2 0 0 7 A N N U A L R E P O R T

NO MATTER WHERE

WE WORK WITHIN THE

SMDC HEALTH SYSTEM,

NO MATTER WHAT

TYPE OF WORK WE DO,

WE SHARE THIS:

A MISSION OF BRINGING

THE SOUL AND SCIENCE

OF HEALING TO THE

PEOPLE WE SERVE.

10 years of a shared vision10y f

01.01.97 S t . M a r y ’s & D u l u t h C l i n i c I n t e g r a t i o n

01.08.97 S M D C h o l d s f i r s t o f f i c i a l b o a r d m e e t i n g

03.11.98 S M D C a c q u i r e s P i n e M e d i c a l C e n t e r

06.16.98 S t . M a r y ’s M e d i c a l C e n t e r e a r n s L e v e l I I t r a u m a

c e r t i f i c a t i o n w i t h p e d i a t r i c c o m m i t m e n t

11.15.98 H e a r t C e n t e r e a r n s f i r s t To p 1 0 0 D e s i g n a t i o n

07.14.98 E a s t R a n g e C l i n i c s j o i n S M D C

11.05.99 & 11.12.99 P h o n e p r e f i x 7 8 6 - c o m e s t o S M D C

03.29.00 P o l i n k s y c e l e b r a t e s 5 0 t h a n n i v e r s a r y

09.01.01 M i l l e r - D w a n j o i n s S M D C

09.18.01 S t . M a r y ’s H o s p i t a l o f S u p e r i o r, D u l u t h C l i n i c -S u p e r i o r o p e n h o u s e

01.30.02 S M D C F o u n d a t i o n e s t a b l i s h e d

05.18.02 N a t i o n a l C a n c e r I n s t i t u t e d e c l a r e s N 9 7 4 1 t r i a l a s u c c e s s

03.06.03 E l e c t r o n i c M e d i c a l R e c o r d s a r r i v e a t S M D C

06.01.03 C a r e M a n a g e m e n t c o m e s t o S M D C

07.24.03 S t . M a r y ’s M e d i c a l C e n t e r A u x i l i a r y c e l e b r a t e s 5 0 t h a n n i v e r s a r y

06.23.05 D u l u t h C h i l d r e n’s l a u n c h e d

12.01.05 A n t i c o a g u l a t i o n c l i n i c s g o s y s t e m w i d e

03.27.06 C y b e r K n i f e ® c o m e s t o M i l l e r - D w a n

08.18.06 & 09.19.06 D u l u t h C l i n i c F i r s t S t r e e t o p e n h o u s e

“THE IDEA WASN’T UNIQUE, BUT OUR SUCCESS WAS.“Integrated health systems were a popular experiment in the mid-90s. But if you look around today, many of the hospitals and clinics that signed integration agreements have parted ways. SMDC Health System, on the other hand, is stronger than ever. By keeping sight of our common mission, vision and values, we have delivered on our promise of creating a world-class healthcare system for rural communities.”

Sister Kathleen Hofer, OSB, Board Chairand CEO Peter E. Person, MD

“WE SHARED A COMMON LANGUAGE. When we started talking about integration, the fi rst question for both parties was whether or not we had a shared mission and values. We soon discovered that we did – we may have used different words here and there, but it was clear we were both here to provide excellent care to patients.”

After years of talks, the Northland’s largest hospital and clinic system offi cially integrate– and the SMDC Health System is born.

01.01.97 S t . M a r y ’s & D u l u t h C l i n i c I n t e g r a t i o n

SISTER KATHLEEN HOFER, OSB, BOARD CHAIR

CEO PETER PERSON, MD

“IT’S THE BEST THING THAT COULD’VE HAPPENED

HERE.”

Judy BircherExecutive Assistant, Pine Medical Center

Judy is pictured with former Administrator Michael Hedrix, left, who helped with the merger, and current Administrator, Tim Zwickey

01.08.97 S M D C h o l d s f i r s t o f f i c i a l b o a r d m e e t i n g

“SMDC IS WELL-EQUIPPED AND READY FOR THE FUTURE.”

