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© Copyright 2007. Catholic Healthcare West. All rights reserved. CATHOLIC HEALTHCARE WEST 2007 ANNUAL REPORT Each life. Every moment. 185 Berry Street, Suite 300, San Francisco, CA 94107 • (415) 438-5500 • chwHEALTH.org Cert no. SW-COC-1436 02 Mission, Vision, and Values 08 Letter from Our Sponsors, Chairperson, and President/CEO 14 Year in Review Excellence in Patient Care Our People Social Accountability and Community Benefit Funding Our Mission 38 Management Discussion and Analysis 39 Financial Summary 40 Leadership Profiles 45 Our Hospitals and Facilities CATHOLIC HEALTHCARE WEST 2007 ANNUAL REPORT PAGE 1 OUR MISSION Catholic Healthcare West and our Sponsoring Congregations are committed to furthering the healing ministry of Jesus. We dedicate our resources to: PAGE 2 EACH LIFE. EVERY MOMENT. delivering compassionate, high-quality, affordable health services; serving and advocating for our sisters and brothers who are poor and disenfranchised; and partnering with others in the community to improve the quality of life. CATHOLIC HEALTHCARE WEST 2007 ANNUAL REPORT PAGE 3 OUR VISION A growing and diversified health care ministry distinguished by excellent quality and committed to expanding access to those in need. PAGE 4 EACH LIFE. EVERY MOMENT. CATHOLIC HEALTHCARE WEST 2007 ANNUAL REPORT PAGE 5 OUR VALUES Catholic Healthcare West is committed to providing high-quality, affordable health care to the communities we serve. Above all else we value: PAGE 6 EACH LIFE. EVERY MOMENT. DIGNITY — Respecting the inherent value and worth of each person. COLLABORATION — Working together with people who support common values and vision to achieve shared goals. JUSTICE — Advocating for social change and acting in ways that promote respect for all persons and demonstrate compassion for our sisters and brothers who are powerless. STEWARDSHIP — Cultivating the resources entrusted to us to promote healing and wholeness. EXCELLENCE — Exceeding expectations through teamwork and innovation. CATHOLIC HEALTHCARE WEST 2007 ANNUAL REPORT PAGE 7 A Letter from Our Sponsors, Chairperson, and President/CEO DEAR FRIENDS, As we reflect on the 2007 fiscal year we are grateful for all we have to celebrate and are filled with optimism for the future. It was a year of remarkable successes and great achievements. Once again, the women and men of Catholic Healthcare West advanced our mission and lived our core values. The results of their commitment and dedication are detailed in this report, but underlying these words and numbers is a bigger story; it is the story of our greatest blessing –being witness to the mystery of healing, even in the most unexpected moments. As has always been the case, the strength of this organization is our employees who give of themselves to help others. Each day they blend faith with action, courage with compassion, and caring with excellence as they fulfill their daily work. We strive to treat each patient with compassion and dignity, to value each employee for his or her individual gifts and contributions, and to celebrate each community’s distinctiveness. We believe every moment is an opportunity for healing. We are pleased to report that Catholic Healthcare West is experiencing successes at every level of the organization. The quality of the care we provide is among the highest in the nation, our patients report high levels of satisfaction with the care and comfort they receive from our hands, and we ended the fiscal year with a net income of $891 million, which will be reinvested in our healing ministry. During the course of the year we also provided $922 million in charity care, community benefits, and unreimbursed patient care. Our capital investment of $563 million was invested in building and technology improvements at our hospitals and health clinics. In 2007 we had the pleasure of welcoming Saint Mary’s Regional Medical Center in Reno, Nevada into the CHW family. We also released the inaugural CHW Health Security Index,® a composite measure of the level of concern Americans have about their ability to manage their health and to access and afford quality health care. We have learned much from this signature tool. Concerns about affordability and quality are contributing to a national ranking of 66 out of a possible 100 in the Health Security Index, suggesting a mixed and troubling portrait of health security in the United States. The Index also confirmed the American public is growing restless with the lack of improvement in the U.S. health care system. More than eight out of ten U.S. adults believe health care is a fundamental right, and fully 72 percent believe the time has come for universal health care in America. These are critical times in our history. As individuals, as practitioners in the field of health care, and as citizens of our planet, we are faced daily with critical issues of social justice. In the coming years we will continue our role in the national dialogue concerning health care reform. Catholic Healthcare West will be an active and strong voice advocating for a health care system that embodies compassion, justice and quality. PAGE 8 EACH LIFE. EVERY MOMENT. (From left) Sr. Judy Rimbey, Chairperson, Corporate Members; Lloyd Dean, President/CEO; Adrienne Crowe, Chairperson, Board Of Directors We end this fiscal year with gratitude and begin a new year with hope. Thank you to all the caring people whom we are fortunate enough to stand beside in the service of our healing ministry. Sincerely, Sr. Judy Rimbey Chairperson Corporate Members CATHOLIC HEALTHCARE WEST 2007 ANNUAL REPORT Adrienne Crowe Chairperson Board of Directors Lloyd H. Dean President/CEO PAGE 9 PAGE 10 EACH LIFE. EVERY MOMENT. EVERY DAY THE PEOPLE OF CATHOLIC HEALTHCARE WEST WORK SIDE-BY-SIDE TO DELIVER EXCELLENT, COMPASSIONATE CARE that is focused on the physical, mental and spiritual needs of every patient in every moment. We strive to meet each patient with compassion and dignity, to value each employee for her or his individual gifts and contributions, and to celebrate each community’s unique gifts. And because every moment is an opportunity for healing, we consider this work a calling. In fiscal year 2007 the women and men of Catholic Healthcare West followed their calling to deliver excellent care with compassion to all in need. CATHOLIC HEALTHCARE WEST 2007 ANNUAL REPORT PAGE 11 HEALING PEOPLE Sister Nadiya Shamees is one of many women religious ministering to the emotional, spiritual, and physical needs of the people served by CHW hospitals. A native of Iraq, Sr. Nadiya joined the Adrian Dominican Sisters when she was 18 years old. (The Dominicans have ministered in Iraq since the late 1800s). In 2004, after earning a registered nursing degree, her order sent her to Italy and then on to the U.S. to deepen her experience of serving those in need. Today she is serving in the maternity unit at St. Rose Dominican Hospitals in Henderson, Nevada, where she says she most enjoys caring for new mothers. Quite naturally, however, she looks forward to more peaceful times when she can take all she’s learned in the Nevada desert back to her native desert to continue her ministry. PAGE 12 215020_Text5.indd 12 EACH LIFE. EVERY MOMENT. 