2008 annual report
to the community
Portage Health Board of Directors
2008
Martin Iskra Board Chair Jeanne Kurtz Vice Chair Pichai Sripaipan, MD Secretary
annual report to the community
Steve Zutter Treasurer
Table of Contents
James Bogan President and CEO Kathy Archambeau Ellen Horsch Kristine Jukuri David Kass, MD Kirk Lufkin, MD
02 03 04 05 06
Letter from the CEO Mission & Vision Strategic Goals A Better Night’s Sleep Making Great Strides
07 09 10 11 13
Rooted in Our Community, Committed to Excellence No Place Like Home Growing in Our Community
Dave Mechlin Mike Neuman, MD, PhD Tim Sears, MD Bruce Trusock, MD
Portage Health Executive Management Jim Bogan President and CEO
Community Outreach
Kirk Lufkin, MD Senior Vice President - Medical Affairs and CMO
The Financial Year
Brian Donahue Vice Predient - Finance and CFO Diane Gadomski Vice President - Medical Group Betty MacInnes Vice President - Quality Management Karin Van Dyke Vice President - Communications and Human Resources Deb Young Vice President - Patient Services
letter from the CEO
This 2008 Portage Health Annual Report to the Community is one of the ways we highlight and inform you of our annual accomplishments in the areas of clinical quality and service excellence, human resources, financial stability, growth and community outreach. In these pages, you will read about innovative new approaches in healthcare and heart-touching stories of how our friends and neighbors have achieved significant improvement in their health, as well as Portage’s continued growth, financial
stability and transparency as the area’s leading non-profit healthcare organization. In addition, we will update you on the challenges we face in light of the economy and inadequate reimbursement for health services.
rest assured, Portage Health is honored to have earned the trust of you and your family in providing the best possible healthcare in the area. We are proud to be Here for Life. All the best,
The focus of this year’s Annual Report is the centerpiece highlighting key examples of clinical quality, service excellence, new programs and our highly trained and qualified staff. We will tell you about our new hospitalist program, an innovative and intensive approach that strives to provide the best possible medical care to our inpatients. Portage Health is proud to have won several quality awards this year. Last but not least, we want to assure you that Portage Health will continue to move forward as we provide the highest quality healthcare services available in our community. We are actively committed to health-related partnerships that can deliver new clinical services to the region. Please
Jim Bogan, FACHE President and CEO Portage Health
Photo courtesy: Brockit Inc.
Dear Friends: Portage Health … Here for Life … These strong, solid words demonstrate our commitment to you, and to the community of the western Upper Peninsula. Now, more than ever, in these uncertain and challenging economic and political times, you can count on Portage Health to provide quality healthcare to you and your family.
02
mission & vision Mission To improve the health of our community.
Vision To be the first place where people come when they need healthcare. To be a leader in promoting healthy lifestyles.
Photo courtesy: Portage Health Communications
To be the place where people want to work.
03
Clinical Quality & Patient Safety Provide safe, quality healthcare
Service Quality
strategic goals These goals signify our committment to you.
Create a service-oriented culture which exceeds our patients’ expectations
Community To initiate, respond, partner and provide effective community outreach services in the Western U.P.
Human Resource Provide a positive workplace environment with strong retention and recruitment initiatives
FInancial Stability Meet the mission of the organization with a financial plan that shows strong financial performance.
GRowth Continue to meet the healthcare needs of the community through either new or enhanced clinical programs and services.
04
a better night’s sleep For Greg Budweg, the quest for great sleep began with a picture in a magazine. While waiting to see his doctor a few years ago, the Hubbell man flipped to a photo of a woman sleeping soundly. Greg ripped out the picture and showed it to Dr. Joseph DellaValla. “I want to sleep like this, doc,” he said. Greg spent his nights tossing and turning. “I’d wake up more tired than I was when I went to bed,” he said.
Photo courtesy: Brockit Inc.
Greg worked with Dr. DellaValla and the team at the Portage Health Sleep
05
“I’ve got a lot more zip now,” says restaurant owner Greg Budweg.
Disorders Center to achieve his goal of healthy sleep. An overnight sleep study confirmed that Greg was one of the 40 million Americans who have a sleep disorder. Obstructive sleep apnea (OSA), which causes temporary stoppages in breathing, was robbing Greg of the rest he needed, sapping his energy and jeopardizing his health. OSA and other sleep disorders, including snoring and insomnia, can contribute not only to sleepless nights, but also pose serious risks to physical and mental health, said Dr. DellaValla. He is one of just three physicians in the Upper Peninsula who has earned board certification in Sleep Medicine. In the short term, people with OSA frequently are sleepy during the day, Dr. DellaValla said. This makes for poor quality of life, and has been shown to dramatically increase the risk for car crashes. In the long term, OSA has been associated with an increase in high blood pressure, diabetes, depression, stroke, heart attack and sudden death.
