Franciscan Sisters of Christian Charity Sponsored Ministries, Inc.

AnnualReport2016

A Year of Change

T he mission of the Franciscan Sisters of Christian

Charity Sponsored Ministries is to carry out the

commitment of the Sponsor to the healing and

educational mission of the Catholic Church through the

provision of quality health care and educational services.

In a spirit of partnership with dedicated religious and lay

leaders, the Franciscan Sisters of Christian Charity Sponsored

Ministries will strengthen the Sponsor’s commitment by

managing change, ensuring stewardship of resources, and

integrating mission and values.

Some images in this annual report were photographed in the Basilica of St. Francis in Assisi.

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Dear Friends2016 was a year of great change for the Franciscan Sisters of Christian Charity Sponsored Ministries (FSCCM). One June 1, 2016, Dan McGinty was appointed the first lay president of FSCCM, succeeding Sister Laura Wolf who held the position for 31 years. We applauded and celebrated Sister Laura’s tremendous leadership, her wisdom, and the strong relationships she built across the system. Then, we handed the mantle of leadership to Dan, a person who is well known to us, having served Holy Family Memorial from 1988-2001 and as a member of the system board from 2011-2017. By all accounts, this transition has been smooth and successful.

Amidst all of this change, what is not changing? At FSCCM, we are committed to the healing and teaching ministry of Jesus Christ and the Catholic Church. We strive to be a vibrant presence of Franciscan values and charisms in the communities we serve. We are humbly proud of all of our sponsored ministries and their fidelity to our mission and service to their communities. We continue to embrace our model of subsidiarity and autonomy to our local boards and leadership teams, with appropriate guidance from the system.

As we look to 2017, we see the potential for significant changes from Washington, DC, in both health care and higher education. While these may be unsettling, we rest confident in the fact that we have weathered many changes since the formation of the Franciscan Sisters of Christian Charity in 1869. We will trust in God remaining true to our mission and values. We will continue to deliver high quality services in all of our communities.

In St. Francis, pax et bonum,

Sister Natalie Binversie Chair of the Board

Daniel B. McGinty President

Sister Natalie Binversie Chair of the Board

Franciscan Sistersof Christian Charit y SponSored MiniStrieS, inc.

Daniel B. McGintyPresident

Sister Laura Wolf Immediate Past President

Sister Laura Wolf Immediate Past President

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LeadershipMost Reverend Frederick F. Campbell

Diocese of Columbus, Ohio

Most Reverend George C. Lucas

Archdiocese of Omaha, Nebraska

Most Reverend David L. Ricken

Diocese of Green Bay, Wisconsin

Franciscan Sisters of Christian Charity Sponsored Ministries, Inc. 2016 Board of Directors

General Administration of the Franciscan Sisters of Christian Charity

From left to right are Sister Adrianna Schouten, Sister Theresa Feldkamp, Sister Natalie Binversie, Sister Anne

Marie Lom, and Sister Myra Jean Sweigart.

Sister Natalie Binversie Board Chair

Daniel McGinty President

Sister Adrianna Schouten

Sister Anne TurbaSister Kay Klackner

William Frazier

Sister Myra Jean Sweigert

Carol RickenDavid Gitter

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Boards of DirectorsThe following lists are snapshots of our boards as they existed on December 31, 2016.

Franciscan Care Services, Inc.West Point, Nebraska

Steven R. AusdemoreMary JanataGary KaupWilliam T. Kreikemeier, Board ChairSister Barbara MatheDr. Chad OrtmeierKari PenroseJackie RidderJerome SteffenDave SteffensmeierSteve SwansonJerry Wordekemper, CEO

Genesis HealthCare SystemZanesville, Ohio

Jody BallasJoAnn ButcherRandy Cochrane, Board ChairJohn DittoeColby GrahamTod KlotzbachJames McDonaldDaniel McGintyMark MoyerPatrick NashJerome B. NolderSister Mary Ann NugentMatthew Perry, CEODr. Erin RemsterDr. William ShadeShirley VanWyeSister Laura WolfDr. John Zimmerman

St. Paul Elder Services, Inc.Kaukauna, Wisconsin

Jackie AbelEvie HartwigSister Patricia LinssenDr. Jack MeyerSondra Norder, CEOCatherine PeetersAndrew SchmidtDavid Vander ZandenThomas Verhagen, Board ChairSister Dorothy WagnerSister Mary Kaye Winkler

