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The Science of Health. the Art of Compassion

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The Science of Health. the Art of Compassion 2017 ANNUAL REPORT TO THE COMMUNITY AND REPORT ON PHILANTHROPY The Science of Health. The Art of Compassion. 2 HEALTHCARE ECONOMICS 4 HIGHLIGHTS 5 THE SCIENCE OF HEALTH 6 STANDING UP TO SPINAL MUSCULAR ATROPHY 8 KNOCKING OUT CANCER WITH CAR T THERAPY 10 ADVANCING LIMB PRESERVATION 11 HARRINGTON DISCOVERY INSTITUTE 12 INNOVATORS 14 TALKING WITH TED TEKNOS, MD 16 PROTON THERAPY 17 THE ART OF COMPASSION 18 KEEPING IN TOUCH THROUGH HEALING 20 COMFORTING NEWBORNS THROUGH OPIATE WITHDRAWAL 21 UH RESPONSE TO OPIOID ADDICTION 22 UH NURSE’S HEARTFELT CALLING 23 ON THE ROAD TO RECOVERY 24 2017 BY THE NUMBERS 25 UH STRATEGY 30 REPORT ON PHILANTHROPY 35 OUR DONORS 65 VOLUNTEER LEADERSHIP 70 UH LEADERSHIP 71 PHYSICIANS IN ANNUAL REPORT 7 2 UNIVERSITY HOSPITALS SYSTEM ON THE COVER Edward M. Barksdale Jr, MD, is known for performing complex surgical procedures while providing compassionate care (see page 18). Dear Friends, Our new vision statement – Attaining Level I trauma Celebrating the successful completion Advancing the Science of Health verification for UH Cleveland of our Discover the Difference and the Art of Compassion – Medical Center. Level I status, campaign, a multi-year effort made defines who we are today and where conferred by the American College possible through the generosity of more our momentum will take us. We are of Surgeons, indicates our capability than 83,500 donors contributing nearly constantly adapting, changing and of providing comprehensive care for 185,000 gifts totaling $1.5 billion. looking for better ways to deliver on every aspect of injury. UH’s extended our commitment to fulfill our mission regional trauma system includes four For over 150 years, University Hospitals in our region and the world. community-based Level III trauma has been advancing its mission: centers and Northeast Ohio’s only Level I To Heal. To Teach. To Discover. We are recognized leaders in research center for children and adolescents. It’s the foundation for our actions, and discovery, illustrated by the more bestowed by our founders to ensure than 1,800 active clinical research studies, Commemorating the five-year the citizens of Northeast Ohio had including more than 600 clinical trials anniversary of the Harrington access to vital healthcare services. From under way, our academic affiliations Discovery Institute at University these humble roots, UH has evolved with renowned centers of learning, Hospitals, part of The Harrington Project into a super-regional health system by and our clinical institutes that bring for Discovery & Development. This pioneering research, developing new highly-trained specialists together for initiative has supported 85 Harrington technologies and educating the next collaboration on treatment protocol Scholars and assisted 20 start-up generation of care providers while best practices. companies aiming to bridge the delivering compassionate patient care. gap between drug discovery and Outstanding compassionate care has commercialization. In 2017, we celebrated our best defined UH for decades and remains year yet on many fronts, which you centric to everything we do, evidenced Furthering our community will read more about on the pages by the continued improvement in patient commitment, we announced the that follow. Our achievements have satisfaction in 2017, with advances in expansion of the UH Otis Moss Jr. resulted from the efforts of our every target area measured for patient Health Center. A revolutionary clinicians and employees who live experience. Our inpatient satisfaction concept, the center pairs UH health our UH core values: Excellence, increased and achieved its target scores – services with church counselors and Diversity, Integrity, Compassion as did our outpatient provider offices educators to deliver quality, outpatient and Teamwork. Our people dedicate and UH emergency departments. care. The expansion will enhance health themselves daily to lowering the education with “on-demand” primary barriers to best-in-class healthcare, 2017 marked a year of milestones, care and other specialty offerings. pushing the boundaries that lead reaching new heights and expanding to exciting new discoveries and our services for the betterment Starting construction for the new Advancing the Science of Health of our community. Noteworthy UH Rainbow Center for Women and the Art of Compassion. accomplishments include: & Children, set to open during the summer of 2018. The center signals Forging a new agreement with a more outward-reaching approach Medical Mutual of Ohio. With this to healthcare that includes integrated addition, UH now serves as an in- social and economic services. network provider for members of all major