20
two decades of growth Community Benefit Report MercyHealthSystem.org THE STORY OF MERCY HEALTH SYSTEM healing in the broadest sense

healing in the broadest sense - Mercy Health System

  • Upload
    others

  • View
    3

  • Download
    0

Embed Size (px)

Citation preview

two decades of growth

Community Benefit ReportMercyHealthSystem.org

THE STORY OF MERCY HEALTH SYSTEM

healing in the broadest sense

Dear Friends,

Healing in the broadest sense. These powerful words encapsulate the Mercy Health System Mission and our organization’s commitment to our patients and community members. Healing in the broadest sense is what our3,856 employees, who we call partners, strive for each andevery day.

But what does “healing in the broadest sense” truly mean? Itmeans promoting physical, emotional and spiritual healing.Encouraging greater family unity. Providing compassionate support. Helping patients and loved ones gain acceptance of amedical condition.

In this Community Benefit Report you will see how Mercy part-ners give of themselves to serve our community each and everyday. You will learn of Mercy’s innovative services and committed professionals, and our dedication to community outreach and to meeting the needs of the underserved. You willsee Mercy’s incredible transformation over the last 18 years froma stand-alone hospital to a fully integrated health care deliverysystem serving over 1,000,000 patients each year.

As we’ve grown in size, we have increased the breadth anddepth of care provided to our patients. We continually strive toimprove the quality of care you receive, stretching ourselves toexceed the most stringent standards.

We are committed to providing our patients with the latest tech-nology, the best medical teams and expert, compassionatecare. We have done all of this while remaining conscious of cost. In fact, our administrative cost as a percent of total budget is 10%, which is well below the national average.

These accomplishments have been recognized throughout thenation. Over the last two decades, Mercy has been honoredwith over 40 national awards for its quality, service and growth,including Wisconsin’s highest quality award, the WisconsinForward Governor’s Award of Excellence. Just last fall, Mercywas ranked #1 on the AARP 2006 Best Employers for WorkersOver 50 list and was one of the Working Mother Top 100 BestCompanies.

While these honors typify our attention to providing quality services, excellent patient care and work/life balance for ourpartners, they also reflect our desire to provide you with exceptional health care services. I invite you to read through thisreport and learn more about Mercy and its mission of healing inthe broadest sense.

Sincerely,

Javon R. BeaPresident/CEO

letter from the president/ceo[ ]Dear Friends,

It is a privilege to serve on the Mercy Health SystemBoard of Directors and to be a part of this organization’sincredible transformation over the last 18 years. I havealways enjoyed volunteering in the community, and I amhonored to be able to serve my friends and neighborsthrough Mercy Health System.

Creating this report, I had the opportunity to reflect on aprinciple responsibility of a volunteer Board of Directors,which is to recruit and retain the best chief executive officer possible to assure the success of an organization.I had the privilege almost 18 years ago of leading therecruitment of Mercy’s first lay chief executive officer inMercy’s 100-year history, Javon Bea. I speak on behalfof the entire Board of Directors when I say that we couldnot have envisioned the award-winning transformationthat lie ahead when we chose Javon.

On the following pages, you will read about Mercy’stransformation from a single, stand-alone hospital primarily serving Janesville to a large health system with63 facilities serving 24 different communities throughoutsouthern Wisconsin and northern Illinois.

In 1989, Mercy had 89,000 patient visits a year andemployed 589 employees, who we call partners. Mercy now sees over 1,000,000 patients annually, andemploys 3,856 employees/partners. Mercy hasbecome the largest employer in Rock County, and hasadded nearly $1.1 billion in industry economic sales,which has created an additional 1,200 jobs in ourWisconsin and Illinois service area, beyond the almost3,300 new jobs at Mercy. Truly, Mercy has been amajor economic engine for over the last two decades.

This report is a unique opportunity for me to fondly reminisce about our past, enjoy our present success andboldly look to the future. We have experienced muchchange and growth over the years, but one thing has always remained constant: our desire to provideexceptional health care services to our patients and support our local communities.

Sincerely,

Rowland J. McClellanChairman of the Board

letter from the chairman[ ]

who we areour mission

The Mission of Mercy Health System is to provide exceptional health care services, resulting in healing in the broadest sense.

our values• healing in the broadest sense • patients come first • treat each other like family • strive for excellence

our vision

[ ]

Quality – Excellence in patient care• Assure excellence in patient care using best practice

benchmarks to ensure continuous improvement• Promote a culture of patient safety • Uphold an effective compliance program• Provide state-of-the-art information systems and technology

Partnering – Best place to work• Cultivate high partner satisfaction by being a best place to work • Recruit and retain board certified physicians and other qualified partners • Promote a safe and healthy work environment• Foster a learning organization

Service – Exceptional patient satisfaction• Provide exceptional patient service through measured customer satisfaction• Continually improve integrated programs and services based on patient need • Promote educational programs and health initiatives to improve community

quality of life• Sustain competitively priced services

Cost – Long-term financial success• Continue growth initiatives and integration strategies• Emphasize cost containment through efficient operations• Enhance access to capital• Promote long-term financial success

who we helpEnhancing the health of our communitiesMercy Health System is committed to caring forits patients and community members. Today,Mercy receives over 1,000,000 patient visitsand provides thousands of health screenings,community education classes and outreachevents each year.

Uncompensated care and free servicesLast year, Mercy Health System provided morethan $28 million in uncompensated care andfree services to local communities.

The House of Mercy Homeless Center The House of Mercy Homeless Center inJanesville is one of the only shelters of its kindoperated by a health system. Developed afterJavon Bea noted that a growing number ofemergency room patients were listing the familycar as their primary address, the House ofMercy can shelter up to 25 women and chil-dren for 30 days at a time. Since its inception,the Center has sheltered more than 3,500 indi-viduals for over 80,000 shelter nights.

Free and low-cost medical servicesProviding affordable care is of the utmost impor-tance at Mercy. We believe all individualsshould have access to quality health care. TheCommunity Health Center at Mercy ClinicSouth in Janesville, in conjunction with theCommunity Health Center, Inc., of Beloit, provides low-cost care to under-insured anduninsured individuals. Mercy physicians alsovolunteer their time at local free clinics, including HealthNet of Janesville, the BeloitArea Community Health Center, the FamilyHealth Partnership Clinic in Woodstock. Inaddition Mercy is a large supporter of theMcHenry County Breast Cancer Task Force,which helps uninsured and underinsuredwomen receive mammograms, and the ChildAdvocacy Agency of McHenry County that provides support services to abused and neglected children.

Support groupsPatients with chronic illness and injury often benefit from talking with other patients in similarsituations. Mercy offers nearly 50 supportgroups in Wisconsin and Illinois at no or low cost.

Health screenings and community education classesEach year Mercy provides thousands of freeand low-cost community education programsand health screenings to residents in the areasit serves. Classes, workshops and screenings are based on patient requests and needs identified by our providers in various areas.Screenings include blood pressure, blood glucose, cholesterol, bone density, depression,cancer and much more.

Mercy In MotionMercy In Motion provides safe, affordable andprofessional non-emergency transportation forthose who have no other means of transportation toMercy medical appointments throughout southernWisconsin and northern Illinois.

[ ]

Over 1,000,000patient visits

at 63 locations

Meals On WheelsMercy’s Meals On Wheels provides afford-able meals for the elderly or disabled in theirhomes. Available seven days a week, mealsare made fresh by the Mercy Hospital-Janesville and Mercy Harvard Hospital dietarystaff to ensure the foods are nutritional, variedand tasty. As the largest program in the area,Meals on Wheels serves over 140 residentseach week.

Mercy LifelineMercy Lifeline is a personal emergencyresponse system that helps the elderly and dis-abled remain in their homes and retain theirindependence. Lifeline communication devicesare used to call for medical help with the touchof a button. Mercy Lifeline serves over 850 community members throughout southernWisconsin and northern Illinois.

Hospice careMercy Assisted Care operates the largestskilled home care agency in Rock County,Wisconsin. The Mercy hospice program

includes a hospice homecare program and the only hospice residential unit in Janesville.Mercy’s hospice program is the second largestin the area and has doubled its census in thelast 10 years.

Senior ConnectionThis free program for community membersaged 55 and older offers Medicare advicefrom trained personal counselors, referrals forhome health and home care, social eventsand multiple discounts throughout MercyHealth System.

Mercy Cooperative Childcare InstituteWorking with the Janesville School District andRock County Social Services, the MercyCooperative Childcare Institute provides residential treatment options for children ages6 to 17 with severe emotional disorders. CCIhas served 284 children since 1996.

Health Occupations AcademyThe Health Occupations Academy was conceived as an alternative solution to the

growing staffing shortage in health care fields.The Academy is a partnership between Mercy,the Janesville School District and BlackhawkTechnical College that provides technical education and training to high school studentswho wish to pursue a health care career. Wealso continue to support McHenry CountyCollege’s efforts to expand their health occupa-tions offerings.

