Phelps Memorial Hospital Center Report to the Community 2013

MOVINGAHEAD

FORWARDLOOKING

A New Era in Phelps Historyince its opening in 1955, Phelps Memorial Hospital Center has become uniquely successful at integrating the latest medical procedures with well-established practices. This legacy

continues as Phelps fulfills its bold new vision that will enhance existing facilities and create new spaces that will be home to the best that medicine has to offer.

This fall, Phelps will open its new SurgiCenter. The facility is the only inpatient and outpatient operating suite in New York State located in a medical office building. The spacious operating rooms were designed to accommodate changing technology for decades to come. It is one of only two surgical suites in the State to integrate the extraordinary STERIS RealView Visual Workflow Management Software. STERIS RealView provides a system for keeping all SurgiCenter medical staff and, most importantly, family members, informed on a patient’s status in real-time throughout the surgical experience.

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My Phelps experience…was absolutely amazing. The nurses, counselors, group sessions and environment couldn’t have been better for my recovery. Thank you!“ ”

SurgiCenter lobby – Opening Fall 2014

Construction of SurgiCenter under way

Additionally, Phelps will soon begin construction on a conveniently located and expanded MRI facility. With an outside entrance, the suite will have convenient patient access and will feature two MRI machines, facilitating scheduling and availability. Concurrently, the hospital will begin work on a stunning new main lobby that will feature a weather-protected patient drop-off area.

This year the hospital will embark on the most ambitious project in its history – the new West Wing Expansion – a patient tower designed to house the latest medical advances for delivering quality patient care, today and in the future. The tower will feature 52 state-of-the-art private patient care rooms. All of these projects will transform the way Phelps delivers healthcare for generations to come.

Our future MRI facility – expanded and convenient

Our design for a new lobby and patient drop-off areaSpecial thanks to BBL Construction Services, LLC for their design and craftsmanship of these facilities.

Community Support for Phelps’ Future Soars in 2013he strategic vision at Phelps is about more than bricks and mortar. It signifies the hospital’s commitment to provide compassionate and exceptional care.

Philanthropic support is critical to the success of these projects. It will help significantly in reducing the need for financing and the accumulation of debt, thereby enabling Phelps to maintain its strong financial position, to continue to respond to changes in the healthcare industry and, most importantly, to meet community needs for generations to come.

In 2013, Phelps’ Board of Directors authorized a fundraising planning study. Through in-person strategic discussions, focus groups and e-survey responses an initial goal of $25 million was established for The Campaign for Phelps Memorial Hospital Center. Since then, we have begun the formation of a Campaign Cabinet and are thrilled to report that we have already raised over $4.5 million toward the West Wing project. It is our honor to acknowledge both the Campaign Cabinet and those individuals who have already pledged their significant support to the project.

Campaign Cabinet (in formation)Aubrey Hawes – Co-ChairRichard Peress, MD – Co-ChairSean Dugan – Board ChairArthur Cohen Jim GoldsmithKatherine Mackie Paul MazzilliTed McGrath

Campaign DonorsAnonymous (2) Pablito and Linda AlmiraDaniel and Tracey BlumBarbara and Bard BunaesBarbara and Earle Ellefsen Sylvia and Aubrey HawesHelen and Fred HerlitzHarry Jacobs, Jr.Robert Lane and Janine GuercioBarbara and Ted McGrathEllen and William Melvin, Jr.Mary and Andrew MerrymanPhelps AuxiliaryKeith SafianJudith M. and Michael D. Sullivan

The Anson Phelps Society was created to honor the spirit of Anson Phelps, an extraordinary individual and philanthropist for whom our hospital was named.

Anson Phelps Society members are a special group of people who, by including Phelps in their estate plans, help to ensure our mission to provide outstanding healthcare to our community – today and in the future.

You can make a lasting statement and support the important work of Phelps Memorial Hospital Center in many different ways. To learn more about the Anson Phelps Society or to let us know you have included Phelps in your estate plans, please contact Lisa Koch, Director of Development, at (914) 366-3108 or by email at lkoch@pmhc.us.

Special thanks to Katherine Weber for her bequest to Phelps and to Harry Jacobs, Jr. for his continued enthusiastic support as an Anson Phelps Society member.

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“Phelps has provided me with exceptional care over the years. I’m honored to support all they do by including a bequest to the hospital in my estate plans.” –Harry A. Jacobs, Jr.

Without all of your care, my husband probably would not be alive today. Thank you, Thank you!“ ”

Leaving a Legacy

Phelps ranked among top hospitals in patient satisfactionPatient satisfaction is a critical measure of how we serve our community. Through patient surveys administered by an independent auditor, we are able to see how well we do our job and identify areas for improvement.

