The New

Face of Healthcare2010 ANNUAL REPORT

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2010 Annual Report

By and large, this past fiscal year will be considered one of the most challenging for healthcare organizations, mainly due to the troubled economy and the passage of unprecedented healthcare reform legislation. However, Pocono Medical Center (PMC) has the unique privilege of considering fiscal year 2010 one of the more successful and gratifying years in our 100-year history.

Not only did we achieve significant milestones in terms of new services and awards, but we also laid the groundwork for future growth to better serve our community. All the while, we remained dedicated to our mission of providing world-class care, close to home as well as our vision of building a healthier community.

Our unrelenting commitment to our mission and vision is best demonstrated in our being named a HealthGrades® 2010 Distinguished Hospital for Clinical Excellence. ™ This award, which is based on an independent study that examined patient outcomes from more than 5,000 non-federal U.S. hospitals, placed PMC within the top five percent (5%) of hospitals in the nation for outstanding patient outcomes. In addition to this elite designation, the study ranked five other PMC service lines within the top ten percent (10%) in the nation for clinical excellence. It is gratifying to receive a third-party testament

to the professionalism, dedication, and expertise demonstrated each and every day by the members of our PMC family.

We also recently opened our Neonatal Intensive Care Unit (NICU), making a long-time, shared vision a reality. Moving this project from an idea to a dream-come-true was a united effort among our dedicated Board of Directors, physicians, PMC staff, and generous supporters.

Our commitment to better serving our community was also shown through the recent groundbreaking of our new Dale and Frances Hughes Cancer Center. As the number one leading cause of death in Monroe County, expanding our already excellent oncology care services to address the real threat of cancer in our community is yet another reflection of our pledge to provide the best healthcare possible.

Although the Annual Report summarizes some of our achievements in the past year, it cannot fully communicate the hopes, the dedication, and the values behind the people that make PMC the new face of healthcare. These values are best conveyed by our ability to exceed your expectations despite any obstacles we may encounter today, while remaining focused on our vision of a healthier tomorrow.

Jonathan Goldner, DO Chief of Staff at PMC

Kathleen E. Kuck President and CEO of PHS/PMC

Gary Olson Chairman of PHS PMC Board of Directors

(left) On October 19, 2010, more than 300 members of the community attended the Groundbreaking Ceremony for the new Dale and Frances Hughes Cancer Center. Event guests honored their loved ones by lighting luminaries, which were positioned according to the blueprint for the new Cancer Center. Also during the Ceremony, Kevin Hughes announced that he and his wife Pat have committed a $5.25 million dollar pledge, made on behalf of the Dale and Frances Hughes Foundation, to continue bringing world-class cancer care to our community.

MESSAGE FROM LEADERSHIP

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PEOPLE

Like forensic scientists seen on popular television shows piecing together scraps of evidence to create a “bigger” picture, medical technologists work behind the scenes to perform crucial—even lifesaving—tasks in clinical laboratories. From conducting, reporting and/or confirming lab results to running tests for uncovering traces of disease, medical technologists play a central role in detecting, diagnosing, and treating patients.

Knowing first-hand the value of medical technologists—as well as the difficulty in recruiting and retaining these specialists locally—Romeo Samson, BS, MT, ASCP, BLD, Director of Laboratory Services at Pocono Medical Center (PMC), and his team of laboratory professionals led the development of a new program to train and retain medical technologists in our community. “We met with East Stroudsburg University (ESU) about establishing a similar clinical residency with their Bachelor of Science in Medical Technology (BSMT) students. We learned many of their

students were sent out of state because there was not a local program,” Samson states.

The laboratory team is now pleased to say this is no longer the case. In August 2010, PMC opened its School of Medical Technology. The program, which is accredited by the National Accrediting Agency for Clinical Laboratory Sciences (NAACLS), works in conjunction with ESU to help students earn BSMT degrees. Preparing students to pass their Boards is also a top-priority of the program, says program teacher and PMC Chemistry/Immunology Technical Supervisor Jason Perry. “We bring the clinical information down to a level they understand and bring them up as quickly as possible, so they are ready for the Boards.” Perry, who says the experience has been gratifying personally and professionally, considers the program a wise investment for our community, stating, “This is the next generation of people who will take care of us when we need it most, and we want them to be the best.”