Encouraging volunteerismMercy Health System partners are encouragedto volunteer within their communities to effectpositive change. All Mercy partners receiveeight hours of paid time each year to pursue acommunity service or volunteer project. ManyMercy partners serve or have served on theboards of directors of vital local charities, andstill more volunteer their time to help local char-itable organizations improve the community. In total, Mercy partners personally give thousands of hours of their time and over$550,000 in donations to local volunteerorganizations each year.

who we help[ ]

It is organizations like Mercy that set an excellentexample for other businesses in the state.

Wisconsin Governor Jim Doyle

[ how we care ]

Quality—Excellence in patient careThe Quality pillar uses national and state benchmarks tomeasure quality clinical care. Every Mercy partner iscommitted to exceeding patient expectations by makingquality a top priority. Ongoing efforts include continuousimprovements, such as expanding Mercy Hospital’s central laboratory and ambulatory surgery center, creating patient-centered surgical offices near our threehospitals, and renovating Mercy Hospital birthing centerand Mercy Regional Cancer Center for comfort-focused care. An empowered workforce ofproblem-solving teams, the latest medical technologyand the creation of over 50 centers of excellence alsocontribute to the quality of patient care throughout southern Wisconsin and northern Illinois.

Overall Hospital Satisfaction

2006 2006

92%

95.2%

Unrated

20%

Number of Facilities/Sites

1989 2007

1

63

Charitable/Uncompensated Care

1989 2006

$621,884

$28,000,000

Overall Partner Satisfaction

Bond Rating Indicator

1989 2006

A2

Number of Employed Physicians

1989 2007

0

285

Overall Clinic Satisfaction

2006 2006

91%

96%

Gross Expenses

1989 2007

$31,040

$409,386

Facilities Effectiveness

2002 2005

24,136 sq. ft83.5%

34,239 sq. ft.92.8%

Total Patients Treated

1989 2007

89,627

1,000,000+

Administrative Costs as % of Budget

Mercy

Accounts Receivable in Days

1989 2006

73.1

59

Gross Revenues in Thousands

1989 2006

$33,000

$764,805

Number of Partners

1989 2007

589

3,856

Partner Turnover

2006 2006

12%

8%

MercyCare Administrative Benefit Ratio

1997 2007

9.93%

2006 2006

68.2%

85.6%

10%

6.65%

National MercyAverage

National MercyAverage

National MercyAverage

National MercyAverage

good

good

Mortality - Heart Attack

2006 2006Expected MercyRate Rate

Mortality - Heart Failure

2006 2006Expected MercyRate Rate

Mortality - Pnemonia

2006 2006Expected MercyRate Rate

Childhood Immunizations

2006 2006National MercyAverage

good

good good

good

goodgoodgood

good good good

good

good good goodgood

WI and ILstate average

Overall Hospital Satisfaction

2006 2006

92%

95.2%

Unrated

20%

Number of Facilities/Sites

1989 2007

1

63

Charitable/Uncompensated Care

1989 2006

$621,884

$28,000,000

Overall Partner Satisfaction

Bond Rating Indicator

1989 2006

A2

Number of Employed Physicians

1989 2007

0

285

Overall Clinic Satisfaction

2006 2006

91%

96%

Gross Expenses

1989 2007

$31,040

$409,386

Facilities Effectiveness

2002 2005

24,136 sq. ft83.5%

34,239 sq. ft.92.8%

Total Patients Treated

1989 2007

89,627

1,000,000+

Administrative Costs as % of Budget

Mercy

Accounts Receivable in Days

1989 2006

73.1

59

Gross Revenues in Thousands

1989 2006

$33,000

$764,805

Number of Partners

1989 2007

589

3,856

Partner Turnover

2006 2006

12%

8%

MercyCare Administrative Benefit Ratio

1997 2007

9.93%

2006 2006

68.2%

85.6%

10%

6.65%

National MercyAverage

National MercyAverage

National MercyAverage

National MercyAverage

good

good

Mortality - Heart Attack

2006 2006Expected MercyRate Rate

Mortality - Heart Failure

2006 2006Expected MercyRate Rate

Mortality - Pnemonia

2006 2006Expected MercyRate Rate

Childhood Immunizations

2006 2006National MercyAverage

good

good good

good

goodgoodgood

good good good

good

good good goodgood

WI and ILstate average

Javon Bea created a Culture of Excellence that is built upon four pillars of excellence:

quality, service, partnering, cost

Overall Hospital Satisfaction

2006 2006

92%

95.2%

Unrated

20%

Number of Facilities/Sites

1989 2007

1

63

Charitable/Uncompensated Care

1989 2006

$621,884

$28,000,000

Overall Partner Satisfaction

Bond Rating Indicator

1989 2006

A2

Number of Employed Physicians

1989 2007

0

285

Overall Clinic Satisfaction

2006 2006

91%

96%

Gross Expenses

1989 2007

$31,040

$409,386

Facilities Effectiveness

2002 2005

24,136 sq. ft83.5%

34,239 sq. ft.92.8%

Total Patients Treated

1989 2007

89,627

1,000,000+

Administrative Costs as % of Budget

Mercy

Accounts Receivable in Days

1989 2006

73.1

59

Gross Revenues in Thousands

1989 2006

$33,000

$764,805

Number of Partners

1989 2007

589

3,856

Partner Turnover

2006 2006

12%

8%

MercyCare Administrative Benefit Ratio

1997 2007

9.93%

2006 2006

68.2%

85.6%

10%

6.65%

National MercyAverage

National MercyAverage

National MercyAverage

National MercyAverage

good

good

Mortality - Heart Attack

2006 2006Expected MercyRate Rate

Mortality - Heart Failure

2006 2006Expected MercyRate Rate

Mortality - Pnemonia

2006 2006Expected MercyRate Rate

Childhood Immunizations

2006 2006National MercyAverage

good

good good

good

goodgoodgood

good good good

good

good good goodgood

WI and ILstate average

Overall Hospital Satisfaction

2006 2006

92%

95.2%

Unrated

20%

Number of Facilities/Sites

1989 2007

1

63

Charitable/Uncompensated Care

1989 2006

$621,884

$28,000,000

Overall Partner Satisfaction

Bond Rating Indicator

1989 2006

A2

Number of Employed Physicians

1989 2007

0

285

Overall Clinic Satisfaction

2006 2006

91%

96%

Gross Expenses

1989 2007

$31,040

$409,386

Facilities Effectiveness

2002 2005

24,136 sq. ft83.5%

34,239 sq. ft.92.8%

Total Patients Treated

1989 2007

89,627

1,000,000+

Administrative Costs as % of Budget

Mercy

Accounts Receivable in Days

1989 2006

73.1

59

Gross Revenues in Thousands

1989 2006

$33,000

$764,805

Number of Partners

1989 2007

589

3,856

Partner Turnover

2006 2006

12%

8%

MercyCare Administrative Benefit Ratio

1997 2007

9.93%

2006 2006

68.2%

85.6%

10%

6.65%

National MercyAverage

National MercyAverage

National MercyAverage

National MercyAverage

good

good

Mortality - Heart Attack

2006 2006Expected MercyRate Rate

Mortality - Heart Failure

2006 2006Expected MercyRate Rate

Mortality - Pnemonia

2006 2006Expected MercyRate Rate

Childhood Immunizations

2006 2006National MercyAverage

good

good good

good

goodgoodgood

good good good

good

good good goodgood

WI and ILstate average

Mercy Health Systemexemplifies a mission to care for all patients.

George QuinnSenior Vice President, Wisconsin Hospital Association”

[ how we care ]

Service—Exceptional patient and customer serviceThe Service pillar focuses on fostering a sense ofresponsibility and caring attitudes toward patients toenhance the health of the communities we serve.Through continuous benchmarking and tracking ofquality indicators, Mercy Health System understands the importance of having processes inplace that are consistent throughout the organiza-tion, and ensure excellence in patient care, toachieve our mission of healing in the broadestsense. The process of putting patients first anddoing everything in each partner’s power to better serve patients also extends to the communities Mercy serves as well.

