ANNUAL REPORT 2007 gnade German clémence French “God’s mercy English gracious and

compassionate mercy muΛocepДue Ukrainian is the wellspring, misericordia Spanish the source of

never-failing supply, habag Filipino for all those who genade Dutch cherish and seek to live out this gift of minaa’se Chamorro mercy.” sokosokoch Chuukese — founder Catherine McAuley trocaire Gaelic barmhärtighet Swedish meelserde Polish

SISTERS OF MERCY SERVICES

DEDICATED TO THE WELL-BEING OF THE PEOPLE OF WESTERN NORTH CAROLINA OUR MISSION The Sisters of Mercy Services Corporation supports the endeavors of the Sisters of Mercy

In 1938, when St. ’s Hospital stood on Biltmore Avenue, in the Regional Community of Sisters of Mercy served in top leadership roles at the hospital North Carolina to bring excellent and as caregivers to the people of Western North Carolina. healthcare and other needed services that support our values Sharing Mercy to all those in our community with the people of Western North Carolina who seek them. Since their arrival in Asheville in 1900, the Sisters of Mercy have served the healthcare needs of the people of our community. Today, Sisters of Mercy Services SACREDNESS OF LIFE Corporation provides Buncombe and surrounding counties with medical care and mental health services HUMAN DIGNITY at our not-for-profit facilities as well as general construction services for medical and business organizations. MERCY

Sisters of Mercy Urgent Care administers excellent, JUSTICE affordable minor emergency medical care at three conveniently-located facilities. Onsite healthcare is also SERVICE provided to businesses and schools.

ARP/Phoenix offers a broad array of substance abuse EXCELLENCE education, prevention, assessment and treatment, as well as other behavioral health and wellness programs.

Mountain Health Contracting is a for-profit entity that supplies general construction services to local medical and commercial business organizations.

The Catherine McAuley Mercy Foundation supports the mission and ministry of the Sisters of Mercy in the community through contributions and investments.

On the cover: “Mercy” as spoken in the languages of Sisters of Mercy Services Corporation staff and in our community. Evolving to meet the needs of the times has been a hallmark of the Sisters of Mercy in Asheville for more than 107 years. This practice continued during 2007 as Sisters of Mercy Services Corporation focused on innovation and planned growth in order to deal with the shifting imperatives of our community. In doing so, our doctors, nurses and counselors touched more than 100,000 lives, many of whom were among the most vulnerable members of our community.

Our facilities also kept pace with emerging community needs. ARP/Phoenix relocated and consoli- dated their operations at 257 Biltmore Avenue. Ground was broken on a Crisis Stabilization Unit at Neil Dobbins Center. This new unit will provide immediate care to mental health and substance abuse patients in crisis, easing the burden on overrun emergency rooms and detention centers. A state-of- the-art Urgent Care-West facility is now under construction at 1201 Patton Avenue in West Asheville, with space for administrative and business offices. Urgent Care-South at 1812 Hendersonville Road was renovated and updated in 2007, while Urgent Care-North at 155 Weaver Boulevard joined hands with a regional grocery chain to offer free and reduced-cost health screenings.

Supporting this activity was the Catherine McAuley Mercy Foundation. Named for the foundress of the Sisters of Mercy, this Foundation is a resource to help us continue to provide services to those in need. It is the influence of Catherine McAuley that compels us to visibly weave our Core Values – especially the value of Mercy – into our name and all that we do.

Tim Johnston President/CEO Sisters of Mercy Services Corporation

Tim Johnston, left, celebrates a successful 2007 with John Ellis of Bowers, Ellis & Watson, Architects, designers of the new Sisters of Mercy Urgent Care-West, and Sam Stickney, Catherine McAuley Mercy Foundation chair.

“Mercy – the principal path pointed out by Jesus Christ to those who are desirous of following him.” —From the Original Rule of Mother McAuley “The proof of love is deed.” —Catherine McAuley Catherine McAuley was born in Dublin, Ireland in 1778. After the death of both of her parents, she was invited into the home of a kind and wealthy couple to manage their household and care for them. When they died, to her surprise, Catherine learned that she was the sole heir to their estate. Catherine used the inheritance to build the first House of Mercy in Dublin in 1827 and set about caring for the poor, the sick and the educationally disadvantaged. With two of her associates, Catherine took religious vows in 1831 and thus formed a new Catholic Religious Congregation, the Sisters of Mercy.