Also teaching for the program are Perry’s colleagues Gail Ransome, Medical Technologist at PMC, and Torah Rogers-Moses, LIS/POCT Specialist at PMC. Ransome, who holds a Bachelor’s degree in Bacteriology, has been working in the field of microbiology for more than twenty years. Like Perry and Samson, Ransome works directly with the students, teaching the lab portion of the program while also helping with lectures and curriculum devfelopment. Similarly, Rogers-Moses, a certified medical technologist herself who has worked in the field for more than ten years, volunteered to perform lectures on blood banking, an integral component of the medical technologist program.

The program has been very well-received by students like Maria Bartol, Femi Vassel, and Simon Gentle, who can all live, work, and attend college in the same town. “I’m able to finish my classes at ESU and do the program at the same time, so I can graduate on time,” says Bartol. In addition to saving students time and money, the program also teaches vital skills. “I’m really happy with the program. I’ve learned so much through the hands-on experience and the one-on-one attention,” says Vassel. “Everyone is very helpful and willing to take time to teach you.” Like the other students, Vassel says she applied to other programs but chose PMC because it was closest to home. Turns out, it was not just the closest but the wisest choice, one that has given her and her peers the advantage of working with state-of-the-art instrumentation and a deeply dedicated, experienced team.

Investing in Tomorrow’s Healthcare Professionals:PMC OPENS NEW SCHOOL OF MEDICAL TECHNOLOGY

Read more at PoconoMedicalCenter.org

Romeo Samson, BS, MT, ASCP, BLD Director of Laboratory Services

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PEOPLE

Those who remember television’s Dr. Marcus Welby may recall the days when the primary care doctor provided or coordinated the patient’s entire healthcare experience. Gone are the days of such home visits and, admittedly, few things can be as frustrating as trying to navigate your way through a series of specialist visits and ancillary services such as imaging studies. These services are likely in a different office and perhaps even in a different town. This is exactly why Pocono Medical Center (PMC) is accelerating toward the promising model of the medical home, a central hub of medical services, provided in one location for everyone from pediatric to geriatric patients.

Currently, this innovative, patient-centered approach to care is being practiced at the Mountain Healthcare Center in Tobyhanna, under the direction of our primary care team of PMC Physician Associates. Leading the charge are Dr. Marc Keuler,

Internal Medicine, and Dr. Margaret Gallardo-Cochran, Family Medicine. According to Dr. Keuler, “The magic of the medical home is that it places the patient at the center of our healthcare delivery. It allows us to offer the majority of outpatient services by bringing specialists and ancillary services to the patient.”

The focus of this team approach is to coordinate wellness and preventive care, as well as chronic disease management, with the patient at the center of our healthcare delivery system. To accomplish this goal, the primary care team working with Drs. Keuler and Gallardo-Cochran includes Karen Powell, CRNP; Tavershima Asom, CRNP; Sharon Bolsar, PA-C; and James Kincel Jr., PA-C. Additional specialists include PMC Physician Associates’ six obstetrician/gynecologists, our team of pediatricians, cardiologists, diabetic nurse educators, dietitians, and surgeons Drs. Charles Herman, Maneesh Ailawadi and Nicolas Teleo.

Sophisticated information technology is also a distinguishing characteristic of the medical home. According to Dr. Gallardo-Cochran, “Advanced information technology including the electronic medical records and the newly implemented patient portal will drive the progression of the medical home while defining the patient-centered focus.” These tools provide caregivers efficient, real-time access to medical records across the entire health system. The patient portal enables patients to obtain test results, schedule appointments, request prescription refills, and ask caregivers questions over the Internet.

The transition to the medical home model will redefine the patient experience. Harnessing technology and leveraging industry best-practices for the benefit of our patients is another example of PMC’s commitment to deliver world-class care, close to home. It is the marriage of tomorrow’s technology and old-time values.

