vision Creating America s healthiest community, together.

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1 st. charles health system At St. Charles Health System, we are building a culture of continuous improvement. It's about our community, our family, our friends and most of all, it's about our patients. Our caregivers are encouraged to look for ways to reduce waste and improve efficiency in their departments no matter what area of our hospitals or clinics they serve. By empowering those on the frontlines to make changes and try new ideas in the moment, we are ultimately improving the care we provide to our patients. That is, of course, the goal at the heart of all we do ensuring our patients receive high quality, compassionate care in each of our communities. Throughout the St. Charles Health System Annual Report you ll learn not only the facts and figures of what we do, but also some of our recent inspiring moments. Sincerely, Joe Sluka, President and CEO vision Creating America s healthiest community, together.

2 With four hospitals, more than 20 specialties and 225 employed medical providers, St. Charles Health System is the largest provider of health care in Central Oregon. We employ more than 3,886 caregivers in Deschutes, Crook and Jefferson counties making us the largest employer in the region and a key contributor to the local economy. system st. charles health system financial summary DAYS CASH ON HAND OPERATING MARGIN 6.2% 2.1% 4.1% 1.8% EXCESS MARGIN 10.3% 11.7% 9.1% 2.2% EMPLOYEES 3,886 3,482 3,285 2, operating expenses 2014 payer mix SALARIES $ 250,370 MEDICARE 50.2% MEDICAL SUPPLIES, DRUGS, OTHER $ 174,561 COMMERCIAL 26.2% BENEFITS $ 73,254 MEDICAID 21.0% PROFESSIONAL FEES $ 46,147 SELF PAY 2.6% DEPRECIATION AND INTEREST $ 37,777 BAD DEBT EXPENSE $ 18,865 We take our role in the community seriously and strive to provide the best possible care for our patients, competitive wages and benefits for our staff and facilities that offer a warm, healing environment. system hospital clinical statistics DISCHARGES , , , ,753 BIRTHS , , , ,990 INPATIENT CASES , , , ,090 OUTPATIENT CASES , , , ,929 EMERGENCY VISITS , , , ,026

3 In the fall of 2014, St. Charles Bend began a twoand-a-half-year project to remodel the third, fourth and fifth floors of the patient tower. The rooms on the third and fourth floors are nearly doubling in size. The added space makes for a better patient experience and more comfort for families. Electrical, plumbing and HVAC systems are being upgraded throughout the facility and the corridors have been redesigned with input from the nursing staff to improve workflows. Founded in 1918, St. Charles Bend is the largest of the St. Charles Health System hospitals with 256 licensed beds and more than 2,680 employees. The Bend facility has received national recognition for its high quality heart, stroke and cancer care. We provide the only Level II trauma center east of the Cascades in Oregon and are a tertiary referral center for the Central and Eastern Oregon regions. bend st. charles bend We are doing this project to improve our patient care experience and to expand the life of this hospital which truly is a community asset, said Rick Martin, vice president of construction and real estate for St. Charles. Essentially, in the end, we will have a new hospital that will last at least another 30 years. bend clinical statistics DISCHARGES , , , ,711 BIRTHS , , , ,663 INPATIENT CASES , , , ,905 OUTPATIENT CASES , , , ,986 EMERGENCY VISITS , , , ,239

4 The St. Charles Redmond team is the first in the health system to launch bedside reporting where nightshift nurses hand off patients to their dayshift counterparts by having a conversation next to the patient s bed. Patients can chime in, make corrections or ask questions so they are comfortable with the plan of care. St. Charles Redmond is a fully accredited, 48-bed hospital with more than 400 caregivers. Services include a Level III trauma center, intensive care, respiratory therapy, a Family Birthing Center and state-of-the art surgical suites. Thanks to many community contributions, St. Charles Redmond now has a healing redmond st. charles redmond Pam Steinke, chief nursing executive and vice president of quality for St. Charles Health System, spent 10 days as a patient, witnessing the reporting first-hand. Each and every hand-off was done at my bedside, Steinke said. It was one of the highlights of each day. garden outside of the cafeteria where patients, visitors and caregivers can spend quiet time. The garden includes a labyrinth and a water feature to bring peace and healing to all those who visit. redmond clinical statistics DISCHARGES , , ,256 BIRTHS INPATIENT CASES , ,056 OUTPATIENT CASES , , , ,213 EMERGENCY VISITS , , , ,972

