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Banner Health SystemNew directions in healthcare

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Table of Contents

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Chairman's Letter

Defining New Directionsin Healthcare

Leadership

Tribute to Jim Crews

1999/2000 Profile

Communities

Banner Health Arizona

Banner Health West:

Banner Health Black Hills

Banner Health Colorado

Banner HealthNorthern Network

Free-Standing Locations

Financial Summary(urJfission

Our mission is to serve the health needs of communities both large andsmall across the nation in the nonprofit tradition. We do this by excelling inclinical care, quality service, financial stewardship and the creation of workenvironments where people can realize their full potential. Our success inthese areas will grow the organization for the benefit of the communitieswe serve and the people of Banner Health System.

O" r ' to io n

Banner Health System will be the nation's healthcare leader, setting thestandard for excellence and innovation. Our combination of organizationalstrength and healthcare leadership will be a magnet for others to join usin shaping the future of the industry.

CX airman 8s letter

Banner Health System is a new organization, with anew vision for the future. Yet it retains the underlyingstrengths that sustained Lutheran Health Systems andSamaritan Health System for many decades. We are stillfocused on people, excellence, integrity and communitypartnership. Lutheran's history of commitment to ruralcommunities and Samaritan's urban focus broadens ourdelivery systems and strengthens our voice among health-care decision makers. Joining 24,500 people in 14 statesapplies more talent and resources to our historical missionof serving communities in the nonprofit tradition.

But it's just the beginning. We want to form strategic partnerships withothers who share our view of the future-biotechnology and pharmaceuticalfirms, as well as other companies that are redefining the way we prevent,diagnose and treat disease. Other potential partners are technology companiesthat are creating entirely new ways of sharing information between patients andcaregivers, and between providers and payers.

If we are going to make Banner Health System something more than just thesum of two organizations we must leverage our strengths and create a singleorganization that others will want to join. The extent of integration achievedduring the past year has exceeded my expectations. I attribute our success toa sense of shared mission, values and commitment to building value for our"shareholders," the communities we serve. This proven ability to combineorganizational strengths and leadership will attract others who share ourvision of helping to define a new future for the industry.

More than ever, I am honored to be part of this.

Steven R. OrrChairman, President and CEO

1

Modern medicine shares floor (fi r A X eall carHtime with a Navajo medicine li~e/inin7.lte1iw &O irec/ions in 7ea/ carewoman as part of Page (Ariz.)

Hospital's commitment to

providing a comprehensive

healing environment.new - adjective - recent, modern; a beginningdirection(s) - noun - a guiding, governing or motivating purpose

Building a Strong Foundation

Our Care Services* Hospitals* Nursing Homes

& Skilled Nursing Units* Behavioral Health* Primary Care Clinics* Home Health* Hospice* Wellness

& Prevention Programs* Home Medical

Equipment* Occupational Medicine* Pharmacies* Laboratory Services* Assisted Living/Senior

Housing

Specialty Centers* Adolescent Treatment* Advanced Diagnostic

Imaging* Bone Marrow

Transplantation* Burn Treatment* Cancer Care* Cardiac Care* Children with

Special Needs* Medical Research* Outpatient Surgery* Orthopedics* Rehabilitation* Trauma Care* Urgent Care

2 * Women's Services

The foundation of Banner Health System rests on a rock-solid commitment tothe long-held nonprofit and community-focused mission of our founding partners:Phoenix-based Samaritan Health System and Lutheran Health Systems, Fargo,N.D. On this foundation we are building a new and significant national health-care presence.

United as Banner in September 1999, we represent one of the largest, nonprofithealthcare systems in the United States. Banner came together for strategic reasons.allowing Lutheran and Samaritan to combine resources, provide opportunities forexpansion and ensure long-term viability.

The architects of this new organization agreed on a structure to reinforce theorganization's stability and purpose:

* First and foremost, Banner will continue to preserve Samaritan's and Lutheran'slong-held missions of serving large and small communities. Since 1938.Lutheran was a leader in rural healthcare management across the country.From roots established in 1911, Samaritan grew into the largest healthcaresystem in Arizona.

* The new 15-member Board of Directors was drawn from the former boardmembers of Lutheran and Samaritan, plus an outside member. By structuringBanner as an acquisition of Samaritan assets by Lutheran, the new boardoversees a union that cannot be dissolved.

* Leadership was clearly defined, with Lutheran's Chairman, President and CEOSteve Orr serving in the same roles for the system overall, and Samaritan sPresident and CEO Jim Crews heading the new Arizona division.

* All Banner locations will share a standard approach to strategic planningthat guides decision making and resources by looking ahead over 12 quarters.This is driven by the corporate board's planning process and the BannerGuiding Principles.

* Banner leadership is committed to growing our national, nonprofithealthcare system.

Where We Are

Uniting the strong healthcare management expertise from our rural and urbansettings provides a base of knowledge that will offer a wider breadth of servicesto all the communities we serve. Integrated leadership teams share corporateresponsibilities between the Phoenix and Fargo offices. A smaller third office isplanned in Colorado to serve as the corporate headquarters, and also as meetingspace and a learning center for groups from around the system. Banner HealthSystem encompasses two main operating divisions; Banner Health Arizona andBanner Health West.

Efforts to create positive healingenvironments extend fromacute care to long-term care.The Banner hospital andnursing home in Torrington,

Wyo., are joined by a corridorwhich also houses a children's

daycare for employees. The

Goshen Care Center residentsare frequent visitors.

Banner Health Arizonacombines the former Lutheranand Samaritan locations fromthroughout the state, resulting inan expanded yet more efficientservice delivery model. Thedivision, one of the largestnon-government employersin Arizona, is guided by a21-member local operating board.

Banner Health West comprisesthe former Lutheran locationsin 13 states. These operationsinclude all free-standing facilitiesplus three regional networks;Banner Health Black Hills,Banner Health Colorado andBanner Health Northern Network.

Our Scope* More than 60 communities in 14 states* 24,500 Employees* 5,424 Beds* 30 Hospitals* 30 Nursing Homes/Skilled Nursing Units

Divisions* Banner Health Arizona'-Banner Health West

The West Division includes free-standinglocations and these networks:

. Banner Health Black Hills- Banner Health Colorado- Banner Health Northern Network

na

> N Banner Health West

Banner Health Arizo

3

Banner's community service

includes safety efforts like A New Brand of Healthcare11-9 iroora nor .n ---oorU IJ IT Ildl IL sedI al Pi Ul I progIr

in Phoenix.Our new name, developed by an internal team, symbolizes the union of twostrong organizations with compatible missions and values under the same bannerof leadership and excellence.

While keeping their local facility names, Bannerlocations are adopting the new logo and other identitypieces in ways that more closely associate them witheither a Banner network, division or the overall system. MceeThe symbol, which was also created internally, is M; ter

Ci aueHeaJth (ordo, .designed to appear as a banner waving into theshape of a heart, reflecting our mission of caring.

Commirmene

to £2u a /ityBanner services in40 communities areaccredited by theJoint Commissionon Accreditation ofHealthcare Organizations.