Lauren Larsen and Sister Monica Laughlin could not predict the future when they sat down for their first SMDC Health System Board meeting 10 years ago. But the retired engineer and Benedictine Sister were both committed to preserving quality heal thcare in the region. “This partnership we created was something very different,” recalls Larsen. “There was no handbook.”

There was a determination to succeed. “It was our job to look at the long-term needs of the system. We focused on long-range planning and on making sure we had the right people doing the right jobs,” says Larsen. “We’ve spent 10 years building something great—and today SMDC is well-equipped and ready for the future.”

Larsen left the SMDC Board at the end of 2006, but he plans to use lessons from the past 10 years in a new SMDC-related venture. He serves on the Board of Directors for Essentia Health, a partnership between SMDC and the Benedictine Health System. “With the experience we have now,” he says, “we can go anywhere.”

03.11.98 S M D C a c q u i r e sP i n e M e d i c a l

LAUREN LARSEN

JUDY BIRCHER

Throughout most of the 1990s, Judy Bircher and her neighbors worried that Pine Medical Center would close. Then the little hospital and nursing home teamed up with SMDC—which was great news for patients, community leaders and employees like Judy.

“We went from the depths of despair to this being a great place to work,” says Judy. “We wouldn’t be here if not for SMDC.”

Linda Way, RNEmergency Service DirectorSt. Mary’s Medical Center

“TRAUMA IS DEFINITELY

NOT A ONE-MAN SHOW.” After 34 years in Emergency Services, Linda Way has developed a personal philosophy about miracles. “They are often a combination of what we can’t explain and what we can,” she says. “It’s the soul and science of healing coming together that makes them happen.”

Earning designation as a Level II Trauma Center in 1998 remains a proud moment for Linda—but her true pride lies in the physicians, nurses and other employees who understand that their teamwork has the power to work wonders for patients. “Trauma is defi nitely not a one-man show,” says Linda. “Everyone, from emergency responders to trauma surgeons, knows they are one part of a larger effort to save a life.”

The seal of approval when it comes to caring for severely injured children and adults.

06.16.98 S M M C e a r n s l e v e l I I t r a u m a c e r t i f i c a t i o n w i t h p e d i a t r i c c o m m i t m e n t

LINDA WAY, RN

T O P 1 0 0 D E S I G N AT I O N S

St. Mary’s Medical Center has earned a number of Top 100 designations from Solucient,® a Chicago-based company that monitors quality using a database of national hospital discharge records. Solucient honors are based solely on objective analysis of outcomes, so the “winners” are not just the hospitals themselves, but also the communities where these high-performing hospitals are located.

Heart Care1998 to 2006

Orthopaedic Fracture Repair1999

Hospital Care1994, 1995,1997, 1998

“WE ALL HAVE UNIQUE SKILLS, BUT

OUR STRENGTH IS IN OUR TEAMWORK.” Patients looking for the country’s best heart care can fi nd it right here at home. How do we know? Because St. Mary’s Medical Center, home to the St. Mary’s Duluth Clinic Heart Center, has been named a Top 100 Heart Hospital eight years in a row.

The Heart Center has long demonstrated the power of partnership between a large multi-specialty clinic and a regional medical center. Since its inception in 1983, the Heart Center has offered leading-edge treatments in areas ranging from electrophysical stimulation to robotic heart surgery. It has also offered patients access to teams of highly skilled specialists, ranging from cardiothoracic surgeons to registered nurses,who are at the heart of the Center’s success.

“We all have unique skills, but our strength is in our teamwork,” says Invasive Cardiovascular Technologist Erin Serre. “Everybody is an integral part of the whole process. It’s nice to be part of an institution that works that way.”

11.15.98 H e a r t C e n t e r e a r n s f i r s t To p 1 0 0 D e s i g n a t i o n

ERIN SERRE

From left: Electrophysiologist Michael Mollerus, MD, Cardiovascular Technologists Erin Serre and Trisha Kallinen, and Cardiologists Kimberly Boddicker, MD, and Michael Lucca, MD.