Overall Hospital Satisfaction

2006 2006

92%

95.2%

Unrated

20%

Number of Facilities/Sites

1989 2007

1

63

Charitable/Uncompensated Care

1989 2006

$621,884

$28,000,000

Overall Partner Satisfaction

Bond Rating Indicator

1989 2006

A2

Number of Employed Physicians

1989 2007

0

285

Overall Clinic Satisfaction

2006 2006

91%

96%

Gross Expenses

1989 2007

$31,040

$409,386

Facilities Effectiveness

2002 2005

24,136 sq. ft83.5%

34,239 sq. ft.92.8%

Total Patients Treated

1989 2007

89,627

1,000,000+

Administrative Costs as % of Budget

Mercy

Accounts Receivable in Days

1989 2006

73.1

59

Gross Revenues in Thousands

1989 2006

$33,000

$764,805

Number of Partners

1989 2007

589

3,856

Partner Turnover

2006 2006

12%

8%

MercyCare Administrative Benefit Ratio

1997 2007

9.93%

2006 2006

68.2%

85.6%

10%

6.65%

National MercyAverage

National MercyAverage

National MercyAverage

National MercyAverage

good

good

Mortality - Heart Attack

2006 2006Expected MercyRate Rate

Mortality - Heart Failure

2006 2006Expected MercyRate Rate

Mortality - Pnemonia

2006 2006Expected MercyRate Rate

Childhood Immunizations

2006 2006National MercyAverage

good

good good

good

goodgoodgood

good good good

good

good good goodgood

WI and ILstate average

Overall Hospital Satisfaction

2006 2006

92%

95.2%

Unrated

20%

Number of Facilities/Sites

1989 2007

1

63

Charitable/Uncompensated Care

1989 2006

$621,884

$28,000,000

Overall Partner Satisfaction

Bond Rating Indicator

1989 2006

A2

Number of Employed Physicians

1989 2007

0

285

Overall Clinic Satisfaction

2006 2006

91%

96%

Gross Expenses

1989 2007

$31,040

$409,386

Facilities Effectiveness

2002 2005

24,136 sq. ft83.5%

34,239 sq. ft.92.8%

Total Patients Treated

1989 2007

89,627

1,000,000+

Administrative Costs as % of Budget

Mercy

Accounts Receivable in Days

1989 2006

73.1

59

Gross Revenues in Thousands

1989 2006

$33,000

$764,805

Number of Partners

1989 2007

589

3,856

Partner Turnover

2006 2006

12%

8%

MercyCare Administrative Benefit Ratio

1997 2007

9.93%

2006 2006

68.2%

85.6%

10%

6.65%

National MercyAverage

National MercyAverage

National MercyAverage

National MercyAverage

good

good

Mortality - Heart Attack

2006 2006Expected MercyRate Rate

Mortality - Heart Failure

2006 2006Expected MercyRate Rate

Mortality - Pnemonia

2006 2006Expected MercyRate Rate

Childhood Immunizations

2006 2006National MercyAverage

good

good good

good

goodgoodgood

good good good

good

good good goodgood

WI and ILstate average

Mercy is offering more than a Band-Aid for longwaits, and patients should appreciate that.

Editorial staff. (2006, November 24).Our views, Opinion section. The Janesville Gazette, p.6A.

on the topic of Mercy’s implementation of a 30-minute urgent care service commitment

[ how we care ]

Partnering—Best place to workThe Partnering pillar focuses on fostering a supportive, entrepreneurial spirit in each of our partners on all levels ofthe organization. Mercy considers all employees “partners.” Under this pillar, the Culture of Excellence program empowers our partners to take action and freelymake suggestions. Mercy appreciates the valuable contri-butions of all partners and recognizes the importance ofproviding them with opportunities and support. Our organization prides itself on creating a work environmentthat also provides benefits, development and training to allpartners.

Overall Hospital Satisfaction

2006 2006

92%

95.2%

Unrated

20%

Number of Facilities/Sites

1989 2007

1

63

Charitable/Uncompensated Care

1989 2006

$621,884

$28,000,000

Overall Partner Satisfaction

Bond Rating Indicator

1989 2006

A2

Number of Employed Physicians

1989 2007

0

285

Overall Clinic Satisfaction

2006 2006

91%

96%

Gross Expenses

1989 2007

$31,040

$409,386

Facilities Effectiveness

2002 2005

24,136 sq. ft83.5%

34,239 sq. ft.92.8%

Total Patients Treated

1989 2007

89,627

1,000,000+

Administrative Costs as % of Budget

Mercy

Accounts Receivable in Days

1989 2006

73.1

59

Gross Revenues in Thousands

1989 2006

$33,000

$764,805

Number of Partners

1989 2007

589

3,856

Partner Turnover

2006 2006

12%

8%

MercyCare Administrative Benefit Ratio

1997 2007

9.93%

2006 2006

68.2%

85.6%

10%

6.65%

National MercyAverage

National MercyAverage

National MercyAverage

National MercyAverage

good

good

Mortality - Heart Attack

2006 2006Expected MercyRate Rate

Mortality - Heart Failure

2006 2006Expected MercyRate Rate

Mortality - Pnemonia

2006 2006Expected MercyRate Rate

Childhood Immunizations

2006 2006National MercyAverage

good

good good

good

goodgoodgood

good good good

good

good good goodgood

WI and ILstate average

Overall Hospital Satisfaction

2006 2006

92%

95.2%

Unrated

20%

Number of Facilities/Sites

1989 2007

1

63

Charitable/Uncompensated Care

1989 2006

$621,884

$28,000,000

Overall Partner Satisfaction

Bond Rating Indicator

1989 2006

A2

Number of Employed Physicians

1989 2007

0

285

Overall Clinic Satisfaction

2006 2006

91%

96%

Gross Expenses

1989 2007

$31,040

$409,386

Facilities Effectiveness

2002 2005

24,136 sq. ft83.5%

34,239 sq. ft.92.8%

Total Patients Treated

1989 2007

89,627

1,000,000+

Administrative Costs as % of Budget

Mercy

Accounts Receivable in Days

1989 2006

73.1

59

Gross Revenues in Thousands

1989 2006

$33,000

$764,805

Number of Partners

1989 2007

589

3,856

Partner Turnover

2006 2006

12%

8%

MercyCare Administrative Benefit Ratio

1997 2007

9.93%

2006 2006

68.2%

85.6%

10%

6.65%

National MercyAverage

National MercyAverage

National MercyAverage

National MercyAverage

good

good

Mortality - Heart Attack

2006 2006Expected MercyRate Rate

Mortality - Heart Failure

2006 2006Expected MercyRate Rate

Mortality - Pnemonia

2006 2006Expected MercyRate Rate

Childhood Immunizations

2006 2006National MercyAverage

good

good good

good

goodgoodgood

good good good

good

good good goodgood

WI and ILstate average

We do not losesight of what ismost important,

that being the patient’s well being.

Christopher Sturm, MDNeurosurgeon

Cost—Long-term financial successThe Cost pillar engages Mercy partners to identify innovative ideas for growing system-wide revenue, decreasingexpenses and waste, increasing productivity, maximizing economiesof scale, and continuously implementing suggestions for increasedeffectiveness. Mercy Health System is one of a handful of systems in the United States that successfully implemented an employedphysician integration model. Mercy partners share responsibilities toensure the organization remains viable and cost-effective to guarantee the organization’s long-term financial success.

Overall Hospital Satisfaction

2006 2006

92%

95.2%

Unrated

20%

Number of Facilities/Sites

1989 2007

1

63

Charitable/Uncompensated Care

1989 2006

$621,884

$28,000,000

Overall Partner Satisfaction

Bond Rating Indicator

1989 2006

A2

Number of Employed Physicians

1989 2007

0

285

Overall Clinic Satisfaction

2006 2006

91%

96%

Gross Expenses

1989 2007

$31,040

$409,386

Facilities Effectiveness

2002 2005

24,136 sq. ft83.5%

34,239 sq. ft.92.8%

Total Patients Treated

1989 2007

89,627

1,000,000+

Administrative Costs as % of Budget

Mercy

Accounts Receivable in Days

1989 2006

73.1

59

Gross Revenues in Thousands

1989 2006

$33,000

$764,805

Number of Partners

1989 2007

589

3,856

Partner Turnover

2006 2006

12%

8%

MercyCare Administrative Benefit Ratio

1997 2007

9.93%

2006 2006

68.2%

85.6%

10%

6.65%

National MercyAverage

National MercyAverage

National MercyAverage

National MercyAverage

good

good

Mortality - Heart Attack

2006 2006Expected MercyRate Rate

Mortality - Heart Failure

2006 2006Expected MercyRate Rate

Mortality - Pnemonia

2006 2006Expected MercyRate Rate

Childhood Immunizations

2006 2006National MercyAverage

good

good good

good

goodgoodgood

good good good

good

good good goodgood

WI and ILstate average

Overall Hospital Satisfaction

2006 2006

92%

95.2%

Unrated

20%

Number of Facilities/Sites

1989 2007

1

63

Charitable/Uncompensated Care

1989 2006

$621,884

$28,000,000

Overall Partner Satisfaction

Bond Rating Indicator

1989 2006

A2

Number of Employed Physicians

1989 2007

0

285

Overall Clinic Satisfaction

2006 2006

91%

96%

Gross Expenses

1989 2007

$31,040

$409,386

Facilities Effectiveness

2002 2005

24,136 sq. ft83.5%

34,239 sq. ft.92.8%

Total Patients Treated

1989 2007

89,627

1,000,000+

Administrative Costs as % of Budget

Mercy

Accounts Receivable in Days

1989 2006

73.1

59

Gross Revenues in Thousands

1989 2006

$33,000

$764,805

Number of Partners

1989 2007

589

3,856

Partner Turnover

2006 2006

12%

8%

MercyCare Administrative Benefit Ratio

1997 2007

9.93%

2006 2006

68.2%

85.6%

10%

6.65%

National MercyAverage

National MercyAverage

National MercyAverage

National MercyAverage

good

good

Mortality - Heart Attack

2006 2006Expected MercyRate Rate

Mortality - Heart Failure

2006 2006Expected MercyRate Rate

Mortality - Pnemonia

2006 2006Expected MercyRate Rate

Childhood Immunizations

2006 2006National MercyAverage

good

good good

good

goodgoodgood

good good good

good

good good goodgood

WI and ILstate average

[ how we care ]My father received wonderfulcare while at Mercy. I am very impressed with Mercy’sdedication to patients andtheir families.

