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“Be transformed by the renewal of your mind, that you may discern what is the will of God, what is good and pleasing and perfect.”

Romans 12:2

For people of faith, the concept of transformation is not new. Believers in every generation have strived to be faithful “transformers.” History is filled with stories of powerful leaders and humble servants who, thanks to their sense of mission and purpose, changed their world for the better.

For hundreds of years, our Sponsors have carried on Jesus’ healing work in the world. In essence, our Sponsors planted the seed of a ministry that has grown steadily, providing shelter, comfort and care to people in need. Over the years, these dedicated women and their collaborators – associates and physicians in communities all over the United States – have helped transform the lives of millions of people by providing care to meet patients’ physical and spiritual needs.

 Letter to Associates, Colleagues and Friends

Today, Health is called to carry on this transfor- Q And you will learn about our Healthcare That Leaves mational work. Rooted in faith, and growing together, we No One Behind emphasis on creating a new model of access are building on the remarkable progress we have made as leadership that will help us accelerate our goal of achieving a healing ministry. 100 percent access to care.

We are blessed with an opportunity to transform the way You will also read about the unique Enabling Strengths that healthcare is delivered in the United States, made manifest are helping us accomplish our Mission in a manner consistent by the implementation of our Strategic Direction as we with our Values. commit to providing Healthcare That Works, Healthcare That Q We are building a model community of Inspired People Is Safe, and Healthcare That Leaves No One Behind, for Life. by addressing the individual spiritual, physical, social and This work is made possible by our enabling inner strengths of professional needs of those who serve with us. inspired people, trusted partnerships, empowering knowledge, and vital presence in the communities we serve. Q We are creating Trusted Partnerships with other organizations that share our values. Through our Strategic Direction, we are in essence deepening our roots and extending our branches, ensuring that the Q We are developing Empowering Knowledge by using lives of those we serve are sustained and strengthened by technology to transform the care we provide. the care we provide. This Annual Report highlights the work Q We are working within the communities we serve to of associates and clinicians who are providing that Mission- ensure that we have Vital Presence and are where we are centered care every day and moving us to the realization of needed, how we are needed to be there. our Vision. For the good work and service of these caregivers, There is energy and enthusiasm around our Strategic we are proud and grateful beyond words. Direction as we continue to see the value in working together This year, Ascension Health made significant progress in a as a system. number of areas, including work begun on implementing our We have also made significant achievements in the areas Strategic Direction. of Mission Integration and Leadership Formation across Q You will read how the Healthcare That Works team is Ascension Health. Our commitment to forming and nurturing focusing its efforts on delivering a consistent, exceptional lay leadership is continuing, as leaders throughout the system Ascension Health Experience to persons we serve. actively participate in the Formation for Catholic Healthcare Q You will see that our Healthcare That Is Safe team is Ministry Leadership program and the Ongoing Executive exceeding its goals on our path toward clinically excellent care Formation program. We are committed to developing our with zero preventable injuries and deaths in our hospitals future leaders and fostering workplace spirituality so that our by July 2008. ministry may be sustained for centuries to come.

 To further our Mission, this year the Sponsors Council and the adopting guidelines by the Catholic Health Association for Board developed a strategic approach to strengthening the planning, measuring and documenting community benefits. Catholic health ministry, including a framework for considering This effort will help us better tell the story of our service to collaboration with other Catholic health systems. those in need, increasing understanding of our role in the healthcare safety net for the uninsured and underserved. We have been blessed with another strong year operationally, enabling us to increase our commitment to charity care. Hundreds of years ago, our Sponsors began this ministry Together, we provided nearly $704 million in Care of Persons of faith. Today, Ascension Health continues their legacy, Who Are Poor and Community Benefit in fiscal year 2006, extending this healing Mission through the work of more representing the seventh consecutive year we have been than 100,000 associates. We share a sacred obligation on able to increase the level of charity care our ministry provides. behalf of those we serve. It is a responsibility we accept This commitment is central to our Mission and one we share humbly; a call to ministry that demands the best of each of with Catholic healthcare organizations across the country. us, every day. Together, with God’s help, we will accomplish Ascension Health recently joined other Catholic systems in marvelous things.

Jack Mudd, JD, JSD Sr. Barbara A. Moore, CSJ, PhD Anthony R. Tersigni, EdD, FACHE Chair, Board of Trustees Chair, Sponsors Council President and CEO

 The physician and nursing staffs at Saint Thomas Health Services are committed to bringing new therapeutic and informatics technologies to the patient care process that will transform the patient’s experience in receiving care.

John Pirolo, MD Chief Medical Information Officer Saint Thomas Health Services Nashville,

 I try to make everyone feel comfortable and treat them the way I would want to be treated if I was a patient.

Angela Baker Patient Care Technician Carondelet Health Kansas City,

 2020: Our Vision Realized Envisioning a Transformed Healthcare System

We recently reached the end of our first year in We will fulfill our promise to those we serve by delivering Healthcare That Works, Healthcare That achieving the Strategic Direction we set forth last Is Safe and Healthcare That Leaves No One Behind, fall – a 15-year guide to realizing our Vision as for Life. This will be made possible by our enabling a Catholic health ministry. Our Strategic Direction strengths of inspired people, trusted partnerships, empowering knowledge and vital presence in the defines the preferred future state of Ascension communities we serve. Health and challenges us to extend our line of We made significant progress this year both in sight to the year 2020. continuing our efforts on behalf of our Call to Action and in developing the infrastructure and establishing Through the evolution of our Call to Action, it priorities for the work represented in our Enabling commits us to provide 100 percent access to safe, Strengths. In partnership with our Health Ministries, effective care in ways that satisfy patients, associates we are collaborating to define new ways to deliver and physicians. care, identify best practices and learn from one another.

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 I enjoy working at Lourdes because there is a real family atmosphere and a level of camaraderie between employees that is different from other hospitals in our community.

Kevin A. Heintzelman, DO Lourdes Riverside Medical Associates Our Lady of Lourdes Memorial Hospital Binghamton,

 St. Vincent’s Hospital offers a unique sense of one-on-one interaction between associates and patients. Once you enter the facility, you can feel the compassion throughout the campus.

Synoricery Crenshaw Pharmacy Technician II St. Vincent’s Hospital Birmingham,

 Healthcare That Works Leading the Way to the Ascension Health Experience

Danielle Anderson* didn’t have any particular each step of her care, and listened to her questions expectations about hospital care before her first and concerns. It was the emphasis on meeting not only Danielle’s physical needs, but her emotional needs as inpatient stay. She had recently been diagnosed with well, that made the biggest impression on her. asthma, and receiving the diagnosis was somewhat of When Danielle shared her experience with members of a relief because it helped explain the symptoms she had the Healthcare That Works team of Ascension Health, been dealing with for years. When a particularly bad she contributed to the definition of the Ascension Health Experience. Her story helped to illustrate how emotional bout of asthma sent her to the hospital for tests and support, communication and empowerment impact a breathing treatments, it was a new experience for her. patient’s hospital experience.