Defining, Improving Quality of Care

Before our partnership, both Samaritan and Lutheran had quality improvementprograms and monitoring systems in place to ensure and improve quality andefficiency of care. Together, we are integrating these programs and defininga common set of indicators.

A clinical information technology team has formed to look for ways to leverageexisting tools, for example, capitalizing on the former Samaritan's experiencewith an automated system for dispensing pharmaceuticals and supplies. Anotherexample is increasing system-wide emphasis on service excellence.

Banner's board of directors has established a committee on Quality and ClinicalInnovation to further integrate practices essential to providing total care.

One Organization, One Planning Process

Good planning contributes to balanced and predictable financial results thathelp ensure continued access to affordable financing and create a stable workenvironment. The Board of Directors use Banner's Guiding Principles to drivea standard approach to strategic planning across the system. This integratedapproach to planning strengthens our ability to identify and implementsystem-wide priorities and solutions, as well as to predict and meet communityneeds within budget. The operating plans generate assumptions 12 quartersinto the future and are revisited every quarter. Use of the same planning toolby all locations is moving integration forward at a rapid pace.

Initiatives Focus Resources, Foster Integration

Strategic initiative teams bring together people who represent diverse disciplinesto address both near-term critical issues and long-range issues important toBanner's future success. Like 12-quarter planning, the initiatives reflect ourGuiding Principles. Strategy development efforts that support the system-wideinitiatives are also taking place at the divisional, network and local levels.

McKee Medical Center

was instrumental in establishing

a community clinic and dental

office in Loveland, Colo.,

that serves more than

7,200 patients a year.

Specific outcome goals and measures set by the Banner Health System Boardof Directors for 2000 include the following:

Biotechnology

* Identify biotechnology breakthroughs and the implications for Banner.

* Expand the scope of The Rose Project, Banner's breast cancer geneticscreening and education program.

Workforce

* Create system-wide solutions for "growing our own" employees to meetchanging workforce needs.

* Develop innovative means of finding and recruiting qualified staff, includingan international approach.

Governance/Management

* Strengthen the strategic planning process throughout the organization, tyingoutcomes to the organization's Guiding Principles, mission, vision, valuesand other system-wide priorities.

* Integrate Banner's financial strategies and other functions across the system.

ilu din f GPrin cif ieAs* Leverage the System

* Maximize Assets

* Make the Vision = Reality

* Common Focus forIndividuals and theOrganization

* Concentrate on What TrulyMakes a Difference

Growth

* Develop a community model for revenue growth through new programs and services.

Delivery Model

* Integrate management teams and healthcare services in the Phoenix market.

* Develop programs, services and facilities responsive to growing comnlunity needs.

5

Combining Lutheran and

Samaritan under one banner in

the Phoenix metro area expands

community access to their

respective areas of expertise,

notably home care services and

behavioral health programs.

Above, Stacey Stevens is

.eating for three' through

home infusion nutrition.

(She and her husband Scott

are expecting twins.)

Jiv in V §a cIBanner charity care andcommunity service in 1999exceeded $47,415,000.

Building Value for Communities

Banner remains a nonprofit organization-our "shareholders" are thecommunities we serve. The partnership is already reaping benefits forthe organization, communities and employees.

Community benefits are especially apparent in the Phoenix-area market.Combining clinical services and sharing resources will enable Banner HealthArizona to place the appropriate services where they are needed while avoidingthe underutilization of expensive technologies and facilities.

For example, the former Lutheran'sstrong home care and hospiceprograms are expanding to patientsin the former Samaritan service areas.Likewise, Samaritan behavioralhealth services are becoming moreaccessible to patients of the Lutheranhospitals in the East Valley region.

Both systems were planning new thealthcare facilities in the Phoenix In 2000, total capital projects for facility

improvements, new construction andnowurbof planingert s ringl preencere i equipment purchases will reach $211,771,000.now planning a single presence there.Banner is also the major partner in anew cardiac hospital being completed onl the campus of Valley Lutheran Hospital.Elsewhere in the system, Banner is planning a new community hospital for thecity of Susanville, Calif.. with groundbreaking expected to occur in the springof 2001.

The combined investment capital and financial expertise represented by Banner allowsus to explore new financing options. With increased access to capital, funding forclinical services, new cquipnment and facility improvements is substantially enhanced.

Building Value for Employees

Banner Health System is rich in expertise and diversity. By joining forces,Banner employees are presented with new opportunities. They can transferto another Banner facility and, whether it is across town or across the country.they retain benefits and seniority.

Sharing the wealth of expertise these 24,500 peoplerepresent can improve quality across the systemand provide opportunities for implementingbest practices.

One major way that Banner is leveraging employeeknowledge and creativity is through the President'sGrant program, which provides funding forinnovative employee ideas and programs that canbe shared systemwide. An emphasis on leadershipdevelopment, teamwork, continuous learning andinnovation extends across all Banner locations.

Samaritan Behavioral HealthCenter-Scottsdale offershomelike surroundings forpeople with Alzheimer's disease.

wre

_w;

Human resources staff are working together todesign a new, integrated benefits program for 2001. This will give Banneremployees greater control over how to "spend" their benefits according to theirindividual and family needs. For example, an employee may elect more healthcoverage and less life insurance.

With our increase in size, Banner can now offer employees group discounts forseveral types of insurance. Samaritan and Lutheran's 401(k) retirement plans arebeing combined to give all employees a wide range of investment choices.

(Ja v iny §?IfpBanner has more than 17,000employee participants in our 401 (k)retirement programs, represenfing$404,000,000 in combined retirementfund strength.

Banner's Benefit of Scale

Several hundred thousand dollars in pharmaceutical costs have already beensaved in Arizona by leveraging our best practices in contract management. Withan expanded array of facilities and services, Banner is now more attractive asa managed care provider. Considerable savings were achieved by consolidatingstate association membership fees. Insurance and risk management staff areconsolidating Banner's insurance programs, resulting in greater coverage forthe premium dollar.

A decision will be made in 2000 to consolidate and maximize Banner'sgroup purchasing strength, which amounts to more than $250 million a yearin supplies alone. Our increased purchasing power is expected to reduceongoing supply costs across all Banner locations. Additional opportunitiesfor savings are being developed by integration teams across the system.

7

With locations in communities

across 14 states, shared

information technology tools

keep employees across the

system only a mouse click apart.

Making Health e-Technology Connections

Information technology staff are standardizing and integrating Banner's

computer network infrastructures. E-mail is already established across our

network of more than 8,000 personal computers. Banner's internal intranets

are in the process of becoming fully integrated, providing employees with

access to a wide range of online resources.

A technology steering committee evaluates existing applications for areas such as

human resources/payroll, patient accounting, materials management and electronic

patient records, and approves integrated information technology standards.

Wiring for the Web

Banner's Internet efforts are aligned with our goal of being the provider

people turn to for coordinated, accessible and comprehensive healthcare

services and information.

The short-term goals for Banner Internet development focus on site

content and integration of web strategies across the system. The long-term

goals are to build e-business applications and interactivity that promote

Banner sites, strengthen existing relationships and drive entirely new

e-business opportunities. This will ultimately increase interaction with

consumers who access our health services, as well as lower operating

costs and improve productivity.

