2005 Annual Report

HealthReach Community Health

Centers is a sustainable system of

community-based Health Centers

dedicated to high quality, affordable

health care. Qualified and caring

professionals deliver services in

response to the diverse needs of

those we serve, in collaboration

with local organizations. Respectful

care is delivered within a rewarding

environment that fosters innovation

and creativity. We commit

ourselves to the rural and

underserved of central and western

Maine.

On behalf of HealthReach CommunityHealth Centers, we are pleased topresent our Annual Report coveringfiscal year July 1, 2004 to June 30,2005.

This was another successful yearfor HealthReach Community HealthCenters. Our team of dedicatedproviders and staff delivered quality,affordable primary and preventivehealth care services to nearly 38,000medically underserved residents ofcentral and western Maine at over143,000 visits to our health centers.

The publication of this year’sreport comes as health centersnationally celebrate their 40th

anniversary. The federal health centerprogram started out as a pilot projectin President Lyndon Johnson’sdeclared “War on Poverty” in 1965.Now health centers are the familydoctor to 15 million people acrossAmerica and over 125,000 in Maine.No one is turned away for care,regardless of insurance status orability to pay. Study after studydocuments the effectiveness of healthcenters in fighting chronic diseases —such as diabetes, heart disease, highblood pressure and asthma — byproviding affordable and accessiblehealth care. And health centers arecost-effective. Our delivery of primary

Message from the Board Chair & President

Margaret Bean,Chairperson of the Board

Stephen E. Walsh, MHAPresident & CEO

care services and emphasis onprevention strategies to reduce chronicillnesses lessen the need for morecostly hospital and specialty care.

As the national movementcelebrates its 40th anniversary,HealthReach Community HealthCenters celebrates its 30th. Over thepast three decades no fewer than1,000 employees and volunteers havehelped us bring quality, affordable andaccessible health care to some of themost rural parts of western and centralMaine. Many of those associated withHealthReach Community HealthCenters’ effort have been involved sinceits inception in 1975. This is an

incredible testimony to the passion andcommitment to community health feltby those involved. As a system ofFederally Qualified Health Centers, amajority of members of our governingBoard of Directors — all volunteers —are health center patients. This activepatient involvement ensuresresponsiveness to local needs.

In addition to being close to hometo the area residents whom we serve,our health centers also improve accessby offering services that help patientsaccess care, such as health education,case management of chronic diseaseand advocacy for patients who arehaving difficulty accessing other

community resources. A sliding feeprogram is available to patients infinancial need.

As we celebrate our 30th

anniversary, we also are announcingour strategic plan for the next fiveyears. We will expand our qualityassurance initiatives focused onchronic disease management in orderto achieve the best possible healthcare outcomes for our patients. Wewill invest in information technologythat will enable us to capture outcomedata needed to better manage patientcare. We will implement newoperational strategies to improveefficiencies. And we will take

additional steps to attract newpatients and to recruit and retainqualified providers and staff.

Many thanks to our employees, tomembers of our community andgoverning Boards, and to members ofthe community-at-large for yoursupport of our efforts to improve thehealth and well being of our friendsand neighbors.

Margaret Bean, Chairperson

Stephen E. Walsh, MHA, President& CEO

Members of the 2005 HealthReach Community HealthCenters Board of DirectorsFront row (left to right): Eleanor Jodrey, Rebecca Kendall,

Margaret Bean, Judy LeadleyBack row (left to right): Dan O’Halloran, Sophie Glidden,

Roger Renfrew,MD, Leonard Dow, Judd Thompson,Robert Sullivan, Maribeth Canning

Not shown: Nellie Blagden, Barbara Covey, MD, Jay Robbins

Our Story…HealthReach Community HealthCenters (HRCHC) has been a vitalpart of the health care deliverysystem in Central and Western Mainefor years. Through our system of 11federally qualified health centers, weprovide comprehensive primary careservices for the whole family to nearly38,000 Maine residents each year —regardless of insurance status orability to pay.

