2008 annual report

justice

lord god, you are just in all your ways

and holy in all your works.

send your spirit of humility among us

that we are able to perceive you

in each person we meet.

as saint benedict established

a school of the lord’s service

honoring christ in the poor,

the pilgrim and the guest,

may we do the same.

give us courage to look to the benefit

of others before our own

by advocating justice

for the common good.

we ask this through christ our lord.

prayer

amen.

jean walters | chuck waltersmadonna towers of rochester

Jean, a former Minnesota state swimming freestyle champion, and her husband Chuck met while standing in line at the grocery store. At the time, Jean was working at the child welfare department. In line that day, Chuck asked her what she did for a living. After hearing, he replied, “You must look out for my welfare sometime.” Six decades later, she’s still doing just that.

| 2 | | 3 |

Dear Friends:

Because we are all created in the image of God, because all life is sacred, the work of Justice is a commitment to foster right relationships with God, ourselves and one another. Justice is at the heart of the Gospel mission in which Christ tells us that whatever we do for others, especially those most in need and vulnerable, we do to Him (Matthew 25:31-46).

In The Rule, St. Benedict clearly and consistently instructs the entire community to act with Justice in all their relationships. He describes Justice as a leaven that is to permeate the minds of all the disciples (RB 2:5). In its Mission statement, the Benedictine Health System reflects this same imperative and then identifies Justice as one of its Core Values.

Rooted in the Gospel and our Benedictine tradition, Justice is indeed a leaven that permeates our entire health care ministry at all levels, from sponsorship to governance, to the sacred work being done day to day in every Participating Organization. In the genuine respect shown to each person and their work, in responding with compassion and wisdom to the needs of those we serve, and with special concern for the poor and the vulnerable, we are doing the work of Justice. As we work together, trusting always in God’s grace to inspire and guide our efforts to build a community that empowers all to attain their full human potential, we become the leaven of Justice, promoting the reign of God in our world.

We, the Sisters of St. Scholastica Monastery, are inspired and deeply touched by all that has been accomplished in the past year by the dedicated employees of the Benedictine Health System. Their dedication has allowed Justice and our Benedictine health care ministry to grow and flourish. Paraphrasing the words of St. Paul, we thank God every time we remember you and when we pray for you we pray with joy, because of your sharing with us in the work of the Gospel (Philippians 1:3-4).

Lovingly with deep gratitude and fervent prayer,

letter from the prioress

sister lois eckes, osbprioress, st. scholastica monastery

| 2 | | 3 |

Dear Members and Supporters of our Benedictine Health System Community:

Justice, one of the four BHS Core Values, served as a solid foundation during this year of change. As you may know, on Jan. 1, 2008, the Benedictine Health System’s vision of focusing exclusively on addressing the needs of older adults became reality, inspiring us to be leaders in our industry through innovative care delivery and services. The future of long-term care is daunting — every day for the next 20 years, 10,000 baby boomers will turn age 60. This unique population expects health care services designed to keep them as active and engaged as possible. As we completed our organizational restructuring, centering on Justice and adopting a global vision helped us to embrace a new future for our Benedictine health care ministry.

As stewards of the ministry of our sponsors, the Sisters of St. Scholastica Monastery, we are pleased to share this year’s Benedictine Health System annual report with you. Included within are a few of our System’s accomplishments during the past year which highlight how Justice is lived every day throughout BHS. We hope that you will enjoy these stories of our rich heritage and commitment to meet the needs of each of our communities.

Our sponsors have entrusted us to protect, promote and provide for the health care needs of an aging population. We cherish their great gift and look forward with renewed enthusiasm to fulfilling the health care mission of Jesus through compassionate care of the sick and less fortunate while creating new models of care delivery and services and maintaining the traditions and values given to us by our sponsors.

We thank those who are called to be a part of the Benedictine Health System — our staff, physicians, volunteers, partners and friends — who provide the expertise, knowledge, training and support required to fulfill the Benedictine health care ministry.