In the next decade, the passionate work of the Sisters of Mercy spread across Ireland and England. Catherine traveled extensively during these years, but her tireless efforts were overtaken by illness. She died in 1841 with a final request that one of the Sisters at her bedside “see that the Sisters have a comfortable cup of tea when I am gone.” Catherine said, ”My legacy to the Institute is charity.”

The legacy of Mother McAuley’s work continues to inspire thousands. Today, there are Mercy Sisters on every continent – women who see the same needs Catherine once saw in Dublin, women who respond with the same intensity and tenderness, insight and tenacity of purpose. Sisters of Mercy still teach, care

©1993 McAuley Images for the sick and use the freedom of their order to This lifesize bronze of Catherine McAuley was sculpted respond to twenty-first century needs. In 1990, by Sister Marie Henderson, RSM, of Detroit. Used by John Paul II decreed Catherine McAuley Venerable – permission. More at McAuleyImages.com an important step toward sainthood.

The Catherine McAuley Mercy Foundation is named for the extraordinary woman who established the Sisters of Mercy. Evolving from St. Joseph’s Hospital Foundation in 1999, this foundation continues the Sisters’ 107-year tradition of service to the people of Western North Carolina by supporting their Asheville-based ministries.

In 2007, a Board of Directors was created to oversee the Foundation’s activities and to make it a more active presence in the region. Foundation efforts in 2007 included the funding of digital imaging for the Sisters of Mercy Urgent Care centers, Urgent Care facility improvement projects and financial support for ARP/Phoenix mental health and substance abuse programs. The Catherine McAuley Mercy Founda- tion is a 501(c)3 organization and relies on contributions and investments as its major source of income. In 2007, the Foundation was a vehicle for individual, church, civic group and organizational giving. Sisters of Mercy Services Corporation celebrates our team