We are thrilled to report that in 2013 Phelps received its highest scores ever in patient satisfaction. Overall, Phelps was ranked in the 84th percentile nationally and 95th percentile in New York State. An incredible 99% of patients surveyed would recommend Phelps to a friend or family member.

We are glad so many of you have had a good experience at Phelps and appreciate you recommending us to your family and friends!

Record-Breaking Year for Phelps Special Events n 2013, fundraising events to benefit Phelps Memorial Hospital Center, including the 26th Annual Champagne Ball, 10th Anniversary Phelps

Classic, and Annual Wine Tasting grossed a record breaking $821,000. The Champagne Ball, which honored 27-year Chief Nursing Officer Lucy Engelhardt,

Keith Safian, Lucy Engelhardt, Rich Sinni; 2013 Champagne Ball

Barbara and Ted McGrath; 2013 Champagne Ball

John and Connie Curran; 2013 Champagne Ball

Reina Sinni, Donna Goldsmith, Pamela Terracciano, Mary Beth Merryman; 2013 President’s Reception

John Robbins, MD, Keith Safian, Bill Melvin; 2013 Phelps Classic

…thank you to the entire staff in the Orthopedic and Rehab Unit. It is they and their professionalism who give Phelps Memorial Hospital its good name and fine reputation.

They truly exemplify ‘Excellent Care Every Time’!

Save the Dates: June 9, 2014 Phelps Classic Sleepy Hollow Country Club Scarborough, NY

November 8, 2014 Phelps 27th Annual Champagne Ball Trump National Golf Club Briarcliff Manor, NY

March 22, 2015 Phelps Food and Wine Fest Trump National Golf Club Briarcliff Manor, NY

raised more than $565,000 including $215,000 for the purchase of STERIS RealView Visual Workflow Management Software for our brand new SurgiCenter! Looking ahead, the 2014 Champagne Ball will honor Dr. Lawrence Faltz who recently retired from Phelps after 20 years as Chief Medical Officer.

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Ellen and Bill Melvin; 2013 Phelps Classic

Letter from Board Chair and President & CEO

Dear Friends,

Welcome to our new Report to the Community. We are pleased to share with you highlights from the past year as well as a preview of exciting activities planned for 2014.

We first want to thank all the members of our community for your extraordinary support – in 2013, a record $6.3 million was raised to advance patient care at Phelps. Your generous gifts and enthusiastic participation in our events ensure that Phelps is well positioned in this new healthcare era.

There are many impressive activities to report on. The new SurgiCenter, opening this fall, will feature the largest and most advanced operating rooms in Westchester County.

Additionally, we are starting construction on a con-veniently located and expanded MRI facility and a stunning new hospital lobby that will feature a weather-protected patient drop-off area.

Longer term plans include the most ambitious project in the hospital’s history – the new West Wing Expansion – a patient tower that will feature 52 state-of-the-art private patient care rooms. All of these projects will transform the way Phelps delivers healthcare for generations to come.

We invite you to partner with us as we “look forward and move ahead” and to support healthcare in your community with a gift to Phelps. You can use the enclosed envelope or visit www.phelpshospital.org to make your gift.

Thank you for making Phelps an important part of your health and your life and for supporting your community hospital.

Best wishes for a healthy, enjoyable spring.

Sincerely,

Richard J. Sinni Keith F. Safian, FACHEChair, Board of Directors President and CEO

Richard J. Sinni

Keith F. Safian

Phelps Memorial Hospital Center Years Ended December 31, 2013, 2012 and 2011

2013 2012 2011Unrestricted revenue and (Unaudited) other support: Net patient service revenue $212,759,000 $203,358,000 $195,416,000 Other revenue 10,894,000 12,058,000 7,752,000

Total revenue and other support 223,653,000 215,416,000 203,168,000 Expenses: Salaries and employee benefits 141,005,000 132,036,000 122,435,000 Supplies and expenses 67,821,000 64,842,000 61,866,000 Depreciation 10,838,000 10,675,000 10,554,000 Interest 968,000 1,074,000 1,207,000 Total expenses 220,632,000 208,627,000 196,062,000 Income from operations 3,021,000 6,789,000 7,106,000 Nonoperating gains: 1,769,000 1,591,000 1,604,000 Excess of revenue and other support over expenses 4,790,000 8,380,000 8,710,000 Other changes in unrestricted net assets: Change in net unrealized gains (losses) on other than trading securities 1,198,000 615,000 122,000 Net assets released from restrictions for purchase of equipment 717,000 179,000 211,000 Increase in unrestricted net assets $6,705,000 $9,174,000 $9,043,000 Charity Care (for uninsured and $26,214,000 $24,400,000 $20,600,000 under-insured patients) and community benefits (maintaining services to meet community needs, despite cost to the hospital)

