ANNUAL REPORT 2014

A LETTER FROM

Our PresidentDear Friends and Colleagues,

It is hard to believe another year has passed. This year has been one of accomplishments, growth and change. With the health care industry, change is inevitable, but we view it as an opportunity to see and do things differently, to have a greater impact on the patients and their families who trust us with their care.

As we enter into our next fiscal year, I am proud to say we are a stronger organization. Over the past year, we have worked hard to be transparent and build relationships with our community, our physicians, and our colleagues. We have improved the quality of care we deliver to those who visit HSHS St. Anthony’s Memorial Hospital. As a result, I can say confidently that our patients are safer.

We are strategically focusing on growth of services across the life-span, and increasing access to acute care and ambulatory sites. For example, in Fiscal Year 2014, we opened our Convenient Care clinic, expanded our Home Care services across 20 counties, and started to provide Hospice services. We are also strong financially. We have successfully increased the value we provide, with improved quality and services while being good stewards of our resources and reducing the cost of care. We control our future.

We have also enhanced the “patient experience.” When a patient comes to St. Anthony’s, we want them and their family members to feel special and to receive exceptional care all around – from the person that registers them, to the nurse and technician that provides their care, to the housekeeper that cleans their room, to the person that delivers their delicious meal, to those who work behind the scenes. Each and every one of us impacts the care and services we deliver to those who place their trust in us, and choose St. Anthony’s.

I am excited by the progress I have seen over my first year as President and CEO of St. Anthony’s Memorial Hospital. Mahatma Gandhi once said, “You must be the change you wish to see in the world.” I believe we are doing just that. We have a positive story to tell our community. We are St. Anthony’s Memorial Hospital and we make a difference!

Health to You and Yours,

Theresa J. RutherfordPresident and CEO St. Anthony’s Memorial Hospital

BOARD OFDIRECTORS

John Kingery Chairperson

Dot Behrns, APN, FNP-BC

Sister Ritamary Brown, OSF

Sister Marybeth Culnan, OSF

Timothy Gray, MD

Tom Henderson

Dean Keller

Theresa Rutherford

Tom Wegman

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Dear Friends and Colleagues,

2014 marked a milestone for health care in the United States as it was the first year uninsured Americans could enroll in health exchanges under the Affordable Care Act. As more people access health care, Hospital Sisters Health System continues to enhance the reliability and value of care we provide to our patients while keeping focused on the unique needs of each individual we have the privilege of serving.

In this Annual Report, we highlight some of the ways we are serving our patients and their families through our high quality, Franciscan health care ministry. Our accomplishments this past year include implementing new programs to restore health to our patients, updating the environments in which we heal, increasing the effectiveness and efficiency for how we deliver care, and working collaboratively with others to improve the health status of our communities.

Our accomplishments all have one thing in common: they were achieved so we could better serve the individual who comes to us for help at a vulnerable time in his or her life. Whether it’s a process improvement initiative in the Emergency Room, online access to medical records, a multi-million dollar renovation project, or a training program for Spiritual Care colleagues, the goal is to ensure each patient we encounter has the best experience during their care and the optimal outcome for their health.

To that end, our colleagues and physician partners embrace the patient experience. We are no longer content to focus on improving patient satisfaction. While we continuously strive to exceed our patients’ expectations during their time with us, we also seek to get them actively involved in the care they are receiving at our hospitals and clinics. As we live out our Core Values of Respect, Care, Competence and Joy, we engage our patients so that we can better understand their perspective, their unique needs, and their anxiety and fears.

As we continue our healing ministry, we look to the example of our patron saint, St. Francis of Assisi, who cared for lepers and the sick with a smile on his face and the love of Christ in his heart. The care he provided was a sacred bond with that patient that we seek to emulate.

On behalf of the Hospital Sisters Health System family, we are grateful for the opportunity to serve our patients, their families and our communities in the healing tradition of Jesus Christ and St. Francis of Assisi.

