president’s report 2008

75The

NexT

LuTheraN homes, INc . PresIdeNT’s rePorT 2008

Years

1

3

2

4

65

7 8

109

1) Elmer O’Keefe, Concord Village resident and volunteer

Izabelle Jimenez, Children’s Village student

2) Joyce McNamara, volunteer and entertainer

3) Marie Clark, Concord Village resident and volunteer

4) Marcy Soest, Concord Village resident and volunteer

5) TracyVance,LutheranHome,StaffingAssistant,NursingServices

6) Calvin Schultz, Concord Village resident

7) Erwin & Gretchen Fuhrmann, Concord Village residents and volunteers

8) Bob Soest, Concord Village resident and volunteer

9) Edith Blessing, Lutheran Home resident

10) AliceMoore,LutheranHomeresident

Cevan Miller, Children’s Village student

Bruce Blalock, President & CEO

ALeTTerfroMTHepreSideNTANdCeo

AsicompletemyfirstfullyearatthehelmofLutheranHomes,inc.

(LHI), I’m thankful for the opportunity to lead an organization with

suchremarkablepotential.i’vereceivedquiteawarmreceptionin

thepastyear,andforthisithankyou.it’sbeenabusyyear—one

fulloftransition—andi’mthrilledtoseesuchanenthusiasticresponsetoall

thechangeswe’vemade.

Asthetitle“TheNext75Years”suggests,thisreportfocusesprimarilyonthe

futureofLHi.Andwhatabrightfutureitis.Butbeforeiarticulatemyhopes

anddreamsfortomorrow,i’dliketotakeaquicklookbackward.Herearejust

afewoftheaccomplishmentswe’veachievedtogetherinthepastyear.

EmployEE apprEciationin2007,employeeturnoveratLHiwas110percent.

SooneofmyfirstprioritiesasCeowastofocusonretention.Througha401(k)

plan with a generous match, no-cost and low-cost medical options, and new

avenuesfortwo-waycommunication—includingmonthlytownhallmeetings,an

employeenewsletter,andanewlydevelopedemployeeappreciationteam—we’ve

seensomeamazingresults.Turnoverhasdecreasedby45percent,andwe’vecut

overtimebymorethan50percent.

Moreimportantly,we’vemadelifefunatwork.Allofthistranslatesintoabetter

qualityoflifeforourresidents,asseenbytheresultsatLutheranHome:

ZerocomplaintsurveysordeficienciessinceApril2008.•

Zero low-risk residents have developed pressure ulcers •

inthepastsixmonths.

raisingLutheranHometothetop15percentinthestate •

foroverallpressureulcerprevention.

Wereceivedthe2008HealthCareexcelawardforimprovements •

inourqualitymeasurementsatLutheranHome.

Now that’s something to be proud of!

physical improvEmEntsWe’vemadesomesignificantchangestoour

physicalenvironmentaswell.Herearejustafewofthewayswe’reimproving

theinteriorandexteriorlandscape:

expandedemporium—ouroldgiftshopwassmallandcramped. •

Thenewonehasdoubledinsizeandhasanew“sodashop”feel.

WeitzmanTheater—ThroughagenerousdonationfromopheliaWeitzman,•

we converted an old, unused lounge into a state-of-the-art movie theater

withseatingfor13ormore.

privatediningroom—Weconvertedaconferenceroomintoan •

elegant private dining room at Lutheran Home, made possible by

adonationfromArnoldandCoraConrad.

ChapelCorridor—Wetransformedanoldconcretebreezeway •

intoashowpiecethatenhancestheLutheranHomechapel.

Chapelface-lift—Weremovedwallpaper,addedfauxpaint, •

andbrightenedupthechapelceilingatShepherdoftheHill.

NewNurseCallSystem—Weinstalledastate-of-the-artnurse •

call system at Shepherd of the Hill, eliminating the institutional

beepingnoisesfromtheoldsystem.

diningroomUpdate—Again,weremovedwallpaperintheShepherd •

oftheHilldiningroomandrepaintedit,creatingafreshnewlook.

