The Destination of Choice for Wellness and Eldercare.

REHABILITATION & SKILLED NURSINGASSISTED LIVING

2019 Annual Report

OUR MISSION is to provide a continuum of excellent, compassionate and innovative care, to enable those we serve to attain optimal wellness and quality of life.

Scandinavian Communities is a Not-For-Profit 501(c)3 healthcare organization offering rehabilitation and skilled nursing, assisted living, and respite care. Admission is open to all persons. We have been guided by a volunteer Board of Directors since our founding in 1930.

Dear Friends,

The past year began auspiciously, with our new Executive Director, Colette Silverman, taking the helm at Scandinavian on January 1st. A highly-accomplished executive with strong leadership skills in cor-porate healthcare, home health services, acute care hospitals and hospice care, Colette possesses a stellar reputation for providing strategic leadership in the areas of Quality and Process Improvement, Outcomes Management and Quality-based incentive programs, including readmission reduction and value-based purchasing. From the start, her diverse knowledge of the healthcare industry and skill at building rela-tionships with hospitals, home care agencies and physician practices has been focused on identifying new opportunities for our organization to provide high-quality care to the older adult population. Early on, she was presented the opportunity to place her mark on our leadership team by promoting two highly-respected, long-time employees to key positions. As a result, Tai Sodipo was appointed as Administrator of Rehabilitation and Skilled Nursing and Suzanne Cesana became our Assisted Living Administrator. They, together with our entire, caring team, are committed to our vision:

“To be the destination of choice for wellness and eldercare”.

To get this message out into the community more effectively, this year saw our first foray into the chal-lenging world of advertising on television. This being the case, we were careful to ally ourselves with someone known for his keen knowledge of the local business landscape combined with unmatched mar-keting talents. Such an opportunity presented itself when Mr. Joe Zito, known for his signature programs, TV Maitre d’ and Fresh and Local, graciously agreed to take us under his wing to produce a series of six 30-second advertising spots, which aired on four local stations, as well as develop a promotional video, showcasing our facilities, to be shown to local community groups.

Still, this year has proven to be another challenging one in the elder care marketplace in Rhode Island. The biggest obstacles continue to be maintaining occupancy rates adequate to cover expenses at the As-sisted Living Retirement Center, while the Skilled Nursing and Rehabilitation Facility continues to deal with an unfavorable payer mix.

In closing, we would like to acknowledge that all we do for our residents would not be possible without the generous contributions of the many individuals and organizations listed in this report. We sincerely thank you for your ongoing support of our mission!

With Warmest Personal Regards,

Joel G. Johnson

LETTER OF APPRECIATION AND THANKS

BOARD OF DIRECTORSJune 2019 - May 2020

OfficersJoel G. Johnson, PresidentLeif F. Reslow, Vice PresidentDoris A. Connor, TreasurerMargaret Mock, SecretaryPatricia A. Thomas, Past President

Julie CarrocciaDonald C. ForsterAdrienne Gallo GirardJean Larkin

Andrew G. NaultRonald S. OhsbergThomas C. Pearson

Members

2019 EXECUTIVE LEADERSHIP TEAMColette M. Silverman, Executive DirectorTai A. Sodipo, RN, BSN, LNHA, Administrator, Rehabilitation & Skilled NursingSuzanne Cesana, LNHA, ALA, Administrator, Assisted LivingVivian Fanning, Director of Human ResourcesDaniel J. Hughes, Jr., CPA, Director of Finance

Just some of the amazing caregivers who keep our residents safe, well fed, engaged and happy.

2019 2018

Total Assets $ 15,395,247 $ 15,076,131

Total Liabilities $ 5,205,866 $ 5,884,215Total Net Assets (equity) 10,189,381 9,191,916 Total Liabilities & Net Assets

$15,395,247 $ 15,076,131

Operating Revenue (1) $ 9,066,775 $ 8,888,904 Operating Expense 10,312,620 10,406,387

Excess (deficiency) from Operations $ (1,245,845) $ (1,517,483)

Other Income/(Expense) (2) $ 2,150,092 $ (168,697)

Revenues and Other Income over (under) Expenses $ 904,247 ($1,686,180)