She expected to receive quality medical treatment. Our Strategic Direction calls Ascension Health to What she didn’t expect, and what was a pleasant define and deliver a consistent, exceptional Ascension surprise, was the respect and compassion shown by Health Experience to all we serve. This work is the her nurses and other caregivers. They introduced primary focus of Healthcare That Works, and it frames themselves, explained what they were going to do at many of our initiatives.

* Although the essential elements of this story are real, the patient’s name and some details have been changed to protect privacy.

 It’s About the Experience achieving absolute satisfaction for those we serve and Under the leadership of a Steering Committee that draws those who serve with us. talented members from several of our Health Ministries, Creating a Consistent, Exceptional the Research & Development group of Ascension Health Ascension Health Experience researched customer satisfaction both within and outside Our definition of the patient experience reinforces the healthcare industry, including interviewing dozens of important work being performed around Safe, Effective, patients like Danielle and surveying nearly 2,000 patients Evidence-based Care and Coordinated, Efficient Processes. across six Health Ministries. And it goes further by identifying the need to be equally

The result is the definition of the initial attributes of a consistent, exceptional Ascension Health Experience, six Initial Attributes of the Ascension Health Experience attributes within three realms of experience: Safe, Effective, Safe, Effective, Evidence-based Care Evidence-based Care; Coordinated, Efficient Processes; Q Clinical Reputation and Quality and Emotional and Spiritual Support. The initiatives of the Coordinated, Efficient Processes Healthcare That Works team – indeed, virtually all of the Q Administrative Efficiency Comfortable, Convenient Environment work being done to advance the Strategic Direction of Q Emotional and Spiritual Support Ascension Health – are designed to impact one or more Q Compassionate, Respectful Care of these realms of experience. Q Communication and Empowerment Within this framework, we made strides during the past Q Care Responsiveness year in advancing the Healthcare That Works goal of

 Healthcare That Works

intentional about empowering and equipping improve their efficiency in treating patients through a associates around Emotional and Spiritual Support. number of initiatives over the past year, including:

To track progress on delivering the desired patient Q A new system in place at Middle Tennessee Medical experience, the Steering Committee identified an Center in Murfreesboro, Tenn., and St. Vincent’s Hospital overarching metric called the “Net Promoter Score” in Birmingham, Ala., uses radio frequency identification (NPS). It asks on a 0-to-10 scale how likely someone (RFID) tags to help caregivers keep track of equipment, is to recommend an Ascension Health facility and is supplies, and even patients. The system is having a calculated by taking the number of people choosing positive impact on caregiver and physician satisfaction by 9 or 10 and subtracting the number of people providing information to help them do their jobs more choosing 0 through 6. effectively, which in turn improves patient satisfaction. As the fiscal year came to a close, we began to study Q The Ascension Health Operations Resource Group, in our existing patient satisfaction measures and relating collaboration with R&D, developed three SharingSolutions them to the NPS. The next step is a review of Health information packages to help Health Ministries gain a Ministry practices and initiatives focused around better understanding of their patient flow processes Emotional and Spiritual Support to identify leading and to design ways to improve patient care as a result. practices and develop approaches to support, grow and The packages focus on the operating room, emergency coordinate knowledge sharing across Ascension Health. department and inpatient units and will help guide Advancing Coordinated, Efficient Processes associates and physicians to develop solutions that Healthcare That Works has helped our Health Ministries positively impact their patients.

 Q Combining the experience of several Health Ministries involved in construction projects with the research capabilities of the Regenstrief Center for Healthcare Engineering (RCHE) at Purdue University, we developed a set of evidence-based guidelines around patient-centered design. These guidelines were included in an Ascension Health Capital Toolkit, which assists Ministries undertaking major capital projects. The Ministries also worked with RCHE to develop a virtual- reality patient room design model to help “feel” the impact of design options, accelerate building schedules and reduce mock-up costs.

Creating a Caregiver Pipeline This year the Healthcare That Works team, with the Healthcare That Is Safe team and the Chief Nursing

(At Right) New technology has helped physicians and caregivers do their jobs more effectively at Middle Tennessee Medical Center in Murfreesboro, Tennessee.

 Healthcare That Works

Officers and Chief Human Resources Officers advisory at Carondelet Health Network in Tucson, Ariz. Also being groups, advanced the work of creating a vital Caregiver explored is development of an “Ascension Health University” Pipeline, designed to ensure an adequate supply of for nursing, with a centralized educational component and qualified, values-compatible, inspired nurses and allied distance learning opportunities across the System. care professionals to care for those we serve. The Caregiver Pipeline is one component of a much larger To address staffing challenges faced by our Health effort across Ascension Health to enhance nursing care Ministries, this strategy is making strides in three areas: models and the care environment under the sponsorship of Ann Hendrich, Vice President, Clinical Excellence, and Q Staffing Forecasting – A Web-based forecasting tool Marvin Russell, Senior Vice President and Chief Human was developed to help Health Ministries anticipate and plan Resources Officer. for their staffing needs through the year 2020.

Q Traveler/Mobility – We are developing processes to Encouraging New Systems of Care facilitate internal movement of RNs during emergencies, such In the last fiscal year, R&D launched an initiative to financially as 2005’s devastating hurricanes, or other times of need. support Health Ministry pilot projects and demonstrations targeting special populations of patients that test processes, Q Education Models – Working with several Health technology, new relationships, new caregivers and other Ministries, we are examining ways to increase the capacity features that support Ascension Health’s Strategic Direction. of RN education programs, such as partnerships between We received proposals for 13 projects. Following a careful a Health Ministry and local educational providers to expand discernment process, four proposals were chosen for support. class offerings. In fiscal year 2006, R&D developed and delivered a SharingSolutions package on such a program Some projects will be more successful than others. However,

 New Systems of Care – Health Ministry Projects Supported by Research & Development

Q CARE TEAM, by Providence Hospital, telemedicine approach for home care physicians, pharmacy care providers, and , D.C., is a multidisciplinary, patients. The goal is to improve patient inpatient and outpatient care settings. The comprehensive team of physicians, nurses, satisfaction by helping patients maintain pilot group will be early retirees of Genesys. case workers and data managers that better health and to test the use of Q TeleHealth, by Our Lady of Lourdes will provide medical management for information technology to improve care. Memorial Hospital, Binghamton, N.Y., is patients admitted from nursing homes. Q Pharmacy Navigation, by Genesys Health testing an improved information system in This project will test the ability to improve System, Flint, Mich., seeks to demonstrate a home care setting as the foundation for the patient experience. and test an approach to share reliable, an electronic medical record for home care Q Tele-Home Care, by St. Vincent Health, timely and accurate prescription information and hospice patients. The goal is to improve Indianapolis, is testing the benefits of a among pharmacy benefit managers, patient satisfaction and outcomes. we expect to learn from each and will continue to provide. However, it also identified our need to be more encourage courageous innovation as we explore ways to intentional about our desire to improve our level of transform healthcare and the experience of our patients. emotional and spiritual support. As our work progresses we will sharpen our focus on helping our associates Impacting Emotional and Spiritual Support provide that kind of support. This will enable us to Our work around the Ascension Health Experience has achieve our goal of delivering a consistent, exceptional reinforced the importance of great work being done Ascension Health Experience to all we serve and those to improve the safety and efficiency of the care we who serve with us. Q

