2013 ANNUAL REPORT TO

OUR COMMUNITIES

Healthcare has experienced great

change over the past couple of years.

Some change caught healthcare

providers by surprise while other change

was anticipated. All of these changes

are forcing healthcare providers to

rethink the fundamentals of providing

high-quality care. As you’ll see in the

following pages, several years of planning

have paved the way for Cone Health

to make progress in adapting to change

in 2012 and innovating for the future.

Letter to Our Stakeholders

Notable AchievementsIn 2012, we began the process to have

Alamance Regional Medical Center join

the Cone Health network. We believe

that healthcare in Alamance County will

get even stronger once Cone Health and

Alamance Regional merge and we expand

our combined network of care. Residents

of Alamance County will benefit from the

creation of a new charitable foundation that

will provide enhanced philanthropic and non-

profit support to the community. We expect

this partnership to be completed in 2013.

Cone Health entered into a management

services agreement with Carolinas

HealthCare System that will help position

Cone Health for the future. Anticipated benefits include

the sharing of best practices and access to healthcare

management experts and clinical quality teams.

We transitioned to a best-in-class electronic medical

record system to provide the most exceptional care for

patients and families. Cone HealthLink has created a

single electronic medical record for each patient, which

ensures that physicians can easily access a patient’s

medical history, medications and treatment records

all in one secure location.

We formed a partnership with area physicians —

Triad HealthCare Network — that was designated an

Accountable Care Organization by the new Medicare

Shared Savings Program. The program rewards ACOs

that improve quality while lowering healthcare costs so

that patients receive the best possible value for their

healthcare dollars.

Recognized ExcellenceWe measured up to the high standards set

by The Joint Commission after a rigorous,

weeklong triennial reaccreditation survey.

For the ninth consecutive year, Cone Health

won the Consumer Choice award from the National

Research Corporation. The 2012-2013 awards go to

hospitals ranked highest by their consumers in four

areas: overall quality, best doctors, best nurses, and

overall image and reputation.

Cone Health

received a number

of accreditations and

reaccreditations that

recognize specific

programs and centers

for meeting the

requirements of the

accrediting body and

provide the highest

quality of care:

• Our bariatric surgery program received Level

One reaccreditation by the Bariatric Surgery Center

Network Accreditation Program of the American

College of Surgeons.

• The Heart and Vascular Center achieved a three-

year accreditation in the area of adult transthoracic

echocardiography by the Intersocietal Accreditation

Commission, as well as full reaccreditation from the

Society of Chest Pain Centers as an Accredited

Chest Pain Center.

Tim RiceChief Executive Officer

Henry W.B. “Hank” Smith III, MDChairman, Board of Trustees

Bariatric surgery

A record 23 Cone Health nurses were

selected for inclusion in North Carolina’s

Great 100 Nurses, the most from any one

organization in the Great 100’s 24-year

history. This high honor is testament to the

excellence of our nursing staff and leaders.

We appointed four physicians to serve as

Medical Directors of Quality to lead medical

staff efforts to improve quality of care at

each of our main hospital campuses. They

will work with the nursing and quality staff to

manage and promote quality improvement,

infection control and patient safety. These

Medical Directors of Quality embody Cone

Health’s commitment to providing our

patients with the highest standards of

quality and safety.

Our Achievements Make Us ProudWe are proud of what this organization

has achieved by Caring for Our Patients,

Caring for Each Other and Caring for Our

Communities. Cone Health is made great

by the dedicated and committed group of

people who give their all in service to others.

As you read about our accomplishments and

contributions within these pages, we hope

that you too will be proud.

Sincerely,

Tim RiceChief Executive Officer

Henry W.B. “Hank” Smith, MDChairman, Board of Trustees

2

Mickey Foster

Debbie Green

Annie Penn Hospital

• The Sleep Disorders Center was newly accredited

by the American Academy of Sleep Medicine for Out

of Center Sleep Testing and received its five-year

overall reaccreditation.

For the second consecutive year, our hospital-based

rehabilitation services were in the top 10 percent of

hospital rehab centers in the United States as scored by

Uniform Data System for Medical Rehabilitation, a not-

for-profit organization affiliated with the University of

Buffalo that maintains the world’s largest database

of medical rehabilitation outcomes.

Cone Health became one of only 237 healthcare

providers to receive the silver medal from the U.S.

Department of Health and Human Services for ensuring

that at least 75 percent of those who wanted to donate

organs could do so at the end of life.