Sincerely,

Mary Starmann-Harrison Sister Mary Mollison, CSAPresident and CEO Board ChairHospital Sisters Health System Hospital Sisters Health System

HOSPITAL SISTERS HEALTH SYSTEM

Annual Report Message

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FULFILLING

Our MissionOur Mission is “to reveal and embody Christ’s healing love for all people through our high quality Franciscan health care ministry.” The Mission ties right into our Vision that “St. Anthony’s Memorial Hospital, a growing regional medical center, partners with talented physicians and health care professionals to provide exceptional quality and compassionate healing to each person and community we serve.”

Our Mission and Vision are not just statements – they define everything that we do and say. To saturate these messages throughout our organization, we placed wall art of our Mission, Vision, and Core Values of Respect, Care, Competence and Joy, in various locations throughout the main hospital campus and in outreach locations this past year. They help to reinforce in the minds of our colleagues, Medical Staff, patients and visitors the reason that we do what we do.

Colleagues and physicians who demonstrate our Mission and Values each and every day were nominated for our annual Values Award. They, along with Dr. Charles Runde are living examples of our Core Values.Congratulations to them all!

Four years ago, all HSHS hospitals, the System Service Centers and the HSHS Medical Group adopted a unified visual identity that features the Tau Cross within an open circle. Part of our logo included the tagline “An Affiliate of Hospital Sisters Health System.” Because our hospital

RESPECTLynda WhiteMedical Care

CARE Donna SmithMedical Care

COMPETENCE Karen Finfrock

Laboratory

JOY Eileen Springer

Laboratory

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and health system continue to evolve to best meet the needs of our patients by integrating the delivery of care with our physician partners and other clinical enterprises, we decided to replace the affiliate tagline with “HSHS” in front of our name. Going forward, our full hospital name will be “HSHS St. Anthony’s Memorial Hospital.” It may be a new first name, but it is the same family of care you have always known.

Our ministry of faith also defines who we are – we are proudly continuing in the footsteps of the Hospital Sisters of St. Francis that founded St. Anthony’s. In

demonstration of this faith, we partnered in May 2013 with St. Anthony High School on a program called “Window to the Womb” which allowed high school students an opportunity to see the development of life while in the womb. The high school religion students were studying morality, especially issues of respect for the dignity of human life. Four mothers in various stages of pregnancy volunteered to have ultrasounds that the students observed, which allowed the students to watch how a baby develops through the months of pregnancy. We felt it was important to assist with this program since at St. Anthony’s, we believe each and every human life is a precious gift. Through our advanced technology, we were able to show in great detail a baby’s development in the womb, helping to foster respect for all life.

Golden Circle Nutrition (Meals-On-Wheels) donation to ensure that seniors continue to receive a home-delivered meal on the 5th day of the week.

Community Service Excellence Award from CEFS Economic Opportunity corporation for continually seeking new ways to support the agency with the intent to better enable them to help people and change lives.

St. Anthony’s Wound Healing Center received the Center of Excellence Award for the second year in a row for a 95% patient satisfaction rate and 96% healing rate.

DEVELOPING

Our People

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Our colleagues, Medical Staff and volunteers are our most valuable resource. Without their support and sharing of their gifts, we could not grow and develop the services that we offer to those in our region. They truly make a difference in the lives of people each and every day. As such, their input is important to our organization as we move forward together.

This past year, we created a new way for our colleagues to voice their opinions or provide comments to Administration through our “Colleague Town Halls.” In these quarterly meetings, colleagues have the opportunity to receive an update on hospital happenings from Theresa Rutherford, President and CEO, as well as ask questions that they have. This past year, we have increased the number of times the Colleague Town Halls are offered, including during night shift, as well as have begun recording one of the sessions so that if a colleague cannot attend, they can view it online.

Our colleagues are also welcomed at any time to phone, email or stop by Theresa’s office if they have a topic

they would like to talk about. Theresa has an open door policy so that anyone who has a question is welcomed to come by her office. These open lines of communication have also been developed through monthly Birthday Celebrations that Theresa holds with colleagues whose birthdays are being celebrated that month. Colleagues are invited to have breakfast or lunch with Theresa, and receive a small gift and a cupcake since they “take the cake!”

