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hospitality embracing our values 2009 annual report

hospitality - Benedictine Health System · furthering the health care mission of the benedictine sisters of duluth, minnesota, provides a spectrum of services with special concern

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Page 1: hospitality - Benedictine Health System · furthering the health care mission of the benedictine sisters of duluth, minnesota, provides a spectrum of services with special concern

hospitalitye m b r a c i n g o u r v a l u e s

2 0 0 9 a n n u a l r e p o r t

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letter from the prioress

Dear Friends:

Throughout the Benedictine Health System, our residents and their families are welcomed and treated with love

in the name of Christ as directed in Chapter 53 of the Rule of St. Benedict. This chapter so beautifully calls us to

treat guests with the same care and concern as we would Jesus. From a small gesture such as opening a door for

someone to the challenge of being open to new ideas, the Benedictine Core Value of Hospitality is constantly in

practice at our facilities across the United States. In doing this, we are always ready to welcome Christ.

During 2009, the Benedictine Health System focused on Hospitality by exploring what it means and how we

live this value each day. Hospitality is much more complex than simply welcoming others into our presence. We

strive to build an open, kind and compassionate community in our many locations. It is so important for each of

us to respond to our residents, their families and others with grace, generosity and openness.

Each and every day, we at BHS are united together in caring for our residents and their families. Over 6,000

employees at the Benedictine Health System further the health care ministry of the Sisters of St. Scholastica

Monastery. The Sisters of St. Scholastica Monastery and I are so proud of the contributions the Benedictine

Health System has made not only in the daily lives of our residents but also in furthering Catholic long-term

care in the United States.

On behalf of the all the Sisters, I am grateful for the continued excellent work and commitment of the women

and men who are a part of the Benedictine Health System and whose contributions have resulted in the growth

and flourishing of the organization. We remember each and every one of you in our prayers as you continue the

healing ministry of Jesus. May you each be filled with the wonder of God’s boundless love for you.

With deep gratitude and abundant blessings,

Sister Lois Eckes, OSB

Prioress, St. Scholastica Monastery

prayerblest are you, lord god of the universe.

you call people in every age to be holy.

may saint benedict inspire us

with a spirit of hospitality

welcoming christ in each other.

may we encounter christ in our leaders,

staff and residents,

guests, pilgrims, strangers, the sick

and in service of others.

following gospel values,

may we cherish christ above all.

help us to be at peace in our hearts

and bring that peace to everyone

now and forever.

amen

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creating benedictine living communities where health, independence and choice come to life.

letter from the Board Chair and CEO

Dear Members and Supporters of the Benedictine Health System:

The Core Value of Hospitality permeates the Benedictine Health System. To residents, it means a home

where each person is welcomed with choices and privacy, helping to maintain their independence. Our

employees, who extend Hospitality through the care they provide, also experience it within a safe, friendly

work environment. As a Benedictine Health System Core Value, Hospitality also serves as a basis for BHS’

quest for quality improvement.

This year’s annual report highlights how living the Core Value of Hospitality impacts residents, influences

our employees and ultimately makes a difference in the lives of all. These stories are representative of the

many touching and soul searching stories that demonstrate the deep commitment made to the health care

ministry sponsored by the Sisters of St. Scholastica Monastery.

With the Core Values as the guide, the Benedictine Health System is honored to carry on the vision of our

sponsors, in bringing quality health care to people in need, wherever we are called to serve them.

For all who have dedicated themselves to living the value of Hospitality as part of the Benedictine Health

System, we thank you. It is through your dedication, knowledge and skills that the lives are enhanced daily

by the quality health care you provide.

Sincerely,

Janet L. Mohr, Ph.D. Dale M. Thompson

Board Chair President / CEO

our mission

our vision

hospitality extending warmth and acceptance to each other and everyone we serve.

stewardship providing wise and respectful use of all human and material resources.

respect cherishing and promoting the worth of all human life with dignity and reverence.

justice advocating for the poor and the powerless as we work to eliminate prejudice.

the benedictine health system, a catholic health care organization entrusted with

furthering the health care mission of the benedictine sisters of duluth, minnesota,

provides a spectrum of services with special concern for the poor and powerless. the

system is committed to witness to god’s love for all people by providing high-quality

services in a compassionate environment that enhances human worth.

our core values

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Through his Holy Rule, St. Benedict teaches us about

Hospitality not as a single event but as a multidimensional

way of life. We take this direction very seriously and

thoughtfully at the Benedictine Health System and it

has become a special and defining characteristic for our

ministry. When you enter a Benedictine Health System

facility for the first time, there is a tangible difference.

