atholic Health Initiatives has launched CHI Connect, a standard,

system-wide approach to collecting, reporting and analyzing

key operational information in four business areas: finance,

human resources, payroll and supply chain.

INITIATIVES

This major initiative,introduced at MemorialHealth Care System inChattanooga, Tenn.,and Catholic HealthInitiatives’ nationaloffices in December2003, will be phasedinto all market-basedorganizations during the next five years.

By creating standardized systems, CatholicHealth Initiatives leverages the strength ofits size and buying power and streamlinesadministrative tasks. Market-based organi-zations will have more time to focus onpatient care and building healthier commu-nities, as well as planning for strategic issuesin local markets. The operational efficienciescreated by this standardized approach will result in cost savings that will remainwith the market-based organizations forreinvestment in facilities and communities.

By creating standardized systems,

Catholic Health Initiatives leverages

the strength of its size and buying power

and streamlines administrative tasks.

During the past year, Memorial, alongwith 12 other market-based organizations of various sizes, provided data and helped evaluate the business rationale for standard-izing finance, human resources, payroll and supply chain operations. This analysisrevealed that operational efficiencies gained through CHI Connect could saveapproximately $50 million throughout the system during the next five years.Specific timeframes for implementation of the program within individual market-based organizations are being developed.“CHI Connect is expected to bring many

Vol. 9, No. 1,

January 2004A monthly publication for the participating congregations,leadership, physicians and staff of Catholic Health Initiatives

4The Vision forCatholic HealthInitiatives by KevinLofton, CEO

10Market-based Organizations ShareLessons Learned on Lawson Software

12 Market-based Initiatives

continued on page 8

CHI Connect Supports Advantagesof Unified SystemStandardized Approach Tested at Memorial and National Offices

INSIDE

C3 New Clinical

Information SystemImplemented

2

Bond Rating FirmAffirms Catholic HealthInitiatives’ ‘AA’ Rating

Fitch Ratings, New York, N.Y.,recently affirmed its ‘AA’ rating on Catholic Health Initiatives’approximately $2.1 billion of outstanding revenue bonds. Fitchalso said that the rating outlook forCatholic Health Initiatives is stable.

“The affirmation is supported by Catholic Health Initiatives’ con-tinued improvement in profitabilityand liquidity relative to expenses,strong revenue and profit dispersionand good disclosure practices,” said a statement released by Fitch.The bond rating firm noted thatCatholic Health Initiatives’ operatingmargin increased for the thirdstraight year in fiscal year 2003.“Fitch attributes this continuedfinancial improvement to strongcorporate oversight and divestitureof non-core and non-strategicassets,” said the Fitch statement.

St. Joseph in Towson’sOutreach Coach Wins Spirit ofExcellence Award

St. Joseph Medical Center, Towson,Md., recently won the 2003 Spiritof Excellence Community SpiritAward from Modern Healthcaremagazine. St. Joseph won the awardfor its St. Clare Medical OutreachCoach, which provides direct primary care, education and healthscreenings to homeless, immigrantand other underserved populationsin Baltimore. As part of the award,St. Joseph received a cash prize of$5,000. The St. Clare MedicalOutreach Coach has received funding from the Catholic HealthInitiatives Mission and MinistryFund and has been recognized with several other communityawards. For more information, visit www.sjmcmd.org.

Dear Catholic Health Initiatives Family:

You’ve probably heard of the wise man who passed three bricklayers and asked each whathe was doing. “I’m laying bricks,” said the first. “I’m building a wall,” said the second.“I’m building a cathedral,” said the third.

This wonderful story tells us to keep our eyes on our goals and not get distracted by the tools we use. Our foundresses knew that to maintain a true and deep Catholichealth ministry, we needed to come together in strength. Catholic Health Initiatives’ size, scope and diversity allow us to build a health delivery system to serve our patients and communities with innovation and commitment long into the future.

We have new tools for market-based organizations to use to leverage our strength and focus our efforts more intensely on local needs and services. Five market-basedorganizations have initiated the Advanced Clinical Information System and are movingtoward a computerized medical record that supports electronic clinical tools for decision-making. We have also introduced CHI Connect and started the process of standardizing and centralizing some finance, human resources, payroll and supplychain functions. This effort will extend system-wide over a five-year period, resulting in cost savings and better information for local decision-making. You can read moreabout these tools in this issue of Initiatives.

Information technology provides the bricks we are using to lay this foundation. With the help of these tools and standardized processes, we can better direct ourresources — both people and money — to safe patient care, healthy communities and local market strategies.

Significant progress can be made only by taking some risk. The success of these programs is completely dependent on our commitment to the future. Vision, resolve,flexibility and patience are needed to build a cathedral, as they are to build a strong and lasting health delivery system. I appreciate your willingness to take the very large steps needed to move our mission forward.

Kevin E. Lofton, FACHEPresident and ChiefExecutive Officer

NEWSBRIEFS

3

Catholic Health Initiatives will open its National Information

Technology Center in Denver in February after consolidating

and relocating information technology (IT) services to realign its

business operations and improve efficiency in the organization.

Until now, Catholic Health Initiatives’ IT services have been

provided by service centers located in Tacoma, Wash., and

Exton, Pa. About 40 employees from these two service centers

have relocated to Denver to fill some of the 156 available jobs,

and approximately 50 more jobs will be created in the Denver

center during the next two years. Catholic Health Initiatives’

IT professionals will be responsible for providing services in

the areas of applications, network, operations and customer

support, as well as Web and data warehousing services.