11/29/07 9:21:42 PM CATHOLIC HEALTHCARE WEST 2007 ANNUAL REPORT PAGE 13 The Year in Review EXCELLENCE IN PATIENT CARE The care and safety of our patients is our highest priority. We consider it a privilege to work together with our patients to meet their unique physical, mental and spiritual needs. In fiscal year 2007 we continued our long tradition of continuous quality improvement, seeing that each patient receives the very best from us each day, and ensuring we are delivering excellent care to everyone who comes to us. MEASURING THE QUALITY OF OUR CARE The hospitals of Catholic Healthcare West are committed to providing the best, clinically proven care. That’s why we are advocates for greater transparency in clinical quality for hospitals across the nation. By making quality information more accessible to all, we believe we can raise the bar for care nationally. One such quality measurement program is the Hospital Quality Alliance (HQA), a public-private collaboration with participation from The Joint Commission, the Centers for Medicare and Medicaid Services, the American Hospital Association, and the National Quality Forum. The HQA presently measures treatment for four conditions – heart attack, congestive heart failure, pneumonia and surgical care – and reports on how often hospitals provide the treatments known to result in the best outcomes for most patients. CHW uses the “all or none” methodology advocated by the Institute for Healthcare Improvement to assess quality in the publicly-reported measures. In this model, for every condition being measured by HQA, a series of evidence-based treatments, therapies, or diagnostic tests –– known as a care bundle –– are recommended and have been proven to result in the best possible outcomes for patients. To meet the HQA standards, a patient must receive every one of the evidence-based therapies specified in the care bundle. We are pleased to report that Catholic Healthcare West hospitals continue to achieve high levels of performance, well above the national average in publicly-reported measures tracked by HQA. In fact, for treatment of congestive heart failure, Catholic Healthcare West’s clinical measures average ten percent above the national average. Likewise, care for pneumonia and heart attack are improving faster at Catholic Healthcare West hospitals than the national average. PAGE 14 215020_Text5.indd 14 EACH LIFE. EVERY MOMENT. 11/29/07 9:13:03 PM Congestive Heart Failure Community Acquired Pneumonia Acute Myocardial Infarction 100% 100% 100% 80 80 80 60 60 60 40 40 40 20 20 20 0 0 2005 2006 2007 0 2005 2006 CHW 2007 2005 2006 2007 National Median The charts above show the percent of patients who receive 100% of the evidence-based therapies within the “bundle,” described on page 14. PATIENT SATISFACTION As we continuously measure and improve the quality of care delivered at our hospitals, we are equally committed to ensuring that our patients feel they were well treated and had a positive experience with their care and their caregivers. By asking our patients about the quality of the service they received, we are better able to improve our care. During 2007 CHW’s patient satisfaction scores improved more than one and one half times as much as those of the top 10 percent of 1,500 hospitals in a national study. CHW’s performance increased 40 percent, to well above the national average and within a couple of percentiles of the top 30 percent in the nation. Our progress over the years has been consistently improving. In 2005, roughly 87 percent of our patients said they would return (if care were needed) to their Catholic Healthcare West hospital without hesitation, placing the system in the 13th percentile nationally. In 2007, 91 percent of patients say they would return without hesitation, an increase that now places Catholic Healthcare West at the 67th percentile nationally. CATHOLIC HEALTHCARE WEST 2007 ANNUAL REPORT We achieved these results through a number of innovative approaches to care. Most important is the dedication and commitment shown by all of our staff and physicians and especially by our nurses, who are providing excellent care every day. Over the last year, more than 3,000 of our nurses were introduced to four evidence-based practices that are known to improve patient satisfaction and increase the time nurses can spend with their patients. These strategies call for: Hourly Rounding: Making regular clinical rounds to patients every hour to check in on progress and to anticipate needs. Research has shown that hourly rounding by nurses reduces patient use of call lights by as much as 38 percent and reduces the number of patient falls by up to 50 percent. Individualized Care: Wipe-away boards are now in use in all patient rooms to help keep patients informed about their care plan as well as to communicate to hospital staff what is important to each patient. PAGE 15 The Year in Review Continued Bedside Shift Reporting: We have established a standardized process for communication between nurses during a shift change. Conducting this transfer in front of the patient allows our patients to be more involved in their care and improves patient safety and satisfaction. Discharge Phone Calls: We are also telephoning patients within 1-2 days of discharge to follow up and address any needs or questions they may have. MAKING BEST PRACTICES OUR EVERYDAY PRACTICES In today’s health care environment, where both demand and costs are rising, it is important to us that we deliver excellent care in a manner that is both compassionate and cost effective. Our mission calls us to deliver high-quality, affordable health care. And as we honor this mission, Catholic Healthcare West hospitals are working daily to improve the quality of our care while reducing costs. One way in which we are achieving this goal is by identifying care practices that are known to result in excellent outcomes for our patients and then reducing unnecessary variations from these best clinical practices. Our efforts in this regard have been highly successful, and we remain confident that our progress in the coming years also will show positive results. The quality of care delivered at Catholic Healthcare West hospitals continues to improve, as shown previously, and we are pleased to report that in fiscal year 2007 we saved more than $20 million by reducing unnecessary variation in clinical practices. By identifying those practices that result in the best outcomes for our patients and standardizing those practices across all our hospitals, we are working to make Catholic Healthcare West’s best practices our everyday practices. PAGE 16 EACH LIFE. EVERY MOMENT. UTILIZING TECHNOLOGY TO IMPROVE CARE Integral to the delivery of excellent and efficient care is ensuring our caregivers have the tools they need to deliver that care when they need it. CareConnect is an important way we are achieving this goal. Catholic Healthcare West is expecting to invest approximately $600 million in CareConnect, our clinical information system that is transforming our organization into a virtually paperless clinical environment. Through this initiative we are bringing computerized physician order entry, clinical decision support, adverse drug event rules, and bedside medical device interfaces to our hospitals, giving our clinicians more time to devote to patient care and ensuring best demonstrated clinical practices can be easily migrated across our network of caregivers. During 2007, CareConnect was installed at a number of hospitals, and we are pleased that our physicians and clinical teams are embracing this new technology. In fact, the physician adoption rate of this new technology at Catholic Healthcare West hospitals is more than 75 percent, which far exceeds the industry average for community hospitals across the U.S. In recognition of this outstanding work, Catholic Healthcare West physician leaders were honored with the team award from the Association of Medical Directors of Information Systems for excellence and outstanding achievement in applied medical informatics. CATHOLIC HEALTHCARE WEST 2007 ANNUAL REPORT 215020_Text5.indd 17 PAGE 17 11/29/07 9:13:35 PM EACH PATIENT Pamela Nyman, RN (left) stands with her former trauma patient, Israel Garcia, at California Hospital Medical center in Los Angeles, California. The level-two trauma center provides life saving care to more than 2,000 people every year. PAGE 18 215020_Text6.indd 18 EACH LIFE. EVERY MOMENT. 