“Embracing a New Era,” United Health Services’ 2007 Annual Report, is a publication of the Marketing and Community Relations Department of United Health Services, 10-42 Mitchell Ave., Binghamton, NY, 13903.

Christina Boyd, Vice President; William Michael, Communications Coordinator; Sandra Walker, Graphic Designer. For information, call 607.762.2336 or visit www.uhs.net 2 0 0 7 A N N U A L R E P O R T

Embracinga new era

Clinical Excellence

Market Growth

Financial Strength

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U N I T E D H E A LT H S E R V I C E S

“As we move forward as a system, it is clear that our focus must be on three main goals: clinical excellence,market growth and financial strength.”– Matthew J. Salanger, FACHE

President and Chief Executive OfficerUnited Health Services

Our MissionUnited Health Services is a comprehensive regional health care system whose mission is to improve the health of those we serve through our commitment to excellence in all that we do.

Our VisionBy 2011, United Health Services will be a tightly integratedhealth care system recognized as a leading provider ofhealth care services in our region, distinguished for superior quality in clinical care and service.

Our ValuesCaringServicePartnershipLearningIntegrityRespectStewardship

Table of ContentsEmbracing a Shared Vision:Letter from President and Chair 1

Advances for a New Era 2

Excellence with a Shared Vision 4

Preparing Today for a New Era 6

Accomplishments 8

Financial Summary 10

Serving our Community 11

Governance 12

Embracinga shared vision

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Within the past few months, we at United Health Services haveembarked on one of the mostambitious endeavors in our history– a transformation of our organi-zation from a collection of memberand affiliate institutions into a closely knit system of health care services, sharing one vision,one purpose and one culture.

Our board members and manage-ment team have embraced a new,three-year strategic plan that seeksto break down barriers betweensystem members, so that all com-ponents of our system can workmore smoothly toward commongoals. This will transition us frompast approaches of coordinatinga wide variety of member strategies,to United Health Services now de-ploying all of our resources with asingle-minded passion to be the best.

Today, hospitals, nursing homes,clinics and physician practices areunder closer observation than everbefore. Consumers have access to

more information than ever, and areusing it to make the key medicaldecisions of their lives. That’s whyit is so important for us to neverlose sight of our commitment toquality. All of us in the health carefield will provide our patients withthe best in care when we stay trueto our original reasons for choos-ing health care as our life’s work.

As we move forward as a system,it is clear that our focus must beon three main goals:

• Clinical Excellence• Market Growth • Financial Strength

They are the backbone of the futureof health care, not just for us, butfor hospitals and other health net-works and organizations acrossthe country. By focusing on ourclinical, market and financial priori-ties, we will ensure our success today and our viability tomorrow.

Our vision is a bold one. By 2011,we seek to be a tightly integrated

system, recognized by our patients,physicians and community as a lead-ing provider of health services in ourregion, widely known and distinguishedfor the superior quality of our clinicalcapabilities.

Throughout 2007, our organization’sleaders worked hard to help us getstarted in that direction. We sought to improve patient access to services,expand computer technology to bettermanage each patient’s visit with us,and become proficient in the use ofthe latest clinical advances and mostcompassionate methods of care toenhance the total patient experience.

We are moving away from simplemethodical growth toward a teamapproach that features a sharp focus,high expectations and results that aremeasurable. We believe that every-one on our team has the power tomake a difference, and that everyonein our region will ultimately benefitfrom the renewed passion we willbring to the art of healing.

MATTHEW J. SALANGERPresident and Chief Executive OfficerUnited Health Services

MICHAEL SCULLARDChairman, Board of DirectorsUnited Health Services

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CHENANGO MEMORIALHOSPITALThomas Emerson, Esq, ChairRobert Nassar,

1st Vice ChairMatthew Salanger, FACHE,

2nd Vice ChairEric Larsen, SecretaryKurt Edwards, TreasurerChristopher CalhounJoanne CevascoAnthony Cicoria, MDRajesh Davé, MDMartin DietrichRobert Gomulka, CPAYusuf Harper, MD, (by office)Peter Kwasnik Marilyn Quinney,

Auxiliary RepresentativeAaron Valentine

Drake Lamen, MD, President/CEO

DELAWARE VALLEYHOSPITALEdward Schott, ChairHelen Johnston, RN

1st Vice ChairRajesh Dave, MD,

2nd Vice ChairEdward Snow, SecretaryGeorge Mack, PhD,

TreasurerPaul CarlstromMichael Freeman, DO

(Medical Staff President)Rev. Larry Light

David Polge,President/CEO

UNITED HEALTH SERVICESHOSPITALSDiana Bendz, ChairMichael Scullard,

Immediate Past ChairBruce Bowling, MD,

1st Vice ChairMatthew Salanger, FACHE,

2nd Vice ChairSusan Mistretta, Esq,

SecretaryJerome CannyBarbara Chaffee, MDHoratio DensonAlex DePersisGarabed Fattal, MDSarah Gueldner, DSNCarol Miller, MDJudith PeckhamJames VanVoorst

Matthew Salanger, FACHE,President/CEO

UNITED MEDMANAGEMENT, INC.Sean Brady, ChairMatthew Salanger, FACHE,

Vice ChairJames Jewell, MD, SecretaryDavid Kwiatkowski, MD, TreasurerHarold BeamFrank Eder, MDBrenda MorriseyGregory Scagnelli, MD

Alan Miller, MDAngela IacovelliExecutive Co-Directors

UNITED MEDICAL ASSOCIATESJames Jewell, MD, ChairDavid Kwiatkowski, MD, Vice ChairFrank Eder, MD, SecretaryGregory Scagnelli, MD, TreasurerLeonard Anderson, MDPeter LoFaso, MDSriram Nirgudkar, MDDennis Perenyi, MDMark Shumeyko, MDLawrence Wiesner, MD

Alan Miller, MDAngela IacovelliExecutive Co-Directors

IDEAL SENIOR LIVING CENTER/IDEAL SENIOR LIVING CENTERHOUSING CORP.Daniel Seiden, Esq, ChairPeter Newman,

Immediate Past ChairAnn McNichols, 1st Vice ChairJoseph Cerra, 2nd Vice ChairSam Lupo, SecretaryAlbert Kukol, Esq, TreasurerDonald Carlin, EsqJames Leonard, CPAMichael McGoff, PhDRobin MeadNatalie ThompsonJudith Whiteman

Maria Motsavage,President/CEO

PROFESSIONAL HOMECARE, INC./TWIN TIERHOME HEALTH, INC.Linda Best, ChairDiane Brown, 1st Vice ChairMatthew Salanger, FACHE,

