November 2008

CHI Responds to Economic Situation

CHI’s leadership is aggressively responding to the downturn that is affecting all sectors of the economy. Like other health care systems, CHI is seeing reduced patient service revenues. The tightening of credit markets and volatility of investment markets has also reduced the amount of money available to borrow for planned debt. To be responsible stewards of CHI’s resources and keep the ministry stable, leadership has developed an action plan focused on:
  • Improving operational performance across the system.
  • Revising the capital budget to fit within capital constraints.
  • Reducing the national office budget by 10%.
“We’re confident that CHI can regain a level of financial performance that will sustain and grow the ministry,” said Michael Rowan, executive vice president and chief operating officer. CHI has also shared information with employees about how the economic situation affects the CHI Retirement Plan (pension plan). The plan is founded on and managed according to sound, long-term investment principles. These principles are defined by a written policy overseen by the CHI Investment Committee and governed by the Board of Stewardship Trustees. The plan assets are diversified and managed through multiple investment managers, which helps minimize the effect of market fluctuations. Benefits accrued by employees who participate in the plan do not change based on the plan’s investment returns. CHI’s Employee Savings Plan and 457(b) Plan also have formal investment policies and are governed by the Board of Stewardship Trustees. CHI employees can find more information about the CHI Retirement Plan on the HR/Payroll Connection Web site available via Inside CHI. For more information, contact Troy Lindon at Back