with gratitude to all who bring mercy to the people of our community

Gladys Allen Wanda Coleman Rosemary Hartman Michelle McCoy Nora Sheehan Osvaldo Alvarez Julie Collins Mary Haynes Lorri McCutcheon Amy Shroyer Andrea Amburgey Wayne Collins Leigh-Anna Hicks Nancy McDaniel Joy Slusser Rebecca Anderson Jamieson Conkin Kathleen Hobbs Glenda McDowell Laurie Smith Madeline Appelbaum Kelley Conley Karen Hoffman Teresa McPherson Susan Smith Adina Arden-Cooper Elizabeth Ann Cook Diane Holmes Stephanie Mendelson Timothy Smith Christina Arias Mark Cornelius, MD Eric Howard Crystal Merrill Valerie Smith-Jackson Danielle Arias Sharyn Creech Altha Hoyle Linda Miller Linda Soesbee Jon Arnold Oblendo Cuento, MD Kathleen Hunter Leslie Misler Rose Spittle Rachael Austin Robert Cummings Hutchins Elizabeth Mone Sister Spradley Michelle Baldwin Mary Patricia Curran Patricia Isaacs Donna Montgomery Barbara Sproles Corey Baker Jeanne Dairaghi Yvette Isom Vicky Morgan Kimberly Sprouse Giselle Bango Jodie Davis Deborah Ivey Rebecca Morrow Gilbert Steele Bate, MD Paul Deckman Patricia Jackson Joanna Muzylowski Mark Steinke Kelilyn Bell Amanda Desua Timothy Jackson Marie Nemerov Betty Stewart, MD Richard Bellflower Shannon Dowler, MD LaVonne Jacobson Julie Newton Victor Stewart Patricia Bernstein Shana Duncan Pamela James Frances Nicholson Sam Stickney Janet Betzner Travis Durham Diana Johns Kristine Nutt Wallace Sturgis Peggy Bierer Anna Elliott Dyneece Johnson Melissa Ochoa Carlotta Surratt Lou Bissette Joseph Elliott Tim Johnston Belinda Odom Judith Swayne Charles Blair, MD Katharine Elliott Kathy Jones Theresa Oursler Paul Tax Bridgette Blevins Ed Entmacher, MD Elizabeth Katell Sharon Owen Suzanna Teske Sister Michel Boulus Helen Farrell Adelaide Key Donald Owens Sheila Thibodeaux Trina Boyd Melinda Fender Julia Kindell Janice Parris Elizabeth Thomason Cheryl Brackett Robert Fields, MD Christina King Michelle Parris Larry Thompson Barbara Branch Betty Fisher Kimberly Kirby Vince Parsons Sharon Turpin Thomas Britton John Fleming Linda Kirkman Lisa Perino, MD Judith Ulesan Elizabeth Brown Cheryl Fore Corie Kloss Sheila Pertiller Carlos Vargas, MD Lauren Brown Jennifer Fore Dobrinka Kosseva Ernie Peterson Miaisha Wadsworth Donna Bruce Susan Freeman Jennifer Krider Travis Peterson Laura Walls Mary Elizabeth Burns Wendy Gade Lisa Ladd, MD Bob Phillips James Ware Sherrie Byrd Bridgette Gardner Stephanie Lail Sister Rosalind Picôt Kip Warlick Loretta Calhoun Pamela Gardner John Langlois, MD Jennifer Pierce Brian Warren William Callison, MD Lindsey Gatrell Christine Laucher Aviva Pitt Mike Watson Linda Carillet Gwen Gavin Donna Laws Stephanie Pruett Denise Amber Waycaster Candace Carringer Paul Gilliam Ellen Lawson, MD Rick Pyeritz, MD Karen Weinberg Barbara Chambers Walter Gladding Ledbetter Deanna Queen Sharon West Bethany Chandler Ron Gollberg, MD George LeRoy Marianne Redmond Thomas Whisenant Brenda Chapman Diane Gooch Constance Lovelace Alan Rhodarmer Teena White Teresa Chason Russell Goodwin Marvin Lunsford Mary Ann Riley Latoya Whiteside Jim Christian Sister Lawrence Lytle Jerry Rio Donald Wilkinson Patricia Clackler Daniel Gossett Dan Maney Carla Roberts Mike Willett Amanda Clark Jeff Gould Charlotte Martin Jamie Roberts John Williams Sister Pauline Clifford Martha Greene J. Paul Martin, MD Vida Robertson, MD Sara Williams Jarod Coffey Tatyana Gurney Helen Malenda Matthews Cynthia Robinson John Wilson Molly Coffey Laura Haas Pamela Maxwell Pamela Rogers Pamela Winfree Michael Coladonato, MD Linda Hamilton Maceo Mayo Robert Ross, MD Loretta Young Susan Cole Doris Hankins Nancy McClintock Basil Savitsky Monica Hart Brett Sculthorp ARP/Phoenix Youth Substance Abuse Services – telling Shawn’s story

The skinny 14-year-old – with shiny gold all over his face from inhaling spray paint – was found by police, living in a tent in a homeless camp with a man who had befriended him. Having run away from a housing development and a mother who was unable to care for him, Shawn had taken up substance abuse with a vengeance.

Never having really known his biological father, Shawn had come to love his mother’s second husband as his father. Unfortunately, however, this man had died the previous year of cirrhosis related to alcoholism. Shawn was struggling with the resulting grief and the fact that his mother was often not available for him due to her own substance abuse issues.

When Shawn was first brought by juvenile authorities to ARP/Phoenix for his assessment, he was unable to sit still for more than a few moments, and he talked constantly at full volume. It appeared that Shawn may have incurred brain damage from inhalant use, and there was concern that a return to normal functioning might be impossible.

In addition to his substance abuse, Shawn’s clinical assessment revealed that he had an anxiety disorder and a history of hyperactivity. Shawn’s self-description was one of a person who liked to make people laugh and who had “psycho problems.” Shawn had been in treatment for only a short time when his counselor received an emergency phone call advising that Shawn’s mother had been arrested for cocaine possession and that he would be placed in the custody of social services. (Continued next page.)