2nd Vice ChairFerris Akel, SecretaryLeslie Distin, TreasurerDouglas Kerr, MDRonald LeschKenneth Miller

Joseph Cerra,President/CEO

UNITED HEALTH SERVICESFOUNDATIONRobin Mead, ChairStephen Feehan,

Immediate Past ChairRobert Grace, Vice ChairEric Niermeyer, TreasurerCynthia Elinoff,

Asst. TreasurerJennifer Schorr, SecretaryRonald Sall, Asst. SecretaryBetsy Carlin,

Member-at-LargeLawrence Anderson, EsqArthur ChristensenJoseph CookJames DanielsBette Anne GaubePhyllis GilroyRonald GoodwinPeter GriffithsNaima KradjianRonald LeschKathryn Grant Madigan, EsqCarolyn ManciniJoseph Meagher, EsqJohn RenzFrederick Russell

Ex-Officio:Matthew Salanger, FACHEMichael Wolff, MDSandra Shaw, BGH Auxiliary President

Joan Storer, Wilson Auxiliary President

Betsy Pietriyk, Executive Director

UNITED HEALTH SERVICES,INC.Michael Scullard, ChairJudith Peckham,

Immediate Past ChairMartin Dietrich,

Vice ChairRonald Lesch, SecretaryDiana Bendz, TreasurerFerris AkelBruce Bowling, MDHelen Johnston, RNJames Leonard, CPASusan Mistretta, EsqRobert NassarGregory Scagnelli, MDEdward SchottMark Shumeyko, MDNatalie ThompsonShawn Yetter

Matthew Salanger, FACHE,President/CEO

Governance

bination of resources, skills and equipment, and a willingness towork together.

Throughout 2007, United HealthServices added many other high-tech advances designed to improvesafety, comfort and medical out-comes.

Neurosurgeons performed theregion’s first artificial cervical discreplacement surgery, just the lateststep in a number of revolutionaryadvances in the treatment ofdegenerative disc disease.

And vascular surgery at UnitedHealth Services has advancedwith the addition of a procedurethat treats a thoracic aneurysm, a potentially fatal bulge in a majorartery near the heart. Surgeonsand interventional radiologists use computer-guided technologyto insert a woven graft into thebulge, preventing rupture.

Not all developments occurred in the surgical realm, however.Advances that often mean the mostto patients are the ones improvingthe quality of the nursing, medica-tion, imaging and recordkeepingservices they receive.

The organization continued a moveto maintain all patient recordselectronically so that they can beprotected from damage andaccessed more quickly. The goal isto provide seamless recordkeep-ing in all settings, from a doctor’soffice to the operating room.

The Picture Archiving and Com-munication System is revolutioniz-ing diagnostic imaging, taking adigital approach to the storageand retrieval of patient X-rays and speeding diagnosis of seriousillnesses and injuries.

When CyberKnife cancer-fightingtechnology was first introducedthree years ago, it was used to treatonly tumors of the brain and spinalcord. But by 2007, teams on ourWilson Medical Center campusbegan using this most advancedform of stereotactic radiosurgeryto zero in on prostate cancer as well.

The new prostate option is virtuallynon-invasive and no hospitaliza-tion is necessary. There is little orno recovery time, and a patient canresume normal activities right away.Most importantly, there is lesschance of life-altering side effects.

New technologiesThe cutting-edge CyberKnife Centerof New York at Wilson MedicalCenter is just one example of theexciting new technologies availablein our region today, thanks to theforesight and commitment of UnitedHealth Services and its physicianpartners. It shows what can be donein health care with the right com-

Advancesfor a new era

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Servingour community

Community Service

Service Overview

United Health Services employees, familyand friends turned out in record strengthin 2007 to spread the word and walkthe tracks in the battle against deadlydiseases in the community and acrossthe nation. Enthusiastic walkers, such asthe United Health Services “seUHSville”team, top photo, raised over $15,750 lastyear for the American Cancer Society’sRelay for Life. As the Signature Sponsorof the 2007 Southern Tier Heart Walk,United Health Services employees, likethose shown in the bottom photo, raisedover $27,000. Other charity eventsemployees participated in and raisedfunds for included: United Way’s Day ofCaring, March of Dimes’ WalkAmerica,MS Walk, Diabetes Walk, AIDS Walk,Making Strides Against Breast Cancer,Livestrong Challenge and the LeukemiaSociety’s Light the Night Walk. Employeesalso staffed community health screeningsduring the year.

United Health Services is a comprehensive health care systemfounded in 1981. In addition to its regional medical center, the system also includes three community hospitals, a physiciannetwork, family health centers, specialty care programs andservices, home health and long-term care services and otherhealth-related agencies. The entire United Health Servicessystem exists to improve our community’s health status andmeet its residents’ health care needs.

UnitedHealthServicesHospitals

UnitedMedicalAssociates

UnitedHealthServicesFoundation

ChenangoMemorialHospital

DelawareValleyHospital

IdealSeniorLivingCenter

ProfessionalHome CareandTwin TierHome Health

The administration of medicine topatients made a major stride during2007, as the use of special wrist-bands with electronic checkers at the bedside and robotic drugdispensing in the pharmacy wasexpanded to all inpatient andambulatory units at United HealthServices Hospitals. Nurses todayalso use portable bedside computersto instantly record each patient’smedical history and vital signs.

A positive effectThese are just a few of the clinicaladvances that have over the pastyear brought United Health Servicesto the next level of leadership ininpatient, outpatient, long-term andhome care.

But, as is often the case, a simpleimprovement in a medical devicecan have the most positive effecton a person’s life.

During the space shuttle Discovery’svoyage in October, ProfessionalHome Care provided a newlyenhanced type of portable oxygenunit that allowed astronaut DouglasWheelock’s dad, Olin, to attendhis son’s liftoff from Florida.

Said a thrilled Olin Wheelock:“The Space Age technology ofyour new oxygen concentrator iswhat made it possible for me totravel to Cape Canaveral for thelaunch of a lifetime.”

Neurosurgeons performedthe region’s first artificialcervical disc replacement surgery, just the latest stepin a number of revolutionaryadvances in the treatmentof degenerative disc disease.

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Financialsummary

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2007 Highlights (all figures in thousands)

Inpatient Services

Outpatient Services

Long-term Care (ECF)

Home Health Care

Other Operating Revenue & Non-Operating Revenue

TOTAL

Salaries

Supplies & Services

Employee Benefits

Provision for Bad Debts

Interest

Depreciation & Amortization

TOTAL

Net Surplus

Net Uncompensated & Charity Care

$ 198,900

270,200

17,100

14,500

20,800

$ 521,500

$ 222,200

179,600

62,700

26,100

5,400

20,500

$ 516,500

$ 5,000

$ 29,100

Operating Revenues

Operating Expenses

* The information here is based on preliminary financial drafts for United Health Services, Inc.and Affiliates for the year 2007. Final numbers are not expected to change materially.

