ANNUAL REPORT 2008 Celebrating the Hebrew Home’s 40th Year in Rockville 1969 was more than just a time of flower power. CHARLES E. SMITH Charles E. Smith Life Communities takes its name from a visionary leader in the Washington Jewish community. Charles E. Smith (1901-1995) was a persuasive philanthropist who generously supported the most vulnerable in our society. As president of the Hebrew Home from 1959–1962, he laid the groundwork for the Home’s 1969 move to its current Rockville campus. Recognizing the need for continued philanthropic support and the emerging continuum of care on our campus, his son and son-in-law, Robert H. Smith and Robert P. Kogod, and their families made an extraordinary $12 million investment in our future. Our name, adopted in May 2006, unites our entities, sustains both the legacy and leadership of Charles E. Smith and honors the memory of a remarkable leader. OUR MISSION The mission of the Charles E. Smith Life Communities is to fulfill Jewish values by providing a continuum of quality serv- ices for elders and their families, and affirm our commitment to the dignity of each individual. OUR VISION The Charles E. Smith Life Communities will be viewed and supported by our community as the leader and provider of choice in delivering innovative and compassionate services for elders. Our services and programs are open to all in the community. One Small Step, One Giant Leap: Our 40th Year in Rockville n May 20, 1969, 40 years ago to the date of our The services we provide range from outpatient 99th annual meeting, the DC National Guard, medical care focusing on geriatric care, independent with two buses, an ambulance, drivers, dispatch- living, assisted living, and rehabilitation with an out- O ers and medical corpsmen, helped move 170 standing track record in recovery and improvement, elderly residents from Spring Road to their new home to quality nursing home care 24/7/365. in Rockville as a “civic action support mission.” The In 1969, there were real fears that in moving those Red Cross lent two jitneys, and staff and volunteers 170 elderly residents, someone might perish en route, accompanied the residents. A detailed loading and that residents would become frightened, confused and arriving schedule facilitated the move, which was disoriented. Those challenges were overcome with the completed between 8:45 a.m. and 12:20 p.m. assistance of volunteers, board, community resources Each resident’s belongings were packed and tagged and staff, all working together. Today, as well, we face with a color-coded card that indicated the location of the numerous challenges: resident’s new room. George Hurwitz, president of the • The impact of dwindling government reimbursements Hebrew Home, and Samuel Roberts, executive director, • An increased need for charity care oversaw the move. Aunt Minnie Goldsmith, age 98, one • Baby boomers’ higher expectations regarding care of the founders of the Home, was one of several distin- and services guished residents who made the move into the new • The “tsunami” of aging in our population Hebrew Home that day. News reports noted that the • An uncertain economy new Wasserman Residence had air conditioning and an • Rising costs of providing care to an increasingly innovative indoor shopping arcade. The new Hebrew frail population. Home of Greater Washington was modern and spacious, Now, as 40 years ago, our success still relies on the and could accommodate 260 elderly residents. same teamwork among volunteers, board, donors, com- For the title of this year’s annual report, we have munity resources and dedicated staff, all working togeth- paraphrased the famous quote from another 1969 mile- er. We are confident that the strengths that got us to this stone, the first moon landing. But in truth, there was point are still our strengths, and will enable us to meet nothing small about the step from Spring Road in the challenges we face and continue in our mission of Washington to Rockville. Charles E. Smith, with vision care and caring. and persuasiveness, answered questions and overcame reluctance, convincing an entire community to purchase this 22-acre plot of land in Rockville known as Stock’s Nursery. He spearheaded zoning approval and capital funding needed to move three community service organ- izations, the Hebrew Home, Jewish Community Center and Jewish Social Service Agency, out of obsolescent buildings in the city to suburban Maryland. Through the generosity of George and Janice Wasserman, the Hebrew Home’s new residence acquired its name. It was this crucial move that opened a new vista for us, and paved the way for us to become the comprehen- sive provider we are today. Without this move, we could Warren R. Slavin, not have grown to fill a now 31-acre campus with five Hanita Schreiber, President/CEO residences serving more than 1,000 seniors each day. Chair Annual Report 2008 |1 2008 At a Glance At Charles E. Smith Life Communities At the Hebrew Home On Our Campus Days of care provided in the Residences . 