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Respect

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Prayer

CEO, Board Chair and Prioress Message

Board of Directors

Respect Message

2018 Highlights

Operations and Statistics

Balance Sheet

Collaboration

Community Benefit

BHS Foundation

Associated Foundations

2018 Listing

2018 Map

Contact

Census Days and Service Revenue

Serving others in the spirit of

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Prayer

God of Wisdom,

Your Golden Rule calls us to do unto others as we wish them to do to us.

Why do we so easily forget to put ourselves in the shoes of another person?

Help us to be sensitive to others, respecting who they are, and listening to another point of view.

In the spirit of Saint Benedict may we work to build positive relationships and form life-giving communities.

This we ask in Your holy name.

AMEN

Respect

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Dear Friends,

It is our pleasure to share the Benedictine Health System 2018 Annual Report with you.

Environmental and cultural changes in the world shaped how we celebrated and explored our Core

Value of Respect this year. The theme of this annual report highlights the positive power of Respect

through our experiences with each other. Being respectful in all situations — even those most

difficult and challenging — can enhance our environment for all of us. We strive to model Respect as

the foundation of community. Respect can only make where we live and work a better place for all.

Throughout the year, we at BHS worked to improve care systems as we serve aging seniors and

make their lives meaningful each and every day. Because organizational stability is critical, we

implemented changes to achieve stability and to meet market needs. We also focused on systems

and processes to attract and retain the best workforce who will make a difference to our residents

and families. And with everything we do, we remember that we are uniquely called to carry forward

this special Ministry of our Sponsor, the Benedictine Sisters of St. Scholastica Monastery.

During the past year, the BHS Board of Directors, committee members and the executive team

have dedicated significant time and thought to the development of our new strategic vision for

2019-2024. We’ve organized our main initiatives into the categories of perform and transform.

Everything we do in the next few years will align to these elements of the strategic plan. It is

exciting to anticipate how our talented and creative associates will implement this plan to advance

and position our Ministry for the future.

A Message

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Dean Fox, M.D., Sister Beverly Raway, Jerry Carley, Board Chair OSB, Prioress President/CEO Benedictine Health System St. Scholastica Monastery Benedictine Health System

We close this message by saying thank you to our associates, governance members, volunteers and

partners whose dedication to our Mission is an inspiration as we strive to serve others as Christ.

With Peace,

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Dean Fox, MD, FACP, chair

Roxann Daggett, vice-chair

Sister Danile Lynch, OSB, secretary

Michael Beard

Jeffrey Garland, MD, FHM

Paul Grizzell

David Hoel

Sister Beverly Horn, PhD, OSB

Sister Beverly Raway, OSB, prioress

Tim Scanlon, CPA

Carrie Shaw

Sister Joan Marie Stelman, OSB

Jay Sterns

Sister Clare Marie Trettel, OSB

Daniel Zismer, PhD

Jerry Carley, president/CEO

Kevin Rymanowski, CPA, treasurer

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Respect

Small acts of deep respect and kindness make

for an extraordinary life.

Woven throughout the Rule of St. Benedict are

references to Respect — Respect for one an-

other, Respect for the poor, Respect for com-

munity, Respect for the environment, Respect

for persons of all ages and more. Saint Bene-

dict’s attention to Respect tells us how import-

ant this value is to the human experience.

At BHS, we recognize how Respect can shape

our work and the lives of others. We strive to

treat each person with dignity and reverence

through respectful words and actions. We

treat our residents, family members, associates

and partners with thoughtfulness and compas-

sion. We Respect privacy and give assistance

when needed. Each one of us is dedicated

to honoring and supporting the spirituality

of each person. Being positive in our actions

and thoughts toward one another is how we

demonstrate Respect.

Respect is deliberate. Respect is always di-

rected toward or shown for a person, place or

thing. We strive for the ability to see people

for who they are and acknowledge and cele-

brate each person’s unique individuality.