“THE MERGER WAS DONE FOR THE RIGHT REASONS AT THE RIGHT TIME.”When it comes to physician medical practices, there is strength in numbers. Just ask physicians at the East Range Clinics, who joined the Duluth Clinic in 1998. With that merger, the Duluth Clinic’s 10th in two decades, the Duluth Clinic network reached from International Falls, Minnesota, south to Spooner, Wisconsin.

“The economics of health care have been challenging since the 1980s,” says Gary Lishinski, who managed the East Range Clinics prior to the merger. “We knew we needed to grow or join a larger system. The doctors here wanted a physician-led organization, so the Duluth Clinic was a good fi t for us.”

Today, nearly one third of the Duluth Clinic’s 400 physicians work at the Duluth Clinic’s regional and neighborhood sites. They are supported by hundreds of nurses, technicians, and other dedicated professionals who take pride in the service they provide to their home communities.

“The merger gave our patients better access to specialized services in Duluth, and also brought more of those services here through physician outreach,” says Carl Passal, MD, who was the clinic’s president during the merger. “The merger was done for the right reasons at the right time.”

Strength in numbers A look back at the Duluth Clinic’s growth

Mergers1981Lakeside1983West Duluth1987Deer River1992Spooner1993Superior1994AshlandHibbingInternational Falls1995Hayward 1998East Range Clinics Aurora Babbitt Chisholm Ely Virginia

New clinics1979Hermantown

07.14.98 E a s t R a n g e C l i n i c s j o i n S M D C

CARL PASSAL, MD

Carl Passal, MD, (foreground), with Gary Lishinski, Regional Development Director (right), and staff with 30 or more years at the clinic.

On the job, Rod Nygard measures his success by what people don’t notice. “When things are working, people never think about what we do,” says Nygard, referring to the miles of fax, phone, modem and trunk lines weaving across the SMDC Health System.

Every time you dial a 5-digit internal phone extension or hand patients a card with a phone number beginning with 786-, you have Rod and his colleagues to thank for it. They devoted nine months to inventories of current phone systems before undertaking a marathon phone switchover at St. Mary’s Medical Center that kept Rod up for more than two days.

“I was here for 27 hours straight during the cutover. I went home for two hours and then came back for another 12,” recalls Rod. “Many of my coworkers did the same.”

Why get so worked up over phones? “A phone line is often a patient’s fi rst connection to care,” says Rod. “When the phones work so well that everyone takes them for granted, we know we’re doing our part in caring for patients.”

Rod Nygard, Project ManagerSMDC Telecommunications

Physical disabilities are as unique as the people who live with them. Two people who share a medical diagnosis can have very different ways of coping with their individual challenges and opportunities.

“We understand that a disability affects the whole person,” says Polinsky Manager Marcia Hermann Johnson, MSW. “It’s more than physical. It affects their relationships, their emotions and their spiritual life.”

Each year, hundreds of children, teenagers and adults come to Polinsky for sessions with therapists from Polinsky and Miller-Dwan. Some patients come for a few weeks; others may come weekly for the rest of their lives.

Each time, they work with teams of therapists who help patients face the challenges before them. “We focus on independence and abilities rather than disabilities. We focus on function,” says Marcia. “We are committed to hope and possibility.”

Marcia Hermann Johnson, MSW, Manager, (foreground) with Speech Language Pathologist Peggy Stone, displaying a quilt she made to commemorate Polinsky’s 50th Anniversary

11.05.9911.12.99

T h e p r e f i x 7 8 6 - c o m e s t o S M D C

“A PHONE LINE IS OFTEN A PATIENT’S FIRST

CONNECTION TO CARE.”

“WE ARE COMMITTED TO HOPE AND POSSIBILITY.”