Great FamilyHealth CareOur health care providers are trainedin primary care medicine and arededicated to meeting the needs ofpeople of all ages living and workingin rural communities. HRCHCproviders treat the “whole person” —not just physicalsymptoms, and formpartnerships withtheir patients,encouraging them totake an active rolein their care.

AffordableHRCHC’s services are available toeveryone, regardless of ability to pay.

We bill all of the major insurancecompanies, Medicare and MaineCare.We also establish payment plans whenneeded. Through funding from the U.S.

Bureau of PrimaryHealth Care, we also

offer a Sliding FeeProgram, based onincome and familysize. In addition,we partner withtwo hospital-based

Quality Family Healthcare, Affordable and Close to Home

When our Health Centers Joined HRCHC

Newborn -12 years12%

65 yearsand over

15%

13-19 years12%

20-44 years32%

45-64 years29%

1977 Madison Area Health Centeropens, becoming the secondHRCHC

1975 Bingham Area Health Centerestablished - HRCHC’s firstcommunity health centeropens

programs which enable our patients toobtain specialist care, hospital services,and medication assistance on a slidingscale based on income.

Over 11,000 of our patients receiveMaineCare. For patients who haveMedicare as their primary payor, onlya small percentage have secondaryinsurance. A total of 4,339 (11.3%)of our patients are enrolled in ourSliding Fee Program.

Close to HomeWe serve families in over 80 ruralcommunities, primarily in Kennebec,Franklin, Oxford, Somerset, Lincoln,Sagadahoc and Androscoggincounties. Nearly 38,000 people choseus as their primary care provider in2004, totaling over 143,000 visits.

We work closely with fourhospitals located in our service areas:Franklin Memorial Hospital(Farmington), MaineGeneral MedicalCenter (Augusta and Waterville),Redington-Fairview General Hospital(Skowhegan) and Stephens Memorial

Hospital (Norway). We alsocollaborate with a number of localorganizations, state agencies andindividuals who deliver crisismanagement, health, social service,education and other complementaryservices to area residents.

Services ProvidedHRCHC provides comprehensive primary and preventive care services to children and adults. Thecore services available to Health Center patients include:• Care of acute and chronic illnesses• Checkups for the entire family• Routine pediatric care• Immunizations for children and adults• School and sports physicals• Well-woman exams and routine gynecological care• Family planning services• Laboratory services• Minor surgery• Referrals to specialty care and community resources• Behavioral health services• On-call emergency coverage, 24 hours a day, 7 days a week• Sliding Fee Program (for those who qualify based on income and family size)

Some Health Centers also offer general internal medicine, osteopathic manipulative therapy,obstetrics/gynecology, podiatry, dental care, social work services, parenting support and/or WICNutrition Services.

7,000

6,000

5,000

4,000

3,000

2,000

1,000

BinghamDental

StrongDental

WesternMaine

StrongHealth

SheepscotRichmondRangeleyMt. AbramMadisonLovejoyBinghamBethelBelgrade

450

2,559

5,582

2,244

4,952

3,203

1,8151,545

2,763

4,917

2,161

4,135

2,413

Patients Serviced by Health Centers

1978 Lovejoy Health Center opens1977 Richmond AreaHealth Center opens

1977 Belgrade RegionalHealth Center opens

1980 Sheepscot Valley Health Center opens

In recognition of 30 Years of Service tothe Community

Year Established: 1975Services provided: A full range of primary and preventive health care services

for people of all ages. Mental health and substance abusecounseling also available through contractual relationshipswith community partners.

Patients served: Over 2,100 in 2004, serving primarily Bingham, Caratunk,Embden, Moscow, Pleasant Ridge, Solon, The Forks and WestForks and surrounding towns.

Council. The only doctor in the areahad moved to Skowhegan, leaving thecommunity without medical care. Thisleft local residents no choice but totravel 25 miles or more to receiveprimary and hospital care. Seeing theneed to regain access to care close tohome, the Health Council worked withKennebec Valley Regional HealthAgency of Waterville (nowHealthReach Community HealthCenters), to bring health care back tothe community. Founding healthcenter staff members were hired in

1986 Mt. AbramRegional HealthCenter opens

Spotlight on Bingham Area Health Center

HealthReach Community Health Centerscelebrates its 30th anniversary thanksto Bingham Area Health Center’s threedecades of service to the community.

