ONE MISSION
SHARED VALUES
STRONG HERITAGE
SYSTEM ANNUAL REPORT | 2016 MISSION We are a Catholic health ministry, providing healing and care for the whole person, in service to all in our communities.
VALUES
Our Judeo-Christian tradition compels us to promote Gospel values in all of our endeavors. We commit to honor these core values:
COMPASSION We show respect, caring and sensitivity towards all, honoring the dignity of each person, especially the poor, vulnerable and suffering.
INTEGRITY We promote justice and ethical behavior, and responsibly steward our human, financial and environmental resources.
COLLABORATION We work in partnership, dialogue and shared purpose to create healthy communities.
EXCELLENCE We deliver all services with the highest level of quality, while seeking creative innovation. One Mission. Shared Values. Proud Heritage. During 2016, Covenant Health commemorated a remarkable anniversary. Twenty years ago, in October 1996, Covenant Health Systems accepted the transfer of sponsorship from the Sisters of Charity of Montreal, which paved the way for our organization to be accepted as one of the first lay Public Juridic Persons of Pontifical Right (PJP). This year, to mark this milestone, we celebrated in ways that honored our past and advanced the transformative process that will prepare us for the future. The development of our common mission statement served as a vehicle for achieving both goals. The foundation for this process was built as representatives from across the system came together over the course of the year, wrestling with words that would define Covenant Health in terms of mission and values. We also worked to acknowledge the decades of community service that our hospitals, long-term care and elder care facilities have provided through individual local heritage statements. The process was thoughtful, sometimes challenging, and today stands as our road map for successful system integration. Other milestones included the restructuring of our quality improvement measures, the maturation of the Integrated Medical Group and the implementation of our Long Range Financial Plan. These efforts are related and serve as markers of our progress. Throughout the year, our clinical providers and staff met regularly to discuss protocols, share information and identify cost savings opportunities. This integrated work flow is a key step in our next major project – implementation of the CareLink electronic medical record system. By all measures, 2016 has been a year of challenge. Change is not easy. What is rewarding, however, is the energy and focus of our employees and providers as they work toward a common goal. While we celebrate milestones like our 20th anniversary as a PJP, we are equally committed to the future. This vision includes the support of the communities we serve, the validation of those we employ and the advancement of our mission.
Louise Trottier David R. Lincoln Board Chair President/CEO Covenant Health Systems Covenant Health Systems and Covenant Health, Inc. and Covenant Health, Inc. Pilgrimage to Rome In October, representatives from around our system traveled to Rome. Our delegation met with officials from the Congregation for Institutes of Consecrated Life and Societies of Apostolic Life at the Vatican, reporting on the major initiatives of Covenant Health Systems, and Covenant Health. We discussed the state of Catholic healthcare in the United States, and our progress on formation and mission education. As a Public Juridic Person (PJP), we are required to provide regular updates of this nature to the Vatican. But this pilgrimage resulted in something more. The experience was powerful, in fact life-altering for many, and strengthened the bonds among our leadership in attendance. In obvious and more subtle ways, we were reminded of our mission, and committed to fully integrating our responsibilities as representatives of the PJP into all that we do. As a group, we renewed our connection to the Catholic Church. We left Rome with homework. While the Vatican officials continue to admire our work, their charge for us is clear: We have been asked to take ownership of the unique charism of Covenant Health Systems, defining the gift we have been given, and outlining the ways we will share this with the Church. Our commitment as sponsors affirms our responsibility for the future of Catholic healthcare. Our commitment to our mission defines our path for the future.
Photo credit: Christopher Chekouras The People of Covenant Health
William Wood, MD
Chief Medical Officer and Vice President of Medical Affairs
St. Joseph Healthcare Bangor, Maine
Dr. Wood serves as chief medical officer and vice president of medical affairs practicing internist at the time and we were concerned about losing control at St. Joseph Healthcare in Bangor. In these roles, he is an integral part of the and going ‘corporate.’ But the best thing about working for Covenant Health leadership team, and focuses much of his attention on all the details that help is feeling part of something bigger and better that’s improving all the time. St to make St. Joe’s such a successful community hospital. While some of Dr. Joe’s would be a dramatically different organization today if it were not part Wood’s responsibilities include reviewing data and reports, caring for patients of Covenant. We have access to colleagues across the system, expertise, and is always top of mind. “My focus is to help my clinician colleagues provide the capital for things like buildings and CareLink. All of this helps us be better at best care we can to our patients and our community,” he says. what we do,” he concludes.
