1999 - Memorial Health System

Memorial Health System, Inc.

During 1999, Memorial
Hospital and Health System
faced several challenges
head-on. Like a ship in a storm,
Memorial experienced highs and lows
during the year. But we weren’t the
only one being tossed about. The entire healthcare
industry is adjusting to new waves of change every day.
For several years, many hospitals across the country
have had to close due to an inability to keep pace with
reduced healthcare reimbursements from Medicare,
Medicaid and commercial payers. Even billion-dollar
companies that own hospitals around the United
States have felt the sting, too — bigger isn’t
necessarily better these days.
It’s a time when being a community-owned hospital
has had its advantages. Instead of relying on guidance
from a corporate office hundreds of miles away,
Memorial Hospital and Health System looks to its local,
citizen-owner board members. Responsive, aware and
poised to take on challenges, Memorial’s board members
initiate and carry out innovative solutions in today’s
troubled healthcare waters. And during a time of immense
financial pressures, Memorial’s boards have maintained
local accountability and cost-effectiveness.
Underneath the roiling waters of modern-day
healthcare, however, there’s still a strong, flourishing
undercurrent at Memorial — our mission to improving
the quality of life for the people of our community. That
commitment is carried out every day through the physicians
and staff throughout Memorial Hospital and Health
System. The physical growth of Memorial’s facilities
are another testament to our commitment. In 1999,
Memorial saw the realization of a major building project,
Memorial Leighton HealthPlex; continued construction on
100 Navarre Place; and broke ground on the new South
Pavilion. Maybe stronger than bricks and mortar are the
Community Health Enhancement Initiatives Memorial is
involved with, spanning four counties in Indiana and
Michigan.
In renewing our course for the coming years, it’s helpful to
reflect on where we’ve traveled. Here, then, is a look back
on 1999 and the events that marked the way.
1

Memorial Hospital Named one of
the Top 100 Orthopedic Hospitals
in the Country
In November, Memorial Hospital of
South Bend was recognized by
HCIA, Inc. and
The Health Network.com for excellence
in the provision of orthopedic
care to patients and as a recipient of
the 1999 100 Top Orthopedic
Hospitals Award. The hospital’s
recognition for clinical excellence
and efficient delivery of care was
published in Modern Healthcare
magazine and in USA Today.
The ranking was based on the
following six measures of clinical quality practices, operations,
and financial management:
• Mortality rate, risk-adjusted for severity of illness
• Complications rate, risk-adjusted for severity of illness
• Count of unique patients receiving orthopedic services
• Average length of stay at the hospital, adjusted
for illness
• Cost per patient, adjusted for illness severity and
local wage differences
• Percentage of patients who came from and were
discharged to home
Memorial Health System
Receives the Living the
Vision Award
from the American Hospital
Association
Presented by the American Hospital
Association, the Living the Vision
award honors individuals or organizations
that carry out AHA’s vision of a
society of healthy communities where
all individuals reach their highest
potential for health.
2
But Memorial couldn’t do it alone — much of our
success in creating healthier communities is due to the
community partnerships forged and fostered in the
process. While many healthcare organizations are cutting
back on their community initiatives due to financial pressures,
Memorial strongly believes that partnering and
investing in the community is a great long-term strategy.
If you’d like to know more about Memorial’s healthy
community initiatives, log on to Memorial’s Web site at
www.qualityoflife.org. There you’ll find learning histories
about programs such as Congregational Nursing, African
American Women In Touch, Sex Can Wait and the
Community Benefit Fund, which designates 10 percent of
Memorial’s bottom line toward community initiatives.
Memorial Hospital
of South Bend
Memorial Hospital continued to attain high levels of
patient satisfaction in 1999, improving to the top 12% in
the nation. The Emergency/Trauma Center had its best
scores in 10 years, reaching its highest recommendation
score in the fourth quarter. Memorial Hospital’s inpatient
recommendation score topped its 1999 goal; pain control
reached the 98th percentile as did the inpatient nursing
scores. Physical Therapy, Respiratory Care and Lactation
Services are all in the 99th percentile.
Also in 1999, Memorial Regional Rehabilitation
Center (MRRC) and Comprehensive Rehabilitation Unit
received the maximum three-year accreditation from
CARF, the Rehabilitation Accreditation Commission. The
programs that received the accreditation were
Comprehensive Inpatient Rehabilitation, Brain Injury
Rehabilitation and Outpatient Medical Rehabilitation.
Memorial Leighton HealthPlex
The opening of Memorial Leighton HealthPlex created
waves in downtown South Bend. The HealthPlex, part of
the public-private partnership of Leighton Plaza, houses
Memorial Outpatient Therapy Services, the Sports