It all began when in 1975, a group ofconcerned citizens from Bingham,Moscow, Pleasant Ridge and Concordformed the Bingham Area Health

1986 Strong Area HealthCenter opens

1987 Western Maine FamilyHealth Center opens

When our Health Centers Joined HRCHC

late 1975. Soon after, the firstpatients were seen. Robert Girard,PA-C, was the provider caring forpatients in those early days, withRobert Kaschub, MD, fromSkowhegan on site part-timereviewing patient charts.

The practice has grown over the yearsand adapted to meet the growingneeds of the community. In 1990, theoriginal site on Main Street was

expanded to add a businessoffice and new exam

room. Despite this

“Having lived in the Bingham area most of my life, I knowthat having the health center in our community means alot. We are grateful that we don’t have to travel elsewhere.I feel very fortunate that my family can receive the kind ofquality care that the health center provides. It is harder andharder for people around here to keep up with health carecosts, with the loss of industry and the higher paying jobsand benefits that have left with it. Having this health centerhere makes a real difference, as there is a great need for theservices. It makes the community a better place.”

- Jay Strickland, patient of Bingham Area Health Center

modest expansion, the space, whichwas formerly a private residence, wasquickly outgrown. In the fall of 2002,the health center relocated down thestreet to a much-needed newly builtfacility at 237 Main Street. Thisaccomplishment is credited to thediligent efforts of members of thelocal Health Council, who own thebuilding.

Today a health center staff of 16offer a full range of primary andpreventive care services to childrenand adults, regardless of insurancestatus or ability to pay. Over one-half

of the health center’s staff, includingveteran provider Cindy Robertson,MD, have served for over 20 years,creating aspecial connection with the community.

2004 Part-time dental programbegins at Bingham AreaHealth Center

2003 Dental Center opens atStrong Area Health Center

1999 Bethel Family Health Center,which opened in 1979, joinsHRCHC

1994 Rangeley Region Health Centeropens

CE

LE

BR A T I N G A M E R

I CA

’ S

H

EA L T H C E N T E R

S

Making a Difference: A Promise Kept “The health center has benefited

area residents in many ways.We all value having a role inensuring that health care servicesremain available right here in thecommunity.”

- Chester Hibbard, President of Bingham Area Health Council(Community Board)

This year, Community Health Centersnationally mark 40 years of service andcontribution in America’s health care.It is an historic anniversary madepossible by the vision and hard work ofpeople who continue to believe thathealth care is a right of all people andthat good health is indispensable to thefuture of this nation.

We stand proud of all that has beenaccomplished as one of the largestprovider systems in the country.National leaders, policy makers,academia, and the press recognize thatour model of care – rated amongone of the top mosteffective programs in thefederal government — isnot only an intrinsic partof the nation’s healthdelivery system, but part of

the solution to meeting communityhealth needs while stemming the tideof rising health care costs.

The health center movement is anincredible story of human spirit andpassionate belief that we can improvethe human condition. None of it cameeasy, nor did it happen by chance. Ittook commitment and advocacy. Ittook dedication to work within ourcommunities as providers to learn howbest to care for patients suffering frommultiple needs and environments ofhardship.

Health centers were createdby the federal government in

the turbulent decade ofthe 60’s, a programevolved out of the

nation’s “War onPoverty.” This was a social

experiment that harnessed theresources of the government and thecreative thinking of a few reform-minded physicians and nurses andcommunity activists and organizationsto expand access to health care.

The step was historically significantand revolutionary. For the first time,federal resources were committed tolay the groundwork for thedevelopment of community based,primary care infrastructure to servemedically underserved populations. Itconfronted the reality that even withexpansion of public insurance to coverbroad segments of the poor and elderlyunder Medicare and Medicaid, millionsof Americans and their families wouldstill lack access to basic healthservices because of poverty, cultural, orgeographic barriers.