“This new center creates the infrastructure that positions

us for growth,” said Chris Macmanus, senior vice president

and chief information officer for Catholic Health Initiatives.

“It will create operational efficiencies that will enable our

market-based organizations to spend more time focusing

on patient care, healthy communities and local strategies.”

National Information Technology

Center to Open in Denver

New Clinical Information System Implemented at Five Market-based Organizations

new clinical information system,launched at five Catholic HealthInitiatives market-based organi-

zations in October 2003, is revolution-izing how patient information is stored,used and accessed.

Advanced Clinical Information System(ACIS) enables these market-basedorganizations to move over time toward a computerized patient record that supports electronic medication adminis-tration, computer-based physician orderentry (CPOE), and clinical tools that aid in decision-making. Used in manyhospitals nationwide, ACIS is comprisedof hardware, software, applications andinfrastructure that provide a frameworkfor storing and networking advancedclinical and patient information.

Catholic Health Initiatives selectedCerner as its vendor for ACIS after a thorough proposal process.

Collectively, the five selected market-based organizations care for nearly 50percent of Catholic Health Initiatives’total patient population. They includeSt. Vincent Health System, Little Rock,Ark.; Mercy Medical Center, Des Moines,Iowa; Franciscan Health System, Tacoma, Wash.; Saint Joseph HealthCare,Lexington, Ky.; and St. John’s RegionalMedical Center, Joplin, Mo.

“The decision to implement ACIS was made after extensive analysis of thebenefits as well as the risks,” said HaroldE. Ray, MD, senior vice president and chief medical officer for CatholicHealth Initiatives. “ACIS will combineinformation from the bedside, laboratory,pharmacy, nurse’s station, emergencydepartment and scheduling to create a comprehensive and thorough clinicaltool that will enhance patient safety. It will ensure health care professionals —regardless of discipline, time of day orlocation — will have the ability to accessnecessary information to make goodclinical decisions.”

ACIS provides immediate data regardingpatient status and clinical test results,enabling quicker responses and more

The National Information Technology Center is located in the Lansing Point building, part of the Meridian BusinessPark in Englewood, Colo.

A

continued on page 9

I want to talk about what this opportunitymeans to me and my vision for CatholicHealth Initiatives. Being part of thisorganization for six years has given methe perspective that the vision is one thatyou designed — as a board, as membersand as congregations. I come to thisplace with a collection of experiencesand perceptions that allow me to take thevision forward — to renew and energizethe vision of Catholic Health Initiatives.To make the vision real. To hold theconviction to translate this vision intothe ministry that makes a groundbreakingand sustainable difference in health carein this country.

The vision must be an active engagement with you and leadersthroughout Catholic Health Initiatives.

A compelling and enduring vision will result from thoughtful engagementof collective input and creativity.However, I am here to answer the question, “What is my vision forCatholic Health Initiatives?”

Personal Background

It is difficult to put into words how I feel right now. I’ve worked hard myentire life, including 24 years as a healthcare executive. You have entrusted mewith the opportunity to lead not just apremier health care organization, but tolead one of the truly pioneering healthministries in this country to even greaterlevels of service to our communities andthe people who entrust us with their care.

In the Catholic Health Initiatives bookCharisms, the opening sentence of thechapter about the Sisters of St. Francisof Colorado Springs reads: “Always,behind the political and social move-ments of the world and the globalupheavals they generate, is DivineWisdom directing our destinies.”Standing in front of you and our God,that particular quote resonates deeply as I look at my life. I want to share mybackground because these facts haveformed the person and leader I am today.

I’ve been married to Maude BrownLofton for 22 years. Maude is a pedia-trician and child development specialist.We have two teenage children — one incollege and one in high school. I grewup in the middle of three boys, whose

4

evin Lofton made the following presentation to the Catholic

Health Initiatives Board of Stewardship Trustees and the

Members of the Civil Corporation in August 2003. In these

remarks, Kevin speaks about his vision for Catholic Health Initiatives

as the organization’s new president and chief executive officer.

K

I come before you with a humble spirit but a confident heart as the new

chief executive officer of Catholic Health Initiatives. This is a new beginning

for Catholic Health Initiatives. For only the second time in our short but

enormously rich history, the Board of Stewardship Trustees has selected

a chief executive officer. I am excited about the opportunity and prospects,

and at the same time, I am respectful of the daunting responsibility.

5

parents worked hard to send us to aparochial grade school and high school.I was raised in New York City and graduated from Cardinal Spellman High School in the Bronx. I have been a practicing Catholic my whole life.

My mother’s family has a proudCatholic tradition. My great-aunt,Mother Agnes Eugenia, co-founded the Franciscan Handmaids of Mary, a congregation of predominately blackwomen religious, in 1915. I have manycousins who have been members andleaders in this congregation. In 2003,my cousin became the first priest in ourfamily. His grandfather was the physicianwho delivered me in Beaumont, Texas,in 1954, after my mother had ridden a train from New York for three days to attend her sister’s wedding. At thattime, black physicians were not permittedto practice in local hospitals, so I wasborn in a clinic staffed by the only three black physicians in town.

Both my parents are retired and my mom has become progressively ill. As the lead person to handle all of heraffairs, I have learned more about thisnation’s health care delivery system by navigating it with my mom during the last seven years than in 24 years as a health care executive.