In addition to these improvements, LHI is becoming green by replacing soap

andotherhousekeepingproductsandpurchasinggreenerfloormats.overall,

newlandscapingandconcrete—aswellasdecreasedclutter—haveimproved

thelookandfeelofourbuildings.

program EnhancEmEnts One thing that has set LHI apart from the

competitionforyearsisourinnovativeintergenerationalprogramming.in

the past year, we’ve enhanced opportunities for multigenerational interaction

through our ice cream social and our most-attended friends and family trick-

or-treatever.otherprogramenhancementsincludeawellnesslectureseries;

creative-writing,memory-minder,andfitnessclasses;andWiisports.

CalvinSchultz,ConcordVillageresident.

Carlripkeandelmero’Keefe,ConcordVillageresidents.

BobandMarcySoest,ConcordVillageresidentsandvolunteers.

Through all these changes, we’re moving away from traditional nursing home

stereotypesandcreatinganenvironmentwherepeoplecancomeandthrive.

It’s what will continue to set us apart from other retirement-living communities

inyearstocome.

LooKiNgAHeAd

Yes,we’rethankfulforallthatweasateamhaveaccomplishedinthepastyear.

Butevenmoreimportantarethegrowthopportunitiesforthefuture.infact,the

growthpotentialforretirementlivinginnortheastindianaisremarkable.it’sone

ofthereasonsiwasdrawntothispositioninthefirstplace:theopportunity

forstrategicleadership.

Here’swhatienvisionforthefutureofLHi.

LUTHerANHoMeS,iNC.,WiLLBeCoMeTHeLeAder forreTireMeNTLiViNgiNiNdiANABY2015.

Wecanaccomplishthisgoalbyfocusingontwoprimarystrategies:unique

growthandacomprehensivewellnessapproach.it’ssimple,really,andall

comesdowntothis—createaplacewherepeoplewanttolive,professionals

wanttowork,andfamilyandcommunitymemberswanttovisit.

Let’sstartbydefiningourcomprehensivewellnessapproach.

WeLLNeSSSTrATegY

it’sourintenttointegratethefollowingsixdimensionsintoeverythingwe

do on a daily basis, including independent living, assisted living, nursing,

employees,andvolunteers.

Spiritual Wellness—This includesnotjustourfaithbase,butalsoour

relationship with Christ, how we value life, and how we perceive death and

theafterlife.ongoingchapelservices,transportationtolocalchurchevents,

weekly Bible-study groups, and on-site pastoral services for both individuals

andfamilieswillallplayakeypartinspiritualwellnessatLutheranHomes,inc.

Physical Wellness—This can change a person’s life, as it prevents illness,

enhancespositiveattributes,andimproveswhatmayneedsomehealing.

Wecantailorspecificexerciseclassestoresidentswhoarebothmobile

andimmobile.Moreimportant—intermsofoverallfitnessfortheolder

adult—ishavingtheproperequipment,space,andprofessionalinstruction

toenhanceone’swell-being.

Social Wellness—This is a key component of the whole-person wellness

philosophy.AtLHi,clubsforjustabouteveryinterest,aswellastripsand

activities,arealreadyabundantlyavailable.

Emotional Wellness—Thisisamajorplayerintermsofbuildingawell-rounded

program and includes pastoral-care services, social services, and other

programsforsupport.

Intellectual Wellness—This deals with knowledge, creativity, and hobbies

inlife.intergenerationalprograms,computerlabs,on-sitelibraries,andour

ongoingpresentationsaddressthisaspectofwellness.entertainingand

educational programs presented to residents will provoke and stimulate

thebraintothink,remember,andultimatelycontinuetoflourishwithaging.

Occupational Wellness—This will promote positive wellness in all who live

andworkatLHi.formanypeople,theworkenvironmentiswherewespend

themajorityofourlives.Creatingandbuildingsoundoccupational-wellness

programsforstaffandvolunteersisthereforekeytooursuccess.