05.26.00 P o l i n s k y c e l e b r a t e s 5 0 t h a n n i v e r s a r y

MARCIA HERMANN JOHNSON, MSW

ROD NYGARD

From the time it opened its doors in 1934, Miller-Dwan Medical Center was Duluth’s little hospital with a big heart. Even after 60 years, the staff remained small enough that the employees knew each other by name.

So it wasn’t easy for hospital offi cials to acknowledge in the late 1990s that Miller-Dwan could no longer make it on its own. The national healthcare landscape simply had changed too much; small, independent hospitals were either closing or fi ghting to survive.

Fortunately, Miller-Dwan administrators had options—and in 2001 they formally joined the SMDC Health System. “We wouldn’t be here if we weren’t integrated,” says Miller-Dwan Medical Director Joe Leek, MD, who was part of the administrative team that recommended joining SMDC. Maureen Mahoney, RN, also a part of the team, agrees. “It was the right thing to do for our patients and our employees.”

While the transition from working for a small hospital to working for a large organization has been diffi cult for some employees, Maureen and Dr. Leek say Miller-Dwan today is stronger than it has been in years. “Outpatient Surgery has grown beyond anyone’s expectation. So has Rehabilitation, which plays a growing role in helping patients coming out of (St. Mary’s) critical care,” says Dr. Leek. “Miller-Dwan has not only survived, it has prospered.”09.01.01 M i l l e r - D w a n

j o i n s S M D C

Maureen Mahoney, RN, former Nursing Administrator and Joe Leek, MD, Miller-Dwan Medical Director

“WE CAME TOGETHER TO PROVIDE THE CARE PEOPLE NEED.”The Duluth Clinic-Superior’s Nancy Ursin can list a half dozen reasons why she appreciates having a hospital and medical clinic in her hometown. But she can sum up the reason closest to her heart in one word: mom. “My mom doesn’t have to drive over the bridge into Duluth to see the doctor,” explains Ursin. “That may not seem like a big deal, but for my mom and many of our elderly patients, it makes a world of difference.”

The fate of St. Mary’s Hospital of Superior hasn’t always been certain. But with support from the SMDC Health System and federal designation as a critical access hospital, SMHS will continue serving Nancy Ursin’s family, friends and neighbors for years to come. And having the hospital and clinic under one roof makes receiving care easier than ever before.

“It’s so easy to order x-rays and labs, or to schedule surgery,” says Nancy, who says patients appreciate being able to walk right over from the clinic to the hospital for tests. Working under one roof has fostered greater cooperation among clinic and hospital employees, many of whom have become friends over the years. “I love the community here,” says Nancy, talking about the hospital/clinic campus. “I like that we came together to provide the care people need.”

09.18.01 S M H S , D u l u t h C l i n i c -S u p e r i o r h o s t o p e n h o u s e

“WE DID IT TOGETHER.”

Andy Lisak’s grandparents raised 17 children, most of them born at St. Mary’s Hospital of Superior. Many of their daughters volunteered or worked at the hospital, so when Andy wanted to fund a memorial to his grandparents, SMHS seemed the perfect fi t.

In just one month, Andy and 45 members of his family raised $20,000 to remodel the hospital chapel and have it dedicated in George and Agnes Stariha’s names. “It was a great effort to raise that amount of money, because no one in my family could have done it by themselves,” says Andy, who serves on the SMHS Foundation Board. “We did it together.”

In 2002, the Duluth Clinic Foundation, St. Mary’s Medical Center Foundation, and SMHS Foundation united to form the SMDC Foundation. While each foundation continues to pursue its unique mission, banding together gave them even more resources to reach out to donors. Thanks to their collective efforts, SMDC’s foundations raised more than $1.5 million last year. That translated into $749,805 in grants for everything from chapel remodeling projects to innovative medical research.