5 madras st. charles madras In 2014, a St. Charles Family Care clinic opened in Madras and the health system reopened outpatient rehabilitation services. We are filling a need in the Madras and Warm Springs communities, specializing in services for patients with neurological impairments who can now receive physical, occupational and speech therapy services in one location, said Laurie McCall, rehabilitation manager. St. Charles Madras first opened its doors in 1967 as Mountain View Hospital and became part of St. Charles Health System in It is a critical access hospital with 25 licensed beds and 165 employees. The hospital provides surgical services, imaging, intensive care, a Family Birthing Center, medical and emergency care and an outpatient laboratory. The health system is in the process of designing a $16 million renovation project that will add more than 26,000 square feet to the Madras facility. The addition will include a new main entrance, a new combined operating room and emergency department, a new imaging department and laboratory. The existing infrastructure will also undergo upgrades. madras clinical statistics DISCHARGES BIRTHS INPATIENT CASES OUTPATIENT CASES EMERGENCY VISITS , ,025

6 St. Charles Health System recently completed construction of the brand new Prineville health care campus, which opened in September The facility includes a medical/surgical inpatient unit, an emergency department, two operating rooms, radiology, laboratory services and an integrated primary care clinic. St. Charles Prineville is a critical access hospital with 16 licensed beds and more than 170 employees in Prineville. The innovative new facility includes an outpatient clinic at the main entrance - sending a clear message that keeping people well and out of the hospital is more important to St. Charles than seeing them admitted. Pioneer Memorial Hospital, which was operated by St. Charles Health System under a lease prineville st. charles prineville "Our responsibility as a board was to make sure everybody in this community had access to good, quality health care. And that's what we've done," said Dan Schuette, chairman of the St. Charles Health System Board of Directors, about the decision to build the new hospital. "Prineville has an opportunity to be innovative and cutting edge beyond what the rest of the United States is doing. I'm really proud of that." agreement from 2008 through 2015, closed when the new facility opened. The hospital had been in operation in Crook County since 1950 and the community has a rich history of supporting health care in the region. prineville clinical statistics DISCHARGES INPATIENT CASES OUTPATIENT CASES EMERGENCY VISITS , , , ,636

7 medical group st. charles medical group Our providers are dedicated to an innovative approach to health care. We embrace the medicalhome model where patients have access to primary care, behavioral health specialists, nurse navigators, community health workers, pharmacists and more in our family care clinics which are located in Bend, Redmond, Sisters, Madras and Prineville. St. Charles offers comprehensive care, said Dr. Rupert Vallarta, a pediatrician who joined the team in We have a psychologist in house, a speech therapist in house. It really is comprehensive and holistic care. St. Charles Medical Group is the physician arm of St. Charles Health System and employs more than 440 caregivers in a variety of roles. Through the medical group, we employ physicians and medical providers in specialties including primary care, neonatology, pulmonology, oncology, general surgery, sleep medicine and more. We are opening a south Bend location soon and planning to open a clinic in La Pine in the near future. patient visits ADVANCED ILLNESS MANAGEMENT 1,533 BEHAVIORAL HEALTH 18,193 PSYCHIATRY 6,641 HEART AND LUNG SPECIALISTS 20,991 HOSPITALISTS IN BEND, REDMOND AND PRINEVILLE 27,167 IMMEDIATE CARE 13,419 INFECTIOUS DISEASE 749 MEDICAL ONCOLOGY 14,958 NEONATOLOGY 3,018 OB/GYN - REDMOND 5,568 PREOPERATIVE MEDICINE 735 PULMONOLOGY 7,861 FAMILY CARE IN BEND, REDMOND, PRINEVILLE, SISTERS AND MADRAS 88,412 SCHOOL-BASED CLINICS IN REDMOND AND SISTERS 68 SLEEP - BEND AND REDMOND 7,022 SURGICAL SPECIALISTS IN REDMOND AND PRINEVILLE 10,171