In order to implement this wellness strategy, we’ve created a wellness task force,

whichwillleadtheorganizationunderthefollowingguidelines:

programming—Creatingprogramswithinallsixdimensionsofwellness•

thatareconsideredinnovativeandindustry-leading.

employeeWellness—implementinganemployee-wellnessstrategy •

that continuously reinforces a culture of health and wellness, and

alsopositivelyimpactsemployee-benefitcost.

Communication,education,andMarketing—developingwellness•

communication tools that will market internally to help integrate the

dimensions,andmarketexternallytopromoteourinnovativeprogram.

UNiqUegroWTHSTrATegY

Indiana, particularly northeast Indiana, lacks an all-inclusive provider in retirement

livingandservices.it’saspacethatLHicanreadilyfill.That’swhywe’refocused

elmero’Keefe,ConcordVillageresidentandvolunteer,andizabelleJimenez,Children’sVillagestudent.

elfriedapflueger,VirginiaHarwood,patHormann,andNorwinNahrwold,ConcordVillageresidents.

onaddingtoourumbrellaofhousingandservicestocovermanyareasthatfit

withinourmission.Thisgrowthcouldincludethefollowing:

Home-andcommunity-basedservices—Medicare-certifiedhome-health,•

private-duty,hospice,andrespitecare.

independentLiving—affordablehousing,high-endindependentliving,and•

adevelopmentthatisinlinewiththe“NewUrbanism”concept,onethat

integratesatownwithinatown—atrueintergenerationalneighborhood.

ourfocusoverthenextdecade:

Fort WaynE campus Lutheran Home and Concord Village will continue as is,

marketingatamid-levelmarket-rateapproach.Theadditionofawellnesscenter

wouldenhancethebeautyofthiscampusforyears.inaddition,wewillfocus

onareastoenhancedailylivinginconjunctionwithourwellnessstrategy

duringthenextfiveyears.Herearesomeoffuturegoals:

developawellnesscenter.•

Transformtheexistingmedicalmodelnursingcentertoa •

neighborhoodconceptfocusedonanenvironmentofliving.

improvebothinteriorandexteriorenvironments.•

shEphErd oF thE hill campus Currently this campus is moving along

asitis—anursinghome.However,withourexpansionproject,wewillbe

transformingthisfacilityintoacommunity—onefocusedonengagingourresidents

withlife-enrichingopportunitiesinconjunctionwithourwellnessstrategy.inthe

nextfiveyears,thecampuswilllookdramaticallydifferent:

expandvia60apartmentsofassistedandindependentliving.•

Createroomforduplexconstructiontofilloutthecampus.•

homE hEalth sErvicEs It is our belief that home health will be the primary

conduitforcareforthemajorityofbabyboomers.Livingathomeisjusta

preferredchoiceformostAmericans.fortWayneisprimedforahome-health

agencytiedtoaretirementcommunity.Homehealthalsoprovidesamuch-needed

diversifiedrevenuesource.

additional continuing carE rEtirEmEnt communitiEs campusEs

growthforgrowth’ssakedoesn’twork.However,webelievewecanoffersuperior

retirement-livingoptionsforolderadultswithina100-milefootprintoffortWayne.

Wecanmaximizeandenhanceourreputationbycontinuingtogrow,further

provingthatwearetheexpertinretirementliving.inthenext10years,wehopeto:

AddfuturecampusesinnortheastfortWayne,northwestfortWayne,•

Auburn,andpossiblyadestinationarea(AngolaorSyracuse).

aFFordablE housingThereisahighdemandinAllenCountyforaffordable

housingaimedatseniors.itfitsourmission,itfitsnicelywithahome-health

serviceorganization—itjustmakessense.inthenext10years,wehopetofind

the capability to build a small apartment building within the Fort Wayne city limits

everytwoyears.