As a not-for-profit health care organiza-tion, United Health Services seeks tomanage all of its resources wisely andeffectively, maintaining fiscal strength to prepare for the challenges andopportunities of the years ahead.

The organization finished 2007 with afinancial surplus, increased the dollaramount of its community benefit andrenewed its commitment to sound fiscalplanning for 2008 and beyond.

The system posted a net surplus of $5 million on revenues of $522 million, a positive performance given an increas-ingly difficult economic and regulatoryenvironment.

Inpatient services generated $199 million,while outpatient care furnished $270million and other services brought in$52 million. Total expenses were held to $517 million.

At the same time, the hospital, skillednursing, home, long-term and medicalservice organizations that make up thesystem provided the Southern Tier ofNew York with a record contribution in uncompensated care, standing at a total of $29.1 million.

This figure includes charity care, volun-teerism and subsidization of servicesthat save lives but are nonethelessoperated at a loss.

Every year since 1992, United HealthServices has submitted a communitybenefit report to the New York StateDepartment of Health. It reveals that the system’s commitment to the peopleof its region has grown by 14 percentper year over a 15-year period.

As we move forward toward our goalsof clinical excellence, market growth and financial strength, the principles offinancial stewardship that have guidedus since our incorporation in 1981 willremain the reality that fulfills the promiseand potential of our vision.

Working with Wellspring financial advisors, in 2007 our cost savings teams identifiedmore than $5.5 million in potential expensereductions. By year end, they had imple-mented many of these measures to cutexpenses without reducing quality of care.

Excellencewith a shared vision

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Renae Sarnoski, a physical thera-pist with Twin Tier Home Health,was caring for a homeboundpatient when she noticed that theoutdoor carpet on the person’sfront steps was tattered and poseda tripping hazard. The elderlyclient had not been able to findanyone to do the repair.

So Renae returned later, tools inhand, and replaced the carpet. Itseems she’s very handy like that.She also replaced a mailbox foranother client when she learnedthat the old one was falling apart.

Personal attentionQuality service is about advancedmedicine and leading-edge tech-nology, but it is about sharing avision for heartfelt, personal atten-tion as well. Outstanding work byhighly trained professionals whoalso care about what people arereally going through is not the exception at United Health Services,it’s the rule.

During 2007, our efforts to providepatients with the best in care andservice received wide recognition.For the second year in a row, wewere named one of the top 100cardiovascular hospitals in theUnited States –– one of only twofacilities in New York listed amongthe nation’s “Top 100” heart hospi-tals by Thomson Healthcare.

The annual Thomson award isbased on a hospital’s performancein treating congestive heart failureand heart attacks. The names ofthe 2007 winners appeared in theNov. 19 issue of ModernHealthcare, a leading nationalmagazine for the health care field.

During the year there was espe-cially good news for people whoarrived at our Wilson emergency

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A ‘Celebrity’ modelThe story of Ideal Senior LivingCenter’s development of its RedCarpet warm welcomes programfor residents and staff was featuredin a book by author and lecturerDonna Cutting. Ideal is one of the companies appearing in “TheCelebrity Experience: Insider Secretsto Delivering Red-Carpet Service,”a work designed to help companiesimprove customer service by fol-lowing the examples of Hollywoodservice businesses and “regularorganizations” like Ideal.

Praised by employeesOnce again our employees placedthe organization among the tophealth care systems in the country in employee satisfaction. In the2007 employee opinion survey, wescored in the 90th percentile amongcomparably sized hospital systemsnationwide. A majority of staffresponded that they “like it a lot” or “love it” at United Health Services.Matt Salanger, president and CEO,said, “The high score is a tribute to the devotion to teamwork andexcellence that is so evident by ourpeople across the system.” Eighty-five per cent of employees took thesurvey, a far better showing thanthe national average of 58 percent.

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64-slice CT scanner3D prenatal ultrasound

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room with heart blockages. Thosein need of balloon angioplastyreceived treatment faster than thetime recommended by nationalguidelines, according to statisticsreleased at the end of the year.

The American Heart Associationand the American College ofCardiology state that hospitalsshould achieve a “door-to-balloon”time of no more than 90 minutes.As of December 2007, all patientswho came to Wilson with a heartattack caused by blockage under-went angioplasty in less than 90minutes.

This new achievement placedUnited Health Services among thenation’s leading medical centers.According to a study published by the National Heart, Lung andBlood Institute, only 35 percent of hospitals reported an averagetime of 90 minutes or less, with48 percent clocking 91 to 120minutes.

And the people who provide can-cer care at United Health Servicesreceived high marks as well. TheAmerican College of Surgeons’Commission on Cancer grantedour cancer program three-yearapproval with commendation.

Only 40 percent of applying organ-izations in New York State receivethe coveted “with commendation”status. In this demanding evalua-tion, United Health Services physi-cians and staff received especiallyhigh praise for such measures asprevention, early detection andadherence to quality guidelines intreating patients.

Also on the cancer front in 2007,James Hayes, M.D., was selectedas one of the top cancer liaisonphysicians in the United States,receiving the Commission onCancer’s 2006 Cancer LiaisonPhysician Outstanding PerformanceAward.

Dr. Hayes, medical director ofSpecial Medical Projects and liaisonphysician with the cancer programat United Health Services Hospitals,was honored as a champion forpatients and a role model for otherdoctors and staff. He is describedas the driving force behind everyrecent success of the oncologyprogram, changing the way medical teams at the Hospitalscare for cancer patients.

We were recognized for our quality inhome-based care as well. Twin TierHome Health was ranked among thetop 10 percent of home care agenciesin the United States. For the secondyear in a row, Twin Tier received aHomeCare Elite Award, based on an evaluation by Outcome ConceptSystems, a national quality reportingagency that recognizes home healthcare providers.

The ranking measures Medicare-certified agencies like Twin Tier on the basis of quality outcomes, qualityimprovement and financial performance,according to the Outcome agencyand DecisionHealth, publisher of thenationally respected Home HealthLine newsletter.

Understanding needsOur commitment to quality means usingour training, skill and teamwork to dowhat is best for the patient. It alsomeans understanding patients’ needsat the most fundamental level, andencouraging them in the healing process.

