president’s report 2008
DESCRIPTION
President’s Report 2008TRANSCRIPT
75The
NexT
LuTheraN homes, INc . PresIdeNT’s rePorT 2008
Years
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3
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4
65
7 8
109
1) Elmer O’Keefe, Concord Village resident and volunteer
Izabelle Jimenez, Children’s Village student
2) Joyce McNamara, volunteer and entertainer
3) Marie Clark, Concord Village resident and volunteer
4) Marcy Soest, Concord Village resident and volunteer
5) TracyVance,LutheranHome,StaffingAssistant,NursingServices
6) Calvin Schultz, Concord Village resident
7) Erwin & Gretchen Fuhrmann, Concord Village residents and volunteers
8) Bob Soest, Concord Village resident and volunteer
9) Edith Blessing, Lutheran Home resident
10) AliceMoore,LutheranHomeresident
Cevan Miller, Children’s Village student
Bruce Blalock, President & CEO
ALeTTerfroMTHepreSideNTANdCeo
AsicompletemyfirstfullyearatthehelmofLutheranHomes,inc.
(LHI), I’m thankful for the opportunity to lead an organization with
suchremarkablepotential.i’vereceivedquiteawarmreceptionin
thepastyear,andforthisithankyou.it’sbeenabusyyear—one
fulloftransition—andi’mthrilledtoseesuchanenthusiasticresponsetoall
thechangeswe’vemade.
Asthetitle“TheNext75Years”suggests,thisreportfocusesprimarilyonthe
futureofLHi.Andwhatabrightfutureitis.Butbeforeiarticulatemyhopes
anddreamsfortomorrow,i’dliketotakeaquicklookbackward.Herearejust
afewoftheaccomplishmentswe’veachievedtogetherinthepastyear.
EmployEE apprEciationin2007,employeeturnoveratLHiwas110percent.
SooneofmyfirstprioritiesasCeowastofocusonretention.Througha401(k)
plan with a generous match, no-cost and low-cost medical options, and new
avenuesfortwo-waycommunication—includingmonthlytownhallmeetings,an
employeenewsletter,andanewlydevelopedemployeeappreciationteam—we’ve
seensomeamazingresults.Turnoverhasdecreasedby45percent,andwe’vecut
overtimebymorethan50percent.
Moreimportantly,we’vemadelifefunatwork.Allofthistranslatesintoabetter
qualityoflifeforourresidents,asseenbytheresultsatLutheranHome:
ZerocomplaintsurveysordeficienciessinceApril2008.•
Zero low-risk residents have developed pressure ulcers •
inthepastsixmonths.
raisingLutheranHometothetop15percentinthestate •
foroverallpressureulcerprevention.
Wereceivedthe2008HealthCareexcelawardforimprovements •
inourqualitymeasurementsatLutheranHome.
Now that’s something to be proud of!
physical improvEmEntsWe’vemadesomesignificantchangestoour
physicalenvironmentaswell.Herearejustafewofthewayswe’reimproving
theinteriorandexteriorlandscape:
expandedemporium—ouroldgiftshopwassmallandcramped. •
Thenewonehasdoubledinsizeandhasanew“sodashop”feel.
WeitzmanTheater—ThroughagenerousdonationfromopheliaWeitzman,•
we converted an old, unused lounge into a state-of-the-art movie theater
withseatingfor13ormore.
privatediningroom—Weconvertedaconferenceroomintoan •
elegant private dining room at Lutheran Home, made possible by
adonationfromArnoldandCoraConrad.
ChapelCorridor—Wetransformedanoldconcretebreezeway •
intoashowpiecethatenhancestheLutheranHomechapel.
Chapelface-lift—Weremovedwallpaper,addedfauxpaint, •
andbrightenedupthechapelceilingatShepherdoftheHill.
NewNurseCallSystem—Weinstalledastate-of-the-artnurse •
call system at Shepherd of the Hill, eliminating the institutional
beepingnoisesfromtheoldsystem.
diningroomUpdate—Again,weremovedwallpaperintheShepherd •
oftheHilldiningroomandrepaintedit,creatingafreshnewlook.