01.30.02 S M D C F o u n d a t i o n e s t a b l i s h e d

NANCY URSIN, CA

ANDY LISAK

From left: Nancy Ursin, CA, Team Lead and LouAnn Ross, Surgical Secretary

SMHS Board Member Andy Lisak, back right,

with members of his family

By the numbersDuluth Clinic physicians and researchers from more than a dozen specialties participate in research studies and clinical trials, giving patients access to leading-edge treatments for everything from rheumatoid arthritis to heart problems. Here’s a look at the numbers:

Since 20003,754 – patients enrolled in research studies 468 – number of studies offered 53 – papers published by physicians, nurses and scientists 30 – number of specialties participating in studies

05.18.02 N C I d e c l a r e s N 9 7 4 1t r i a l a s u c c e s s

“SCIENCE IS A TOOL WE USE TO FIGHT CANCER, BUT COMPASSION IS THE ART WE PRACTICE TO HELP PATIENTS HEAL.” DANIEL A. NIKCEVICH, MD, PhD

James Krook, MD, (standing) and Daniel Nikcevich, MD, PhD

Cancer patients in rural areas had little or no access to promising new cancer drugs when James Krook, MD, joined the Duluth Clinic in 1975. That didn’t sit well with the young oncologist, who believed all patients deserved access to leading-edge cancer care.

Today, Duluth Clinic Cancer Center patients are participating in 100 clinical research studies this year alone—giving patients access to treatments, medications and medical devices earlier than most people can receive them.

Some of these studies, like the National Cancer Institute’s N9741 trial that established a new standard of care for metastatic colorectal cancer, have garnered national attention for Dr. Krook and his colleagues. But hematologist/oncologist Daniel Nikcevich, MD, PhD, believes it is the compassion of the entire Cancer Center staff that sets the Duluth Clinic apart.

“We’re proud of what we can offer patients, but it’s important to remember medicineis about more than picking the right drug,” says Dr. Nikcevich. “Science is a tool we use to fi ght cancer, but compassion is the art we practice to help patients heal.”

Linda Harper is a lot tougher than she looks. Underneath her blonde curls and easy manner is a woman willing to endure criticism to work for something she believes in. Fortunately for SMDC, Linda has a passion for the promise of electronic medical records (EMRs).

Anyone who has followed electronic medical records at SMDC knows the switch from paper to electronics hasn’t always been easy. As the people responsible for EMR training and development, Linda and her colleagues have worked hard to make the transition as smooth as possible.

Today, Linda can count some of the EMR’s harshest initial critics among its strongest supporters. They have come to understand what Linda always saw: EMRs improve care for patients. “We are defi nitely ahead of the national curve on this one,” says Harper, referring to recent federal legislation requiring all healthcare organizations to adopt EMRs. “It’s exciting to be a pioneer.”

03.06.03 E l e c t r o n i c M e d i c a l R e c o r d s a r r i v e a t S M D C

“IT’S EXCITING TO BE A PIONEER.”LINDA HARPER, RN, MA

Lead RN Analysts Linda Harper, RN, MA and Russ Maron, RN

When it comes to innovative patient care, you might expect Pharmacist Mickey Zupetz to talk about the latest leading-edge drugs. But one of the greatest advances he’s seen in his 16 years at St. Mary’s Medical Center relies on an art as old as civilization itself.

Each weekday at 8:45 a.m., Zupetz sits down with chaplains and physical therapists, surgeons and social workers, registered nurses and respiratory therapists to discuss the care for every patient on the Orthopaedic fl oor. These daily conversations, known as Care Rounds, ensure that everyone is on the same page when it comes to patient care.

These conversations take place on every unit, every day. “We’ve broken down the barriers of patient care,” says Zupetz. “When it comes to making decisions, we’re not operating in isolation anymore.”

Foreground: Kim Denny, RN, Mickey Zupetz, RPh, and Thomas Patnoe, MD Background: Medical Social Worker Jeannie Carroll and Discharge Transition Specialist Michelle Bergum“WE’VE BROKEN DOWN THE

BARRIERS OF PATIENT CARE.”MICKEY ZUPETZ, RPh

06.23.05 D u l u t h C h i l d r e n’s l a u n c h e d

Mary Flaa wasn’t in Duluth more than a month when she joined the St. Mary’s Medical Center Auxiliary. That was 40 years ago, and she’s still going strong.