Holy Family Memorial, Inc.Manitowoc, Wisconsin

Michelle BirschbachDr. Derek BownDonald Brisch, Board ChairDr. Matthew CampbellWilliam R. CaseyJeffrey DunnSister Lorita GaffneySister Marlita HenselerMark Herzog, CEOErick KahlenbergMarilyn KaufmannDenise KitzerowDr. William LeachSister Elaine TurbaSister Jan VillemureKathleen Zucchi

Silver Lake College of the Holy FamilyManitowoc, Wisconsin

Kevin CrawfordJoe DebilzenDr. Chris Domes, PresidentFather Dan FeltonMark J. FenlonSister Carol Ann GambskyDr. Mary GovierChristine KornelyJohn RussoSister Adrianna SchoutenSister Jacqueline SpaniolaDr. Colleen TimmEric Volcheff, Board ChairJohn Zimmer

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Franciscan Sisters of Christian Charity S p o n s o r e d M i n i s t r i e s, I n c.

Franciscan Care ServicesWest Point, Neb.

St. Paul Elder Services Kaukauna, Wis.

Holy Family MemorialManitowoc, Wis.

Silver Lake CollegeManitowoc, Wis.

•••

•Genesis HealthCare System

Zanesville, Ohio

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Genesis HealthCare System Zanesville, Ohio

GENESIS HEALTHCARE SYSTEM PREPARES FOR 2020. Changes that had been in the planning stages for years

became a reality for Genesis HealthCare System in 2016. After moving into the new Genesis Hospital in June 2015, more than 500 new processes were put into place to provide the ultimate in patient- and family-centered care.

In June 2016, Genesis began planning for the inevitable changes to happen in health care over the next five years. More than 80 representatives, made up of Genesis staff, physicians and board of directors, as well as local businesses and non-profit organizations, collaborated to help lay the groundwork for “Genesis 2020: Our Journey to Inspired Care.”

This strategic plan includes a roadmap to help guide Genesis through opportunities and challenges the health care industry will face into the year 2020. It’s a well thought-out plan to meet the community’s future health care needs. The plan is specific and includes eight goals and strategies to accomplish the objectives.

The aspiration statements for each goal give detailed descriptions on what Genesis plans to be in five years. The eight goals include population health; care coordination and communication; physician recruitment; first choice employer; regionalization; primary care

growth; patient access; and community partnerships. For example, part of the aspiration statement for population health includes “We provide a patient-centered, organized system of care that promotes wellness and prevention.”

Accomplishing the goals is critical to fulfilling the Genesis mission of providing patient- and family-centered care and ensuring that Genesis will remain a locally run hospital providing the healing ministries that people of Southeastern Ohio depend on for quality care.

Physician assistants Adrian McCutcheon (left) and Jenny Daubert (right), help provide access to care, which is a part of the Genesis Strategic Plan.

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Franciscan Care Services, Inc.West Point, Nebraska

FRANCISCAN CARE SERVICES CONTINUES TO MOVE FORWARD WITH PLANS FOR THE NEW NURSING HOME FACILITY.

Site work for the nursing home project began in the fall of 2016. This consists of preparing the site for construction that will begin this spring.

The nursing home facility will be named St. Joseph’s Hillside Villa. This 54 bed community will help fulfill our mission of respecting life in all stages from conception to natural death and compassionate care for the poor, elderly, and those in need.

“Our committee is excited to see this project come together,” said Jerry Wordekemper, President/CEO, who added, “with the ground work that started last fall, we are working to finalize plans and see everyone’s hard work come to life.”

Franciscan Care Services has been working with Holland Basham Architects (HBA) from Omaha on finishing floor plans and design features. Andy Fuston, St. Joseph’s Retirement Community Administrator, is now construction manager for the project.

“As we continue to dream and solidify our vision in the design and development phase, I can’t help but get more and more excited about the future of elder care services here in West Point,” Fuston said of the project. “We are so blessed and fortunate to have a healthcare organization like Franciscan Care Services committed to providing long-term care services in a modern, comfortable, and compassionate environment. The overwhelming support from the community we have experienced thus far just confirms how important and needed this project is. We all embark on this adventure together and I’m certainly happy to be part of it.”

A rendering of St. Joseph’s Hillside Villa.