In addition to these improvements, LHI is becoming green by replacing soap
andotherhousekeepingproductsandpurchasinggreenerfloormats.overall,
newlandscapingandconcrete—aswellasdecreasedclutter—haveimproved
thelookandfeelofourbuildings.
program EnhancEmEnts One thing that has set LHI apart from the
competitionforyearsisourinnovativeintergenerationalprogramming.in
the past year, we’ve enhanced opportunities for multigenerational interaction
through our ice cream social and our most-attended friends and family trick-
or-treatever.otherprogramenhancementsincludeawellnesslectureseries;
creative-writing,memory-minder,andfitnessclasses;andWiisports.
CalvinSchultz,ConcordVillageresident.
Carlripkeandelmero’Keefe,ConcordVillageresidents.
BobandMarcySoest,ConcordVillageresidentsandvolunteers.
Through all these changes, we’re moving away from traditional nursing home
stereotypesandcreatinganenvironmentwherepeoplecancomeandthrive.
It’s what will continue to set us apart from other retirement-living communities
inyearstocome.
LooKiNgAHeAd
Yes,we’rethankfulforallthatweasateamhaveaccomplishedinthepastyear.
Butevenmoreimportantarethegrowthopportunitiesforthefuture.infact,the
growthpotentialforretirementlivinginnortheastindianaisremarkable.it’sone
ofthereasonsiwasdrawntothispositioninthefirstplace:theopportunity
forstrategicleadership.
Here’swhatienvisionforthefutureofLHi.
LUTHerANHoMeS,iNC.,WiLLBeCoMeTHeLeAder forreTireMeNTLiViNgiNiNdiANABY2015.
Wecanaccomplishthisgoalbyfocusingontwoprimarystrategies:unique
growthandacomprehensivewellnessapproach.it’ssimple,really,andall
comesdowntothis—createaplacewherepeoplewanttolive,professionals
wanttowork,andfamilyandcommunitymemberswanttovisit.
Let’sstartbydefiningourcomprehensivewellnessapproach.
WeLLNeSSSTrATegY
it’sourintenttointegratethefollowingsixdimensionsintoeverythingwe
do on a daily basis, including independent living, assisted living, nursing,
employees,andvolunteers.
Spiritual Wellness—This includesnotjustourfaithbase,butalsoour
relationship with Christ, how we value life, and how we perceive death and
theafterlife.ongoingchapelservices,transportationtolocalchurchevents,
weekly Bible-study groups, and on-site pastoral services for both individuals
andfamilieswillallplayakeypartinspiritualwellnessatLutheranHomes,inc.
Physical Wellness—This can change a person’s life, as it prevents illness,
enhancespositiveattributes,andimproveswhatmayneedsomehealing.
Wecantailorspecificexerciseclassestoresidentswhoarebothmobile
andimmobile.Moreimportant—intermsofoverallfitnessfortheolder
adult—ishavingtheproperequipment,space,andprofessionalinstruction
toenhanceone’swell-being.
Social Wellness—This is a key component of the whole-person wellness
philosophy.AtLHi,clubsforjustabouteveryinterest,aswellastripsand
activities,arealreadyabundantlyavailable.
Emotional Wellness—Thisisamajorplayerintermsofbuildingawell-rounded
program and includes pastoral-care services, social services, and other
programsforsupport.
Intellectual Wellness—This deals with knowledge, creativity, and hobbies
inlife.intergenerationalprograms,computerlabs,on-sitelibraries,andour
ongoingpresentationsaddressthisaspectofwellness.entertainingand
educational programs presented to residents will provoke and stimulate
thebraintothink,remember,andultimatelycontinuetoflourishwithaging.
Occupational Wellness—This will promote positive wellness in all who live
andworkatLHi.formanypeople,theworkenvironmentiswherewespend
themajorityofourlives.Creatingandbuildingsoundoccupational-wellness
programsforstaffandvolunteersisthereforekeytooursuccess.