This is perhaps best summed up inthe words of Kimberly Cosilmon, a muscular dystrophy patient whounderwent a difficult but ultimatelysuccessful rehabilitation after break-ing her leg. Ms. Cosilmon, an IdealHome Care client, commended hertherapist, Brian Shive, for his patience,compassion and willingness to giveher the nudge of support she needed.“It was very tough going, and often I wanted to give up on it,” she said.“But Brian never gave up on me.”

AccomplishmentsA few of the major achievements and recognitionsfor which United Health Services was noted during 2007

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Venturing beyond The CyberKnife Center of New Yorkperformed many treatments duringthe year, including new procedures inareas of the body such as the bladder,lungs and prostate. Originally devel-oped to target previously inoperablebrain tumors, this revolutionary formof stereotactic radiosurgery can beused now against cancer in mostparts of the body. CyberKnife surgeryis painless, requires no incision anddoes not harm adjacent tissue.

Revolutionizing a test While the stress test still has its placein diagnosing heart conditions, cardi-ologists now use highly sophisticatedimaging equipment to look for coronaryblockages. They employ a less-invasiveprocedure that takes less time than a stress test and is more accurate.Purchased in 2006, the region’s first64-slice computed tomography scan-ner, capturing detailed images in justa few seconds, saw its first full yearof use in 2007.

A first for the regionNeurosurgeon Saeed Bajwa, M.D.,performed the region’s first artificialcervical disc replacement surgery.Previously, patients with cervicaldisc problems underwent an oper-ation to fuse vertebrae, resulting in limited movement. Artificialdiscs allow for greater freedom of movement and more normalfunction of the spine. In addition,three spine surgeons participatedin a clinical study into the effective-ness of a new implant that helpspatients with lower-back and legpain.

Three-dimensional viewA new technology most often usedin the diagnosis of facial or spinalabnormalities became available inRadiology for three-dimensionalprenatal ultrasound. The ultra-sound provides a 3D image of afetus, offering an in-depth looknot found in traditional 2D scans.

School-based supportThe state announced grants in 2007 to health care institutionsthat operate school-based healthcare centers for children. ChenangoMemorial Hospital received$150,754 of the $3.2 million offeredby the grant program.

Lauded for careTwo members of the United HealthServices Hospitals medical staffreceived a top award from theNew York Chapter of the AmericanCollege of Physicians. Frank Floyd,M.D., and Robert Michaels, M.D.,were honored with the chapter’s2007 Laureate Award, two of onlyseven physicians statewide toreceive the honor. Both doctorsare fellows of the American Collegeof Physicians.

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CyberKnife

Preparingtodayfor a new era

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The future of health care seemsunpredictable. While Americansare living longer, healthier lives, it is also true that heart disease,cancer, diabetes and AIDS contin-ue to be major medical problemswith which our society must cope.

And while advances in medicine,surgery and rehabilitation are giving people more treatmentoptions than ever before, it’s alsoa fact that hospitals, employersand patients must continue towrestle with the high cost of care.Both the challenges and opportu-nities for those coping with illnessand those seeking to combat itare great.

A three-year planOne of United Health Services’ top priorities in 2007 was to planahead for these challenges andopportunities. One of our mostsignificant accomplishments was the development of a new

mission, vision and three-yearstrategic plan.

As we seek to be the leadingprovider of health care services in our region, we want patients tohave such a great experience withus that they choose us again forcare, whenever the need arises.To achieve this, we reinvigoratedour efforts to improve patientaccess to convenient care,enhance the patient experience so that it exceeds people’s expec-tations and expand the range ofprograms and services we offerthroughout the Southern Tier.

In 2007 the people of Tioga Countywelcomed their community’s firsturgent-care center when weopened the Owego Walk-in. Thisfacility means that Tioga area residents do not have to make along-distance trip to find a doctorin the evening or on weekends.

At Delaware Valley Hospital, projects during 2007 included theopening of a Physical Therapy andVisiting Specialists’ Center, as wellas the launch of construction on a new, $7.5 million EmergencyRoom and Imaging Center. Theproject will increase the size ofthe emergency facility from 1,100to 6,600 square feet, creating acenter that will feature seven bedsand five enclosed treatment areas.

At Chenango Memorial Hospital,the Foundation launched a campaignto raise money for the moderniza-tion of a major portion of the facility.The project will renovate the inpatientmedical/surgical unit on the thirdfloor, complete with an upgradednurses’ station and new lighting.

United Health Services became amore familiar brand name in theElmira area during 2007 when

In one of our most ambitiousendeavors, in 2007 we beganthe process of bringingtogether the two largest members of our system ––United Health ServicesHospitals and United Medical Associates –– under a common umbrella.

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Professional Home Care opened a new office in Campbell, N.Y.,centrally located to provide clinicalinfusion and respiratory servicesas well as durable medical equip-ment to clients in the ChemungCounty area.

In one of our most ambitious endeav-ors, in 2007 we began the processof bringing together the two largestmembers of our system — UnitedHealth Services Hospitals andUnited Medical Associates — undera common umbrella. We submitteda plan to the New York StateDepartment of Health to allow thesetwo organizations to work muchcloser together. We have combinedthe Human Resources divisions of both organizations and areworking on the next step — thesmooth integration of the entireworkforce and network of primarycare and specialty offices.

This will allow our physicians andour hospitals to function with acommon vision and furnish muchmore coordinated care. In addition,the consolidation will help us makemore efficient decisions about thedevelopment of primary care sitesand the location of ancillary serv-ices such as pharmacy and labo-ratory. One of the key goals of thisintegration is the improvement ofpatient access to the servicesupon which they often depend.

Also during the year, we followedthrough on our commitment tofind over $3.8 million in potentialnon-labor-related cost savings atUnited Health Services Hospitals.

Working with the Wellspring finan-cial advisors, our cost-savings teamsidentified more than $5 million inpotential expense reductions, inareas such as supplies, pharma-ceuticals, laboratory procedures

and environmental services. Byyear end, they had implementedmany of these measures to cutexpenses by tens of thousands of dollars, all without reducingquality of care.

Making a connectionThroughout the year, we continuedour efforts to anticipate people’sneeds, both those of today andthose of the future. With the helpof grants and the cooperation ofmany community partners, weexpanded our asthma educationprogram for children, an initiativeto encourage kids to eat healthymeals in their school cafeterias, a school-based health programand our efforts to help people ofall ages quit smoking.

And many of our endeavors wererecognized for their innovation andtheir success in connecting with realpeople facing real health concerns.For example, we were featured in

“Connecting with Communities,”a book published by the HealthcareAssociation of New York State, whichpraised Delaware Valley Hospital’sprescription delivery service that isso popular with rural residents.

In describing the program, the booknoted: “Over the past decade, morethan 10,000 prescriptions have beendelivered. The goodwill this has gen-erated has come back to the hospitalover and over again.”