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Holy Family Memorial, Inc.Manitowoc, Wisconsin

HFM KICKS OFF NEW FUTURE OF HEALTH CARE WITH LAKEFRONT CAMPUS. Over

the last few years, Holy Family Memorial has undergone serious discussion relative to strategic master facilities planning and in 2016 a conclusion was reached which significantly modifies our present configuration. Currently HFM has 10 different locations throughout Manitowoc County. In our master planning process, we determined that in order to create the ultimate customer experience, superb convenience, and the most efficient delivery system for our community, we would begin execution of a plan designed to consolidate into three major campuses. The HFM locations of the future will include the main hospital location on Western Avenue, our current Harbor Town campus on the city’s West side, and a new campus in our Northern marketplace, the City of Two Rivers.

After months of property review, a site was selected to build HFM Lakefront Campus, a premiere destination for our Northern Manitowoc County customers. The selected site is a beautiful location right across the street from the area’s natural claim to fame, Lake Michigan. Using teams of employees and LEAN principles, a design was completed which allows for patient convenience, maximizing the amazing lake views, efficient workflow, utilization of advanced technology,

and patient-centered design elements such as natural lighting, soothing décor, healing environment, and easily accessible parking. The 15,000 square feet, state-of-the-art HFM Lakefront Campus outpatient facility will consolidate three current HFM locations and provide the following services: primary and specialty care, walk-in care, diagnostic testing (lab and x-ray), rehabilitation therapy and wellness services, occupational medicine, and community space.

Working closely with the City of Two Rivers, HFM was proud to conduct a groundbreaking in July and project construction began shortly thereafter. Currently, the project is on track with an expected occupancy date of July 2017. With the Lakefront Campus, HFM is successfully partnering with our government friends and using 100 percent Wisconsin contractors to create an innovative, new health care destination to best serve our friends and neighbors.

A rendering of the HFM Lakefront Campus.

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St. Paul Elder Services, Inc. Kaukauna, Wisconsin

A NEW CHAPTER IN SPES HISTORY. With the ribbon cutting and open house over with, the license on the wall, and the caregivers and

support services associates ready to shine, on Tuesday, July 5, 2016, our first resident moved into St. Paul Manor, our new memory-care specific community-based residential facility. We were thrilled to help her and the 23 other members of the very first cohort of residents call St. Paul Manor their new home, and to make “St. Paul Manor” a household name once again. We were thrilled to know also that, for decades to come, St. Paul Manor will serve the needs of the greater Kaukauna community by providing them with exceptional memory care, residential support, and services that will allow them to maintain a dignified and fairly independent quality of life.

While it may not have been quite as historic a moment as when Edith Grignon moved into the original St. Paul Home for the Aged in 1943, later to be known as St. Paul Manor, the day that became known as SPES’ “Founder’s Day,” it is certainly a date that will forever be noted as significant in our colorful history. On that Tuesday in July, we completed our continuum of care and brought it all together on one campus. We also rounded out our “Passages” program starting that day by adding memory care-specific assisted living to our vast portfolio of dementia care services and supports.

Along with the opening of St. Paul Manor, we opened the Hoffman Memory Care Resource Center, named in

honor of donor Grace Hoffman and her late husband. That opening was just as historic, as it is a first-of-its-kind center in which those who are living with dementia in the community and their care partners can come together to socialize, to exercise their brains and bodies, to surround themselves with support groups, and to be linked to resources that will allow for extended independent and safe community living. The Center has become the go-to location in the Fox Valley area for the right service at the right time in the right place for all types and degrees of memory loss.

Indeed, 2016 was a noteworthy year in SPES’ history books!

A ribbon cutting and open house for St. Paul Manor, a new memory-care specific community-based residential facility.

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Silver Lake College of the Holy Family Manitowoc, Wisconsin

SILVER LAKE COLLEGE OPENS NURSING WING, INTRODUCES BSN PROGRAM. When Lindsey Brennan of Manitowoc walks down the

halls of Silver Lake College’s recently renovated $1.5 million nursing wing, she’s glad she decided to pursue a Bachelor of Science in Nursing.

“Since I’ve been in high school, nursing is what I’ve wanted to do,” said Brennan, who is interested in pediatric oncology. “When I heard about Silver Lake College opening its four-year nursing program this fall, I checked into it. I found the college is a good fit for me.”