Sincerely,

dale m. thompson, president/ceobenedictine health system

mary frances skala, jd, board chairbenedictine health system

letter from the ceo & board chair

| 4 | | 5 |

we are called to act withmicah 6:8

justiceWhat exactly is Justice? Many people think of Justice with

its simplest understanding of equality and fairness for all.

However, it is much more complicated than what is right or

fair. As a Catholic health care organization, we believe it is our

calling to hear and heed the Church’s call for Justice and Peace.

As is our custom at the Benedictine Health System, each year

we highlight one of our Core Values to study and grow as an

organization. In 2008, we focused on what the Value of Justice

means to us. Justice is often considered an important

element for an effective society. At BHS we defined it further

as how Justice relates to the common good and how we can

make meaningful contributions to our communities.

Like most things, Justice evolves and changes with variables that

influence it, such as situations, environments and individuals.

It is important to fully understand what Justice means and then

identify what our expectation is of Justice. During the year, we

learned that there are many variations and theories of Justice.

For example, there is the legal definition of Justice that deals with

crime and punishment. There is the ethical concept of Justice that

means we should get what we are due. Then there is the Biblical

foundation of Justice that calls us to act to each other as God.

Saint Benedict challenges each of us to act on behalf of Justice.

This means creating right relationships with each other

through individual responsibility and accountability. It means

advocating for those less fortunate or in need in any situation —

organizationally, locally, regionally and nationally. We work

to eliminate prejudice and to promote open and effective

communications and decision-making. We try to think beyond

our own selves and organizations and how we can contribute

to the common good.

As you read the pages of this annual report, we hope you will

enjoy the stories of our organizations and the profiles of our

residents as we show Justice through our actions and ministry

at the Benedictine Health System.

| 4 | | 5 |

max fowlerbenedictine health center at innsbruck

During his retirement years, Max, a former architect, wanted to keep busy after suffering from a stroke. So he tapped into his design skills and began woodcarving. Every year, one of his most prized carvings was a Santa figurine that he painstakingly designed for his daughter. Later, expanding on his talent, he started designing jewelry from the agates he collected. He even made the jewelry for his grand- daughter Teresa Klaphake’s wedding. Teresa works in the therapy department at BHCI and is able to visit her grandfather regularly.

| 6 | | 7 |

with a goal of creating a more just world,

the benedictine health system is called to

further the compassionate presence of god.

with our core values always as our guide,

following are selected highlights of the

system’s accomplishments during the fiscal

year ending june 30, 2008.

a new commitment to senior care

On Jan. 1, 2008, the Benedictine Health System began a new

focus as an independent Catholic health care organization

dedicated entirely to furthering long-term and senior care

services. This restructuring was the result of many months of

discernment and work on how to best serve the needs of our

communities. Through this restructuring, BHS will be able to

advance the Benedictine Living Community concept and to

provide senior health services for our regions. Essentia Health,

the former parent organization of BHS, remains a close partner

of BHS for acute care expertise and service. As part of this

restructuring, the rural and critical access hospitals that

were a part of the Benedictine Health System formed a new

organization called Essentia Community Hospitals and Clinics

(ECHC) and remain a part of Essentia Health.

a new direction

Following the successful organizational restructuring was the

development of a new strategic plan for BHS. This process

began almost immediately after the completion of the

organizational restructuring and was finalized in the summer

of 2008. A new vision statement for BHS was developed:

“Creating Benedictine Living Communities where health,

independence and choice come to life.” In addition, seven key

strategic imperatives emerged through the process that will

drive BHS efforts in coming years.

a quest for quality

The Benedictine Health System continues on our journey for

performance improvement. While many efforts for quality

improvement were achieved during the year, it is important

to note that BHS participated in and completed a rigorous

a year in review

| 6 | | 7 |

assessment process sponsored by the Minnesota Council for

Quality and was recognized with a Minnesota Quality Award

at the advancement level. In addition, receiving American

Health Care Association Quality Awards at the Step II level

were St. Mary’s Care Center, Winsted, Minn.; Mount Carmel,

Milwaukee, Wis.; and Villa St. Vincent, Crookston, Minn.; as

well as Step I awards for Benedictine Living Center of Garrison,

N.D.; Country Manor, Sartell, Minn.; St. Brigid’s at Hi-Park,

Red Wing, Minn.; and St. Rose Care Center, LaMoure, N.D.