12/1/07 2:37:25 PM LOCATED IN THE HEART OF DOWNTOWN LOS ANGELES, CALIFORNIA HOSPITAL MEDICAL CENTER IS A VITAL PART OF ITS COMMUNITY. Residents and visitors of this vibrant urban hub are assured they have access to excellent, compassionate care around the clock by some of the finest medical providers in the field. Pamela Nyman, RN, is one of those skilled providers, in whose hands many of the area’s most critically injured residents receive care. As the trauma nurse coordinator, Nyman is part of a multi-disciplinary team that delivers excellent and compassionate care to people suffering from life-threatening injuries. “It’s amazing to come to work every day,” she says. “I never know what’s going to happen when I start my day, and then, at the end of my day, I feel so blessed to have been able to touch so many people in such a meaningful way – and I’m honored by how they have allowed me to be part of their lives.” At this 316-bed acute care hospital there are countless moments in which excellent medical treatment becomes a gateway to making a lasting difference in a person’s life. Nyman says these opportunities arise every day with every patient she sees. But one case in particular stands out for her. Earlier in the year, a young teenager arrived at the hospital’s trauma center with a gunshot wound to his abdomen. The young man survived his injuries and during his subsequent 33 days of recovery at the hospital, Nyman learned that her patient, Israel Garcia, was a 15-year-old runaway who had been living on some of the most dangerous streets in Los Angeles. Nyman’s daily presence was as much a healing for Israel as the medical care he received. “Pam was with me the whole time,” he says. “She answered all my questions and helped me understand how to care for myself.” With the information and care he received from his doctors and nurses, Israel designed a notebook that is helping him keep on track with his home care plan and began to take greater responsibility for his health and wellbeing. Today, Israel is back living at home again and is looking forward to going back to school. CATHOLIC HEALTHCARE WEST 2007 ANNUAL REPORT PAGE 19 A REVOLUTION IN CARE “Our elders do not live in our facility, we work in their home,” says Regina Wood-Glass, RN, director of nursing for the Mercy Care Center in Mt. Shasta. This philosophy is at the heart of what Wood-Glass calls a “revolution in elder care.” Where skilled nursing facilities once kept regimented schedules, here residents choose their lifestyle – they wake up naturally, eat when they’re hungry, and participate in group or individual activities as suits their daily preferences. This level of personalized care extends to their environment as well. Posted outside each resident’s room is a biography, which tells caregivers, visitors and fellow residents a little more about the life stories of the residents. “When you know that Mr. Smith was on the beach at Normandy, it changes how you interact,” Wood-Glass says. “We are here to affirm who our residents are while we attend to their physical comfort, spiritual beliefs, and psychological wellbeing.” PAGE 20 EACH LIFE. EVERY MOMENT. CATHOLIC HEALTHCARE WEST 2007 ANNUAL REPORT PAGE 21 The Year in Review OUR PEOPLE Our employees are the reason our healing ministry continues to succeed. The care and compassion delivered by the women and men of Catholic Healthcare West have established this organization as among the best in the nation, and we are committed to providing our employees with the tools and resources they need to grow. A GREAT PLACE TO WORK The hospitals of Catholic Healthcare West strive to create an environment where all our employees can excel. Because of our commitment to a positive workplace we regularly survey our employees to find out about their experiences and how they see our values integrated into their work environment. The results are shared with all employees and used to support our efforts to continuously improve the working environment at Catholic Healthcare West. At the end of the 2007 fiscal year, 81 percent of our employees reported that they feel they are part of an effective organization, exceeding our year-end goal of 72 percent. Further, 81 percent report that Catholic Healthcare West is accomplishing the mission of compassionate healing, advocacy and building healthier communities. In a number of our communities our employees have recognized their Catholic Healthcare West hospital as among the “Best Places to Work.” We are honored and humbled by this recognition, and we commit to our employees that we will continue to partner with them. We want our employees to feel valued for who they are, not just what they do. Providing a working environment where our people can live the values and deliver on the mission is the most important thing we can do as an employer; and we will continue our tradition of investing in the caring people who are the hearts and hands of our ministry. INVESTING IN CAREER GROWTH During the 2007 fiscal year, Catholic Healthcare West continued our tradition of investing in our employees through tuition reimbursement programs, employerpaid dependent health care coverage, continuing education courses and in-house educational programs. PAGE 22 EACH LIFE. EVERY MOMENT. We also are working with our labor unions on important training and education programs for our employees. Our nurse mentoring collaboration with the California Nurses Association is helping to train and prepare experienced nurses to serve as mentors for nurses just beginning their careers. Our work with the Service Employees International Union is progressing through the Joint Employer Education Fund, which is helping Catholic Healthcare West employees upgrade their skills, invest in their career growth, and make greater long-term contributions to our healing ministry. Catholic Healthcare West is additionally investing in the next generation of caregivers through a number of partnerships with local community colleges. Grant funds, forgivable loans and internship programs at several of our hospitals are helping to train registered nurses, respiratory therapists and radiology technicians. our hospitals are partnering with local community colleges to support nursing programs and to encourage more young people to consider a career in healthcare. RECOGNIZING EMPLOYEE CONTRIBUTIONS In recognition of the fact that our successes in 2007 would not be possible without our employees, we continued our program of sharing the organization’s success with those who contributed to it. In fiscal year 2007, every eligible full- and part-time employee received a cash award in acknowledgement of their contributions. In each of the last two years, Catholic Healthcare West has awarded more than $50 million to our employees through these important recognition programs. RECRUITING CARING PROFESSIONALS While the nationwide shortages in nursing, imaging and laboratory technicians, and pharmacists continue to challenge our hospitals, we can take pride in our success in recruiting highly trained professionals to care for our patients. In 2007, we hired more than 3,000 registered nurses, 500 lab and imaging technicians and nearly 100 pharmacists. Despite these solid numbers, our need for talent continues to grow. To help fill the gap, many of CATHOLIC HEALTHCARE WEST 2007 ANNUAL REPORT 215020_Text5.indd 23 PAGE 23 11/29/07 9:15:05 PM EACH EMPLOYEE Kate Rice, RN, BSN, sits with her patient, Tom Roberts, in the healing garden at Mercy Medical Center. Located at the base of the majestic Mount Shasta, the hospital offers residents of this rural community some of the most technologically advanced care available, and always with a compassionate touch. PAGE 24 EACH LIFE. EVERY MOMENT. “WHAT I LIKE MOST ABOUT BEING A NURSE