Our People Make the DifferenceCone Health believes that engaged employees and

physicians mean better care for patients. Living up

to this philosophy landed two senior executives of

Annie Penn Hospital a spot

on the agenda at a national

conference on patient,

employee and physician

satisfaction. Mickey Foster,

President, and Debbie Green,

Vice President of Nursing

and Patient Services, told

the gathering of healthcare

executives how Annie Penn Hospital reached the 95th

percentile in employee engagement, the 96th percentile

in physician satisfaction and the 94th percentile in

patient satisfaction in the last quarter of 2011. Only

a small number of hospitals nationwide manage to

achieve top-decile performance in all three areas.

Cone Health Great 100 Nurses

Caring for Our Patients

We are providing exceptional quality, compassionate care and service in a safe, respectful environment.

Building for the FutureCone Health replaced a smaller emergency

department with a spacious and modern

emergency facility at Wesley Long Hospital

in 2012. The new emergency department

includes 25 private rooms, nine triage/minor

care rooms, eight transition rooms for those

awaiting hospital admission, and improved

technology with a new, dedicated CT scanner

and diagnostic X-ray facility.

A topping out ceremony for the North Tower

at The Moses H. Cone Memorial Hospital held

in May 2012 marked the halfway point of the

largest construction project in the history of

Cone Health. Slated to open in June 2013, the

$200 million, six-story North Tower will have

96 private patient rooms, 16 large, modern

operating rooms, an expanded emergency

department, and numerous design features

that will enhance the safety and care

of patients.

The expansion of the Cancer Center, which officially

opened January 2012, received the Silver LEED

certification by the United States Green Building

Council. The certification recognizes steps taken in the

construction, design and operation of the Cancer Center

to minimize its impact on the environment.

Harnessing TechnologyImagine an ambulance that protects patients from

crashes and germs, and helps technicians avoid back

injuries. Cone Health’s $400,000 rolling intensive care

unit is the first in North Carolina to have patient safety

airbags. The high-tech unit also has ultraviolet lights

in the heating and air system and silver-leaching ions

on interior surfaces to kill bacteria brought into the

ambulance. A power loading system automatically lifts

and pulls the stretcher into the ambulance to reduce

the physical demands on the crew. And, finally, the main

engine of the ambulance is “clean diesel,” which lowers

nitrous oxide emissions. The vehicle can be turned off

when parked, thanks to a generator that keeps the air

conditioning and electrical systems running.

In 2011, The Moses H. Cone Memorial Hospital became

the first hospital in North Carolina to implement the

Xenex room disinfection system, which uses pulsed

ultraviolet light to destroy viruses and bacteria without

contact or chemicals. In 2012, Cone Health was invited to

present its dramatic 56 percent reduction in MRSA rates

at a first-ever joint meeting of four leading infectious

disease organizations.

Over the past year, Cone Health has

invested $108 million in construction

and technology to improve patient

care. Here are just a few of the projects

and innovations we have invested in to

improve our delivery of healthcare.

Wesley Long Hospital ERWesley Long Hospital ER

Xenex

Cone Health conducted three clinical trials involving

the reduction of bed sores through the use of new,

technologically advanced bed linens. The results were so

compelling that in 2012 Cone Health put linens, gowns

and bed pads made from the patented antimicrobial

fabric into all of its hospitals. The largest clinical trial,

conducted at Wesley Long Hospital, showed that

patients using DermaTherapy® developed 81.5 percent

fewer bed sores while in the hospital. Patients who were

admitted with bedsores had a 21 percent reduction in

wounds when discharged from the hospital, indicating

that the bed linens, gowns and bed pads promoted

healing. Other study results found a 6.4 percent

reduction in the length of time spent in the hospital by

patients using DermaTherapy.

Connecting Good Science to Better CareAfter studying a new imaging agent in clinical trials,

physicians at Cone Health became the first in North

Carolina to use Florbetapir for early diagnosis of

Alzheimer’s disease. Florbetapir identifies brain

amyloid plaque, a hallmark of Alzheimer’s disease,

which previously could be confirmed only at autopsy.

Cone Health joined with researchers at the University

of North Carolina at Chapel Hill, The Partnership Project

Inc. and the University of Pittsburgh Medical Center to

evaluate if technology, system protocols and training

can reduce differences in cancer care between African-

American and white patients. Earlier research has shown

that while a higher percentage of white Americans

are diagnosed with breast and lung cancer, a higher

proportion of African-Americans actually die from

these diseases.