Two ambitious quality improvement efforts were also

completed during the year for process management and

performance management.

a commitment to growth

Thoughtful growth of the System continued in 2008. BHS

welcomed Nazareth Living Center, St. Louis, Mo., and

GlenOaks Senior Living, New London, Minn., as new

Participating Organizations. Two new memory care and one

end-of-life construction projects at Benedictine Health Center,

Duluth, Minn.; at Madonna Towers of Rochester, Minn.; and

at St. Gertrude’s Health and Rehabilitation Center, Shakopee,

Minn., were important additions to BHS. Also, Madonna

Living Community of Rochester received official Benedictine

Living Community designation in 2008.

Grants were received by several BHS Participating

Organizations including a multi-million dollar award for

safe patient handling and a $344,000 award to improve

responsiveness to resident needs. The state portion of these

funds was awarded by the Minnesota Department of Human

Services. Other large awards include $250,000 from the

Minnesota Department of Human Services to Cerenity

Residence on Humboldt, St. Paul, to expand resources for

memory care in assisted living; St. Gertrude’s Health and

Rehabilitation Center, Shakopee, Minn., received a grant from

the Shakopee Mdewakanton Sioux Community for $200,000;

Prime West Community Reinvestment Program awarded $93,000

to St. Mary’s Care Center for safe patient handling of bariatric

patients; and the Minnesota Department of Labor and Industry

awarded $74,000 to nine BHS Minnesota facilities for safe

patient handling equipment.

a mention of service and creativity

Steve Chies, BHS senior vice president, long-term care

operations, was recognized with the Lifetime Achievement

Award by Care Providers of Minnesota. Dale Thompson, BHS

president and CEO, was noted as one of Minnesota’s 100 most

influential health care decision makers in 2008. The design and

architecture of the Living Community of St. Peter was on the

honor role of Minnesota Physician Magazine. The Benedictine

Health System received awards for its 2007 annual report and

other projects from the Aster Awards for Excellence in Medical

Marketing and from the Minnesota Health Strategy and

Communications Network.

In looking back at these accomplishments for the year, BHS

is energized and motivated by the challenges ahead to provide

service to those in need, to advocate for the common good,

and to promote and support the ministry of the Sisters of

St. Scholastica Monastery.

| 8 | | 9 |

justice with a sense of purposeAs a Catholic health care ministry, we are called to follow Jesus’

example of Justice and Peace by caring for others. We’ve found the

best way to help others — more specifically to help our residents

— is to provide them with a sense of purpose. We believe that by

honoring these individuals we are enhancing human worth.

Without a purpose in life, individuals tend to withdraw from

the world around them; this is especially true for the elderly.

It’s not uncommon to see men and women who were once filled

with confidence and determination lose their resolve as they

age. Physical and mental limitations may prohibit them from

participating in the activities that provided meaning in their life.

But at BHS Participating Organizations, staff members often look

for unique ways to provide our residents with a sense of worth.

At two facilities on the Iron Range of Minnesota, St. Michael’s

Health and Rehabilitation Center in Virginia and St. Raphael’s

Health and Rehabilitation Center in Eveleth, residents participate

in a project that requires them to make bandages from used bed

sheets. The bandages are then sent to a Catholic relief organiza-

tion for distribution. When relating this project to the Core Value

of Justice, it’s easy to identify the act of providing the needy with

supplies as Justice. But the underlying example of Justice is that

the residents are given a sense of purpose by contributing to the

common good. During the very first bandage-making session over

11 years ago, Signe, a 93-year-old woman with poor vision and

crippled hands, wanted to help despite her limitations. With some

determination, she was able to pull strings off the strips of sheets,

thus contributing to the cause. After an hour of working she was

asked how she felt about the project and responded by saying it

was nice to feel useful again. This is Justice in action.