IS THE PERSONAL FULFILLMENT OF MEETING PEOPLE’S NEEDS.” So remarked Kate Rice, RN, BSN, as she sat in the healing garden with Tom Roberts, one of the patients under her care, at Mercy Medical Center in Mt. Shasta, California. It was Roberts’ first trip outside his hospital bed since being admitted several days earlier. The potentially lethal blood clot that had formed in his lungs had, with the expert aid of his caregivers, stabilized, and he was able to enjoy the 5,000 square foot healing garden adorning the hospital grounds. “All the doctors and nurses here have been great,” he said. “They’ve really made sure I understand everything that’s happening to me every step of the way.” Mt. Shasta is a small, rural community, yet the range of medical services available here rivals some urban hospitals. With everything from cardiology and oncology to ophthalmology, pediatrics, nuclear medicine and orthopedics, the 25-bed hospital offers a full suite of specialty medical and surgical services, ensuring residents don’t have to travel far from home to receive excellent care. “I love working here,” Rice says of the hospital and of the opportunities she has as a nurse in both the emergency and intensive care units. “In the ER, I’m able to care for people of all ages and I usually get to follow my patients through the full course of treatment and send them home, hopefully feeling better. When I work in intensive care I can get to know my patients a little more fully and grow closer to their families.” The quality of care delivered at Mercy Medical Center, and indeed at all Catholic Healthcare West hospitals, is the direct result of caring, dedicated people like Kate Rice, and we are committed to helping our caregivers grow in their profession. At Mercy Medical Center, employees can take advantage of a forgivable loan program of $5,250 per year for higher education and tuition. The hospital also collaborates with the local community college, where Rice also happens to teach nursing, to support education and certification programs for the next generation of caregivers. CATHOLIC HEALTHCARE WEST 2007 ANNUAL REPORT PAGE 25 PAGE 26 EACH LIFE. EVERY MOMENT. A PRIVILEGE TO PROVIDE CARE It is the only full service, 24-hour emergency department in downtown Los Angeles. Each year, more than 5,500 people receive care at the hospital’s emergency room, and 2,000 receive treatment for traumatic injury at California Hospital Medical Center. The level-two trauma center opened its doors in 2004 with some of the nation’s leading surgeons, specialists, and nurses on staff around the clock to care for critically injured patients. Dr. Gudata Hinika, trauma director and chief of general surgery at the hospital, says the caliber of the staff and the technologically advanced facilities are made all the better because Catholic Healthcare West hospitals consider as paramount the unique needs of each patient, regardless of resources or stature. “We are privileged to be providing care at this hospital,” Dr. Hinika says. “We are a team of truly competent medical professionals and we all have a vision for what it means to deliver excellent care to our patients – a vision that is supported at every level of the hospital.” CATHOLIC HEALTHCARE WEST 2007 ANNUAL REPORT PAGE 27 The Year in Review SOCIAL ACCOUNTABILITY & COMMUNITY BENEFIT Catholic Healthcare West is committed to a ministry that meets or exceeds the ethical, legal, and business expectations our communities have of us. We hold ourselves accountable to our communities and to each other to achieve sustainable development of our social, economic, and environmental resources. Paramount in this work are our efforts to step outside hospital walls to partner with others and to advocate on behalf of those who are poor and disenfranchised. ADVOCATING FOR CHANGE Advocacy is an explicit component of Catholic Healthcare West’s mission and a significant expression of our ministry’s call to improve the quality of life. Through our work with local, state, and federal governments we are advocating for the establishment of a national health care system that is affordable and available to all. We also are integrating our mission and values into investment decisions, promoting corporate social responsibility and accountability on a range of issues that affect the broader health of the communities we serve. Some of our key achievements in these areas during 2007 include: CHW Health Security Index: In the United States, where access to health care is closely tied to employment, Catholic Healthcare West believes the health security of Americans should be part of the evaluation of consumer confidence and the economic outlook for the country. Further, Catholic Healthcare West has a strong commitment to ensuring that quality, compassionate, affordable health care services are available to all. Because of this commitment, we now are measuring Americans’ perceptions and beliefs about their ability to access healthcare and maintain their health. The Health Security Index provides a composite score of health security in America, which is calculated based on responses from 1,771 adults nationwide to a subset of questions asked during 20-minute interviews. Concerns about affordability and quality contribute to a national ranking of 66 out of a possible 100 in the Health Security Index, suggesting a mixed and troubling portrait of health security in the United States. Specifically, Americans are challenged by critical issues of affordability, access, and prevention. We will update the Health Security Index annually to track the nation’s perceptions on an ongoing basis. For more information about the Health Security Index, please visit www.healthsecurityindex.org. PAGE 28 EACH LIFE. EVERY MOMENT. Shareholder Advocacy: Catholic Healthcare West integrates our mission and values into investment decisions, promoting corporate social responsibility and accountability on a range of issues that impact the health of individuals, communities, and the planet. During the 2007 proxy season Catholic Healthcare West filed or co-filed proposals at 14 companies and engaged an additional 12 companies on corporate governance practices, social policies, and environmental practices. Seven of our proposals went to a shareholder vote and received enough support to meet SEC thresholds for returning to the proxy next year, and three were withdrawn when the companies agreed to take significant action to address shareholder concerns. Healthcare Reform: As a Catholic health ministry, it is both our responsibility and a moral imperative to take a leadership role in developing solutions to the problems plaguing our nation’s healthcare system. During the course of the 2007 fiscal year we were active in local, state and federal advocacy work towards the goal of systemic reform that combines quality and compassion for all. residents come in to the emergency room for treatment of acute illnesses that could have been prevented represents poor stewardship of our resources and less than optimal primary care for those most in need. In fiscal year 2007, our hospitals identified 213 programs for more comprehensive strategies to measure and track the impact of the programs on the communities served, with the intent of preventing unnecessary hospitalizations. Improving Culturally and Linguistically Competent Care: In 2003, Catholic Healthcare West was awarded a $250,000 grant from The California Endowment to improve language services for those who are monolingual or have limited English proficiency. Since that time, Catholic Healthcare West hospitals have been comprehensively assessed for compliance with minimum standards of care for language services. Additionally, in fiscal year 2007 we have standardized our telephonic interpreter services, allowing us to benchmark and monitor the use of