Preparingtodayfor a new era

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The future of health care seemsunpredictable. While Americansare living longer, healthier lives, it is also true that heart disease,cancer, diabetes and AIDS contin-ue to be major medical problemswith which our society must cope.

And while advances in medicine,surgery and rehabilitation are giving people more treatmentoptions than ever before, it’s alsoa fact that hospitals, employersand patients must continue towrestle with the high cost of care.Both the challenges and opportu-nities for those coping with illnessand those seeking to combat itare great.

A three-year planOne of United Health Services’ top priorities in 2007 was to planahead for these challenges andopportunities. One of our mostsignificant accomplishments was the development of a new

mission, vision and three-yearstrategic plan.

As we seek to be the leadingprovider of health care services in our region, we want patients tohave such a great experience withus that they choose us again forcare, whenever the need arises.To achieve this, we reinvigoratedour efforts to improve patientaccess to convenient care,enhance the patient experience so that it exceeds people’s expec-tations and expand the range ofprograms and services we offerthroughout the Southern Tier.

In 2007 the people of Tioga Countywelcomed their community’s firsturgent-care center when weopened the Owego Walk-in. Thisfacility means that Tioga area residents do not have to make along-distance trip to find a doctorin the evening or on weekends.

At Delaware Valley Hospital, projects during 2007 included theopening of a Physical Therapy andVisiting Specialists’ Center, as wellas the launch of construction on a new, $7.5 million EmergencyRoom and Imaging Center. Theproject will increase the size ofthe emergency facility from 1,100to 6,600 square feet, creating acenter that will feature seven bedsand five enclosed treatment areas.

At Chenango Memorial Hospital,the Foundation launched a campaignto raise money for the moderniza-tion of a major portion of the facility.The project will renovate the inpatientmedical/surgical unit on the thirdfloor, complete with an upgradednurses’ station and new lighting.

United Health Services became amore familiar brand name in theElmira area during 2007 when

In one of our most ambitiousendeavors, in 2007 we beganthe process of bringingtogether the two largest members of our system ––United Health ServicesHospitals and United Medical Associates –– under a common umbrella.

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Professional Home Care opened a new office in Campbell, N.Y.,centrally located to provide clinicalinfusion and respiratory servicesas well as durable medical equip-ment to clients in the ChemungCounty area.

In one of our most ambitious endeav-ors, in 2007 we began the processof bringing together the two largestmembers of our system — UnitedHealth Services Hospitals andUnited Medical Associates — undera common umbrella. We submitteda plan to the New York StateDepartment of Health to allow thesetwo organizations to work muchcloser together. We have combinedthe Human Resources divisions of both organizations and areworking on the next step — thesmooth integration of the entireworkforce and network of primarycare and specialty offices.

This will allow our physicians andour hospitals to function with acommon vision and furnish muchmore coordinated care. In addition,the consolidation will help us makemore efficient decisions about thedevelopment of primary care sitesand the location of ancillary serv-ices such as pharmacy and labo-ratory. One of the key goals of thisintegration is the improvement ofpatient access to the servicesupon which they often depend.

Also during the year, we followedthrough on our commitment tofind over $3.8 million in potentialnon-labor-related cost savings atUnited Health Services Hospitals.

Working with the Wellspring finan-cial advisors, our cost-savings teamsidentified more than $5 million inpotential expense reductions, inareas such as supplies, pharma-ceuticals, laboratory procedures

and environmental services. Byyear end, they had implementedmany of these measures to cutexpenses by tens of thousands of dollars, all without reducingquality of care.

Making a connectionThroughout the year, we continuedour efforts to anticipate people’sneeds, both those of today andthose of the future. With the helpof grants and the cooperation ofmany community partners, weexpanded our asthma educationprogram for children, an initiativeto encourage kids to eat healthymeals in their school cafeterias, a school-based health programand our efforts to help people ofall ages quit smoking.

And many of our endeavors wererecognized for their innovation andtheir success in connecting with realpeople facing real health concerns.For example, we were featured in

“Connecting with Communities,”a book published by the HealthcareAssociation of New York State, whichpraised Delaware Valley Hospital’sprescription delivery service that isso popular with rural residents.

In describing the program, the booknoted: “Over the past decade, morethan 10,000 prescriptions have beendelivered. The goodwill this has gen-erated has come back to the hospitalover and over again.”

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room with heart blockages. Thosein need of balloon angioplastyreceived treatment faster than thetime recommended by nationalguidelines, according to statisticsreleased at the end of the year.

The American Heart Associationand the American College ofCardiology state that hospitalsshould achieve a “door-to-balloon”time of no more than 90 minutes.As of December 2007, all patientswho came to Wilson with a heartattack caused by blockage under-went angioplasty in less than 90minutes.

This new achievement placedUnited Health Services among thenation’s leading medical centers.According to a study published by the National Heart, Lung andBlood Institute, only 35 percent of hospitals reported an averagetime of 90 minutes or less, with48 percent clocking 91 to 120minutes.

And the people who provide can-cer care at United Health Servicesreceived high marks as well. TheAmerican College of Surgeons’Commission on Cancer grantedour cancer program three-yearapproval with commendation.

Only 40 percent of applying organ-izations in New York State receivethe coveted “with commendation”status. In this demanding evalua-tion, United Health Services physi-cians and staff received especiallyhigh praise for such measures asprevention, early detection andadherence to quality guidelines intreating patients.

Also on the cancer front in 2007,James Hayes, M.D., was selectedas one of the top cancer liaisonphysicians in the United States,receiving the Commission onCancer’s 2006 Cancer LiaisonPhysician Outstanding PerformanceAward.

Dr. Hayes, medical director ofSpecial Medical Projects and liaisonphysician with the cancer programat United Health Services Hospitals,was honored as a champion forpatients and a role model for otherdoctors and staff. He is describedas the driving force behind everyrecent success of the oncologyprogram, changing the way medical teams at the Hospitalscare for cancer patients.

We were recognized for our quality inhome-based care as well. Twin TierHome Health was ranked among thetop 10 percent of home care agenciesin the United States. For the secondyear in a row, Twin Tier received aHomeCare Elite Award, based on an evaluation by Outcome ConceptSystems, a national quality reportingagency that recognizes home healthcare providers.

The ranking measures Medicare-certified agencies like Twin Tier on the basis of quality outcomes, qualityimprovement and financial performance,according to the Outcome agencyand DecisionHealth, publisher of thenationally respected Home HealthLine newsletter.

Understanding needsOur commitment to quality means usingour training, skill and teamwork to dowhat is best for the patient. It alsomeans understanding patients’ needsat the most fundamental level, andencouraging them in the healing process.