Medicine Institute,
Memorial Health &
Lifestyle Center, and
HealthWorks! Kids’
Museum (which
opened in February
2000). Hailed as a big
step forward in the
revitalization of downtown
South Bend, the HealthPlex is anchored by Leighton
Plaza, a modern-day town square dedicated to the beneficent
donors of the project through the Memorial Health
Foundation, Judd and Mary Morris Leighton.
Memorial Outpatient Therapy Services
Easier access to care, more spacious works areas and a
convenient location
are all amenities of
Memorial Outpatient
Therapy Services at
the HealthPlex.
Patients needing
physical or occupational
therapy due to
brain injuries, strokes,
surgeries, or other
physical impairments can receive the most progressive
care from a well-trained, experienced staff to help them
achieve their highest potential.
The Sports Medicine Institute
Specializing in sports medicine, the physicians at the
Institute are primary care doctors from Memorial Hospital
and Saint Joseph’s Regional Medical Center who strive to
help athletes of all ages and abilities to achieve their peak
performance.
The South Bend Primary Care Sports Medicine
Fellowship is a collaborative teaching program offered
through the Sports Medicine Institute. The program
accepts only two graduates from family practice residencies
each year. The University of Notre Dame has joined in
the education of these physicians by allowing them to work
with the sports medicine doctors and athletes at the university.
The Sunburst Marathon is one of the many
sporting events at which the Sports Medicine Institute
provides sports medicine coverage. Last year marked the
16th year of the event, which includes athletic events
starting at the
College Football Hall
of Fame and finishing
on the 50-yard
line of the Stadium
at the University of
Notre Dame.
Proceeds from
Sunburst benefit
The Boys & Girls
Club of St. Joseph
County, The Center for the Homeless and the Notre Dame
Alumni Association’s Community Service Projects. More
than 3,000 people competed in the 1999 Sunburst
Marathon, 10K, 5K and racewalk events.
Memorial Health & Lifestyle Center
The new Health & Lifestyle Center opened in October at
Memorial Leighton HealthPlex. Spacious,
well-appointed and modern, the
Health & Lifestyle Center has
attracted over one thousand
new members seeking to
improve their fitness level.
The medically based fitness
center is the only one in the
area to offer FitLinxx, a
computerized system that
tracks each member’s progress
on cardiovascular and strengthbuilding
equipment. A full aerobics
schedule, lap pool, virtual golf, and an
indoor walking/jogging track are just a few of the features
that keep current members coming back — and new ones
eager to join.
3

