A n n u A l R e p o R t 2012

2012 ANNUAL REPORT

2012 ANNUAL REPORT 2012 ANNUAL REPORT1 2

MESSAGE FROM THE CEO

As we anticipated the need for primary care for our growing population, MCHS has opened four new clinics over the last three years to treat patients with minor illnesses and injuries quickly and affordably. In February 2012, we opened our newest Urgent Care location at 315 North Golder, across the street from Medical Center Hospital. This location, along with the Urgent Care location in the MCH Center for Health & Wellness on Highway 191 and Faudree Road, provides treatment for moderate injuries and ailments seven days a week with no appointment necessary. In addition, we have two Clinics at Walmart at the Odessa Walmart locations. These clinics provide quick, convenient treatment for minor illnesses six days a week with no appointment necessary.

And, we have the Family Health Clinic, located on Clements in Odessa, providing pediatrics, family practice, internal medicine, women’s health and a dental clinic all in one location. We bring primary care to the children of Ector County Independent School District as well, through the Ronald McDonald Care Mobile.

With our record-breaking population growth and our strong economy, fiscal year 2012 was a busy year for all of us and it doesn’t appear that it will be slowing down any time soon. You can continue to count on Medical Center Health System to grow to meet the needs of our community.

As Odessa/Midland leads the nation in population growth, Medical Center Health System has continued to expand to meet the region’s increasing healthcare demands.

To meet the needs of the over 8,000 military veterans in the Permian Basin, we broke ground in November 2012 on the new Veterans Affairs Permian Basin Community Based Outpatient Clinic. Located on the MCH Center for Health & Wellness Campus, at Highway 191 and Faudree Road in Odessa, the center is scheduled to open in March 2014. The center will include primary care and mental health along with a pharmacy, eye clinic, audiology center and physical therapy services. Clinic specialists will also provide assistance with nutrition, prosthesis and home-based primary care service.

In January 2013, we celebrated the first birthday of our new state-of-the-art Center for Women & Infants. The center includes 12 labor & delivery rooms, 20 newborn nursery beds, 30 private Neonatal Intensive Care Unit (NICU) rooms, three state-of-the-art cesarean-section suites, and a new Ronald McDonald Family Room with four bedrooms.

With over 1,500 babies delivered in its first year of operation, the Center for Women & Infants provides spacious, private rooms to accommodate large families who want to welcome their new bundle of joy. And, babies needing special attention in our Neonatal Intensive Care Unit are cared for in private rooms, which allows parents to stay in the room to bond with their baby while they receive a higher-level of care.

As the population increases, so does the number of patients seen in the Medical Center Hospital Emergency Department. In fact, we treated 51,487 patients in the Emergency Department in fiscal year 2012, a 4% increase in visits over fiscal year 2011. The increase in serious work-related and motor vehicle accidents has also contributed to an increase in trauma cases seen in the Emergency Department over the last fiscal year.

Medical Center Hospital

MCH Center for Women & Infants

MCH Center for Health & Wellness • Cardiac & Pulmonary Rehabilitation • Diabetes Center • Imaging and Mammography • Laboratory • MCH Laser & Wellness Center • Mission Fitness • Physical Therapy and Sports Medicine • Physician Offices • Urgent Care

Family Health Clinic • Family Practice/Pediatrics • Family Health Dental Clinic • Ronald McDonald Care Mobile

MCH Professional Care • Physician Offices • Clinics at Walmart East & West • Urgent Care Clinics at Center for Health & Wellness and MCH Campus

MCH Sleep Center

Medical Center Health System Foundation • Children’s Miracle Network

Permian Basin Healthcare Network

Affiliations • Texas Tech University Health Sciences Center • West Texas Cancer Center

SERvicES WELcOME

William Webster, FACHE Medical Center Health System Chief Executive Officer

FAMILY OF SERVICES

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FInAnCIAL STATEMEnT

ELEVATInG HEALTHCARE In OUR COMMUnITY

MISSIOn, VISIOn And VALUES

David DunnDistrict 4 Member since 2006

David NelsonDistrict 5 Member since 2011

Mary E. Thompson, RNDistrict 6 Member since 1990

Virgil W. TrowerDistrict 7 Member since 1996

Richard HerreraDistrict 3 Member since 2007

William WebsterCEO, Medical Center Health System since 2000

Mary Lou AndersonDistrict 2 Member since 2010

Judy HayesDistrict 1 Member since 1992

MISSION Medical Center Health System is a community-based teaching organization dedicated to providing high quality healthcare and improving the health and wellness of all residents of the Permian Basin.