ARP/Phoenix is a leading provider of comprehensive behavioral health services for youth, adults and families with mental health or substance abuse problems. Emphasizing a person-centered philosophy, ARP/Phoenix provides approximately 75,000 patient encounters per year. Shawn’s Youth Services Counselor worked diligently and located a foster home that could provide therapeutic interventions for Shawn and his brother. Youth Services staff also began providing intensive treatment for Shawn: individual therapy to help him cope with the traumatic events that had occurred in his life, including management of his hyperac- tivity and anxiety, medication therapy and relapse prevention skills. Later, his family would complete a parenting and family group through the Strengthening Families Program.

Shawn’s therapeutic foster parents provided a Pressley greets a visitor. warm and accepting home, and supported by concurrent substance abuse and mental health treatment, Shawn began to flourish. His Young resident leads school behavior and grades improved, he joined the ROTC, began participating in school Mary Benson House tour sports, developed age-appropriate friendships Kindergartners from the Jewish Community and for the first time ever experienced a Center in Asheville toured Mary Benson normal family life. House and made a donation, which they had saved throughout the year in loose Recently the Department of Social Services change. Pressley, a four-year-old residing at began plans to transition Shawn back to living the house, conducted the tour, inviting the with his mother. While waiting for this young guests to see his room and his toys. transition to take place, Shawn’s special nature continues to capture the hearts of the staff Women residing at Mary Benson House who have worked with him, and it is gratifying gain the support they need to recover from to see this young man walk in calmly and their addictions and learn valuable life skills. communicate in a mature, respectful manner Their children may live with them, and as he talks about his successes and dreams for programs are available to pregnant women the future. that promote the healthy birth of their babies.

“Women who are parenting in recovery are faced with not only rebuilding a support network and stability for themselves, but for their children as well.” —Stephanie Lail, Mary Benson House Resident House Manager Mercy in Action

Urgent Care collaborates with The Primary Care Project to serve the uninsured

Responding to a growing need for cost-effective employee medical care, five local organizations recently teamed up to launch a new healthcare initiative: The Primary Care Project. The partners involved in this initiative are W.P. Hickman Company, Three Streams Family Health Center, Eblen-Kimmel Group, Western Carolina Industries and Sisters of Mercy Urgent Care.

The Primary Care Project consists of two programs – the Employee Health Connection, which includes cost-effective urgent care services through Sisters of Mercy Urgent Care, and “Housecall,” which provides onsite healthcare services from Three Streams. Part-time and temporary employees of participating employers and their dependents pay a minimal co-payment for the services they receive. If an employee is unable to pay the co-pay, Eblen Charities will do so.

The urgent care partnership provides medical and emergency services to employees of participating companies and their dependents, including x-rays, blood testing and an array of other medical services. Participating employers receive a 50-percent discount off total charges, and employees seeking services are charged a $20 co-payment. Eblen will pay the co-pay for any employee who cannot afford to do so. The cost of the program to participat- ing companies, which includes an annual ceiling cost per employee, is substantially lower than full health insurance costs.

Participants in The Primary Care Project are pictured, left to right: Bill Murdock, CEO of Eblen-Kimmel Group; Scott Hickman, CEO of W.P. Hickman Company; Shana Duncan, Executive Director of Sisters of Mercy Urgent Care; Fredrick Reese, CEO of Western Carolina Industries; Fr. Chris Newcomb, Executive Director of Three Streams Family Health Center

Dr. Charles Blair, Sisters of Mercy Urgent Care physician, examines the wrist of Carroll Biggs. Photo courtesy of The Asheville Citizen-Times ©2005

Christmas Carroll brings cheer One snowy December day, an elderly but sprightly gentleman rode his moped to Urgent Care-North for treatment for pain in both his knees, pain that had been exacerbated by the cold weather. Carroll was promptly seen by Urgent Care physician Dr. Charles Blair, who prescribed medication to alleviate the knee pain. In the process, Carroll was so taken with Dr. Blair and the Urgent Care staff that he not only became a regular patient, but a regular visitor as well. The jovial and kind-hearted man began to stop by the center to say “Hi” three or four times a week, spreading his own unique brand of good cheer and gratitude at every visit.

In return, the staff at Urgent Care-North has shown their own gratitude for Carroll’s joyful presence in their lives, coming to his aid when he’s needed it, arranging for transportation to specialists and even delivering Thanksgiving dinner to him at his home. Carroll is truly a gift – one that keeps on giving.