appropriate language services. Pilot programs also were launched to test and train our bilingual staff who wish to serve as medical interpreters. COMMUNITY BENEFIT PROGRAMMING Catholic Healthcare West is proud to partner with others in the community to improve the quality of life. Our work with others in the communities we serve is a vital part of our healing mission. Community Benefit as a Science: In recent years, Catholic Healthcare West has worked to apply the same level of scientific rigor expected in the field of medicine to our work in community benefit programming. The central goal of our efforts is to move away from the model in which we simply enumerate our activities and accomplishments to a more strategic and evidence-based approach that ensures our resources are used in the wisest and most effective ways. With a primary focus on unmet health-related needs, we are striving to achieve measurable results from our intervention efforts; and we believe that waiting until community CATHOLIC HEALTHCARE WEST 2007 ANNUAL REPORT COMMUNITY GRANTS Since 1990, Catholic Healthcare West has made grant awards totaling nearly $25 million. Typically, grant awards are made to organizations that are partnering with others to meet the needs of their communities. In our 2007 fiscal year, our hospitals contributed $2.7 million in grant funds to their communities to make 202 grant awards. Our focus in this cycle was to support community based initiatives that provide chronic disease management and preventive services. Some examples include: Healthcare Connect – Phoenix, AZ: The CHW grant will be used to establish a medical home where eligible uninsured patients who suffer from chronic diseases can receive routine treatment and assistance in managing their chronic disease or condition. PAGE 29 The Year in Review Continued Cornerstone Compassion Center – San Bernardino, CA: Our grant to this organization will be used to fund the “Search Your Heart” program curriculum, developed and promoted by the American Heart Association as a primary health intervention. The program focuses on health promotion and disease prevention, thus reducing the long-term complications associated with diabetes, heart disease, and hypertension. Community Diabetes Education Services – Modesto, CA: Grant funding will support the Los ABC’s de la Diabetes program, which offers testing and educational classes to low-income residents in rural areas throughout Stanislaus County. COMMUNITY INVESTMENTS In addition to our Community Grants program we have invested more than $83 million in nonprofit community organizations since 1992. The Community Investments Program is designed to expand access to capital for those who historically have been underserved. Community Investments are below-market interest rate loans to nonprofit organizations that are working to improve the health and quality of life in their communities. During the 2007 fiscal year, Catholic Healthcare PAGE 30 West made $9.3 million in low- or no-interest loans and lines of credit to nonprofit community organizations, including: Community Housing Improvement Program – Red Bluff, CA: Loan funds will be used for the construction of 37 homes for lowincome families. Children’s Museum of Phoenix – Phoenix, AZ: CHW loan funds will be used to construct a children’s interactive museum. Green Connection Loan Pool – Arizona, Nevada, and California: CHW’s investment to the Local Initiatives Support Corporation will be used to finance affordable housing and community facilities that are utilizing sustainable building materials and methods. ECOLOGY Fiscal year 2007 marked Catholic Healthcare West’s 11th year of formal commitment to environmental conservation and protection. We are pleased that Catholic Healthcare West and six of our California hospitals received national recognition for our environmental stewardship from Hospitals for a Healthy Environment, an independent, nonprofit organization focused on improving healthcare’s environmental performance. Catholic Healthcare West is the EACH LIFE. EVERY MOMENT. only California hospital system to receive the 2007 Champions for Change Award, which honors environmental leadership in the hospital industry. Among our accomplishments this year: California Climate Action Registry: Catholic Healthcare West is the first healthcare system in the state to join the California Climate Action Registry. In fiscal year 2007 we began to measure and report our electric and natural gas consumption. This data will be certified by independent auditors and measured over time, allowing us to identify areas where we can be better stewards of the resources entrusted to us. Sustainable Agriculture: To support sustainable, local agriculture, Catholic Healthcare West has developed a Food & Nutrition Vision Statement that guides our purchasing. This statement is an expression of our intent to purchase foods that are produced in sustainable, environmentally friendly ways. In particular, we are working to eliminate the growth hormone rBGH from the milk supply, and we are implementing a systemwide education program about the ecological impacts of the food system. advocates for healthier alternatives to products and services in the marketplace and through the legislative process. Through the use of our market power, we challenged our medical product suppliers to develop products free of the phthalate DEHP, which is a chemical that is known to have harmful health affects. In 2006, we entered into a multi-year contract with B. Braun Medical Products, Inc. to supply these bags. Building on this success, we successfully advocated for the passage of the Safe Cosmetics bill, which strengthens consumer protections with regard to chemicals in cosmetics and most recently for the passage of a bill which requires all child care products and toys sold in California to children under the age of three to be free of phthalates. Finally, we supported efforts to pass the Global Warming bill, which is a landmark piece of legislation that places an economy-wide cap on global warming emissions. Advocating for Change: Catholic Healthcare West is mindful of its responsibility to the environment and works toward careful stewardship of natural resources. In concert with this commitment, Catholic Healthcare West CATHOLIC HEALTHCARE WEST 2007 ANNUAL REPORT PAGE 31 EACH COMMUNITY Tai chi instructor Stella Huang and her students flow through the forms of the ancient Chinese martial art, which has many known health benefits. The class is offered through the Barbara Greenspun WomensCare Center of Excellence at St. Rose Dominican Hospitals in Nevada. PAGE 32 EACH LIFE. EVERY MOMENT. STELLA HUANG GLIDES CONFIDENTLY THROUGH THE SERIES OF MOVEMENTS WITH NAMES LIKE WHITE CRANE SPREADS ITS WINGS AND FAIR LADY SHUTTLES LOOM. Her students gracefully follow behind her, perfecting their skill and benefiting from this ancient Chinese system of flowing movements and shifts in balance that strengthens the body, focuses the mind, and enlivens the spirit. The popular tai chi class is just one of numerous health and wellness offerings at the Barbara Greenspun WomensCare Center of Excellence at St. Rose Dominican Hospitals in Nevada. For Sandy Foster, the class was just what the doctor ordered. Literally. Her physician encouraged her to take up tai chi after she was diagnosed with osteoporosis. “The class helps me with my balance,” she says. “And it’s very peaceful. I always feel invigorated afterwards.” “We model our programming to meet what the women who live here tell us they want,” says Holly Lyman, director of the WomensCare Center. And for the last 10 years that’s what the WomensCare Center has done – providing quality, compassionate health education and preventive care programs to the communities surrounding Las Vegas. The WomensCare Center has become one