ASTroNgfoUNdATioN

These strategies can’t succeed without a strong foundation on which to build,

includingfinancialstrength,employerofchoice,andourChristianphilosophy

basedontheLutheranHeritage.We’llcontinuetofocusonthesethreecoreareas:

1. financialStrength—it’snecessarytohaveapositivebottomline

inordertocontinueourmission.infact,it’sabsolutelycriticalthat

wehavestrengthfinanciallytorealizeourvision.Thefollowingwill

strengthenourfinancialpositionsignificantly:

Createafoundationandconsistentfundraising.•

expandShepherdoftheHill.•

redesignLHinursingcare.•

Brandourselvesasexpertsinretirementliving •

withanewidentitypackage.

2. employerofChoice(quality)—re-definingqualityoflifeforourresidents

is our target, making our communities a place where people want to

live.oneofthebestwaystoaccomplishthisgoalisbybecomingthe

employer of choice, aiming at hiring those who are self-motivated and

self-disciplined, those who wake up every day, compulsively driven to

dotheirbestbecauseitissimplypartoftheirdNA.Wemustfocuson

improvingretention,providingafairwagepackageandanexcellentbenefit

package,andstriveforjob-satisfactionlevelsthatexceedexpectations.

TracyVance,staffingassistant,NursingServices,LutheranHome.

erwinandgretchenfuhrmann,ConcordVillageresidentsandvolunteers.

edithBlessing,LutheranHomeresident,andJenniferBryant,NursingServices.

Here’showwe’llgetthere:

employeeAppreciationTeam—Aimedatbringingfuninto •

workandappreciatingouremployees.

employeeWellness—partofourwellnessstrategy,thiswill •

haveagreatimpactonretention,recruiting,andmorale.

Leadershipdevelopment—Wewilldevelopourleaderstobuild•

a culture of effectiveness that aligns both satisfaction and

engagement.ourleaderswillfocusontheirteams,maximizing

employeeswhodon’tlookattheirjobasjustajob,butoneof

makingadailydifferenceinthelivesofourresidents.

3. Christianphilosophy—rootedintheLutheranHeritage,we’ve

developed a Christian philosophy that permeates everything we’ve

doneandcontinuestobeatthecenterofeverythingwewilldo.our

wellnessstrategyrecognizesthespiritualdimensionasextremely

importantforolderadults.

AfiNALTHoUgHT

Yes,it’sbeenayearofchanges.Butwecan’tstophere.Thenext75yearshold

suchpromise.LHiisoneofthepremierretirement-livingorganizationsinindiana.

it’sourgoaltobecomeknownasexpertsinretirementlivingandretirement

services,butnotjustforthesakeofaccomplishment.everythingwearedoing

andplanningtoaccomplishisfocusedonhelpingolderadultslive.Withyour

help,wecanmakethatdreamareality—together.

Bruce BlalockPresident and CEO

reVeNUe YeAreNd8/31/08 YeAreNd8/31/07

residentServices 19,025,372 19,937,023

Grants 344,567 328,580

Contributions 569,946 735,612

investmentreturns (361,256) 784,453

Other 741,620 502,322

total 20,320,249 22,287,990

ExPENSES YeAreNd8/31/08 YeAreNd8/31/07

WagesandBenefits 14,565,967 14,638,689

Supplies, Food, Other 5,834,693 5,696,703

depreciationandAmortization 1,394,960 1,393,696

interestexpenseandrelatedfees 176,979 251,031

provisionforUncollectibleAccounts 204,575 500,000

total 22,177,174 22,480,119

ASSeTS

Cash and Short-Term Investments 4,116,071 4,232,992

Accountsreceivable 1,973,398 2,896,750

property,plant,andequipment,Net 16,072,666 16,073,326

otherAssets 4,117,720 4,896,148

total 26,279,855 28,099,216

LiABiLiTieSANdNeTASSeTS

debt 4,521,349 4,848,154

Other Current Liabilities 2,724,976 2,168,825

Other Liabilities 2,220,997 2,412,779

NetAssets 16,812,533 18,669,458

total 26,279,855 28,099,216

2007—2008fiNANCiALreporT

AtShepherdoftheHillinKendallville:Tameraparker(standing),directorofNewAdventuresearlyLearningCenter, withoneofthecenter’sstudentsandLoisStrunk,apersonalcaregiverforaresident.

president’s report 2008

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