Chances are, what you are sensing is our special version of

Hospitality.

As is our tradition, during the past year we have explored

and practiced one of our four Core Values in a deeper

way throughout the System. In 2009, our focus was on

Hospitality, as a part of our ongoing effort to understand

this important Core Value while, at the same time,

improving the quality of life for others.

Benedictine Hospitality begins in small ways. It is not so

much about what we do in a single situation but how we do

it. It means that we take great care and concern for those

in our facilities and with each life entrusted to us. We make

others feel welcome and comfortable with respect, kindness

and tolerance, no matter what the situation. In each resident,

family member or stranger, we honor the presence of Christ

through our behavior.

Beyond the practice of welcoming and caring for others,

another dimension of Hospitality is our openness to the

presence of others. We take time to listen to and give each

person our full attention. We look to what is good in each

person, accepting and understanding his or her gifts and

differences. We try to anticipate needs and to provide

exceptional service to all who pass through our doors.

Hospitality is also about being open to change and new

ideas. This is often one of the most challenging aspects of

Hospitality. It means being adaptable and flexible in any

situation, being open and accepting of differences, and

valuing the uniqueness of each individual.

Throughout this annual report, we show how we believe

in and integrate Hospitality at our facilities and in the

communities we serve. At the Benedictine Health System,

we are committed to the idea that if we practice all these

dimensions of Hospitality consistently and with great care

and compassion, we’ll continue to improve our world both

now and in the future.

embracing our values

hospitalityBeth Chambers takes a moment out of the hustle and bustle of serving lunch to residents at Callista Court, Winona, Minn., to share a smile with Sophia Ochrymowycz.

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janet mohr, ph.d., chairperson

sister martha bechtold, osb

sister mary odile cahoon, osb

sister lois eckes, osb

sister verda clare eichner, osb

sister mary christa kroening, osb

brian lassiter

kathleen latour, ma, rhia, fahima

chandra mehrota, phd

robert niedringhaus, md

terry scott, cpa

mary frances skala, jd

dale thompson, ceo

advancing our mission and core valuesIn January 2009, the System conducted the

Mission and Values Survey to learn more about

employee understanding and perceptions of the

organization, management, job satisfaction and

commitment as well as other elements key to a

successful workforce. An astounding 93 percent

participation rate was achieved with nearly 5,800

employees completing the survey. The highest

scoring items were “I understand our Mission

and Core Values of Hospitality, Stewardship,

Respect and Justice” and “I like the work that I

do.” Additionally, BHS was honored by Morehead

Associates with their “Above and Beyond”

national client award for outstanding performance.

Recognizing the importance of spiritual care in

our facilities, the Spiritual Care Design Team

began to shape a new vision for the future of this

important work in the System.

Nazareth Living Center, St. Louis, Mo., formally

joined BHS as a co-sponsored organization and

Villa Health Care Center, Mora, Minn., joined

the System as an associate member. A new

memory care addition to the Benedictine Health

Center, Duluth, called Westwood Terrace, was

completed this year.

The spring flooding in the Fargo, N.D., area drew

on the combined efforts of our BHS facilities in

North Dakota, Minnesota and South Dakota.

BHS facilities welcomed nearly 100 evacuated

residents providing temporary homes for many

older adults affected by the floods.

a focus on service and the futureAs part of an on-going effort to measure resident

and family satisfaction at our Participating

Organizations, over 4,500 surveys were distributed

at our independent housing, assisted living and

skilled nursing facilities. BHS received high

marks—over 90 percent positive and higher

than the national comparison—in areas such as

recommending the facility to others and overall

satisfaction.