of the most utilized health resources in the area, with more than 39,000 participants taking advantage of the wide variety of lowand no-cost classes, support groups, activities and events, a lending library and a health and wellness magazine. And with the rapid expansion of the Southwest Las Vegas area, a second WomensCare Center opened its doors in 2007. Now, thousands more can take advantage of nutrition counseling, tai chi classes, safety and injury prevention, disease management, classes in Spanish, pregnancy and childbirth education, parenting programs, and even a Breastfeeding Boutique. CATHOLIC HEALTHCARE WEST 2007 ANNUAL REPORT PAGE 33 PEOPLE CARING FOR PEOPLE Pharmacy Technician Zoren Bermudez says her colleagues at St. Rose Dominican Hospitals in Las Vegas, Nevada, are like a family to her. “St. Rose is the number one hospital in the valley and I can attest to how great it is to work here,” she says. “We are a team in every sense, and we all work together to help our patients get better.” When the hospital’s new San Martín Campus opened in November 2006, Zoren was responsible for setting up the state-of-the-art pharmacy, including establishing automated medication cabinets on every unit. The new pharmacy is equipped with some of the most technologically advanced resources available today, including a positive pressure clean room and specialized areas for preparing biologically sensitive drugs, such as chemotherapy medications. PAGE 34 EACH LIFE. EVERY MOMENT. CATHOLIC HEALTHCARE WEST 2007 ANNUAL REPORT PAGE 35 The Year in Review FUNDING OUR MISSION To ensure that quality, state-of-the-art health care is available to all who enter our doors, it is essential that we generate and maintain the resources necessary to invest in the future and fulfill our mission. As a not-for-profit organization dedicated to improving the quality of life, we reinvest all our operating and investment income in hospital improvements, technology enhancements, community health programs, and employee benefits. Our commitment to our mission also compels us to treat each person with dignity, which includes ensuring that all have access to health care. FINANCIAL STRENGTH Operating Income We are proud to report that Catholic Healthcare West ended fiscal year 2007 with a net income of $891 million for the year ended June 30, an increase of $107 million over fiscal year 2006 earnings excluding a one time adjustment for unrealized investment income. $300 250 200 150 100 50 0 -50 02 03 04 05 06 07 This financial strength allows us to provide excellent care to everyone who comes to us, regardless of their ability to pay. It also is a testament to what can be accomplished when we hold true to our mission and values, even in the face of rising numbers of people without healthcare insurance, growing costs, and inadequate government reimbursements. CHARITY CARE AND COMMUNITY BENEFIT Despite ongoing challenges in the healthcare industry, Catholic Healthcare West provided $501 million in community benefits and free care for the poor during the fiscal year, up from $465 million in 2006. This investment reflects our charity care, community grants and investments, and free primary care provided at our many community health clinics. Not included in this figure is our shortfall from Medicare, which totaled $421 million in fiscal year 2007, compared to $337 million in 2006. PAGE 36 EACH LIFE. EVERY MOMENT. CHW Charity Care & Community Benefit* $922 $803 $623 $567 $422 $386 *Includes traditional charity care and unpaid costs of certain government programs, as well as a variety of other programs for the poor and the broader community. For those families who come to our hospitals and are unable to pay for their care, Catholic Healthcare West has maintained our financial assistance program, which provides free and discounted care to uninsured families making up to 500 percent of the federal poverty level (or $103,250 for a family of four in 2007). And as we provide financial assistance to many of the Americans living without health care insurance, we also assist eligible uninsured patients through the enrollment process for government-funded insurance programs. We assisted more than 51,000 people through this process in fiscal year 2007. PHILANTHROPIC FOUNDATIONS The exemplary work of our many fundraising foundations is critical to sustaining our healing ministry. The 32 foundations that support Catholic Healthcare West hospitals raise funds that allow us to continue our tradition of caring, our ministry of healing, and our vision of excellence. In fiscal year 2007 these foundations received gifts from more than 40,000 individuals, philanthropies, and corporations totaling $89.7 million. We are very grateful that so many people chose to join us in our mission of healing by providing this generous and needed philanthropic support. These funds enable us to expand and invest in emergency departments, purchase state-of-the-art equipment, and provide advanced training and education for patients and caregivers. INVESTING IN OUR FACILITIES Funding our mission also means investing in our hospitals and health clinics, ensuring that state-of-the-art care remains available in our communities. During the fiscal year, we invested more than $563 million in capital improvements and technology, including the implementation of our CareConnect system at a number of hospitals, and the grand openings of two new facilities, the St. Rose Dominican Hospital, San Martín Campus in Nevada, and the 430,000 square foot, 144 bed tower housing the Barrow Neurological Institute at St. Joseph’s Hospital and Medical Center in Phoenix, Arizona. CATHOLIC HEALTHCARE WEST 2007 ANNUAL REPORT PAGE 37 Catholic Healthcare West 2007 MANAGEMENT DISCUSSION AND ANALYSIS For a seventh consecutive year Catholic Healthcare West demonstrated strong financial performance, benefiting from increased patient levels and improved managed care payment rates as well as from improved expense controls, particularly in the areas of worker and patient injuries. Catholic Healthcare West reported a gain from operations of $300 million for FY 2007 on revenues of $7.5 billion. Our continued success resulted in improved ratings by all three of the major bond rating agencies during the fiscal year. Catholic Healthcare West grew significantly as an organization during FY 2007. Mercy Gilbert Medical Center, the newly constructed facility in Gilbert, AZ, opened just before the year began and quickly became fully operational and reached capacity. The Barrow Neurological Institute tower on the St. Joseph’s Hospital and Medical Center campus in Phoenix, AZ was completed and opened soon after the year began, affording state-of-the-art facilities for neurosurgical patients locally and internationally. The newly constructed St. Rose Dominican Hospital – San Martin Campus in Las Vegas, NV opened in November 2006 and continues to expand and provide synergies with the other St. Rose campuses. In January 2007, Saint Mary’s Regional Medical Center in Reno, NV, became part of Catholic Healthcare West, bringing both a successful hospital and a health plan. In addition, during 2007 Catholic Healthcare West opened six new ambulatory imaging and surgery centers across Arizona, California and Nevada. During 2007, Catholic Healthcare West’s existing facilities in California, Arizona and Nevada continued their strong performance. In the aggregate, both inpatient and outpatient volumes increased. These strong, positive financial results are supported through continuing monthly operating reviews, a system of clear goals and metrics and a streamlined decision-making process. Our increased scrutiny on productivity measures continues to result in greater efficiencies and expense containment. Catholic Healthcare West’s ability to control expenses is evident in several