Brennan belongs to the first class of nursing students to take advantage of Silver Lake College’s state-of-the-art learning and laboratory space, completed in August 2016 to house the college’s new four-year traditional BSN program.

Some 9,300 square feet on the third floor of the college’s main building include classrooms, offices, a student commons area, a conference room, and two simulation labs with lifelike medical manikins.

“We are proud to offer this cutting-edge facility and, more importantly, the opportunity for students to obtain a BSN degree,” said Brianna Neuser, director of the nursing program.

As growing numbers of people requiring health care reach retirement age — and as nurses

themselves retire — the demand for highly trained nurses is on the rise. Even The Wall Street Journal recently took notice when it called nursing “The Hottest Job in Health Care.”

“There is a tremendous need for nurses,” Neuser said. “Each year, thousands of students are turned away from nursing programs due to limited capacity. Silver Lake College is now in a position where we can help reduce the number of students being turned away through guaranteed acceptance into our program (contingent on meeting academic requirements).”

And by training more nurses, the college is helping the communities in which they’ll be working, making it a perfect fit with its Franciscan mission.

Brianna Neuser, director of the nursing program, works with the first cohort of nursing students in Silver Lake College’s newly renovated $1.5 million nursing wing.

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2016 Sources of Revenue 2016 Uses of Revenue

2016 Health Care Payer Mix

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2016 Service Statistics2016 % change

Health Care

Discharges 17,268 - 2.8

Patient days 69,893 -0.5

Observation days 9,945 1.9

Resident days 93,337 -1.0

Surgical procedures 26,300 4.9

Births 1,823 -1.2

Emergency department visits 87,889 1.3

Outpatient visits 545,851 2.9

Physician clinic visits 571,389 0.4

Employed medical providers 274 3.0

Higher Education

Full-time traditional college students 202 3.6

Students in campus housing 102 -5.6

Part-time, graduate and other credits 4,711 -11.7

Total FSCC Sponsored Ministries

FTEs 4,147 -1.9

2016 Combined Statement of Financial PositionAssets Liabilities and net assets

Total current assets $187,450 Total current liabilities $ 89,221

Total assets limited to use 282,883 Long-term debt, less current 364,089

Property, plant & equipment 453,831 Other liabilities and minority interest 55,120

Other assets 23,503 Total net assets 439,237

Total assets $947,667 Total liabilities and net assets $947,667

000s

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Community Benefit Report2016 2015

Community Benefit Programs & Services: Programs provided to persons with inadequate health care resources and to groups within the community that need special services and support.

$3,716,000 $2,808,000

Donations/Contributions: Include cash and in-kind donations that are made on behalf of the poor and needy to community agencies and to special funds for charitable activities as well as resources contributed directly to programs, organizations and foundations.

$465,000 $301,000

Traditional Charity Care: Covers services provided to persons who cannot afford to pay for these services. The amount reflects the cost of free or discounted health services. Charity care is based on established policies, using patient income and assets to determine payment ability. Charity care does not include bad debts.

$2,047,000 $4,343,000

Unpaid Costs for Medicaid Patients: At present, the reimbursement rate for the Medicaid program does not fully cover the cost of care to these patients. This represents the estimated “shortfall” created when a facility receives payments below the costs of treating Medicaid and other public program beneficiaries.

$40,358,000 $31,884,000

Total Community Benefits * $46,586,000 $39,336,000

* Calculated at cost, using guidelines developed by CHA in A Guide for Planning and Reporting Community Benefit, 2015 edition.

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2016 StaffFranciscan Sisters of Christian Charity

S p o n s o r e d M i n i s t r i e s , I n c .

Daniel McGinty, President

James Vopat, Senior Vice President, Finance

Scott McConnaha, Vice President, Mission

Sister Laura Wolf, Senior Executive to the President for Sponsorship, Planning and

Church Relations

Barbara Kane, Director of Finance

Terri Hollen, Director of Corporate Services

Michele Ziarnik, Executive Assistant to the President/Office Manager

Karen Stenzel, Executive Assistant for Governance and Communication

Virginia Duprey, Receptionist/Finance Assistant

Franciscan Sisters of Christian CharityS p o n s o r e d M i n i s t r i e s, I n c.

1415 South Rapids Road Manitowoc, WI 54220 www.fsccm.org