Remodeling of the 9th Floor
The 9th Floor of the Hospital was remodeled and
equipped as a telemetry unit for medical and surgical
patients who have a need for cardiac monitoring. The
level of care provided on the floor is intermediate — a
level between critical care and the medical/surgical level.
Four care zones, as on other floors of the Hospital, facilitate
quick responses to patients’ needs.
New Angiography Suite
in Radiology Department
In September 1999, Memorial Hospital
acquired a state-of-the-art diagnostic
and interventional angiography system
which can examine any blood vessel in
the body. According to Gerard Duprat,
MD, Interventional Radiologist, the GE
Advantx LCA+ has improved the way
he practices medicine. The equipment can produce digital,
three-dimensional images of blood vessels to provide
physicians with the most accurate, detailed view of the
damaged or diseased area — even views inside the
vessels. Patient comfort
and safety, quicker procedure
times, and much
more accurate diagnoses
are all benefits of
this new technology.
Memorial
Health
Memorial
Memorial Health System
Last year brought many changes and improvements for
Memorial Health System. Its scope of services was broadened
with the announced affiliation with Sturgis Hospital
in Michigan. The affiliation provides collaboration in clinical
and hospital relationships as well as support for medical
groups affiliated with Sturgis.
Memorial Managed Care Services
1999 was a strong year for Community Health Alliance
(CHA), a physician hospital organization (PHO) jointly
owned by Michiana Medical Associates and Memorial
Health System. CHA surpassed its goal of new enrollees
last year with a 25% increase in membership. Community
Health Alliance spans 19 counties in Indiana and
Michigan, offering the services of more than 30 hospitals
and 2,000 physicians to insurers and their customers.
Memorial Medical Group
Memorial Medical Group manages physician practices in
South Bend, Lakeville, Goshen, LaPorte, Mishawaka,
Milford and Plymouth. In 1999, the Physician Governance
Council was reorganized and, as a result, physicians are
now elected to the council as representatives from MMG.
Decisions on policies and procedures are reviewed and
determined by the Governance Council. This system of
decision making has allowed the physicians to guide their
practices and ensure the appropriateness of operational
policies.
Other highlights at Memorial Medical Group include:
• The opening of a new Med-Point at LaPorte Medical
Group, providing care to patients seven days a week
from 9 a.m. to 9 p.m. for minor medical emergencies.
• The relocation of Dugdale Family Medical Group to
Generation Drive, affording more space for the three
family physicians in the practice.
4

• A new Hospitalist Program began in 1999 with the
addition of Arthur Schroeder, MD, and, later in the year,
Mark J. McGillem, MD. The physicians oversee the care
of patients in the hospital from admission to discharge
and do not maintain practices of their own.
Memorial Home Care
Keeping pace alongside Memorial Hospital and its
challenges with reimbursements in 1999, Memorial Home
Care also responded to reimbursement reductions last
year. Consolidation of operations and improving efficiencies
in all areas were necessary, but patient care was not
sacrificed. In fact, Memorial Home Care implemented a
clinical outcomes reporting system for nursing patients in
1999. The system serves as an internal benchmark for the
division and complies with HCFA and JCAHO standards.
Despite the financial pressures in healthcare last year,
Memorial Home Care experienced record levels of growth
for each of its product lines — Family Pharmacy, Staffing
Services, and Equipment and Supplies. While Memorial
Home Care’s strength grew locally, it’s reach extended
regionally. Home Care entered into an agreement with
Sturgis Hospital in Michigan to provide home medical
equipment for that hospital’s Hospice patients. Recently
licensed in Michigan for pharmaceutical sales, Memorial
Home Care will now be able to provide home IV services
to patients in that state.
Behavioral Health Services
In 1999, Memorial Medical Group began offering
outpatient behavioral health services at Main Street
Medical Group, Ireland Road Medical Group and LaPorte
Medical Group. The behavioral health team, comprised of
a psychiatrist and three psychotherapists, provides diagnostic,
counseling and medication treatments and can
refer patients for partial hospital and inpatient services.
Also in 1999, Memorial made the difficult choice, but
with thoughtful decision making, to close the Pathways
Center for Behavioral Health after 25 years of operation at
Memorial Hospital. The medical professionals who dedicated
their lives to caring for patients in this challenging
yet rewarding field are truly heroes — their contributions
to Memorial are immeasurable. As a result of the Pathways
closure, Memorial forged a new partnership with Madison
Center and Hospital, allowing the best options for those
patients needing psychiatric or chemical dependency care.
Additionally, a special Behavioral Health Nurse Team was
created at Memorial to ensure a smooth transition to
Madison Center. The team provides a resource within
Memorial for any patients with psychiatric diagnoses or
drug or alcohol withdrawal.
Community Health
Enhancement Initiatives
CHIP
Through the state-administered
Hoosier Healthwise
program called the
Children’s Health Insurance
Program (CHIP), Memorial
Hospital and Health System
enrolled 761 children and
pregnant women in 1999.
CHIP provides free health
insurance to children under
age 19 and pregnant women who meet certain financial
guidelines. Memorial Health System offers CHIP enrollment
at 16 sites in South Bend and one site in Mishawaka.
Play, Exploration and Developmental
Support (PEDS) Program
Through the PEDS partnership between Memorial Health
System and The Center for the Homeless, 38 children ages
0 to 3 received developmental screening at the Center to
help provide them with a healthy beginning to life.
5