During a Cancer Symposium held in 2012,

physicians at our Cancer Center reported

that treating prostate cancer with radioactive

seed implants is superior and more cost

effective than other treatment options.

The Cancer Center has treated more than

2,000 patients with seed implants and is

the highest volume robotic prostate implant

center in the United States. This is just one of

the many ways in which our Cancer Center is

at the forefront of care.

Prompt, coordinated emergency care greatly

increases the survival rate of people having

heart attacks, and few places anywhere

provide faster care than the Cone Health

Heart and Vascular Center. A study in the

journal Circulation noted that the mortality

rate of people having heart attacks dropped

to 2.2 percent if they were treated within

90 minutes of the heart attack’s onset. The

death rate jumped to 5.7 percent if it took

more than 90 minutes for treatment to begin.

In April 2012, the average time from arrival to

treatment at Cone Health was 38 minutes—

the best response time in North Carolina.

Imagine an ambulance that protects patients from crashes and germs, and helps technicians avoid back injuries.

4

DermaTherapy linens

CareLink Critical Care Unit

North Tower at Moses Cone Hospital

Caring for Our Communities

year — in Kuwait. Female members of the 113th

Sustainment Brigade, ran a shadow 5K at their base

in Camp Arifjan, Kuwait.

Cone Health employees raised more than $48,000 for

the 2012 Greater Guilford Heart and Stroke Walk. The

money raised will support the research and educational

work of the American Heart Association. The Cone

Health Cancer Center team raised more than $18,000

during the American Cancer Society’s Relay for Life.

Annie Penn Hospital employee Cicely Alston chose the

Rolling Ridge Riding program in Rockingham County to

receive $1,000 as part of Cone Health’s Pay It Forward

project. Pay It Forward resulted from Cone Health’s

People Excellence Celebration in which the organization

celebrated its values, one of which is Caring for Our

Communities. Cicely was one of 12 employees who each

received $1,000 to use at their discretion to benefit local

communities and programs. The riding program provides

therapeutic horseback riding for children with physical,

mental and emotional challenges. Pictured above are

Alston’s nephew Kenan and Kathryn Davis, a physical

therapist and part owner of the facility. Kenan has

regular sessions at Rolling Ridge Riding.

Cone Health employees volunteered their time and

services to provide free dental care for those in need

in Greensboro and Reidsville.

2012 Greater Guilford Heart and Stroke WalkThroughout the year, Cone Health gives

back to its communities in so many ways

and through a diversity of causes. Our

support for our communities ranges from

sponsoring a performance of the Greensboro

Symphony Orchestra to the downtown

Winterfest ice rink, and from the American

Cancer Society to Habitat for Humanity. Our

support includes corporate sponsorships as

well as spontaneous acts of kindness that

start with one employee getting behind a

cause and then getting others involved. We

address the needs of our more immediate

communities while joining forces with

humane organizations across the nation and

around the globe. Here is a small sampling of

the many ways in which we serve the needs

of our communities.

Rolling Ridge Riding Program

Improving Health and Wellness A record field of 3,700 plus women took

part in the 20th Anniversary Women’s Only

5K Walk & Run. The 20th event raised nearly

$125,000 to support the Mammography

Scholarship Fund at

Women’s Hospital,

a new record

high. The fund

provides screening

mammograms to

women who might

not otherwise be able

to afford them. The

Women’s Only added

a new course this

Samaritan’s Purse team in Haiti

Cone Health employee Sheryl

Booth presents an Automated

External Defibrillator to Esau

Huang, owner of Flip Force

Gymnastics. This was one of

many AED donations made to

public facilities. Cone Health

has donated more than 50

of these life-saving devices

throughout the Piedmont Triad during the past two years.

Pediatric nurses volunteered at Community Helper

Day at McIver Education Center, an alternative school

for students with

exceptional educational

needs. The event

familiarized the

children with simple

health tests to remove

any fears. At left,

Melody Bullock, RN,

encourages a

student to listen

to his heartbeat.

Enhancing the Quality of LifeCone Health received the “Spirit of North Carolina Award”

for Campaign Excellence from the United Way of North

Carolina. The award provides statewide recognition of

outstanding commitment and support to communities

through involvement with local United Ways. Cone Health

employees raised about $571,000 during the Legendary

Giving, Legendary Care 2012

campaign. Pictured are legendary

KISS rock stars Bob Goldstein

(left), Executive Vice President,

Cone Health Medical Group and

LeBauer HealthCare, and Steve

Anderson, Vice President of Cone

Health Medical Group, performing

during the campaign’s wrap-up.