areas with salaries and benefits and supplies as a percent of net patient and premium revenue constant or improved year over year. Significant reductions in self-insurance reserves for professional liability and workers’ compensation were also achieved as a result of effective loss prevention and improved claims management. Liquidity, consisting of cash and investments, continues to improve. At year end, balances increased to over $3.2 billion as a result of strong operating and investment performance. Investment income remained strong during 2007. Our year end investment reporting included a one-time unrealized gain of $341 million related to a change in accounting treatment, bringing total investment earnings reported on the income statement to $592 million for the year. Catholic Healthcare West’s cash and investments have been significant factors in achieving higher credit ratings, which enhance our ability to borrow as well as to directly fund our capital plans over the next decade. Catholic Healthcare West’s financial strength supports our unswerving commitment to serve those in need. Unsponsored community benefit, representing uncovered costs of programs and services provided to the poor and broader community, amounted to $501 million in FY 2007, which is approximately 7% of total operating expenses for the year. PAGE 38 EACH LIFE. EVERY MOMENT. 2007 ANNUAL FINANCIAL SUMMARY $ (in 000’s) RESULTS OF OPERATIONS $ 7,476,944 Revenue from Operations 6,708,175 Operating and Administrative Expenses 452,325 Depreciation and Interest 16,779 Loss on Early Extinguishment of Debt 7,177,279 Total Expenses Net Operating Income 299,665 Investment Income 591,593 Net Income $ 891,258 FINANCIAL POSITION Assets Current Assets $ 2,954,714 Assets Limited as to Use 4,080,444 Property and Equipment, Net 2,945,174 Assets Held for Sale Other Non-Current Assets Total Assets 24,825 515,120 $ 10,520,277 Liabilities and Net Assets Current Liabilities Other Non-Current Liabilities Long-Term Debt, Net of Current Portion $ 1,689,265 902,661 4,049,644 Total Liabilities 6,641,570 Net Assets (Mission Equity) 3,878,707 Total Liabilities and Net Assets $ 10,520,277 This is only a summary of certain financial information and is not a complete presentation of Catholic Healthcare West’s financial condition.The reader is referred to the complete consolidated financial statements of Catholic Healthcare West and Subordinate Corporations for fiscal year ending June 30, 2007, including the related notes, which can be found along with other, more recent, financial information online at www.chwHEALTH.org/financial_info. CATHOLIC HEALTHCARE WEST 2007 ANNUAL REPORT PAGE 39 1 2 3 4 6 7 5 CORPORATE MEMBERS Fiscal Year 2007 PAGE 40 EACH LIFE. EVERY MOMENT. 1. Sheila Browne, RSM President Sisters of Mercy of the Americas Auburn Regional Community Auburn, CA 5. Judy Rimbey, OP CHW Corporate Members Chair General Councilor/Administrator Adrian Dominican Sisters Adrian, MI 2. Judy Cannon, RSM CHW Corporate Members Secretary Institute Integration Team Sisters of Mercy of the Americas Burlingame Regional Community Burlingame, CA 6. Patricia Simpson, OP Prioress General Dominican Sisters of San Rafael San Rafael, CA 3. Lillian Anne Healy, CCVI Congregational Leader Sisters of Charity of the Incarnate Word Houston, TX 7. Susan Snyder, OP Prioress Dominican Sisters of Kenosha, Wisconsin Kenosha, WI 4. Patricia Rayburn, OSF CHW Corporate Members Vice Chair First Councilor Sisters of St. Francis of Penance and Christian Charity Redwood City, CA CATHOLIC HEALTHCARE WEST 2007 ANNUAL REPORT PAGE 41 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 BOARD OF DIRECTORS Fiscal Year 2007 PAGE 42 EACH LIFE. EVERY MOMENT. 1. Jarrett Anderson, Esq. CHW Board Vice Chair Partner Melby & Anderson Glendale, CA 2. Sheila Browne, RSM President Sisters of Mercy of the Americas Auburn Regional Community Auburn, CA 3. Judy Cannon, RSM CHW Corporate Members Secretary Institute Integration Team Sisters of Mercy of the Americas Burlingame Regional Community Burlingame, CA 4. Caretha Coleman Principal Coleman Consulting Los Altos Hills, CA 5. Adrienne Crowe CHW Board Chair Retired Banking Executive Sacramento, CA 6. Lloyd H. Dean President/CEO Catholic Healthcare West San Francisco, CA CATHOLIC HEALTHCARE WEST 2007 ANNUAL REPORT 7. Mark DeMichele Chairman & CEO Urban Realty Partners Coronado, CA 8. James Givens, CFA Retired Executive, Investment Counselor Glendale, CA 9. Tessie Guillermo CHW Board Secretary President/CEO Community Technology Foundation of California San Francisco, CA 10. Peter Hanelt, CPA President PGH Consulting, Inc. Lafayette, CA 11. Lillian Anne Healy, CCVI Congregational Leader Sisters of Charity of the Incarnate Word Houston, TX 12. Kenneth Mills, MD Private Practice Internal Medicine San Francisco, CA 13. Patricia Rayburn, OSF CHW Corporate Members Vice Chair First Councilor Sisters of St. Francis of Penance and Christian Charity Redwood City, CA 14. Judy Rimbey, OP CHW Corporate Members Chair General Councilor/Administrator Adrian Dominican Sisters Adrian, MI 15. José M. Santiago, MD Senior Vice President for Clinical Excellence Ascension Health St. Louis, MO 16. Patricia Simpson, OP Prioress General Dominican Sisters of San Rafael San Rafael, CA 17. Susan Snyder, OP Prioress Dominican Sisters of Kenosha, Wisconsin Kenosha, WI PAGE 43 EXECUTIVE MANAGEMENT TEAM Lloyd H. Dean President/CEO Bernita McTernan SVP, Sponsorship and Mission Integration Michael D. Blaszyk EVP/Chief Financial Officer Elizabeth Shih SVP/Chief Administrative Officer George Bo-Linn, MD SVP/Chief Medical Officer Ernest H. Urquhart SVP/Chief Human Resources Officer Derek F. Covert SVP/General Counsel John Wray SVP, Managed Care Michael Erne EVP/Chief Operating Officer Charles P. Francis SVP/Chief Strategy Officer OUR SPONSORS Sisters of Mercy of the Americas Auburn Regional Community Auburn, California Sisters of Mercy of the Americas Burlingame Regional Community Burlingame, California Adrian Dominican Sisters Adrian, Michigan Dominican Sisters of San Rafael San Rafael, California Dominican Sisters of Kenosha, Wisconsin Kenosha, Wisconsin Sisters of St. Francis of Penance and Christian Charity Redwood City, California Sisters of Charity of the Incarnate Word Houston, Texas PAGE 44 EACH LIFE. EVERY MOMENT. OUR HOSPITALS AND FACILITIES SYSTEM OFFICE Mark Twain Northridge Hospital St. Joseph’s Catholic Healthcare West St. Joseph’s Hospital Medical Center Behavioral Health Center 185 Berry Street, Suite 300 768 Mountain Ranch Road 18300 Roscoe Boulevard 2510 North California Street San Francisco, CA 94107 San Andreas, CA 95249 Northridge, CA 91328 Stockton, CA 95204 (415) 438-5500 (209) 754-3521 (818) 885-8500 (209) 461-2000 Mercy General Hospital Oak Valley Hospital St. Joseph’s Hospital ACUTE CARE FACILITIES 4001 “J” Street 350 South Oak Avenue and Medical Center Arroyo Grande Sacramento, CA 95819 Oakdale, CA 95361 350 West Thomas Road Community Hospital (916) 453-4545 (209) 847-3011 Phoenix, AZ 85013 Arroyo Grande, CA 93420 Mercy Gilbert Medical Center Saint Francis (805) 489-4261 3555 South Val Vista Drive Memorial Hospital St. Joseph’s Medical Center Gilbert, AZ 85296 900 Hyde Street 1800 North California Street (480) 728-8000 San Francisco, CA 94109 Stockton, CA 95204 (415) 353-6000 (209) 943-2000 (602) 406-3000 345 South Halcyon Road Bakersfield Memorial Hospital 420 34th Street Bakersfield, CA 93301 Mercy Hospital (661) 327-4647 2215 Truxtun Avenue Saint Mary’s St. Mary Medical Center Bakersfield, CA 93301 Regional Medical Center 1050 Linden Avenue (661) 632-5000 235 West Sixth Street Long Beach, CA 90813 Reno, NV 89503 (562) 491-9000 California Hospital Medical Center Mercy Hospital of Folsom Los Angeles, CA 90015 1650 Creekside Drive (213) 748-2411 Folsom, CA 95630 San Gabriel Valley 450 Stanyan Street (916) 