Two other people who we are blessed to work with who “take the cake” were named Effingham Daily News’ 2014 Co-Citizens of the Year: Dr. Ruben Boyajian, Medical Director of Women’s Wellness and Cancer Care Services, and Carol Toney, RN, Nursing Services. Dr. Boyajian was honored for his numerous civic endeavors and leadership with the volunteer organization that operates the Effingham Performance Center, along with his beautiful gingerbread house creations. Carol was named for her tireless volunteer leadership and assistance with community organizations, and for her commitment to mission trips taken to Central and South America. Both

Photo courtesy of Ed Baumgarten

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Dr. Boyajian and Carol are well-deserving of this honor and we appreciate their commitment to this community and elsewhere.

This past year saw the continued growth of our Medical Staff. We welcomed five new physicians to our Active Medical Staff this past year: Jason Frost, MD, Anesthesiology; William Manzo, MD, PhD, MBA, Radiology; Millie Nelson, MD, Obstetrics/Gynecology; Didi Omiyi, MD, Orthopedics; and Bernard Rerri, MD, Orthopedics. In addition, we began a new partnership with Infinity-MEDS, who assumed management responsibilities for emergency care to our patients in our ER. Infinity-MEDS physicians are board certified and residency trained in emergency medicine or have years of emergency medicine experience.

Another exciting expansion of our Medical Staff this past year was the launching of our Hospitalist program. In March 2014, we welcomed Louis Schwing, MD, as our first Hospitalist. As a Hospitalist, he delivers inpatient care while working in partnership with primary care providers to ensure the best care of hospitalized patients. We are grateful we a can offer this level of dedicated exceptional inpatient care for residents of our region.

Photo courtesy of Ed Baumgarten

The first Career Fair was hosted at St. Anthony’s to encourage applicants to come to the hospital and speak to department leaders about position openings.

The STAR (Striving Together to Achieve Results) Program was implemented to recognize colleagues, physicians, and volunteers who bring exceptional care to our patients.

Colleague Turnover Improved in Fiscal Year 2014 to 21.8% from 24.8% to FY13

PATIENT CARE INFORMATION

FY 2014

Patients Admitted..........................................5,096

Adult & Children Patient Days ..................................................... 18,789

Babies Delivered ................................................. 711

Emergency Visits .........................................23,891

Home Care Visits ........................................ 20,384

Other Outpatient Visits ........................ 185,466

Surgical Procedures ......................................8,213

Clinic Visits ...................................................... 17,247 Pain Management ....................................... 2,766 Prairie Heart at St. Anthony’s ..............7,464 Wound Healing Center ............................ 7,017

OTHER FACTS OF INTERESTVolunteer Service Hours .......................... 17,153

Total Number of Colleagues .......................748

Meals Served ................................................200,742

Laundry Pounds ..........................................789,142

Recycling Pounds ....................................320,960

Home Care Miles Driven......................403,181

ADVANCING

Our Quality

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At St. Anthony’s, we are continually advancing the quality we provide to our patients as well as enhancing their experience so they receive the exceptional service that they deserve and that we are proud to deliver.

We are pleased to share that in the fall of this year, we were recognized by the Centers for Medicare and Medicaid Services (CMS) for our performance in several areas related to high quality and patient safety. The Hospital Value-Based Purchasing Program (HVBP) was introduced in 2010 as part of the Affordable Care Act and rewards hospitals for exceptional performance in their treatment of Medicare patients. The program’s design penalizes hospitals with the worst performance by withholding reimbursement funds and rewards high performers by giving them a portion of the penalty dollars from other institutions. The program evaluates hospitals on how well they deliver the correct care to patients with common illnesses like heart attacks,

pneumonia, and heart failure, as well as looking at patient satisfaction and how efficiently the care is delivered.

CMS recognized St. Anthony’s as being in the top 25% of hospitals, meaning we not only avoided a potential penalty of over $1.6 million, but received an additional 0.4% increase in payment for Medicare patients. This additional reimbursement is less about our receiving funds back for the care we provided, and more about having the funds to continue to advance quality care for our community.