Annie Penn Hospital employees

and family members spent a

Saturday morning working on a Rockingham County

Habitat for Humanity house. In addition to priming and

painting the inside of the house, they built a bond with

the son of the future homeowner, which lead to the team

raising about $800 to buy new shoes, school supplies,

new furniture and bedding for the third grader.

Cone Health employees donated an

afternoon of food and fun during a block

party for Greensboro Urban Ministry’s

Partnership Village families. Partnership

Village is a transitional housing program

for families who were previously homeless.

At right, Cone Health

employee Nicole Cope

is shown painting the

faces of neighborhood

children.

Women’s Hospital

employees held a baby

shower that resulted in

hundreds of items being

donated to My Sister

Susan’s House, Mary’s

House and Room at the

Inn, organizations that

help women escape

domestic violence and

abuse, drug and alcohol

addiction, and homelessness.

Helping Without Geographical BoundsCone Health employees donated more than

600 hours of paid annual leave totaling

nearly $19,000 to support victims of

Hurricane Sandy, the massive storm system

that caused more than 100 deaths and $60

million in damages along the East Coast in

October 2012.

Cone Health medical professionals were

part of a Samaritan’s Purse team that

participated in a medical mission to Haiti.

6

Sheryl Booth with Esau Huang of Flip Force Gymnastics

KISS rock stars

Community Helper Day

Greensboro Urban Ministry

Uncompensated Patient Care (at cost) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $184,729,501

Donations to Community Organizations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $1,932,190

• Cone Health supported many health and community organizations through

corporate donations, contributions given by our employees and donated medical

equipment and supplies.

• Cone Health organized numerous community service activities that reached

30,175 people in our communities.

• Support for the Mammography Scholarship Fund helped 576 uninsured women

receive screening mammograms.

• Cone Health employees contributed 7,252 hours of their personal time serving

our communities as volunteers.

Training and Education for Healthcare Professionals . . . . . . . . . . . . . . . . . . . . . . . . $8,929,895

• Cone Health helped train 56 medical residents.

• Cone Health helped train 1,372 graduate students.

• Cone Health provided 1,607 continuing education hours.

• Cone Health provided clinical training to 1,494 students.

• Cone Health professionals gave presentations to 2,451 students and professionals.

• Cone Health professionals spent 10,701 hours mentoring 186 students.

Community Health Education and Outreach . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $3,195,339

• The medical libraries were used by 57,248 people.

• Cone Health provided 1,884 people with health screenings (including telephone

assessments through the Behavioral Health Hospital HelpLine and Assessment Service).

• Cone Health provided health education, support programs and health fairs to

26,833 individuals through 400 programs.

Caring for Our Communities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $106,125

• In addition to donating their time, more than 800 volunteers raised money to donate

equipment and supplies that benefited Cone Health’s patients.

TOTAL . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $198,893,050**This total does not include contributions, grants, scholarships and other support provided to the

community by Cone Health Foundation.

Touching Lives: Cone Health’s Investment

Cone Health Foundation distributed $4.2 million

in grants, contributions, and scholarships to 58

Greensboro-area nonprofit organizations in 2012.

The majority of these awards support agencies working

in the Foundation’s four focus areas of grantmaking:

• Access to Healthcare• Adolescent Pregnancy Prevention• HIV/AIDS• Substance Abuse and Mental Health

Some grants fell outside of these defined categories

and support community collaborations. Cone Health

Foundation’s single largest grant, $795,678, went to

HealthServe — a service of Triad Adult and Pediatric

Medicine — which is designed to strengthen the

healthcare safety net for the people of Guilford County

and provide medical services to low-income individuals.

Grants were made to the following organizations,

which are categorized based on the Foundation’s

areas of focus:

Access to Healthcare

• Cone Health Congregational Nurse Program.

• Cone Health Sickle Cell Center.

• Guilford Adult Health.

• Guilford Coalition on Infant Mortality.

• Guilford County Department of Public Health.

• Guilford County Department of Social Services.

• HealthServe.

• Partnership for Community Care.

• University of North Carolina at Greensboro

Center for New North Carolinians.

• University of North Carolina at Greensboro

Department of Social Work.