Most people care deeply for the community

where they live, and creating strong communi-

ties is built on Respect. Our world would be a

better, more peaceful place if we treated each

other, our resources and our environment with

Respect. While that may seem like an insur-

mountable challenge, the Benedictine tradition

passes on a spirituality of universal Respect

that informs and inspires us each day.

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Respect

Mission is everything and everything is Mission.

We work together to make the lives of our aging seniors meaningful each day. Below are selected highlights of our fiscal year 2018.

BHS began a year-long celebration of our Sponsor — the Benedictine Sisters of St. Scho-lastica Monastery — and their 125th anniversary. One of the highlights was the tour of the Saint John’s Bible Heritage Edition to all of our com-munities across the System, giving thousands of individuals the opportunity to experience this important work of scripture and art.

“Creating, Sustaining and Celebrating Commu-nity” was the theme of our BHS Annual Lead-ership Conference in September. Mary Frances Skala, J.D., was honored with the Distinguished Leadership Award recognizing her years of contributions to BHS.

In December, we said farewell to our President/CEO Rocky Chapin, who retired Jan. 2, 2018, and welcomed our new CEO, Jerry Carley, as he assumed leadership of BHS.

Benedictine Living Community of St. Peter, Minn., was awarded the 2018 Bronze — Com-mitment to Quality Award by the American Health Care Association and National Center for Assisted Living. The award is the first of three distinctions possible through the AHCA/NCAL National Quality Award Program, which honors long-term and post-acute care providers that have demonstrated their com-mitment to improving the quality of care for seniors and persons with disabilities.

Madonna Living Community of Rochester, Minn., received the 2017 Non-Profit Business of the Year Award from the Rochester Area Chamber of Commerce.

Benedictine Living Community of Duluth, Minn., was featured in the opening video presentation at the national assembly for the Catholic Health Association, San Diego, Calif.

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Bringing our gifts and talents to life, and serving others in the spirit of respect, is what mission integration is all about at Benedictine Health System.

Twelve BHS communities were

recognized by the American Healthcare

Association and National Center for

Assisted Living for their achievements

through the Quality Initiative Recognition

Program, which honors member

communities for their individual work

in achieving AHCA/NCAL Quality

Initiative goals.