An important service recovery initiative was

launched at all of our facilities to provide a

systematic process for dealing with resident

concerns and resolutions.

A special design team charged with developing

a BHS prototype recommendation of a “small

house” elder care model explored architectural

and program design as well as financial

considerations. Also, a concept team was

convened to develop a BHS model for delivering

care at home, thus continuing the organization’s

service and commitment to our communities.

Recognizing the importance of developing

community-based senior care, BHS is partnering

with representatives from Owatonna, Minn.,

and Steele County for their Communities for a

Lifetime project. This collaborative is charged

with rethinking the delivery of long-term care

and will likely help shape a model for other

Minnesota communities looking for long-term

care innovation and solutions.

In April, a groundbreaking ceremony was held

and construction begun on a new skilled nursing

facility called St. Gabriel’s Community, Bismarck,

N.D. Completion of this new facility is expected

in the summer of 2010.

highlights of the yearThe fiscal year ending in June 2009 was the first complete year for BHS as an entirely long-term care organization. Following are selected highlights of the System’s accomplishments during 2008-2009.

Twenty-four BHS culinary services directors

representing seven states attended a three-

day training session at General Mills World

Headquarters to identify ways to enhance the

dining experience for our residents.

developing our current and emerging leadersWith goals of providing a common experience

and language for how we lead at BHS, the System

launched the Leadership Institute in May. Designed

as a flexible learning program, the Leadership

Institute utilizes both traditional classroom and

online delivery for a series of 12 modules key to

being a successful leader. Members of the BHS

Unified Leadership Team, consisting of about 75

facility and corporate leaders, are the first students

enrolled in the program. Plans are in place to offer

the Leadership Institute to facility managers in

upcoming years.

strengthen financial sustainabilityWhile not immune to the severe economic

situation in the past year, the System achieved

remarkable operating results.

A strategic capital fund was created to stimulate

and support innovation at our Participating

Organizations, with $5 million dedicated to

advancing innovative projects that reflect the BHS

vision and strategic imperatives.

A $250,000 grant was awarded to Cerenity

Senior Care Residence on Humboldt by the

Minnesota Department of Human Services for

renovation to serve early- to mid-stage memory

care residents.

our quest for performance excellenceBHS continues on its performance excellence

journey. Late in 2009, BHS submitted its third

application to the Minnesota Council for

Quality having previously achieved recognition

at the commitment and advancement levels. In

addition, 11 BHS Participating Organizations

received national Step Awards for exceptional

commitment to quality care by the American

Health Care Association, including two Step iii

Awards: Clement Manor, Greenfield, Wis., and

Villa St. Vincent, Crookston, Minn.

BHS operations, systems development and support

teams created and continue to refine performance

integration models that strengthen and enhance

assistance to our Participating Organizations. This

work is part of our overall quality effort and is

organized using the BHS Pillars of Care, Service,

People, Finance and Growth.

Each year, the Benedictine Health System

makes a difference in the lives of many people

and is committed to continuing this service

to our communities as we further the health

care ministry of the Sisters of St. Scholastica

Monastery.

board of directors

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We’ve learned throughout our nearly 25

years as an organization, that it’s the little

things we do as care givers, community

members and neighbors that have the

greatest impact. At BHS, we understand the

importance of our calling: we are entrusted

to care for individuals who can no longer

manage on their own. Each and every one

of these individuals is someone special—a

mother, husband, brother, grandmother, sister

or uncle—who have spent their entire lives

taking care of others and now deserve the very

best care. And we’re here to provide it.

Take for example Pam Luehmann, the

director of housekeeping and laundry

services at Lewiston Villa Nursing Home. She

understands that although she’s not a direct

care giver, she can still make a difference. In

her words: “I have been at the Villa for over

25 years and they are my family. I come to

work each and every day knowing that I will

make someone smile. I have had the privilege

of caring for those who were unable to care

for themselves and taking care of those

without any family.”

Pam’s not the only one who understands

that every position within our organization

can touch the lives of our residents and

their families. Evie Verness is well known

at Madonna Towers, Rochester, Minn. Not

only does she add sparkle to the lobby from

behind her reception desk, but her ready

smile and cheerful outlook makes everyone

who comes in feel welcome and special. She

also provides that extra layer of care that

makes our organization different by keeping

a close eye on the residents and being aware

of any changes in status, allowing care staff

to step in and help. She’s been called a “living

picture” of the Core Values.