 Healthcare That Is Safe Providing Excellent Clinical Care With No Preventable Injuries or Deaths by July 2008

When Lettie* immigrated to the U.S. seven months ago, Without delay the OB team began preparing Lettie for an she had just found out she was pregnant with her first emergency Cesarean delivery to save the baby’s life. In less than 20 minutes – even before Lettie’s own physician child. Her pregnancy was going well until 37 weeks arrived in the unit – her baby boy was born healthy at when her water broke prematurely. This placed her 5 pounds, 2 ounces. The Neonatal Intensive Care team was baby at risk for complications so she was admitted to on site when Peter was born and offered supportive care, but it wasn’t long before he was in the regular nursery. Within Labor and Deliver for induction of labor. three days Peter and his new parents were at home getting It was a very busy day in a very busy month at Sacred Heart used to being a family. Women’s Hospital in Pensacola, Fla. The OB Unit was on Beth Castner, Patient Care Manager, Sacred Heart Women’s track to break its record of 360 births in one month. Already Hospital, said, “We’re a high-risk birthing center so we’re used that morning, the OB surgical team had performed four to emergencies, but Lettie’s situation really showed how our successful surgical births. teamwork and repeated practice for situations like this really Shortly after labor was induced, the baby’s heart rate pays off. Our team had just completed the fetal monitoring dropped to dangerous levels. Nurses immediately took course offered by the Perinatal Safety initiative at Ascension steps to raise the baby’s heart rate, but he did not respond. Health and we used that training for Peter and Lettie.”

* Although the essential elements of this story are real, the patient’s name and some details have been changed to protect privacy.

 Making Healthcare Safe Healthcare That Is Safe Priorities for Action Healthcare That Is Safe focuses on providing excellent 1. Eliminating preventable mortality clinical care with no preventable injuries or deaths by 2. Eliminating adverse drug events July of 2008. Nationally, hospitals have historically seen 3. Eliminating falls between 44,000 and 98,000 patient deaths each year 4. Eliminating pressure ulcers as a result of medical errors.1 This is a shocking statistic 5. Eliminating birth trauma to the neonate that just makes our goal so much more important 6. Eliminating surgical complications and timely. 7. Eliminating nosocomial infections 8. Achieving compliance with the Joint Commission on Accreditation At the beginning of FY06, Ascension Health had of Healthcare Organizations National Patient Safety Goals committed two years of work to our goal of zero preventable deaths and injuries. During this time, our to a safety culture systemwide, were tested and shared Health Ministries participated in a variety of important throughout our Health Ministries. initiatives as part of our clinically obligated group – meaning that everyone teaches and everyone learns. The impact of our work can be seen in the reduction in Methods of improvement, including a continued focus the number of deaths in our hospitals. After significantly on our Priorities for Action, identification of clinical best surpassing our FY05 mortality reduction goals, our clinical practices, adoption of techniques to ensure seamless leaders were energized and set bold new goals for FY06 communication among caregivers, and a commitment and beyond.

1 Institute of Medicine, To Err Is Human, Washington DC: National Academy Press, 2000.

 (Above) Nurses are helping transform the way care is provided at Health Ministries such as Our Lady of Lourdes Memorial Hospital in Binghamton, New York.

 Healthcare That Is Safe

14% Eighty-six percent of our hospitals are implementing five or more of the 86% Priorities for Action. Priorities for Action

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2 Another significant change in tracking our mortality reduction was the move from hospital chart reviews to analysis using applications available from CareScience, a healthcare consulting organization that helps hospitals and health systems identify areas for improvement. This number was calculated using the CareScience methodology to figure the number of observed mortalities minus the number of expected mortalities after adjusting for patient risk.

 Healthcare That Is Safe

Ascension Health allows rapid deployment of ideas and Q They published and presented their Nursing Leadership response in emergencies. work at national and state nursing practice How can 67 hospitals commit to a single With CNO support, hospital nurses engaged and leadership meetings. standard of care in pressure ulcers and stan- fully in programs to improve — even transform Q They went to Austin to participate in dardize plans of care related to 20 different — the way care is provided. the Seton Family of Hospitals’ launch of the diagnoses? Through leadership. Q They received Robert Wood Johnson Clinical Foundation Suite to be trained as Ascension Health nurse executives, united by Foundation (RWJF) grant funds, enabling more “superusers.” our Strategic Direction, mobilized in FY06. than 300 nurses to meet in November 2005 Q They developed strategies to retain nurses An extraordinary shared governance system to learn about innovation and accountability and to build a pipeline of inspired caregivers supports communication, troubleshooting, in transforming bedside care. for the future. support and decision-making. All CNOs have Q With RWJF support, they undertook Nursing leadership set a new standard for a voice in System strategy and operations, major initiatives for the work environment Ascension Health that has advanced our and this distributed leadership approach of caregivers. efforts on behalf of Healthcare That Is Safe.

the five elements of the HANDS — Handling All Q Our effort to eliminate pressure ulcers supported a Neonatal Deliveries Safely — program. These five 25% decrease in the prevalence of community- and elements incorporate evidence-based care practices hospital-acquired pressure ulcers in FY06. This success plus communication and collaborative practice models is expected to be enhanced through a systemwide that will help eradicate birth trauma in Ascension commitment to replace older bed surfaces with newer Health Ministries. patient beds that help prevent pressure ulcers.

 The successes reflect a blend of practice, process and 35 hospitals that reported results at the end of the product changes, which are testament to CEO support, fiscal year, 80 percent (28 sites) had zero birth trauma physician leadership, visionary nursing, and caregivers’ incidents for three consecutive months. interaction and commitment in establishing a single Q Early results of a groundbreaking Time and Motion systemwide standard for care. Study3 suggested that nurses spend much of their Making Connections bedside time on medication administration. As a result, our medication safety efforts were expanded to include Clinical leaders across Ascension Health began looking nursing workflow as an area of focus. for ways to dramatically advance our early progress in reducing mortality by sharing information across Q The ability to share and incorporate lessons learned the System. The solution lay in connecting the many across hospitals required both technical support and Clinical Excellence programs and projects under way. leadership commitment. Ascension Health continued ers A few examples: development of saf ystem™, our event reporting system for consistent collection of information on adverse events. Q Success in reducing birth trauma through our Perinatal Safety Priority for Action stemmed not only Culture and Infrastructure of Safety from use of well-tested clinical practices, but also Our successes this year cannot be fully explained by from caregiver communication processes and behaviors implementation of the safety practices and protocols learned through our culture of safety efforts. Of of the Priorities for Action. They also evolved from an

3 ”A Multi-Site Study of How Medical Surgical Nurses Spend Their Time: A Baseline Study in Preparation for an Electronic Health Record and an Evidenced-Based Nursing Unit Design,” funded by the Robert Wood Johnson Foundation, Ascension Health, Kaiser Permanente, and the Gordon and Betty Moore Foundation.