”I probably went into medicine for the wrong reasons,” Dr. Wood remarks. State tourism officials have made famous the phrase: “Maine. The Way Life “I did well in school and loved science. Somehow I thought this was enough, Should Be.” Life in Bangor certainly seems like a good fit for Dr. Wood. He recently sold his pirate sailing ship and has taken up golf. He loves to ski and but I really wasn’t prepared for what it means to be a primary care provider. walk, and spend time with his family at Sebec Lake. He’s also an accomplished Fortunately, I love what I do, and after 30-plus years in practice, I really could photographer who’s known for his images of Bangor. not have scripted it better. I realized as a young physician what an incredible opportunity I have to help people at the most vulnerable times in their lives, Dr. Wood knows his community well, and cares deeply about the success of and I’ve never lost that sense of awe.” healthcare for his neighbors and friends. “I want to be a part of the team that helps prepare for the future of medicine in our community,” he says. “There The Felician Sisters, longtime sponsors of St. Joseph Hospital, officially are always going to be challenges, but what really matters is delivering the transferred sponsorship of the hospital to Covenant Health in 2010. The very best care to each patient. This was true 30 years ago when I first started decision to move toward full membership within Covenant Health was made to as a primary care doctor, it’s true today, and it will be true 30 years from ensure the long-term viability of St. Joseph Healthcare as a Catholic-identified now. Advances in technology and research will certainly provide us with new ministry. tools and information, but I hope we never lose that sense of awe about the “At first, I’ll confess, it was a little scary,” remembers Dr. Wood. “Iwasa responsibility and opportunity we have as medical providers.” The People of Covenant Health
Aisel Adil, RN
St. Mary’s Health System
Lewiston, Maine
“I always start my mornings with a cup of coffee and a chat with my husband,” says Aisel Adil. “Connecting to the people I love always starts me off with a smile on my face.” As a nurse at St. Mary’s Health System in Lewiston, Aisel knows the value of love and positive thinking. Aisel came to St. Mary’s in 2003 from the Philippines through the International Nurses Alliance. Today, she cares for residents of one of the skilled nursing units at d’Youville Pavilion. “As a proud Catholic, Nursing has been a lifelong passion for Aisel. “When I was young, my aunt was the medical director in a hospital,” she explains. “Not only did I have this amazing, intelligent doctor to look up to, but I also had a kind and fun loving aunt to all my life I’ve been laugh with. When I was 15, I had to have foot surgery and she was the one to do it. To know that I was in the safe hands of someone I looked up to, really made me feel the kindness, compassion, intelligence and professionalism that is the standard in medicine, and in life.” guided by compassion, St. Mary’s is a great match for Aisel. She says, “As a proud Catholic, all my life I’ve been guided by compassion, respect respect and the drive and the drive to be the best human being I can possibly be. Working at a Catholic hospital like St. Mary’s provides me with the opportunity to help the most lives I can, surrounded by the values I have.” to be the best human Away from the hospital, Aisel enjoys time with her family, including regular trips to Acadia National Park and the surrounding town of Bar Harbor. She says, “I take that trip to revel in the beauty that is Maine. There is an air of peace being I can possibly be.” that surrounds the park that always leaves me breathless.” But her life at St. Mary’s is never out of mind. “As a nurse, you are confronted with a lot of challenges,” she reflects. “Saving lives and helping a person carry on with wherever life leads gives me a deep sense of fulfillment.” Clearly for Aisel, nursing is not a job--it’s a calling. The People of Covenant Health
Richard Gibbons
Director of Dining Services
Mary Immaculate Health/ Care Services Lawrence, Massachusetts