Our attention to details extends beyond

our walls and into the communities. At St.

Raphael’s Health and Rehabilitation Center,

Holly Hutkowski, RN, wanted to do more

for the community of Eveleth, Minn., so

she contacted the local blood center and

arranged for an employee blood drive. This

may sound like a small endeavor, but the

results multiply quickly: for every one person

who donates, three individuals will benefit.

And in this small mining community, it’s the

spirit of giving that makes the biggest impact.

each and every daythe difference

Joey Busse, an RN at St. Isidore Health Center of Greenwood Prairie, Plainview, Minn., is just one example of the thousands of BHS employees who take time every day to make our residents feel at home in our facilities.

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Financial challenges faced by long-term care organizations continue

to rise as state governments—their budgets negatively affected by the

economy—look to shave costs by reducing reimbursement to health care

organizations. In order to continue efforts to enhance the quality of life of

our residents, Benedictine Health System Participating Organizations turned

to philanthropic support. Generous donations, charitable gifts and pledges

in the amount of $1.6 million were given to the Benedictine Health System

Foundation.

enhancing quality of lifeGrants and performance awards support the BHS quest for quality. State

agency grants, matched by BHSF funds, helped install additional ceiling tracks

for safe resident handling, funded the renovation of assisted living units in

one facility to better serve individuals with early to mid-stage dementia, and

supported new programs to help manage resident pain in others.

One of these efforts, the Evidence to Practice (E2P) Web site, captured the

Stratis Health Building Healthier Communities Award. BHSF, in partnership

with the Winona State University nursing department, supported the Web

site’s development to improve evidence-based clinical decision making in

long-term care.

Through the BHS Innovation Fund, the Benedictine Health System

Foundation’s research and innovation committee awarded $81,000 in a

competitive process to fund two innovation projects. Benedictine Health

Center at Innsbruck, New Brighton, Minn., in collaboration with St. John the

Baptist Catholic Church, will create a model to provide services to older parish

members so they have a choice of staying in their own home.

Prince of Peace Care Center, Ellendale, N.D., is the lead for a collaborative

that includes area social services and public health departments, churches

and schools. The collaborative proposes to develop and implement a parish

nurse program to coordinate agency referrals and foster wholeness of care by

securing access to services for area residents.

making an impactThanks to the BHSF Making Dreams Come True program and Tekakwitha

Living Center, Beverly Okeson, a resident of the Sisseton, S.D., facility,

traveled to Sioux Falls, S.D., to see her “Irish boyfriend,” singer Daniel

O’Donnell in concert. The dream became the ultimate experience when

the local television station picked up the story and arranged a preconcert

meeting with O’Donnell.

Caring for others, a creed that extends beyond the residents to fellow BHS

employees, is the impetus for the BHSF Employee Emergency Fund. Fifteen

BHS employees from the facilities and corporate sought and received financial

assistance for mortgages, rent and loan payments, gas and food purchases, and

lodging during medical treatments, during the 2009 fiscal year.

benedictine health center foundation, duluth, minn.

benedictine health center of minneapolis foundation, minneapolis, minn.

benedictine living communities foundation, bismarck, n.d., serving benedictine living center of garrison; prince of peace care center, ellendale; st. benedict’s health center, dickinson; st. catherine’s living center, wahpeton; and st. rose care center, lamoure.

benedictine living community of st. peter foundation, st. peter, minn.

bridges care community foundation, ada, minn.

cerenity foundation, st. paul, minn., serving cerenity care center – bethesda of south st. paul, cerenity care center on dellwood place, cerenity care center on humboldt, cerenity care center marian of st. paul, and cerenity care center of white bear lake.

hi-park foundation, red wing, minn.

innsbruck foundation, new brighton, minn.

living community of st. joseph foundation, st. joseph, mo.

madonna living community foundation of rochester, minn., serving madonna towers of rochester and madonna meadows of rochester.