What This Opportunity Means to Me

In the fourth edition of Sacred Stories,

Judy Raley, SCN, wrote, “As I stood withthem, I had a deeper sense of what itmeans to be where God calls us at anygiven moment.” My professional careerhas been blessed — and challenged —since I joined Catholic Health Initiativessix years ago. More importantly, myentire life has been changed in a positiveway. I am a better person, a better husband, a better father, a better leaderand hopefully a better colleague. I’vealways believed in and supported themission and vision of every organizationI’ve worked for, because each of themclaimed care of the poor at the core of their existence. Catholic Health

Initiatives, however, is the first ministryI have embraced as a leader, as you haveembraced me. This is the first time inmy career I am able to live out what Ibelieve while leading an entire organiza-tion dedicated and committed to thehealing ministry of Jesus.

Catholic Health Initiatives built asolid foundation under Pat Cahill’sleadership. We consolidated many healthministries, created a sense of systemwhile building necessary infrastructureand navigated through difficult opera-tional and relational times. A lot hasbeen accomplished, and we are called to even greater levels of achievement —to nurture this ministry that has beenentrusted to us as religious and laity alike.

My mom has become progressively

ill. As the lead person to handle all

of her affairs, I have learned more

about this nation’s health care

delivery system by navigating

it with my mom during

the last seven years than in

24 years as a health care executive.

As we begin to chart the next course of this journey — this great experimentknown as Catholic Health Initiatives —we face some challenging external factors:� Living in a country that is at war

while trying to serve as peacemakers.

� An economy in recession, which has forced virtually every state in the union to make severe cuts in

Medicaid, education and basic healthand human services.

� Increased threats of bio-terrorism and the front-line role of our hospitals.

� Increasing cost of government regulation and scrutiny.

� An aging population with high levels of consumer expectation.

Even the public juridic person(Catholic Health Initiatives’ church corporation), the elemental structure on which Catholic Health Initiatives wasfounded, is being questioned by someleaders within Catholic health care. For the next few years, Catholic HealthInitiatives will experience significantchanges in management and governancedue to turnover and succession planning.

My Vision for CatholicHealth Initiatives

Clearly articulating a vision for one of the largest and most influential healthministries in the United States is adaunting challenge. My vision forCatholic Health Initiatives is groundedin my conviction and passion that her greatest potential is to establish the model to move the American healthsystem beyond a focus on “sick care” to a reality of “well care.”

“Well care” is my definition for holisticand integrative health — for wholeness.It is the prevention of illness; thepreservation and restoration of health;and the compassion to provide hopewhen healing is not possible. It is theoptimal state of mind, body and thespirit; it is also the intricate connectionof all three. Well care is everything and everyone that affects the health of a community, and consumers areseeking it out.

Catholic Health Initiatives does morethan espouse holistic and integrativehealth — it is lived out in every one ofour facilities, in every one of our com-munity health services organizations.Few other Catholic health systems are as well positioned to breathe life into

continued on page 6

6

well care, or wholeness in human health.Our Catholic heritage speaks directly to nurturing the mind, body and spirit,and our strong foundation has given us aplatform for the next part of the journey.

We can use “healthy communities”

as the way to transform

the American health care system.

This holistic health concept is also

the ethical choice, a perfect fit

for Catholic Health Initiatives.

It is what we believe. It is our core,our hearts and our minds. When wefully actualize our beliefs, then we willinfluence the beliefs of others. We canextend our ministry. We can use “healthycommunities” as the way to transformthe American health care system. Thisholistic health concept is also the ethicalchoice, a perfect fit for Catholic Health Initiatives.

Refocusing Resources

Although funds for health care arebeing whittled away at all levels, there are resources for integrative health care.The resources — people and money —must be refocused and redistributed.Catholic Health Initiatives has thecourage and the capacity to refocus the resources of people and money.

Let me give you an example. In 1992,at Howard University Hospital, quintu-plets were born, all of whom weighedmore than three pounds. As we celebratedthe birth of these quintuplets, a baby was

born down the hall to a woman with adrug addiction. This baby weighed onepound, six ounces. The resources usedto care for that one baby far exceededthe resources used for the quintuplets.Prenatal care and drug prevention andtreatment would have made a difference.How are we called to redistribute andrefocus the resources?

Catholic Health Initiatives has many healthy community successes —from Kearney to Baudette, Towson toRoseburg. We have the opportunity topull it all together and use our influenceand power to influence systemic change.We must take what we are doing in theliving laboratory of Catholic HealthInitiatives and move it to the next level.

Taking Risks

By most accounts, this is already a successful organization. However, thereare people who would describe ourstrategic plan and direction as “solid,but safe.” John F. Kennedy once said,“There are risks and costs to a programof action. But they are far less than thelong-range risks and costs of comfortableinaction.” Catholic Health Initiatives ispoised to lead boldly in a world that isfilled with risks, but with the risks comegreat rewards for the people we serve.

One might ask, “Why Catholic HealthInitiatives? Why now?” Catholic HealthInitiatives is the only one of a dozennot-for-profit, national health care systems that has the courage and conviction to do this. If you survey the landscape of American health care,many of the well-respected health systems operate in four states or less:Mayo Clinic, Johns Hopkins and otheracademic health centers, Christus Health,Catholic Healthcare West and St. JosephHealth System, to name a few.

Catholic Health Initiatives operates in 19 states and represents America: our communities are diverse in size, ethnicity, age, religious traditions, languages and socioeconomic levels.Our ministries serve people in cities

as large as Denver and the suburban towns near Philadelphia and Baltimore.We also serve rural communities likeBaudette, Martin and Baker City.Catholic Health Initiatives is the solecommunity provider of health care in 28 markets.