Mary is one of more than 1,000 adults and teens who volunteer at SMMC, Miller-Dwan Medical Center and St. Mary’s Hospital of Superior. Flaa devoted most of her years to the St. Mary’s Gift Shop, where she was the shop’s buyer. “I always joked that if something I bought didn’t sell, I’d buy it,” she recalls.

SMDC’s hospital gift shops are powerful fundraising tools for the three hospital auxiliaries, which donate all profits back to the hospitals they serve. Last year alone,they donated more than $174 ,000 for everything from student scholarships to rehabilitation equipment.

Mary has also been an active board member of the SMMC Auxiliary, as well as an offi cer on Minnesota’s Hospital Auxiliary Board.

“It’s about doing something good for patients, even if you’re not directly involved in their care,” says Mary. “It feels good knowing we are supporting their care.”

06.24.03 S M M C A u x i l i a r y C e l e b r a t e s 5 0 t h a n n i v e r s a r y

Children don’t care that Cori Jordahl has a Masters’ Degree in Child Life and Family-Centered Care. They’re more interested in the fact that she plays a mean game of Nintendo’s Mario Kart and understands that watching Nickelodeon can be good medicine—if not for the body, then certainly for the heart.

Through Duluth Children’s, SMDC offers the region’s most sophisticated pediatric services. Duluth Clinic physicians treat children in more than 40 pediatric specialties and St. Mary’s Children’s Hospital offers the region’s only pediatric and neonatal intensive care services.

Parents understand and appreciate the medical expertise available through Duluth Children’s. Children who are really sick appreciate Cori, whose job it is to make sure they feel as okay as possible during a hospital stay. “A lot of my job is spending time talking with the kids, their siblings and their parents,” says Cori, who is trained in helping children and families cope with serious illness.

Cori also makes sure children understand what’s happening at the hospital. “You have to speak the child’s language,” explains Cori, who often spends time with children before and during medical procedures. “Kids don’t understand the words we use, and words can be very frightening. It’s my job to take away as much of that fear as I can.”

“YOU HAVE TO SPEAK THE CHILD’S LANGUAGE.”

MARY FLAA

Mary Flaa, Volunteer (foreground) and Margaret Gehring, SMDC Director of Volunteer Services

Cori JordahlChild Life Specialist

03. 27.06 C y b e r K n i f e ® c o m e s t o M i l l e r - D w a n

No one wants cancer, not for themselves or for anyone they love. A diagnosis signals the beginning of a long journey, where fear and fatigue can sometimes make it diffi cult to keep sight of healing and hope.

Doug Bennett and his colleagues in Radiation Oncology understand this—and it’s why they share the best of their compassion and expertise with every patient who walks through the door.

“CyberKnife sets us apart,” Bennett says, referring to the precise radiation treatment machine SMDC purchased in 2006. “It’s a sophisticated technology, and we’re operating one of only 75 machines in the country. But technology is only part of the equation. It’s the combined power of our people and our technology that assures patients there is reason for hope.”

12.01.05 A n t i c o a g u l a t i o n c l i n i c s g o s y s t e m w i d e

Patients on the blood thinner warfarin can identify with Goldilocks and the Three Bears. Their warfarin levels must be just right—not too high, not too low—if they want the medication to work. It’s a particularly tough balancing act, considering that everything from brussel sprouts to green tea can interact with the drug.

Duluth Clinic patients taking warfarin don’t have to hold vigil alone, thanks to an Anticoagulation Program that spans 17 clinics in northern Minnesota and northwestern Wisconsin. The clinics are staffed by registered nurses who make sure patients are eating right, coming in for regular blood tests, and watching for side effects or drug interactions.