8 highlights A new, integrated St. Charles Cancer Center opened on the Bend campus providing all cancer services including chemotherapy, radiation oncology and integrative therapies in one location New St. Charles Health System President and CEO Joe Sluka takes the helm Dec. 1, 2014 The new St. Charles Prineville health care campus opens on Sept. 21, 2015 St. Charles Health System receives Get With The Guidelines - Stroke Silver Plus Quality Achievement Award Oregon Patient Safety Commission names Pioneer Memorial Hospital a Patient Safety Reporting Program Leading Participant highlights The Collaborative Alliance for Nursing Outcome (CALNOC) awards Pioneer Memorial Hospital and St. Charles Redmond patient safety awards for the prevention of critical care CLABSI and CAUTI St. Charles Madras breaks ground on a $16 million renovation and addition Dr. John Zachem, a St. Charles hospitalist, wins North Star Award for excellence St. Charles Health System receives Get With The Guidelines Heart Failure Gold-Plus Quality Achievement Award St. Charles Bend receives Advanced Certification as a Primary Stroke Center through 2016 Partnership for Patients recognizes St. Charles Health System for its work to reduce hospital-acquired conditions at all sites

9 community bene t As a nonprofit organization, St. Charles Health System, and the hospitals it operates including St. Charles Bend, St. Charles Redmond, St. Charles Madras and St. Charles Prineville, has an obligation to give back to the Central Oregon community. Through donations of time, services, supplies and dollars, annually St. Charles provides more than $100 million in benefits to patients, families and other nonprofit organizations in our region. We take our role as a community resource seriously and do our best to partner with other local businesses and organizations to ensure Central Oregonians have access to the health services they need when they need them most. We are proud to support local organizations including Kids in the Game, Grandma s House, Bethlehem Inn, Mountain Star Relief Nursery, Healthy Beginnings, Kids Center, Kids Club of Jefferson County, Crook County High School and more. Our community benefit program supports a healing environment and a healthier future for our friends and neighbors. community benefit 2014 community benefit BENEFIT TYPE TOTAL CHARITY CARE AT COST $8,614,914 MEDICAID SHORTFALL $49,983,972 MEDICARE SHORTFALL $55,564,307 OTHER PUBLIC PROGRAMS $6,313,777 TOTAL UN-REIMBURSED CARE $120,476,970 TOTAL COMMUNITY BENEFIT $2,778,913 TOTAL BENEFIT $123,255, activity totals SITE TOTAL ST. CHARLES BEND $1,863,358 ST. CHARLES REDMOND $444,482 ST. CHARLES MADRAS $267,991 PIONEER MEMORIAL HOSPITAL IN PRINEVILLLE $203,082 TOTAL COMMUNITY BENEFIT $2,778,913

10 2015 board of directors Dan Schuette, Chair Dennis Dempsey, D.Ed, Vice Chair Knute Buehler, MD Doug Downer Mack Gardner, LTC U.S. Army (Ret.) Steve Gordon, MD Megan Haase, FNP Bob Hakala, MD board of directors Hartwell Lin, MD Lauri Miller Brian O Hollaren, MD Tom Sayeg Greg Van Pelt

11 st. charles foundation Karin Thompson, an orthopedic nurse navigator at St. Charles Bend, received a foundation minigrant to start a walker-recycling program this past year. The idea came from caregivers who were discussing how to improve discharge times for total joint replacement patients. We would have patients waiting for hours for a walker before they could go home when that was really all that they needed, Thompson said. Thanks to the program, walkers are now available when total joint patients need them. foundation The mission of St. Charles Foundation is to support St. Charles Health System in the delivery and advancement of world-class health care in Central Oregon. We work with the community to develop and steward philanthropic resources to fund programs and capital projects that improve health, prevent disease, enhance quality of life and provide the highest quality care possible for all St. Charles patients now and in the future. Each year, St. Charles Foundation asks caregivers to apply for mini-grants of up to $5,000 to support programs that enhance patient care. Since 2011, more than $387,000 has been granted giving caregivers the ability to attend important trainings, buy equipment for their departments and even start programs that help with patient education. Overall, in 2014 generous donors contributed $3.76 million to St. Charles Foundation to advance patient care and improve the health of our community.

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