In order to implement this wellness strategy, we’ve created a wellness task force,
whichwillleadtheorganizationunderthefollowingguidelines:
programming—Creatingprogramswithinallsixdimensionsofwellness•
thatareconsideredinnovativeandindustry-leading.
employeeWellness—implementinganemployee-wellnessstrategy •
that continuously reinforces a culture of health and wellness, and
alsopositivelyimpactsemployee-benefitcost.
Communication,education,andMarketing—developingwellness•
communication tools that will market internally to help integrate the
dimensions,andmarketexternallytopromoteourinnovativeprogram.
UNiqUegroWTHSTrATegY
Indiana, particularly northeast Indiana, lacks an all-inclusive provider in retirement
livingandservices.it’saspacethatLHicanreadilyfill.That’swhywe’refocused
elmero’Keefe,ConcordVillageresidentandvolunteer,andizabelleJimenez,Children’sVillagestudent.
elfriedapflueger,VirginiaHarwood,patHormann,andNorwinNahrwold,ConcordVillageresidents.
onaddingtoourumbrellaofhousingandservicestocovermanyareasthatfit
withinourmission.Thisgrowthcouldincludethefollowing:
Home-andcommunity-basedservices—Medicare-certifiedhome-health,•
private-duty,hospice,andrespitecare.
independentLiving—affordablehousing,high-endindependentliving,and•
adevelopmentthatisinlinewiththe“NewUrbanism”concept,onethat
integratesatownwithinatown—atrueintergenerationalneighborhood.
ourfocusoverthenextdecade:
Fort WaynE campus Lutheran Home and Concord Village will continue as is,
marketingatamid-levelmarket-rateapproach.Theadditionofawellnesscenter
wouldenhancethebeautyofthiscampusforyears.inaddition,wewillfocus
onareastoenhancedailylivinginconjunctionwithourwellnessstrategy
duringthenextfiveyears.Herearesomeoffuturegoals:
developawellnesscenter.•
Transformtheexistingmedicalmodelnursingcentertoa •
neighborhoodconceptfocusedonanenvironmentofliving.
improvebothinteriorandexteriorenvironments.•
shEphErd oF thE hill campus Currently this campus is moving along
asitis—anursinghome.However,withourexpansionproject,wewillbe
transformingthisfacilityintoacommunity—onefocusedonengagingourresidents
withlife-enrichingopportunitiesinconjunctionwithourwellnessstrategy.inthe
nextfiveyears,thecampuswilllookdramaticallydifferent:
expandvia60apartmentsofassistedandindependentliving.•
Createroomforduplexconstructiontofilloutthecampus.•
homE hEalth sErvicEs It is our belief that home health will be the primary
conduitforcareforthemajorityofbabyboomers.Livingathomeisjusta
preferredchoiceformostAmericans.fortWayneisprimedforahome-health
agencytiedtoaretirementcommunity.Homehealthalsoprovidesamuch-needed
diversifiedrevenuesource.
additional continuing carE rEtirEmEnt communitiEs campusEs
growthforgrowth’ssakedoesn’twork.However,webelievewecanoffersuperior
retirement-livingoptionsforolderadultswithina100-milefootprintoffortWayne.
Wecanmaximizeandenhanceourreputationbycontinuingtogrow,further
provingthatwearetheexpertinretirementliving.inthenext10years,wehopeto:
AddfuturecampusesinnortheastfortWayne,northwestfortWayne,•
Auburn,andpossiblyadestinationarea(AngolaorSyracuse).
aFFordablE housingThereisahighdemandinAllenCountyforaffordable
housingaimedatseniors.itfitsourmission,itfitsnicelywithahome-health
serviceorganization—itjustmakessense.inthenext10years,wehopetofind
the capability to build a small apartment building within the Fort Wayne city limits
everytwoyears.
ASTroNgfoUNdATioN
These strategies can’t succeed without a strong foundation on which to build,
includingfinancialstrength,employerofchoice,andourChristianphilosophy
basedontheLutheranHeritage.We’llcontinuetofocusonthesethreecoreareas:
1. financialStrength—it’snecessarytohaveapositivebottomline
inordertocontinueourmission.infact,it’sabsolutelycriticalthat
wehavestrengthfinanciallytorealizeourvision.Thefollowingwill
strengthenourfinancialpositionsignificantly:
Createafoundationandconsistentfundraising.•
expandShepherdoftheHill.•
redesignLHinursingcare.•
Brandourselvesasexpertsinretirementliving •
withanewidentitypackage.