Investments $ 8,277,936 $ 7,820,405(1) Includes room and board, and ancillaries & rental and other resident services income.(2) Primarily interest and investment income, contributions, management fees, realized (and unrealized losses for 2018) investment gains, and joint venture profit

FISCAL INFORMATION 2019

Every effort has been made to recognize all who have contributed to Scandinavian Communities during fiscal year 2019. We may inadvertently have made errors in spelling or donor listings. Should you recognize any such mistakes, please advise us as soon as possible so that our records may be corrected. Thank you. Daniel Hughes, Jr., CPA , Director of Finances

Like 2018, 2019 was another tough year. While the occupancy at the assisted living in-creased from 81.4% in 2018 to 85.6% in 2019, the nursing home’s occupancy remained flat at 92%. Unfortunately, the patient mix for the nursing home was weaker than 2018. The net result was only a small increase in operating revenue of approximately $178,000. We were able to cut costs for a decrease in our operat-ing expenses of approximately $94,000. The increase in operating revenue along with the decrease in our expense resulted in our operating loss decreasing by $272,000 to $1,246,000 for 2019. Cash flow continued to be tight in 2019 as UHIP issues started to get worse towards the end of 2019 after improv-ing early in the year. The stock market had a very strong year resulting in unrealized and realized gains totaling over $1,322,000. We were also the beneficiary of a couple large do-nations. The end result was an increase in our total Net Assets of $904,000 for 2019. During 2019 we capitalized $370,742 of fixed assets.

The information listed is generated from our audit for the year ended 12/31/2019.

Doris A. Connor, Treasurer

FRIENDS OF THE CORPORATION Friends of the Corporation serve an important role in the governance of Scandinavian Communities. They elect the Board of Directors at the Annual Meeting, serve on Board committees and approve all changes to the bylaws. New Board Members are elected from the Friends of the Corporation.

In 2019, we welcomed three new Friends of the Corporation: Mrs. Jaclyn L. Huot, Mr. Andrew G. Nault, and Ms. Linda Nelson.

Mr. Glenn R. Ahlborg Mr. Charles S. Ahlgren Rev. Donnie C. Anderson Mr. Leif Askeland Mr. Don A. BacklundMr. Rodney R. Baillargeon Ms. Polly T. Barey Mrs. Ellen M. Bennett Mrs. Julie T. BerryMr. Robert A. BjorklundMr. Ernest A. Borrner Mr. Paul A. Bouchard, Sr.Mr. William B. Brinson Mrs. Gail M. CampbellMrs. Julie Carroccia Mr. Thomas CarrocciaMr. Robert C. CleasbyMs. Sandra Cohen Mr. R. J. Connelly IIIMrs. Doris A. ConnorMs. Carol CorbishleyMr. Donald F. Culton, Jr.Mrs. Karen E. Culton Ms. Kate DeSimoneMr. Jay F. Dwyer Ms. Anita Ege-EdwardsenMr. Andrew M. Erickson Mr. Jonathan K. Farnum Mrs. Linda Fasteson Mr. Roger E. Fasteson

Mrs. Toni FordRev. Linda ForsbergMr. Donald C. Forster Mrs. Adrienne Gallo-GirardMs. Evelyn G. Gonsalves Mrs. Julie L. GouletRev. Cleo GrahamMrs. Linda E. GuestDr. Chandra M. Harris Ms. Nancy L. HarritosMs. Carol HillsMr. Kenneth E. Hogberg Mrs. Willa Hogberg Mrs. Carol J. HuffMrs. Jaclyn L. HuotMrs. Cynthia Jacobson Mr. Gordon C. Johnson Ms. Janice E. Johnson Mr. Joel G. Johnson Mrs. Lois C. Johnson Rev. Dennis P. Kohl Mrs. Marion R. KullbergMrs. Monica L. KunkelMrs. Joan J. LaFauciMr. John LaFauci Mrs. Jean LarkinMrs. Jean E. Larson Mrs. Lisa Larson Mr. Stanley G. Larson Mr. Todd R. Larson