This is perhaps best summed up inthe words of Kimberly Cosilmon, a muscular dystrophy patient whounderwent a difficult but ultimatelysuccessful rehabilitation after break-ing her leg. Ms. Cosilmon, an IdealHome Care client, commended hertherapist, Brian Shive, for his patience,compassion and willingness to giveher the nudge of support she needed.“It was very tough going, and often I wanted to give up on it,” she said.“But Brian never gave up on me.”

AccomplishmentsA few of the major achievements and recognitionsfor which United Health Services was noted during 2007

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Venturing beyond The CyberKnife Center of New Yorkperformed many treatments duringthe year, including new procedures inareas of the body such as the bladder,lungs and prostate. Originally devel-oped to target previously inoperablebrain tumors, this revolutionary formof stereotactic radiosurgery can beused now against cancer in mostparts of the body. CyberKnife surgeryis painless, requires no incision anddoes not harm adjacent tissue.

Revolutionizing a test While the stress test still has its placein diagnosing heart conditions, cardi-ologists now use highly sophisticatedimaging equipment to look for coronaryblockages. They employ a less-invasiveprocedure that takes less time than a stress test and is more accurate.Purchased in 2006, the region’s first64-slice computed tomography scan-ner, capturing detailed images in justa few seconds, saw its first full yearof use in 2007.

A first for the regionNeurosurgeon Saeed Bajwa, M.D.,performed the region’s first artificialcervical disc replacement surgery.Previously, patients with cervicaldisc problems underwent an oper-ation to fuse vertebrae, resulting in limited movement. Artificialdiscs allow for greater freedom of movement and more normalfunction of the spine. In addition,three spine surgeons participatedin a clinical study into the effective-ness of a new implant that helpspatients with lower-back and legpain.

Three-dimensional viewA new technology most often usedin the diagnosis of facial or spinalabnormalities became available inRadiology for three-dimensionalprenatal ultrasound. The ultra-sound provides a 3D image of afetus, offering an in-depth looknot found in traditional 2D scans.

School-based supportThe state announced grants in 2007 to health care institutionsthat operate school-based healthcare centers for children. ChenangoMemorial Hospital received$150,754 of the $3.2 million offeredby the grant program.

Lauded for careTwo members of the United HealthServices Hospitals medical staffreceived a top award from theNew York Chapter of the AmericanCollege of Physicians. Frank Floyd,M.D., and Robert Michaels, M.D.,were honored with the chapter’s2007 Laureate Award, two of onlyseven physicians statewide toreceive the honor. Both doctorsare fellows of the American Collegeof Physicians.

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CyberKnife

Excellencewith a shared vision

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Renae Sarnoski, a physical thera-pist with Twin Tier Home Health,was caring for a homeboundpatient when she noticed that theoutdoor carpet on the person’sfront steps was tattered and poseda tripping hazard. The elderlyclient had not been able to findanyone to do the repair.

So Renae returned later, tools inhand, and replaced the carpet. Itseems she’s very handy like that.She also replaced a mailbox foranother client when she learnedthat the old one was falling apart.

Personal attentionQuality service is about advancedmedicine and leading-edge tech-nology, but it is about sharing avision for heartfelt, personal atten-tion as well. Outstanding work byhighly trained professionals whoalso care about what people arereally going through is not the exception at United Health Services,it’s the rule.

During 2007, our efforts to providepatients with the best in care andservice received wide recognition.For the second year in a row, wewere named one of the top 100cardiovascular hospitals in theUnited States –– one of only twofacilities in New York listed amongthe nation’s “Top 100” heart hospi-tals by Thomson Healthcare.

The annual Thomson award isbased on a hospital’s performancein treating congestive heart failureand heart attacks. The names ofthe 2007 winners appeared in theNov. 19 issue of ModernHealthcare, a leading nationalmagazine for the health care field.

During the year there was espe-cially good news for people whoarrived at our Wilson emergency

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A ‘Celebrity’ modelThe story of Ideal Senior LivingCenter’s development of its RedCarpet warm welcomes programfor residents and staff was featuredin a book by author and lecturerDonna Cutting. Ideal is one of the companies appearing in “TheCelebrity Experience: Insider Secretsto Delivering Red-Carpet Service,”a work designed to help companiesimprove customer service by fol-lowing the examples of Hollywoodservice businesses and “regularorganizations” like Ideal.

Praised by employeesOnce again our employees placedthe organization among the tophealth care systems in the country in employee satisfaction. In the2007 employee opinion survey, wescored in the 90th percentile amongcomparably sized hospital systemsnationwide. A majority of staffresponded that they “like it a lot” or “love it” at United Health Services.Matt Salanger, president and CEO,said, “The high score is a tribute to the devotion to teamwork andexcellence that is so evident by ourpeople across the system.” Eighty-five per cent of employees took thesurvey, a far better showing thanthe national average of 58 percent.

▲ ▲64-slice CT scanner3D prenatal ultrasound

The administration of medicine topatients made a major stride during2007, as the use of special wrist-bands with electronic checkers at the bedside and robotic drugdispensing in the pharmacy wasexpanded to all inpatient andambulatory units at United HealthServices Hospitals. Nurses todayalso use portable bedside computersto instantly record each patient’smedical history and vital signs.

A positive effectThese are just a few of the clinicaladvances that have over the pastyear brought United Health Servicesto the next level of leadership ininpatient, outpatient, long-term andhome care.

But, as is often the case, a simpleimprovement in a medical devicecan have the most positive effecton a person’s life.

During the space shuttle Discovery’svoyage in October, ProfessionalHome Care provided a newlyenhanced type of portable oxygenunit that allowed astronaut DouglasWheelock’s dad, Olin, to attendhis son’s liftoff from Florida.

Said a thrilled Olin Wheelock:“The Space Age technology ofyour new oxygen concentrator iswhat made it possible for me totravel to Cape Canaveral for thelaunch of a lifetime.”

Neurosurgeons performedthe region’s first artificialcervical disc replacement surgery, just the latest stepin a number of revolutionaryadvances in the treatmentof degenerative disc disease.

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Financialsummary

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2007 Highlights (all figures in thousands)

Inpatient Services

Outpatient Services

Long-term Care (ECF)

Home Health Care

Other Operating Revenue & Non-Operating Revenue

TOTAL

Salaries

Supplies & Services

Employee Benefits

Provision for Bad Debts

Interest

Depreciation & Amortization

TOTAL

Net Surplus

Net Uncompensated & Charity Care

$ 198,900

270,200

17,100

14,500

20,800

$ 521,500

$ 222,200

179,600

62,700

26,100

5,400

20,500

$ 516,500

$ 5,000

$ 29,100

Operating Revenues

Operating Expenses

* The information here is based on preliminary financial drafts for United Health Services, Inc.and Affiliates for the year 2007. Final numbers are not expected to change materially.

