March 2001

Board Meeting Highlights

The following is a summary of reports presented and issues discussed at the December 2000 meeting of the Catholic Health Initiatives Board of Stewardship Trustees

Status of St. Joseph Healthcare System The Board reviewed the status of St. Joseph Healthcare system of Albuquerque, N.M., and the challenges that exist within its market. These challenges include an over capacity of health care facilities and acute care beds; a shortage of health care personnel; and the extremely limited number of people in Albuquerque who are not currently covered by an existing provider/insurer. The Board also noted that St. Joseph supports several excellent community programs, including health care for migrant workers and the homeless and outreach programs to help ensure healthy pregnancies. Governance Committee Report A new peer evaluation tool will be used by members of the Board to evaluate their colleagues. The Board approved the proposal for periodic conference calls between geographically proximate market-based organization board chairs and chief executive officers and CHI leadership, including the Catholic Health Initiatives Board chair, chief executive officer, chief operating officer, chief financial officer, chief administrative officer and appropriate senior vice presidents of operations. Summaries of the key findings from the two governance sessions held at the National Leadership Conference in September 2000 were distributed to MBO board chairs and CEOs in January 2001. Finance Committee Report The Board approved the consolidated financial statements for Catholic Health Initiatives for the period ended September 30, 2000. Key performance indicators, including volume, length of stay, expenses, days of cash and investment income were favorable for the first quarter of fiscal year 2001. The committee commended the efforts of leaders throughout Catholic Health Initiatives for the improvement in the organization’s operating performance. Investment Committee Report The investment committee is working with the new investment consultant for Catholic Health Initiatives, Summit Strategies Group of St. Louis, Mo. An investment audit completed by Catholic Health Audit Network resulted in a satisfactory final report. Catholic Health Initiatives is progressing toward its goal of having 10 percent of investment funds in alternative investments. Transfer of Eastern Facilities Contingent upon a successful negotiation, the Board authorized the leaders of Catholic Health Initiatives to proceed with the proposed transfer of five market-based organizations — St. Agnes Medical Center and Nazareth Hospital, Philadelphia, Pa.; St. Mary Medical Center, Langhorne, Pa.; St. FrancisHealthcare Services, Wilmington, Del.; and St. Francis Medical Center, Trenton, N.J. — to Catholic Health East. Mission Assessment Status Report It was reported that within market-based organizations that have completed the mission assessment process, high-performing areas include service to the poor, healthy communities and core values integration, while ethics committees and diversity are areas for improvement. Members of other resource groups are joining Mission Resource Group leaders to conduct mission assessments at market-based organizations.