The Evolution of Healthcare Comes Full Circle:MEDICAL HOME UNITES YESTERDAY’S VALUES & TOMORROW’S VISION

Margeret Gallardo-Cochran, MD PMC PA: Family Medicine

Tavershima Asom, CRNP PMC PA: Family Medicine

Nursing Excellence AwardsKathleen Dyson, RN, BSN, CV Telemetry, and Maryanne Ilch, RN, BSN, Pediatrics, were named PMC’s Nursing Excellence Award winners in May 2010.

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PEOPLE

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PEOPLE

Earlier this year, General David Petraeus, Commander of U.S. Central Command, presented Charles K. Herman, MD, FACS, Director of Plastic & Reconstructive Surgery at Pocono Medical Center (PMC), with the Commander’s “Coin of Excellence.” Suffice it to say, General Petraeus is a keen and accurate judge of character, leadership, and grace under pressure. A modest survey of Dr. Herman’s accomplishments over the past year alone underscores the General’s worthy commendation.

In recognition of his contribution of time and expertise in the field of plastic and reconstructive surgery, Dr. Herman received his third consecutive MDx Medical Group's national “Patients’ Choice Award,” a commendation given to fewer than five percent of all active physicians in the nation, and was also appointed to Castle Connolly’s Guide to America’s Top Doctors.

In addition to these prestigious recognitions, Dr. Herman was inducted by his peers into the elite American Society for Aesthetic Plastic Surgery, was selected to the Jacques Maliniac Honorary Committee along with the American

Society of Plastic Surgeons (which is responsible for inviting international lecturers into the United States), and was appointed to the Strategic Advisory Board at the Laser Spine Institute in Wayne, PA.

As a well-respected author who is extensively published in such prominent medical texts as Aesthetic and Reconstructive Surgery of the Breast, the leading reference textbook on breast surgery, Dr. Herman also recently co-edited a new encyclopedia devoted to body sculpting, entitled: Encyclopedia of Body Sculpting After Massive Weight Loss. The internationally authored encyclopedia features contributions from more than forty authors located in various regions of the world.

Just as General Petraeus awarded Dr. Herman for his volunteer service to American Soldiers through his affiliation with the Iraqi Star Foundation, so do we salute his leadership and success as a world-class surgeon—and individual. Dr. Herman truly embodies our organization’s values and our goal of attracting the brightest and best individuals to lead our team.

A Portrait of Our People:CHARLES K. HERMAN, MD, FACS

Charles K. Herman, MD, FACSPMC PA: Plastic and Reconstructive Surgery

bringing our total number of staff to 1,860.

Our People

SERVICE

Cooking Up Healthy Programming for the Community:PMC’S SPIRIT OF WOMEN MAKES HEALTH EDUCATION PALATABLE FOR ALL

Whether working the cat walk at their annual fashion show or dishing out healthy meal ideas from favorite local eateries, Pocono Medical Center (PMC)’s Spirit of Women enthusiasts know how to have a good time while also providing informative, some times lifesaving, health education. As part of PMC’s commitment to improve the lives of women and their families in our community, our Spirit of Women programming allows for us to provide engaging and educational community outreach efforts.

One of the many successful programs offered to the community is our Diabetic Chef Event, which is coordinated by Susan Vrablic, PMC Coordinator, Diabetes Education. Vrablic is trained to provide practical information on knowing correct food portion size, making wise food choices, and integrating exercise into a healthier lifestyle regime.

“It is imperative that PMC take a lead role in educating our increasing diabetic population. Through educational outreach initiatives, PMC’s Spirit of Women program is continuing to build a healthier community,” explains Vrablic.

This annual event features a guest chef who prepares healthy and flavorful meals and spotlights area restaurants along with their healthy menu selections.

PMC’s Spirit of Women programming and screenings are provided to the community throughout the year, presenting health information in a fun, accessible manner with the primary goal of improving the wellness of the entire community.

How We Are Serving Our Community

$19,288,623

In fiscal year 2010 Pocono Medical Center (PMC) donated

care. That’s the total we invested this year in direct patient care, community health education, professional and patient education, and community partnerships.