IBanner Health Arizona's web site draws8,000 unique users a month and wasthe first in the state to broadcast a liveopen-heart surgery webcast.

www.BannerHealthAZ.comBanner's web site was the first inArizona to broadcast an open-heartsurgery in progress and to feature local

physician-led chat programs. The site is

building the Banner brand as the leadinglocal resource for health informnation.Banner Health Arizona partners withCox Interactive Media to generateand sponsor healthcare content forAccessArizona.com, the premierPhoenix Internet portal.

www.BannerHealth.comBanner Health System's Internet home page has overviews on each location,with links to local web sites and system-wide recruitment information. BannerHealth West has introduced a web template process that allows facilities toeasily build custom web sites promoting local programs and services. OurColorado web site, BannerHealthCO.com, links up two major pilot projects:A co-branding arrangement with Healtheon/WebMD provides consumer healthinformnation, and an e-commerce site, developed by Banner Health West staff,offers home medical equipment and health supplies.

Two of the more than 10,000Banner e-mail users illustratehow technology creates tiesacross the miles. At far left isJean Harms, Belle Fourche (S.D.)Health Care Center. Directly

above is Heather Newsum,Good Samaritan RegionalMedical Center, Phoenix.

A New Definition of Growth

Banner's multimarket diversity and size amplifies our national voice andstrengthens our ability to achieve our vision of joining with other health-relatedorganizations that share our view of the future.

Our potential future partners are not limited totraditional healthcarc systems. They could bebiotechnology, informnation/intranet technologyor medical technology companies-organizationsthat are transforming the way diseases are diagnosed,treated and, ultimately, prevented.

In this Internet age, we will have the ability toshare ideas throughout our organization and provideinformation to people in our communities in brandnew ways.

The future we are defining for Banner Health Systemreflects the values that made Samaritan and Lutheransuccessful for more than half a century.

Our values will remain the foundation for futurerelationships that fulfill our vision of becoming anational healthcare leader, one that sets the standardfor excellence and innovation.

)u r (aluesCompassionWe serve with caring and respect to maintain the dignityand enhance the well-being of each person.

IntegrityWe are honest and ethical in all that we do and say.

Emphasis on PeopleWe value all people as individuals and striveto meet their needs.

Community PartnershipWe participate with communities to build successfulhealthcare partnerships.

ExcellenceWe work to achieve excellence across all areasof our organization.

I

9

Je a l/e r s A ip

Board of Directors

Front Row Back Row

Quentin P. Smith, Jr. Wiltord A. CardonChairman, President & CEO, CEO & Owner,Employee Solutions, Inc., Cardon Companies,Phoenix, AZ Mesa, AZ

Susan Bartlett Foote, Esq.Associate Professor &Division Head of the HealthServices Research andPolicy Division/School ofPublic Health,University of Minnesota,Minneapolis, MN

Steven R. OrrChairman, President & CEO,Banner Health System,Fargo, ND & Phoenix, AZ

Ronald J. Creasman, M.D.Physician/Managing Partnerof Desert PulmonaryConsultants PLC,Mesa, AZ

Mark N. SklarManaging Director,DMB Associates, Inc.,Scottsdale, AZ

Rev. James R. BjorgeRetired Senior Pastor,First Lutheran Church,Fargo, ND

Front Row

William M. DwyerDivisional Vice President,Strategic Marketing,Abbott Health SystemsDivision,Abbott Laboratories,Abbott Park, IL

Larry S. Lazarus, Esq.Attorney,Lazarus & Associates,Phoenix, AZ

Barry A. Hendin, M.D.Physician,Phoenix NeurologicalAssociates,Phoenix, AZ

Merlin E. DewingFounder of Dewing FinancialServices LLC, Retired Partner& Chairman of KPMGBaymark LLC,Shorewood, MN

Back Row

Thomas F. MadisonPresident & CEO,MLM Partners,Minneapolis, MN

Martin L. ShultzVice President of GovernmentRelations, Pinnacle WestCapital Corporation,Phoenix, AZ

Richard N. HallManaging Partner,Sundance Products LLC,Fountain Hills, AZ

Michael J. FrickPartner/CPA,Kennedy & Coe LLC,Greeley, CO

Principal Corporate Officers

Front Row

Steven R. OrrChairman, President & CEO

Ronald R. BunnellExecutive Vice PresidentCFO

Back Row

David M. Bixby, Esq.Executive Vice PresidentGeneral Counsel

Craig J. BromanExecutive Vice President/CEOBanner Health West

Charles H. WelliverCEOBanner Health Arizona

JZ e OfPP ortuni~ to JJa e a bilerenc'e

Jim Crews, CEO of the formerSamaritan Health System for nearlya decade and of Banner HealthArizona since its inception inSeptember 1999, retired on May 1,2000, after a 36-year healthcarecareer. During his tenure, Jim oftensaid that what was important tohim was the opportunity to "makea difference." Under his caringinfluence, the ties binding oursystem to our communities aregrowing ever stronger. Becauseof his example and guidance,community service is an ongoingvalue and commitment at all levelsof Banner Health Arizona.

"Jim's legacy includes his abilityto bring disparate hospitals

together as a system and

to instill integrity into that

system. He's full of integrity,

so when he tells you something,

you know that's the way it is."

Wilford A. CardonVice Chairman of the BoardBanner Health System

"He has been a real visionary,

and he does the right thing for

the right reasons."

Martin ShultzBoard MemberBanner Health System

"In a not-for-profit, thecommunities you serve are

your 'shareholders.' Jim helped

the board understand that, and

the community is better served

as a result."

Jim Crews has made a tremendous

difference for a number of health-related

charities in Phoenix with missions

similar to Banner Health's. HomeBase

Youth Services named their mobile

clinic 'The Medical Crews Van" in honor

of Jim, who helped HomeBase procure

the van.

'When Jim came to Arizona he

immediately got involved in the

community. His contributions to

St. Vincent de Paul Free Clinicand other medical programs

for the poor have made a

true and lasting difference

in our community."

The Honorable Jane Dee HullGovernor of Arizona

"It was Jim's persistence that

brought strength to Samaritan

and his vision that brought us

[Banner Health System] together"

Steven R. OrrChairman, President & CEOBanner Health System

"He considers the way things

could be rather than how they

are, but he balances that vision

with a real understanding of

healthcare on a day-to-day basis.

He is a visionary."

Larry LazarusBoard MemberBanner Health System

"We [Banner Health Arizona]

are where we are today because

Jim insisted that we work as a

system. His ability to create and

lead a team has given us strength."

Charles WelliverChief Executive OfficerBanner Health Arizona

Mark SklarBoard MemberBanner Health System

11

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1999/2000 fPro/i/e

1999 Year-end Operating Statisticsfor Banner Owned, Leased and Managed Locations

154,805 Admissions (Acute, Behavioral, Skilled Nursing)

952,013 Outpatient Visits (Excluding ER)

437,203 Emergency Room Visits

319,326 Home Care Visits

92% Long-Term Care Average Occupancy

2000 Statistics (as of May 2000)

24,500 Employees

4,873 Medical Staff Membership

6,746 Volunteers

30 Hospitals

30 Nursing Homes/Skilled Nursing Units

5,424 Beds (Acute, Rehab, Behavioral, Skilled/Long-Term Care)

25 Home Care Agencies

26 Home Medical Equipment Locations

14 States

Banner Health ArizonaAll locations in Arizona, combining formerSamaritan and Lutheran facilities.