Ms. June P. McCrillis Mr. Neal J. McNamara Mrs. Virginia A. Mead Ms. Sybil L. Miles-CastelloneMrs. Doris A. Mills Dr. Margaret S. MockMrs. Sharlene MoranMs. Marsha H. MottMr. Andrew G. NaultMs. Linda NelsonMs. Nancy C. Nordquist Mr. Ronald S. Ohsberg Ms. Elizabeth ParoliMs. Cindy Pearson Mr. Edward J. PearsonMrs. Margaret Pearson Mr. Thomas C. Pearson Mrs. Audrey PfeiferMs. Marianne RaimondoMr. A. Douglas Ray Mr. Leif F. ReslowMrs. May Britt F. Reslow Mrs. Karen RowanMr. Albert F. SchmidMr. Chet SutphenMrs. Jodi SutphenMrs. Nancy M. Swanson Mr. Paul A. SwansonMrs. Susan A. TahakjianMs. Catherine TaylorMrs. Joyce Thell

Ms. Patricia A. ThomasMr. Paul ThomasMr. Gregory A. VoigtMr. J. Chris WoulfeMrs. Linda Woulfe

It's not too late to donate to make a significant difference in the lives of all our residents.

We truly appreciate your continued support in enriching the lives of all our residents!

ANNUAL APPEAL 2019

Each year at our Annual Fundraiser, we focus on a specific need which greatly benefits the residents at Scandinavian Communities. Fund-A-Need kicks off at our event "Hidden Treasures of Rhode Island" and continues with our Annual Appeal.

Your continued support of Scandinavian Communities warms our hearts tremendously. The excellent care we are able to provide to our residents is due to your understanding and appreciation of our mission and vision.

Because of you, in 2019 we were able to make desirable lifestyle enhancements possible for residents in both the rehabilitation & skilled nursing and the assisted living. Our Director of Culinary is raising the bar with his wonderful creations and emphasis on improved quality, taste and service. To achieve this, we were able to purchase a new steamer for the Culinary Department.

Due to the generosity of our supporters, we will be able to provide Resident Enhancements in the areas of safety and security, and technology. Your contributions will assist us in enhancing the safety and security for our residents with secured doors, updated systems, improvements to our security system, and assist us to upgrade our computer systems. Finally, we will continue to work with the William Hall Library to provide easy and safe access to the library and its many programs. You continue to make a wonderful difference in the lives of all our residents.

Current and Deceased Members

Mr. and Mrs. Glenn R. AhlborgO. Ahlborg & Sons, Inc.Mrs. Norma AllenAlpha Rho Chapter Tau Kappa Epsilon University of Rhode IslandAmica InsuranceAmica Companies FoundationMrs. Ruth AndersonMr. Arthur “Roy” AndersonEstate of Ethel F. AndersonEstate of Gladys A. AndersonEstate of Mildred A. G. AndersonEstate of Mildred B. AndersonAnonymous Armbrust FoundationMr. and Mrs. Paul BazinMr. and Mrs. Robert A. BenssonThe Francis J. Bergin Charitable TrustEstate of Mildred R. BlissRev. Carl W. BloomquistDr. Lorraine E. BloomquistblumshapiroMr. Ernest A. BorrnerMiss Nellie L. BorrnerMr. Nils G. BromsEstate of Lillian O. BuckmanEstate of Carl Wallace CederbergChamplin FoundationsCitizens Bank Wealth ManagementMr. Arthur E. Clark

Connekted Inc.Mr. and Mrs. Donald F. Culton Mr. and Mrs. Donald F. Culton, Jr.Mr. & Mrs. Robert L. DiColo and Mr. & Mrs. Michael TascaEstate of Evelyn B. DuckworthMr. and Mrs. Andrew M. EricksonEstate of Olive E. FagerlundMr. Nicholas H. FazzanoMr. Ernest FrerichsMr. Raymond DeWolf GilbertGloria Dei Lutheran ChurchMr. and Mrs. Gerard GouletMiss Ellen V. HaggMr. and Mrs. Ellery HammarlundMr. Kenneth HarleyHealthcare Services GroupMr. and Mrs. Roy HedbergHinckley AllenMr. and Mrs. Daniel J. HogbergMr. and Mrs. Kenneth E. HogbergIda Ballou Littlefield Memorial TrustMr. and Mrs. Bruce G. JacobsonMr. and Mrs. Charles B. Johnson, IIEstate of Dorothy E. JohnsonEstate of Ethel A. C. JohnsonMr. and Mrs. Gordon C. JohnsonMs. Janice E. JohnsonMr. Joel G. JohnsonMs. Lynn P. JohnsonEstate of Richard F. N. JohnsonEstate of Robert M. JohnsonMr. and Mrs. R. Lennart JohnsonMr. Samuel Kitchell