insurers. THOMAS F. ZENTY III SANDRA PIANALTO CEO, UNIVERSITY HOSPITALS CHAIR, BOARD OF DIRECTORS 1-866-UH4-CARE (1-866-844-2273) | UNIVERSITY HOSPITALS | 1 A PERSPECTIVE On Healthcare Economics U.S. healthcare spending represents approximately 18 percent of the nation’s gross domestic product.1 Healthcare reform remains a daily Key operating programs implemented news headline. An annual survey by across our system have been the American College of Healthcare instrumental in not only yielding Executives cited “financial challenges” improvement in our operating margin, as the top issue confronting hospital but placing us ahead of many other leaders in 2017. And the biggest driver health systems. These initiatives include noted for that concern was shrinking High-Reliability Medicine that drives government reimbursement.2 down variability in practice and costs; and our Value Improvement Program With regulators insisting on continued that captures savings utilizing a lean cuts to Medicaid and Medicare Six-Sigma® approach. reimbursements, healthcare systems are faced with a precarious conundrum UH has a long history of contributions of needing to generate earnings to to science and medicine, taking a further their mission of caring for the leadership role in accelerating discovery, community, and at the same time risking innovation and translation of scientific that legislators will view a hospital’s breakthroughs that enhance the lives earnings as justification for further of our patients, our community and the cuts. By many measures, 2017 was world. In 2017, we took steps to further one of UH’s most successful years. Net our mission in academic medicine, MICHAEL A. SZUBSKI operating income increased 15 percent investing significantly in our research Chief Financial Officer, University Hospitals to $144 million3, a remarkable faculty, augmenting infrastructure to accomplishment against the backdrop facilitate clinical research through the As stewards of the organization’s of a volatile industry. As a nonprofit, UH Clinical Research Center, and financial health, my team and I manage we reinvest our earnings back into our recruiting outstanding faculty and a multi-pronged investment strategy, system by procuring advanced medical leaders. And, UH recently established the monitored by our Board, that protects technologies, pioneering research, and UH Research Division, a new operating our assets, keeps our debt exposure developing and expanding programs structure to manage academic efforts. in check, hedges our interest rate risk and services that address emerging and opportunistically captures market needs in our community. In 2017, we expanded the ICU on our investment returns. main campus; opened an urgent care Compounding the issue, commercial and emergency department in Kent; While many opportunities will present payors are also looking for opportunities began construction of the new themselves in a consolidating market, to cut costs, putting the onus on providers UH Rainbow Women and Children’s UH will pursue smart growth that to deliver solutions. Additionally, new Center in MidTown; formed the new enhances our ability to provide a full entrants, market disruptors and unique UH Spine Institute; expanded continuum of services while delivering affiliations are making transformative UH Seidman Cancer Center satellites value-based care for our patients changes to the competitive landscape. to two community hospitals; and and payors. introduced patient-centered scheduling For over 150 years, UH has weathered technology. Our 2018 capital plans are many changing environments. Survivability equally exciting, with funds earmarked 1 CMS.gov 2 ACHE.org is determined by foresight, agility and for medical center and ambulatory 3 Operating income for 2016 was restated from the rapid adaptability to a shifting situation. upgrades, IT platform integration and $104.3 million originally reported to $124.8 million reported currently to include the impact of adopting UH Ventures, a new entity established to a new accounting standard related to pension identify alternative sources of revenue. expense, hence yielding a 15 percent increase year over year. 2 | ECONOMICS | UHHOSPITALS.ORG About UH Founded in 1866, not-for-profit entity $3.9 billion system annual revenues 1.2 million+ individual patients 18 hospital locations, including 3 joint ventures 50+ health centers and outpatient facilities 3,116 registered beds 15 counties in service area 28,000+ physicians, nurses and employees • 1,179 residents and fellows • 100+ resident training programs • Northeast Ohio’s third-largest employer1 4,000+ volunteers Largest primary care network in region 1,800+ active clinical research studies including 600+ clinical trials under way Home to: • Region’s only freestanding cancer hospital: UH Seidman Cancer Center – a
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