Catholic Health East
President's Letter













Robert V. Stanek
President and CEO
January, 2008

We can all look back on the year 2007 with feelings of pride and accomplishment.

It was a year of hard work. The system-wide ministry assessment process required a great deal of attention from many RHC and System office staff, but it was an extremely worthwhile process. Together with the finalization of our strategic and financial plans, these efforts ensure that planning efforts are truly in synch and integrated at both the System and local levels; this will go a long way to helping us realize the values and synergies inherent in "systemness."

It was a year of looking ahead. Mindful of the ever-changing health care environment and CHE's own health care delivery model for 2017, our Systems Future Task Force recommended a single future strategy with two concurrent paths: we will continue to actively pursue systemness and growth, while at the same time enter into exploratory discussions with other Catholic health systems about future collaborations and affiliations.

It was a year of cooperation. System office colleagues worked closely with RHC/JOA colleagues in the continued evolution of our system-wide Information Services, Supply Chain and Revenue Management efforts. There were many successful upgrades and "go-lives" thanks to our Meditech and Siemens teams, and our new system-wide customer service center was established. Our BPR-IT Lawson Support team efforts to control costs and improve operations through integrated ERP systems have made a difference. Focused efforts in Supply Chain and Revenue Management have streamlined systems and saved millions of dollars for our RHCs/JOAs.

It was a year of change. The CHE Sponsors Council welcomed all Hope Ministries members to its Council, emphasizing the importance of sponsorship and the laity joining together to strengthen our healing ministry.

It was a year of collaboration. Together with Ascension Health and Catholic Health Initiatives, Catholic Health East formed a multi-million dollar venture capital fund focused on making investments in the healthcare industry. This type of venture provides a Catholic health ministry like CHE the unique opportunity to collaborate with others to stimulate clinical innovations and improvements in quality and patient safety. And our Global Health Ministry collaborated closely with Catholic Health West to help that organization launch its first global outreach

It was a year of transition. We transferred ownership of Mercy Hospital of Pittsburgh to the University of Pittsburgh Medical Center; it will remain a Catholic facility, under the sponsorship of the Sisters of Mercy and involvement by the Diocese of Pittsburgh. We are also in the process of negotiating the transfer of Mercy Jeannette Hospital to Excela Health; we expect this process to be completed by mid-2008. And we are right in the middle of negotiations to assume ownership of Newark-based Cathedral Healthcare System, which includes Saint Michael's Medical Center.

It was a year of formation. The successful launch of CHE's Institute for Excellence in Ministry will assist leaders in both the knowledge and application of the faith tradition that grounds our ministry at Catholic Health East. And our ongoing leadership formation activities are honing the skills of tomorrow's System leaders.

It was a year of year of improvement. Our facilities continue to improve their patient safety and quality outcomes, and we are involved in the 5 Million Lives Campaign, a nationwide initiative to protect patients from five million incidents of medical harm over a two year (2007-2008) period.

It was a year of fiscal success. Despite the many challenges faced by our ministries, we were able to rebound from the sobering results of 2006 to meet our System budget in 2007!

Above all, it was a year of meeting the needs of the poor and underserved. While final numbers for 2007 are not yet available, we are on track to exceed the nearly $266 million in Community Benefit programs and services provided by our RHCs/JOAs in 2006. That amount has nearly doubled since the System's founding in 1998. And, at the very end of 2007, the System Office collaborated with our RHCs/JOAs to remember those whom most of society has forgotten: the homeless who died on the streets of our cities in 2007. The Homeless Memorial Day observed by the System office and throughout our RHCs and JOAs in late December was a moving tribute to the men, women and children who died, and a reminder to all that the ongoing tragedy of homelessness must be dealt with by our society.

Thanks to all of you throughout Catholic Health East, we continue to be a transforming, healing presence in the communities we are privileged to serve. I look forward to working with you to help meet the challenges that await us in 2008.

Sincerely yours,
Robert V. Stanek
President and Chief Executive Officer, Catholic Health East

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