Staff members at the Benedictine Health Center of Garrison,

N.D., are able to provide residents with a sense of purpose

through a meaningful gift that shows the resident as a valued

and respected individual. Staff members have dedicated their

own time and resources to make memory quilts for any resident

who wishes to receive one. While getting to know the resident

and working with their family, staff members make a quilt

featuring photos or representations of their hobbies, activities,

family, important events or previous jobs. It’s not unusual to

see quilts featuring the residents farming, golfing or enjoying

family life. Not only do these quilts serve as memorabilia, but

they are a source of pride as they remind the resident of the

worth and contributions they have provided to their family,

their community, the world.

| 8 | | 9 |

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.

Creating Benedictine Living Communities where health, independence and choice come to life.

mission

vision

core values

| 10 | | 11 |

mary setzler | richard “bud” setzlerbenedictine senior living at steeple pointe

When Bud and Mary sold their house and were looking for an apartment in the small town of Osseo, Minn., they looked no further than the spot where they were married and their children were baptized many years before. In fact, they ended up living across the street from their first home. Benedictine Senior Living at Steeple Pointe was built on the same location as the old Catholic church. “We came full circle,” said Mary. “We hope and pray that we can stay here until the end.”

| 10 | | 11 |

community benefitA defining element of Justice is reaching out to communities

to take care of those less fortunate through our actions and

ministry. At BHS, making an effort to achieve the common

good is a collective goal of our entire organization. Each of

our Participating Organizations strives to improve the health

of their residents, family members, employees and extended

communities.

Several years ago, the Catholic Health Association developed

a thorough system for its members to organize community

benefit programs and contributions. This system has become

the gold standard for planning, implementing and reporting of

community benefit in the United States. The impressive process

educates health care organizations on how to plan for programs

and activities that provide treatment or promote health as an

identified community need. BHS is proud to have participated

in this unifying reporting effort since its inception.

As an entirely long-term care organization, BHS uses the

following categories for reporting its contributions to the

communities it serves. These areas include 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.

During the 2008 fiscal year, the Benedictine Health System

provided $7,730,663 in quantifiable community benefit. Not

only does this figure represent a significant financial contribution

but also thousands of hours of dedicated professional time and

expertise by our staff members. As a Catholic long-term care

organization, we are pleased with this commitment to society and

to the communities we serve as we strive for the common good.

| 12 | | 13 |

benedictine health system foundationwe believe in quality health care

Across the Benedictine Health System, generous donors provided

nearly $3.3 million in charitable gifts and pledges to support the

Benedictine health care ministry.

These dollars have:

- funded construction of memory care units in

communities with great needs for this specialized

level of health care;

- built chapels to expand spiritual care in large

and small community facilities;

- and allowed for service expansion and facility

upgrades to better serve resident needs.

The Benedictine Health System Foundation (BHSF) experienced

changes as a result of the Benedictine Health System restructuring.

On Oct. 1, 2008, the Associated Foundations of the former BHS

hospitals were transitioned to a new parent corporation, Essentia

Community Hospitals and Clinics Foundation.

we believe in safe resident care

Through its new matching grant program, the Benedictine

Health System Foundation helped stretch the impact of safe patient

handling grants awarded to Participating Organizations. Studies

document the benefits of using mechanical lifting equipment to

reduce the risk of resident and employee injuries and enhance

care. Grants totaling more than $73,000 were awarded by the

Minnesota Department of Labor and Industry and matched by

BHSF to install ceiling tracks in resident rooms in nine facilities.

This initial safe patient handling effort was a contributing

2008 net asset growth

$17,106,801*2008 total contributions

$3,220,197*2007: $18,252,918*2006: $15,514,032*

2007: $4,536,834*2006: $4,500,836*

| 12 | | 13 |

factor in creating a BHS 12-facility collaborative, which will

receive nearly $2 million in pay-for-performance awards from the

Minnesota Department of Human Services. Another grant from the

Minnesota Department of Labor and Industry, totaling more than

$285,000, will be used to renovate and reconstruct 21 assisted

living units at Cerenity Care Center Residence on Humboldt to

better serve individuals with early to mid-stage dementia.

we believe in supporting each other

Year two of the BHS Corporate Employee We Believe campaign

reached an outstanding 82 percent participation and a two-year

total of $350,000 in contributions. These dollars have been used

to help 25 employees impacted by natural disasters, house fires

and unexpected illness through the Employee Emergency Fund;

five residents lived their dreams with funds from the Making

Dreams Come True program; 25 individual facility projects and

St. Scholastica Monastery’s Tanzanian mission projects received

additional support.

we believe in our communities

Development efforts continue to expand with the addition of

two Associated Foundations in Minnesota – St. Michael’s and St.