2. employerofChoice(quality)—re-definingqualityoflifeforourresidents
is our target, making our communities a place where people want to
live.oneofthebestwaystoaccomplishthisgoalisbybecomingthe
employer of choice, aiming at hiring those who are self-motivated and
self-disciplined, those who wake up every day, compulsively driven to
dotheirbestbecauseitissimplypartoftheirdNA.Wemustfocuson
improvingretention,providingafairwagepackageandanexcellentbenefit
package,andstriveforjob-satisfactionlevelsthatexceedexpectations.
TracyVance,staffingassistant,NursingServices,LutheranHome.
erwinandgretchenfuhrmann,ConcordVillageresidentsandvolunteers.
edithBlessing,LutheranHomeresident,andJenniferBryant,NursingServices.
Here’showwe’llgetthere:
employeeAppreciationTeam—Aimedatbringingfuninto •
workandappreciatingouremployees.
employeeWellness—partofourwellnessstrategy,thiswill •
haveagreatimpactonretention,recruiting,andmorale.
Leadershipdevelopment—Wewilldevelopourleaderstobuild•
a culture of effectiveness that aligns both satisfaction and
engagement.ourleaderswillfocusontheirteams,maximizing
employeeswhodon’tlookattheirjobasjustajob,butoneof
makingadailydifferenceinthelivesofourresidents.
3. Christianphilosophy—rootedintheLutheranHeritage,we’ve
developed a Christian philosophy that permeates everything we’ve
doneandcontinuestobeatthecenterofeverythingwewilldo.our
wellnessstrategyrecognizesthespiritualdimensionasextremely
importantforolderadults.
AfiNALTHoUgHT
Yes,it’sbeenayearofchanges.Butwecan’tstophere.Thenext75yearshold
suchpromise.LHiisoneofthepremierretirement-livingorganizationsinindiana.
it’sourgoaltobecomeknownasexpertsinretirementlivingandretirement
services,butnotjustforthesakeofaccomplishment.everythingwearedoing
andplanningtoaccomplishisfocusedonhelpingolderadultslive.Withyour
help,wecanmakethatdreamareality—together.
Bruce BlalockPresident and CEO
reVeNUe YeAreNd8/31/08 YeAreNd8/31/07
residentServices 19,025,372 19,937,023
Grants 344,567 328,580
Contributions 569,946 735,612
investmentreturns (361,256) 784,453
Other 741,620 502,322
total 20,320,249 22,287,990
ExPENSES YeAreNd8/31/08 YeAreNd8/31/07
WagesandBenefits 14,565,967 14,638,689
Supplies, Food, Other 5,834,693 5,696,703
depreciationandAmortization 1,394,960 1,393,696
interestexpenseandrelatedfees 176,979 251,031
provisionforUncollectibleAccounts 204,575 500,000
total 22,177,174 22,480,119
ASSeTS
Cash and Short-Term Investments 4,116,071 4,232,992
Accountsreceivable 1,973,398 2,896,750
property,plant,andequipment,Net 16,072,666 16,073,326
otherAssets 4,117,720 4,896,148
total 26,279,855 28,099,216
LiABiLiTieSANdNeTASSeTS
debt 4,521,349 4,848,154
Other Current Liabilities 2,724,976 2,168,825
Other Liabilities 2,220,997 2,412,779
NetAssets 16,812,533 18,669,458
total 26,279,855 28,099,216
2007—2008fiNANCiALreporT
AtShepherdoftheHillinKendallville:Tameraparker(standing),directorofNewAdventuresearlyLearningCenter, withoneofthecenter’sstudentsandLoisStrunk,apersonalcaregiverforaresident.
NOTES
LuTheraN homes, INc.6701 souTh aNThoNY BouLevard, ForT WaYNe, INdIaNa 46816
©2008LutheranHomes,inc.