Touching Lives: Cone Health Foundation’s Investment in Health

8

Adolescent Pregnancy Prevention

• Children’s Home Society.

• Guilford Coalition on Adolescent Pregnancy

Prevention.

• Guilford County Department of Public Health.

• Outreach Development, Inc.

• Planned Parenthood Health Systems, Inc.

• Triad Adult and Pediatric Medicine, Inc.

• Young Women’s Christian Association, Inc.

HIV/AIDS

• Central Carolina Health Network.

• Cone Health — Regional Center for

Infectious Disease.

• Piedmont Health Services and Sickle Cell Agency.

• Triad Health Project.

Substance Abuse and Mental Health

• Alcohol and Drug Services of Guilford

• D.R.E.A.M.S. Treatment Services, Inc.

• Guilford CARES

• Guilford County Department of Social Services

• Guilford County Schools

• Malachi House II

• Mary’s House, Inc.

• Mental Health Association in Greensboro

• North Carolina A&T State University

• The Servant Center, Inc.

Board ofTrustees

Henry W.B. Smith III, MDChairman

James K. Weeks, PhDVice Chairman

Terrence B. Akin

Jacob B. Balsley III

Louise F. Brady

Janice G. Brewington, PhD

John F. Campbell, MD

Edward F. Cone

Dwight M. Davidson III

Henry E. Frye

Florence F. Gatten

Michelle Gethers-Clark

Deborah Hooper

J. Wayne Keeling, MD

J. Edward Kitchen

David F. Leeper

James H. Maxwell, MD

M. Lee McAllister

R. Timothy Rice

William R. Soles Jr.

Peter W. Whitfield, MD

Exceptional people delivering exceptional care

Relay For Life

Level II and Level III unit has been providing care to

critically ill newborns since 1990. The hospital also

houses the nationally accredited Breast and Ultrasound

Imaging Center. The hospital’s da Vinci robot provides

minimally invasive surgical care for gynecology patients.

Annie Penn Hospital has 110 acute care beds. This facility

includes inpatient and short stay surgery centers, the

Cone Health Cancer Center at Annie Penn, LeBauer

HeartCare at Annie Penn and specialty clinics such

as a Sleep Disorders Center and an Endoscopy Center

of Excellence.

The Behavioral Health Hospital offers pediatric

and adult inpatient crisis stabilization. The 80-bed

facility accommodates 50 adults and 30 adolescents.

Outpatient care includes numerous group therapy

programs as well as individual counseling and day

programs. The hospital also offers the community

a 24-hour Helpline that provides access to a trained

professional. Three additional outpatient Behavioral

Health Centers also are located in Greensboro,

Kernersville and Reidsville.

About Us

Cone Health is a not-for-profit network

of healthcare providers serving people in

Guilford, Forsyth, Rockingham, Alamance

and Randolph counties. Our tagline — “The

Network for Exceptional Care” — highlights

our commitment to excellence, which is

shared by our more than 8,600 professionals,

1,000 physicians and 700 volunteers.

As one of the region’s largest and most

comprehensive health networks, Cone Health

has more than 100 locations, including five

hospitals, two medical centers, three urgent

care centers, 71 physician practice sites and

multiple centers of excellence.

The Moses H. Cone Memorial Hospital is

our flagship. Moses Cone Hospital is a 536-

bed teaching hospital and referral center. It

includes a Pediatric Emergency Department,

Level II Trauma Center and centers of

excellence such as the Orthopedics Center,

Neurosciences Center, Stroke Center and

Heart and Vascular Center.

Wesley Long Hospital offers 175 private beds

for medical and surgical patients with service

areas focused on oncology, bariatric surgery,

urology and orthopedics. Our modern

facility utilizes state-of-the-art equipment

such as the da Vinci® surgical robot system

and the SpyGlass® visualization system in

the Endoscopy Center. The campus also

houses the Cancer Center, Sleep Disorders

Center, Wound Care and Hyperbaric Center

and Surgery Center. In the fall of 2012, a

28,000-square-foot Emergency Department

opened providing increased capacity for

the community.

Women’s Hospital, a 134-bed facility, is

home to one of the area’s most experienced

neonatal intensive care teams. The hospital’s

Wesley Long Hospital

The Moses H. Cone Memorial Hospital

Annie Penn Hospital

Women’s Hospital

Behavioral Health Hospital

1200 N. Elm Street

Greensboro, NC 27401

336.832.7000

conehealth.com