African American Women In Touch (WIT)
More than 800 women received mammograms during
1999 through WIT. Continued outreach for the program
included setting up booths in local laundromats to
encourage women to have a mammogram and providing
assistance to establish minority breast cancer screening
programs in Kalamazoo, Michigan; Gary, Indiana; and
Elgin, Illinois.
Programs of the Office of Minority Health
Nestled among the people it serves, the Office of Minority
Health provides health and wellness programming for
South Bend Housing Authority residents and the community.
Some of the office’s accomplishments for 1999
included:
• Establishment of the Pressure Point program to
assess and monitor blood pressure.
• Tuberculosis testing for residents in conjunction
with the St. Joseph County Health Department
• Flu and pneumonia vaccines for seniors with the
Indiana State Department of Health and Indiana
Air Force
• Hosting the third annual Sickle Cell Conference
• Providing information and screenings for 2,680
people through the North Central Indiana
Comprehensive Sickle Cell Initiative.
School-Based Prevention
Initiatives
Sexual abstinence education was
presented to all sixth grade students
in the South Bend and Mishawaka school
systems. Known as S.O.A.R. (Self, Others And
Respect), the program prepares students to resist
the peer pressure they may face when they begin
middle school. S.O.A.R. is a sister program to the
successful Postponing Sexual Involvement program
and Baby Think It Over, a voluntary 7th
grade program. In LaPorte County, Memorial funded a
counselor at the Juvenile Justice Center to provide
Postponing Sexual Involvement and Baby Think It Over
interventions for high-risk youth.
Male responsibility
became the focus of the new
media campaign for Healthy
Babies. Despite the efforts of
the public service announcements,
billboards and bus
cards, calls to the Healthy
Babies helpline remained low. In addition, better access to
care and expanded Medicaid coverage have assisted adolescent,
minority and low-income women in engaging in
early prenatal care, further reducing the need for the
helpline. In early 2000, Healthy Babies stakeholders were
asked to shift their energies toward a new lead screening
initiative called “Get the Lead Out.” More about the new
program will be announced as details become finalized.
B.A.B.E. (Beds & Britches, Etc.)
B.A.B.E. collects coupons from expectant parents received
through local healthcare providers in exchange for baby
formula, clothes, cribs and other items at the B.A.B.E.
stores. In 1999, B.A.B.E. helped Elkhart General Hospital
open its own B.A.B.E. store location. Nearly 1,600 visits
were made to B.A.B.E. in 1999 with more than 3,400
items purchased.
WIC (Women, Infants & Children)
WIC is a supplemental nutrition program for pregnant
women and young children. In 1999, St. Joseph County WIC
led the state in Farmer’s Market voucher dollar amounts
redeemed at a rate of nearly 60%, well above the state average
of 46%. WIC staff sponsor a booth at the South Bend
Farmer’s Market twice a month during the growing season to
promote WIC, prepare and offer food samples, and explain
the nutritional benefits of eating five servings of fruits and
vegetables a day. WIC also received a grant to participate in
the March of Dimes Folic Acid Campaign. The grant helped
WIC develop an educational blitz for clients over a twomonth
period. The lack of folic acid in women of childbearing
age is directly related to the occurrence of neural tube
defects in children, including spina bifida.
6