983-7400 Medical Center San Francisco, CA 94117 438 West Las Tunas Drive (415) 668-1000 Chandler Regional St. Mary’s Medical Center Medical Center Mercy Medical Center Merced P.O. Box 1507 475 South Dobson Road Community Campus San Gabriel, CA 91778 St. Rose Dominican Hospitals Chandler, AZ 85224 301 East 13th Street (626) 289-5454 Rose de Lima Campus (480) 728-3000 Merced, CA 95340 (209) 385-7000 Community Hospital 102 East Lake Mead Drive Sequoia Hospital Henderson, NV 89015 170 Alameda de las Pulgas (702) 616-5000 of San Bernardino Mercy Medical Center Merced Redwood City, CA 94062 1805 Medical Center Drive Dominican Campus (650) 369-5811 San Bernardino, CA 92411 2740 “M” Street (909) 887-6333 Merced, CA 95340 Sierra Nevada 8280 West Warm Springs Road (209) 384-6444 Memorial Hospital Las Vegas, NV 89113 155 Glasson Way (702) 492-8000 Dominican Hospital Mercy Medical Center Grass Valley, CA 95945 Santa Cruz, CA 95065 Mt. Shasta (530) 274-6000 (831) 462-7700 914 Pine Street Siena Campus St. Bernardine 3001 St. Rose Parkway (530) 926-6111 Medical Center Henderson, NV 89052 2101 North Waterman Avenue (702) 616-5000 1911 Johnson Avenue Mercy Medical Center San Bernardino, CA 92404 San Luis Obispo, CA 93401 Redding (909) 883-8711 (805) 543-5353 2175 Rosaline Avenue Woodland Healthcare 1325 Cottonwood Street P.O. Box 496009 St. Elizabeth Woodland, CA 95695 Glendale Memorial Hospital Redding, CA 96049 Community Hospital (530) 662-3961 and Health Center (530) 225-6000 2550 Sister Mary Columba Drive Red Bluff, CA 96080 1420 South Central Avenue Glendale, CA 91204 Mercy San Juan (818) 502-1900 Medical Center (530) 529-8000 NON-ACUTE CARE AFFILIATION INFORMATION 6501 Coyle Avenue St. John’s CHW Medical Foundation Marian Medical Center Carmichael, CA 95608 Pleasant Valley Hospital 3160 Folsom Boulevard 1400 East Church Street (916) 537-5000 2309 Antonio Avenue Sacramento, CA 95816 Camarillo, CA 93010 (916) 733-3333 Santa Maria, CA 93454 (805) 739-3000 Mercy Southwest Hospital (805) 389-5800 400 Old River Road Marian Medical Center West Bakersfield, CA 93311 St. John’s Regional 505 East Plaza Drive (661) 663-6000 Medical Center 1600 North Rose Avenue Santa Maria, CA 93454 (805) 739-3100 Methodist Hospital Oxnard, CA 93030 7500 Hospital Drive (805) 988-2500 Sacramento, CA 95823 (916) 423-3000 EACH LIFE. EVERY MOMENT. St. Rose Dominican Hospitals Mt. Shasta, CA 96067 Medical Center The names, words, symbols, and graphics representing Catholic Healthcare West, CHW, and “Health Security Index” are the trademarks or registered trademarks of Catholic Healthcare West and protected by trademark laws of the U.S.A. and other countries. St. Rose Dominican Hospitals San Martín Campus 1555 Soquel Drive French Hospital COVER IMAGE: Gabriela Ortega, LVN, assists Jessica Hernandez with her new baby at California Hospital Medical Center in Los Angeles. With financial support from the hospital, Gabriela is on the way to earning her registered nursing degree. (775) 770-3000 1401 South Grand Avenue © Copyright 2007. Catholic Healthcare West. All rights reserved. CATHOLIC HEALTHCARE WEST 2007 ANNUAL REPORT Each life. Every moment. 185 Berry Street, Suite 300, San Francisco, CA 94107 • (415) 438-5500 • chwHEALTH.org Cert no. SW-COC-1436 OUR HOSPITALS AND FACILITIES SYSTEM OFFICE Mark Twain Northridge Hospital St. Joseph’s Catholic Healthcare West St. Joseph’s Hospital Medical Center Behavioral Health Center 185 Berry Street, Suite 300 768 Mountain Ranch Road 18300 Roscoe Boulevard 2510 North California Street San Francisco, CA 94107 San Andreas, CA 95249 Northridge, CA 91328 Stockton, CA 95204 (415) 438-5500 (209) 754-3521 (818) 885-8500 (209) 461-2000 Mercy General Hospital Oak Valley Hospital St. Joseph’s Hospital ACUTE CARE FACILITIES 4001 “J” Street 350 South Oak Avenue and Medical Center Arroyo Grande Sacramento, CA 95819 Oakdale, CA 95361 350 West Thomas Road Community Hospital (916) 453-4545 (209) 847-3011 Phoenix, AZ 85013 Arroyo Grande, CA 93420 Mercy Gilbert Medical Center Saint Francis (805) 489-4261 3555 South Val Vista Drive Memorial Hospital St. Joseph’s Medical Center Gilbert, AZ 85296 900 Hyde Street 1800 North California Street (480) 728-8000 San Francisco, CA 94109 Stockton, CA 95204 (415) 353-6000 (209) 943-2000 (602) 406-3000 345 South Halcyon Road Bakersfield Memorial Hospital 420 34th Street Bakersfield, CA 93301 Mercy Hospital (661) 327-4647 2215 Truxtun Avenue Saint Mary’s St. Mary Medical Center Bakersfield, CA 93301 Regional Medical Center 1050 Linden Avenue (661) 632-5000 235 West Sixth Street Long Beach, CA 90813 Reno, NV 89503 (562) 491-9000 California Hospital Medical Center Mercy Hospital of Folsom Los Angeles, CA 90015 1650 Creekside Drive (213) 748-2411 Folsom, CA 95630 San Gabriel Valley 450 Stanyan Street (916) 983-7400 Medical Center San Francisco, CA 94117 438 West Las Tunas Drive (415) 668-1000 Chandler Regional Mercy Medical Center Merced P.O. Box 1507 475 South Dobson Road Community Campus San Gabriel, CA 91778 St. Rose Dominican Hospitals Chandler, AZ 85224 301 East 13th Street (626) 289-5454 Rose de Lima Campus (480) 728-3000 Merced, CA 95340 Community Hospital PHOTOGRAPHY: KENT LACIN PHOTOGRAPHY DESIGN: DONOUGHE DESIGN Henderson, NV 89015 170 Alameda de las Pulgas (702) 616-5000 Mercy Medical Center Merced Redwood City, CA 94062 1805 Medical Center Drive Dominican Campus (650) 369-5811 San Bernardino, CA 92411 2740 “M” Street (909) 887-6333 Merced, CA 95340 Sierra Nevada 8280 West Warm Springs Road (209) 384-6444 Memorial Hospital Las Vegas, NV 89113 155 Glasson Way (702) 492-8000 St. Rose Dominican Hospitals San Martín Campus 1555 Soquel Drive Mercy Medical Center Grass Valley, CA 95945 Santa Cruz, CA 95065 Mt. Shasta (530) 274-6000 (831) 462-7700 914 Pine Street French Hospital EACH LIFE. EVERY MOMENT. 102 East Lake Mead Drive Sequoia Hospital of San Bernardino Dominican Hospital The names, words, symbols, and graphics representing Catholic Healthcare West, CHW, and “Health Security Index” are the trademarks or registered trademarks of Catholic Healthcare West and protected by trademark laws of the U.S.A. and other countries. St. Mary’s Medical Center Medical Center (209) 385-7000 COVER IMAGE: Gabriela Ortega, LVN, assists Jessica Hernandez with her new baby at California Hospital Medical Center in Los Angeles. With financial support from the hospital, Gabriela is on the way to earning her registered nursing degree. (775) 770-3000 1401 South Grand Avenue St. Rose Dominican Hospitals Siena Campus Mt. Shasta, CA 96067 St. Bernardine 3001 St. Rose Parkway (530) 926-6111 Medical Center Henderson, NV 89052 2101 North Waterman Avenue (702) 616-5000 Medical Center 1911 Johnson Avenue Mercy Medical Center San Bernardino, CA 92404 San Luis Obispo, CA 93401 Redding (909) 883-8711 (805) 543-5353 2175 Rosaline Avenue Woodland Healthcare 1325 Cottonwood Street P.O. Box 496009 St. Elizabeth Woodland, CA 95695 Glendale Memorial Hospital Redding, CA 96049 Community Hospital (530) 662-3961 and Health Center (530) 225-6000 2550 Sister Mary Columba Drive Red Bluff, CA 96080 1420 South Central Avenue Glendale, CA 91204 Mercy San Juan (818) 502-1900 Medical Center (530) 529-8000 NON-ACUTE CARE AFFILIATION INFORMATION 6501 Coyle Avenue St. John’s CHW Medical Foundation Marian Medical Center Carmichael, CA 95608 Pleasant Valley Hospital 3160 Folsom Boulevard 1400 East Church Street (916) 537-5000 2309 Antonio Avenue Sacramento, CA 95816 Camarillo, CA 93010 (916) 733-3333 Santa Maria, CA 93454 (805) 739-3000 Mercy Southwest Hospital (805) 389-5800 400 Old River Road Marian Medical Center West Bakersfield, CA 93311 St. John’s Regional 505 East Plaza Drive (661) 663-6000 Medical Center 1600 North Rose Avenue Santa Maria, CA 93454 (805) 739-3100 Methodist Hospital Oxnard, CA 93030 7500 Hospital Drive (805) 988-2500 Sacramento, CA 95823 (916) 423-3000