Shirley Birmingham, daughter of a heart attack patient

“”

[

Overall Hospital Satisfaction

2006 2006

92%

95.2%

Unrated

20%

Number of Facilities/Sites

1989 2007

1

63

Charitable/Uncompensated Care

1989 2006

$621,884

$28,000,000

Overall Partner Satisfaction

Bond Rating Indicator

1989 2006

A2

Number of Employed Physicians

1989 2007

0

285

Overall Clinic Satisfaction

2006 2006

91%

96%

Gross Expenses

1989 2007

$31,040

$409,386

Facilities Effectiveness

2002 2005

24,136 sq. ft83.5%

34,239 sq. ft.92.8%

Total Patients Treated

1989 2007

89,627

1,000,000+

Administrative Costs as % of Budget

Mercy

Accounts Receivable in Days

1989 2006

73.1

59

Gross Revenues in Thousands

1989 2006

$33,000

$764,805

Number of Partners

1989 2007

589

3,856

Partner Turnover

2006 2006

12%

8%

MercyCare Administrative Benefit Ratio

1997 2007

9.93%

2006 2006

68.2%

85.6%

10%

6.65%

National MercyAverage

National MercyAverage

National MercyAverage

National MercyAverage

good

good

Mortality - Heart Attack

2006 2006Expected MercyRate Rate

Mortality - Heart Failure

2006 2006Expected MercyRate Rate

Mortality - Pnemonia

2006 2006Expected MercyRate Rate

Childhood Immunizations

2006 2006National MercyAverage

good

good good

good

goodgoodgood

good good good

good

good good goodgood

WI and ILstate average

1989 20070 Partner Physicians (employed) 2851 Hospitals 31 Clinical Sites 631 Communities Served 241 (WI) Counties Served 7 (WI/IL)89,000 Total Patient Visits 1,000,000+589 Employees/Partners 3,8560 Insurance Licenses 2 (WI/IL)0 Insurance Products 7 (WI/IL)33m Revenue 765m