As a not-for-profit health care organiza-tion, United Health Services seeks tomanage all of its resources wisely andeffectively, maintaining fiscal strength to prepare for the challenges andopportunities of the years ahead.

The organization finished 2007 with afinancial surplus, increased the dollaramount of its community benefit andrenewed its commitment to sound fiscalplanning for 2008 and beyond.

The system posted a net surplus of $5 million on revenues of $522 million, a positive performance given an increas-ingly difficult economic and regulatoryenvironment.

Inpatient services generated $199 million,while outpatient care furnished $270million and other services brought in$52 million. Total expenses were held to $517 million.

At the same time, the hospital, skillednursing, home, long-term and medicalservice organizations that make up thesystem provided the Southern Tier ofNew York with a record contribution in uncompensated care, standing at a total of $29.1 million.

This figure includes charity care, volun-teerism and subsidization of servicesthat save lives but are nonethelessoperated at a loss.

Every year since 1992, United HealthServices has submitted a communitybenefit report to the New York StateDepartment of Health. It reveals that the system’s commitment to the peopleof its region has grown by 14 percentper year over a 15-year period.

As we move forward toward our goalsof clinical excellence, market growth and financial strength, the principles offinancial stewardship that have guidedus since our incorporation in 1981 willremain the reality that fulfills the promiseand potential of our vision.

Working with Wellspring financial advisors, in 2007 our cost savings teams identifiedmore than $5.5 million in potential expensereductions. By year end, they had imple-mented many of these measures to cutexpenses without reducing quality of care.

bination of resources, skills and equipment, and a willingness towork together.

Throughout 2007, United HealthServices added many other high-tech advances designed to improvesafety, comfort and medical out-comes.

Neurosurgeons performed theregion’s first artificial cervical discreplacement surgery, just the lateststep in a number of revolutionaryadvances in the treatment ofdegenerative disc disease.

And vascular surgery at UnitedHealth Services has advancedwith the addition of a procedurethat treats a thoracic aneurysm, a potentially fatal bulge in a majorartery near the heart. Surgeonsand interventional radiologists use computer-guided technologyto insert a woven graft into thebulge, preventing rupture.

Not all developments occurred in the surgical realm, however.Advances that often mean the mostto patients are the ones improvingthe quality of the nursing, medica-tion, imaging and recordkeepingservices they receive.

The organization continued a moveto maintain all patient recordselectronically so that they can beprotected from damage andaccessed more quickly. The goal isto provide seamless recordkeep-ing in all settings, from a doctor’soffice to the operating room.

The Picture Archiving and Com-munication System is revolutioniz-ing diagnostic imaging, taking adigital approach to the storageand retrieval of patient X-rays and speeding diagnosis of seriousillnesses and injuries.

When CyberKnife cancer-fightingtechnology was first introducedthree years ago, it was used to treatonly tumors of the brain and spinalcord. But by 2007, teams on ourWilson Medical Center campusbegan using this most advancedform of stereotactic radiosurgeryto zero in on prostate cancer as well.

The new prostate option is virtuallynon-invasive and no hospitaliza-tion is necessary. There is little orno recovery time, and a patient canresume normal activities right away.Most importantly, there is lesschance of life-altering side effects.

New technologiesThe cutting-edge CyberKnife Centerof New York at Wilson MedicalCenter is just one example of theexciting new technologies availablein our region today, thanks to theforesight and commitment of UnitedHealth Services and its physicianpartners. It shows what can be donein health care with the right com-

Advancesfor a new era

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Servingour community

Community Service

Service Overview

United Health Services employees, familyand friends turned out in record strengthin 2007 to spread the word and walkthe tracks in the battle against deadlydiseases in the community and acrossthe nation. Enthusiastic walkers, such asthe United Health Services “seUHSville”team, top photo, raised over $15,750 lastyear for the American Cancer Society’sRelay for Life. As the Signature Sponsorof the 2007 Southern Tier Heart Walk,United Health Services employees, likethose shown in the bottom photo, raisedover $27,000. Other charity eventsemployees participated in and raisedfunds for included: United Way’s Day ofCaring, March of Dimes’ WalkAmerica,MS Walk, Diabetes Walk, AIDS Walk,Making Strides Against Breast Cancer,Livestrong Challenge and the LeukemiaSociety’s Light the Night Walk. Employeesalso staffed community health screeningsduring the year.

United Health Services is a comprehensive health care systemfounded in 1981. In addition to its regional medical center, the system also includes three community hospitals, a physiciannetwork, family health centers, specialty care programs andservices, home health and long-term care services and otherhealth-related agencies. The entire United Health Servicessystem exists to improve our community’s health status andmeet its residents’ health care needs.

UnitedHealthServicesHospitals

UnitedMedicalAssociates

UnitedHealthServicesFoundation

ChenangoMemorialHospital

DelawareValleyHospital

IdealSeniorLivingCenter

ProfessionalHome CareandTwin TierHome Health

Embracinga shared vision

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Within the past few months, we at United Health Services haveembarked on one of the mostambitious endeavors in our history– a transformation of our organi-zation from a collection of memberand affiliate institutions into a closely knit system of health care services, sharing one vision,one purpose and one culture.

Our board members and manage-ment team have embraced a new,three-year strategic plan that seeksto break down barriers betweensystem members, so that all com-ponents of our system can workmore smoothly toward commongoals. This will transition us frompast approaches of coordinatinga wide variety of member strategies,to United Health Services now de-ploying all of our resources with asingle-minded passion to be the best.

Today, hospitals, nursing homes,clinics and physician practices areunder closer observation than everbefore. Consumers have access to

more information than ever, and areusing it to make the key medicaldecisions of their lives. That’s whyit is so important for us to neverlose sight of our commitment toquality. All of us in the health carefield will provide our patients withthe best in care when we stay trueto our original reasons for choos-ing health care as our life’s work.

As we move forward as a system,it is clear that our focus must beon three main goals:

• Clinical Excellence• Market Growth • Financial Strength

They are the backbone of the futureof health care, not just for us, butfor hospitals and other health net-works and organizations acrossthe country. By focusing on ourclinical, market and financial priori-ties, we will ensure our success today and our viability tomorrow.

Our vision is a bold one. By 2011,we seek to be a tightly integrated

system, recognized by our patients,physicians and community as a lead-ing provider of health services in ourregion, widely known and distinguishedfor the superior quality of our clinicalcapabilities.