 Healthcare That Is Safe

ever-developing culture of safety reflected in teamwork we serve, fulfilling our commitment to healthy individuals and collaboration among associates. After a baseline and healthy communities. survey in 2004 indicated a budding safety culture, each As part of this effort, caregivers from across the country hospital implemented programs based on a customized began work on how best to integrate evidence-based improvement plan to build teamwork and commitment to best practices into care pathways and plans. Physicians safety. Programs included executive partnerships with units, and nurses throughout the organization helped to identify use of Rapid Response Teams to support medical/surgical plans of care for the 500 most common disease states. In staff with critical patients, communication programs, and FY06, 64 standardized plans of care were developed. This more. Positive teamwork climate and safety scores increased represents an unprecedented degree of collaboration. by more than 2 percent between 2004 and 2006. Healthcare That Is Safe Infrastructure support for safe practices and evidence- The integration of efforts with the Priorities for Action based standards of care also continued its spread in and the culture of safety, physician integration, strong FY06. The Clinical Foundation Suite (CFS), which includes nursing leadership, and information infrastructure advanced clinical information systems and electronic health development have set Ascension Health on course for records, expanded through a systemwide effort that unites success with the Healthcare That Is Safe goal of zero leadership from the information technology and clinical preventable injuries and deaths by July of 2008. The areas. The CFS is being implemented to help ensure the current work model brings together culture, work process, quality and consistency of the care we deliver, regardless work environment and technology for the benefit of of the setting. This means better outcomes for persons patients now and in the future. Q

 (Above) Perinatal safety is a key priority of our Healthcare That Is Safe efforts in Health Ministries such as Our Lady of Lourdes Memorial Hospital in Binghamton, New York.

 Healthcare That Leaves No One Behind Developing a New Model of Access Leadership

Leo Brideau echoes the sentiments of his CEO colleagues challenges our executives to develop and implement unique access leadership plans for their Health Ministries. at Ascension Health locations around the country when The plans identify concrete, strategic steps a Health he speaks about his Health Ministry’s purpose. “Our Ministry will take to achieve our Healthcare That Leaves mission is to care for those in our community, especially No One Behind goal of 100 percent access.

those who are poor and vulnerable,” Brideau said. By 100 percent access, we mean that all persons receive healthcare services that create and support the “And when you see those vulnerable growing in best journey to improved health outcomes, funded in numbers, and their needs growing, how can it not be an adequate and sustainable manner. Like Healthcare important to you as a health facility CEO?” That Works and Healthcare That Is Safe, our Healthcare That Leaves No One Behind Call to Action promise to achieve 100 percent access is part of Ascension Health’s Brideau is President and CEO of Columbia St. Mary’s Strategic Direction. in Milwaukee. He and the CEOs of 11 other Health Ministries are participants in the first “class” of Ascension Each Health Ministry access leadership plan is based on Health’s Access Leadership Planning Program. The effort our “5 Steps to 100% Access.” The “5 Steps” encourage has fostered a new model of access leadership that healthcare leaders to:

 Q Develop local infrastructure, including a formal Endowment grants to help fund initiatives proposed by leadership coalition and shared information systems Health Ministries participating in the program. The grants to track and coordinate care for the uninsured that will support the development of electronic health records, is delivered by a wide variety of public and private infant mortality reduction efforts, pharmaceutical access, safety net providers. diabetes case management initiatives and more.

Q Fill service gaps, such as dental care, mental health In Milwaukee, Brideau views access leadership as one services, and affordable pharmaceuticals. of his Health Ministry’s strategic imperatives. “It is not

Q Redesign the care model to provide coordinated simply feeling good about doing a few good things, but care resulting in improved health outcomes. recognizing that central to our Mission and central to our future is an ability to make a difference in this area,” he Q Engage private physicians to voluntarily accept said. “Because if we can’t do that, then we’re just another uninsured patients into their practices, providing those healthcare provider in this community. So we view this as patients with permanent medical homes. a key niche for us, as a defining mission.” Q Achieve sustainable funding in partnership with local leaders in government and business. National Public Policy Partner Over the next few years, all of our Health Ministry CEOs Last year, we continued our efforts to serve as a national will participate in the program. Demonstrating our public policy partner and a voice for the voiceless. support for the proposed access leadership efforts, in In addition to our ongoing support for efforts including 2006 Ascension Health provided $2 million in Access Cover the Uninsured Week and the Catholic Health

 Healthcare That Leaves No One Behind

Association’s Covering A Nation initiative, Ascension Health to reduce healthcare costs, expand health insurance played an important role educating senior citizens – coverage and provide critical support for safety net particularly low-income seniors – about the new Medicare providers. In the House of Representatives, Rep. Michael Part D Prescription Drug Benefit. Our hospitals and nursing C. Burgess, a Republican from and a medical homes participated in this outreach, as we trained over doctor by training, and Rep. Bart Stupak, a Democrat 400 associates to help with Part D education efforts. We from , proposed a broadly supported amendment coordinated our work with key partners such as Mercy that backed funding for IHCs. Housing, the National Council on Aging and healthcare Though we are grateful for these legislators’ efforts on access coalitions in 20 communities. behalf of the poor and vulnerable, ultimately neither For some time, we have been working in collaboration Sen. Frist’s bill nor the Burgess/Stupak amendment with 18 Catholic health systems in support of the private became law in 2006. We are convinced, however, that health providers’ role in the healthcare safety net, the Senate bill and the bipartisan support for the Burgess/ particularly regarding federal funding for our Catholic clinics Stupak amendment bode well for our ongoing efforts in and health centers that serve the uninsured. In FY06 we support of federal recognition of the important role of continued to advocate for federal support of “integrated integrated health centers that care for those most in need. health centers” (IHCs), such as those operated by our “It should be public policy ... that all Americans Health Ministries in many communities. have affordable healthcare coverage.” Legislation supporting IHCs was introduced by Senate In its Interim Recommendations released in June 2006, Majority Leader Bill Frist as one of a number of proposals the Citizens’ Health Care Working Group also endorsed

 integrated health centers, and – even more importantly – the broader concept that it “should be public policy, established in law, that all Americans have affordable healthcare coverage.”

The 15-member Working Group was mandated by the Medicare Prescription Drug, Improvement, and Modernization Act of 2003. The group’s members have been charged with leading a nationwide debate on ways to improve the country’s healthcare system and to provide affordable healthcare coverage. The Working Group is chaired by Dr. Patricia , President of St.Vincent Hospitals and Health Services in Indianapolis, part of Ascension Health.

The Working Group solicited input from thousands of Americans through an Internet Web site and dozens

(At right) Outreach efforts are an important way Health Ministries such as St. Joseph Health System in Tawas City, Michigan, meet community needs.

 (Above) A young patient in Kansas City, Mo., needed some coaxing to participate in his health screening during Cover the Uninsured Week.