]how we’ve grown

Overall Hospital Satisfaction

2006 2006

92%

95.2%

Unrated

20%

Number of Facilities/Sites

1989 2007

1

63

Charitable/Uncompensated Care

1989 2006

$621,884

$28,000,000

Overall Partner Satisfaction

Bond Rating Indicator

1989 2006

A2

Number of Employed Physicians

1989 2007

0

285

Overall Clinic Satisfaction

2006 2006

91%

96%

Gross Expenses

1989 2007

$31,040

$409,386

Facilities Effectiveness

2002 2005

24,136 sq. ft83.5%

34,239 sq. ft.92.8%

Total Patients Treated

1989 2007

89,627

1,000,000+

Administrative Costs as % of Budget

Mercy

Accounts Receivable in Days

1989 2006

73.1

59

Gross Revenues in Thousands

1989 2006

$33,000

$764,805

Number of Partners

1989 2007

589

3,856

Partner Turnover

2006 2006

12%

8%

MercyCare Administrative Benefit Ratio

1997 2007

9.93%

2006 2006

68.2%

85.6%

10%

6.65%

National MercyAverage

National MercyAverage

National MercyAverage

National MercyAverage

good

good

Mortality - Heart Attack

2006 2006Expected MercyRate Rate

Mortality - Heart Failure

2006 2006Expected MercyRate Rate

Mortality - Pnemonia

2006 2006Expected MercyRate Rate

Childhood Immunizations

2006 2006National MercyAverage

good

good good

good

goodgoodgood

good good good

good

good good goodgood

WI and ILstate average

Overall Hospital Satisfaction

2006 2006

92%

95.2%

Unrated

20%

Number of Facilities/Sites

1989 2007

1

63

Charitable/Uncompensated Care

1989 2006

$621,884

$28,000,000

Overall Partner Satisfaction

Bond Rating Indicator

1989 2006

A2

Number of Employed Physicians

1989 2007

0

285

Overall Clinic Satisfaction

2006 2006

91%

96%

Gross Expenses

1989 2007

$31,040

$409,386

Facilities Effectiveness

2002 2005

24,136 sq. ft83.5%

34,239 sq. ft.92.8%

Total Patients Treated

1989 2007

89,627

1,000,000+

Administrative Costs as % of Budget

Mercy

Accounts Receivable in Days

1989 2006

73.1

59

Gross Revenues in Thousands

1989 2006

$33,000

$764,805

Number of Partners

1989 2007

589

3,856

Partner Turnover

2006 2006

12%

8%

MercyCare Administrative Benefit Ratio

1997 2007

9.93%

2006 2006

68.2%

85.6%

10%

6.65%

National MercyAverage

National MercyAverage

National MercyAverage

National MercyAverage

good

good

Mortality - Heart Attack

2006 2006Expected MercyRate Rate

Mortality - Heart Failure

2006 2006Expected MercyRate Rate

Mortality - Pnemonia

2006 2006Expected MercyRate Rate

Childhood Immunizations

2006 2006National MercyAverage

good

good good

good

goodgoodgood

good good good

good

good good goodgood

WI and ILstate average

Overall Hospital Satisfaction

2006 2006

92%

95.2%

Unrated

20%

Number of Facilities/Sites

1989 2007

1

63

Charitable/Uncompensated Care

1989 2006

$621,884

$28,000,000

Overall Partner Satisfaction

Bond Rating Indicator

1989 2006

A2

Number of Employed Physicians

1989 2007

0

285

Overall Clinic Satisfaction

2006 2006

91%

96%

Gross Expenses

1989 2007

$31,040

$409,386

Facilities Effectiveness

2002 2005

24,136 sq. ft83.5%

34,239 sq. ft.92.8%

Total Patients Treated

1989 2007

89,627

1,000,000+

Administrative Costs as % of Budget

Mercy

Accounts Receivable in Days

1989 2006

73.1

59

Gross Revenues in Thousands

1989 2006

$33,000

$764,805

Number of Partners

1989 2007

589

3,856

Partner Turnover

2006 2006

12%

8%

MercyCare Administrative Benefit Ratio

1997 2007

9.93%

2006 2006

68.2%

85.6%

10%

6.65%

National MercyAverage

National MercyAverage

National MercyAverage

National MercyAverage

good

good

Mortality - Heart Attack

2006 2006Expected MercyRate Rate

Mortality - Heart Failure

2006 2006Expected MercyRate Rate

Mortality - Pnemonia

2006 2006Expected MercyRate Rate

Childhood Immunizations

2006 2006National MercyAverage

good

good good

good

goodgoodgood

good good good

good

good good goodgood

WI and ILstate average

Overall Hospital Satisfaction

2006 2006

92%

95.2%

Unrated

20%

Number of Facilities/Sites

1989 2007

1

63

Charitable/Uncompensated Care

1989 2006

$621,884

$28,000,000

Overall Partner Satisfaction

Bond Rating Indicator

1989 2006

A2

Number of Employed Physicians

1989 2007

0

285

Overall Clinic Satisfaction

2006 2006

91%

96%

Gross Expenses

1989 2007

$31,040

$409,386

Facilities Effectiveness

2002 2005

24,136 sq. ft83.5%

34,239 sq. ft.92.8%

Total Patients Treated

1989 2007

89,627

1,000,000+

Administrative Costs as % of Budget

Mercy

Accounts Receivable in Days

1989 2006

73.1

59

Gross Revenues in Thousands

1989 2006

$33,000

$764,805

Number of Partners

1989 2007

589

3,856

Partner Turnover

2006 2006

12%

8%

MercyCare Administrative Benefit Ratio

1997 2007

9.93%

2006 2006

68.2%

85.6%

10%

6.65%

National MercyAverage

National MercyAverage

National MercyAverage

National MercyAverage

good

good

Mortality - Heart Attack

2006 2006Expected MercyRate Rate

Mortality - Heart Failure

2006 2006Expected MercyRate Rate

Mortality - Pnemonia

2006 2006Expected MercyRate Rate

Childhood Immunizations

2006 2006National MercyAverage

good

good good

good

goodgoodgood

good good good

good

good good goodgood

WI and ILstate average

Overall Hospital Satisfaction

2006 2006

92%

95.2%

Unrated

20%

Number of Facilities/Sites

1989 2007

1

63

Charitable/Uncompensated Care

1989 2006

$621,884

$28,000,000

Overall Partner Satisfaction

Bond Rating Indicator

1989 2006

A2

Number of Employed Physicians

1989 2007

0

285

Overall Clinic Satisfaction

2006 2006

91%

96%

Gross Expenses

1989 2007

$31,040

$409,386

Facilities Effectiveness

2002 2005

24,136 sq. ft83.5%

34,239 sq. ft.92.8%

Total Patients Treated

1989 2007

89,627

1,000,000+

Administrative Costs as % of Budget

Mercy

Accounts Receivable in Days

1989 2006

73.1

59

Gross Revenues in Thousands

1989 2006

$33,000

$764,805

Number of Partners

1989 2007

589

3,856

Partner Turnover

2006 2006

12%

8%

MercyCare Administrative Benefit Ratio

1997 2007

9.93%

2006 2006

68.2%

85.6%

10%

6.65%

National MercyAverage

National MercyAverage

National MercyAverage

National MercyAverage

good

good

Mortality - Heart Attack

2006 2006Expected MercyRate Rate

Mortality - Heart Failure

2006 2006Expected MercyRate Rate

Mortality - Pnemonia

2006 2006Expected MercyRate Rate

Childhood Immunizations

2006 2006National MercyAverage

good

good good

good

goodgoodgood

good good good

good

good good goodgood

WI and ILstate average

Overall Hospital Satisfaction

2006 2006

92%

95.2%

Unrated

20%

Number of Facilities/Sites

1989 2007

1

63

Charitable/Uncompensated Care

1989 2006

$621,884

$28,000,000

Overall Partner Satisfaction

Bond Rating Indicator

1989 2006

A2

Number of Employed Physicians

1989 2007

0

285

Overall Clinic Satisfaction

2006 2006

91%

96%

Gross Expenses

1989 2007

$31,040

$409,386

Facilities Effectiveness

2002 2005

24,136 sq. ft83.5%

34,239 sq. ft.92.8%

Total Patients Treated

1989 2007

89,627

1,000,000+

Administrative Costs as % of Budget

Mercy

Accounts Receivable in Days

1989 2006

73.1

59

Gross Revenues in Thousands

1989 2006

$33,000

$764,805

Number of Partners

1989 2007

589

3,856

Partner Turnover

2006 2006

12%

8%

MercyCare Administrative Benefit Ratio

1997 2007

9.93%

2006 2006

68.2%

85.6%

10%

6.65%

National MercyAverage

National MercyAverage

National MercyAverage

National MercyAverage

good

good

Mortality - Heart Attack

2006 2006Expected MercyRate Rate

Mortality - Heart Failure

2006 2006Expected MercyRate Rate

Mortality - Pnemonia

2006 2006Expected MercyRate Rate

Childhood Immunizations

2006 2006National MercyAverage

good

good good

good

goodgoodgood

good good good

good

good good goodgood

WI and ILstate average

Overall Hospital Satisfaction

2006 2006

92%

95.2%

Unrated

20%

Number of Facilities/Sites

1989 2007

1

63

Charitable/Uncompensated Care

1989 2006

$621,884

$28,000,000

Overall Partner Satisfaction

Bond Rating Indicator

1989 2006

A2

Number of Employed Physicians

1989 2007

0

285

Overall Clinic Satisfaction

2006 2006

91%

96%

Gross Expenses

1989 2007

$31,040

$409,386

Facilities Effectiveness

2002 2005

24,136 sq. ft83.5%

34,239 sq. ft.92.8%

Total Patients Treated

1989 2007

89,627

1,000,000+

Administrative Costs as % of Budget

Mercy

Accounts Receivable in Days

1989 2006

73.1

59

Gross Revenues in Thousands

1989 2006

$33,000

$764,805

Number of Partners

1989 2007

589

3,856

Partner Turnover

2006 2006

12%

8%

MercyCare Administrative Benefit Ratio

1997 2007

9.93%

2006 2006

68.2%

85.6%

10%

6.65%

National MercyAverage

National MercyAverage

National MercyAverage

National MercyAverage

good

good

Mortality - Heart Attack

2006 2006Expected MercyRate Rate

Mortality - Heart Failure

2006 2006Expected MercyRate Rate

Mortality - Pnemonia

2006 2006Expected MercyRate Rate

Childhood Immunizations

2006 2006National MercyAverage

good

good good

good

goodgoodgood

good good good

good

good good goodgood

WI and ILstate average

Overall Hospital Satisfaction

2006 2006

92%

95.2%

Unrated

20%

Number of Facilities/Sites

1989 2007

1

63

Charitable/Uncompensated Care

1989 2006

$621,884

$28,000,000

Overall Partner Satisfaction

Bond Rating Indicator

1989 2006

A2

Number of Employed Physicians

1989 2007

0

285

Overall Clinic Satisfaction

2006 2006

91%

96%

Gross Expenses

1989 2007

$31,040

$409,386

Facilities Effectiveness

2002 2005

24,136 sq. ft83.5%

34,239 sq. ft.92.8%

Total Patients Treated

1989 2007

89,627

1,000,000+

Administrative Costs as % of Budget

Mercy

Accounts Receivable in Days

1989 2006

73.1

59

Gross Revenues in Thousands

1989 2006

$33,000

$764,805

Number of Partners

1989 2007

589

3,856

Partner Turnover

2006 2006

12%

8%

MercyCare Administrative Benefit Ratio

1997 2007

9.93%

2006 2006

68.2%

85.6%

10%

6.65%

National MercyAverage

National MercyAverage

National MercyAverage

National MercyAverage

good

good

Mortality - Heart Attack

2006 2006Expected MercyRate Rate

Mortality - Heart Failure

2006 2006Expected MercyRate Rate

Mortality - Pnemonia

2006 2006Expected MercyRate Rate

Childhood Immunizations

2006 2006National MercyAverage

good

good good

good

goodgoodgood

good good good

good

good good goodgood

WI and ILstate average