Banner Health WestAll locations across 13 states that were formerly Lutheran facilities.(HME = Home Medical Equipment)

ARIZONA

GilbertBanner Home Care, Hospice, HME,

Home InfusionGilbert PediatricsGlendaleBanner Home CareThunderbird Samaritan Medical CenterGoodyearEstrella Mountain Medical CenterMesaAllied Family CareDesert Samaritan Medical CenterLutheran Physician Hospital OrganizationLutheran Urgent CareMesa Lutheran HospitalValley Lutheran HospitalMiamiBanner Home Care, HospicePagePage HospitalPaysonSamaritan Family Health CenterPhoenixDesert Samaritan Urgent CareEntech, Inc.Good Samaritan Regional Medical Center/

Good Samaritan Care CenterSamaritan Occupational Health ServicesSamaritan PrimeCare NetworkScottsdaleSamaritan Behavioral Health Center/

Wendy Paine O'Brien Treatment CenterTempeCONTACTSonora Quest Laboratories/Laboratory

Sciences of ArizonaWickenburgWickenburg Regional Medical Center,

ClinicWilliamsWilliams Health Care Center

Corporate Offices

Banner Health SystemBanner Health West4310 17th Ave. S.W.Fargo, ND 58103(701) 277-7500, (800) 767-7429

Banner Health SystemBanner Health Arizona1441 N. 12th St.Phoenix, AZ 85006(602) 495-4000

Banner Health Black HillsSOUTH DAKOTABelle FourcheBelle Fourche Health Care Center, Clinic,

Banner Home CareCuster -Colonial ManorRapid CityMersco Medical HMESpearfishDavid M. Dorsett Health Care FacilityLookout Memorial Hospital, Clinic,

Banner Home Care, HospiceMersco Medical HMESturgisSturgis Community Health Care Center, Clinic,

Banner Home Care, Mersco Medical HMEFree-Standing ClinicNewell, SD

WYOMINGGillettePioneer Manor

Banner Health ColoradoCOLORADOBrushEast Morgan County Hospital, Clinic,

Banner Home CareGreeleyNorth Colorado Medical Center, Clinics,

Banner Home Care, HME, Home InfusionLovelandMcKee Medical Center, Clinics,

Banner Home Care, HMESterlingSterling Regional MedCenter, Clinic,

Banner Home Care, HMEFree-Standing ClinicsAult, Berthoud, Ft. Lupton, Johnstown,

Keenesburg and Windsor, CO

Banner Health Northern NetworkNORTH DAKOTABismarckMedEquip One HMECavalierPembina County Memorial Hospital,

Wedgewood Manor, Clinic, Home CareEnderlinHillcrest ManorFargoCountry Health HMERosewood on BroadwayVilla. MariaGrand ForksCountry Health HMEJamestownAnne Carlsen Center for ChildrenCentral Dakota VillageMedEquip One HMELisbonLisbon Medical Center, Home Care, Clinics, HMEValley CitySheyenneCare Center

MINNESOTA

Detroit LakesCountry Health HMEThief River FallsCountry Health HME

FREE-STANDING

ALASKAFairbanksFairbanks Memorial Hospital, Denali Center,

Home Care, HMESoldotnaHeritage Place, Home CareCALIFORNIASusanvilleLassen Community Hospital, Home CareIOWAStorm LakeBuena Vista County Hospital, Home CareKANSASMarionSt. Luke Hospital & Living Center,

Home Care, HMEOberlinDecatur County Hospital, Cedar Living Center,

Home Care, HMENEBRASKAOgallalaOgallala Community Hospital,

Home Care, HME

NEVADAFallonChurchill Community Hospital,

Home Care, Clinics, HMEFree-Standing ClinicFernley, NVLovelockPershing General Hospital

& Nursing Home

NEW MEXICOLos AlamosLos Alamos Medical Center, Clinics,

Home Care, HMEFree-Standing ClinicsEspanola and White Rock, NMOREGONPrinevillePioneer Memorial Hospital, Home CareRedmondCentral Oregon District Hospital,

Home Care

SOUTH DAKOTAEurekaEureka Health Care CenterGregoryGregory Healthcare Center, Home CareRapid CityClarkson Mountain View Guest HomeWesthills Village, Home CareWYOMINGCasperBanner Home CareCheyenneUnited Home Care, UnitedCare HMELaramieBanner Home CareTorringtonCommunity Hospital, Goshen Care

Center, Home Care, ClinicsWheatlandPlatte County Memorial Hospital,

Nursing Home, Home CareWorlandWashakie Medical Center. Home Care

�0

Banner Health Arizonais the largest and mostcomprehensive healthcareprovider in Arizona. The partner-ship of the former LutheranHealthcare Network and formerSamaritan Health Systemprovides greater opportunitiesto enhance and increase accessto services in the communitieswe serve.

Services in thePhoenix metro area

Allied Family Care500 West 10th Place, Suite 201Mesa, AZ 85201(480) 461-2575Owned (Joined 1996)Services: Family practice clinic

Banner Home Care1325 N. Fiesta Blvd., Suite 1Gilbert, AZ 85233(480) 497-5535Owned (Joined 1988)Services: Home care, homeinfusion, home medicalequipment, hospice (includingtwo hospice houses),complementary medicineBranches: Glendale,Miami/Globe

CONTACT1400 E. Southern Ave., Suite 800Tempe, AZ 85282(480) 730-3023Owned (Joined 1987)Services: Managed behavioralhealth, employee assistanceprograms, consultation/trainingBranches: Northwest Phoenix,Mesa, East Phoenix, Scottsdale,North Tucson, East Tucson,Lake Havasu City

Desert SamaritanMedical Center1400 S. Dobson RoadMesa, AZ 85202(480) 835-3000Owned (Joined 1968)Hospital beds: 361Skilled nursing beds: 166Behavioral health beds: 40Other services: Occupationalhealth clinic, pediatricemergency center

I3 anner je a//Il rizonaA division of Banner Health System

Pediatrician Michael Perlstein, M.D., discusses thefine points of medicine with Eli Maughan at GilbertPediatrics, which opened in the spring of 2000.

The Thunderbird Samaritan Medical Center's ServiceExcellence team believes fun stimulates learning.Here, Special Projects Administrator Kim Burke andElvis (Public Relations Representative John Tucker)play customer-service Jeopardy,a big hit with newemployees.

~~'V .7~~~I -'~r~1aN- V_, d I >-oThe 'Partners in Caring" program at Desert SamaritanMedical Center gives patients the opportunity to involvefamily members in their care.

A sentinal node biopsy,performed below by TroyBrinkerhoff, M.D., at MesaLutheran Hospital, has thepotential to ease patients'pain and minimize lymphnode removal.