 Healthcare That IsLeaves Safe No One Behind of in-person meetings held in communities around the Unlike some other parts of New Orleans, St. Bernard country. The Working Group’s final recommendations are Parish was devastated by a hurricane-force storm surge. to be shared with Congress and the President. All of the parish’s health services were destroyed, and the parish was supported in relief efforts by the U.S. Prior to the release of its Interim Recommendations, the Public Health Service. As the parish moved from crisis Working Group released a “Health Report to the American to sustained recovery, the federal government turned People” that noted Ascension Health’s efforts to improve over operation of the St. Bernard Health Center to the care and access for the uninsured. In particular, the report Ascension Health/FMOL partnership. favorably cited our “5 Steps to 100% Access.” Sr. Bernice Coreil, DC, Ascension Health’s Senior Partnership in New Orleans Executive Advisor the President, sees the partnership In the year following Hurricane Katrina, New Orleans has in terms of our commitment to deliver Healthcare begun to rebuild. The dedicated clinicians and associates That Leaves No One Behind. “Our partnership with the who operate our Daughters of Charity Services of New Franciscan Missionaries of Our Lady Health System is Orleans have reopened our health center, although not in just one piece of a collaborative effort that has involved its pre-hurricane location in the Carrollton section of the city. the local business community, St. Bernard Parish officials, To help address a great need in another part of the New the federal government and many others,” she said. Orleans metropolitan area, Ascension Health has partnered “As the people of St. Bernard Parish rebuild their lives with the Baton Rouge, La.-based Franciscan Missionaries one day at a time, I believe this facility will provide of Our Lady Health System (FMOL) in the operation of a not only health services, but also a sense of hope for health center in St. Bernard Parish. the future.” Q

 Enabling Strengths Our Inner Strengths Support Our Strategies

Inspired People functional and healthy, and in roles that are vital Across Ascension Health we have committed to and effective for living our Mission and achieving our become a Model Community of mission-centered, Strategic Direction.

healthy associates with leaders who have an under- During FY06 we reviewed measures of associate standing of and a commitment to the foundations satisfaction and engagement in use at our Health of the ministry. This strength recognizes the key role Ministries. With that grounding, working with key Health that inspired people have in delivering on our promise Ministry leaders we determined to gauge our progress of Healthcare That Works, Healthcare That Is Safe, in building our Model Community by measuring and Healthcare That Leaves No One Behind, for Life. associate engagement behaviors going forward in We are approaching this task across two dimensions: these areas:

Q Individual dimension – to promote full flourishing Q Leaders promoting the vision and engaging of the human person in spiritual, physical, social and the workforce professional well-being. This invites our associates to Q Focused, committed workforce be mission-focused, healthy, competent and inspired. Q Patients at the center Q Communal dimension – embracing a preferred culture in relationships that are life-giving, highly Q Learning and development

 Q Associate well-being of body, mind and spirit our own. As Ascension Health continues to provide distinctive services, such as acute care services, we Q Empowered associates must establish and manage an integrated network of Also during the year we conducted numerous focus values-based alliances with other providers that offer groups across the System to help develop our Integral complementary services along the continuum of care. Model for Workplace Spirituality – a graphic depiction We call these organizations “continuum partners.” designed to help foster a spirituality of work to provide These partners will include, but not be limited to, an environment that deepens our sense of meaning other organizations and groups within the Catholic through the Mission of Ascension Health. Church and the faith-based community. Finally, we began work to define and develop the We also need “support partners,” those firms that Ascension Health University – a comprehensive we rely on to deliver our own core competencies. approach to education and organizational development. In FY06, Ascension Health established a trusted We look forward to continued development of partnership with Hill-Rom in conjunction with a this concept. $60 million commitment to purchase new hospital Trusted Partnerships beds and surfaces. As part of the strategic relationship, Ascension Health seeks to provide individuals in Ascension Health and Hill-Rom will develop a our communities access to a full continuum of care simulation-based clinical learning tool to further our throughout their lifetimes. We recognize, however, initiatives in preventing pressure ulcers, patient falls that we cannot do this alone – we will need to and caregiver injuries, and will perform joint research partner with others who have values compatible with and development.

 Enabling Strengths

Hill-Rom joins these other Ascension Health tremendous power of information systems to have a Trusted Partners: measurable effect on the care we provide to those we serve. Through our Strategic Direction, Ascension Health Q CSC – providing information technology support, has committed to developing our Enabling Strength of systems integration and consulting to our Health Empowering Knowledge. We will create an IT network Ministries that connects us with individuals, affiliated clinicians and Q Cerner – providing applications that support an trusted partners across the continuum of care. electronic health record for Ascension Health, helping This network will enable us to share information within ensure the quality and consistency of the care we our ministry, with others across Ascension Health and with deliver regardless of the setting our partners. It will support the development of a lifetime Q Accretive Health – providing services to help electronic health record. Having this information available Health Ministries in the area of revenue management quickly and in a consistent format will help clinicians Q Un d Surgical Partners International (USPI) – make the best decisions for their patients, reduce providing development, management and ownership duplication and waste, and support improvement. It will of ambulatory surgery centers in partnership with our increase patient care quality and satisfaction by providing Health Ministries and physicians the right information, to the right place, at the right time.

Empowering Knowledge Our work includes Clinical Foundation Suite initiatives Information technology has transformed society in so that automate our processes of providing care and many ways, yet healthcare has not fully harnessed the making medical decisions, and that manage and track

 patients’ medication information; and our Picture Archival the community to determine what is needed; continually Communication System (PACS) initiatives that make striving to be where we are needed, how we are needed digital images from medical devices such as MRIs and to be there.

CT scanners available to caregivers. This work is engaging In the last year we have taken steps to ensure that we not just IT professionals, but physicians, nurses and other provide a Vital Presence in the communities we serve. clinicians as well. One exciting initiative is the collaboration of our Health Information technologies are also being used to provide Ministries in Mid-Michigan. This effort brings together the advanced administrative systems – in the areas of finance, Michigan Health Ministries of St. Joseph Health System materials management and human resources – to improve (Tawas City), St. Mary’s of Michigan (Saginaw) and Genesys the timeliness and accuracy of information. Health System (Flint) to maximize the opportunity to leverage our strategic position in the communities we serve. By bringing the benefits of technology to our more than In FY06, the group focused its efforts and made significant 100,000 associates, our physicians and our partners, we progress in the areas of graduate medical education will connect our Health Ministries and continue to improve collaboration; medical staff planning and recruitment; the care we deliver to those we serve. clinical service delivery; and overall strategic planning. Vital Presence Ascension Health will continue to uphold its commitment As stewards of the gifts entrusted to us, Ascension Health is to ensuring a vital presence by determining how dedicated to strengthening our ability to serve the poor and to most appropriately address specific needs of our vulnerable. Accordingly, we are committed to engaging with communities. Q

 Our patients are seen as unique individuals with more to their lives than the medical condition that has brought them to our door. The treatment plan may be highly technical but it is wrapped in the healing touch of our mission to serve Christ.

Sr. Mary Anne Brawley, DC Board Chair Our Lady of Lourdes Memorial Hospital Binghamton, New York

 My team consistently seeks to implement nursing education best practices. It follows that if nursing education and professional development continue to improve, then patient care is likely to improve as well.