DIRECT PATIENT CARE

*About shortfalls and Act 55: As per Act 55, community benefit provided by charitable organizations includes shortfalls between payments received from Medicare, Medical Assistance and patients, and the cost of providing care. EDUCATION AND PREVENTION

Education and Screening $60,805

PARTNERSHIPS AND SUPPORT

Free trawnsportation for patients

Free space for Community Meetings

Staff participation in leadership meetings

Grants and scholarships provided to

PROFESSIONAL & PATIENT EDUCATION AND PUBLICATIONS

Susan VrablicPMC Coordinator, Diabetes Education

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Read more at PoconoMedicalCenter.org

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SERVICE

In an age when our constantly-wired, continually-connected selves can perform virtually any task online—from checking our bank statements and monitoring our child’s grades to purchasing movie tickets and ordering pizza—it should come as no surprise that we expect the very same when it comes to our healthcare. Thus was the case when nearly 1,000 patients jumped aboard Pocono Medical Center (PMC)’s pilot of their latest information technology system earlier this year, an online patient portal—with the numbers projected to grow exponentially as the portal becomes available to even more patients.

The fast-paced changes continuously occurring in healthcare have ushered in a new world of personal connectivity, one that offers direct online communication with your healthcare provider and office professionals along with access to your personal health information. PMC Physician Associates recently launched this service in our outpatient practices, enabling patients and providers to communicate safely and securely via the Internet. After a successful

Dr. Sushil Mody’s patients, all four PMC Physician Associates (PMC PA) pediatricians are currently using the new PMC PA patient portal. The patient portal will be implemented

throughout all PMC Physician Associates practices in early 2011.

“The online patient portal enables patients to be more proactive in managing their healthcare, giving them the capability to request new appointments, view their appointment history, request medication refills, view lab and diagnostic reports, update their contact information, send emails to the practices, review billing statements, and view their immunization charts—all from the convenience of their computers via a secure login to the online portal, which is accessible from the Web site (MyPMCDocs.com), explains Dr. Mody.

“Based on early results, the patient portal system is being accepted very well by patients

up for the service after only two physician practice offices have implemented the system. This has exceeded our projections this early in the implementation,” says Brian Haug, Clinical System Analyst at PMC. “Patients have found it relatively easy to use the system and enjoy the fact that they can do so, when it is convenient

With the age of advanced information technology upon us, PMC continues to take a leadership role in connecting patients to providers and, most importantly, to better health.

All the Right Connections: PMC PATIENT PORTAL REVOLUTIONIZES PATIENT EXPERIENCE

Brian Haug, Clincial Systems Analyst at PMC (left) and Sushil Mody, MD, PMC PA: Pediatrics

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QUALITY

It was not long ago that one could not receive an interventional cardiac procedure or cardiac surgery in Monroe County. Now, just four short years later, the ESSA Heart and Vascular Institute (HVI) team at Pocono Medical Center (PMC) has not only made these services available for our community, but they have garnered numerous accolades and awards for their expertise in cardiac surgery and care—all at an unprecedented pace. “Let the record speak for itself—our patients' outcomes are among the best in the world,” says Anthony Nostro, MD, Medical Director of Anesthesia at PMC.

The HVI team collaborates to provide the highest quality of care to each and every cardiac patient. To be sure, PMC has celebrated numerous awards and recognitions made possible by all of the HVI staff. After only three years, our HVI Team has performed close to 800 open-heart surgeries and has received Chest Pain Center accreditation with PCI (percutaneous coronary intervention) from the

Society of Chest Pain Centers.

PMC's HVI team's superior performance has been recognized by the Society of Thoracic Surgery (STS), having received the highest STS rating for cardiothoracic surgery for isolated coronary artery bypass surgery.

Healthgrades®, the leading independent healthcare ratings firm in the United States, also placed PMC in the top ten percent for cardiac surgery and rated PMC five stars—the highest—in coronary by-pass surgery, valve replacement surgery, treatment of heart attack, and heart failure for 2010.

“We have succeeded in bringing university-level heart surgery care to a community hospital. As the lead open-heart anesthesiologist, I utilize

echocardiography and advanced brain monitoring technology to better serve our patients,” explains Dr. Nostro. And, we are doing so with compassion, care and the highest respect for our patients.