saint anne foundation of winona, minn.

saints healthcare foundation shakopee, minn., serving st. francis regional medical center and st. gertrude’s health and rehabilitation center.

st. eligius foundation, duluth, minn.

st. isidore health center of greenwood prairie foundation, plainview, minn.

st. michael’s foundation, virginia, minn.

st. raphael’s foundation, eveleth, minn.

tekakwitha living center foundation, sisseton, s.d.

villa st. benedict foundation, lisle, ill.

villa st. vincent/the summit foundation, crookston, minn.

net asset growth in 2009:

$6,823,222

2008: $6,210,242

benedictine health system foundation associated foundations

total contributions, grants and performance awards in 2009:

$3,791,957

2008: $2,304,877

Both the Making Dreams Come True program and the Employee Emergency Fund

are funded by the annual BHS corporate employee We Believe campaign. In 2009,

the campaign received the following amounts in gifts and pledges to its designated

funds: $35,173, facility/special projects; $10,015, the employee emergency fund;

$3,037, Making Dreams Come True; $1,295, spiritual care support and $3,965 in

unrestricted funds.

strengthening philanthropy Due to the growth in size and complexity of the Benedictine Health System Foundation,

several changes were undertaken to strengthen philanthropy within BHS. Centralized

accounting services for Associated Foundations was implemented to ensure accurate

accounting, agency reporting and fund balance tracking. The Foundation also converted

all Associated Foundations to one constituent relationship management system allowing

for growth of relationships with donors, volunteers, members and other friends of BHS.

This project will be fully implemented in the next year.

Strong governance is the key to successful philanthropy. Looking at itself strategically,

the BHSF Board of Directors identified the need to reorganize. A new board composition

with five Associated Foundation representatives, three to seven at-large members, the

BHS president/CEO, BHSF president, and a representative of the Benedictine Sisters

Benevolent Association has been proposed. Once approved, the newly comprised board

will meet quarterly to provide greater support and guidance to BHSF.

As a result of the 2008 Benedictine Health System restructuring, dollars from former

BHSF Associated Foundations were transfered to the Essentia Community Hospitals and

Clinics Foundation. Although direct support to ECHC Associated Foundations has been

discontinued, BHSF is continuing to provide consultation to the ECHC Foundation.

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quality of life

When a health care organization has a

strong core and robust values, it filters

down to those who carry out the mission by

providing care every day. The Benedictine

Health System time and time again has been

lauded for bringing our Mission and Core

Values to life, but what does that mean for

our residents? How does being a mission-

driven organization translate to quality care

by the facilities?

The answer is simple: Happy staff. Because

our employees are treated with Hospitality,

Stewardship, Respect and Justice, they, in

return, treat our residents with the dignity

and compassion they so strongly desire

and deserve. When the staff members are

engaged, the residents are satisfied.

And there’s no better example of a

committed staff member providing

exemplary care than Sheila Dressen.

Sheila is a St. Gertrude’s Health and

Rehabilitation Center nursing assistant

who works with patients who require

rehabilitation following surgery, trauma

or life-challenging situation and is well-

known for going above and beyond to

ensure that her patients receive the best

care. Her dedication was no different to

a 17-year-old boy, called here “JP,” who

came to St. Gertrude’s after a car accident

left him a quadriplegic. Because JP’s family

lived in Iowa and was not always able to be

with him, Sheila formed a special bond with

the young man, taking him under her wing,

and was often described as his second mom.

JP would respond to Sheila differently than

to other care givers. In fact, he eventually

started to gain movement in his arms, and

when Sheila walked in the room, his eyes

would brighten and he’d laugh. Even after

he was discharged, Sheila made a special

trip to Iowa to visit the young man and his

family. Unfortunately, the last trip she made

to Iowa was for JP’s funeral, but it didn’t

break the ties she made with the family. She

still receives greeting cards from his mother

on her birthday, on Mother’s Day and on

other special occasions.

It’s this kind of commitment to BHS’

Mission and Core Values that led her to be

recognized by her peers at St. Gertrude’s,

as well as her peers in the National

Association of Health Care Assistants. This

organization awarded Sheila the CNA of the

year award, an award that is given to one

nursing assistant in the country each year.

a special bond

Photo taken at St. Isidore Health Center of Greenwood Prairie, Plainview, Minn.