Raphael’s in Virginia and Eveleth. “Friend-raising” events such as

golf tournaments, galas and other community gatherings

helped increase volunteer involvement in local philanthropy.

Community-based and volunteer-led development councils

are growing friendships in support of BHS Participating

Organizations. We believe we can make a difference. Together,

Benedictine Health System Foundation, the Associated Foundations,

and their communities are making it happen.

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 medical center 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.clearwater valley hospital and clinics foundation, orofino, idaho**hi-park foundation, red wing, minn.innsbruck foundation, new brighton, minn.madonna living community foundation of rochester, rochester, minn., serving madonna towers of rochester and madonna meadows of rochester.saint anne foundation of winona, minn.st. eligius foundation, duluth, minn.st. francis regional medical center foundation, shakopee, minn.st. gertrude’s health and rehabilitation center foundation, shakopee, minn.st. isidore health center of greenwood prairie foundation, plainview, minn.st. joseph’s medical center foundation, brainerd, minn.**st. mary’s foundation, cottonwood, idaho**st. mary’s regional health center foundation, detroit lakes, minn.**st. michael’s foundation, virginia, minn.st. raphael’s foundation, eveleth, minn.tekakwitha living center foundation, sisseton, s.d.villa st. vincent/the summit foundation, crookston, minn.villa st. benedict foundation, lisle, ill.

* includes dollars from associated foundations that are a part of the essentia community hospitals & clinics foundation, effective oct. 1, 2008. ** associated foundations that are a part of the essentia community hospitals & clinics foundation, effective oct. 1, 2008.

associated foundations

| 14 | | 15 |

justice in dignityThe biblical definition of Justice calls us to do what is right in

all relationships; to have a right relationship with God. Merely

abiding by the law, as the legal definition would ask us to do, is

simply not enough. God expects us to act justly in all that we do

for others. We must live all our relationships with love and caring,

in prestige and regard, in grace and honor. We must live all our

relationships in dignity.

All individuals are worthy of our honor and respect. But often

it is our elderly who are easiest to ignore when they ask others

to fulfill simple human needs. They are often dismissed as being

difficult or demanding, when they are really just reaching for help.

But when an individual’s basic, innermost needs are satisfied by

effortless acts of Justice, they are set free from the pain and

suffering that the unfulfilled need caused. This is Justice at its core.

The staff at St. Rose Care Center, LaMoure, N.D., understands

that satisfying basic desires can give an individual a new lease on

life. Henry, a humble elderly bachelor, temporarily moved to St.

Rose to recover from a heart attack. When it was time for him to

return to his home, a St. Rose home health nurse accompanied

him only to find suboptimal living conditions. His home was

deemed uninhabitable and the St. Rose staff went into action.

They worked with other social service agencies to find not only a

suitable place for Henry to live, but one that would be his home.

Knowing how important his neighborhood was to him, they

managed to find an apartment a mere half-block away. Staff also

helped furnish his new home, and the home health staff continues

to see Henry on a regular basis to ensure he receives adequate

nutrition, hygiene and care. Together, the staff at St. Rose is a

perfect example of advocating for Justice with selfless compassion.

It’s not just our Benedictine Health System employees who live out

the Value of Justice in their everyday actions, but family members

of our residents as well. Take Keith and Jean Ann Stokes for ex-

ample (shown, right). Both residents of Iowa, Keith and Jean Ann

also have a home outside of Red Wing, Minn. When Jean Ann’s

memory loss became more than an inconvenience, Keith knew

that he could no longer meet her most basic needs on his own and

turned to the staff at St. Brigid’s at Hi-Park to provide her with the

dignity she deserved. Keith can be found visiting his beloved wife

on a regular basis, spending the day with her just like old times,

except now he might have to remind her of the name of a neighbor,

or that she has already taken her pills and now it is time for lunch.