Greg began using a CPAP machine, a device that regulates his breathing while he sleeps. The change in the quality of his sleep – and in his life -- has been gradual, but profound. Sleeping well has boosted Greg’s energy level at home and at work at Jim’s Pizza, the restaurant he owns in Hancock. “Getting enough sleep makes a big difference,” he said. In 2006, Greg was one of the Sleep Disorders Center’s first patients. In 2008, the growing center moved into a brand-new location in Hancock. The state-of-the-art facility offers amenities that you won’t find at any other sleep lab in the western Upper Peninsula, including private rooms furnished with Sleep Number adjustable beds and plasma televisions. Greg said that he would encourage anyone who has trouble sleeping to get checked out at the Sleep Disorders Center. “Slowly but surely,” he said, “you’re going to feel a lot better.” For more information about Dr. DellaValla and the Sleep Disorders Center, please call (906) 483-1950 or visit our Web site at portagehealth.org\sleep.
making great strides
Each step is an achievement for this bright, energetic little girl. Kiya was born with spina bifida, a nonprogressive spinal disorder that can cause loss of sensation and muscle weakness in the lower part of the body. She wears braces from her hips down to help her walk. Kiya began physical therapy with Portage Health Pediatric Rehabilitation in early 2008, soon after the facility acquired the LiteGait, a partial-weightbearing gait therapy device. Portage Health Rehab is the first facility in the Upper Peninsula to use the LiteGait for kids. Each week, Kiya works with physical therapist Monica Aho and physical therapist assistant Cynthia Stites, walking on the LiteGait and doing other exercises to improve her motor skills. Within six months of starting the program at Portage Health Rehab, Kiya
had made tremendous progress, said her mom, Michelle Bordeau. The Houghton woman, her husband, Andy, and her 6-year-old son, Chase, have witnessed Kiya’s success at the physical therapy sessions.
For more information about Portage Health Pediatric Rehab, please call (906) 483-1888.
“Since beginning the LiteGait, Kiya is walking much more consistently, with more proper steps than before, and tolerating walking for much longer,” Michelle said. “When she started here, she couldn’t do a lot of the things she can do now.” The LiteGait is a valuable tool that can help improve the skills of children who face a variety of challenges, Monica said. “Kiya was referred here specifically to try the LiteGait, and we’re really excited about her progress,” she said. “Kiya has made great strides in a short amount of time.” For Kiya, however, the visits to Portage Health Rehab aren’t about work, especially when she’s singing along with the music she loves. “The LiteGait and the other exercises work Kiya’s muscles without her even knowing it,” Michelle said. “Kiya just thinks it’s fun.”
Physical therapist assistant Cynthia Stites works with Kiya on the LiteGait.
Photo courtesy: Brockit Inc.
When Kiya Bordeau gets on the LiteGait at Portage Health Rehab in Hancock, she knows it’s time to sing. The 3-year-old asks her mom to pop in a mix CD, then belts out her favorite Hannah Montana song as the device assists her in walking on a treadmill.
06
rooted in our community ... For more than 100 years, Portage Health has provided excellent healthcare for our community in the western Upper Peninsula. But we don’t believe in resting on our laurels. At Portage Health, we are continually making strides to improve quality, service and safety. In 2008, as in years past, we have sought out the best new
technologies, equipment and techniques and the most highly trained staff to make sure that we remain at the cutting edge of healthcare. Our dedicated, talented staff is our most valuable resource. Without the hard work of each member of our team, we could not fulfill our mission to improve the health of our community.
Photo courtesy: Brockit Inc.
Our new hospitalist program helps us keep pace with the most progressive thinking in healthcare. By concentrating solely on full-time, inpatient care, Dr. Jeff Huotari and Dr. Lori Vaughan work with our team of clinic physicians to give patients in our hospital the best possible care.
07
As part of our medical care delivery team, we have grown our staff of midlevel professionals. These experienced Physician Assistants and Nurse Practitioners offer you skilled, efficient care right when you need it – in our Emergency Department, or in our Family Medicine clinics. Our highly credentialed and trained medical staff never stops learning, and participates in annual training to stay on top of healthcare innovations. In 2008, we became the first hospital in the western Upper Peninsula to offer the Delta Reverse Shoulder Replacement. Dr. Darin Leetun, the orthopaedic surgeon who brought the state-of-the-art technique to Portage Health, also celebrated a milestone of another procedure he introduced to the region. In September, Dr. Leetun held a celebration for his patients to mark the first 100 Oxford knee replacements that have been performed at Portage Health. Physician leadership is paramount to Portage Health, and helps to lead and drive the charge to improve patient care. To lead these efforts, Dr. Kirk Lufkin, who has served our organization for more than a decade, stepped into
Dr. Jeff Houtari provides full-time, inpatient care.