To be the premier source for health and wellness.

“I CARE”

VISION

Audited by Deloitte & touche llp

According to data provided by the American Hospital Association, Medical Center Health System (MCHS) contributed over $251 million in salaries, wages and benefits and infused over $605 million in purchases and expenditures into the state economy during fiscal year 2012. In addition, MCHS provided 1,739 local hospital part-time and full-time jobs in fiscal year 2012 with a statewide impact on 3,897 jobs, according to the Bureau of Labor Statistics.

VALUES

LEADERSHiP STATEMENT OF OPERATiONS

BOARd OF dIRECTORS

IntegrityCustomer CenteredAccountabilityRespectExcellence

ICARE

100%

75.3%

7.2%17.3%0.2%

FIScAL YEAr 2011 Statement of operations

Sources of our Revenues

Patient Receipts $ 202,834,699 Investment Income $ 321,838 Tax Revenues $ 33,397,074 Other Income $ 13,799,036

total Revenues $ 250,352,647

100%

81.0%

5.5%13.3%

0.1%

Uses of our Revenues

Salaries & Benefits $ 135,402,471 Supplies, Utilities & Other $ 64,139,981 Med Specialist Fees $ 2,816,467 Purchased Services $ 27,596,659 Depreciation & Interest $ 21,824,390

total expenses $ 251,779,968

100%

53.8%

11.0%8.7%

1.1%25.5%

FIScAL YEAr 2012 Statement of operations

Sources of our Revenues

Patient Receipts $ 195,528,148 Investment Income $ 498,176 Tax Revenues $ 44,940,213 Other Income $ 18,657,747

total Revenues $ 259,624,284

Change in Net Assets $ 4,045,444 $ (1,427,321)

Uses of our Revenues

Salaries & Benefits $ 134,111,639 Supplies, Utilities & Other $ 62,839,888 Med Specialist Fees $ 2,447,334 Purchased Services $ 29,582,023 Depreciation & Interest $ 26,597,956

total expenses $ 255,578,840

100%

52.5%

11.6%10.4%

1.0%24.6%

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197019651960195519501945 1975 1980 1985 1990 1995 2000 2005 2010 2015

1949Ector County

Hospital opens with 85 beds

1970First cardiac

catheterization performed

1978-1979Selected as

teaching hospital for TexasTech

University Health Sciences Center

1985 20-Bed

Special Care Nursery opened

1975-1977New 7-story

Central Tower added increasing bed size to 376

2003Introduction of Bariatric Surgery

2006Opening of the

West Texas Cancer Center

at MCH

1989Creation of

Ector County Hospital District

1996-1997Completion of $20.3

million Phase I Expansion Project

including construction of the East Wing,

expanded Coronary Care Unit (CCU), Telemetry Unit and two additional

floors added to the Central Tower

1953 Women's Hospital Auxiliary formed by Sue Neas with 127 Charter Members

1954Addition of 75 more beds to become 160 licensed beds

19647-story West Tower opened increasing

bed capacity to 353

1973First

open heart surgery

performed

1988 Affiliation

with Children’s Miracle Network Telethon

1995 Opening of MCH Family Health Clinic

2010 Opening of the Clinics at Walmart

East & West locations

Opening of the Center for Health

& Wellness

Creation of Medical Center Health System

2001 MCH Diabetes Center opens

Opening of Ann Roden

Deaderick Cardiac & Pulmonary Rehabilitation

Center

2004 Opening of the

Dr. Wheatley Stewart Medical Pavilion

2011Creation of theMedical Center Health System

Foundation

da Vinci Surgical System added to Operating Room

2012Opening ofthe Center for Women & Infants

Opening of Urgent Care at MCH Campus

Opening of MCH Sleep Center

PROGRAM HiGHLiGHTS

MCH CEnTER FOR WOMEn & InFAnTSMCH CEnTER FOR HEALTH & WELLnESS

The state-of-the-art Center for Women & Infants opened its doors in January 2012. With over 1,500 babies delivered in its first year of operation, the Center for Women & Infants provides spacious, private rooms to accommodate large families. We also cared for hundreds of sick and premature infants in our all-private Neonatal Intensive Care Unit (NICU) rooms. The unique NICU setting provides parents an opportunity to stay in the same room with their babies. This arrangement helps to promote better bonding between parents and baby while improving development, healing and growth for our most fragile newborns.