In his heart, Richard Gibbons is a chef. He enjoys the creative challenge of cooking and the pleasure he brings to others with a job well done. Richard joined Mary Immaculate in July 2014 after a very successful career providing contract dining “Our senior leadership services in acute care settings. At MI, on any given day, he oversees a staff of 42 employees and provides 900 meals a day to seniors at multiple locations. Some have dietary restrictions, some have food allergies team and employees and some have very strong preferences. On Richard’s watch, all enjoy more than just meal service. Most dine. serve as wait staff in “Working with seniors feels right to me,” he says. “Food is very important to our residents and their family members. We train our staff in customer service techniques modeled on the hospitality industry. Our the dining room at senior leadership team and employees serve as wait staff in the dining room at lunch, which provides a venue for conversation and warm interaction. Mealtime has become a social activity, and an opportunity lunch, which provides a for our staff to shine.” Richard is also a mentor. Like many healthcare facilities, many entry- level positions at Mary Immaculate venue for conversation are in the kitchen. Richard has used this opportunity to teach culinary as well as social skills. He leads by example, encourages advancement and is a steady hand in a crisis. But, on a regular basis, he returns to and warm interaction.” his roots. Donning a chef’s coat and hat, Richard hosts food demonstrations for residents. “At MI, I’m busy and challenged,” he concludes. “This matters to people, and it matters to me.” The People of Covenant Health
Zelia Tavares
Housekeeping
Youville Place Lexington, Massachusetts
Zelia Tavares began her career with Covenant Health in 1989 as a housekeeper in the Provincial House with the Grey Nuns. “A friend of mine told me about the job,” Zelia recalls. “At that time, Sr. Doucette was in charge of the housekeeping department, and when I met her, I knew I wanted to work with the Grey Nuns.” The relationship continued for eight years, and when the Provincial House was converted to an assisted living facility, Zelia transitioned as well. For the past 20 years, Zelia has worked at Youville Place. “On my way to work I like to start thinking and “I love the residents,” planning what I will be doing that day,” she says. Usually, Zelia starts by cleaning the common areas in the Courtyard, and then moves on to the residents’ apartments. “I love the residents,” she says. “I just love Zelia says. “I just love working with them and helping them with whatever they need, even if it is not my job.” The residents and Zelia’s co-workers love working with her too. They say she’s a true team player who’s working with them dedicated and diligent. “My parents taught me to respect everyone and provided me with good examples on how to treat others,” she says. “They were also very hardworking.” and helping them with Compassion. Integrity. Collaboration. Excellence. These are the core values for Covenant Health, and the values Zelia brings to work with her every day. whatever they need,
even if it is not my job.” Serving Our Communities
Helping the Homeless
The St. Joseph Healthcare ministry in Bangor is rooted in the tradition of the Foundress of the Felician Sisters, the Blessed Mary Angela. In keeping with her vision of renewing society through compassionate care of the whole person in all circumstances, St. Joe’s has made a commitment that “even when homeless, every human being has to have the dignity to sleep on a clean warm bed every night.” This promise was made several years ago, and continues today through a partnership with the Bangor Area Homeless Shelter. Like many shelters, the Bangor Area Homeless Shelter provides emergency and short term housing for homeless adults in Greater Bangor. The need is great. During 2016, this shelter provided 13,548 bed nights to 643 clients. The facility is housed in a building characterized by historic charm as well as an older heating system. “Living in a historical (old) building like ours means that keeping warm on winter nights can be a challenge,” says Executive Director Boyd A. Kronholm. (l to r) Corey Knights from St. Joseph This winter, the employees of St. Joseph Healthcare stepped in to Healthcare Materials Management delivers help. Just before the holidays, the materials management team warm blankets to Boyd A. Kronholm, executive delivered several boxes of warm blankets generously donated director of the Bangor Area Homeless Shelter. by the hospital staff. “This donation allowed us to give each guest an additional blanket on cold nights,” says Kronholm. In addition, during 2016, St. Joseph Healthcare provided laundry service for the shelter and replaced linens that had become unusable. Blankets and linens provide warmth and comfort, and much more. The generosity of the St. Joe’s staff stands as a tangible example of compassion offered to support human dignity. The Blessed Mary Angela would be proud. Serving Our Communities
Neonatal Abstinence Syndrome (NAS) Program at St. Mary’s Regional Medical Center