“The kindness and vision of the Sisters of Mercy is a shining example of what partnerships can do in our community without caring who gets the credit. It is compassion in action.” —Bill Murdock, CEO of the Eblen-Kimmel Group Mercy Made Tangible

Urgent Care-South more patient-friendly than ever

During 2007, Mountain Health Contracting, Sisters of Mercy Services’ general construction firm, expanded the waiting and reception area at Urgent Care-South, providing an open and spacious seating arrangement washed with natural light. New ceiling tiles, flooring, paint and lighting enhance the welcoming and cheerful environment. In addition, the centrally-located reception module was elevated to provide an all-encompassing view of the entire seating area, making it easier to monitor the well-being of patients.

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“The improvements at Urgent Care-South will help us serve our patients even better and provide them with a more welcoming and comforting atmosphere when they need to visit us,” says Shana Duncan, Executive Director of Sisters of Mercy Urgent Care.

Bridgette Blevins assists a patient with check-in at the more conveniently-locatedconveniently located front desk..

TheTThe new waiting room is spacious, attractive and comfortable.

“Mercy calls us to be kind, compassionate and caring – to each other and to those we serve – above and beyond what might normally be expected.” —Sister Maria Goretti, Director of Mission and Values New Urgent Care-West designed to better serve our patients

Sisters of Mercy Services Corporation officials broke ground on September 12, 2007 at the site of the company’s new Urgent Care-West facility. The 15,000- square-foot, state-of-the-art building will be located at 1201 Patton Avenue, one block west of the current Urgent Care-West location. It is due for completion in 2008.

Urgent Care services will be located on the first floor of the new facility, with business and administrative offices for “May God bless each of the Sisters of Mercy Services Corporation on the second floor. Mountain Health Contracting is the general contrac- us here and bless this tor for the project, which was designed by Bowers, Ellis & space, this project, with Watson, Architects. His loving presence. With its many energy efficient and green building features, Now, reverently caring the new facility will provide a healthy environment for for the beauty of this patients, staff and visitors. The facility has been situated to earth, we symbolically utilize the sun for indirect lighting throughout. Solar shades will limit summer heat gain to the building. turn the first shovel of dirt to begin this new The building is designed to minimize water and electricity Sisters of Mercy usage and eliminate ozone-depleting chlorofluorocarbons. Open space around the structure will be maximized, with Urgent Care-West.” extensive landscaping consisting predominantly of –Sister Maria Goretti, in her prayer indigenous, drought-resistant trees and plants. at the groundbreaking ceremony

Bowers, Ellis & Watson, Architects, PA PA Architects, Ellis & Watson, Bowers, Sisters of Mercy Services 2007 Audited Financial Statement

REVENUES $13,847,192

Urgent Care Patient Revenue $7,022,078 (50.7%)

Investment Income $991,524 (7.2%)

Thrift Store / Other $176,877 (1.3%)

Mountain Health Services $1,525,365 (11%)

Addictions Recovery Revenue $4,131,348 (29.8%)

EXPENSES $13,488,650

Compensation & Benefits $8,350,859 (61.9%)

Bad Debt $747,545 (5.5%)

Depreciation / Amortization $223,664 (1.7%)

Interest $183,076 (1.4%)

Construction Costs $1,024,143 (7.6%)

Medical Supplies $977,893 (7.2%)

Other Operating Costs $47,512 (.4%)

Other Facility Costs $1,933,958 (14.3%)

During 2007, Sisters of Mercy Services Corporation generated patient service revenue from more than 130,000 patient visits. In addition, we began to realize savings from the automation of key functions and software upgrades. We took major steps to consolidate operations as well as enhance our facilities. We issued $4.4 million in tax-exempt bonds through the Medical Care Commission to build a new Urgent Care and Corporate Office, and we completed renovations at Urgent Care-South.