When MCHS broke ground on the Center for Health & Wellness in 2009, the area around Highway 191 and Faudree Road was undeveloped with little activity. Since opening the center in October 2010, the area is booming with new businesses continuously opening and under construction. With the growth in the area, this medically integrated health and fitness complex met the demand for very important services. This one-of-a-kind facility demonstrates a truly multi-disciplinary approach to healthcare, combining outpatient medical and diagnostic services, rehabilitation and fitness into one location.

ThE cENTEr FOr WOMEN & INFANTS INcLUdES: · 12 Labor & Delivery Rooms

· 30 Private Mother-Baby Rooms

· 20 Newborn Nursery Beds

· 30 Private NICU Rooms

· 3 Cesarean Section Suites

· Ronald McDonald Family Rooms

ThE cENTEr FOr hEALTh & WELLNESS OFFErS: · Cardiac & Pulmonary Rehabilitation

· Diabetes Center

· Imaging and Mammography

· Laboratory

· MCH Laser & Wellness Center

· Mission Fitness

· Physical Therapy and Sports Medicine

· Physician Offices

· Urgent Care

cOMINg SOON · Veterans Affairs Permian Basin Community Based Outpatient Clinic – scheduled to open March 2014

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URGEnT CARE

PROGRAM HiGHLiGHTS

When we opened the ProCare Clinics at Walmart we did so with one important goal in mind: to improve access to affordable healthcare for the families of the Permian Basin. We’ve made great strides in achieving this goal and now have two convenient locations spanning Odessa. The clinics have become a dependable and valuable resource for families in need of routine medical care. The in-store clinic strategy is a prime example of how Medical Center Health System is working to expand our healthcare delivery models and bring quality healthcare services to our community.

Thanks to a generous contribution from an Odessa family, MCHS renovated space on the second floor of Medical Center Hospital to create The Bunkhouse, a place for TTUHSC students and residents to socialize, take a break from schedules, complete paperwork and study.

MCHS has also worked to renovate space on Medical Center Hospital’s seventh floor for a new Simulation Center, scheduled to open July 2013. TTUHSC residents and nursing students as well as MCHS employees will use this Simulation Center. Renovations are also taking place to create a TTUHSC teaching/patient care unit on the seventh floor of MCH, scheduled to open in October 2013.

Medical Center Health System has partnered with Texas Tech University Health Sciences Center (TTUHSC) since 1974 to implement a number of residency programs including Family Practice, Obstetrics & Gynecology and Internal Medicine along with fellowship programs including Geriatric Medicine and Hospitalist. MCHS has also worked with TTUHSC Third and Fourth Year Medical Students since the program was implemented in 2009.

The new regional health center, developed in collaboration with the Veterans Affairs Administration, will be solely dedicated to meeting the medical needs of more than 8,000 military veterans who call the Permian Basin home. The new center will feature four Program of Assertive Community Treatment (PACT) Teams to help manage patient care. PACT uses a comprehensive community-based team approach to providing care and treatment. Each team will be led by a physician and will include a nurse, pharmacist, social worker and health technician.

The outpatient center will feature a full-service eye clinic, an audiology center and physical therapy, as well as nutrition, prosthetics and home-based primary care services. The clinic will also provide tele-health services, which uses video conferencing to provide physician and specialist consultations to veterans living in outlying areas.

The Veterans Affairs Permian Basin Community Based Outpatient Clinic is slated to open in March 2014.

In November 2012, Medical Center Health System (MCHS) held the groundbreaking for an all-new 10,000 square foot Veterans Affairs Permian Basin Community Based Outpatient Clinic, to be located on the MCH Center for Health & Wellness campus.

As the economy in Ector County continues to boom, so has our need to find new ways to serve our ever-growing population. One solution that has been extremely successful in meeting this challenge is the development of our Urgent Care centers.

In February 2012, we officially opened the doors to our second center located at the MCH Campus across from Medical Center Hospital. Working in tandem with Urgent Care at the Center for Health & Wellness, we are able to deliver more options to patients in need of sub-acute care than ever before – and we have plans to expand this delivery model even further in the years to come.

One of the greatest benefits to using our Urgent Care centers is that it allows area residents to access healthcare outside of the acute-care hospital setting. This not only increases our ability to bring care closer to where we live and work, it also helps our patients avoid unwarranted visits to area emergency rooms, saving time and unnecessary medical costs.