Yvonne VanDyke, RN, MSN Director, Nursing Education and Professional Development Seton Family of Hospitals Austin, Texas

 Health Ministries

37 9

25 29 21 28 20 27 26 5 18 38 19 17 30 10 16 15 14 12 6

23 24 22 11

31

3 1

4 33 34 7 36 2 8 32 13 35

1 St. Vincent’s Health System 3 Daughters of Charity Services 5 St. Vincent’s Health Services of Arkansas

4 Carondelet Health Network

2 Provid ital 6 Providence Hospital

 7 St. Vincent’s Health System 12 St.Vincent Health 16 St. Catherine’s Nursing Center Consolidated Laboratory Services • Jacksonville, FL Saint John’s Health System • Anderson, IN St. Catherine’s Nursing Center • Emmitsburg, MD Consolidated Pharmacy Services • Jacksonville, FL St.Vincent Clay Hospital • Brazil, IN St. Catherine Labouré Manor • Jacksonville, FL St.Vincent Carmel Hospital • Carmel, IN St. Vincent’s Foundation • Jacksonville, FL St.Vincent Mercy Hospital • Elwood, IN St. Vincent’s Medical Center • Jacksonville, FL St.Vincent Frankfort Hospital • Frankfort, IN Advanced Patient Transportation, Inc. • Seton Specialty Hospital • Indianapolis, IN Jacksonville, FL St.Vincent Children’s Hospital • Indianapolis, IN 17 St. John Health Orange Park Health Center • Orange Park, FL St.Vincent Indianapolis Hospital • Eastwood Community Clinics • 11 locations Indianapolis, IN in Wayne, Oakland, Macomb and St. Clair St.Vincent New Hope • Indianapolis, IN Counties, MI St.Vincent Pediatric Rehabilitation Center • Brighton Hospital • Brighton, MI Indianapolis, IN Father Murray Nursing Center • Center Line, MI St.Vincent Stress Center • Indianapolis, IN St. John Detroit Riverview Hospital • Detroit, MI 8 Sacred Heart Health System St.Vincent Women’s Hospital • Indianapolis, IN St. John Hospital and Medical Center • Detroit, MI Sacred Heart Hospital on the Emerald Coast • St.Joseph Hospital • Kokomo, IN St. John Senior Community • Detroit, MI Destin, FL St.Vincent Jennings Hospital • Vernon, IN St. John River District Hospital • East China, MI Sacred Heart Medical Park • Pace, FL St.Vincent Williamsport Hospital • St. John North Shores Hospital • Haven of Our Lady of Peace • Pensacola, FL Williamsport, IN Harrison Township, MI Sacred Heart Children’s Hospital • Pensacola, FL St.Vincent Randolph Hospital • Winchester, IN St. John Oakland Hospital • Madison Heights, MI Sacred Heart Hospital of Pensacola • Pensacola, FL St. John Providence Park Hospital • Novi, MI Sacred Heart Medical Park • Pensacola, FL St. John Home Care • Three locations Sacred Heart Women’s Hospital • Pensacola, FL in Roseville, Clinton Township and Sacred Heart Home Care • Three locations in Farmington Hills, MI Northwest and South Alabama Providence Hospital • Southfield, MI Sacred Heart Medical Group • 17 locations in 13 Daughters of Charity Services St. John Macomb Hospital • Warren, MI Northwest Florida and South Alabama of New Orleans Cancer Centers • Four locations in Grosse Sacred Heart Rehabilitation Centers • Daughters of Charity Health Center • Pointe Woods, Novi, Southfield and Eight locations in Northwest Florida New Orleans, LA Warren, MI Neighborhood Health Partnership • Heart Centers • Three locations in Detroit, New Orleans, LA Southfield and Warren, MI Seton Resource Center for Child Development • New Orleans, LA Integrated Mobile Assessment and Treatment • 9 St. Joseph Regional Medical Center New Orleans, LA St. Joseph Regional Medical Center • Lewiston, ID 18 Genesys Health System Genesys – Belsay Medical Campus • Belsay, MI Genesys – East Flint Campus • Burton, MI 14 St. Agnes HealthCare Genesys – Clarkston Medical Campus • 10 Saint Anthony Hospital St. Agnes Hospital • Baltimore, MD Clarkston, MI Saint Anthony Hospital • Chicago, IL St. Agnes Surgery Center • Genesys – Clio Medical Campus • Clio, MI Baltimore, MD Genesys Center for Gerontology • Flint, MI Seton Imaging Center • Baltimore, MD Genesys Home Health and Hospice • Flint, MI Seton Medical Group • Baltimore, MD Genesys Hurley Cancer Institute • Flint, MI Genesys – West Flint Campus • Flint, MI 11 St. Mary’s Health System Hillside Center for Behavioral Services • Flint, MI St. Mary’s Warrick Hospital • Boonville, IN Genesys Hospice Care Center • Goodrich, MI St. Mary’s at Home • Evansville, IN Genesys Athletic Club • Grand Blanc, MI St. Mary’s Cancer Center • Evansville, IN Genesys Convalescent Center • St. Mary’s Hospital for Women and Children • 15 Western Maryland Health System Grand Blanc, MI Evansville, IN Sacred Heart Hospital • Cumberland, MD Genesys Regional Medical Center at Health St. Mary’s Medical Center • Evansville, IN Memorial Hospital and Medical Center Park • Grand Blanc, MI St. Mary’s Rehabilitation Institute • Evansville, IN of Cumberland • Cumberland, MD Genesys – Lapeer Medical Campus • St. Mary’s Breast Center • Evansville, IN St. Vincent de Paul Nursing Center • Frostburg, MD Lapeer, MI