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A unifying characteristic of Catholic health

care is our commitment to and promotion

of the common good for all people. It is

part of our Catholic identity and is an

element of Catholic social teaching—

focused on the promotion and defense of

human dignity—to help those in need and

to champion the greater good of society,

while practicing vigilant Stewardship of

resources. This is our commitment to

continuing Jesus’ ministry of health and

healing.

For Catholic health organizations, the

commitment to community benefit is more

than a way to maintain tax-exempt status.

It requires broad, systematic thinking and

a highly developed sense of responsibility

to place the greater good of all above the

needs of the individual.

Like other Catholic health care

organizations across the United States, the

Benedictine Health System is fully involved

in identifying, planning for and meeting

the needs of the communities we serve.

BHS participates in the unified reporting

method developed by the Catholic

Health Association. This model has been

recognized as a systematic approach for

organizing contributions and services to be

channeled back into the communities.

As part of this community benefit reporting

system, BHS tracks its contributions in the

areas of charity care, unpaid costs of public

programs such as Medicaid, community

health services, health professional

education, subsidized health services,

research and innovation, financial and

in-kind donations, community-building

activities, and community benefit operations.

In the fiscal year ending June 30, 2009,

the Benedictine Health System provided

$12,014,090 in quantifiable community

benefit according to the CHA reporting

method. This financial contribution, as

well as the countless hours of donated

professional staff time, makes a significant

impact in our communities.

Community benefit proves that an

organization is living its mission. It

shows that it is making an impact on

educating and improving a community’s

overall health. It encourages participation

and cooperation from members of the

community and from the organization.

At the Benedictine Health System, we

are proud of this commitment to our

communities as we collectively work to

promote the common good for all.

community benefit

in the fiscal year

ending june 30, 2009, the

benedictine health system

provided $12,014,090

in quantifiable community

benefit according to the

cha reporting method.

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Giving up a home can be difficult no matter what

the situation. For many aging adults, not only

might it mean leaving the place where they raised

their children or last lived with a spouse, but it can

also represent the loss of dignity when faced with

moving into a senior living community. But often,

new residents at Benedictine Health System facilities

find the opposite to be true—they gain health,

independence and choice. The isolation that can

develop over time in a home ends and is replaced

by socialization with neighbors and staff. It’s not

unusual to hear that a resident has come to life

shortly after arriving at a BHS facility.

Take for example Elita Telles, who now calls Callista

Court in Winona, Minn., home. When Elita’s

husband died, she hated the thought of giving up the

home that they shared. She was in deep mourning

over his loss, and selling her house would only

add to that grief. But when she could no longer

navigate the stairs on her own and she made

the heart-wrenching decision to leave, she knew

Callista Court was the right place for her.

“I just love the people here,” she said. “Yes, I loved

my big, beautiful house, but there I’d be. Alone.

Here I’m so much more alive. I’m so involved and

we do so much.” With the number of friends Elita

has made since moving in, one might think she’s

lived there for years, but she’s only been at Callista

Court a few months. Not only can she be found

participating in the daily activities offered, but it’s

not unusual find her leading activities as well.

On a particular day this fall, Elita filled in for

an absent staff member to read the paper to the

other residents in Callista’s cozy hobby room

(shown at left). And just because Elita had to give

up her house, doesn’t mean she’s lost her home.

Elita’s two-bedroom suite in the assisted living

community is filled with elegant furniture and

memories of her late husband, a naval officer. His

cap sits on a sofa table, readily displayed to guests

as they enter; lighthouses and seashells fill shelves

and are captured in images on the wall. She’s

proud to give new friends a tour of her beautiful

new home, which makes it that much easier to

talk about the one she left behind.

people make the difference

creating a homeElita Telles reads the newspaper aloud to her friends and neighbors at Callista Court. Although Elita loved her house and was reluctant to give it up, she has come to understand that home is a place where you feel loved and respected; now she’s proud to call Callista Court home.