Estate of Uno E. and Irene H. KjellmanLGC&D LLP Mr. Fenwick E. LindenMr. Elwin E. LindenRobert and Margaret MacColl Johnson FundMr. and Mrs. Ernest A. MaherGustaf T. Malmstead FundMr. Richard J. Manson and FamilyMasonic Grand Lodge CharitiesMrs. Doris MathewsonMcKesson Medical-SurgicalMr. Robert McCrystalMr. and Mrs. Neal J. McNamaraDr. and Mrs. Richard K. MeadEstate of Ida M. NelsonMiss Anna M. NelsonMrs. Ruth L. NelsonMrs. Anita J. NordquistOcean State Charities TrustMr. Ronald S. Ohsberg and Ms. Annette CataldoEstate of Madelyn S. OrcuttPearson Cronin & Jacobson Mr. and Mrs. Everett PearsonMrs. Irene PearsonMrs. Virginia "Ginny" PearsonMr. and Mrs. Thomas C. PearsonEstate of Mildred I. PerssonPeterson Family Memorial TrustMr. and Mrs. Harry M. PetersonMr. and Mrs. Warren Pfeifer PharMerica, Inc.

GAMLAS VÄNNER SOCIETY

In calendar year 2019 we welcomed the following new Member to the

Gamlas Vänner Society Mr Ernest A. Borrner

in memory of Nellie L. Borrner

Mr. Raymond DeWolf Gilbert in memory of Grace Lawton

Mr. Ronald S. Ohsberg in memory of Ruth Carlson

Gamlas Vänner Society honors and recognizes the most generous supporters of Scandinavian Communities. Gamlas Vänner is Swedish for Friends of the Elderly and so it is a most appropriate name for this giving society. The name of each donor is permanently inscribed on one of the bricks next to the Gamlas Vänner Society Recognition Mural in the entrance ofthe Rehabilitation & Skilled Nursing and on a leaf of the Recognition Tree in the Assisted Living.

We thank all Gamlas Vänner Society members for their continuing support of Scandinavian Communities.

Mr. and Mrs. Arthur H. PostRev. and Mrs. Donald R. RasmussenMr. and Mrs. Lloyd F. ReslowRhode Island FoundationMr. George D. Roach Mr. and Mrs. James SeedEstate of Dorothy J. M. SparksStarkweather & Shepley Insurance BrokerageStatewide Plumbing & Heating Company, Inc.Estate of Edna M. StromMr. John SuttonMr. Wayne R. SwansonRaymond E. Tanner Family TrustMs. Linda Anderson TaylorTherapy Resources ManagementDr. and Mrs. Rodney ThomasUnidine LifestylesVerdandi Male ChorusEstate of Lily WalshWashington TrustWD & Associates, Inc.Mr. John O. WernerMr. and Mrs. J. Chris WoulfeMr. and Mrs. Scott Young

YOUR 2019 DONATIONS

Gamlas Vänner Society $5,000 plus The Francis J. & Mary Bergin Charitable TrustMr. Ernest A. Borrner and Miss Nellie L. BorrnerThe Estate of Mr. Raymond DeWolf GilbertGustaf T. Malmstead FundPeterson Family Memorial Trust

Friendship Court $2,500 - $4,999 Citizens Bank Wealth ManagementRobert and Margaret MacColl Johnson Fund Washington Trust

President'’s Court $1,000 - $2,499 blumshapiroConnekted, Inc.Healthcare Services GroupHinckley Allen & Snyder LLPMr. and Mrs. Kenneth E. HogbergMr. and Mrs. Charles B. Johnson, IIMr. Joel G. JohnsonMr. Don Kass and Ms. Christine RedfernMs. Elizabeth Paroli and Mr. Wayne KezirianMr. Ronald S. Ohsberg and Ms. Annette CataldoPharMerica, Inc.Mr. Earle Silverman and Ms. Colette M. SilvermanStarkweather & Shepley Insurance BrokerageStatewide Plumbing & Heating Company, Inc.Mr. and Mrs. Donald StoskopfDr. and Mrs. Rodney ThomasUnidine Lifestyles