 19 Borgess Health St. Joseph Bone & Joint Center • Tawas City, MI Carondelet Family Health Center • Borgess-Lee Memorial Hospital • St. Joseph Harbor Health Center • Tawas City, MI Amsterdam, NY Dowagiac, MI St. Joseph Home Medical Equipment • Johnstown Family Health Center • CareLink of Jackson • Jackson, MI Oscoda and Tawas City, MI Amsterdam, NY Borgess Ambulatory Care • Kalamazoo, MI St. Joseph Home Health and Hospice • Physical Rehab Services • Amsterdam, NY Borgess Health and Fitness Center • Oscoda and Tawas City, MI St. Johnsville Family Center • Amsterdam, NY Kalamazoo, MI St. Joseph Huron Family Medicine • St. Mary’s Hospital • Amsterdam, NY Borgess Medical Center • Kalamazoo, MI Tawas City, MI St. Mary’s Route 30 Lab & Radiology Services • Borgess-Visiting Nurses • Kalamazoo, MI St. Joseph Internal Medicine • Tawas City, MI Amsterdam, NY Borgess Home Care • Kalamazoo, MI St. Joseph Joint Replacement Center • Borgess Hospice • Kalamazoo, MI Tawas City, MI ProMed Healthcare • Kalamazoo, MI St. Joseph Occupational Health Services • Borgess-Pipp Hospital • Plainwell, MI Tawas City, MI Borgess Home Care • Portage, MI St. Joseph Rehabilitation Services • Borgess-Visiting Nurses • Portage, MI Tawas City, MI 26 Our Lady of Lourdes Borgess at Woodbridge Hills • Portage, MI St. Joseph Specialty Clinic • Tawas City, MI Memorial Hospital St. Joseph Surgery and Cardiovascular Center • Hospice at Lourdes • Vestal, NY Tawas City, MI Lourdes at Home • Vestal, NY St. Joseph Women’s Center • Tawas City, MI Lourdes Health Support, LLC • Tawas St. Joseph Hospital • Tawas City, MI Binghamton, NY Lourdes Hospital • Binghamton, NY 20 St. Mary’s of Michigan Lourdes Primary Care Network • Six locations St. Mary’s of Michigan Seton Cancer Institute • in Binghamton, Endicott, Johnson City, Five locations: Bad Axe, Marlette, Saginaw, Owego, Richford and Vestal, NY Tawas, West Branch, MI Lourdes Youth Services • Binghamton, NY St. Mary’s of Michigan Bay City • 22 Carondelet Health St. Louise Manor • Binghamton, NY Bay City, MI St. Mary’s Medical Center • Blue Springs, MO Lourdes Vestal Medical Services • Vestal, NY St. Mary’s of Michigan Birch Run Health St. Mary’s Manor • Blue Springs, MO Center • Birch Run, MI Carondelet Manor • Kansas City, MO St. Mary’s of Michigan Chesaning Health St. Joseph Medical Center • Kansas City, MO Center • Chesaning, MI Carondelet Home Care Services • St. Mary’s of Michigan Frankenmuth Family Two locations in Overland Park, KS Physicians • Frankenmuth, MI and Lee’s Summit, MO 27 Catholic Health System* St. Mary’s of Michigan Ambulatory Care Villa Saint Joseph • Overland Park, KS Mercy Hospital of Buffalo • Buffalo, NY Center • Saginaw, MI Mercy Nursing Facility • Buffalo, NY St. Mary’s of Michigan Emergency Care Nazareth Home • Buffalo, NY Center • Saginaw, MI St. Catherine Labourè Health Care Center • St. Mary’s of Michigan Medical Center • Buffalo, NY Saginaw, MI St. Francis of Buffalo • Buffalo, NY St. Mary’s of Michigan Towne Center • 23 Seton Center Sisters of Charity Hospital • Buffalo, NY Saginaw, MI Seton Center • Kansas City, MO McAuley-Seton Home Care • St. Mary’s of Michigan Standish Community Cheektowaga, NY Hospital • Standish, MI Mercy Home Care of Western New York • St. Mary’s of Michigan Vassar Health Center • Cheektowaga, NY Vassar, MI Sisters Long Term Home Health Care Program • Cheektowaga, NY 24 Ascension Health System Office St. Joseph Hospital • Cheektowaga, NY Ascension Health System Office • St. Louis, MO St. Vincent’s of Dunkirk • Dunkird, NY McAuley Residence • Kenmore, NY Kenmore Mercy Hospital • Kenmore, NY 21 St. Joseph Health System St. Elizabeth’s Home of Lancaster • AuGres St. Joseph Family Health Clinic • Lancaster, NY AuGres, MI Father Baker Manor • Orchard Park, NY AuSable Valley Health Center • Fairview, MI 25 St. Mary’s Hospital St. Francis of Williamsville • Williamsville, NY Hale St. Joseph Medical Center • Hale, MI Behavioral Health Services • Seven locations Great Lakes Family Medicine • Oscoda, MI in Amsterdam, NY * Catholic Health System is sponsored by Oscoda Health Park • Oscoda, MI Canajoharie Family Health Center • Ascension Health, Catholic Health East and the Seton Cancer Institute • Tawas City, MI Amsterdam, NY Diocese of Buffalo.

 Diagnostic and Treatment Centers • Six locations 31 Saint Thomas Health Services 35 Daughters of Charity Services throughout Western New York Hickman Community Hospital • of San Antonio Primary Care Centers • 11 locations throughout Centerville, TN Daughters of Charity Services of San Antonio • Western New York Middle Tennessee Medical Center • San Antonio, TX Murfreesboro, TN De Paul Family Center • San Antonio, TX Baptist Hospital • Nashville, TN DePaul-Wesley Children’s Center • San Antonio, TX Saint Thomas Hospital • Nashville, TN El Carmen Wellness Center • San Antonio, TX La Mision Family Health Center • San Antonio, TX

28 Mount St. Mary’s Hospital and Health Center Clearview Treatment Services • Lewiston, NY Mount St. Mary’s Child Care Center • 32 Seton Family of Hospitals Lewiston, NY Brackenridge Hospital • Austin, TX 36 Providence Healthcare Network Mount St. Mary’s Hospital and Health Center • Children’s Hospital of Austin • Austin, TX DePaul Center • Waco, TX Lewiston, NY Seton Cove • Austin, TX Providence Durable Medical Equipment • Waco, TX Mount St. Mary’s Neighborhood Health Seton Kozmetsky Community Health Center • Providence Foundation • Waco, TX Center • Lewiston, NY Austin, TX Providence Health Alliance • Waco, TX Mount St. Mary’s Rehabilitation Center • Seton League House • Austin, TX Providence Health Center • Waco, TX Lewiston, NY Seton McCarthy Community Health Center • Providence Home Care • Waco, TX Our Lady of Peace Nursing Care Residence • Austin, TX St. Catherine Center • Waco, TX Lewiston, NY Seton Medical Center • Austin, TX St. Elizabeth Place • Waco, TX Seton Northwest Hospital • Austin, TX The Village at Providence Park • Waco, TX Seton Shoal Creek • Austin, TX Seton Southwest Healthcare Center • Austin, TX Seton Topfer Community Health Center • 29 Seton Health Austin, TX 37 Lourdes Health Network Clifton Park Family Health Center • Seton Highland Lakes Hospital • Burnet, TX Lourdes Family Health Center • Connell, WA Clifton Park, NY Seton Cedar Park • Cedar Park, TX ABC Tri-Cities Pediatrics • Pasco, WA Schuyler Ridge Residential Health Care • Seton Lockhart Center for Healthcare • Associated Family Specialists • Pasco, WA Clifton Park, NY Lockhart, TX Lourdes Medical Center • Pasco, WA Capital Region Family Health Care • Seton Lockhart Specialty Clinic • Lockhart, TX Lourdes Occupational Health Center • Pasco, WA East Greenbush, NY Seton Edgar B. Davis • Luling, TX Lourdes Physical Medicine Center • Pasco, WA Mechanicville Family Health Center • Seton Marble Falls • Marble Falls, TX Lourdes Wilson House • Pasco, WA Mechanicville, NY Seton Pflugerville • Pflugerville, TX Lourdes Women’s Center @ the Hospital • Pasco, WA Schaghticoke Family Health Center • Pulmonary Services of the Tri-Cities • Pasco, WA Schaghticoke, NY Riverview Medical Group • Pasco, WA Stillwater Family Health Center • Lourdes Counseling Center • Richland, WA Stillwater, NY Massry Center • Troy, NY Seton Health Pediatrics • Troy, NY 33 Centro San Vicente** St. Mary’s Hospital • Troy, NY Centro San Vicente Community Health Troy Internal Medicine • Troy, NY Center • El Paso, TX ** Supported by Ascension Health, Centro San Vicente is 38 Columbia St. Mary’s independently owned and operated and has been designated Orthopaedic Hospital of • Glendale, WI as a Federally Qualified Health Center. River Woods Outpatient Center • Glendale, WI Columbia St. Mary’s Ozaukee Campus • Mequon, WI Columbia College of Nursing • Milwaukee, WI 30 Good Samaritan Regional Columbia St. Mary’s Columbia Campus • Medical Center Milwaukee, WI Good Samaritan Health Center — North • Columbia St. Mary’s Community Physicians • Frackville, PA 34 Nazareth Hall Nursing Center 26 primary care clinics in Milwaukee, Ozaukee Good Samaritan Regional Medical Center • Nazareth Hall Nursing Center • El Paso, TX and Washington Counties, WI Pottsville, PA Columbia St. Mary’s Hospital of Milwaukee • Good Samaritan Healthplex • In FY06, Ascension Health undertook to sell St. Joseph Hospital Milwaukee, WI St. Clair, PA in Augusta, GA and DeKalb Hospital in Smithville, TN. Sacred Heart Rehabilitation Institute • Milwaukee, WI

 Financial & Institutional Statistics

Financial Data

Care of Persons Who Are Poor and Community Benefit: $704 Million

23.0% 28.2%

6.3% 42.5%

EBIDA

$1,117

$$1,2851,285

$1,462

 Operating Results Q For fiscal year 2006, Ascension Health improved its operating income over the previous fiscal year by 11.7 percent ($52 million) to $498 million.