The Heart of Our Community:PMC’S ESSA HVI TEAM CAPTIVATES NATIONAL SPOTLIGHT

Read more at PoconoMedicalCenter.org

(top left); Nche Zama, MD, PhD, Medical Director, Cardiovascular and Thoracic Surgery, PMC(top right); Anthony Nostro, MD, Medical Director of Anesthesiology at PMC, North American Partners in Anesthesiology

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QUALITY

Clinical Excellence™ & Top 5% in the Nation for Overall Clinical Excellence by HealthGrades®

Surgery Excellence Award™ & Top 10% in Nation

Excellence Award™ & Top 5% in Nation

Gastrointestinal Care Excellence Award™ & Top 10% in Nation

Prostatectomy Excellence Award™ & Top 10% in Nation

Excellence Award™ & Top 10% in Nation

Health Excellence Award™ & Top 5% in Nation

Rated “Five Stars,” the highest, by HealthGrades in 2010 for:

Procedures

Pulmonary Disease

Healthgrades® Awards

Michael Greenberg, MDMedical Director of the PMC Dale and Frances Hughes Cancer Center

BREAST CANCER SURVIVORSHIP EXCEEDS NATIONAL BENCHMARKS AMONG PMC PATIENTS

With one in eight women expected to receive a breast cancer diagnosis in her lifetime, having access to the nation’s finest breast cancer care close to home is a rare privilege—and it’s one the women of the Pocono Mountains can count on. While still a serious diagnosis, national data indicates that patients of Pocono Medical Center (PMC) can take comfort in knowing they will receive the highest-quality care, close to home with the best chance for recovery. According to the Centers for Disease Control, breast cancer mortality rates have decreased significantly in the United States from

statistics available. PMC’s Dale and Frances Hughes Cancer Center also boasts impressive breast cancer outcomes. Data collected over the past 20 years indicate that PMC’s breast cancer recurrence rates are less than one percent in contrast to the national and international averages of seven to 20 percent.

“We are offering the most state-of-the-art breast preservation options for our patients in hormone, radiation, and chemotherapy. Our control rates are well above the national averages because of our attention to detail and follow-up with every patient,” explains Michael Greenberg, MD, Medical Director of the Hughes Cancer Center.

These results attest to the arsenal of care at PMC’s disposal, an arsenal complete with the most modern and superior treatment options, and to the commitment to quality PMC has in treating the healthcare needs of the community.

Read more at PoconoMedicalCenter.org

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GROWTH

As twilight cast over the Pocono Mountains on a cool

individuals stood solemn among low, flickering candles and a moment filled with emotion. Together, they honored their loved ones and offered thanks to the Dale and Frances Hughes Cancer Center for uniting them in this quiet, yet deeply profound moment. On this night, October

Center (PMC) celebrated the groundbreaking for the new Hughes Cancer Center, a place where many of the individuals gathered had found refuge, hope and healing for themselves or their loved ones.

Indeed, the construction of this landmark building will stand as a defining moment in the history of PMC. This remarkable facility will be a tangible expression of PMC’s mission to provide “world-class care, close to home.” The fusion of high-performance technology and leading-edge treatment protocols within a deliberately human-centered environment will truly define the level of care delivered at the new Hughes Cancer Center. The soul of this building, filled with natural light and native elements, will absolutely inspire confidence and belief in the healing process.

The need for this new facility is unequivocal. Currently, cancer is the leading cause of death in our community with a projected annual growth rate hovering around five percent. Further, the occurrence rates for cancer in Monroe County are higher than state averages, which in turn are higher than national averages. The extraordinarily high incidence of cancer coupled with the projected growth of future cancer cases in our community necessitated the expansion of services. “Despite the economy and many capital projects being cancelled or delayed, the Board of Directors confidently made the decision to move ahead with this project in order to address vital healthcare needs of our community” explains Gary Olson, Chairman of the Board of Directors at PMC.