Dr. Michael Czerkes, an OB/GYN and NaProTECHNOLOGY specialist at St. Mary’s Regional Medical Center, and the staff of St. Mary’s Women’s Health Associates, provide excellent clinical care. They provide patients with something else: hope. In Maine, opiate abuse is at an all-time high, so it’s not surprising that Dr. Czerkes has witnessed more and more newborns affected by exposure to opiates. What’s remarkable is that Dr. Czerkes and his colleagues from St. Mary’s Behavioral Health and Case Management departments have created a solution. The Neonatal Abstinence Syndrome (NAS) program helps pregnant women safely end their drug use and go on to deliver healthy babies. The program explores the many issues of addiction and helps break down the barriers to sobriety. When the program first began, many women hesitated to seek help for their addiction because they were ashamed. The St. Mary’s medical staff is known for being compassionate and respectful caregivers, and word spread quickly. Women are now “…the program we coming out of the shadows and into Women’s Health Associates, where have worked so hard they know they’ll find exceptional to implement has Michael Czerkes, MD care without judgment. been lifesaving and Perhaps St. Mary’s Chief Medical Officer Christopher Bowe, MD, summed up the work of the NAS program best by saying, “I think our thoughtfulness and life-changing.” respect for these patients who are often ignored or looked down upon by others, — Christopher Bowe, MD including many healthcare providers, is remarkable, and the program we have worked so hard to implement has been lifesaving and life-changing.” Serving Our Communities
Project SEARCH and St. Joseph Hospital (Nashua) St. Joseph Hospital is one of the founding collaborators and host site for Project SEARCH, a community-based program to assist disabled workers in finding meaningful employment. The program is a team effort between St. Joseph Hospital; the Nashua School District; New Hampshire Vocational Rehabilitation; the PLUS Company, Inc.; and Gateways Community Services. A school-to-work program for students with disabilities, Project SEARCH provides real-life work experience combined with training in employability and independent living skills. The goal for each student is competitive employment within the community. Each person participates in an internship that includes a hands-on learning environment, classroom space and executive board-level support. Currently in its eighth year, Project SEARCH graduates from St. Joseph Hospital have found permanent employment at area businesses, including Marriott Courtyard, local supermarkets and restaurants, and within St. Joseph Hospital. Financials FYE 12.31.16 Utilization 2016 2015 Nursing Home Days 370,872 365,904 Hospital Adjusted Discharges 53,887 48,783 Hospital Patient Days 72,013 73,059 Length of Stay (Acute Care) 4.0 4.2
Financial Activities (in thousands) Total Operating Revenue $645,389 $613,227 Expenses Salaries & Benefits $375,658 $369,433 Supplies & Other $221,837 $199,644 Provider Taxes $18,652 $18,413 Depreciation & Interest $34,335 $35,134 Total Operating Expenses $650,482 $622,624 Operating Margin ($5,093) ($9,397) Non-operating Gains (Losses) $23,881 $2,511 Excess of Revenues Over Expenses $18,788 ($6,886)
Financial Ratios Operating Margin -0.8% -1.5% Excess Margin 3% -1.3% Days Cash on Hand 229 232 Debt Service Coverage 2.1 2.3 Debt Capitalization 30.7% 32.7% Charity Care 1.2% 1.2% Support for the Broader Community 1.0% 1.2% Unpaid Cost of Medicaid 3.3% 3.6% Board of Directors Current Corporate 2016-2017 Leadership Team David R. Lincoln, FACHE President/CEO John M. Ahle Chief Financial Officer Katherine L. Bechtold, RN, MHA, NE-BC Chief Nursing Officer Anne Berger, PhD, MBA, RN, CPHQ Vice President, Quality Improvement & Safety Richard Boehler, MD, FACPE President/CEO St. Joseph Hospital Karen Bowling, MBA Chief Information Officer Christopher A. Chekouras President/CEO St. Mary’s Health System Lesley Adkison, PhD, RN* John Isaacson (Past Chair) Dan Mingle, MD* Nursing Practice Innovation CEO President/CEO J. Bradford Coffey Leader Lee Management Company Mingle Analytics President Newton Wellesley Hospital Covenant Health Foundation Thomas L. Kelly John D. Oliverio, Vice Chair John M. Emerson Kenneth E. Arnold Retired Former President/CEO Vice President Retired CEO Wheaton Franciscan Healthcare Integrated Medical Group Senior Vice President, HealthSmart General Counsel and Secretary John M. Pallone Gerard J. Foley, Esq., FACHE LifeSpan Corporation Sr. June Ketterer, SGM Founder and Principal Vice President, Post Acute Care Sisters of Charity of Montreal Shaheen, Pallone & Karen Leibold Bruce Bonnell, MD, MBA, Associates, PC Vice President, Human Resources MPH* David R. Lincoln, FACHE Geriatric Internist President/CEO Louise Trottier, Board Chair John D. Newman, Esq. Vice President, General Counsel Chief of Geriatric Medicine Covenant Health Retired Spaulding Hospital for Senior Vice President of Mary Prybylo, RN, MSN, FACHE James F. Loftus IV Continuing Retail Banking President/CEO President/CEO Medical Care TD Bank St. Joseph Healthcare/St. Joseph Hospital 101.1 More FM/WBEB Dennis Shubert, MD, PhD Aisha Bonny, MSW William P. Lucy *New board member Chief Medical Officer Sr. Director of Operations Senior Vice President Child Family and Community Jason VanDiver Commercial Services Services Vice President, Strategy & Marketing Katahdin Trust Company BAMSI Vice President, Sponsorship & Mission (vacant) Current Covenant Health Organizations