But he shows no sign of irritation or annoyance. Only patience.

Only Justice.

| 14 | | 15 |

keith stokes | jean ann stokesst. brigid’s at hi-park

With her husband Keith by her side, Jean Ann will gladly tell guests about her days as a model in Waterloo, Iowa, where she hosted several presidents and movie stars in her home. She’ll share photos and newspaper clippings in which she can be seen modeling fur coats or posing as the perfect ’70s hostess. But she’s also quick to share that Keith served on a national suicide- prevention group, and spoke across the country, including segments on the Donahue show and Good Morning America.

| 16 | | 17 |

2007

2007 2008

2008 $ 163,042,046 $ 186,779,523

159,645,196 184,046,461

3,396,850 2,733,062

2,069,322 (2,550,079)

$ 5,466,172 $ 182,983

3,965 4,027

1,905 2,102

5,870 6,129

671,694 674,341

263,560 267,971

2,415 2,343

total operating revenue total operating expense operating income non-operating income

excess of revenue over expense

bed complement nursing facility beds assisted/independent units total beds/units utilization nursing facility resident days assisted/independent days total employee full time equivalents

consolidated statement of operations

selected statistics

financial data represented reflects bhs member organizations. statistics reflect member, co-sponsored and associate organizations.

| 16 | | 17 |

liabilities and net assets

$ 19,739,764 $ 20,806,800

3,711,149 3,655,764

23,450,913 24,462,564

7,212,433 7,995,621

139,228,551 139,870,181

61,401,690 65,998,727

$ 231,293,587 $ 238,327,093

2007assets

current liabilities

accounts payable and accruals

current portion long-term debt

total current liabilities

other liabilities

long-term debt

net assets

total assets

2008

$ 28,097,606 $ 31,353,531

10,939,663 14,279,148

3,969,478 1,823,225

43,006,747 47,455,904

45,999,551 48,835,291

131,815,891 134,703,475

10,471,398 7,332,423

$ 231,293,587 $ 238,327,093

current assets

cash and investments

accounts receivable

inventories and prepaid expenses

total current assets

investments

property and equipment

other assets

total assets

consolidated balance sheets

| 18 | | 19 |

$139.3

2008

2008

2008

2007

2007

2007

25.8%

$53.2

$140.7

24.3%

$49.6

private

private

nursing facility

medicaid

medicaid

assisted/independent

medicare

medicare

insurance/other

insurance/other

55.6%

$66.7

$26.7

58.1%

$70.2

$24.0

0%

$0

$0

20%

$75$50$25

$20millions

millions

$100

40%

$100

$40 $120

60%

$125

$60 $140

80%

$150

$80 $160

100%

$175

$180

nursing facilitycensus days

net resident service revenue

net resident service revenue

key financial highlights

12.5%

$33.3

12.0%

$31.5

6.1%

$13.2

5.6%

$12.0

| 18 | | 19 |

collaborationOne of our goals at the Benedictine Health System is to partner

with other health care organizations to meet community need.

This collaboration is an important part of our core business as

we reach out to impact health care delivery in our communities.

As we look toward the future, we strive to develop and enhance 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 as a commitment to quality and innovation.

operating revenue

2008: $95,420,5122007: $89,543,304

operating revenue

2008: $73,265,7462007: $61,238,435

total assets

2008: $105,288,2312007: $112,497,968

total assets

2008: $87,858,9312007: $59,593,448

co-sponsorship organizations associate organizations

| 20 | | 21 |

max the dog, regular visitor st. brigid’s at hi-park

The residents at St. Brigid’s at Hi-Park recognize the footsteps before their expected visitor arrives. The brisk clip of four paws is a distinctive sound, one that most residents look forward to. Fred Mohn brings Max to visit “grandma” Joyce about every other day, but others, such as Lorraine Peterson (shown) thoroughly enjoy a lick on the cheek or the happy wag of Max’s tail as well.