Another portion of the HVBP looks at how often patients have to return to the hospital within 30 days of being hospitalized. Readmissions are a key driver of cost and often reflect a failure to continue to care for patients after they leave the hospital. Our care for our patients doesn’t stop when they leave our hospital. We work closely with area rehabilitation and assisted living centers, expanded

Over 600 colleagues participated in the Patient Experience Video committing to “The Moments that Make a Lasting Memory” and proving that We Are St. Anthony’s... and We Make a Difference.

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our Home Care services, and partner with our physicians and patients to make certain that the patients’ plan for care doesn’t stop at our door. Our collaborative efforts have led to a 23 percent reduction in readmissions this year. We will continue to look at ways to improve the health of our area residents when in the hospital and throughout their life.

Our efforts at improving quality and enhancing our patients’ experience have not gone unnoticed by outside organizations. For the third year in a row, our Wound Healing Center received the Robert A. Warriner Center of Excellence Award from Healogics, for outstanding quality care and patient satisfaction. By meeting these

high quality standards, they also received the Center of Distinction Award, the fourth year in a row they were given this distinguished honor.

Our Center for Interventional Pain Management was also recognized as a winner of the 2013 Guardian of Excellence Award by Press Ganey Associates, Inc. Each year, Press Ganey Associates, Inc., who conducts the hospital’s patient satisfaction surveys, highlights outstanding work of their clients who strive to improve the patient experience and raise the bar on performance annually. The Center for Interventional Pain Management received this award for reaching the 95th percentile for patient satisfaction,

an achievement that demonstrates their commitment to providing their patients with exceptional care.

This year we also underwent our triennial Joint Commission survey. As an independent, not-for-profit organization, The Joint Commission accredits and certifies more than 20,500 health care organizations and programs in the United States. We received our accreditation for the hospital and for our Home Care and Hospice services. This accreditation and certification is recognized nationwide as a symbol of quality that reflects our commitment to meeting certain performance standards.

As a result of our survey, we were recognized by The Joint Commission as a 2013 Top Performer on Key Quality Measures®. This recognition is for excellence in accountability measure performance shown to improve care for certain conditions. The measure sets which we were recognized for included:• Heart Attack• Heart Failure• Pneumonia• Surgical Care

We are one of only 1,224 hospitals in the United States to achieve the distinction as a 2013 Top Performer.

All this demonstrates that the residents of our area can be assured that by choosing St. Anthony’s, they are receiving high quality, safe, and exceptional care, close to home.

A Welcome Video is now shown to each admitted patient and helps elevate expectations and accountability around safety and experience.

Empathy Training was completed by all colleagues teaching the importance of listening and showing understanding to all we encounter.

WAYNE

WASHINGTON

SHELBY

ST. CLAIR

�St. Elizabeth’s

Belleville

RICHLAND

MOULTRIE

MONTGOMERY

MARION

Home Care & Hospice Services Home Care Services

MADISON

JEFFERSON

JASPERFAYETTE

EFFINGHAM

CUMBERLAND

CRAWFORD

COLES

CLINTONCLAY

CLARK

BOND

�St. Anthony’s

E�ngham

�St. Joseph’s

Breese

St. Joseph’sHighland

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GROWING

For You

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St. Anthony’s has been a long-standing part of Effingham and surrounding communities. For over 139 years, we have provided quality, exceptional care to those who come to us for care. The reason that we have remained such a strong institution is because we have continued to grow to meet the needs of our communities.

One of the largest growth opportunities this past year was the expansion of our Home Care service in collaboration with our Sister hospitals, St. Joseph’s Breese and St. Joseph’s Highland, to provide home health services across the HSHS Southern Illinois Division service area. Our Home Care Services began 14 years ago and served nine counties. With this expansion, Home Care now serves communities in 19 counties.

Our Hospice Program, which launched last year, also expanded their service from six counties to now being available in 13 counties. Hospice offers supportive, compassionate care that can bring peace, comfort and dignity to a patient in their last days of life. Our

Hospice staff make the patient as physically, emotionally, and spiritually comfortable as possible with minimal disruption to normal activities.

As a continuation of our commitment to offer area residents added convenience and improved access to outpatient and urgent care services, we opened a Convenient Care Clinic in June 2014. The clinic provides services late-afternoon and evening hours on weekdays, and on weekends for non-emergency patients. These hours help us improve access to health care for those patients who do not have a primary care provider or

when the provider is not able to see them. We also offer lab, radiology and pre-surgical testing in this facility for patients’ added convenience.