Q Net income increased $152 million due to operations and investment income.

Q During the year ended June 30, 2006, Ascension Health recorded nonrecurring charges totaling $6 million primarily relating to costs incurred and property damage sustained as a result of flooding in the state of New York.

Q During fiscal year 2006, Ascension Health management undertook action to sell certain hospitals in and Tennessee. Both transactions have been accounted for as discontinued operations and the hospitals’ operating information is excluded from the financial and statistical information for all periods presented.

Q Net revenue per equivalent discharges increased 4.4 percent primarily due to improved collection rates as volumes remained relatively flat.

Q Total cost per equivalent discharge increased 5.0 percent from prior year primarily due to salary and benefits, professional fees and purchased services costs.

Q Days cash on hand were 196 days as of June 30, 2006.

Q Total debt to capitalization was 36.8 percent as of June 30, 2006.

Systemwide Statistics Available beds 16,788 Employees 100,000+

Number of births 74,942 Number of hospitals (as of 6/30/06) Discharges 660,341 General acute care 61 Equivalent discharges 1,142,883 Long-term acute care 4 Emergency visits 2,073,619 Rehabilitation 4 Physician office visits 3,530,176 Psychiatric 4 Clinic visits 1,457,934 Home health visits 604,810

 Senior Leadership Team Fiscal Year 2006

Anthony R. Tersigni, EdD, FACHE Rex P. Killian, JD President and Chief Executive Officer Senior Vice President, Governance and Sponsor Relations Andrew W. Allen President, Hyung T. Kim, MD, MBA Western and Southern States Vice President, Operating Group Research and Development

James K. Beckmann Michael T. Langlois Senior Vice President Senior Vice President and Chief Risk Officer and Chief Supply Chain Officer

Sherry L. Browne Stephen D. LeResche Senior Vice President Vice President, and Chief Information Officer Communications

Sr. Bernice Coreil, DC Susan Nestor Levy Senior Executive Advisor to the President Senior Vice President, John D. Doyle Advocacy and External Relations Chief Strategy Officer Sr. Maureen McGuire, DC Mark A. Eustis Senior Vice President, President, Great Lakes Mission Integration and Mid-Atlantic States Operating Group David B. Pryor, MD Robert J. Henkel Senior Vice President, Chief Operating Officer Clinical Excellence

Joseph R. Impicciche, JD, MHA Marvin A. Russell Senior Vice President, Senior Vice President Legal Services and General Counsel and Chief Human Resources Officer

Laura S. Kaiser Anthony J. Speranzo Vice President, Senior Vice President Health Ministry Positioning and Operations and Chief Financial Officer

Fiscal Year 2006

 Sponsors Council Sponsors Council (left to right): Sr. Marie Thérèse Sedgwick, DC; Rita Ann Teichman, SSJ; Sr. Honora Remes, DC; Kay Ryan, CSJ; Sr. Mary Francis Martin, DC; Barbara Moore, CSJ, PhD – Chair; Janet Fleischhacker, SSJ; and Sr. Elyse Staab, DC

Board of Trustees Board of Trustees (left to right): Sr. Bonnie Hoffman, DC; Sr. Theresa Peck, DC; Doriane C. Miller, MD; John O. “Jack” Mudd, JD, JSD – Chair; Kevin E. Lofton, FACHE; Jean Katherine deBlois, CSJ, PhD; André L. Delbecq, DBA; Mary Joan Walsh, SSJ; Sr. Kathleen Natwin, DC; Sr. Jean Rhoads, DC; Betty Granger, SSJ; Ciro V. Sumaya, MD; Anthony R. Tersigni, EdD, FACHE; and Kathleen Kelly, CSJ

Sponsor Liaison Committee: Betty Granger, SSJ; Sr. Bonnie Hoffman, DC; Sr. Kathleen Natwin, DC; Elizabeth Ney, CSJ; Sr. Theresa Peck, DC; and Sr. Jean Rhoads, DC

Fiscal Year 2006

 Board Committees

Audit Committee Finance Committee, continued Pension Committee Mary Joan Walsh, SSJ – Chair Albert R. Counselman Sr. Theresa Peck, DC – Chair Richard Blair Sr. Teresa George, DC Clark Christianson Ronald M. Horwitz Bill Greenhut Jean deBlois, CSJ Kathleen Kelly, CSJ Jack Mudd, Ex-Officio Kathleen Kelly, CSJ Susanna Laundy Sr. Jean Rhoads, DC Tom Langston Alphonse S. Lucarelli Ciro Sumaya, MD Laura Lentenbrink Jack Mudd, Ex-Officio Anthony Tersigni, Ex-Officio Jack Mudd, Ex-Officio Sr. Kathleen Natwin, DC Mary Joan Walsh, SSJ Joseph O. Murdock Sr. Jean Rhoads, DC Richard Webb Mary Naber Laurence Steenberg Executive Committee Governance Committee Paul Swanson Jack Mudd – Chair Jack Mudd – Chair Anthony Tersigni, Ex-Officio Kathleen Kelly, CSJ André Delbecq, DBA Douglas Waite Sr. Kathleen Natwin, DC Kathleen Kelly, CSJ Sr. Theresa Peck, DC Sr. Kathleen Natwin, DC Quality Committee Anthony Tersigni, Ex-Officio Sr. Theresa Peck, DC Ciro Sumaya, MD – Chair Sr. Xavier Ballance, DC Executive Mission and Jean deBlois, CSJ Compensation Spirituality Committee Wanda Gibbons, RN Committee André Delbecq, DBA – Chair Betty Granger, SSJ Jack Mudd – Chair Betty Granger, SSJ Sr. Bonnie Hoffman, DC Jean deBlois, CSJ Mary Heintzkill Jack Mudd, Ex-Officio Betty Granger, SSJ Sr. Bonnie Hoffman, DC Patricia K. Stoltz, PA, MHSA Sr. Bonnie Hoffman, DC Jack Mudd, Ex-Officio Anthony Tersigni, Ex-Officio Sr. Theresa Peck, DC Bob Porter Sr. Jean Rhoads, DC Finance Committee Mary Anne Rodgers, CSJ Sr. Kathleen Natwin, DC – Chair Anthony Tersigni, Ex-Officio Michael Blaszyk Brian Yanofchick

Fiscal Year 2006



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