Desert SamaritanUrgent Care4530 E. Ray RoadPhoenix" AZ 85044(602) 598-7500Owned (Joined 1992)Services: Urgent care,occupational health, outpatientphysical therapy, diagnosticradiology, lab

Entech, Inc.2504 W. Southern Ave.Tempe, AZ 85282(602) 747-9081Owned (Joined 1975)Services: Medical communi-cations, equipment maintenance,professional consulting

Estrella MountainMedical Center140 N. Litchfield Road, Suite 200Goodyear, AZ 85306(623) 932-1157Owned (Joined 1995)Services: Primary medical care

Gilbert Pediatrics120 S. Val Vista DriveGilbert, AZ 85296(480) 733-6500Owned (Joined 2000)Services: Pediatric care

Good SamaritanCare Center901 E. Willetta St.Phoenix, AZ 85006(602) 223-2000Owned (Joined 1989)Long-term care beds: 120Other services: Hospice

Good SamaritanRegional Medical Center1111 E. McDowell RoadPhoenix, AZ 85006(602) 239-2000Owned (Since 1911)Hospital beds: 485Skilled nursing beds: 30Rehabilitation beds: 30Behavioral health beds: 22Other services: Graduatemedical education, Level 1Trauma Center, transplantationservices, high-risk obstetrics/multiple-birth Center ofExcellence, acute rehab,transfusion-free surgery andmedicine program, Banner HealthResearch Institute, Medlink

Under the watchful eye of administratorKathy Bollinger, the new Heart Hospitalnears completion on Valley LutheranHospital's campus.

CNA Kimmetha Johnson,Mesa Lutheran Hospital,is completing her nursingeducation. In exchange forher commitment to work at thehospital following graduation,Banner Health Arizona iscovering a substantial portionof Kimmetha's tuition.

I

Lutheran Urgent Care1151 N. Gilbert RoadMesa, AZ 85213(480) 610-0688Owned (Joined 1996)Operated by: Banner HealthArizona and Lutheran PHOServices: Care for minoremergencies

Mesa Lutheran Hospital525 W. Brown RoadMesa, AZ 85201(480) 834-1211Owned (Joined 1967)Hospital beds: 299Skilled nursing beds: 60Rehabilitation beds: 16Other services: Women's center,Generations senior mental healthprogram, orthopedic program

Samaritan BehavioralHealth Center Scottsdale/Wendy Paine O'BrienTreatment Center7575 E. EarIl DriveScottsdale, AZ 85251(480) 941-7500Owned (Joined 1993)Behavioral health beds: 82Alzheimer's unit beds: 18Services: Inpatient/outpatientbehavioral health, chemicaldependency/eating disorderservices for all ages

Samaritan OccupationalHealth Services1441 N. 12th St.Phoenix, AZ 85006(602) 528-3120Owned (Joined 1996)Services: Care/monitoring of workinjuries, executive health program

Samaritan PrimeCareNetwork3141 N. 3rd Ave.Phoenix, AZ 85013(602) 640-3550Owned (Joined 1994)Services: Third-party payercontracting and practicemanagement

Sonora QuestLaboratories/LaboratorySciences of Arizona1255 West WashingtonTempe, AZ 85281(602) 685-5550Joint Venture (SQL) with QuestDiagnosticsOwned (LSA) (Joined 1980)Services: Major medicallaboratory services

698anner Jkjea/ A 'rirz onaA division of Banner Health System

Wade Patten, R.N.,reviews patient chartsat a nontraditionalnurses' station atPage Hospital.

Cindy Arteaga interprets a conversation between Sarah Metzger,R.N., and new mom Adeletta Lopez at Good Samaritan RegionalMedical Center. Banner Health's Hispanic Customer ServiceInitiative is an integral part of patient care at four Valley hospitals.

Because of the DesertSamaritan UrgentCare Center, NatashaDeomarain, M.D., MaryRhees, R.N., and otherstaff can care for minoremergencies, savingAhwatukee residents along drive to a hospitalemergency room.

�1

Tern Leveton, M.S., talkswith kids at the WendyPaine O'Brien TreatmentCenter on the SamaritanBehavioral Health Center-Scottsdale campus.The 40-bed unit is one ofonly a handful of inpatientprograms in the Valleythat is devoted to the careof children and teens.

Positron Emission Tomography(PET) is an imaging system thatuses radioactive substances toproduce color pictures of variousorgans at work. Good SamaritanRegional Medical Center is theonly facility in Arizona to offerPET. It is used with increasingfrequency for cancer patientsand is a preferred technologyfor Alzheimer's disease research.Operators handle the radioactivesubstances remotely usingrobotic arms.

Thunderbird SamaritanMedical Center5555 W. Thunderbird RoadGlendale, AZ 85306(602) 588-5555Owned (Joined 1969)Hospital beds: 232Behavioral health beds: 50Other services: Occupationalhealth clinic, hospice

Valley Lutheran Hospital6644 E. Baywood Ave.Mesa, AZ 85206(480) 981-2000Owned (Joined 1984)Hospital beds: 231Other services: Women's center,orthopedic program, heart hospitalto open in fall 2000

Services outside thePhoenix metro area

Page Hospital501 N. NavajoPage, AZ 86040(520) 645-2424Leased (Joined 1982)Hospital beds: 25Other services: Home care

Samaritan FamilyHealth Center-Payson708 Coeur d'Alene, Suite APayson, AZ 85541(520) 474-1714Owned (Joined 1988)Services: Primary care center,occupational health clinic

Wickenburg RegionalMedical Center520 Rose LaneWickenburg, AZ 85390(520) 684-5421Leased (Joined 1998)Hospital beds: 23Long-term care beds: 57Other services: Clinic, wellness

Williams HealthCare Center301 S. 7th St.Williams, AZ 86046(520) 635-4441Managed (Joined 1986)Services: Primary and urgent care

Other Banner HealthArizona Services* Lutheran Physician

Hospital Organization* Nurse Placement Services* Surgicenter Joint Ventures

17

I

Banner Health Westcomprises former Lutheranlocations across 13 states.These operations include allfreestanding locations andthree regional networks:Banner Health Black Hills,Banner Health Colorado andBanner Health Northern Network.

Banner HealthBlack Hills930 10th St.Spearfish, SD 57783(605) 642-4641Owned (Created 1993)Services: Network supportservices and resources forBanner communities in theBlack Hills region of SouthDakota and eastern Wyoming

Banner Home Care(800) 276-8420(Spearfish/Belle Fourche)(800) 527-4741 (Sturgis)Owned (Joined 1993)Services: Home care includesskilled nursing and therapies,personal care, psychiatric nursing,specialized nursing services,infusion therapy and a hospiceAgencies: Spearfish, SturgisHH branch office: Belle Fourche

Belle FourcheHealth Care Center2200 13th Ave.Belle Fourche, SD 57717(605) 892-3331Owned (Joined 1993)Long-term care beds: 77Other services: Clinic, adultdaycare, assisted living centers

Colonial Manor1065 Montgomery St.Custer, SD 57730(605) 673-2237Leased (Joined 1993)Long-term care beds: 76

David M. DorsettHealth Care Facility1020 10th St.Spearfish, SD 57783(605) 642-2716Owned (Joined 1993)Long-term care beds: 112Other services: Alzheimer's unit,in-house rehab services

]annerjea/h( 7f~el,A division of Banner Health System

M3 an ner ea/IX§3la ci l(ills

Ruth Hodge takes a momentto catch up on her reading atSunpointe Senior Estates, a14-unit assisted living center,which opened on the campusof Belle Fourche Health CareCenter in late 1999. Sunpointeresidents have access to a carecontinuum that includes a clinic,long-term care, rehabilitation andancillary services.