Beyond the design, technology, and protocols, the new Dale and Frances Hughes Cancer Center will continue to foster an innovative and collaborative healing environment. Complementary and alternative medicines, such as music, art, and massage therapy will nurture the emotional and spiritual wellness of patients and their loved ones.

The new, two-story facility will be connected to PMC by a glass-enclosed bridge and

is scheduled for completion in 2012. Consistent with PMC’s vision for growth, the foundation and structure of this construction phase will be able to support six additional stories of vertical expansion. Sustainability is also incorporated into the structure. “The design team made a conscience decision to create a building that meets the LEED (Leadership in Energy and Environmental Design) Silver standards, underscoring PMC’s commitment to the importance of providing healthy environments for the region,” explains Keith Snidtker, Director of Facilities and Construction Management at PMC.

The expansion of the Dale and Frances Hughes Cancer Center will make a direct and lasting impact on the community we serve. In commenting on the Groundbreaking Ceremony, J. Andrew Jarvis of EwingCole (the architectural firm for the new Cancer Center) summarized this best, stating, “the candles slowly growing brighter as darkness fell while the names of departed loved ones were being read was a magical sight. The ceremony was a display of a community drawing together with its own resources, expertise, and ingenuity to create something of great value for its future.”

Where Hope Lives, Excellence Thrives:THE NEW DALE & FRANCES HUGHES CANCER CENTER

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GROWTH

The Brahm lullaby resounds throughout the halls of Pocono Medical Center (PMC). A baby is born!

Considering the unique healthcare needs for women and newborns, finding the very best care is not a luxury: it is a necessity. Thankfully, women in our community no longer have to travel to find exceptional care for all of their needs, with the new services provided by PMC. This past year, PMC made significant, even historic, investments to further enhance the services offered to the women and newborns in our community.

In the summer of 2010, PMC officially opened the doors to a brand new Neonatal Intensive Care Unit (NICU). “Neonatology is the medicine of hope,” explains Dr. Delfor Salazar, MD.

Dr. Salazar and his colleague, neonatologist Jordana Fenik, MD, along with their team are committed to providing the highest quality healthcare for newborns needing advanced

medical care. “Our littlest patients don’t speak, but their demands are huge,” says Dr. Salazar.

“Along with our experienced staff, our state-of-the-art NICU technology provides the most sophisticated monitoring and care for any baby weighing over

says Dr. Fenik. “In addition to our technical expertise, our Ronald McDonald® Room provides parents with an ideal environment to facilitate the transition from the NICU to home. Parents are able to care for their infants with close nursing support, thus easing anxiety, supplementing their education, and preparing them for success at home.”

Our new NICU complements a host of other services added to our Women’s and Children service line in the fiscal year 2010. Perinatology (caring for the fetus in complicated, high-risk pregnancies) is provided by maternal-fetal medicine specialists Albert Sarno, MD

and Steven Feinstein, MD. The mothers in our community also have the benefit of PMC certified midwives Tracy Webber, CNM and Laurel Wolfe, CNM. Our midwives offer a holistic approach while monitoring the physical, psychological, and social well-being of the mothers throughout their pregnancy.

In addition, PMC’s urogynecology program continues to provide advanced treatment, including minimally invasive surgery for conditions such as incontinence, abnormal bleeding. Our growing Women's and Children service line is a clear demonstration of our commitment to anticipating and addressing the healthcare needs of our community. PMC is proud to provide these new services close to home for our community members, who previously had to travel out of the area to receive this level of care for themselves and their babies.

Celebrating New Birth: PMC EXPANDS WOMEN’S AND CHILDREN SERVICE LINE

J. Delfor Salazar, MD, Medical Director of the PMC NICU (left) and Karen Caputo, CRNP, Neonatology

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TOP REFORM TRENDS LED BY PMC

While reducing healthcare costs is certainly a goal of the new healthcare reform legislation, Pocono Medical Center (PMC) knows real reform is about more than dollars and cents. True reform requires an unwavering focus on safer, more effective, more patient-centered care. Here are some of the top three commitments you can expect from PMC in the era of healthcare reform:

Prevention. Through early detection of disease and illness, health risk assessments and screenings can be lifesaving. They can also help spare individuals the significant costs associated with treating advanced medical conditions. PMC has remained a leader in providing our community with free healthcare risk assessments and screenings. Between our on-site workplace wellness visits, community special events, Spirit of Women programs, and other health initiatives, PMC performed the equivalent of conducting at least one free screening or risk assessment every day of every week of the entire fiscal year!