“Having nurses check in with patients really results in better care,” says Duluth Clinic–Ashland’s Lisa Wilkinson, RN, one of 72 nurses providing this service systemwide. “We make sure they get their regular blood tests, but we also talk about their diet, their energy levels, and other medications. We see the whole person, not just a number from a blood test.”

“WE SEE THE

WHOLE PERSON,NOT JUST A NUMBER.”

From left: Registered Nurses Heidi Larson, Lisa Wilkinson and Deb Jonas-Mackenzie

LISA WILKINSON, RN

Doug Bennett, MSPhysicistMiller-Dwan Radiation Oncology

08.19.06 D u l u t h C l i n i c F i r s t S t r e e t O p e n H o u s e

Building construction and remodeling takes time, money and planning. Lots of planning. Just ask the staff in SMDC Facilities Planning & Architecture. This past year, years of work paid off with the grand opening of two new clinics in Duluth and Virginia.

“It’s fun to put a plan together and see it come through,” says Steve, who handled the project in Virginia. “It was our job to make sure they had everything they needed, from desk chairs to imaging equipment.”

New buildings, including the $80 million Duluth Clinic First Street Building, are just part of the staff’s work. In January, the entire facilities team was juggling 168 projects, including the remodeling of the Duluth Clinic Third Street Building (the Third Street work falls to Steve’s colleague, Maxine Poldoski).

Keeping people happy and on budget isn’t easy, but it’s worth it. “To see a project come together, that’s why you do this,” says Steve. “It feels good to build something beautiful for our communities.”

“IT FEELS GOOD TO BUILD SOMETHING BEAUTIFUL FOR OUR COMMUNITIES.”

Project Managers Steve Holter, Maxine Poldoski and Project Coordinator Tami Johnson

09.19.06 D u l u t h C l i n i c V i r g i n i a O p e n H o u s e

STEVE HOLTER

SMDC Health SystemF I N A N C I A L P R O F I L E (IN THOUSANDS)

Year Ended June 30 .................................................. 2 0 0 6 .......... 2 0 0 5—————————————————————————UNRESTRICTED REVENUE: Net patient revenue ......................... $722,215 ...... $683,233 Other operating revenue .....................21,027 ..........16,769Total revenue ...........................................743,242 ........700,002—————————————————————————EXPENSES: Salaries and benefi ts .........................454,099 ........417,149 Supplies ...............................................117,035 ........112,747 Purchased services..............................27,818 ..........31,332 Provision for uncollectible accounts .........................19,012 ..........31,336 Depreciation and amortization ...........36,867 ..........35,543 Other .......................................................77,625 ..........64,388Total expenses .........................................732,456 ........692,495—————————————————————————(LOSS) INCOME FROM OPERATIONS ..........10,786 ............7,507—————————————————————————NON-OPERATING GAINS (LOSSES): Income on funds designated by Board ..............................4,853 ............2,768 Net realized gains .................................11,248 ............9,688 Other .........................................................2,622 ............ (555) 18,723 ..........11,901Revenue in excess of expenses ...........$29,509 ........$19,408

—————————————————————————EMPLOYEES: Physicians ..................................................415 ...............399 All other employees ...............................6,239 ............5,946Total Employees ..........................................6,654 ............6,345—————————————————————————STATISTICS:

SMDC Sites ...................................................22 .................22 Encounters ..........................................850,331 ........840,341 Surgeries ...............................................22,054 ..........20,954 Outpatient visits ..................................225,394 ........226,916 Cardiac procedures................................9,677 ..........10,113 Diagnostic procedures ........................24,708 ..........23,024 Emergency Care and Trauma Center visits .............................50,301 ..........49,034 Births ........................................................1,543 ............1,500 Average Daily Census ...............................317 ...............316—————————————————————————DISCHARGES Adults and Pediatric .............................23,949 ..........24,554 NICU ............................................................304 ...............277Total Discharges .......................................24,253 ..........24,831—————————————————————————PATIENT DAYS: Adult & Pediatric ................................110,714 ........110,623 NICU .........................................................4,945 ............4,704Total Patient Days ...................................115,659 ........115,327