2018 Highlights

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Financials

BED COMPLEMENT

Nursing beds 2,745 2,582 2,542

Assisted/independent units 2,244 2,261 2,114

TOTAL BEDS/UNITS 4,989 4,843 4,656

UTILIZATION

Nursing facility resident days 837,936 845,460 804,977

Assisted/independent days 666,350 675,720 648,089

Total employee full-time equivalents 4,089 3,985 3,734

2016 2017 2018

Total operating revenue $ 249,533 $ 266,312 $ 272,239

Total operating expense 248,702 262,677 266,641

Operating income 831 3,635 5,598

Non-operating income (6,844) (5,063) 522

EXCESS OF REVENUE OVER EXPENSE $ (6,013) $ (1,428) $ 6,120

Consolidated Statement of Operations

Selected Statistics

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Financials

2016 2017 2018ASSETS

CURRENT ASSETS

Cash and investments $ 42,568 $ 42,033 $ 41,610

Accounts receivable 29,420 35,174 28,322

Inventories and prepaid expenses 11,156 13,483 11,859

TOTAL CURRENT ASSETS 83,144 90,690 81,791

Assets limited to use 81,081 70,166 71,037

Property and equipment 236,747 249,650 257,902

Other assets 13,191 6,280 3,833

TOTAL ASSETS 414,163 416,786 414,563

LIABILITIES AND NET ASSETS

CURRENT LIABILITIES

Accounts payable and accruals $ 34,459 $ 33,405 $ 30,324

Current portion long-term debt 29,552 15,735 22,073

TOTAL CURRENT LIABILITIES 64,011 49,140 52,397

Other liabilities 25,907 32,812 32,690

Long-term debt 223,186 218,965 209,930

Net assets 101,059 115,869 119,546

TOTAL LIABILITIES AND NET ASSETS $ 414,163 $ 416,786 $ 414,563

Consolidated Balance Sheet

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Financials

Revenue and Expenses

15%

33%

Revenue BY PAYOR

38%14%

4%

55%

22%

19%

Revenue BY SERVICE TYPE

Expense BY TYPE

3%4%5%

8%

8%

7%65%

•LONG-TERM CARE•TRANSITIONAL CARE•HOUSING WITH SERVICES•OTHER

•PRIVATE•MEDICAID•INSURANCE AND OTHER•MEDICARE

•PAYROLL/BENEFITS•SUPPLIES• PURCHASED SERVICES/

PROFESSIONAL FEES

•OTHER•DEPRECIATION/AMORTIZATION•INTEREST•UTILITIES

Nursing Facility Census Days

PRIVATE MEDICAREMEDICAIDINS./

OTHER

28.1% 47.9% 13.7% 10.2%

26.9% 48.0% 11.7%13.4%

27.0% 49.1% 13.2%

0% 20% 40% 60% 80% 100%

2016

2017

2018 10.6%

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Collaboration

The Benedictine Health System is primarily comprised of communities that are owned

by BHS; however, there are also Ministry Partners —in which BHS serves as co-owner or

co-sponsor — and Associate Organizations, where we undertake management obligations.

operating revenue 2018 $1,305 2017 $1,588 2016 $1,595

total assets 2018 $3,661 2017 $3,685 2016 $3,782

Associate Organizations

operating revenue 2018 $71,706 2017 $76,249 2016 $72,083

total assets 2018 $121,172 2017 $141,023 2016 $140,570

Ministry Partners

Dollar amounts in thousands Dollar amounts in thousands

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Giving

When we reflect on our Vision, it is our hope to extend beyond the walls of our organizations to assist with the health and well-being of the com-munities we serve. In doing so, we are caring for others as Christ and bringing special attention to aging seniors and other individuals who are un-derserved or who are in need.

Each year, our organizations research, plan and implement activities to meet specific communi-ty needs. When we report Community Benefit at BHS, we organize initiatives into two categories: benefits for persons living in poverty, including charity care, unpaid costs of public programs, community health improvement services, cash and in-kind contributions; and benefits for the broader community, including programs that im-prove community health, subsidized health ser-vices, educational programs and other activities.

The following examples illustrate three specific community benefit programs in 2018:

• Benedictine Living Community of Duluth, Minn., collaborated with exercise physiology students

at the College of St. Scholastica to host a free public senior health fair. It consisted of more than 24 exhibits and interactive stations provid-ing blood pressure and hearing aid checks, mas-sages, strength testing and more.

• Cerenity Senior Care – Marian of Saint Paul, Minn., partnered with St. Paul College to pro-vide hands-on learning opportunities through “Scrubs Camp” for students considering a career in senior care. More than 70 students participat-ed in this realistic, interactive experience.

• For the last 18 years, staff, guests, residents and families at Villa St. Vincent, Crookston, Minn., have contributed to meet the nutritional needs of the less fortunate in the community. During this time, over 4,000 pounds of food and more than $20,000 has been donated to serve those with this basic need.

During fiscal year 2018, BHS provided $13,649,164 in quantifiable Community Benefit programs and activities serving 158,675 individuals in our com-munities.

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We witness to God’s love by creating compassionate communities providing support to those we serve to live fully and live well.

Community Benefit

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Giving

To live fully and well, each of us needs hope and a purpose. Opportunities to participate in community events adds purpose to the lives of residents, yet these opportunities may be limited if transportation is not readily available. This past year, Koda Living Community Foundation sought community support to purchase a handicapped-accessible bus to offer these outings on a regular basis. When asked, supporters in the community responded with gifts, large and small. The new Koda Living Com-munity bus is nearly in the driveway.