Sponsored/Members Managed Facilities Affiliated Facilities Fanny Allen Corporation Bangor Nursing & Rehabilitation Center Bethany Health Care Center Burlington, VT Bangor, ME Framingham, MA Maristhill Nursing & Rehabilitation Center Elizabeth Seton Residence Campion Health Center Waltham, MA Wellesley, MA Weston, MA Mary Immaculate Health/Care Services Fall River Jewish Home Lawrence, MA Salemhaven, Inc. Fall River, MA Salem, NH Mount St. Rita Health Centre Holy Cross Health Center Cumberland, RI St. Joseph Rehabilitation and Residence Manchester, NH Portland, ME Penacook Place Marillac Residence Haverhill, MA Wellesley, MA St. Andre Health Care Mason Wright Senior Living Center Biddeford, ME Springfield, MA St. Joseph Healthcare Matulaitis Rehabilitation & Skilled Care Bangor, ME Putnam, CT St. Joseph Hospital Notre Dame du Lac Nashua, NH Worcester, MA St. Joseph Manor Notre Dame Long Term Care Brockton, MA Worcester, MA St. Mary’s Health Care Center Regina Cleri Residence Worcester, MA Boston, MA St. Mary’s Health System Sancta Maria Nursing Facility Lewiston, ME Cambridge, MA St. Mary’s Villa Elmhurst Township, PA Youville House Assisted Living Residence Cambridge, MA Youville Place Assisted Living Residence Lexington, MA Ourit through each person we serve. daily renew ourcommitment to honorand fulfill this great legacy in the tradition of Mercy and mercy, compassion and hospitality. We steward the sick by providing exceptional healthcare with expressed Catherine’s call thepoorand to serve Ireland, in 1831. Since 1971, we have faithfully who founded the Sisters of Mercy in Dublin, and mission from the vision of Catherine McAuley, Mount RitaSt. Health Centre draws its inspiration Mount RitaSt. Health Centr MargueriteSt. d’Youville. to thechanging needs of society inthespirit of diverse, loving family community andrespond Heritageprovide dignified, compassionate care within a Mary Immaculate inLawrence, MAin1868. We of Charity of Montreal “Grey Nuns” founded Trusting intheProvidence of God,the Sisters Mary Immaculate Health/Care Services families andstaff. a kind andloving community for individuals, Maristhill’s continuing dedication to building unconditional caring has beenfoundational for throughout theworld.serve This concept of respond to theneeds of thecommunities they commitment of theMarist Missionary Sisters to Maristhill was begun as anextension of the Rehabilitation Center Maristhill Nursing and spirit. people whoare sick andpoorinbody, mindor reflect the compassion of Christ inservice to stewarding resources to support activities that the Religious Hospitallers of Saint Joseph by Fanny Allen Holdings continues the ministry of Fanny Allen Corporation of Montreal, “Grey Nuns,” andis committed, as aninnovative Catholic health organization, to advancing thehealing ministry of Jesus. Covenant Health, influenced by the Spirit of St. Marguerite d’Youville andthat of all related sponsors, was founded by the Sisters of Charity Covenant Health
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need with compassion andrespect. God’s love, each community all serves those in of Charity of Montreal, “Grey Nuns.” Trusting in Marguerite d’Youville, foundress of the Sisters communities grounded inthespirit of St. Youville Assisted Living Residences are Youville Assisted Living Residences the elderly continues today. and ahomefor theelderly. Their loving care for the Sorrowful Mother, established anorphanage founded, thePoor Sisters of Jesus Crucified and Rev. Alphonsus and the religious order that he children inthe area of Scranton, Pennsylvania. his fellow countrymen andwomen andtheir of themissionary spirit, answered thecall of emigrated from Lithuania and,with thefervor Passionist priest, Rev. Alphonsus Maria, who Mary’s St. Villa was created in1924 by a Mary’s Villa St. our community. offered with respect andcompassion, for all in unwavering commitment to provide holistic care, Mary’sHealthSt. System will continue its and theirfoundress, MargueriteSt. d’Youville, of this community. Inthespirit of the Sisters established ahealing ministry to meet theneeds In 1888,the Sisters of Charity of Saint-Hyacinthe Mary’s HealthSt. System Marguerite —St. love d’Youville andserve.” Montreal, “Grey Nuns.” “We shall continue to d’Youville, foundress of the Sisters of Charity of reflected inthelife and legacy of Marguerite St. We live thecompassionate healing of Jesus as and ahomefor thesick, theelderly andthepoor. Covenant Health since 1998, is aplace of welcome MaryHealthSt. Care Center, sponsored by Mary HealthSt. Care Center Our Name is Our Promise
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