Financials

Fundraising Revenue Dollars Raised

$7,000,000

$6,000,000

$5,000,000

$4,000,000

$3,000,000

$2,000,000

$1,000,000

0

$6,325,000

$2,182,000$1,961,000$1,899,000

20112010 20132012

Development Revenue Sources 2013 Total Raised: $6,325,000

Grants$108,000 (2%)

Events$821,000 (13%)

Annual Support$1,614,000 (25%)

Capital Campaign$3,782,000 (60%)

Board of Directors Richard J. Sinni ChairSean F.X. Dugan Vice ChairAndrew Merryman Vice ChairRebecca Srole TreasurerHsin Cheng Chao, MD SecretaryKeith F. Safian, FACHE President & CEO

Betty Albertson John Barnes Bard E. Bunaes Sanda Carniciu, MD David W. Coulam Mark Frederich Jim Goldsmith Aubrey Hawes Christy Joyce, MD Glenn Kaufman Fred Mascia Kenneth Miller Richard Peress, MD Diane Potter Louis J. Poulin Louis Wachtel Russell Watson Franklin H. Zimmerman, MD

Development CommitteeKatherine J. Mackie Co-ChairJim Goldsmith Co-ChairBard E. Bunaes Arthur Cohen Mark Frederich Lianne Hales-Dugan Aubrey Hawes Lisina Hoch Paul Mazzilli Ted McGrath William O. Melvin, Jr. Andrew Merryman Caryl Plunkett Pamela Terracciano Drusilla van Hengel Craig Zalvan, MD Keith Safian, FACHE

Medical Staff OfficersFranklin Zimmerman, MD PresidentStere Carniciu, MD Vice PresidentFrank Foto, MD SecretaryJay Weinberger, MD Treasurer

Medical BoardCharles Abate, MDDavid Kauvar, MDArno Housman, MDAvraham Merav, MDL. Mark Russakoff, MD

Senior ManagementKeith F. Safian, FACHE President and CEOLawrence L. Faltz, MD Senior Vice President for Medical Affairs and Chief Medical OfficerDaniel Blum Senior Vice PresidentVincent DeSantis, CPA Vice President, Finance and CFORichard Becker, MD Vice President, Physician AdministratorLeonard B. Fogel Vice President, Business DevelopmentJanet Goldberg, RN, BSN Assistant Vice President, Behavioral Health and NursingRobert R. Lane Vice President, DevelopmentJake Maijala Vice President, Human ResourcesMary McDermott, MSN, RN Vice President, Nursing ServicesKerry L. Pisano Vice President, Support ServicesWilliam Reifer Vice President, Quality and Case Management

Development OfficeMarissa Coratti Special Events ManagerLisa Koch Director of DevelopmentRobert R. Lane Vice President, DevelopmentKatherine Porter Development Information SpecialistLori Raia Thomas Grants Officer

Phelps News – 2013Phelps is the Only Hospital in the State Approved to use Vector Blood Test – enables a physician to define the activity of Rheumatoid Arthritis and offers a more scientific basis for treatment by helping to identify when to start, increase and/or stop treatment.

Three Phelps Physicians Honored as Westchester’s First “Doctors of Distinction” •Lawrence Faltz, MD, MACP, Senior VP for medical affairs and chief medical officer at Phelps since 1994, received the Leadership in Medical Advocacy Award. •Robert Raniolo, MD, chief of general surgery, received the Community Service Award. •Avraham Merav, MD, chief of thoracic surgery and medical director of surgical services, received the Lifetime Achievement Award.

Press Ganey Survey Places Phelps in 99th Percentile for Employee Satisfaction among NY State Hospitals – The survey was conducted by Press Ganey, a recognized leader in performance improvement, which partners with more than 10,000 healthcare organizations worldwide, including 50% of all U.S. hospitals.

For the fourth consecutive year, the Phelps Stroke Center has received the Get With the Guidelines – Stroke “Gold Plus” Quality Achievement Award – the highest level award for stroke care given by the American Heart/ American Stroke Associations.

Phelps is the first hospital in Hudson Valley to offer cataract surgery with LenSx Laser.

Robin’s Nest, Phelps’ child care center, celebrated its $1.4 million, 3,840-square-foot-expansion, which will allow the center to provide care for an additional 41 children.

Phelps’ Cardiac Rehabilitation Program was certified by the American Association of Cardiovascular and Pulmonary Rehabilitation (AACVPR), recognizing it as a leader in the field of cardiovascular and pulmonary rehabilitation and offering the most advanced practices available.

Phelps’ Cancer Program was granted a three-year accreditation with commendation by the Commission on Cancer (CoC) of the American College of Surgeons. Fewer than 1,500 facilities across the U.S. have gained accreditation of their cancer programs.

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