St. Anthony’s offered the first Community Town Hall presentation to the public. Theresa Rutherford, President and CEO, spoke to the community about the future of health care, the expected effects on St. Anthony’s, and shared our vision for moving forward.

The future expansion that we anticipate with much excitement is our collaboration with the Effingham Park District and the City of Effingham to house a Wellness Center in the new Richard E. Workman Sports & Wellness Complex. We will be locating our outpatient therapy services within the complex, improving access for our patients and setting the stage for the expansion of our community wellness services. The anticipated opening of the facility is fall 2015.

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Gross Revenue FY 2014

Earned from Services to Patients ........................................................................................................................................273,560,701

Less Contracted Allowance .............................................................................................................................................<$159,893,094>

Net Revenue ...................................................................................................................................................................................$113,667,607

St. Anthony’s Spent

Salaries & Colleague Benefits ................................................................................................................................................$43,279,216

Medical, Surgical and Nutritional Supplies ..................................................................................................................$15,564,880

Purchased Services ...................................................................................................................................................................... $19,610,801

Professional Fees & Other Expenses ................................................................................................................................ $11,652,308

Insurance & Depreciation ............................................................................................................................................................$7,387,572

Utilities ...................................................................................................................................................................................................$1,234,497

Interest on Long-Term Debt .........................................................................................................................................................$364,235

Capital Equipment & Construction ..................................................................................................................................... $6,308,496

Restricted for Future Patient Services & Capital Needs ..........................................................................................$8,265,602

Total Cost of Patient Treatment & Service Development ..................................................................................$113,667,607

St. Anthony’s has also committed significant resources in serving the Medicare population. The cost (determined using a cost charge ratio) of providing services to primarily elderly beneficiaries of the Medicare program, in excess of governmental and managed care contract payments was $6,804,449 for year ended June 30, 2014.

Please refer to additional community support totaling nearly $7 million dollars on page 13.

COMMUNITY SUPPORT Through Stewardship

CARING For Our Community

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At St. Anthony’s, our care for area citizens is not limited to their presence within our facility. In the tradition of our founding Sisters, we are committed to improving the health of the entire community as a whole.

One of ways that we fulfilled our commitment this past year was through a contribution to the C.E.F.S. Golden Circle Nutrition Program (GCNP) to cover the fifth days of Meals-On-Wheels in the communities of Effingham, Beecher City, Clay City, Dieterich, Louisville, Ramsey,

and Vandalia through the remainder of their fiscal year, September 30, 2014. Without this funding, meal services to senior citizens would have been cut to four days per week and homebound clients would not have had a home delivered meal and check-in with the volunteers on the fifth day. We made this contribution because, as health care experts, we know how very important it is for seniors to have a nutritious meal on a daily basis, particularly those with other conditions such as diabetes and wounds

that need healing. The personal contact between the volunteers and the recipient of the meals also positively affects their psychological well-being. This is why our contribution was so important.

This contribution to the Golden Circle Nutrition Program led to St. Anthony’s being named one of 16 organizations who received the Community Service Excellence Award from the C.E.F.S. Economic Opportunity Corporation Board of Directors. We were grateful for the award, which was received for continually seeking new ways to support the C.E.F.S agency with the intent of better enabling them to help people and change lives.

Community Benefit

COMMUNITY SUPPORT

CARING For Our Community

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Community Benefit

Caring for our community also involves making sure that they have the health insurance they are eligible for if they need medical care. This past year, we took steps to educate the local community about the Affordable Care Act (ACA) and the Health Insurance Marketplace so that those in need of health insurance would have the information they needed on how to enroll. We sponsored a seminar on the Affordable Care Act at the Effingham Senior Center, along with distributing ACA brochures, informational pocket cards, and posters throughout the hospital, and on our hospital Web site. We also assisted local small businesses by sending a letter to owners regarding the ACA, directing

them to the “The SHOP Marketplace” on our hospital Web site. Information was also available to our patients and family members about in-person counseling services at local agencies.