Overall Hospital Satisfaction

2006 2006

92%

95.2%

Unrated

20%

Number of Facilities/Sites

1989 2007

1

63

Charitable/Uncompensated Care

1989 2006

$621,884

$28,000,000

Overall Partner Satisfaction

Bond Rating Indicator

1989 2006

A2

Number of Employed Physicians

1989 2007

0

285

Overall Clinic Satisfaction

2006 2006

91%

96%

Gross Expenses

1989 2007

$31,040

$409,386

Facilities Effectiveness

2002 2005

24,136 sq. ft83.5%

34,239 sq. ft.92.8%

Total Patients Treated

1989 2007

89,627

1,000,000+

Administrative Costs as % of Budget

Mercy

Accounts Receivable in Days

1989 2006

73.1

59

Gross Revenues in Thousands

1989 2006

$33,000

$764,805

Number of Partners

1989 2007

589

3,856

Partner Turnover

2006 2006

12%

8%

MercyCare Administrative Benefit Ratio

1997 2007

9.93%

2006 2006

68.2%

85.6%

10%

6.65%

National MercyAverage

National MercyAverage

National MercyAverage

National MercyAverage

good

good

Mortality - Heart Attack

2006 2006Expected MercyRate Rate

Mortality - Heart Failure

2006 2006Expected MercyRate Rate

Mortality - Pnemonia

2006 2006Expected MercyRate Rate

Childhood Immunizations

2006 2006National MercyAverage

good

good good

good

goodgoodgood

good good good

good

good good goodgood

WI and ILstate average

Overall Hospital Satisfaction

2006 2006

92%

95.2%

Unrated

20%

Number of Facilities/Sites

1989 2007

1

63

Charitable/Uncompensated Care

1989 2006

$621,884

$28,000,000

Overall Partner Satisfaction

Bond Rating Indicator

1989 2006

A2

Number of Employed Physicians

1989 2007

0

285

Overall Clinic Satisfaction

2006 2006

91%

96%

Gross Expenses

1989 2007

$31,040

$409,386

Facilities Effectiveness

2002 2005

24,136 sq. ft83.5%

34,239 sq. ft.92.8%

Total Patients Treated

1989 2007

89,627

1,000,000+

Administrative Costs as % of Budget

Mercy

Accounts Receivable in Days

1989 2006

73.1

59

Gross Revenues in Thousands

1989 2006

$33,000

$764,805

Number of Partners

1989 2007

589

3,856

Partner Turnover

2006 2006

12%

8%

MercyCare Administrative Benefit Ratio

1997 2007

9.93%

2006 2006

68.2%

85.6%

10%

6.65%

National MercyAverage

National MercyAverage

National MercyAverage

National MercyAverage

good

good

Mortality - Heart Attack

2006 2006Expected MercyRate Rate

Mortality - Heart Failure

2006 2006Expected MercyRate Rate

Mortality - Pnemonia

2006 2006Expected MercyRate Rate

Childhood Immunizations

2006 2006National MercyAverage

good

good good

good

goodgoodgood

good good good

good

good good goodgood

WI and ILstate average

Overall Hospital Satisfaction

2006 2006

92%

95.2%

Unrated

20%

Number of Facilities/Sites

1989 2007

1

63

Charitable/Uncompensated Care

1989 2006

$621,884

$28,000,000

Overall Partner Satisfaction

Bond Rating Indicator

1989 2006

A2

Number of Employed Physicians

1989 2007

0

285

Overall Clinic Satisfaction

2006 2006

91%

96%

Gross Expenses

1989 2007

$31,040

$409,386

Facilities Effectiveness

2002 2005

24,136 sq. ft83.5%

34,239 sq. ft.92.8%

Total Patients Treated

1989 2007

89,627

1,000,000+

Administrative Costs as % of Budget

Mercy

Accounts Receivable in Days

1989 2006

73.1

59

Gross Revenues in Thousands

1989 2006

$33,000

$764,805

Number of Partners

1989 2007

589

3,856

Partner Turnover

2006 2006

12%

8%

MercyCare Administrative Benefit Ratio

1997 2007

9.93%

2006 2006

68.2%

85.6%

10%

6.65%

National MercyAverage

National MercyAverage

National MercyAverage

National MercyAverage

good

good

Mortality - Heart Attack

2006 2006Expected MercyRate Rate

Mortality - Heart Failure

2006 2006Expected MercyRate Rate

Mortality - Pnemonia

2006 2006Expected MercyRate Rate

Childhood Immunizations

2006 2006National MercyAverage

good

good good

good

goodgoodgood

good good good

good

good good goodgood

WI and ILstate average

Mercy is always giving back to not only its partners, but also the communities it serves. This makes me proud to be a Mercy partner.

Linda Christian, RN“ ”

how we’ve enhanced the economy[ ]Enhancing the economy, creating jobsIn 2006, Mercy Health System officially surpassed General Motors as thelargest employer in Janesville and the surrounding area. Mercy is proudto employ 3,856 of the area’s most talented residents. But its impact as an engine of economic development goes far beyond its partners. Forexample, did you know that:

• An additional 1,200 positions exist indirectly as a result of Mercy’s presence, and another 802 jobs exist as a result of the induced multiplier effect of dollars being spent within the local economy

• Mercy Health System provides approximately $580 million in personalincome to families in Wisconsin and Illinois, and another $160 million in additional income is supported by Mercy Health System inWisconsin through the multiplier effect

• Nearly $1.1 billion in annual industry sales (for health-related products and services) result from Mercy’s operations and its multiplier effect

In addition to generating jobs and income, the economic activity associated with Mercy Health System’s Wisconsin operations generatestax revenue for the State of Wisconsin and local governments throughproperty, sales and income taxes.

Mercy’s commitment to McHenry County and Harvard is really apparent when you look at the new services andimproved facilities they aresponsoring. What a great boost to the community.

Mark Hayes, Harvard resident

““Mercy’s growth in the community over the years has been remarkable. With

over 3,800 employees it has been a hugeeconomic asset to the City of Janesville

and surrounding communities.

John Beckord, President, Forward Janesville, Inc.

“”

Honors, awards and accreditationsIt is a privilege to be recognized for providing excellent patient care and exceeding industry standards. Mercy Health System is honored to have receivedthe following awards:

2006• Ranked 18th of the Top 100 Integrated Health Networks by

Verispan and Modern Healthcare magazine• AARP 2006 Best Employers for Workers Over Age 50, ranked #1 in the nation• 2006 Working Mother Top 100 Best Companies from Working

Mother magazine• Commission on Cancer Outstanding Achievement Award for providing

excellent care to cancer patients • Spirit of Excellence Award from Modern Healthcare magazine and Sodexho

for House of Mercy Homeless Center• Medical Group Management Association’s Fred Graham Award for Innovation

in Improving Community Health for House of Mercy Homeless Center• Forward Janesville Community Improvement Award for House of Mercy

Homeless Center• Multiple Hospitals for a Healthy Environment (H2E) Awards, including:

Environmental Leadership Award at Mercy HospitalPartners in Change Awards at Mercy Walworth Hospital and Medical Center, and Mercy Harvard Hospital

• Friend of the Environment Award from Wisconsin Working Group

2005• Top 100 Integrated Health Networks by Verispan and Modern Healthcare magazine• AARP 2005 Best Employers For Workers Over Age 50, ranked #11 in the nation • Innovative Program Award from Employee Services Management Association

for excellence in employee services• Wisconsin Hospital Association’s Global Vision Award for the House of Mercy

Homeless Center• Wisconsin Award for Volunteer Excellence (WAVE) for the House of Mercy

Homeless Center

2004• Top 100 Integrated Health Networks by Verispan and Modern Healthcare magazine• Governor’s Forward Award of Excellence for 2003 application, the

highest honor bestowed by the Wisconsin Forward Association• Javon R. Bea named CEO/Employer of the Year by Employee Services

Management Association • American Hospital Association NOVA Award finalist for effective,

collaborative community health programs • California Pacific Foundation Award for Excellence in Patient Education• United Way Campaign Leadership Circle Award• Wisconsin Psychological Association Healthy Workplace Award

2003• Top 100 Integrated Health Networks by SMG and Modern Healthcare magazine• One of four national finalists for the Foster G. McGaw Award for outstanding

community service efforts• Wisconsin Forward Award Mastery Level for 2002 application• Employee Services Management Association Eastwood Award • Forward Janesville Business of the Year

Mercy has full accreditation byJoint Commission on Accreditation of Healthcare Organizations (2005-2008) National Committee for Quality Assurance--MercyCare Insurance Company

received Full Accreditation with Excellence (2004-2007) Mammography Quality Assurance (2004-2007) American College of Radiology (2004-2007) Intersocietal Commission for the Accreditation of Vascular Labs (2005-2007) National Association of Sleep Programs (2005-2010) American College of Surgeons Commission on Cancer--Full accreditation

with Commendations (2006-2010) American Association of Blood Banks (2004-2006) American Diabetes Association (2005-2008) Council for Graduate Medical Education (2001-2006) Wisconsin Medical Society of CME (2003-2009)

how we’ve been recognized[ ]

Mercy is always looking for ways to offer advanced yet comfortable and exceptional care services that result in healing

in the broadest sense to the communities we serve.

Dean Wolanyk, MD, emergency medicine

where we’ve beenIn the beginningIn 1883, Dr. Henry Palmer, a gifted surgeon and astute businessman,opened Janesville’s first hospital, known as the Janesville City Hospital.Two years later, following Dr. Palmer’s untimely death, his son Dr. WilliamPalmer opened a larger facility, known as Palmer Memorial Hospital. In1907, the Sisters of Mercy of Chicago purchased the hospital, andrenamed it Palmer Memorial Mercy Hospital. In 1963, a new adminis-trator, Sister Mary Michael Berry, joined Mercy, and provided directionand leadership for over two decades.

In the last two decadesBy the end of the 80s, Mercy Hospital was severely losing market share.Area residents largely perceived it as a primary care hospital and droveto Madison, Milwaukee and Rockford for specialized health care services. It was then that the volunteer board of directors chose Javon R.Bea as the first lay president and CEO, and Mercy began its nationallyacclaimed transformation from one stand-alone hospital to today’s vertically integrated health system with 63 facilities in 24 communitiesthroughout southern Wisconsin and northern Illinois, with over1,000,000 patient visits.