Our ministries range from a statewide,billion-dollar joint operating agreementin Colorado to group homes in Fargo,North Dakota. Catholic Health Initiativesand its market-based organizations havecarefully nurtured relationships withcommunity agencies and organizationsacross the country. Collaboration is oneof our hallmarks.

Courage, Conviction and Collaboration

Now, take our solid foundation,courage, resources, uncompromisingspirit and practice of collaboration. I see a Catholic Health Initiatives thatwill stand where no other national healthcare system stands. I see a CatholicHealth Initiatives that will develop andtest new and innovative delivery modelsof care, looking at the opportunity tocollaborate and partner with leaders in the field. I see people who will makethe connections to build healthy communities and become the model for the nation. I see a Catholic HealthInitiatives that demonstrates why thepayer system must be revamped toreward organizations that keep peoplehealthy. We are witnessing a milestone as the payment system is being revised toreward quality, and I applaud that effort.

Catholic Health Initiatives will havethe courage and conviction to makeintegrative health care a reality,includingfair payment for all services to allow usto nurture the ministry into the future.

My vision includes a Catholic HealthInitiatives that is not only true to itsCatholic heritage, but “makes Jesuspresent” in every facility and service.The healing ministry of Christ will betangible and palpable in our culture.This can only be achieved when formation in the healing ministry and

Lofton Address (continued from page 5)

spirituality drives all leadership develop-ment. Through us, Jesus will touch everypatient, resident and client we serve.

I see a Catholic Health Initiatives inwhich advocacy is the pacesetter for howa Catholic health ministry shakes up theworld outside the walls of its facilities.Catholic Health Initiatives will shapepublic policy in Washington, D.C., aswell as in state houses across the country.We will develop an effective grassrootscapability that will make elected officialsand trade associations turn to us beforeproposing to make changes in healthcare public policy.

My vision has leaders and associatesliving out our values to a degree that isvisible to everyone who comes to us forhealth and healing, through reverenceand justice, as Catholic Health Initiativesbecomes the place to work, in everycommunity. As testimony to our livedvalue of reverence, we have heard fromtwo groups outside Catholic HealthInitiatives – the Joint Commission surveyors and the leaders in Berea, Ky.,who told us that every person who workswithin our facilities manifests the corevalues in every interaction, with patientsand each other. Catholic HealthInitiatives is: integrity as we model thebehavior for business ethics; compassionfor those who are poor and underserved,to ensure that health care is available andaffordable; and excellence, consistentlydelivering the highest quality care topatients and clients and to steward ourresources to effectively and efficientlyserve our communities.

I see a Catholic Health Initiatives that is safe and patient friendly; that will take “best” practices and turn theminto “next” practices. Catholic HealthInitiatives will live out the vision of JesusChrist, the healer, as pioneered by thewomen religious who founded thesehealth ministries and this Board that is leading the way into the 21st century.Catholic Health Initiatives will becomean indispensable component of thesolution to systemic health care issues

and will promote healing and wholenessin every community we serve.

My responsibility is to make the visioncome alive. We will create an environmentthat fosters innovation and adopt a style of organizational behavior that iscomfortable with new ideas, change, riskand yes, even failure. David Hughes, anoted management authority, has said,“Creating an environment that is tolerantof mistakes is difficult. It must be madeclear that mistakes are acceptable if theyare based on solid thinking, enhancelearning of what will not work, and arecaught early before the damage is severe.”I think Catholic Health Initiatives wouldreceive mixed reviews if rated today onwhether it is an environment in whichrisk is tolerated, much less rewarded. Iask you to support leadership as we takethe necessary steps to ultimately makethis vision a reality.

This is my vision for Catholic HealthInitiatives. How we will get there is stillunfolding, but I am confident that withthe help of the Board and Members andleaders throughout the organization wewill make this vision a reality.”

A dedication written by A. J. Croninin a popular book on managementseems apropos:

“Life is no straight and easy corridoralong which we travel free and unham-pered, but a maze of passages, throughwhich we must seek our way, lost andconfused, now and again checked in ablind alley. But always, if we have faith,God will open a door for us, not perhaps one that we ourselves would ever have thought of, but one that willultimately prove good for us.”

7

“This is my vision for Catholic Health Initiatives.

How we will get there is still unfolding,

but I am confident that with the help

of the Board and Members and

leaders throughout the organization

we will make this vision a reality.”

Kevin LoftonPresident and

Chief Executive Officer

Catholic Health Initiatives

positive changes to Catholic Health Initiatives and we arepleased to be able to assist in the initial design of such aninnovative project,” said Ruth Brinkley, president and chiefexecutive officer of Memorial Health Care System. “It is a privilege to work for a progressive organization that embraceschange to support our healing ministry. I am looking forwardto the benefits this new system should bring to our patientsand community.”

Now in its design phase, CHI Connect

is being developed by multi-disciplinary teams

of professionals from finance, human resources,

payroll, information technology

and supply chain from both market-based

and national staff.

Through CHI Connect, centralized service centers will provide tools and national support for accounts payable,payroll, human resources and benefits administration, supply contracting and procurement. There will be nochanges to clinical functions. CHI Connect will change howsupplies are requisitioned and enable improved tracking of supplies, which will allow the organization to collect data, share information and identify opportunities for standardization.