... committed to excellence As we continue to focus on clinical quality and service excellence, there is one thing that will never change at Portage Health - our commitment to exceed your expectations every time you visit us. Our staff works hard to ensure that you receive the top-notch service you have come to expect and deserve. Thank you to everyone who has filled out a patient satisfaction survey or contacted us to let us know about your experience at Portage Health. Your feedback helps us learn what matters most to you and your family, so we can be more responsive to your needs. In the past year, we’ve launched a variety of initiatives focused on serving you better. We are proud to say that our efforts have been acknowledged with several prestigious healthcare awards in 2008.
award is given to facilities that show the most improvement over two years in overall patient satisfaction. Portage Health Medical Group was honored for implementing several programs that significantly enhanced the quality of service received by its patients. Portage Health also recently received the Michigan Peer Review Organization (MPRO) 2007 Governor’s Award for Improving Patient Safety and Quality of Care in the Hospital Setting. We earned this honor for our successful efforts to improve surgical care and provide appropriate care measures. As we enter 2009, we are anticipating a prosperous year in which we will build upon our roots in the community and further strengthen our commitment to growth, excellent service and quality healthcare. Most of all, we are looking forward to continuing to serve you and your family. Photo courtesy: Brockit Inc.
the new role of Senior Vice President of Medical Affairs and CMO in 2008.
In November, Portage Health Medical Group was one of just three medical practices in the nation to receive the 2008 Press Ganey Compass Award. The Hospitalist Dr. Lori Vaughan is part of your healthcare team.
08
no place like home As Frieda Derocher Guilbault will tell you, she is not your average old person. The Houghton woman, who turned 100 in August 2008, is a proud lifelong resident of the Copper Country and a dynamo in her family and her community.
Portage Health’s home care professionals.
Frieda has lived in the Douglass House Apartments in downtown Houghton for more than a decade. She loves her home and values her independence, and she maintains both with the help of Portage Health Home Services.
Margarita Lebeliuniene, a Home Services caregiver, gives Frieda a hand with various tasks each week, including housecleaning, coifing her hair and preparing meals. Frieda, who is a cookbook author, has taught Margarita how to make pasties and other UP specialties.
Photo courtesy: Brockit Inc.
Caregivers visit Frieda several days a week to assist her with housework and personal care, and private duty nurses stop in periodically to check on the state of her health.
09
Frieda said that she appreciates all the help she receives from
“Now that I’m older, it’s not as easy for me to do everything I need to do,” she said. “The work that they do takes a lot of pressure off of me.”
“I’m so happy to work with Frieda,” Margarita said. “I especially enjoy cooking with her.” Portage Health Home Services and Portage Health Home Care & Hospice provide a variety of services to homebound people throughout the western Upper Peninsula. Those who receive care range from active seniors such as
Frieda who need some help around the house to people who require daily skilled medical care. Home Services offers private duty nursing, homemaking services, personal care, errand services and companionship. Home Care & Hospice provides skilled nursing, physical therapy, occupational therapy, speech therapy and certified nurse aide and social work services, as well as hospice care for terminally ill patients and their families. Portage Health’s home care professionals tailor their services to meet the individual needs of each client, said Director Tammy Carroll. “Our purpose is to help people live as independently as possible and to keep them in their homes,” she said. Frieda said that her advancing age doesn’t keep her from living her life to the fullest, thanks to the Home Services team. For more information about Portage Health Home Services and Portage Health Home Care & Hospice, please call (906) 483-1160.
“I couldn’t get by without them,” Frieda said.
growing in our community Here at Portage Health, we’re committed to our partnership in the community. We are fully invested in creating an economically viable community. Our growth responds to the needs of our area.
Growing Our Team
Growing Our Services
600
Level III Trauma Status Verification
500
2008
2007
2006
2005
2004
400
300
Consolidated number of Full Time Employees (FTEs) in the healthcare workforce at Portage Health. More FTEs translates to more jobs in the community. Portage Health is the area’s second largest employer.
Growing Our Facilities Building Renovations
$900,000
Achieved Verification status with American College of Surgeons for Trauma Level III
Dialysis Suite, Sleep Lab, Infusion, Chemotherapy, Home Medical Equipment, Information Technology and Business departments
EMS service
Technology and Equipment
Formed a joint partnership with Aspirus Keweenaw to become Mercy EMS
• Intravenous (IV) pumps upgraded to wireless, programmable monitoring system
Dialysis Center Almost a half million dollars was spent on the facility to meet increased growth
• Surgery/operating room technology and equipment upgrades
Cardiac Rehab Department New cardiac echo ultrasound system, providing a higher level of quality diagnostics
$1.2 M
• Cardiac echo ultrasound equipment
• Clinical information technology upgrades
$2.8 M
Inpatient Unit New Alaris Wireless Pump and Monitoring system insuring better patient monitoring and patient safety Growing services ensure that the people of the Copper Country get the best care available to them.