CLInICS AT WALMART – EAST & WEST TEXAS TECH UnIVERSITY HEALTH SCIEnCES CEnTER

VETERAnS AFFAIRS CLInIC

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PROGRAM HiGHLiGHTS AccREDiTATiONS

CARECHEX®

QUALITY ACHIEVEMEnTSMEdICAL CEnTER HEALTH SYSTEM FOUndATIOn

EMERGEnCY ROOM/TRAUMA GROWTH

At Medical Center Health System, quality is more than a guiding principle; it is the foundation upon which our entire healthcare network is built. This is why we are proud to share the many quality accreditations, certifications and achievements awarded to our network by the nation’s leading accreditation programs.

Comparion® CareChex Hospital Quality Ratings 2013 recognizes Medical Center Hospital as Top 10% in key service lines including:

2013 Medical excellence Awards

State• Cancer Care

• Joint Replacement • Trauma Care

national• Cancer Care

• Gall Bladder Removal

• Joint Replacement

• Orthopedic Care

• Trauma Care • Women’s Health

2013 patient Safety Awards

State• Cancer Care

• Heart Failure Treatment

• Hip Fracture Repair

• Neurological Care

• Orthopedic Care

• Stroke Care • Trauma Care

national • Heart Failure Treatment

• Hip Fracture Repair

• Orthopedic Care

• Stroke Care • Trauma Care Awarded by CareChex® A Quality Rating Service of Comparion® Medical Analytics, Inc.

emergency Room Visits5 Year Historical trending

Medical Center Hospital (MCH) is home to the region’s lead trauma center. As such, we’ve had significant year-over-year increases in Emergency Department visits for four out of the last five years. In FY2012 MCH documented a record number of Emergency Department visits with 51,487 individuals treated compared to 49,469 during the previous fiscal year.

Over the last year, the MCHS Foundation received $586,793 in contributions to support programs such as:

• Friendship Home • Children’s Miracle Network Hospitals • Patient Navigation Program • Friends of Nursing

MCHS Foundation Mission “Through philanthropy and volunteerism, the Medical Center Health System Foundation supports the mission of Medical Center Health System toward providing quality healthcare, education, and outreach to all residents of the Permian Basin.”

MCHS Foundation Board of Directors Toby Eoff, President David Boutin, Vice President Delma Abalos, Secretary and Treasurer Wayne Boring, CMN Council Chair Robert Chappell, M.D., Member-at-Large Pat Canty Frank Deaderick Reneé Earls Kirk Edwards Mike George Dan Hollman Jack Wood

The Medical Center Health System (MCHS) Foundation plays an important role in transforming annual gifts from our community into programs that provide support and assistance to our patients and their families. The MCHS Foundation fundraising efforts help our community and our system by securing capitol for the purchase of new equipment, implementing programs, and providing outreach to patients and their families.

American College of Radiology: Breast Imaging Center of Excellence

American Society of Metabolic and Bariatric Surgery – Bariatric Surgery Center of Excellence® Designation®

Hospital Accreditation – The Joint Commission Seal of Approval™ for accreditation by demonstrating compliance with The Joint Commission’s national standards for healthcare quality and safety in hospitals.

Get With The Guidelines – 2012 Stroke Gold Plus Performance Achievement Award with Target: Stroke Honor Roll by the American Heart Association and American Stroke Association

Society of Chest Pain Centers – Chest Pain Center Accreditation with PCI

Cardiac and Pulmonary Rehabilitation Certification by American Association of Cardiovascular and Pulmonary Rehabilitation (AACVPR) for commitment to improving the quality of life by enhancing standards of care

Recognized for meeting National Standards for Diabetes Self Management Education by the American Diabetes Association

Cancer Program Designated Community Hospital Program by the American College of Surgeons

MCH Sleep Center – Accredited by the American Academy of Sleep Medicine

The Joint Commission Seal of Approval™: Stroke program – Primary Stroke Center Diabetes program – Advanced Certification in Inpatient Diabetes Bariatric program – Certified Bariatric Surgery Center

American College of Radiology Accreditation in: Ct (Computed tomography) Mammography MRI (Magnetic Resonance Imaging) nuclear Medicine ultrasound

47,283

48,305 48,270

49,469

51,487

47,283

48,305 48,270

49,469

51,487

45,000

46,000

47,000

48,000

49,000

50,000

51,000

52,000

FY 2008 FY 2009 FY 2010 FY 2011 FY 2012

500 W. 4th Street odessa, tX 79761

www.mchodessa.com

2012 ANNUAL REPORT