Based on preliminary data and the experiences of other health care organizations that have imple-mented this system, some positions in supply procurement, accountspayable, human resources and payrollwill be affected by this new initiative.Some of these individuals will be offeredopportunities at centralized service centers and several new jobs will be created. Some jobs will be eliminated.

The impact on staffing for individual market-based organizations is being evaluated and will vary by organization size. Catholic Health Initiatives estimates that a small number of positions will be affected. Changes in job structure will occur as the system is implemented at each market-based organization.

“We understand that this change willaffect people’s lives and we are sensitive to that,” said Kevin Lofton, president andchief executive officer of Catholic HealthInitiatives. “In keeping with our mission andcommitment to employees, the individualsaffected will be assisted with the transitionthrough retraining or other opportunities within Catholic Health Initiatives.”

8

(continued from front cover)

CHI Connect Supports Advantages of Unified System

informed decision-making. ACIS assistsin compliance with industry regulationsand meeting the requirements of nationalgroups that examine patient safety. ACIShelps reduce morbidity associated withadverse effects and medical errors byadvising clinicians of drug, allergy ordosage recommendations. Clinicians canquickly access information about patients’previous visits and their medical histories,including diagnosis, orders, results, documentation and disposition. Thestreamlined communication reduceslength of stay, time to diagnose andpatient frustration with redundant ques-tioning and increases patient confidence.

“ACIS directly supports our core strategy of quality,” Ray said. “This helps

us fulfill Catholic Health Initiatives’ goalto be the recognized leader in quality,safety and customer service. It reinforcesour core value of excellence and puttingforth our personal and professional bestfor the patients we serve.”

Eventually, ACIS will enable physiciansto manage orders electronically, includingorder entry, order processing, orderinquiry and electronic signature(approval). Physician decision-makingwill be augmented by clinical decisionsupport and alerts to clinically significantresults. Medical errors associated withpoor order legibility and transcription of written orders will be eliminated. In addition, the time between order submission and actual administration

of medications will be markedly reduced,providing for better patient care.

Full implementation of ACIS will takeup to five years. The five initial market-based organizations will implement various applications at different times.Multi-disciplinary teams are already working to customize the system for their market-based organizations, andclinicians will be asked to provide feed-back on design prototypes.

For more information, contact RickTurner, MD, vice president,clinicalinformation systems, at 303/383-2644or rickturner@catholichealth.net.

New Clinical Information System (continued from page 3)

9

Now in its design phase, CHI Connect is being developed by multi-disciplinary teams of professionals from finance,human resources, payroll, information technology and supply chain from both market-based and national staff.Susan Peach, senior vice president for performance manage-ment, is chair of the Executive Steering Committee comprisedof market-based and national leaders.

The “go-live” date for the Memorial and national officelaunch sites is targeted for April 2005. Lessons learned from these launch sites will be used to fine-tune the implementation schedule of CHI Connect for the remainingmarket-based organizations. Implementation of CHI Connect

will be phased in through 2008, providing time to plan,design, build, test and train staff. The phased-in approachwill allow for additional input from market-based organiza-tions on design and final modifications.

Carol Newton, Memorial’s chief financial officer, serves as the CHI Connect project leader in Chattanooga. “We areexcited about having timely access to operational informationso we can sustain and enhance our mission while comparing

and benchmarking with our peers across Catholic HealthInitiatives,” Newton said. “CHI Connect should allow us tospend less time preparing data and more time analyzinginformation, which will enable us to make better decisionsfor the entire health care system.”

Catholic Health Initiatives has selected Lawson software to implement CHI Connect. Lawson, which serves 2,200 customers nationwide, specializes in developing software for the health care field.

“Our success will be directly related to our willingness to embrace change,” said Chris Macmanus, senior vice president and chief information officer for Catholic HealthInitiatives. “It is imperative that we create a common visionand stay the course. Implementing CHI Connect will enableCatholic Health Initiatives to nurture the healing ministryand remain vital and self-sustaining as we work to improvethe health of the communities we serve.”

For more information contact Lu Sims, vice president of information technology, at 303/383-2747 or lucillesims@catholichealth.net.

10

ignificant savings from

operational efficiencies,

better information for

decision-making and

fewer transaction errors have been

achieved by Catholic Health Initiatives

market-based organizations that have

used Lawson software to implement

systems such as CHI Connect.

Executives with those market-basedorganizations acknowledge that theimplementation of such as a systemtakes considerable time and resources,but is well worth the effort for staff whouse the software daily and managers whonow have access to richer informationfor strategic business plans.

According to Clay Johnson, vicepresident of materiel management at Centura Health in Colorado, implementing a centralized operatingsystem like CHI Connect providedtremendous efficiencies. “The largestadvantage of using a centralized data-base (for materials management) is thatit helped us prioritize our contractingand reach price parity points across ourfacilities,” Johnson said. “In addition,we have been able to reduce coststhrough automated processes likeonline requisitioning. We can now see our dollars spent by vendor or by category across the enterprise.”

Johnson believes that standardizingoperational processes is the key to successful implementation of a systemlike CHI Connect, because without cen-tralization, market-based organizationswill not realize potential improvementsin efficiency.

