Catholic Health East: President's Letter

	Robert V. Stanek President and CEO

March, 2006

We're all familiar with the genesis. In 1998, in an effort to strengthen their ministries, three Catholic health systems (Eastern Mercy Health System, Sisters of Providence Health System, and Allegany Health System) came together to form a single, united health care system—Catholic Health East.

After eight years, Catholic Health East is going strong. The System provides the structure for ongoing sponsorship, governance, and strategic direction of our health care organizations, while providing more cost effective access to programs, services and expertise, in order to enhance the positioning of sponsored facilities in their local communities.

We're still learning and growing as a System, and discovering new ways that our facilities can benefit and support each other. We've found that there really is strength in numbers, whether it means lobbying for more equitable federal funding, getting preferred pricing on equipment and supplies, or sharing expertise and experience that strengthens our organizations and benefits our patients.

One major advantage that CHE offers to its members facilities: the size, breadth, and geographic diversity of the Catholic Health East's group of health care organizations allows it to borrow money and finance debt at rates that individual facilities might not be able to secure on their own. With its leverage and borrowing power, and robust access to the financial markets, CHE saves millions of dollars each year for our RHCs. Here are some examples:

In 1998, CHE refinanced existing debt which resulted in annual RHC savings of over $17 million. CHE continues to look for opportunities for savings on existing debt while achieving the lowest possible cost on new debt.
RHCs participating in CHE's Interest Rate Reduction Program have to date realized collective savings of $25.1 million.
As a benefit of CHE membership, every facility has immediate access to CHE's $200 million line of credit, at extremely favorable rates…rates that individual RHCs might not have the ability to attain on their own.
In the near future, RHCs will benefit from a new debt structure—the master trust indenture that will be used to finance future capital acquisitions throughout CHE. This new program provides our facilities greater flexibility when incurring additional debt and, combined with other capital structure changes, is estimated to save CHE members a collective $15—30 million annually.

When you add up the savings that accrue to each organization, it is clear that RHCs benefit directly and tangibly from their association with Catholic Health East. Millions of dollars each year that would have been spent on higher interest rates and fees is instead allocated to programs, projects, technology, equipment and services that enhance quality, touch patients' lives and improve their health.

Our Sponsors were right on target. Health care providers across the nation face tremendous reimbursement, funding, and operational challenges. Faced with daunting obstacles, our Sponsors led the way in demonstrating how people and organizations of common faith, values and dedication can strengthen their ministries by working together. We're proud to work with you and our colleagues throughout CHE to help make a difference in the lives of so many…and to be a transforming, healing presence in the communities we serve.

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

Untitled 2010 President's Letter Archives:

January 2010

2009 President's Letter Archives:

2008 President's Letter Archives:

2007 President's Letter Archives :

2006 President's Letter Archives:

. . . . . . . . . . . . . . .

•	About Us
•	Mission and Values
•	History
•	Holy Memory, Faithful Action
•	Sponsorship Heritage
•	President's Welcome
•	Our Values in Practice