It is out of Respect for those we serve that the Benedictine Health System Foundation and its Associated Foundations reach out to offer op-portunities to others in our surrounding communities to further our Mission of care. We are thankful so many believe and are called to support our Mission. In 2018, more than $6.7 million in charitable gifts were used to fund resident and employee programs, facility improvements and equipment purchases.

In addition to gifts given to fund immediate needs, more than 40 dedicated BHS Mission sup-porters have chosen to create their own

legacy of care. Planned gifts such as will bequests, life insurance policy designations and charitable gift annuities are just a few of the ways they sought to make a difference in the lives of those we will serve now and in the future.

At the very root of our efforts are the growing numbers of Benedictine Health System associ-ates who not only provide quality care, but give their own resources. BHS Support Center associ-ates, who do not provide direct care, also choose to make a difference in the lives of residents and associates with gifts to the BHSF we believe! campaign. Since its inception, we believe! has raised more than $1.1 million. These dollars have funded 39 residents’ dreams; relieved the stress of 171 associates through the Employee Emer-gency Fund; honored 278 BHS associates who emulate Sr. Claudia Riehl’s life and work; and much more.

Thank you to all who support the Benedictine Health System Foundation and its Associated Foundations. Your generosity extends the Core Value of Respect to so many throughout the Benedictine Health System.

Foundation BENEDICTINE HEALTH SYSTEM

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Giving

TOTAL NET ASSETS

(�Dollar�amounts�in�thousands,��BHS�Foundation�only)

2018 $11,9762017 $16,235 2016 $17,021

TOTAL CONTRIBUTIONS

(�Dollar�amounts�in�thousands,��BHS�Foundation�only)

2018 $2,3542017 $2,662 2016 $3,063

TOTAL CONTRIBUTIONS/ GRANTS/PERFORMANCE AWARDS (Dollar�amounts�in�thousands,�BHS�Foundation�and�Participating�Organizations)

2018 $5,3342017 $4,146 2016 $3,511

Foundation BENEDICTINE HEALTH SYSTEM

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Giving

Associated Foundations

BENEDICTINE HEALTH SYSTEM FOUNDATION

Benedictine Health Center of Minneapolis

Foundation, Minneapolis, Minn.

Benedictine Living Center of Garrison

Foundation, Garrison, N.D.

Benedictine Living Community of Ada

Foundation, Ada, Minn.

Benedictine Living Community of Duluth

Foundation, Duluth, Minn.

Benedictine Living Community of St. Peter

Foundation, St. Peter, Minn.

Benedictine Living Community of Wahpeton

Foundation, Wahpeton, N.D.

Cerenity Foundation, St. Paul, Minn.

Cerenity – Humboldt Foundation,

St. Paul, Minn.

Cerenity – Marian of St. Paul Foundation,

St. Paul, Minn.

Cerenity – White Bear Lake Foundation,

White Bear Lake, Minn.

Innsbruck Foundation, New Brighton, Minn.

(serving Benedictine Health Center at Innsbruck)

Koda Living Community Foundation,

Owatonna, Minn.

Living Community of St. Joseph Foundation,

St. Joseph, Mo.

Madonna Living Community Foundation

of Rochester, Rochester, Minn.

(serving Madonna Towers of Rochester,

Madonna Meadows of Rochester and

Madonna Summit of Byron)

Nazareth Living Center Foundation,

St. Louis, Mo.

Prince of Peace and Evergreen Foundation,

Ellendale, N.D.

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Saint Anne Foundation, Winona, Minn.

St. Benedict’s Health Center Foundation,

Dickinson, N.D.

St. Crispin Foundation, Red Wing, Minn.

St. Gabriel’s Community Foundation,

Bismarck, N.D.

St. Gertrude’s Foundation, Shakopee, Minn.

St. Mary’s of Winsted Foundation,

Winsted, Minn.

St. Michael’s Foundation, Virginia, Minn.

St. Raphael’s Foundation, Eveleth, Minn.

St. Rose Foundation, LaMoure, N.D.