Throughout 2007, our organization’sleaders worked hard to help us getstarted in that direction. We sought to improve patient access to services,expand computer technology to bettermanage each patient’s visit with us,and become proficient in the use ofthe latest clinical advances and mostcompassionate methods of care toenhance the total patient experience.

We are moving away from simplemethodical growth toward a teamapproach that features a sharp focus,high expectations and results that aremeasurable. We believe that every-one on our team has the power tomake a difference, and that everyonein our region will ultimately benefitfrom the renewed passion we willbring to the art of healing.

MATTHEW J. SALANGERPresident and Chief Executive OfficerUnited Health Services

MICHAEL SCULLARDChairman, Board of DirectorsUnited Health Services

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CHENANGO MEMORIALHOSPITALThomas Emerson, Esq, ChairRobert Nassar,

1st Vice ChairMatthew Salanger, FACHE,

2nd Vice ChairEric Larsen, SecretaryKurt Edwards, TreasurerChristopher CalhounJoanne CevascoAnthony Cicoria, MDRajesh Davé, MDMartin DietrichRobert Gomulka, CPAYusuf Harper, MD, (by office)Peter Kwasnik Marilyn Quinney,

Auxiliary RepresentativeAaron Valentine

Drake Lamen, MD, President/CEO

DELAWARE VALLEYHOSPITALEdward Schott, ChairHelen Johnston, RN

1st Vice ChairRajesh Dave, MD,

2nd Vice ChairEdward Snow, SecretaryGeorge Mack, PhD,

TreasurerPaul CarlstromMichael Freeman, DO

(Medical Staff President)Rev. Larry Light

David Polge,President/CEO

UNITED HEALTH SERVICESHOSPITALSDiana Bendz, ChairMichael Scullard,

Immediate Past ChairBruce Bowling, MD,

1st Vice ChairMatthew Salanger, FACHE,

2nd Vice ChairSusan Mistretta, Esq,

SecretaryJerome CannyBarbara Chaffee, MDHoratio DensonAlex DePersisGarabed Fattal, MDSarah Gueldner, DSNCarol Miller, MDJudith PeckhamJames VanVoorst

Matthew Salanger, FACHE,President/CEO

UNITED MEDMANAGEMENT, INC.Sean Brady, ChairMatthew Salanger, FACHE,

Vice ChairJames Jewell, MD, SecretaryDavid Kwiatkowski, MD, TreasurerHarold BeamFrank Eder, MDBrenda MorriseyGregory Scagnelli, MD

Alan Miller, MDAngela IacovelliExecutive Co-Directors

UNITED MEDICAL ASSOCIATESJames Jewell, MD, ChairDavid Kwiatkowski, MD, Vice ChairFrank Eder, MD, SecretaryGregory Scagnelli, MD, TreasurerLeonard Anderson, MDPeter LoFaso, MDSriram Nirgudkar, MDDennis Perenyi, MDMark Shumeyko, MDLawrence Wiesner, MD

Alan Miller, MDAngela IacovelliExecutive Co-Directors

IDEAL SENIOR LIVING CENTER/IDEAL SENIOR LIVING CENTERHOUSING CORP.Daniel Seiden, Esq, ChairPeter Newman,

Immediate Past ChairAnn McNichols, 1st Vice ChairJoseph Cerra, 2nd Vice ChairSam Lupo, SecretaryAlbert Kukol, Esq, TreasurerDonald Carlin, EsqJames Leonard, CPAMichael McGoff, PhDRobin MeadNatalie ThompsonJudith Whiteman

Maria Motsavage,President/CEO

PROFESSIONAL HOMECARE, INC./TWIN TIERHOME HEALTH, INC.Linda Best, ChairDiane Brown, 1st Vice ChairMatthew Salanger, FACHE,

2nd Vice ChairFerris Akel, SecretaryLeslie Distin, TreasurerDouglas Kerr, MDRonald LeschKenneth Miller

Joseph Cerra,President/CEO

UNITED HEALTH SERVICESFOUNDATIONRobin Mead, ChairStephen Feehan,

Immediate Past ChairRobert Grace, Vice ChairEric Niermeyer, TreasurerCynthia Elinoff,

Asst. TreasurerJennifer Schorr, SecretaryRonald Sall, Asst. SecretaryBetsy Carlin,

Member-at-LargeLawrence Anderson, EsqArthur ChristensenJoseph CookJames DanielsBette Anne GaubePhyllis GilroyRonald GoodwinPeter GriffithsNaima KradjianRonald LeschKathryn Grant Madigan, EsqCarolyn ManciniJoseph Meagher, EsqJohn RenzFrederick Russell

Ex-Officio:Matthew Salanger, FACHEMichael Wolff, MDSandra Shaw, BGH Auxiliary President

Joan Storer, Wilson Auxiliary President

Betsy Pietriyk, Executive Director

UNITED HEALTH SERVICES,INC.Michael Scullard, ChairJudith Peckham,

Immediate Past ChairMartin Dietrich,

Vice ChairRonald Lesch, SecretaryDiana Bendz, TreasurerFerris AkelBruce Bowling, MDHelen Johnston, RNJames Leonard, CPASusan Mistretta, EsqRobert NassarGregory Scagnelli, MDEdward SchottMark Shumeyko, MDNatalie ThompsonShawn Yetter

Matthew Salanger, FACHE,President/CEO

Governance

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“As we move forward as a system, it is clear that our focus must be on three main goals: clinical excellence,market growth and financial strength.”– Matthew J. Salanger, FACHE

President and Chief Executive OfficerUnited Health Services

Our MissionUnited Health Services is a comprehensive regional health care system whose mission is to improve the health of those we serve through our commitment to excellence in all that we do.

Our VisionBy 2011, United Health Services will be a tightly integratedhealth care system recognized as a leading provider ofhealth care services in our region, distinguished for superior quality in clinical care and service.

Our ValuesCaringServicePartnershipLearningIntegrityRespectStewardship

Table of ContentsEmbracing a Shared Vision:Letter from President and Chair 1

Advances for a New Era 2

Excellence with a Shared Vision 4

Preparing Today for a New Era 6

Accomplishments 8

Financial Summary 10

Serving our Community 11

Governance 12

“Embracing a New Era,” United Health Services’ 2007 Annual Report, is a publication of the Marketing and Community Relations Department of United Health Services, 10-42 Mitchell Ave., Binghamton, NY, 13903.

Christina Boyd, Vice President; William Michael, Communications Coordinator; Sandra Walker, Graphic Designer. For information, call 607.762.2336 or visit www.uhs.net 2 0 0 7 A N N U A L R E P O R T

Embracinga new era

Clinical Excellence

Market Growth

Financial Strength

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