[ ]

1989

Additional facilities and services during 1989-1993

Mercy Evansville Medical CenterNew CT and MRI technologySouthern Wisconsin Emergency Training ProgramExpansion of Mercy Hospital inpatient psychiatric unitMercy Regional Plastic and Reconstructive Surgery CenterWINGS (mental health treatment program) at Mercy HospitalMercy Janesville Sports Medicine and Rehabilitation Center Mercy Regional Cancer CenterMercy Regional Neurosurgery CenterMercy Health System Family Medicine Residency ProgramComprehensive Inpatient Rehabilitation Unit at Mercy HospitalMercy Whitewater Medical CenterIntegration of Janesville Medical Center/Mercy Clinic EastAudiology services (inpatient/outpatient)Mercy Whitewater Sports Medicine and Rehabilitation CenterMercyCare Insurance CompanyExpansion of critical care servicesMercy Lake Geneva Medical CenterMercy Edgerton Medical CenterExpansion of Mercy Janesville Sports Medicine and Rehabilitation Center Comprehensive occupational medicine programLithotripsyMercy Delavan Medical CenterEmployee Assistance ProgramMercy Outpatient Rehabilitation CenterDiabetes education program Mercy Regional Lung CenterImplementation of HBOC Billing System Mercy Regional Heart and Vascular CenterExpansion of cardiology servicesOpen heart surgeryReconstruction of Mercy Regional Emergency Medicine and Trauma CenterMercy Clinic WestMercy Women’s Health Center

1989-1993nineteen eighty-nine

nineteen ninety-three

1989

1990

During this time, Mercy brought numerous specialty Centers of Excellenceto the Janesville community, including:

Mercy Regional Plastic and Reconstructive Surgery CenterMercy Regional Cancer CenterMercy Regional Neurosurgery Center Mercy Regional Heart Center

Since opening in 1990, the MercyRegional Emergency Medical ServicesTraining Center has trained and recertified more than 2,760 emergencymedical technicians (EMTs) and paramedics, increasing the availabilityof life-saving, pre-hospital care in south-ern Wisconsin.

1991

where we’ve been

In 1991, Mercy started its Family Medicine Residency Program to givenewly graduated family medicine physicians experience in inpatient, outpatient, nursing home, hospice and home care settings. The programis now located at Mercy Clinic South, Janesville. To date, the programhas graduated 54 family medicine physicians. In 2000, the program’s residents brought back traditional house calls to homebound patients.

In 1989, Mercy employed its first physician, Dr. EugeneHartlaub, and thus began its vertical integration strategy.

Mercy opened its first medical center in Evansville in 1989, followed by centers in Whitewater,Lake Geneva, Edgerton andDelavan.

Additional facilities and services during 1994-1997

Adolescent psychiatry services at Mercy OptionsAcquired Parkside Lodge (alcohol and drug treatment services)Consolidation of Mercy Options mental health and addiction servicesMercy Brodhead Medical CenterIntegration of Visiting Nurse Health Care Services Mercy Walworth Medical CenterEmployment of radiologistsMercy Walworth ambulatory surgery center became Medicare certifiedMercy Beloit Medical Center Senior ConnectionEmployment of emergency medicine physicians Renovation of Mercy Edgerton Medical CenterParish nurse programMercy in MotionExpansion of Mercy Walworth Medical Center Renovation of Mercy Options at Mercy HospitalConsolidation of alcohol and drug treatment services Mercy Options Cooperative Childcare Institute Employment of anesthesiologistsMercy Harvard Clinic SouthHouse of Mercy Homeless CenterConsolidation of Mercy Options at Franklin StreetExpansion of Mercy Beloit Medical Center Acquisition of Beverly Pharmacy at Mercy Clinic EastMercy Milton PharmacyMercy Crystal Lake PediatricsMercy Clinic West pharmacyRenovation of Mercy Oncology/Hematology Center

1994-1997nineteen ninety-four

nineteen ninety-seven

1994

1994

1996

MercyCare Insurance Companywas established in 1994. Today,MercyCare has over 30,000 members and offers several healthinsurance plans to employers in southern Wisconsin and northernIllinois.

In 1994, Mercy Health Systemmerged with the Visiting NurseAssociation, now known as MercyAssisted Care, which offers numeroushome health, hospice, residentialcare, transportation, and durable medical equipment services to thecommunity.

The opening of Mercy Harvard ClinicSouth in 1996 signaled Mercy’s growth into Illinois. Three years later, a multi-specialty clinic, complete with a pharmacy, ambulatory surgery areaand immediate care clinic, was openedin Woodstock. Other Illinois clinicsopened in the 90s including MercyBarrington, Mercy Cary and MercyRichmond.

1996

Javon R. Bea noted that a growing number of emergency room patientswere listing the family car as their primary address. Seeing a need forshort-term emergency housing for thearea’s homeless, the House of MercyHomeless Center opened in 1996.Since opening over a decade ago, theCenter has provided shelter for over3,500 individuals, half of whom werechildren.

Additional facilities and services during 1998-2000

Mercy Richmond Medical CenterMercy Men’s Health CenterRenovation of physical/occupational therapy departments Mercy Walworth Sports Medicine and Rehabilitation CenterConstruction of twin cardiac catheterization labsMercy Occupational Conditioning Center renovationNew Transitional Work Program Sports Medicine Fellowship ProgramAngiography suite enhancementsMercy Health Mall expansionMercy Barrington Medical CenterMobile MRI services at Mercy Walworth Medical CenterVascular surgery programInstallation of Sieman’s Symphony MRI at Mercy HospitalRenovation of Cardiac Rehabilitation CenterMercyCare offered as health plan to General Motors employeesMercy Assisted Care Treatment Coordination Center Mercy Business Center Mercy Milton Medical CenterMercy Woodstock Medical Center Mercy Regional Dialysis CenterMercy Crystal Lake Medical Center-WestInpatient acute dialysis servicesCT at Mercy WoodstockMRI at Mercy WoodstockMercy Regional Breast Center Pain Center at Mercy Clinic WestInstallation of the HillRom Nursing/Patient Communication SystemInpatient massage therapy services for obstetrics patientsLASIK services at Mercy Hospital and Mercy WoodstockMercy Regional Urology CenterIntra-cranial thrombolysis

1998-2000nineteen ninety-eight

two thousand

1998

2000

2000

The Mercy Regional BreastCenter opened in 2000 to provide a full array of services that help create ahealthy quality of life forwomen of all ages. Theseservices include mammo-grams, breast ultrasound,breast MRI, stereotacticbreast biopsy, bone density screenings, and assessmentsand referrals.

In 1998, the Mercy Health Mall, a unique health and wellness superstore, opened. Today the Mall offers a vision center, pharmacy,urgent care, occupational medicine and conditioning, durable medical equipment, a cardiac rehabilitation and fitness center, complementary medicine, community education classes, physicianclinic, Mercy Diabetes Center, Coffee Creations, and SeniorConnection, a free service for adults aged 55 and older.

This time period saw advances in technology at Mercy including twin state-of-the-art catheterization labs,angiographic suite enhancements, mobileMRI services at Mercy Walworth, MercyWoodstock and Mercy Harvard Hospital,and the installation of a new MRI unit atMercy Hospital.

2000

During this time, Mercy alsoadded a dozen new servicesand clinics, including LASIK laservision correction, intra-cranialthrombolysis treatment, additionalCT and MRI services inWoodstock, and the opening ofMercy Richmond, Mercy Milton,Men’s Health Center, TreatmentCoordination Center, RegionalDialysis Center, Pain Center, vascular surgery program andRegional Urology Center.

Additional facilities and services during 2001-2003Mercy Algonquin Medical CenterRenovation of Treatment Coordination Center OPCAB (off-pump coronary artery bypass) surgeryStealthStation Surgery Guidance System at Mercy HospitalMercy Walworth satellite emergency departmentMercy Acceleration Sports Training ProgramRenovation of Mercy Sports Medicine and Rehabilitation CenterBispectral Index Monitor (BIS) for anesthesiology at Mercy HospitalPET scanning (mobile services)Inpatient medical service (hospitalist) programExpansion of Mercy Walworth Medical CenterMercy Walworth Rehabilitation Center relocated to Mercy Walworth Medical CenterMercy Barrington ENT/Plastic Surgery Medical CenterMercy Crystal Lake Medical Center-EastMercy McHenry Medical Center Electronic claims processing Rehabilitation services at Mercy Woodstock and Mercy BrodheadMercy Walworth heliportMercy Sharon Medical CenterMercy Harvard Sleep Disorders LaboratoryMercy Harvard Care CenterMercy Bariatric CenterMercy Harvard Rehabilitation and Fitness CenterInformation systems upgrade of network infrastructureCoronary artery screening at Mercy Walworth Mercy Regional Sleep Disorder Center Piloting of computer kiosksHealthy Family ProgramMercy Travel Clinic Health Services Academy Physiatry clinic outreach to Mercy WalworthStress lab at Mercy WalworthNewborn infant security system installation at Mercy HospitalSoftware Refill Telemanager System for all Mercy pharmaciesIndigo Laser at Mercy Men’s Health Center for prostate treatment Renovation of Cardiac Rehabilitation CenterLower level Mercy Delavan renovationWhitewater Aquatic Center partnershipRenovation of Occupational Conditioning CenterMercy McHenry Occupational MedicineSensation 16 multi-row CT scanner at Mercy HospitalSports medicine outreach services at Harvard High SchoolDonation of Mercy Lodge to Family Services of S. WI and N. ILExpansion of Mercy WalworthOccupational medicine at Mercy WoodstockPost-operative epidural pain serviceRenovations of cardiology ECHO at Mercy HospitalRenovation of Mercy Regional Plastic Surgery CenterMercy Harvard Hospital

2001-2003two thousand one

two thousand three

2001

2001

2003

The Mercy Acceleration SportsTraining Program, based on theinternationally acclaimed FrappierAcceleration® program, is a unique and innovative conditioning program designedto optimize an athlete’s strength,speed, power and agility. The Center trains athletes ages 13 through adult.