Benefits to human resources andpayroll functions became apparentsoon after Mercy Medical Center inDes Moines, Iowa, began using Lawsonsoftware in 2001. The medical centerhad used manual and paper processesto manage timecards and benefits formore than 6,000 employees, and discovered efficiencies from usingLawson almost immediately. “Our payroll error rate dropped dramaticallyonce we began using the system,” saidRobyn Wilkinson, senior vice presidentof human resources at Mercy.“Employees can access and update their own personnel and benefitsinformation through the Web or our intranet, and we have held twoopen enrollments online without any problems. We have access to notonly more, but more comprehensivepersonnel data than ever before.”

Kelly Benable, financial servicesmanager for St. Vincent Health Systemin Little Rock, Ark., said Lawson soft-ware allows her finance department to generate reports more efficiently. “It has a good set of built-in reports,but I can tell it what to run,” she said.“On a mainframe system, this processused to take a few hours. Now, it’s real-time.”

Despite their success, all three market-based organizations advise others totake as much time as needed — whichthey estimate at a minimum of 12months — to learn about, prepare forand train users on CHI Connect. “Take itslow and do it right,” Johnson advised.“Upfront preparation is critical.Assessing the existing functionality of proprietary systems with the newfunctionality of CHI Connect will help us develop proper training, educationand rollout programs.”

“Those who use the system every

day absolutely love it.We can’t

imagine our life without it now.

Change is always hard, but the

experience was much more positive

than we ever anticipated.”

Robyn WilkinsonSenior Vice President, Human Resources

Mercy Medical Center

Des Moines, Iowa

This advice is built into the CHI

Connect implementation plan, which has 18 months dedicated to developingthe operating model design. Teams of market-based representatives andnational staff are meeting by function(finance, human resources, supply-

Market-Based Organizations Share Lessons Learned on Lawson Software

S

11

chain and payroll) and in multi-disciplinary teams, said Lu Sims,Catholic Health Initiatives’ vice presi-dent for financial and administrativesystems and project lead. Lessonslearned in the development and implementation of CHI Connect atMemorial Hospital in Chattanooga,Tenn., and the national offices will be incorporated into the project, andindividual market-based organizationswill become involved well in advance of their implementation dates.

Wilkinson said Lawson uses a scripting process to adjust, add to or

update existing features of the software.She suggests limiting the amount ofcustomization to avoid potential issues.“Our goal was to keep our interactionwith Lawson as ‘vanilla’ as possible andnot customize it too much,” she said.“That meant rethinking the way we do things from a policy and procedureperspective. Sometimes the ‘vanillaness’of the system was a better way to do it,which can be hard for managers whoinstituted previous policies to accept.We learned not to take that as defeat.The entire point of the new system is to generate a better way of operating.”

Despite the enormity of implementinga standardized system, those interviewedbelieved it was well worth the effort andprovided a strong return on investmentfor their organizations. “Those who usethe system every day absolutely love it,”Wilkinson said. “We can’t imagine ourlife without it now. Change is alwayshard, but the experience was muchmore positive than we ever anticipated.”

“I commend Catholic HealthInitiatives for the vision of pulling this together,” Johnson said. “ForCentura, it’s been truly beneficial.”

12

New Ultrasound Technology at St. John’s in JoplinEnhances Fetal Images

Radiologists andtechnicians at St. John’s RegionalMedical Center,Joplin, Mo., areusing new technologyfor ultrasound imag-ing. The medicalcenter’s two LOGIQ9 units from GE

Medical Systems provide three-dimensional ultrasoundservices and enable parents to take home detailed, e-mailableimages of their babies. The LOGIQ 9 makes three-dimen-sional images possible by capturing images of soft tissue aswell as bone structure. The improved images will also bringgreater precision to diagnostic areas beyond obstetrics, suchas abdominal imaging and gynecology. For more information,contact Robin McAlester, media/promotions coordinatorfor St. John’s, at rmcaslest@stj.com.

Flight for Life at St. Anthony’s in DenverAdds Staff Chaplain

The Flight for Life program at St. Anthony Hospitals inDenver, Colo., is one of the first emergency air ambulanceprograms in the nation to add a chaplain to its staff. “This is something we have contemplated for some time,” saidKathy Mayer, director of the program. “The position isfunded through a grant provided by the St. AnthonyHospitals Volunteer Association, and we are very grateful for their generosity and support.” For more information,contact Bev Lilly, manager of public relations for St. Anthony Hospitals, at bevlilly@centura.org.

State Representative Visits School-based Health Center in Denver

Andrew Romanoff, Colorado state representative, recentlytook a first-hand look at the school-based health center atLake Middle School in Denver, Colo. Romanoff supportshealth care programs for lower income children in Denver.St. Anthony Hospitals sponsor school-based health centersat Lake Middle School and Cheltenham Elementary School,where about 70 percent of the students have no health

insurance. The clinics provide preventive medical care,sports physicals, substance abuse and violence preventioncounseling, asthma treatment, tobacco cessation services and acute medical care. For more information, contact BethElland, director of community partnerships for CenturaHealth, at bethelland@centura.org.

(Left to right) Andrew Romanoff, Colorado state representative, with

Teresa Daniels, community outreach coordinator for Centura Health,

Mary Boudrias, school nurse, Peggy Baike, nurse practitioner, and Beth

Elland, director of community partnerships for Centura Health.

Saint Francis in Grand Island Gives Patient Dying Wish

Staff members at Saint Francis Medical Center, GrandIsland, Neb., recently granted a dying patient’s wish to visithis son’s new auto repair shop and see the classic 1970Oldsmobile Cutlass they had restored together. In an articlein the local newspaper, Larry Lewis’ wife, Beth, said thefamily realizes the gift of time and memories they were givenby the staff members who make the trip possible. “I knowthey spent many hours they’re not telling us about makingthis happen,” she said. “It was such a great gift for our family.” Lewis died one week after visiting his son’s shop.For more information, contact Bob Bonnell, director ofpublic affairs for Saint Francis, at 308/398-5824.