Heritage Court $500 - $999 Big Blue Bug SolutionsFeibelman Family FundMr. Craig C. HedbergMr. Samuel KitchellMcKesson Medical-SurgicalThe Hilb GroupMr. and Mrs. Thomas C. Pearson

Pacesetter'’s Court $250 - $499 Mr. Robert GauthierMr. Henry GiolittiGeriatric MedicalMr. David GriswoldMr. Jand Mrs. James HagertyMs. Janice E. JohnsonMrs. Barbara F. LaPorteLavoie & Son Industrial Waste Removal, Inc.Ms. Sandra Matrone Mack, Esq., Mack Law Associates LLCMrs. Virginia MeadDr. Margaret S. MockMr. and Mrs. David MonizMs. Grace PedagnoMs. Virginia RasmussenMr. and Mrs. Leif ReslowMr. and Mrs. James RezendesMs. Taiwo A. Sodipo and Mr. Tajudeen KuforijiMr. And Mrs. J. Chris Woulfe

Donations are listed by Giving Club Level

Mr. and Mrs. Andrew J. PinkesProCaire, LLCMr. and Mrs. Edward QuigleyMrs. May Britt ReslowMr. and Mrs. Thomas RowanMrs. Christine L. RoyMrs. Esther SarafianMs. Catherine StoskopfMr. and Mrs. Paul SwansonMr. and Mrs. Scott YoungMr. Brian Zartarian

Tribute Court $100 - $249 Mr. and Mrs. James AtonMs. Rosann AnthonyMs. Polly T. Barey and Mr. Stephen J. StargerMs. Suzanne M. CesanaCitizens Charitable Foundation Matching Gifts ProgramMr. Frank T. CookMr. and Mrs. Donald F. CultonMs. Kate DeSimoneMr. and Mrs. Jonathan K. FarnumMr. and Mrs. Richard G. FleischerFormatt Printing, Inc. Mr. Donald C. ForsterMs. Linda S. ForsterMr. Everett B. GabrielMs. Adrienne Gallo GirardMr. and Mrs. Jeffrey HannaMr. Daniel HughesMrs. Jacklyn HuotJB Pharmacy and CompoundingMs. Janice E. JohnsonMs. Janet LovegreenMr. Paul MerolaMr. and Mrs Scott McCaugheyMs. June P. McCrillisMrs. Renee MoussallyMs. Linda P. NelsonMr. and Mrs. Thomas OlivierMs. Jeanie Phillips and Ms. Louise Potter

Partner’s Court up to $99 Mrs. Marjorie BarrettMr. and Mrs. Kenneth H. BennettBest Buy Employee Giving ProgramMs. Mary BishopMr. Justin BrzozaMs. Kelly BurnsMr. and Mrs. Ralph L. ConnorMrs. Marcia B. DiGregorioDovre Lodge 3-232 Sons of NorwayMr. Peter EdwardsMr. Peter GrossMs. Elan HanleyMr. and Mrs. Gordon C. JohnsonMrs. Marion R. KullbergMs. Kathy LocarnoMr. Dave MartinMr. Shawn MenardMr. Paul MerolaMr. and Mrs. John MoranMr. Matthew ParisMs. Ruth SchachterDrs. Mark and Mindy SotskyMrs. Maureen SullivanMr. Richard C. Swanson

In Memory of Janice W. BellMartha AhernHannah Lombardo

In Memory of Sophia "Sue" BrownBob and Susan Opiekun

In Memory of Sandra BrunellAssociation of Fundraising Professionals RI Chapter

In Memory of the Culton, Hogberg and Jacobson FamiliesDonald and Karen Culton

In Memory of Avis GravelloPatricia A. Angulo

In Memory of Nancy GriswoldBarbara L. DavisDavid Griswold

In Memory of Bruce G. JacobsonDonald and Karen Culton

In Memory of Albin and Florence JohnsonJanice Johnson

In Memory of Virginia KitchellSamuel Kitchell

In Memory of John E. KullbergMarion R. Kullberg

In Memory of Cynthia PearsonMarjorie C. BarrettHenry A. BrownMildred JohnsonJames M. LaveyMerlene M. MayetteLinda P. NelsonCindy PearsonEdward Pearson

