIII's — compensation, contributions to benefit plans, and expense account — and the total sums those. A Schedule J breakdown is as filed: base pay, bonus, other, deferred compensation and nontaxable benefits from this organization, with any from related organizations beside each, and the filer's own total. It is shown with the Part VII listing of the same name on the same return. The form gives no key between the two, so that pairing is ours, and is marked matched by us.

Schedule J

Answered yes

  • 1a · Tax indemnification and gross-up payments
  • 1b · Written policy on the line-1a expenses
  • 2 · Substantiation required before reimbursing expenses
  • 4b · Supplemental nonqualified retirement plan

Answered no

  • 4a · Severance or change-of-control payment
  • 4c · Equity-based compensation arrangement
  • 5a · Pay contingent on this organization's revenues
  • 5b · Pay contingent on a related organization's revenues
  • 6a · Pay contingent on this organization's net earnings
  • 6b · Pay contingent on a related organization's net earnings
  • 7 · Other non-fixed payments
  • 8 · Paid under the initial-contract exception

The filer's explanations (Part III)

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 Morristown-Hamblen Hospital Association, 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, Line 4b
Covenant Health maintains a nonqualified deferred compensation ("NQDC") plan intended to support retention of President and CEO, James D. VanderSteeg, and EVP and CFO, Joseph C. Dolan (plan effective 8-1-2023). Employer contributions of $340,032 are reported as deferred compensation on Schedule J, Part II, Column C. Contributions along with 2023 earnings of $92,131 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). Please note that the amounts included in Part II, Column C as contributions to the NQDC plan for James D. VanderSteeg and other executive leaders are deferred but NOT received during the filing year. We report compensation in both the year earned and the year paid, as required by IRS guidelines; however, wages appear overstated due to dual reporting of compensation earned in one year and distributed in a subsequent year.

Part I's answers as filed. A line not listed was left unanswered; on lines 1a and 3 that means the box was not checked.

Grants on this return

No itemized grants to organizations on this return.

Related organizations on this return

Schedule R Part II: tax-exempt organizations related to the filer by control. It does not record shared board members or money.

Taxable family on this return

Schedule R Parts I, III and IV, as filed. These record ownership and control, not shared board members or money moved.

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

  • Boulevard ENT-Surgery Center LLC

    Physician services · TN

  • CHUC LLC

    Physician services · TN

  • Surgery Center of Oak Ridge LLC

    Surgical 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 · controlled entity

  • East TN Cardiovascular Surgery Group Inc

    C · Cardiovascular surgical practice · TN

  • TenHats LLC

    C · Data storage · TN

Provenance

Return type
form_990
Tax year
2023
Filed
13 November 2024
IRS schema version
2023v5.1
Source object
202413189349305556

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