St. Anthony Hospitals in Denver Receive Award from National Guard

George Zara, chief executive officer of St. Anthony Hospitalsin Denver, Colo., recently accepted the Employer Support of the Guard and Reserve Award from Major John Papile ofthe Wyoming Army National Guard. The award recognizesemployers for their support of employees who are deployedduring a national crisis. St. Anthony Hospitals supplementthe compensation of military personnel called to active dutyin order to maintain their full wages and benefits.

MARKET-BASED INITIATIVES� Core Strategy: Quality

� Core Strategy: People

13

Saint Joseph Home Care in Lexington Earns High Ratings

Saint Joseph Home Care Services, part of Saint JosephHealthCare, Lexington, Ky., earned high marks in a recentHome Health Quality Initiative Report from the Centersfor Medicare and Medicaid Services. The scores for SaintJoseph were above the state and national averages in mostcategories. The categories included percentage of patientswho get better at walking; who improve at getting in and outof bed; and who experience less pain when moving around.For more information, contact Jeff Murphy, director ofpublic relations for Saint Joseph, at jmurphy@sjhlex.org.

Mercy in Roseburg Named Top IT Visionary

Mercy Medical Center, Roseburg, Ore., was named one ofthe Top 100 IT Visionaries by InfoWorld magazine. Mercy wasrecognized for its use of wireless, voice-activated communi-cation badges. The badges, which measure 4” by 1.5” andweigh less than two ounces, are worn around the neck andinclude a headset jack. The badges enable users to instantlyconnect with the people they need via voice prompts. Formore information, visit www.mercyrose.org.

Centura Health in Colorado Wins Awardsfrom Colorado Healthcare Communicators

Colorado Healthcare Communicators, a public relationsand marketing society for health care professionals, recognized several Centura Health associates and facilitiesfor outstanding marketing and communications initiativesduring 2003. Centura Health and its facilities won goldand/or silver awards for marketing collateral, communityrelations, writing and internal communications. TwoCentura associates, Bev Lilly and BeeJae Johnson, shared the award for Communicator of the Year as members of acommittee that revised and implemented Health InsurancePortability and Accountability Act (HIPAA)-compliantguidelines for media relations.

St. Mary’s in Pierre Shares in Distinguished Service Award

The Chamber of Commerce in Pierre, S.D., recently presented its Distinguished Service Award to the HealthyCommunity Initiative initiated and supported by St. Mary’sHealthcare Center. The award recognizes the work of a person or group that is important to the community. The Healthy Community Initiative involved more than 200 community members in forming an action plan for building a healthy community. For more information,contact Cindy Bahe, communications director for St. Mary’s, at 605/224-3160.

Saint Joseph East in Lexington Opens New Building for Women’s Services

Saint Joseph East, Lexington, Ky., recently held a ribbon-cutting ceremony for a new, 80,000 square-foot buildingthat is primarily dedicated to women’s services. The newbuilding, which is attached to the existing Saint Joseph Eastfacility, houses the Saint Joseph East Breast Care Center; a women’s boutique that features products for maternity and breast cancer patients; the Center for Weight LossSurgery; an education center; and several physician offices.“Since acquiring Saint Joseph East in 1998, the success ofthat facility has been tremendous,” said William Hendrickson,FACHE, president and chief executive officer of SaintJoseph HealthCare. “This new addition will allow us to continue to meet the needs of the rapidly-growing east sideof Lexington, as well as the community at large.” For moreinformation, contact Jeff Murphy, director of public relationsfor Saint Joseph HealthCare, at jmurphy@sjhlex.org.

� Core Strategy: Performance

� Core Strategy: Growth

14

Our Lady of the Way in KentuckyCelebrates Completed Renovation

Our Lady of the Way Hospital, Martin, Ky., hosted anOpen House on November 13 to celebrate its $2 millionrenovation project. “The ultimate goal of our renovationproject was to be able to better serve our community, and I think we have succeeded,” said Kathy Stumbo, presidentand chief executive officer. The hospital’s Level III emer-gency department, which cares for more than 18,000patients each year, was a major focus of the renovation. The department expanded to include seven beds, a fully-equipped trauma room, a decontamination area andimproved access for ambulances and walk-in patients. The hospital’s radiology department also had a majorexpansion, and now has two radiography rooms and the latest diagnostic equipment. For more information, contact Neva Francis, director of community outreach, at nhfrancis@olwh.org.

Attendees at the open house marking the completion of a major

renovation at Our Lady of the Way Hospital included (left to right)

Senator Johnny Ray Turner; Frank Delzer, member of the hospital board;

Gerald McMasters, chair of the hospital board; Kathy Stumbo, hospital

president and chief executive officer; Billie Turner, hospital vice president

of patient care services and chief nursing officer; Mayor Thomasine

Robinson; Allan Sullivan; and James Kaskie, senior vice president

of operations for Catholic Health Initiatives.