While creating a fiscally sound operation,we also provided more than $3 million in benefits to our community in 2007, including charity medical and mental health care, discounted care, physician contributions of time and non-reimbursed costs of treating Medicare and Medicaid patients. Looking ahead to 2008

Prevention Services listens to African American youth for solutions

During 2007, ARP/Phoenix Prevention Services received a seed grant from the Foundation for the Roman Catholic Diocese of Charlotte to provide a voice for Asheville’s African-American teens on the issues important to them. Using these funds, Prevention Services will host a series of youth focus groups in our community that, besides providing a method for African-American teens to express their concerns, will generate a strategy for action. This strategy will be submitted to all participant church groups and service agencies to enlist their involvement. In addition, various agencies will join to host a teen summit and identify other inter-denominational youth activities that could take place in the coming year.

“Since Prevention Services has traditionally relied on government funding to support our programs, we could only address in a limited way the deeper underlying spiritual issues in prevention and treatment. Now that we have the grant from the Charlotte Diocese Foundation, we are free to work directly with the faith-based community and bring spirituality and the values of the Sisters of Mercy front and center.” —George LeRoy, Director of Prevention Services at ARP/Phoenix

Partnership promotes health in growing Latino community

The Latino Health Promotion Partnership began in July 2007 when a group of five women representing ARP/Phoenix Prevention Services, Buncombe County Medical Society, the YWCA and the University of North Carolina-Asheville decided to address the lack of healthcare, prevention and treatment of substance abuse and mental illness within Buncombe County’s Latino community.

In September of 2007, the newly-created partnership received grant funding through the Buncombe County Medical Society to conduct a needs assessment and gap analysis of services for Latinos within Buncombe County. As a part of this process, service providers, physicians, interpreters and the Latino community were surveyed. The data from these surveys is being used by focus groups to identify needs and gaps in the local healthcare and behavioral health systems. These data will then be used as a springboard to write grants that serve the needs expressed in the survey and through the focus groups. Beyond that, however, the focus groups will also serve as a tool of empowerment and a place to begin building trust among a community that has The Latino Health Promotion Partnership works to increase healthcare and mental health services for Latinos in Buncombe County. Here, Ruby felt an increase in negative Reyes receives care for her newborn child, Nyomi Jastene, at Urgent attitudes, which have created Care-South from Nancy McDaniel. barriers to accessing services. Sister Pauline M. Clifford Vice President of Sisters Sisters of Mercy of Mercy of North Carolina Services Corporation Board of Directors

Chair Ron Gollberg, MD Jeffrey A. Gould, CPA Psychiatrist Gould, Killian CPA group Buncombe Co. Medical Examiner

Vice Chair Timothy C. Johnston W. Louis Bissette, Jr. President and CEO of Sisters President of McGuire, Wood of Mercy Services Corporation & Bissette, PA Ex-Officio Member of SOMSC Board

Secretary Vinson A. Parsons Ernest O. Peterson Retired CFO of Akzona, Inc. Vice President of Sisters of Mercy Services Corporation

Treasurer Sister Mary Jerome Spradley Robert A. Phillips President of Sisters of Mercy Retired, Volvo Construction of North Carolina Foundation Equipment

Sister Mary Michel Boulus M. Stickney Sisters of Mercy of North Carolina Senior Vice President of Insurance Service of Asheville, Inc.

William J. Callison, MD Michael J. Willett Retired, Blue Ridge Bone & Joint President of the Western Region Branch Bank & Trust Co.

Not pictured: Walter S. Gladding, Audit Committee only, and Sister Rosalind Picôt, participating non-Board member Leadership Team

David Bate, MD Medical Director Catherine McAuley of Sisters of Mercy Mercy Foundation Urgent Care, Inc. Board of Directors

Shana Duncan Chair Executive Director Samuel M. Stickney of Sisters of Mercy Senior Vice President of Insurance Service Urgent Care, Inc. of Asheville

Sister Maria Goretti Director of Mission James A. Christian and Values Director of Regional Services for Mountain Area Health Education Center (MAHEC)

Patricia A. Jackson Vice President and CFO

John N. Fleming Partner with McGuire, Wood & Bissette, PA

Timothy C. Johnston President and CEO

Adelaide D. Key Community Volunteer

Belinda Odom Executive Director of Human Resources

W. Michael Watson Partner with Bowers, Ellis & Watson Architects, PA Ernest O. Peterson Vice President

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