New tile, indirect lighting, furnishings and other remodeling detailsmake the dining hall at David M. Dorsett Health Care Facility a veryinviting area for activities.

The Banner symbol graces thenew entrance to Lookout MemorialHospital in Spearfish, S.D.

Lookout Memorial's new surgerycenter has the latest in technologyand environmental touches such as Mike Maher, R.T, begins a scan using newlyindirect lighting in the recovery area. installed CT equipment at Lookout

_ Memorial Hospital.

Lookout MemorialHospital1440 N. MainSpearfish, SD 57783(605) 644-4000Owned (Joined 1963)Hospital beds: 32Other services: Clinic, women'shealth center

Mersco Medical(800) 234-3890 (Rapid City/Sturgis)(800) 725-8213 (Spearfish)Owned (Joined 1987)Services: Home medical equip-ment sales and rental, includingin-home delivery, education,service and repairsBranches: Rapid City, Spearfish,Sturgis

Pioneer Manor900 W. Eighth St.Gillette, WY 82716(307) 682-4709Owned (Joined 1993)Long-term care beds: 150Other services: Senior apartments

Sturgis CommunityHealth Care Center949 Harmon St.Sturgis, SD 57785(605) 347-2536Owned (Joined 1993)Hospital beds: 30Long-term care beds: 84Other services: Clinic

Other Banner HealthBlack Hills ServicesFamily Medical Center ClinicsBelle Fourche, Newell, Spearfish,Sturgis

Senior Apartments andAssisted Living* Belle Fourche Adult Daycare* Belle Fourche

Senior Living Center* Heritage Acre Apartments,

Sturgis* Hickory House Congregate

Living, Spearfish* John Burns Apartments,

Belle Fourche* Pioneer Manor, Inc., Gillette* Ponderosa Apartments,

Spearfish* Prairie Hills Transit

& Spearfish Nutrition Site* Sunpointe Senior Estates,

Belle Fourche

19

Sturgis Community Health Care CenterPT. assistant Linda Schlosser and CurtStockert, 0T., help recovering strokepatient Bob Greear with his balance.

Pioneer Manor Nursing Home serves asa real-life classroom where local nursingstudents obtain required clinical hours andexperience Banner Health's resident--entered approach to care. Under thesupervision of hernstructor, student -iurse Sarah Greenhecks resident

3race Lorber'se)lood pressure; _

ME

Banner Health Colorado2010 16th St.Greeley, CO 80631(970) 346-9200Owned (Created 1995)Services: Network supportservices and resources forBanner communities in north-eastern Colorado and thesurrounding region

Banner Home Care(800) 752-4074Owned (Joined 1979)Services: Home care includesskilled nursing and therapies,personal care, psychiatric nursing,specialized nursing servicesand the Safety Call programBranches: Fort Morgan/Brush,Greeley, Loveland, Sterling

Banner Home MedicalEquipment Services(800) 752-4074Owned (Joined 1988)Services: Home medical equip-ment sales and rental, includingin-home delivery, education,service and repairsBranches: Greeley, Loveland,Sterling

Banner HomeMedSolutions(800) 256-5845Owned (Joined 1999)Services: Infusion therapies,nebulizer medicationsdelivered in the home

East MorganCounty Hospital2400 W. EdisonBrush, CO 80723(970) 842-6200Leased (Joined 1954)Hospital beds: 15Other services: Clinic, rehabcenter, Level IV Trauma Center,warm water therapy

McKee Medical Center2000 Boise Ave.Loveland, CO 80538(970) 669-4640Owned (Joined 1951)Hospital beds: 88Skilled nursing beds: 20Other services: Clinics, wellnesslibrary and conference center,dual purpose cath lab, Level IlIlTrauma Center, warm watertherapy

:8 a nner:eA division of Banner Health System

M(Rann er rjealfN

CO/ r a alo

A new teleradiologynetwork allows physiciansin small outlying Coloradocommunities to senddiagnostic scans to NorthColorado Medical Centerand receive expertreadings right away. Whilein Brush, Colo., Dr. GarethRoberts, above, consultswith Dr. Gary Bauerle inGreeley, above right.

North Colorado Medical Center is focusing resources on keyservices to keep pace with Greeley's ever-changing healthcareneeds. For example, a mini baby boom is taking place at NCMC'sMonfort Family Birth Center, where the number of newbornsincreased 5 percent in 1999.

There's a new tool to help diagnose cardiacconditions in Loveland, Colo. McKee MedicalCenter's new dual C cardiovascular imagingsystem (an X-ray machine with dual arms) allowsthe heart care team to get a clearer picture ofconditions within arteries and veins.

20

�M

North ColoradoMedical Center1801 16th St.Greeley, CO 80631(970) 352-4121Leased (Joined 1995)Hospital beds: 306Skilled nursing beds: 20Other services: Clinics, burnunit, Level it Trauma Center,comprehensive communitycancer center, heart care, AirLife

Sterling RegionalMedCenter615 Fairhurst St.Sterling, CO 80751

Leveraging expertise is (970) 522-0122commonplace within Banner Owned (Joined 1938)Health Colorado. Here Hospital beds: 36orthopaedic surgeon Darrel Other services: Clinic, Level IlIlFenton, Sterling, examines a Trauma Center, dialysis, cardiacpatient at East Morgan County rehabHospital in Brush.

Practice Resources/PHOs

Integrated Practice ResourcesProviding practice managementservices to 12 practices with48 practitioners

Banner Health PHONorthern ColoradoPhysician-Hospital Organization366 physicians

Maggi Basinger facilitates a class in North Phylis Helgoth's driving passion High PlainsColorado Medical Center's newly remodeled for home care nursing inspired Healthcare Alliance, Inc.Learning Resource Center. The 'new" Center her co-workers in Banner Greeley-based Physicianalso includes enhanced space and resources Health Colorado to nominate Hospital Organizationfor individual learning. her for the nursing profession's 203 physicians

equivalent of the AcademyAward-the Florence Mountain ShadowsNightingale Award. Medical Association, Inc.