In 2001, Mercy opened Wisconsin’sfirst satellite emergency departmentat Mercy Walworth Medical Center in Lake Geneva, WI.

In 2003, Mercy formed a partnershipwith the City of Whitewater and theWhitewater School District to bring theMercy Fitness and Whitewater AquaticCenter to area residents. The facility holdsa 30,000-square-foot indoor waterpark with a separate lap pool. Mercy then built a 6,000-square-foot fitness center, fullyoutfitted with strength training and aerobicequipment, which hosts exercise andcommunity education classes for all ages.

2003

Mercy welcomed Harvard MemorialHospital and its affiliates into its family in2003. The 77-bed acute care hospitalacquired a new name, Mercy HarvardHospital, and offered local residents a newlevel of care, with medical specialties previ-ously unavailable in the Harvard, Illinoisarea. A multi-million dollar renovation andremodeling of Mercy Harvard Hospital andthe adjacent Mercy Harvard Hospital Clinic included larger, state-of-the-art surgical suites, an expanded laboratory, arestructured emergency room, an enlargedconference center and much more.

Additional facilities and services during 2004-2007Mercy Crystal Lake OB/GYN Renovations at Mercy Clinic SouthCT wellness screening Stride for Health mall walking program at Janesville MallMercy Harvard Hospital lab renovationValet service at Mercy HospitalHigh-dose rate brachytherapy at the Mercy Regional Cancer CenterVNUS closure radiofrequency ablation of veins procedure Renovations at Mercy Clinic EastMercy McHenry Medical CenterCritical access hospital status at Mercy Harvard HospitalMercy Center for Corrective Eye Surgery in McHenryMohs micrographic surgery (skin cancer treatment) at Mercy WalworthMercy Mall Clinic chiropractic servicesOccupational medicine at Mercy Harvard Clinic SouthExpansion of urgent care hours at Mercy Clinic South (weeknights)Renovation of Mercy Regional Lung Center at Mercy Assisted CareExpansion of Mercy Regional Sleep Disorders Center Mercy Fox River Grove Medical CenterMercy Northwest Women’s GroupRenovation of radiation oncology at Mercy HospitalMercy Harvard Hospital operating room renovationPeri-operative computerized documentation systemMercy Harvard Hospital emergency department renovationMercy Harvard Hospital ambulatory surgery renovationMercy Bariatric Wellness Center-Vernon HillsMercy TerraceMercy Harvard Clinic North Mercy Harvard Hospital vascular program Mercy Institute of NeuroscienceMail order pharmacy services at Mercy Milton Renovation of hematology/oncology at Mercy HospitalExpansion of Mercy Woodstock Medical Center Mercy Walworth Hospital and Medical Center critical access statusMobile MRIRadiofrequency vein ablation procedure at Mercy Harvard HospitalPiGalileo computer-assisted orthopaedic surgery systemMercy Hospital emergency department waiting room renovationMercy Hospital cafeteria renovation Mercy Woodstock Orthotic CenterEasy compression system (ECS) mammography at Mercy Harvard HospitalMercy Crystal Lake East expansion Mercy Assisted Care telemonitoring equipment for home health monitoringMercy Lakeside Orthopaedics Mercy In Motion services in IllinoisJanesville Geriatric Assessment CenterPartnership with Community Health Center, Inc. Mercy Harvard Hospital cafeteria renovationRenovation of nursing services office Renovation of Mercy Clinic East urgent care Renovation of Mercy Health MallExpansion of Mercy Cardiac Fitness Center Renovation of Mercy Pain CenterMercy Orthotics and Prosthetics Center at Mercy Beloit and Mercy Woodstock30-minute service commitment at all urgent/immediate care clinics

2004-2007two thousand four

two thousand seven

2004

2006

2006

In 2006, Mercy WalworthMedical Center became Mercy Walworth Hospital andMedical Center. The transforma-tion of Mercy Walworth from anoutpatient center to a licensedhospital facility fulfills our ongoing commitment to bringmuch-needed hospital care closer to the thousands of residents of Walworth Countyand the Southern Lakes area.

The radiation therapy department of the MercyRegional Cancer Center acquired its newest weaponfor its war on cancer—the amazing PRIMATOM radiation therapy delivery system—in 2004. This digital, three-dimensional system, the only one of itskind in the Midwest and one of only eight in the country, enables radiation oncologists to more precisely target and attack malignant tumors with high-er doses of radiation, while minimizing damage to nearby healthy cells. Mercy also constructed a20,000-square-foot addition to the Cancer Center tohouse the new system.

Mercy acquired a Siemens®

mobile MRI unit that travelsbetween Mercy facilities inJanesville, Walworth, Harvardand Woodstock, bringing state-of-the-art imaging technology closerto home for many individuals. Thisnew magnetic resonance imagingtechnology allows for improvedimage resolution, leading to moreaccurate diagnoses.

20062004

In 2006, the Mercy Regional NeurosurgeryCenter became part of the Mercy Institute ofNeuroscience. Using a multi-disciplinaryapproach to diagnosis and treatment, the MINDteam specializes in complex neurological andneurosurgical problems of the brain and spine.

Since 2004, Illinois residents saw seven new Mercy clinics open:

• Mercy Crystal Lake OB/GYN• Mercy Bariatric Wellness Center in Vernon Hills• Mercy Fox River Grove Medical Center• Mercy Northwest Women’s Group in Lake in the Hills• Mercy Harvard Clinic North• Mercy McHenry Medical Center• Mercy Centers for Corrective Eye Surgery

The outstandingwork ethic of Mercy partners is infectious.

Jacob Gerzenshtein, MD, plastic surgeon

““ where we’re goingAt Mercy Health System, our future efforts focus on your improved health and well being.We constantly add new technology and new medical specialties and services, renovateexisting facilities, expand into underserved communities, and seek new opportunities forimprovement to serve you better.

As part of our growth, we have many exciting plans:

• For moms and dads, we’re promoting family-centered maternity care by creatingnew home-like patient rooms at the New Generations obstetrical unit at MercyHospital.

• Patient access to services will be easier as we move Mercy Hospital’s newlyexpanded laboratory to the ground floor.

• To provide expanded services to our patients, Mercy Hospital’s outpatient surgerycenter will double in size and be outfitted with the latest technology.

• To expand our world-class cancer care, we’re upgrading our computerized tomography simulation equipment at the Mercy Regional Cancer Center.

• For greater patient comfort and privacy, we’re relocating the Mercy Pain Center atMercy Hospital to the ground floor.

• In response to community feedback, we added inpatient services to the MercyWalworth Hospital and Medical Center, and will add a new inpatient bed tower.

• In response to identified community needs in northern Illinois, we continue toexpand services.

• We continue to expand specialty and surgical services at Mercy Harvard Hospitalas needs are identified.

• We continue our implementation of our physician clinic electronic medical record(EMR) program across the System to improve communication and sharing of patientrecords between physicians and clinics.

• Mercy’s Web site, MercyHealthSystem.org, is being upgraded to provide the latest in web portal technology and interactivity for all users. The web site will provide extensive health information, including Mercy’s screenings, classes andmuch more.

• In response to your feedback, we’re expanding the Mercy Milton Medical Centerto include more physicians as well as physical and occupational therapy services.

• Building on our successful Janesville Community Health Center model at MercyClinic South in Janesville, we continue to create community partnerships to bringvital health care services to all residents, regardless of income or resources.

We value your opinions and suggestions. It’s through listening to your thoughtfulfeedback that we learn and move forward to create a health system that best servesyour family. Thank you for your continued support of Mercy Health System.

[ ]

(Walworth Facility)

Janesville

Signifies a location with a �Mercy Health System facility.

MERCY HEALTH SYSTEMMember of the Mercy Alliance, Inc.

MercyHarvardHospital

Mercy Hospital

MercyWalworthHospital &MedicalCenter

Janesville

Signifies a location with a �Mercy Health System facility.

MERCY HEALTH SYSTEMMember of the Mercy Alliance, Inc.

200763 facilities

24 communities

19891 facility

1 community

The quality of care I received before, during and after my surgery was nothing short of exceptional.

Theresa Bodnar, Mercy patient“ ”

mapping our growthI give Mercy straight A’s. The staff at Mercy is great.

Dan Peters, Mercy patient“ ”