| 20 | | 21 |

board of

senior management

directors

team

mary frances skala, jd, chair sister martha bechtold, osb

sister mary odile cahoon, osbsister lois eckes, osb

sister kathleen hofer, osb sister mary christa kroening, osb

janet mohr, phd, vice chairrobert niedringhaus, md

terry scott, cpa

dale thompson president/ceo dennis acrea senior vice president, system strategy and business development steve chies senior vice president, long-term care operations lowell larson senior vice president, systems development donna loomis, jd senior vice president, legal services kevin rymanowski, cpa chief financial officer becky urbanski, ed.d. senior vice president, mission and community affairs

| 22 | | 23 |

n.d.

s.d.

kan.

minn.

mo.

wis.

ill.

| 22 | | 23 |

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 communities, inc. bismarck, n.d.

benedictine living center of garrison garrison, n.d.

prince of peace care center ellendale, n.d.

evergreen place

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

benedict court

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

st. rose care center lamoure, n.d.

rosewood court

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

benedictine senior living at steeple point osseo, minn.

carondelet long-term care facilities

carondelet manor kansas city, mo.

st. mary’s manor blue springs, mo.

villa saint joseph overland park, kan.

cerenity senior care

cerenity care center - bethesda of south st. paul 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.

cerenity residence on humboldt

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

cerenity residence - marion 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.

glenoaks senior living center new london, minn.

lewiston villa nursing home lewiston, minn.

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

madonna meadows of rochester rochester, minn.

madonna towers of rochester rochester, minn.

mount carmel milwaukee, wis.

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. mary’s care center winsted, minn.

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

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

tekakwitha living center sisseton, s.d.

villa st. benedict lisle, ill.

villa st. vincent crookston, minn.

facilities

| 24 | | 25 |

looking aheadJustice lives in large and small examples throughout the

Benedictine Health System. As illustrated in this report, by

upholding the Core Value of Justice we create a sense of place

and purpose for our residents, staff and volunteers, and

contribute to the common good by extending care for those

who are less fortunate. And Justice serves as our guide when

extending to new communities and as we offer outreach services

to improve the health of community residents. Justice keeps us

looking forward to create new ways to serve those in need.

As BHS looks toward the future, we build on our past. The

BHS was founded on the words of St. Benedict and has grown

with our Mission and Core Values. Now a new vision of

“Creating Benedictine Living Communities where health,

independence and choice come to life” shines the light on

tomorrow. Trusting in God’s grace to inspire and guide all

efforts, we will work to build a community that empowers

our residents and staff to attain their full human potential.

This new vision also holds a commitment to pursue performance

improvement. BHS and our Participating Organizations will continue

this quest through the processes of the Minnesota Council for Quality

and the American Health Care Association Quality Awards.

This new vision holds a commitment to pursue performance

improvement. Together, we will focus on our strategic imperatives

to grow our Mission and vision, to anticipate customer expectations

and advance new services. We will also invest in and develop our

workforce, who each day further our Mission and Core Values. We

will continue to be fiscally sound and identify strategic growth

opportunities for the System.

As BHS readies for 2009, the focus will be on the Core Value of

Hospitality. The standard definition of Hospitality includes warmth,

generosity and kindness, but the challenge of living Hospitality is in

welcoming Christ in each other and being open and accepting of

change. Over the past year, BHS embraced many changes and created

a vision that builds on these changes to enhance the ministry and

care to residents.

| 24 | | 25 |

walaska “val” battenburgmadonna towers of rochester

A former Chicago school teacher, Val picked up a new hobby after retiring and has made quite a name for herself. She says she started painting because she “needed something to do,” but in 2007 was a semi-finalist in the Easter Seals Art Contest. A bubbly woman at age 92, she still finds many ways of giving to others. In addition to donating several paintings to area foundations, she is a published writer and poet and is an inveterate volunteer who “aims to do what I can to make where I live a better, happier place.”

503 e. third street, suite 400duluth, minnesota 55805

1995 e. rum river drive southcambridge, minnesota 55008

www.bhshealth.org

© 2008 benedictine health system