Memorial Auxiliary
The members of the Memorial Auxiliary, now in its
105th year, continued to do what they do best — provide
that unique caring touch for patients and families
that comes from a person who feels called to serve others.
In the case of Memorial’s Auxilians, that special
touch comes from men and women who volunteer their
time and efforts in such humanitarian service. They care
so much about the important work of their communityowned
hospital that they give freely of their most precious
asset — their time.
In addition to these important services, the
Auxiliary made financial gifts through Memorial Health
Foundation totaling $230,000. Their dollars went to
Newland Nursing Education Scholarships, new technology
for Radiation Oncology, a new Pediatric Emergency
Transport Vehicle and that amazing new kind of place for
children and families to learn about living healthy lives
— HealthWorks! Kids’ Museum.
Memorial Health Foundation
Thanks to people like you, Memorial Health Foundation
experienced another record year of growth and learning,
as it works to serve Memorial’s Mission of “improving
the quality of life of those who live in our regional community.”
Remarkable new frontiers for the Foundation
during 1999 included the launch of important new kinds
of intervention and education in addressing the dark and
complex threats of domestic violence. We call it T h e
D.O.V.E. Project, a collaborative initiative that
involves Memorial, YWCA and Madison Center.
At the close of 1999, the Foundation was poised to
launch the most ambitious endeavor in its history —
Healthworks! Kids’ Museum.
On other frontiers, the Board of Directors of
Memorial Health Foundation continues to explore
opportunities for researching and designing “the healthiest
community in the nation by 2010.” New initiatives
in integrative healing, access to care, early childhood
development and disparities in health status are attracting
their attention.
7
Below is an abbreviated report on
the nearly $2.8 million distributed by
Memorial Health Foundation in 1999:
Creating Healthier Communities: $1,060,683
Education Programs, Support Facilities
and Services for Patient and Family: $70,151
Staff Education: $95,888
Clinical Facilities and Equipment: $1,566,095
Total: $2,792,817
Memorial Health System 1999
Financial Statement
Gross Patient Revenue $386,703,000
Uncompensated Care $10,111,000
Expenses
Labor 54%
Depreciation & Amortization 6%
Interest 2%
Reinvestment in Healthcare Services 3%
Supplies and Other 25%
Professional Fees and Purchased Services 10%
Other Statistics
Number of Beds 526
Number of Employees 3,264
Community Health Enhancement Investments
(Tithing Fund) $3,684,880
1999 Grant Activity
In 1999, Memorial Hospital and Health System received
state, federal and private grants totaling more than $1.2 million
for various child health and health education efforts.

Look for more
on these projects
during 2000.
HealthWorks! Kids’ Museum
The opening of HealthWorks! in February 2000 attracted
thousands of people — young and old — and introduced
them to new ways of thinking about their health. Zany, colorful
and interactive, HealthWorks! will help Memorial fulfill
its vision of creating the healthiest community in the
nation by 2010.
100 Navarre Place
Work progressed steadily in 1999 on 100 Navarre Place, a
medical office building adjacent to Memorial Hospital. The
$32 million building consists of a three-story parking
garage and a three-story office complex. Each floor of the
office building includes 50,725 square feet of space. A climate
controlled, fourth-floor walkway and a tunnel will
connect the building to the hospital. Offices are scheduled
to begin opening in fall 2000.
Memorial Center for Integrative Healing
Work began on a new space for the Center at the
Robertson’s Apartments building at 217 S. Michigan. The
new Center, which opened in March 2000, offers massage
therapy, aromatherapy, t’ai chi, Healing Touch, yoga and
many other services, products and classes.
Expanded services at The Center
for the Homeless
Construction began in 1999 on the new Memorial
Neighborhood Health Center - Central Clinic at The
Center for the Homeless in South Bend. The 3,000-
square-foot clinic will have four exam rooms, a procedure
room, lab area, doctor’s and social worker’s offices, and
spacious waiting areas. More than 3,400 clients visited
the clinic in 1999; the number of clients visiting the new
clinic is expected to reach more than 5,000.
The South Pavilion Expansion
The groundbreaking in July 1999 for the South Pavilion
Expansion marked Memorial’s first major expansion since
the opening of PACE Pavilion in 1986. When the South
Pavilion is completed in mid-year 2001, it will result in a
28,000-square-foot Emergency/Trauma Center and a
39,000-square-foot Childbirth Unit.
This annual report is also available on Memorial Hospital
and Health System’s Web site at www.qualityoflife.org.
8