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2007 2008 2009 assetscurrentassets cashandinvestments $ 28,097,606 $ 31,353,531 $ 33,064,065 accountsreceivable 10,939,663 14,279,148 14,786,686 inventoriesandprepaidexpenses 3,969,478 1,823,225 1,447,467totalcurrentassets $ 43,006,747 $ 47,455,904 $ 49,298,218 investments 45,999,551 48,835,291 36,470,216propertyandequipment 131,815,891 134,703,475 136,287,408otherassets 10,471,398 7,332,423 7,721,564totalassets $ 231,293,587 $ 238,327,093 $ 229,777,406 liabilities and net assets currentliabilities accountspayableandaccruals $ 19,739,764 $ 20,806,800 $ 19,632,505 currentportionlong-termdebt 3,711,149 3,655,764 11,694,746totalcurrentliabilities $ 23,450,913 $ 24,462,564 $ 31,327,251 otherliabilities 7,212,433 7,995,621 8,381,174long-termdebt 139,228,551 139,870,181 130,345,604netassets 61,401,690 65,998,727 59,723,377totalliabilitiesandnetassets $ 231,293,587 $ 238,327,093 $ 229,777,406

consolidated balance sheet 2007 2008 2009

totaloperatingrevenue $ 163,042,046 $ 187,114,850 $ 181,997,940totaloperatingexpense 159,645,196 183,737,987 175,695,565operatingincome 3,396,850 3,376,863 6,302,375non-operatingincome 2,069,322 (2,782,391) (4,673,388)*excessofrevenueoverexpense $ 5,466,172 $ 594,472 $ 1,628,987

bed complement nursingbeds 3,965 4,027 3,672assisted/independentunits 1,905 2,102 2,147totalbeds/units 5,870 6,129 5,819

utilizationnursingfacilityresidentdays 1,324,024 1,323,353 1,209,516assisted/independentdays 626,131 658,896 690,056 totalemployeefull-timeequivalents 4,735 4,753 4,735

*excludestransfertonon-affiliatedfoundationof$3,929,510

consolidated statement of operations

selected statistics

financials

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The Benedictine Health System’s commitment to serve

others as Christ has led us to seek out other health care

organizations who share common mission and vision.

By partnering and collaborating with these innovative

organizations, the Benedictine Health System can reach

beyond our current locations to bring our expertise to

new communities and to meet growing needs.

As we move forward, we will continue to develop new

and current partnerships with organizations that are

Catholic or that have Catholic heritage, those with

common missions and values to our own, as well a

shared commitment to quality and innovation.

key financial highlights collaboration

co-sponsorship organizations

operating revenue

2009:$99,235,544

2008:$95,420,512

2007:$89,543,304

total assets

2009: $103,359,5652008: $105,288,231

2007: $112,497,968

associate organizations

operating revenue

2009:$72,491,813

2008:$73,265,746

2007:$61,238,435

total assets

2009: $93,629,7122008: $87,858,931

2007: $59,593,448

27.0% 53.3% 12.9% 6.8%

0% 20% 40% 60% 80% 100%0%

2009

25.8% 55.6% 12.5% 6.1%2008

24.3% 58.1% 12.0% 5.6%2007private

medicaid

medicare

insurance /

other

nursing facility census days

2009 $140.1 $25.4 $3.0

2008 $142.8 $22.7 $1.9

2007 $140.8 $21.7 $2.1

04$0$ 081$041$001$06$02$ 061$021$08$millions

nursing fa

cility

assiste

d / indepen

dent

other

net resident service revenue

2009 8.53$2.25$ 4.71$2.36$

2008 7.43$7.05$ 5.51$6.66$

2007 7.23$5.74$ 3.41$1.07$

0$ $25 $50 $75 $100 $125 $150 $175millions

private

medicaid

medicare

insurance /

other

net resident service revenue

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As illustrated by the examples in this

report, it is evident that the Core Values

abound throughout the Benedictine

Health System. Through small acts

of kindness, creating homes for our

residents and providing quality care, BHS

staff demonstrate their commitment to

differentiating our facilities by creating

living communities where health,

independence and choice come to life.