“One of the primary reasons I joined thehealth center is because I wanted to practicemedicine in an underserved area. We have acaring staff, and we all find it rewarding toprovide care to a community that is trulyappreciative of our health center’s services.”

– David Ferris, DO, Madison Area Health Center

“I’ve been a patient of the healthcenter since I was a child, andnow my four children arepatients as well. I appreciate thatthe providers and staff here trulyknow their patients and are intune with our health care needs.Having health care availablehere close to home means wedon’t have to travel the distanceto the hospital or elsewhere,which has been especiallyimportant to me.”– Heidi Dow, patient of Lovejoy Health Center

It all started as a small federalgrant program in 1965 that providedseed money to activate communityinitiative – to empower people andcommunities themselves to findpartners and resources to developcenters, to recruit doctors and neededhealth professionals, and to build theirown point of entry into the healthdelivery system. By the end of thatfirst year, 25 “neighborhood healthcenters” were in operation. By themid-70s, about 100 centers were upand running. In 1975, health centerswere made a permanent program ofthe Public Health Service Act.

Today, federally qualified healthcenters serve over 15 millionAmericans under a programadministered by the Health Resourcesand Services Administration (HRSA),

Bureau of Primary Health Care(BPHC), U.S. Department of Healthand Human Services.

America’s health centers are oneof the nation’s great success stories,thanks to dedicated teams of doctorsand health professionals, volunteercommunity Board Members andadministrators who believe in themission and stand as a livingtestament to the work, initiative, andideals of many who believe that wemust take responsibility to addressproblems and work together to findsolutions to improve health and thequality of life for all people.

(Source: National Association of CommunityHealth Centers (NACHC), excerpts from“Community Health Centers History,” by ThomasJ. Van Coverden, President & CEO, NACHC. Formore information, visit www.nachc.com)

Congressman Mike Michaud visits with a patientat Bingham Area Health Center, Feb. 2005.

Why CommunityHealth Centers SucceedCommunity health centers have succeeded because of the men and women who have never given up the dream of affordableand close-to-home health care and who have dedicated their lives to making this program work for the people of theircommunities. But success is also attributable to the unique structure of the health center model with its strong ties to thecommunities it serves:

“Providing health care to folkswho live in a rural community is

rewarding. People know us and arereassured that we know them and

their health situation and historyand that we are here for them.

We enjoy seeing entire families.”– Ellen Tewksbury, LPN, 27 years at Bingham Area Health Center

“We care for patientsregardless of their incomeor insurance. I reallybelieve we put thepatients’ welfare first. Ifeel this is how medicineshould be practiced. Ican’t imagine workinganywhere else.”

– Richard DeCarolis, DO, Bethel Family HealthCenter and HRCHC’s Operational Medical Director

• Health centers are built on a solid foundation of public-private partnership. They are partnerships of people, governmentsand communities working together to meet local health needs – built bottom up, by community initiative.• Health centers are uniquely governed by consumer Boards representing the community and the patients served. This link tothe community has been all-powerful.• Health center programs from the beginning have focused on prevention and outcomes. Health centers continue to be aboutearly interventions, outreach, and patient education. Studies document that health centers save billions of dollars for thenation keeping people healthy and out of hospitals and emergency rooms.

• Health centers are true community builders. In every sense of the word, health centersare more than providers of care, they are catalysts, empowering communities withresources, jobs, education and strong futures. Today, most of the 78,000 employees ofhealth centers are community residents. A total operating budget of over $6 billiongenerates more than $15 billion in community economic development. Every $100million invested in health centers brings another $300 million in new investment andother resources to local communities nationwide.

In these and so many other ways, health centers have provided a true model for communitydevelopment, not just in theory – but in reality. In their 40-year history, they have provideda lesson on how consumer involvement in health care can make a difference and succeed.

Source: National Association of Community Health Centers

One area in which community healthcenters excel is in the management ofchronic disease. A focus onpreventive care and treating the“whole person” and not justsymptoms contributes to successfuloutcomes. One example of howHRCHC demonstrates ourcommitment to quality assurance isthrough participation in health careinitiatives that match the clinicalneeds of our patients.