Loveland-based PhysicianHospital Organization136 physicians

NorthCarePreferred Provider Networkserving northeastern Colorado550 physicians

Other Banner HealthColorado Services

Banner Staffing Services-i , _. _Free-Standing Clinics

- Ault Family Care* Berthoud Family Physicians* Fort Lupton Family Medicine* Johnstown Family Physicians* Keenesburg Family Medical Clinic* Family Physicians of Windsor

21

Banner HealthNorthern Network(701) 277-7500 jya J e a t //4es /Owned (Created 1996) b n n er a I (f esServices: Network support A division of Banner Health Systemservices and resources forBanner communities in North | AxFDakota and western Minnesota a thn e r)(e a II to r 1t e r n Jye /wv or

Anne CarlsenCenter for Children301 7th Ave. N.W.Jamestown, ND 58401(701) 252-3850Owned (Joined 1940)Residential student beds: 47Services: Medical/therapyservices, advanced care unitfor medically fragile children,residential care, assistivetechnologies, developmentaland vocational education

Central Dakota Village501 19th St. N.E.Jamestown, ND 58401(701) 252-5660Owned (Joined 1962)Long-term care beds: 100 __Other services: Senior Ruby Jenstead, -apaertmervices: Sen ior a Country Health mobilityapartments sales specialist based in Fargo,

uses a scooter herself as anextension of her 'office," a special

Country Health needs-adapted van.(701) 235-0175Joint Venture with DakotaHeartland Health System(Joined 1987)Services: Home medicalequipment sales and rental,including in-home delivery,education, service and repairsBranches:* ND: Fargo, Grand Forks* MN: Detroit Lakes,

Thief River FallsSatellites:* ND: Lisbon, Wahpeton* MN: Fergus Falls, Ortonville

Hillcrest Manor110 Hillcrest DriveEnderlin, ND 58027(701) 437-3544Owned (Joined 1984)Long-term care beds: 62

.1

Buddy the dog is a buddy to Cleo Thompson and all theresidents at Hillcrest Manor in Enderlin, N.D. Live-in petscontribute to the homelike environment at Hillcrest.

-1 �E

Twenty years ago, theResident Council at VillaMaria, led by MargaretLewis, center, approvedthe idea of starting anon-site child daycare tofoster intergenerationalcontact and to supportworking mothers at Villa.In early 2000, the nursinghome hosted a reunionfor all current and pastdaycare kids, severalof whom have embarkedon healthcare careerpaths.

For students at the Anne Carlsen Centerwith hearing disabilities, normal soundsmay seem distorted or too loud, ormay get tuned out altogether. SpeechLanguage Pathologist Rachel Coppinuses special techniques and sound-generating equipment known as DigitalAuditory Aerobics to "retrain" the hearingof students like Josef Kramlich, 13,to improve his ability to take in andprocess sounds.

Lisbon Medical Center905 Main St.Lisbon, ND 58054(701) 683-5241Owned (Joined 1952)Hospital beds: 20Long-term care beds: 45Other services: Clinics, home care

MedEquip One626 6th St. N.Bismarck, ND 58501(701) 255-0093Joint Venture with MedCenter OneHealth System (Joined 1999)Services: Home medical equipmentsales and rental, including in-homedelivery, education, serviceand repairsSatellite: Jamestown, ND

Pembina CountyMemorial Hospital& Wedgewood Manor301 Mountain St. E.Cavalier, ND 58220(701) 265-8461Leased (Joined 1953)Hospital beds: 29Long-term care beds: 60Other services: Clinic, home care,senior apartments

Rosewoodon Broadway1351 BroadwayFargo, ND 58102(701) 277-7999Owned (Joined 1938)Long-term care beds: 102

Sheyenne Care Center979 Central Ave. N.Valley City, ND 58072(701) 845-8222Owned (Joined 1938)Long-term care beds: 170Other services: Geri-psychiatricunit

Villa Maria3102 S. University DriveFargo, ND 58103(701) 293-7750Owned (Joined 1984)Long-term care beds: 138Other services: Manage seniorapartments, on-site adult daycareand children's daycare

23

Sheyenne Care Center's new Geri-PsychUnit is the only nursing home setting inNorth Dakota designed specifically forthe long-term care needs of elderlyadults transitioningfrom a mentalhealth setting.

qla s l a I8annerjeallXWe's /Fairbanks MemorialHospital/Denali Center1650 Cowles St.Fairbanks, AK 99701H: (907) 452-8181NH: (907) 458-5100Leased (Joined 1968)Hospital beds: 142Behavioral health beds: 20Long-term care beds: 90Other services: Home care,home medical equipment, cancercenter, sleep disorders lab,cardiac rehab, Alzheimer's unit

Heritage Place232 Rockwell St.Soldotna, AK 99669(907) 262-2545Owned (Joined 1986)Long-term care beds: 48Other services: Home care

Ca /i/o r n ia

Lassen CommunityHospital560 Hospital LaneSusanville, CA 96130(530) 257-5325Owned (Joined 1994)Hospital beds: 28Long-term care beds: 31Other services: Home care

Jow a

Buena VistaCounty Hospital1525 West 5th St.Storm Lake, IA 50588(712) 732-4030Managed (Joined 1999)Hospital beds: 54Other services: Home care

iIa n s as

A division of Banner Health System

ire e-(flanacin yocalions

Pat Schooley, R.T., andDr. Alan Feen preparea patient for linearaccelerator radiationtherapy at the FairbanksCancer TreatmentCenter, which openedin April 2000. The$9.5 million state-of-the-art center wasconstructed by theGreater FairbanksCommunity HospitalFoundation.

Until last year, Susanville patientswho needed infusion treatment

V had to travel 90 miles to Reno, Nev.Now Cliff Cornwell is spared travel by

receiving chemotherapy infusionsat Lassen Community Hospital from

Abby Lork-Hector, R.N., who developedthe new service.

Decatur County Hospital& Cedar Living Center810 W. ColumbiaOberlin, KS 67749(785) 475-2208Leased (Joined 1950)Hospital beds: 24Long-term care beds: 50Other services: Home care,home medical equipment

Ted Baker has the rightname for cooking, one ofmany activities includedin a new Adult Day HealthCare program LassenCommunity Hospital isstarting at a downtownlocation. The new servicewill offer respite for families,as well as an alternativeto some nursing homeplacements.24

Fallon patients who need home medical equipment and supplies can pick them upat the hospital's new on-site store, staffed by (shown standing above left to right)Jessica Bracher, Judy Norcutt, Jeff Silva and Brenda Smith. The new store benefitspeople with diabetes like Maudie Keller, seated with Connie Honea, R.N. Connieand others at Churchill Community Hospital developed one of only four AmericanDiabetes Association-certified education programs in Nevada, and the only onelocated in a non-urban hospital.

A "controlled burn" that was started nearLos Alamos, N.M., rapidly became a wildfirethat forced the evacuation of the region'sapproximately 25,000 inhabitants. At left is theLos Alamos Medical Center on May 8, 2000,two days before the hospital and communitywere evacuated. Even before all the smoke hadcleared, LAMC staff led by Administrator PaulWilson, left center, returned to develop andexecute a plan to get the facility up and runningagain. Help came from all over Banner, includinga disaster recovery team from Banner Health

Arizona. LAMC employees who suffered lossesreceived cash assistance from concerned co-workersacross Banner. Staff at the corporate office in Fargokept LAMC's payroll and other processes rollingand maintained a 24-hour call center for LAMC'sdisplaced employees.

