Covenant Health is a 501(c)(3) organization based in Knoxville, Tennessee, registered in 1996, with $235,666,950 in FY2024 revenue. CharityIndex grades it C, and it directs about 88% of spending to programs.
Revenue (FY2024)
$235.7M
▲ 13.8% vs prior year
Health median: $840K
Expenses (FY2024)
$203.0M
Net assets
$887.4M
Employees
1,587
Rated on 4 of 4 criteria.
Held down by its weakest criterion — a strong score on one criterion can't hide a weak one.
How the rating works →Measures how much of every dollar spent actually reaches programs, plus what it costs to raise $100 of donations. The worse of the two measures sets the letter (85%+ to programs is an A; under $15 to raise $100 is an A), averaged over the three most recent filings. For Covenant Health: 88% to programs · $183 to raise $100 earns a F on this criterion. See the exact thresholds →
Measures whether the organization is built to last: how many months its reserves would cover expenses (3+ months earns an A-range score, but hoarding 5+ years of budget is capped) and whether it runs a surplus or a deficit. For Covenant Health: 52 mo reserves · +14% margin earns a A on this criterion. See the exact thresholds →
Checks how the organization is run, from its own Form 990: an independent board majority, a board of five or more, conflict-of-interest, whistleblower and document-retention policies, and independently audited financials. The share of disclosed checks that pass sets the letter. For Covenant Health: 6 of 6 checks met earns a A+ on this criterion. See the exact thresholds →
Counts five disclosure signals: a recent filing, a mission statement, program descriptions, a listed website, and the full expense breakdown. More disclosure, better letter. For Covenant Health: 5 of 5 disclosure signals earns a A+ on this criterion. See the exact thresholds →
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Covenant health is the parent organization in a community-owned health care system in east tenn.
Business office. see schedule o for additional details.business office: expenses - $15,179,357; revenue - $15,179,357knoxville business office services is the cbo (centralized business office) for covenant health providing accounts receivable management for fort sanders regional medical center, parkwest medical center, fort loudoun medical center, leconte medical center, methodist medical center, morristown-hamblen hospital association and roane medical center. these services include, but are not limited to, customer service, payment collection, financial posting, refund processing, and insurance billing and follow-up.during 2017, cbo submitted over 1,051,900 insurance claims totaling in excess of $4,102,244,600. bad debt expense for 2017 was approximately 2.4% of gross revenue with bad debt recoveries/collections in excess of $12,865,600. the cbo handled over 128,300 incoming phone calls, followed-up on over 723,900 open accounts and processed over 3.16 million financial transactions.
Health information management. see schedule o for additional details.health information management: expenses - $9,465,502; revenue - $9,465,502.the central health information management (him) department encompasses all areas of traditional medical records, including transcription, coding, release of information, a 24/7 call center, central scanning, records preparation, regulatory compliance, clinical documentation improvement, and privacy protection. services are provided for acute care hospitals, both inpatient and outpatient; home health; physician offices; and behavioral health. the objective of him is to provide comprehensive services that are available to all covenant health hospitals and facilities on a 24/7 basis. this enables the hospitals and facilities to provide more efficient and timely service at less cost. in 2017 the him department transcribed over 63.1 million lines, scanned over 11.8 million pages, and coded 2,322,510 records.
In addition to the services previously mentioned, support provided by covenant health to its member facilities takes on many other forms, some examples of which are:* executive leadership, strategic planning, and other planning at the system and organizational level* financial, management and advisory services* third party reporting* integrity compliance program* real estate management* risk management* internal audit* asset and liability related treasury management functions* procurement* clinical quality improvement* marketing * human resources * centralized management of plant engineering and construction team* external reportingother services and activities conducted by covenant health directly benefit patients and members of the communities served by the supported organizations. some services are aimed at improving the operational efficiency of and the quality of care provided by the supported organizations, such as the production of sterile packs. covenant health sterile solutions produces surgical sterile packs for distribution to covenant health's supported organizations. the use of custom built sterile packs helps reduce surgical pack supply costs, reduce inventory levels, and minimize waste in keeping with the organization's green initiatives. along with those achievements, sterile packs also help reduce setup time, leaving more time for treating patients, and with fewer items to open, reducing the risk of contamination.other centralized services are provided by the corporate human resources division. this division is responsible for system-wide programs, policies and procedures, regulatory and legal compliance, and assists with the hiring process for all system employees. other services provided are standardized benefit design and administration, leadership development, succession and continuity, employee relations and retention, and clinical and non-clinical skill development.through the learning and leadership development (lld) division, human resources provides both e-learning and classroo
Revenue grew from $119.0M (FY2013) to $235.7M (FY2024) across 12 reported years.
Financial snapshot
Operating margin
13.9%
Revenue exceeded expenses in the latest fiscal year.