In 2008, Portage Health spent $2.8 million on growing our facilities to provide better service to the community.
10
community outreach Portage Health has set down deep roots in the western Upper Peninsula during more than a century of serving its residents. As a community-owned and operated healthcare organization, community benefit is an integral part of our organization, and is essential to the well-being of the community. To this end, Portage Health provided $9.4 million in community benefit programs such as direct patient care in our latest reporting period, fiscal year 2007 (July 1, 2006 – June 30, 2007). Examples of our community benefit programs include free and discounted health screenings, health education, unfunded patient care (financial assistance, bad debt and medicare/medicaid underfunding), and sponsorship of community events. Here’s a look at a few examples of the many ways we give back to our community:
11
Free & Discounted Health Services
Community Flu Shot Clinics We seek to forge strong partnerships with local organizations that share our mission to improve the health of our community. Each autumn, Portage Health collaborates with several of our partners to offer Community Flu Shot Clinics. At these events, hundreds of residents receive convenient, low-cost influenza vaccinations that help ward off serious illness.
Health Education
Living Healthy Series Maintaining a healthy lifestyle is a lifelong commitment. We created the Living Healthy series of classes, activities and events to promote a comprehensive approach to wellness. The series, which is designed to help people learn how to adopt simple changes that contribute to better health, includes healthy cooking classes, grocery store tours and weekly fitness outings with the Lake Effect League.
Financial Assistance Like other non-profit healthcare organizations, Portage Health provides financial assistance to those patients who need such help. The dedicated staff who work in our Patient Access Centers and Business Services office assist patients in completing the necessary paperwork to address these needs. The total amount attributed to financial assistance, bad debt, and losses due to Medicare/Medicaid under-funding account for the majority of our community benefit dollars each year.
Arts & Culture
Keweenaw Symphony Orchestra with the Bergonzi String Quartet A vibrant arts and culture scene in our area provides the members of our community with fuel for a happy, healthy life, and also aids us in our ongoing efforts to recruit talented medical professionals. In October, Portage Health sponsored an inspiring concert by the world-renowned Bergonzi String Quartet, performing with one of our area’s own groups of accomplished musicians, the Keweenaw Symphony Orchestra.
Camp 911 instructors teach sixth graders about safety
Helmet safety expert visits classrooms Women’s mountain bike events build confidence on the trails Labor Day Bridge Walk a success Health Occupation Students of America members give presentations
Dr.Trusock collaborates with concussion specialist in community presentations
Portage Health competes in broomball at MTU Winter Carnival
the financial year
Photo courtesy: Brockit Inc.
As a community-owned, non-profit healthcare organization, we are determined to deliver to our community the best quality care, with the highest level of compassion and service, utilizing the most advanced technologies available, at the highest level of efficiency and productivity.
13
To respond to and lead our community’s expectation for excellence in healthcare, successful financial performance is essential. Despite the challenging reimbursement and competitive healthcare environment, Portage Health reported strong financial results in 2008. We believe that financial success is determined by quality. As a result, Portage Health is investing in capital improvements needed to enhance quality of care, productivity and patient satisfaction.
Portage Health 2008 Revenue
Portage Health 2008 Expenses
Patient Service
$105,533,580
Salaries
$31,008,772
Apothecary
$9,079,180
Benefits
$8,235,925
Other Operating Revenue
$4,020,180
Supplies
$17,424,717
Other Income
$673,972
$11,534,635
Financial Assistance
($1,449,184)
Facility Maintenance, Utilities, Insurance and Support Services
Bad Debt
($884,275)
Building /Equipment Depreciation
$4,231,081
Medicare/Medicaid/Commercial Insurnace Discounts
($38,908,880)
Interest Expense
$1,031,335
Investment in Future Needs
$4,598,108
$78,064,573
(Facilities, Technology, New Services)
Funds Available
Funds Used
$78,064,573
14
four convenient locations ... The Portage Health 2008 Annual Report to the Community was compiled by the Portage Health Communications Department.
Copy and Editing
Connie Greenleaf cgreenleaf@portagehealth.org Cynthia E. Hanifin chanifin@portagehealth.org Karin Van Dyke kvandyke@portagehealth.org
Layout and Design
Jessica Brassard jbrassard@portagehealth.org Victor Harrington vharrington@portagehealth.org
Hancock Campus
Lake Linden Campus
Houghton Campus
Ontonagon Community Health Center
500 Campus Drive Hancock, MI 49930 (906) 483-1000
600 MacInnes Drive Houghton, MI 49931 (906) 483-1860
945 Ninth Street Lake Linden, MI 49945 (906) 483-1030
751 S. Seventh Street Ontonagon, MI 49953 (906) 884-4120