St. Luke Hospital& Living Center1014 E. Melvin St.Marion, KS 66861(316) 382-2177Leased (Joined 1968)Hospital beds: 22Long-term care beds: 32Other services: Home care,home medical equipment

jIel rasIa

OgallalaCommunity Hospital300 E. 10th St.Ogallala, NE 69153(308) 284-4011Leased (Joined 1987)Hospital beds: 41Other services: Clinic, homecare, home medical equipment

J,/ova a

ChurchillCommunity Hospital801 E. Williams Ave.Fallon, NV 89406(775) 423-3151Owned (Joined 1990)Hospital beds: 40Other services: Clinics, homecare, home medical equipmentFree-standing clinic:Fernley Physicians Center

PershingGeneral Hospital& Nursing Home855 Sixth St.Lovelock, NV 89419(775) 273-2621Managed (Joined 1995)Hospital beds: 5Long-term care beds: 32

_JAJe wJJexico

Los AlamosMedical Center3917 W. RoadLos Alamos, NM 87544(505) 662-4201Owned (Joined 1964)Hospital beds: 47Other services: Clinics, homecare, home medical equipment,outpatient physical therapy centerFree-standing clinics:LAMC Family Care Centersin Espanola and White Rock

Survey results showed that ifLos Alamos Medical Center madcomplementary medicine servicesavailable, a high percentage ofpeople would use them. Manynow coming to see Silvia Kha.M.D., a recently recruited boacertified family practitioner wblends traditional treatmentswith alternative approaches r

such as acupuncture.

25

�0

(Orego n

Central OregonDistrict Hospital1253 N. Canal Blvd.Redmond, OR 97756(541) 548-8131Managed (Joined 1994)Hospital beds: 48Other services: Home care, MSO

Pioneer MemorialHospital1201 N.E. ElmPrineville, OR 97754(541) 447-6254Managed (Joined 1996)Hospital beds: 35Other services: Home care,hospice

Jo A/ j~aI vaClarkson Mountain ViewGuest Home1015 Mountain View RoadRapid City, SD 57702(605) 343-5882Managed (Joined 1993)Long-term care beds: 52

Eureka HealthCare Center109 H Ave.Eureka, SD 57437(605) 284-2145Owned (Joined 1938-1989and since 1993)Long-term care beds: 62

GregoryHealthcare Center400 Park St.Gregory, SD 57533H: (605) 835-8394NH: (605) 835-8296Owned (Joined 1962)Hospital beds: 26Long-term care beds: 58Other services: Home care

Westhills Village255 Texas St.Rapid City, SD 57701(605) 342-0255Managed (Joined 1993)Long-term care beds: 44Other services: Home care,assisted living, senior apartments

I3 anner ](ea/aX /estA division of Banner Health System

Jree -jfandlin7_Joca/ons

If approved by a physician, patients

at Community Hospital in Torrington,Wyo, receive a complimentary

i relaxation massage.

I -HEALTH MW POtr

New construction at Eureka (S.D.) Health

Care Center added food service space

and a new "convenience kitchen," an idea

shared from other Banner communities.

The Westhills VillageRetirement CommunityFoundation purchased an

automatic blood pressuremonitor for use byresidents as well

as employees.

26

Banner Home Care(307) 634-5168Owned (Joined 1987)Agencies: Casper, LaramieAlso manages United MedicalCenter Home Care Servicesin CheyenneServices: Home care includesskilled nursing and therapies,personal care, infusion therapy,psychiatric nursing and specializednursing services

Laramie Home Care nurse RuthMonroe pays an early morning visitto four-month-old Kalob Mikesell tomonitor his weight. Kalob has severereflux which can keep him fromholding food in his stomach.

Special Touch CoordinatorJohn Olenyik, above right,and Activity Assistant SarahDeBolt, above left, havestarted a Cancer SupportGroup to help people likeGoshen Care Center residentAlbert Morgan deal with hisnewly diagnosed disease.Sarah recently emergedvictorious from her owntwo-and-a-half-yearbout with a rareform of cancer.

Community Hospital2000 Campbell DriveTorrington, WY 82240(307) 532-4181Owned (Joined 1950)Hospital beds: 36Other services: Clinics,home care

Goshen Care Center2009 Laramie St.Torrington, WY 82240(307) 532-4038Leased (Joined 1963)Long-term care beds: 75Other services: Evergreen Courtindependent living

Platte County MemorialHospital & Nursing Home201 14th St.Wheatland, WY 82201(307) 322-3636Leased (Joined 1955)Hospital beds: 43 5

Long-term care beds: 43Other services: Home care

UnitedCare HomeMedical Equipment(800) 935-0621Joint Venture with UnitedMedical Center, Cheyenne WY(Joined 1999)Services: Home medicalequipment sales and rental,including in-home delivery,education, service and repairs

WashakieMedical Center400 S. 15th St.Worland, WY 82401(307) 347-3221Leased (Joined 1949)Hospital beds: 30Other services: Home care

27

I - ___ �N ____ �E

3financia/(funmmary

1999* 1998*

Sources of Funds

$2,267,310,000

825,716,000

130,873,000

666,153,000

$3,890,052,000

$2,003,539,000

718,447,000

123,085,000

744,533,000

$3,589,604,000

Inpatient Revenue includes nursing care, tests,X-rays, drugs and food services

Outpatient Revenue includes emergency care,outpatient surgery and related services

Long-Term Care Revenue

Other Revenue includes investments, home care services, medicalequipment sales, gain on sale of facilities and assets, and other sources

Total Revenues

Contractual Discounts & Charity Care

(2,142,816,000) (1,811,308,000)

$1,747,236,000 $1,778,296,000

Includes the difference between amounts billed to patients and residentsand payments received from third-party payers such as Medicare,Medicaid and insurance companies, and the amounts written off forthose who qualify for charity care

FUNDS AVAILABLE FOR PATIENT CARE

Application of Funds

$846,562,000

731,318,000

25,738,000

73,523,000

70,095,000

$785,703,000

652,422,000

27,479,000

70,085,000

242,607,000 (')

Salaries and Benefits

Other Expenses include physician fees, unpaid accounts,and utility, supply and maintenance costs

Interest, the cost of borrowed funds

Depreciation Expenses for buildings and equipment

Excess of Revenues over Expenses applied to capital expendituresand other financial requirements

FUNDS USED FOR PATIENT CARE$1,747,236,000 $1,778,296,000

For fiscal years ended December 31

"I Includes gain on sale of facilities

Writing and DesignBanner Health Communications, Fargo and Phoenix

Principal PhotographyJohn Borge Photography

PrintingKaye's Printing, Inc.

A copy of the 1999 audited financial statement isavailable upon request. Send requests to:

Director of Corporate FinanceBanner Health SystemP.O. Box 6200Fargo, ND 58106-6200

Banner Health SystemNew directions in healthcare

4310 17th Ave. S.W.Fargo, ND 58103

(701) 277-7500, (800) 767-7429

www.BannerHealth.com

1441 N. 12th St.Phoenix, AZ 85006

(602) 495-4000

www.Bannerl-IcaIthAZ.com