Across the HealthReachCommunity Health Centers system,diabetes consistently ranks among themost commonly diagnosed conditions.Since January 1, 2005 LovejoyHealth Center (LHC), located inAlbion, has participated in the U.S.Department of Health and HumanServices, Bureau of Primary HealthCare’s Health DisparitiesCollaborative on Diabetes Care. TheHealth Disparities Collaborative is amulti-year initiative that seeks todetermine a more efficient andeffective model of care to manage

chronic diseases. It uses a ChronicCare Model for Improvement thatresults in changing behaviors in foureasy steps: Plan, Do, Study and Act(PDSA Cycles). The Chronic CareModel is based on identifying whichpatients have an illness,ensuring that these patientsreceive evidence-based careand actively helping patients toparticipate in their own care.Forrest West, MD, is the leaderof Lovejoy’s DiabetesCollaborative team.

Much has beenaccomplished since thebeginning of the year. Participation inthis Diabetes Collaborative hasenabled Lovejoy’s team members totry new ideas and new ways of doingthings and to test these ideas beforeputting them into action. A newelectronic registry has enabled Dr.West to monitor the effectiveness ofeach patient’s treatment plan and tohelp educate patients and supporttheir participation in management of

their own health. The team has alsodeveloped collaborative relationshipswith other organizations, agencies andsystems within our communities,counties, state and the BPHCNortheast Region.

Additionally,Barbara Moss,DO, of SheepscotValley HealthCenter in CoopersMills, hascompleted a yearof participation inthe Maine Health:Chronic Disease

Diabetes Collaborative. We are proudthat HRCHC has had both nationaland state involvement in ChronicDisease Collaboratives, demonstratingour strong commitment towardimproving the way we approachprevention of chronic illnesses andhow we treat them once they occur.

Focus on Quality: Management of Chronic Disease

“Our goal is to close the gap betweenwhat’s the known treatment and whatis the best actual treatment, by usingthe chronic care model to actively takecare of people with chronic diseases.We also get the patient more involvedin their care so that he or she knows asmuch as possible and can play a moreactive role in the management of theirdisease.”

- Forrest West, MD, Lovejoy Health Center

In order to fulfill our mission ofproviding first-rate medical care thatis affordable and close to home,HealthReach Community HealthCenters work closely with communitypartners who have overlapping visionsfor healthier Maine communities.Together with community members,providers and organizations, we assessthe ever-changing local health careneeds, develop workable solutions,generate new resources, and evaluateour efforts and successes.

In the fall-winter of 2004-2005,HealthReach completed a CommunityHealth Needs Assessment across ourentire system of eleven health centers.We surveyed patients, Community andGoverning Board members, employeesand others. Identified needs havesince been incorporated into ourStrategic Plan, which will guide ourorganization over the next five years.

We maintain partnerships with thecommitted local citizens whocomprise our Community Boards, andthey are beginning to work moreclosely with each other. Many of our

health centers and the communitieswe serve face similar challenges, andcoming together to exchange ideasenables us to find solutions thatbenefit all. The Boards continue towork directly with the individualhealth centers on facilityenhancement and communityeducation forums. Last year,Richmond’s Community Boardfacilitated remodeling the facility forincreased patient and staff comfort.Belgrade’s Community Boardcompleted a capital campaign for anew facility slated for the winter of2005. In addition, a number of healthcenters provided community forumsfor seniors on negotiating the healthcare maze.

We continue collaborativerelationships with hospitals, healthcare entities and social serviceorganizations to prioritize needs, joinforces on vital projects, attractadditional funding to the area, andensure health care access to bothcitizens and visitors. Currently, forexample, we are working

collaboratively with the AreaAgencies on Aging and SocialSecurity to assist patients withunderstanding and enrolling in thenew Medicare D drug benefit.

We participate in State of Maineinitiatives and coalitions to ensurethat the health and dental needs ofrural citizens are recognized andaddressed. Current membershipsinclude Maine Primary CareAssociation, Maine Dental AccessCoalition, Healthy MainePartnerships - Center for TobaccoIndependence and Maine PublicHealth Association.