Persons Net Community Served Benefit Expense

Benefits for The Poor

Charity Care at Cost 2,852 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $1,855,242Unpaid Cost of Medicaid and Other Public Programs 15,543 . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$3,966,054Total Benefits for the Poor 18,395 . . . . . . . . . . . . . . . . . . . . . . . . $5,821,296

Benefits for the Broader Community

Community Health Services 8,654 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 502,715Health Professions Education 254 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 333,981Other (Cash & In-Kind Contributions to Community Groups) 3,455 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 42,777Community Building Activities 210 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 26,042Total Benefits for the Broader Community 12,573 . . . . . . . . . . . . . . . . . . . . . . . . . $ 905,515

Total Community Benefit 30,968 . . . . . . . . . . . . . . . . . . $6,726,811

TOUCHING Young LivesOur youth are the future of our community, and as such, we are committed to assisting them in exploring future career opportunities. For the second year in a row, junior and senior students from Altamont High School’s Advanced Health Class took part in a “hybrid” job shadowing opportunity at St. Anthony’s. Through this class, the students are given the opportunity to learn about different health care fields, since they do not have the option of taking the popular Health Occupations course at our hospital. The students were able to experience a variety of jobs and learned how each one plays a role in caring for patients.

This past year, we once again offered the Children’s Health Fair held at the Effingham Knights of Columbus Hall. By taking kindergarten through second grade students through kid-sized versions of the St. Anthony’s ER, Diagnostic Services and Surgical Services departments, we hope to help alleviate some of their fears

if they have to go to the hospital in the future. During the “tour,” the children learn safety, what to expect at a visit to a hospital, and how to make healthy life choices like nutrition and exercise.

Children that have to make healthy choices every day due to their condition are those living with diabetes. For the past 26 years, we have conducted our CANDY Camp (Camping Activities for Normal Diabetic Youth), held for kids ages 5 to 12. The camp allows kids with diabetes to meet other kids who also have diabetes, and gain independence in their self-management skills. At the camp, diabetic children and their peers learn valuable information about diabetes while taking part in fun-filled activities together. Through the camp, we help them to know they are not alone and that they can have a full, active life despite their condition.

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Collaborative efforts with other organizations allow us to accomplish goals that we may have difficulty accomplishing alone. It is by working together toward common goals and combining our strength that we can succeed together.

A perfect example of this was the launch of a dental voucher program. In partnership with Effingham Catholic Charities, emergent tooth extraction is provided for adults 18 years and older who are underinsured or uninsured. The program was developed as a result of the Community Health Needs Assessment we conducted in 2011 in partnership with the Alliance for a Healthier Effingham County and Jasper Steering Committee. After evaluating and prioritizing the survey results, the Alliance identified access to health care services as one of the top identified needs. Survey results related to oral health and access to dental care indicated 27% of Effingham County respondents had not visited a dentist within the past year. Those at lower income levels were less likely to report having seen a dentist in the last year.

Through the program, Catholic Charities works with eligible patients to cover expenses related to an initial exam and x-ray by a dentist, followed by a tooth extraction if necessary. The program was launched in April 2014, and through August 2014, over 80 people have received dental care through the program. Those qualifying for the program are finding relief from the burden of paying for emergency, dental and oral surgery services when they cannot afford to do so.

A partnership with a recycling company allowed us to offer our colleagues an opportunity to demonstrate reverence for the Earth by recycling old electronic waste. Through the event, we were able to recycle 5,690 pounds or 2.8 tons of electronic equipment, including TVs, monitors, printers, computers, stereo equipment, DVDs/VCR units, phones and other materials that would have ended up in a landfill, helping save our environment.

We are St. Anthony’s Memorial Hospital and we make a difference!

PARTNERING TOGETHER

To Make a Difference

503 NORTH MAPLE STREET | EFFINGHAM, ILLINOIS 62401 | 217.342.2121 | www.stanthonyshospital.org

Non-ProfitOrganization

US POSTAGE PAIDPermit No. 231Effingham, IL

Our MissionTo reveal and embody Christ’s healing love for all people through our high quality Franciscan health care ministry