Total assets
$2.0B
Total liabilities
$1.1B
Net assets
$887.4M
Salaries & benefits
$112.9M
56% of expenses
Board members
20
19 independent
| Fiscal year | Revenue | Expenses | Net assets | Total assets | Form |
|---|---|---|---|---|---|
| 2024 | $235,666,950▲13.8% | $203,004,800▲6.0% | $887,405,464▲28.5% | $1,956,038,753▲8.6% | 990 |
| 2023 | $207,141,823▼6.0% | $191,450,181▲6.2% | $690,842,387▲17.5% | $1,801,246,321▲3.4% | 990 |
| 2022 | $220,269,899▲17.0% | $180,206,350▲10.5% | $588,011,596▼36.0% | $1,741,953,217▼9.6% | 990 |
| 2021 | $188,217,463▲0.9% | $163,022,804▲1.5% | $918,442,485▲27.2% | $1,927,401,864▲9.7% | 990 |
| 2020 | $186,599,540▼28.1% | $160,638,163▲4.7% | $721,833,216▲14.0% | $1,756,557,265▲7.2% | 990 |
| 2019 | $259,416,121▲34.2% | $153,436,488▼7.8% | $633,092,774▲26.2% | $1,638,320,485▲18.2% | 990 |
| 2018 | $193,250,266▲4.7% | $166,435,527▲29.0% | $501,812,947▼25.4% | $1,386,644,162▼11.2% | 990 |
| 2017 | $184,539,673▲44.7% | $129,063,137▲1.3% | $672,587,046▲28.7% | $1,562,028,002▲9.8% | 990 |
| 2016 | $127,567,527▼4.9% | $127,392,929▲13.1% | $522,398,598▲45.8% | $1,422,118,030▲15.5% | 990 |
| 2015 | $134,207,604▼7.6% | $112,630,072▲0.7% | $358,233,802▼3.3% | $1,231,025,759▲4.1% | 990 |
| 2014 | $145,249,747▲22.0% | $111,872,633▲6.0% | $370,495,787▲0.6% | $1,182,082,407▲2.6% | 990 |
| 2013 | $119,049,882 | $105,539,371▲3.4% | $368,361,438▲16.3% | $1,151,924,672▲3.0% | 990 |
| 2012 | — | $102,116,391▲3.4% | $316,632,104▲7.6% | $1,117,847,303▲1.7% | 990 |
| 2011 | — | $98,714,468▲11.1% | $294,226,405▼8.9% | $1,099,528,246▲5.8% | 990 |
| 2010 | — | $88,851,361 | $323,093,802 | $1,038,866,299 | 990 |
Original Form 990 PDFs (the Form column) are served by ProPublica Nonprofit Explorer, as filed with the IRS. Create a free account to download the CSV report.
Highest-paid: James D Vandersteeg — $2,880,556 (1.42% of total expenses)
| Name | Title | Hours/week | Compensation |
|---|---|---|---|
| James D Vandersteeg | President & Ceo | 50 | $2,880,556 |
| Michael R Belbeck Jr | Evp-hosp Ops | 50 | $976,075 |
| M Douglas Campbell Jr | General Counsel | 50 | $874,804 |
| Joseph C Dolan | Evp/cfo | 50 | $861,693 |
| Jon-david Deeson | Evp - Physician Enterprises | 50 | $693,902 |
| Amanda G Halford Md | Svp - Chief Medical Officer | 50 | $685,012 |
| Keith N Altshuler | President/cao - Fort Sanders Reg | 0 | $659,599 |
| Debra A Welch | Svp - Human Resources | 50 | $629,172 |
| William C Clabough | Svp - Chief Development Officer | 50 | $595,648 |
| Gordon E Lintz | President/cao - Morristown-hamblen | 0 | $564,436 |
| Devan C Johnson | President/cao - Parkwest | 0 | $562,166 |
| William M Ward | Svp - Chief Information Officer | 50 | $546,146 |
| Jeremy H Biggs | President/cao - Methodist Med Ctr | 0 | $530,098 |
| Debra R Honey | Svp - Chief Nursing Officer | 50 | $529,114 |
| Teresa A Giles | Fmr Svp - Finance (through May 2024) | 50 | $458,845 |
| Kathleen F Zitzman | Chief Compliance Officer | 50 | $396,574 |
| Wesley C Halford Md | Medical Director Physician | 50 | $389,543 |
| Philip V Schmidt | Director - Internal Audit | 50 | $118,339 |
| Leslye Hartsell | Director | 1 | $1,124 |
| Cosby Stone | Director | 1 | $1,113 |
| Contractor | Services | Paid |
|---|---|---|
| Cardinal Health | Pharmacy Management | $56,389,537 |
| Vaya Workforce Solutions LLC | Contract Labor | $39,290,846 |
| Maxorplus Ltd | Pharmacy Management Services | $34,736,836 |
| Morrison Mgmt Specialists Inc | Cafeteria Management | $10,877,108 |
| Oracle | Maintenance | $9,342,455 |
13 grants totaling $314K in FY2024. All grants made by Covenant Health →
| Recipient | Purpose | Amount |
|---|---|---|
| Road Runners Club of America | Sponsorship of fundraiser marathon | $61,948 |
| United Way of Greater Knoxville Inc | Support for interfaith health clinic | $60,000 |
| Covenant Health Foundation | Support for fundraisers benefitting covenant health hospitals | $52,000 |
| Boys & Girls Clubs of the Tennessee Valley | General support | $36,500 |
| Honorair - Knoxville Inc | Sponsorship for two flights | $20,000 |
| Leadership Knoxville Inc | General support | $16,000 |
| Emerald Youth Foundation | General support | $12,500 |
| Knoxville Academy of Medicine Foundation | General support | $11,000 |
| American Heart Association Inc | General support | $10,000 |
| Pellissippi State Community College Foundation | Support for center for math & science | $10,000 |
| Knoxville Area Urban League | Leadership development | $8,750 |
| Region II Emergency Medical Service Directors Association | Sponsorship of program for emergency mgmt service directors | $8,250 |
| Random Acts of Flowers | General support | $7,000 |
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Data for Covenant Health (EIN 62-1646734) comes from the IRS Business Master File and e-filed Form 990 returns, via CharityIndex. Figures reflect what the organization reported to the IRS for each fiscal year.