In Memory of Syd PearsonThe Anderson Family

In Memory of Jeanie B. PotterJeanie B. PhillipsLouise Potter

Donations given in the year 2019

GIFTS IN HONOR

In Honor of Ann JonesBarbara Levy Jones

In Honor of Scandinavian CommunitiesWilliam Horn, Retirement and Benefit Partners

GIFTS IN MEMORY

In Memory of Albina AngeliniAndrea and Brian BieleckiPhyllis and Cindy BieleckiDan and Mary Ann Lapolla

In Memory of Joann P. AngiolliliMary L. CookPaul and Lori Lebeau

In Memory of her Husband, George BarrettMarjorie Barrett

In Memory of Helen BarrieFred M. BakerMary E. Field

GIFTS IN HONOR...GIFTS IN MEMORY

May the light of God

surround you,

the love of God

enfold you and

the presence of God

watch over you.

IN-KIND DONATIONS Aldo's BakeryApril SalisburyBallard's Block IslandBastaBobby Pins SalonBoston Red SoxCardi's FurnitureCheryl KlimalaChris RoyChris & Linda WoulfeCohoesColleen GaineyColette SilvermanCork & BottleCozy GrillCranston Garden ClubDear Hearts Ice CreamDonald ForsterDunkin DonutsEdgewood Cheese ShopEdgewood Wine & SpiritsElan HanleyFellini PizzeriaFoxwoods Resort & CasinoGail & Edward CampbellGamm TheatreGolden GateGregg's Giving Tree

Healthcare Services GroupHeart in Hand Massage TherapyHeritage LiquorsIM GansJean LarkinJoel JohnsonJoyce SimmonsKate DeSimoneKathy GugliettiKelly BurnsLa Gondola Providence, Inc.Linda GuestLinda & Russ SturtevantLisa RobidouxMiracle Car WashMulligan's IslandNew BalanceOn the BorderPat ThomasPaul & Nancy SwansonPauline RaymondPoco Loco TacosProvidence BruinsReJoyce Salon & SpaRhode Island Philharmonic Orchestra & Music SchoolRebecca AlbergRev. Ted Platt

Rosann Anthony Sandi OlivierSandra Feinstein Gamm TheatreShannon View InnSpring Green Memorial ChurchStaff of Scandinavian CommunitiesStarkweather & ShepleyStephanie PlamondonStop & ShopSubwaySuzanne CesanaTai SodipoTexas Roadhouse RestaurantToni FordTrinity Repertory TheatreTwin OaksUnidine Lifestyles Village Laundry & CleanersVivian FanningWalgreen's Walter CampbellWarwick Country ClubWave Store (Block Island)

A bequest to Scandinavian Communities is a way of perpetuating your support for the role Scandinavian Communities plays in providing the highest quality of care for our residents in both the Rehabilitation & Skilled Nursing and Assisted Living. It enables you to make a major gift that might not otherwise be possible.

If you have already made arrangements to include Scandinavian Communities in your will, or wish to do so, please let us know so we can provide you with the appropriate appreciation.

For additional information, please contact Daniel J. Hughes, Jr., CPA, Director of Finance, at 401-461-1433.

ANNUAL FUNDRAISER

Hidden Treasures 2020 will be held on Thursday, September 17th at Alpine Country Club in Cranston, Rhode Island. We will be celebrating our 90th Anniversary. The committee is hard at work incorporating fresh, new and creative ways to ensure this is another memorable evening.

Your support and dedication to Scandinavian Communities is greatly appreciated. Please plan to join us and enjoy a magnificent evening.

Spread the word to family and friends!

Our Grateful Thanksto 2019 Sponsors

SILVER SPONSORCitizens Bank Wealth

Management

BRONZE SPONSORSblumshapiroConnekted

Healthcare Services GroupHinckley Allen

PharMerica, Inc.Statewide Plumbing & Heating

Company, Inc.Starkweather & Shepley

Insurance Brokerage Unidine LifestylesWashington Trust

www.ScandinavianCommunities.org

ASSISTED LIVING50 Warwick Ave Cranston, RI 02905401-461-1444

REHABILITATION & SKILLED NURSING1811 Broad Street Cranston, RI 02905401-461-1433