May 2002

Board Meeting Highlights

The following is a summary of reports presented and issues discussed at the March 2002 meeting of the Catholic Health Initiatives Board of Stewardship Trustees.

Finance Committee Report The Board approved the consolidated financial statements for Catholic Health Initiatives for the period ended December 31, 2001 and the period ended January 31, 2002. The Finance Committee acknowledged the strong financial performance of Catholic Health Initiatives for the first six months of the 2002 fiscal year and significant improvement in financial results at market-based organizations during the past two years. Investment Committee Report The Investment Committee approved the hiring of two hedge fund managers to manage approximately $140 million in the Operating Program. The committee also approved the termination of Deutsche Asset Management as a fixed income manager, because the reduced size of the fixed income allocation among the three investment portfolios no longer supports the need for three fixed income managers. PIMCO and Western Asset will continue to manage Catholic Health Initiatives’ fixed income portfolios. Treasury Report The Catholic Health Initiatives investment programs posted sharp gains during the second quarter of fiscal year 2002 due to a strong rebound in equity portfolios. Although the investment programs are ahead of benchmarks, investment income was below budget for the first half of the fiscal year. Updates on Market-based Organizations
  • St. Catherine’s Residence, North Bend, Ore.: Catholic Health Initiatives is looking for a buyer for St. Catherine’s.
  • North Dakota and Western Minnesota: Catholic Health Initiatives is investigating a possible relationship with a hospital in the Upper Midwest. Discussions are also underway with another health care system regarding a non-acute care facility that serves adolescents with developmental disabilities.
  • St. Joseph Health System, Albuquerque, N.M.: Catholic Health Initiatives is negotiating with Ardent Health Services as a potential buyer for St. Joseph. Catholic Health Initiatives is working with the St. Joseph Foundation Board to begin the development of a non-institutional ministry in New Mexico.
Quality Committee Report The committee recommended and the Board approved five quality indicators that market-based organizations will report to the Board of Stewardship Trustees. The quality indicators include:
  • Medication errors per adjusted inpatient admission.
  • Falls with injury per adjusted inpatient admission.
  • Congestive heart failure patient receiving prescription for angiotension-converting enzyme inhibitor at discharge.
  • Community-acquired pneumonia patients receiving antibiotics within four hours of arrival.
  • Eligible acute myocardial infarction patient receiving aspirin within 24 hours of arrival (before or after arrival).
One-quarter of market-based organizations will report on these indicators by June 2002, with a goal of 100 percent reporting these indicators to the Board of Stewardship Trustees by June 2004. Pension Administration The Board approved:
  • The establishment of a deferred compensation plan for selected Catholic Health Initiatives employees pursuant to Internal Revenue Code Section 457(b), which will allow employees to put money into retirement savings beyond what is allowable in their 403(b) plans. The 457(b) plan will initially be offered to Catholic Health Initiatives executives (market-based chief executive officers and national vice presidents and above). Catholic Health Initiatives anticipates offering the 457(b) plan to all employees at a future date.
  • The delegation of authority to accept new employers into the Catholic Health Initiatives Retirement Plan to the Retirement Committee.
  • The appointment of Elizabeth Wendeln, SCN, to the Retirement Committee effective March 6, 2002.