Memorial Health System
Board of Directors
Terry L. Gerber, Chairperson
Richard J. Rice, Vice Chairperson
Rev. Richard V. Warner, CSC, Secretary
Stephen A. Seall, Treasurer
Directors
Alfred L. Bias
James B. Harris, MD
Charles F. Hagenow, MD
Philip A. Newbold
Maritza Robles
Sharon A. Scuzzo
Jeanette M. Simon
Janet E. Thompson
Willard G. Yergler, MD
Memorial Hospital
Board of Trustees
A. Dean Speicher, EdD, Chairperson
John P. Hiler, Vice Chairperson
Vivian G. Sallie, Secretary
Patrick L. O’Malley, Treasurer
Trustees
Rafat H. Ansari, MD
Nancy DeCocker
Richmond E. Calvin
Bipin N. Doshi
David D. Gibson
Vincent C. Henderson, MD
Curtis J. Holaway
Maurice R. Hurwich, MD
Michael Kelbel, MD
John M. Jacobs, MD
Faye L. Magneson, MD
Tina M. Patton
Kenneth L. Perrin, PhD
Todd F. Schurz
Harry S. Shaffer
Kurt H. Stiver, MD
Jerrold A. VanDyke, MD
Trustee Emeritus
Members
William A. Carleton
Bruce C. Hammerschmidt (deceased)
Judd C. Leighton
Mary Morris Leighton
JoAnn R. Meehan
William R. Steinmetz, Sr. (deceased)
Dean L. Strycker, MD
E. Blair Warner
Memorial Health
Foundation Board
of Directors
Jeanette M. Simon, Chairperson
Gary B. Fromm, MD, Vice Chairperson
Rita Hagenow, Secretary
Edward W. Hardig, Treasurer
Philip A. Newbold, President
Directors
James N. Boyts
Norman V. Bridges
Janette Burkhart-Miller
Rosamond W. Byrd
Barbara Shields Byrum
Nancy DeCocker
Edwin G. DeMont
Michele DeStefano
I. Anita Echevarria
Rabbi Morley T. Feinstein
Gerald H. Frieling, Jr.
David A. Hornback, MD
Nancy L. Ickler
Leland Kaiser, PhD
Patricia A. Kelly-Holmes, MD
Carlton L. Lyons, MD
Scott C. Malpass
M. Rose Meissner
James T. Schwartz
Jane J. Warner
Robert D. White, MD
Myrtle C. Wilson
Memorial Home Care
Board of Directors
Richard J. Rice, Chairperson
Christopher J. Murphy, III,
Vice Chairperson
David R. Sage, Secretary
Philip A. Newbold, Treasurer
and President
Directors
Bruce R. Bancroft
Hollis E. Hughes, Jr.
Fred S. Kahn
Richard J. Pfeil
John M. Pycik
Dennis J. Schwartz
Dean L. Strycker, MD
Medical Staff President
Jerrold A. VanDyke, MD
Memorial Health System
President and Chief
Executive Officer
Philip A. Newbold
9

Mission
Memorial is committed to improving the quality of life
for the people of our community.
Values
Integrity
Compassion
Respect
Excellence
Vision
By 2010, our community is the healthiest in the nation and
Memorial is the national model for excellence.
10

615 North Michigan Street
South Bend, Indiana 46601
www.qualityoflife.org