Technology. Safe, secure, and convenient, Electronic Medical Records (EMRs) enable PMC physicians to easily exchange important information about a patient’s history, treatment, medication, and more. This means better patient care through improved communication and a seamless continuum of care. Likewise, our online patient portal enables patients to correspond with providers through a secure Web site, potentially avoiding the need for a costly office visit or trip to the emergency room.

Quality. Consistent with our pledge to world-class care, PMC’s Quality and Performance Improvement Program continuously monitors patient care to ensure that the appropriate level of care is delivered according to the highest standards. Not only will this contribute to a healthier bottom line, as insurance companies shift to a “pay for performance” system that determines hospital reimbursements according to quality outcomes but, more importantly, it will also result in a healthier community overall.

FINANCE

Taking New Form:SURVIVING HEALTHCARE REFORM REIMBURSEMENT CHANGES

Despite the uncertainties associated with the new healthcare law, one thing that is for certain is the fact that Pocono Medical Center (PMC) has been proactively selecting best practices and patient care processes to ensure that the appropriate level of care is provided at all times with the utmost dedication to clinical excellence. In addition to providing greater coordination of services at our new medical home in Tobyhanna and improving patient-provider communications via our new online PMC Physician Associates patient portal, PMC has remained steadfast in our commitment to providing the highest quality services possible.

Still, one of the leading challenges poised by the new legislation for PMC—and all other hospitals— is how healthcare reform will impact reimbursement for services rendered. According to Michael Wilk, CPA, Senior Vice President and CFO, the current structure of healthcare reform should allow more people to have health insurance, including many who have never had health benefits in the past.

While this will ultimately result in hospitals like PMC performing more reimbursable services overall, reimbursements from government insurance programs, are being reduced to compensate for the increased number of insured individuals.

debt (unpaid medical services) annually. Under the new healthcare reform, a portion of these services will be reimbursed, yet the amount it will be is unclear. The challenge to PMC will be whether the incremental revenue from the previously uninsured will be sufficient to offset the reduction in reimbursement from the government programs,” explains Wilk.

As PMC has been anticipating the shift in healthcare, we have been preparing for this challenge with the implementation of a myriad of wellness programs, support groups, community health screenings, educational events, and improved access to primary care. The emphasis on wellness is to prevent or reduce serious illness in the hopes of lower healthcare costs. Our wellness and primary care initiatives coupled with our overall commitment to continually improving the quality of services rendered at the Medical Center are part of our unwavering dedication to serve our community despite the ever-changing healthcare climate.

Michael Wilk, CPASenior Vice President and CFO at PMC

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FINANCEPocono Health System:Statement of Revenues and Expenses 2010 2009

REVENUE

Receipts for insurance carriers, Medicare, Medicaid, and others $273,782,988 $259,692,171

Additional revenues: endowment income, gifts, bequests,

investments and other sources of income. 2,485,884 2,905,234

S u b t o t a l 276,268,872 262,597,405

Less charity care deductions: (Includes below cost payments from Medical Assistance and other charitable programs) 13,166,398 11,454,492

Total Revenue 263,102,474 251,142,913

EXPENSEWages and Benefits 124,207,140 119,432,844

Supplies and other expenses 107,322,753 102,460,094Depreciation 14,348,334 14,316,493

Interest paid on loans 4,603,810 4,745,166

Total Operational Expenses 250,482,037 240,954,597

The difference between revenues and operational expenses 12,620,437 10,188,316

Other Income (expense)

Investment Return 5,506,264 937,253

Minority interest in gains of subsidiary (398,436) (928,714)

Total other income (expense) 5,107,828 8,539

Revenue over Expense that will be reinvested in Pocono Health Sytem $17,728,265 $10,196,855

206 East Brown StreetEast Stroudsburg, PA 18301570-421-4000

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