5 nursing home: 182,722 Acres . 30.76 On-staff physicians . 8 Private pay Meals served . 852,057 Medicaid 18% Therapy treatments . 51,541 69% Physical therapy . .27,053 Occupational therapy . .19,641 Speech therapy . .4,847 Hebrew Home of Greater Washington Number of beds . 556 Residents admitted . 1,022 Medicare Occupancy rate, year end . 89.8% 11% Days of care provided . .182,722 Insurance/Evercare Hirsh Health Center 2% Patient visits . 3,735 Home Care Solutions, LLC (In partnership with Augustine Home Health Care, Inc.) Sources of revenue for Hours of personal care services . .115,050 nursing home resident care Independence Plus visits . .12,864 Days of 24-hour live-in assistance . .437 Medicaid 55% Landow House Medicare Number of apartments . 60 19% Occupancy rate, year end . 97% Revitz House Number of apartments . 249 Occupancy rate, year end . 97% Private pay 17% Ancillary services Ring House 6% Number of apartments . 250 Occupancy rate, year end . 98% Insurance/Evercare Medical Services, Hebrew Home 3% Consultant physicians . .31 Dental clinic visits . .351 Comparing these two charts shows that nearly 70 percent of the nursing care provided at the Hebrew Home is for residents on Medicaid, yet only about half the income received is from Medicaid reimbursements. This gap creates the significant shortfall shown on our financial summary. It also should be noted that Medicare payments support short-stay residents in our rehabilitation program, where care is more costly due to the intensive therapy, medication and nursing they receive. 2|The Charles E. Smith Life Communities 2008 Financial Highlights Sources of revenue and expenses incurred in providing quality resident care and services in independent living, assisted living, rehabilitation and long-term care at Charles E. Smith Life Communities Revenue Gross revenue from nursing home care and services . .$67,307,748 Gross revenue from senior living services . 16,714,675 Shortfall from government reimbursements that do not cover the actual cost of nursing home care . .(15,051,274) Charity care provided to individuals unable to afford services in the nursing home and provided through subsidized housing in senior living . .(3,744,743) Net revenue derived from resident care and services . .65,226,406 Expenses Direct care and related services . .67,785,844 Capital purchases for building maintenance, improvement and equipment . .3,369,249 Total expenses required to meet the needs of serving more than 1,000 residents . .71,155,093 Shortfall from system operations . .(5,928,687) Contributions from annual giving and from endowment income applied to support our mission . .5,928,687 To continue our mission to deliver quality care and services to all residents, to purchase needed equipment, to maintain and enhance our facilities, and to plan effectively for the future, we rely on and are grateful for contributions from friends in the community. Annual Report 2008 |3 Charles E. Smith Life Communities Leadership Governors Board of Directors 2009-2011 Edward Aaronson Irving P. Cohen Jack W. Abel Jeffrey S. Distenfeld Leonard I. Abel Arthur J. Dykes Martin K. Alloy Robert Fleshner Louis Aronson Robert Freishtat Evelyn Auerbach Barbara Hurwitz Beth A. Berk Officers 2009-2011 Karen Rindner Clarence A. Berman Gary Saffitz Sanford Z. Berman Chair Robert S. Selzer Stuart A. Bernstein David A. Samuels Douglas W. Sherman Ruth H. Binn Marc F. Solomon Arthur Blitz Chair-Elect Jeffrey S. Yentis Selwyn Bottinick Andrew S. Friedlander Howard Braun Trustees Committee Gail Brenner Immediate Past Chair 2008-2011 Joel V. Bressler Hanita Schreiber David A. Ruben, Chair Joseph M. Brodecki Irving P. Cohen David C. Bubes President/CEO Morris Dweck Beth S. Burke Warren R. Slavin Arthur J. Dykes Howard Cohen Sanford L. Guritzky Jodi Cohen Vice Chair, Finance/Treasurer Donald S. Paris Randi-Lynn Cohen Harry A. Harrison Ivan B. Silverman Myron Coonin Jeffrey S. Yentis Alvin Dobbin Vice Chair, Development Alan Drew Steven A. Widdes Landow House/Ring House Board Dr. Seymour Dubroff 2009-2011 Kathy Dweck Vice Chair, Quality Improvement Alan M. Freeman, President Rena Dweck Judith Rae Peres Dr. Joanne G. Crantz Jay Eichberg David D. Freishtat Abraham H. Eisen Vice Chair, Strategic Planning Russell C. Minkoff Babs Eisman Donald M. Kaplan Jay B. Olshonsky Harold Evans Vivian L. Pollock Morton A. Faller Secretary Carlyn Ring Charles Feinberg Joseph B. Hoffman Marc F. Solomon Andee Forster Arlene Friedlander Trustees Chair Revitz House Board Stephen H. Friedlander David A. Ruben 2009-2011 Honorable Brian E. Frosh David D. Freishtat, President Keith Funger Landow House/Ring House President Ian Joseph Morton Funger Alan M. Freeman Milton Moskowitz Alma Gildenhorn Vivian L. Pollock Howard Goldklang Revitz House President Isaac Reitberger Greta Goldman David D. Freishtat Aaron Rulnick Capt.