Some examples of how thepractices of HealthReach CommunityHealth Centers currently participatein statewide and regional initiativesare listed below:• All of our Health Centers offer

Nicotine Replacement Therapythrough partnerships with theMaine Primary Care Association,the Center for TobaccoIndependence and a number oflocal Healthy Maine Partnerships.

Working Together to Do More for Our Communities

BangorSkowhegan

Farmington

• Mental health and substance abuseprograms are made available to ourHealth Center patients on-site andin partnership with local behavioralhealth providers.

• Eight HRCHC practices participatein health access programs(CarePartners and Franklin HealthAccess Program) to ensure thatpatients receive Sliding Fee Servicesfor health care needs beyond theirindividual health centers.

• Through our involvement withMaine Dental Access Coalition andMaine Oral Health Program, wehave been able to launch dentalpractices at two of our HealthCenters (Strong and Bingham).

• WIC (Women, Infants and ChildrenNutrition Program) is available on-site at many of our Health Centers.Families obtain education andnutritious foods in their owncommunities.

• Several of our Health Centersparticipate in health careCollaboratives to ensure thatpatients with chronic conditionsare more involved in their owntreatment and receive increasedscreening and education. Lovejoyand Rangeley, for example, haveentered into a partnership with theMaine Primary Care Association’s(MPCA) Tobacco TreatmentProgram to track tobaccotreatment efforts. Lovejoy has alsopartnered with the MPCA and thelocal hospital to assess diabeticpatients’ understanding of thedisease and to further thatknowledge in order to bettermanage their health.

Bingham AreaHealth Center

Madison AreaHealth Center

Administrative OfficeWaterville

Mt. AbramRegional Health Center

Kingfield

Strong AreaHealth & Dental Centers

Rangeley RegionHealth Center

BelgradeRegional Health Center

BethelFamily Health Center

Western MaineFamily Health Center

Livermore Falls

LovejoyHealth Center

Albion

Richmond AreaHealth Center

Sheepscot ValleyHealth Center

Coopers Mills

Maine

HealthReach Community Health Centersis a family of 11 federally qualified, community-

based health centers located in central and westernMaine. Dedicated providers deliver high quality,

affordable health care to 38,000 rural and underservedresidents in over 80 communities. A private, non-profit

organization with a 30-year history, HRCHC is fundedby patient fees, grants and individual donations.

www.HealthReachCHC.orgHRCHC is an Equal Opportunity Organization

Bangor

Farmington

Skowhegan

Waterville

Augusta

Lewiston

PortlandPortland

Lewiston

Augusta

Waterville

HealthReach Community HealthCenters offers numerous givingopportunities for residents andvisitors, local businesses, vendors,foundations and organizations tosupport our mission of providing first-class health care that is close-to-home and affordable.

Since opening our first communityhealth center 30 years ago, we havereceived a number of generous grantsfrom federal, state and private sourcesas well as contributions from individualdonors. This support has enabled us tooffer a Sliding Fee Program to thosewho qualify, as well as to initiate avariety of outreach and educationservices - parenting programs, dentalservices, domestic peace initiatives andhealth education programs.

With the generous support ofdonors, we will continue providingcompassionate medical care to improvethe lives of Maine children, adults andfamilies. Additional resources areneeded now more than ever, as theneeds of our patients continue to grow,while insurance and governmentsubsidies decline. In this rapidlychanging and increasingly difficulthealth care environment, donations are

essential to fund patient serviceimprovements, patient education andcommunity health programs, andtechnology advancements necessary tocontinue the HealthReach tradition ofexcellence in delivering family healthcare to our rural neighbors.

Giving opportunities for individualsat HealthReach Community HealthCenters include donations of time,money, goods or services to theorganization or to an individual healthcenter. Our goal is to match donors’interests and values with the needs ofindividual health centers. As a501(c)(3) non-profit organization,financial donations to HealthReachare tax deductible under IRS rules.

