June 2002

Board Meeting Highlights

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

Board Education Session The Board discussed the book "Nickel and Dimed: On Not Making It in America," by Barbara Ehrenreich, as a stimulus for thinking about new ministries within Catholic Health Initiatives. Finance Committee Report The Board approved the consolidated financial statements for Catholic Health Initiatives for the period ended March 31, 2002. The statements showed both improved financial performance and financial position, including an increase in total assets and total days of unrestricted cash. The Board approved a resolution for Alegent Health and Immanuel Medical Center, as parties to the joint operating agreement with Alegent Health, Omaha, Neb., to join the Catholic Health Initiatives credit group as designated affiliates. The Board approved a resolution for an indult request to increase Catholic Health Initiatives’ debt authorization from $2.25 billion to $3.0 billion. The request was made to meet the borrowing equirements of Catholic Health Initiatives as outlined in the preliminary 2003-2007 long-range financial plan. The additional debt will fund strategic capital investment opportunities, such as master facility renovations and replacements, major equipment purchases and new market expansions. The Board also approved a resolution for Catholic Health Initiatives’ 2002 financing program, which authorizes the issuance of tax-exempt debt not to exceed $350 million, in the fall of 2002. Treasury Report The Catholic Health Initiatives investment programs posted modest returns of less than 1 percent in the quarter ended March 31. Investment returns have stabilized following the sharp equity market sell-off in the first quarter. Overall, the Catholic Health Initiatives investment programs continue to fare well in comparison to market benchmarks. Sponsorship and Governance Committee Report The Board approved resolutions recommending Kevin Fickenscher, MD, Amata Miller, IHM, PhD, and Herbert J. Vallier, senior vice president of human resources for Revlon Consumer Products Company, New York, N.Y., to the Sponsorship Trustees for election to the Board of Stewardship Trustees for three-year terms expiring June 30, 2005. The Sponsorship Trustees then approved the election of Fickenscher, Miller and Vallier as Stewardship Trustees. The committee regretfully accepted the decision of Robert Johnson not to seek reappointment to the Board. The Board also approved a resolution to amend the bylaws of Catholic Health Initiatives. The amendment provides for the Chair of the Sponsorship and Governance Committee to preside over Board meetings if the Board Chair or Vice Chair is not available.