Villa St. Benedict Foundation, Lisle, Ill.

Villa St. Vincent/The Summit Foundation,

Crookston, Minn.

Giving

Associated Foundations

BENEDICTINE HEALTH SYSTEM FOUNDATION

Finding meaning in our work and being mission-minded gives us purpose and keeps us grounded.

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BHS Communities

BHS Communities

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2018 Communities

New Brighton, Minn.

Minneapolis, Minn.

Cambridge, Minn.

Garrison, N.D. The Meadows

Ada, Minn. Benedictine Care Community Benedictine Supportive Services Mission Court

Duluth, Minn. Benedictine Adult Day Benedictine Developmental Preschool Benedictine Health Center Marywood Enhanced Assisted Living Westwood Senior Apartments Westwood Terrace

La Crosse, Wis. Benedictine Manor Benedictine Villa

Northfield, Minn. Opening late 2019

BHS Communities

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Shakopee, Minn. Opening summer 2020

St. Peter, Minn. Benedictine Court Benedictine Health Center Heritage Meadows

Wahpeton, N.D. Benedictine Home Health St. Catherine’s Living Center Siena Court

Wausau, Wis. Northland House Group Home

Osseo, Minn.

St. Paul, Minn. Cerenity Care Center Cerenity Residence and Transitional Care

St. Paul, Minn. Cerenity Care Center and Transitional Care Cerenity Residence

White Bear Lake, Minn. Cerenity Care Center and Transitional Care Cerenity Residence

New London, Minn.

Owatonna, Minn. Park Place Senior Living

BHS Communities

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St. Joseph, Mo.

Rochester, Minn. Madonna Meadows of Rochester Madonna Summit of Byron - Byron, Minn. Madonna Towers of Rochester

St. Louis, Mo. Gleason Hall McGovern Commons The Village at Nazareth

Ellendale, N.D. Evergreen Apartments Evergreen Place

Hastings, Minn. Regina Assisted Living Regina Care Center

Winona, Minn. Callista Court Saint Anne Extended Health Care

Dickinson, N.D. Benedict Court

Red Wing, Minn. Care Center Short-Term Rehab The Villa

Bismarck, N.D.

BHS Communities

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Shakopee, Minn. The Gardens at St. Gertrude’s

Winsted, Minn. Garden House at St. Mary’s Linden Wood Apartments

Virginia, Minn.

Eveleth, Minn.

LaMoure, N.D. Rosewood Court

Lisle, Ill. Bendale Center

Crookston, Minn. The Summit

https://www.villastben.org/http://

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NORTH DAKOTA

WISCONSIN

ILLINOIS

MISSOURI

MINNESOTA

BHS Communities

2018 Map

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27/27

Mission Vision

Core Values

The Benedictine Health System is a

Catholic, faith-based organization

entrusted with advancing the life-enhancing

senior care ministry of the Benedictine

Sisters of Duluth, Minnesota.

We witness to God’s love by creating

compassionate communities providing

support to those we serve to live fully

and live well with special concern for the

underserved and those in need.

We create Benedictine Living Communities

where health, wellness and choice come

to life.

Hospitality | Stewardship | Respect | Justice

Annual report photography taken at Benedictine Health System communities including: Cerenity Senior Care – White Bear Lake (cover, page 8), and Benedictine Living Community of Duluth (page 16).

Living Fully | Living Well4560 NORWAY PINES PL. | HERMANTOWN, MINN. 558111995 E. RUM RIVER DRIVE S. | CAMBRIDGE, MINN. 550084000 LEXINGTON AVE N. | SUITE 201 | SHOREVIEW, MINN. 55126

www.bhshealth.org©BENEDICTINE HEALTH SYSTEM 2019

RespectPrayermessageBODRespect messagehighlightsFinancialsOperations and StatisticsBalance sheetRevenueCollaborationGivingCommunity benefit BHS FoundationAssociated foundationsBHS communities2018 communities2018 mapContactHome

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