It is our people within BHS that give life

to the Core Value of Hospitality. Each

person is a valued member who carries an

important role in providing quality care

to those we serve. Because our employees

personally embrace them, the BHS Mission

and Core Values permeate the system. To

each of these valued individuals, we extend

our appreciation.

With the Core Values as a basis, we stride

forward into 2010 by not only continuing

to build on our strengths but by branching

out into new directions. Look for news in

the next year on our important initiatives,

including bringing small houses—a new

skilled nursing care model in a smaller,

residential setting—to our existing

communities, and a model that will allow

elders to stay in their home while receiving

the same quality care that is delivered in

looking aheadmore growth to come

our facilities. These and other community-based senior

care projects bring our vision to life.

In 2010, we will also celebrate the past. Twenty-five

years ago, three health care facilities sponsored by the

Sisters of St. Scholastica Monastery were united under

the Benedictine Health System. Today, more than 40

facilities further this ministry in seven states. With the

theme “united in Peace,” we will host a year of events

and activities to celebrate our accomplishments and

honor the legacy of our sponsor.

In Peace, BHS embraces the future and continues to

further the health care ministry that extends St. Benedict

in caring for those as Christ.

Photo taken at Lewiston Villa Nursing Home, Lewiston, Minn.

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cerenity residence on humboldt

cerenity care center—marian of saint paul st. paul, minn.

cerenity residence—marian of saint paul

cerenity care center of white bear lake white bear lake, minn. cerenity residence of white bear lake

clement manor greenfield, wis.

country manor sartell, minn.

country manor health care and rehab center

country manor senior apartments

country villa

glenoaks senior living campus new london, minn.

lewiston villa nursing home lewiston, minn.

living community of st. joseph st. joseph, mo.

madonna living community of rochester rochester, minn.

madonna meadows of rochester madonna towers of rochester

nazareth living center st. louis, mo.

saint anne of winona winona, minn.

callista court

saint anne extended health care

st. gertrude’s health and rehabilitation center shakopee, minn.

the gardens at st. gertrude’s

st. michael’s health and rehabilitation center virginia, minn.

st. raphael’s health and rehabilitation center eveleth, minn.

st. mary’s care center winsted, minn.

tekakwitha living center sisseton, s.d.

villa health care center mora, minn.

villages of mora apartments

villa st. benedict lisle, ill.

villa st. vincent crookston, minn.

good shepherd hall

the summit

st. gabriel’s community, opening july 2010 bismarck, n.d.

benedictine care centers

benedictine health center at innsbruck new brighton, minn

st. brigid’s at hi-park red wing, minn

st. eligius health center duluth, minn.

st. isidore health center of greenwood prairie plainview, minn.

green prairie place

benedictine health center duluth, minn

westwood apartments

westwood terrace

benedictine health center of minneapolis minneapolis, minn.

benedictine health system foundation duluth, minn.

benedictine living community of st. peter st. peter, minn.

benedictine living communities, inc. bismarck, n.d.

benedictine living center of garrison garrison, n.d.

the meadows

prince of peace care center ellendale, n.d.

evergreen place

st. benedict’s health center dickinson, n.d.

benedict’s court

st. catherine’s living center wahpeton, n.d.

st. rose care center lamoure, n.d.

rosewood court

benedictine senior living at steeple point osseo, minn.

bridges care community ada, minn.

carondelet long-term care facilities

carondelet manor kansas city, mo.

st. mary’s manor blue springs, mo.

villa saint joseph overland park, kansas

cerenity senior care

cerenity care center—bethesda of south st. paul south st. paul, minn.

cerenity residence of south st. paul

cerenity care center on dellwood place st. paul, minn.

cerenity care center on humboldt st. paul, minn.

benedictine health system facilities

NORTH DAKOTA

SOUTH DAKOTA

MINNESOTA

WISCONSIN

ILLINOIS

MISSOURIKANSAS

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503 east third street, suite 400

duluth minnesota 55805

1995 east rum river drive south

cambridge, minnesota 55008

www.bhshealth.org

©2009 benedictine health system

Cover photo taken at St. Mary’s Care Center, Winsted, Minn.