Employee Giving - The employeesof HealthReach Community HealthCenters take pride in the daily work ofproviding high quality medical anddental care to area residents andvisitors. In addition, we have a well-established practice of contributingtime and money to important causes –international disaster relief (e.g. 2004tsunami tragedy), local annual UnitedWay Campaigns, medical leave bankfor fellow employees in crisis, andcommunity volunteerism.

In this our Thirty-Year Anniversary ofproviding healthcare, we want tospecially thank local businesses andvendors who contributed generouslyto our Annual Employee/Volunteercelebration. We are grateful for thetremendous support of the qualityhealth care we provide every day.

Play a meaningful role in ensuringthat residents of your communityobtain the health care they deserve bybecoming involved with HealthReachCommunity Health Centers. We inviteyou to:

• Make a financial contribution• Give a donation of goods or

services• Participate in one of our

special events• Volunteer your time

For more information about howyou can contribute or to learn aboutour current priorities andopportunities, you may contactour Development Office at(207) 861-3466 or by e-mail atHRCHC@HealthReach.org.

Giving Opportunities at HealthReach Community Health Centers

STATEMENT OF FINANCIAL POSITIONASSETS 2005 2004Total current assets $2,097,118 $1,982,155Total assets limited as to use 582,118 547,072Other assets 425,326 398,830Total assets $3,104,632 $2,928,057

LIABILITIES AND NET ASSETSTotal current liabilities $1,493,971 $1,303,671Long-term debt* 426,434 11,417Total liabilities 1,920,405 1,315,088Total net assets/equity 1,184,227 1,612,969Total liabilities and n et assets/equity $3,104,632 $2,928,057

Financial Statements Years Ending June 30, 2005 and 2004

Gross RevenueFederalGrant14%

Self-Pay14%

Medicare17%

Medicaid23%

Private Insurance31%

OtherSources

3%

All OtherExpenses

31%

Salaries,Benefits and

Taxes65%Nonrecurring

Malpractice Costs4%

Expenses

STATEMENT OF ACTIVITIESREVENUE 2005 2004Gross revenues, gains and other support $16,633,848 $16,326,394Deductions from revenues 2,568,282 2,641,253 Net revenues, gains and other support $14,065,566 $13,685,141

EXPENSESSalaries, wages, employee benefits $ 9,495,869 $ 9,300,060Supplies and other 4,038,119 3,888,247Provision for bad debts 456,939 479,944 Total expenses 13,990,927 13,668,251Income/(loss) from recurring opperations 74,639 16,890Nonrecurring operating expense* 503,976 –Net operating income/(loss) (429,337) 16,890Nonoperating gains/(losses) 21,298 55,139Increase (decrease) in unrestricted net assets ($408,039) $72,029

*Nonrecurring operating expense relates to

the cost of malpractice insurance conversion

which was financed through long-term debt

An Equal Opportunity Organization

www.HealthReachCHC.org

Belgrade Regional Health CenterBelgrade Lakes, Maine(207) 495-3323

Bethel Family Health CenterBethel, Maine(207) 824-2193

Bingham Area Health CenterBingham, MaineHealth Center: (207) 672-4187Dental Program: (207) 672-3519

Lovejoy Health CenterAlbion, Maine(207) 437-9388

Madison Area Health CenterMadison, Maine(207) 696-3992

P.O. Box 1568Waterville, Maine 04903

Our eleven Health Centers serve residents of over 80 rural communities:

Mt. Abram Regional Health CenterKingfield, Maine(207) 265-4555

Rangeley Region Health CenterRangeley, Maine(207) 864-3303

Richmond Area Health CenterRichmond, Maine(207) 737-4359

Sheepscot Valley Health CenterCoopers Mills, Maine(207) 549-7581

Strong Area Health CenterStrong, MaineHealth Center: (207) 684-4010Dental Center: (207) 684-3045

Western Maine Family Health CenterLivermore Falls, Maine(207) 897-4345

Administrative OfficeWaterville, Maine(207) 861-3400 or 1-800-427-1127

NONPROFIT ORGUS POSTAGE

PAIDWATERVILLE ME

PERMIT NO 19