St. Joseph Health MinistriesBreaks Ground for New Facility

Members of the Board of Directors and staff of St. JosephHealth Ministries, Lancaster, Pa., broke ground for newoffice space at a ceremony on November 18. “The new spaceis an important piece of our future plans for St. JosephHealth Ministries,” said Jennifer Thompson, executive

director. “The new space will allow us to better serve ourclients and will be more functional for our staff. The abilityto house all of our staff in the same space will help usimprove our internal communications, streamline our services and spend more time in the communities we aspireto serve.” St. Joseph Health Ministries expects to move into the new space in May 2004.

(Left to right) Robert Miller, chair of the board; Lawrence Evans,

board member; Jennifer Thompson, executive director; and Steven

Mitchell, vice chair of the board, dug in at the recent ground breaking

ceremony for St. Joseph Health Ministries’ new office space.

St. Joseph in Towson Opens Renovated Orthopedic Unit

St. Joseph Medical Center, Towson, Md., celebrated the grand opening of its renovated Orthopedic InstituteInpatient Facility on November 21. The 70,000 square-foot,50-bed unit, which features an expanded rehabilitation gym,solarium and living room, was renovated at a cost of $6.2million. St. Joseph’s Orthopedic Institute performs morethan 4,500 procedures annually, including the most jointreplacement procedures of any Maryland hospital.

S.E.T. of Colorado Springs Relocates Family Medical Clinic

S.E.T. of Colorado Springs, Colo., celebrated the move of its Family Medical Clinic to a new, permanent locationwith a dedication and blessing ceremony. The clinic servesuninsured families, children and other individuals. “For thepast 10 years, our clients had to remember where the clinicwas located on what day,” said Maureen McGrain, executivedirector. The clinic’s new location in front of S.E.T.’sadministrative offices in downtown Colorado Springs isdirectly on the bus line. The clinic also extended its hours andis now open Monday through Friday from 5:30 to 8:30 p.m.

15

St. Vincent in Little Rock Receives Kudos for Advertising

The new image campaign created by St. Vincent HealthSystem, Little Rock, Ark., was featured in the November/December issue of Healthcare Advertising Review. The publicationsaid the campaign “stands out from its competitors withemotional, caring appeal.” For more information, contactScott Mosley, vice president of corporate development for St. Vincent, at smosley@stvincenthealth.com.

Schumacher Inducted as Fellow in American Academy of Nursing

Larry Schumacher, executive vice presidentand chief operating officerfor Mercy Medical Center,Des Moines, Iowa, wascongratulated by MarjorieBeyers, RN, PhD, FAAN,a member of the CatholicHealth Initiatives Board ofStewardship Trustees, afterbeing inducted as a fellowof the American Academy

of Nursing on November 15. To become a fellow, a nomi-nee must demonstrate extraordinary commitment and contribution to nursing that far exceed the responsibilitiesof his or her employment.

Auxilian at St. John’s in Joplin Named Association President-elect

Chet Dudziak, an auxilian at St. John’s Regional Medical Center,Joplin, Mo., was recently installedas president-elect of the board ofthe Missouri Association of HospitalAuxiliaries. Dudziak, who served as a medical corpsman with the U.S. Navy during World War II,

joined the St. John’s Auxiliary in 1994. He has served as vice president and president of the auxiliary and is currentlySt. John’s gift shop manager.

Lee-Eddie Featured in Journal of Healthcare Management

An interview with Deborah Lee-Eddie, senior vice presidentof operations for Catholic Health Initiatives, was featured in the November/December 2003 issue of the Journal of Healthcare Management. The interview focused on Lee-Eddie’scareer and role within Catholic Health Initiatives.

Bader, Ray Announce Retirementfrom Catholic Health Initiatives

Diana Bader, OP, PhD, has announced her retirement as senior vice president of mission for Catholic HealthInitiatives. Her retirement is effective June 30, 2004.

Harold E. Ray, MD, has announced his upcoming retirement as senior vice president and chief medical officer for Catholic Health Initiatives. His retirement is effective June 30, 2004.

Catholic Health Initiatives has begun national searchesand the evaluation of internal and external candidates for these leadership positions.

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Initiatives is published monthly by Catholic Health Initiatives. Please direct submissions for articles,questions, comments or mailing list changes in writing to:

InitiativesCommunications OfficeCatholic Health Initiatives1999 Broadway, Suite 2600Denver, CO 80202fax: 303/298-9690 e-mail: initiatives@catholichealth.net

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Please send photos, news releases orbrief announcements on successfulhealthy community initiatives, uniqueclinical and service advancements, new partnership activities, awards and recognitions and appointments of executives. Submissions should bebrief and include contact information.

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INITIATIVES

A spirit of innovation, a legacy of care.

www.catholichealthinit.org

Catholic Health Initiatives is completing work on the next edition of theNational Healthcare Environmental Assessment (EA). The EA serves as the foundation for updating the organization’s strategic plan. The update process will occur in stages during the next four months:� February – Strategic Planning Steering Committee to hold a Strategic

Planning Summit and Kickoff Meeting February 11-12.

� March – Draft strategic plan completed.

� April – Strategic plan finalized, along with a proposed implementation plan.

� May – Board of Stewardship Trustees’ Planning Committee to review andapprove strategic plan.

� June – Board of Stewardship Trustees to approve final strategic plan.

� July – Strategic plan implementation begins, with ongoing monitoring and progress reporting.

A communications plan, including Web-based access to progress reports, will provide regular updates throughout the planning process.

For more information on the strategic plan update process, contact Bob Cook, vice president of strategic planning for Catholic Health Initiatives, at bobcook@catholichealth.net.

Catholic Health Initiatives BeginsStrategic Plan Update Process