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MOVINGAHEAD

FORWARDLOOKING

Phelps Memorial Hospital Center Report to the Community 2014

A Grand Vision Takes Shape at Phelps

ompleted in 2014, Phelps’ groundbreaking SurgiCenter has been providing patients with extraordinary surgical experiences in a state-of-the-art environment. It is unique in New York State as the only facility of its kind to accommodate

both inpatient and outpatient procedures. It is also one of only two surgical suites in the state to integrate the STERIS RealView Visual Workflow Management System, which keeps family members and medical staff apprised of a patient’s status in real-time throughout the surgical experience.

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Your doctors are at the heart and soul of what makes Phelps the finest hospital in Westchester County.“ ”

At the SurgiCenter ribbon cutting, left to right: Mary McDermott, Sr. VP, Patient Care Services & CNO; Richard Sinni, Chair, Board of Directors; Daniel Blum, President & CEO; Kathleen Scherf, Nursing Director, Surgical Services; Avraham Merav, MD, Medical Director, Surgical Services; Richard Peress, MD, Director, Department of Surgery; Lawrence Faltz, MD, Chief Medical Officer; and Kerry Pisano, VP, Support Services.

The new SurgiCenter at Phelps Memorial Hospital Center is open!

The physical space in the SurgiCenter is completely different from a typical hospital. Natural materials and nature-inspired design elements are generously used throughout the space, creating a warm and comfortable environment.

The first patient to experience the benefits of the new facility was Phelps family medicine physician Lawrence Goldstein, MD, who had hernia surgery performed by Robert Raniolo, MD, and Michael Weitzen, MD. According to Dr. Goldstein, “Phelps certainly has a first-class facility to match its first-class staff!

They were phenomenal — very warm, personable, professional and caring.” He also mentioned how

welcoming his admission/recovery room was when he arrived and what a peaceful place it was to sleep after his procedure.

Lawrence Goldstein, MD, the SurgiCenter’s first patient with surgeon Robert Raniolo, MD, and nursing director Kathleen Scherf

Post-Anesthesia Care Unit

Nurses Station

Outpatient visits 421,000Phelps Facts

Emergency Department visits

27,000Phelps Facts

A Grand Vision Takes Shape at PhelpsPhelps has already begun work on the next phase of its master facility plan — a grand new main lobby. When completed, over 1,600 daily visitors will enter through this centrally located 7,000-square-foot space, featuring a welcoming lobby, comfortable seating, a coffee bar and an efficient new admitting area. Patients will appreciate the weather-protected drop-off lane at the new entrance.

Additionally, Phelps is beginning initial work on the construction of a conveniently located and expanded MRI facility with its own outside entrance. The suite will feature two MRI machines, facilitating scheduling and availability.

Plans are also moving forward on a private patient room initiative that will provide an ideal patient experience with regard to comfort, privacy and quality care for all levels of medical conditions.

Lobby Seating Area and Coffee Shop Information Desk in New Lobby

Outside View of New Lobby Entrance

I am extremely grateful to your Emergency Department staff and to Phelps Memorial Hospital Center for your excellent care and my excellent treatment.“ ”

Campaign Cabinet (in formation)Aubrey Hawes – Co-ChairRichard Peress, MD – Co-ChairArthur CohenJim GoldsmithKatherine MackieTed McGrathPeter Zegarelli, DDS

Looking Forward/Moving Ahead – The Campaign for Phelpsver the past year, The Campaign for Phelps Memorial Hospital continued to “move ahead,” inspiring many generous individuals, businesses and foundations

to invest in the future of this important community resource. Through the dedication and hard work of the Campaign Cabinet and its Co-Chairs Aubrey Hawes and Dr. Richard Peress, Phelps has been the recipient of an extraordinary level of philanthropy, raising almost $6.4 million toward the Campaign’s initial $25 million goal.

The opening of the SurgiCenter provided our first opportunity to recognize donors who had contributed to the campaign. We are especially thankful to Gerald and Millicent Citron for their wonderful generosity and for whom we named the Center’s largest operating room in grateful appreciation.

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Campaign DonorsAnonymous (3)Pablito and Linda AlmiraJohn and Elzeria BarnesDaniel and Tracey BlumBard and Barbara BunaesGerald and Millicent CitronEva Marie Dahling

Earle and Barbara EllefsenAubrey and Sylvia HawesFred and Helen HerlitzHarry A. Jacobs, Jr.Robert R. Lane and Janine GuercioTed and Barbara McGrathMary L. Melvin

William O. and Ellen Melvin, Jr. Andrew and Mary Beth Merryman Richard Peress, MD, and Robin Peress Phelps AuxiliaryKeith F. Safian and Kathy GilbertMichael and Judith SullivanPeter Zegarelli, DDS, and Carol Zegarelli

Number of births1,012

Phelps Facts

$11.2 MCharity Care

Phelps Facts

The next phase of the Master Plan

…I delivered a beautiful, healthy baby girl at Phelps Memorial Hospital Center. …From the moment I arrived, all the nurses and doctors were so personal,

patient, kind, warm, encouraging, knowledgeable, and informative! I commend Phelps for employing such top-notch, high-quality staff.

I have already told everyone about the positive experience I had and will be recommending my doctor and Phelps to all of my friends and family…

– A New Mom

“”

helps Medical Associates, the hospital’s primary and specialty care medical group, has grown steadily since it was established in 2011. At the end of 2014, the group had 37 physicians representing 9 specialties, 4 nurse practitioners, 1 neuropsychologist,

and 127 employees in 15 locations throughout our communities.

Additional physicians will be joining Phelps Medical Associates in the coming months, including Anesh Badiwala, MD, who is a member of the inaugural class of the NYMC Phelps Family Medicine Residency Program. He will complete the third and final year of his residency in June. “Dr. Badiwala fulfills the vision of the residency program to cultivate the best and brightest family physician leaders for our community,” says Shantie Harkisoon, MD, residency program director. “Westchester is fortunate to be gaining such a fine physician.”

PPhelps Medical Associates

Richard Becker, MD, joined Phelps as Vice President- Physician Administrator early in 2014. A board-certified cardiologist who formerly practiced in Cortlandt Manor, Dr. Becker earned his medical degree at New York Medical College and completed a

fellowship in cardiology at New York Medical College/Westchester Medical Center. Dr. Becker oversees the clinical aspects of Phelps Medical Associates, including quality of care and patient satisfaction, as well as the recruitment of new physicians.

Phelps Medical Associates LeadershipJake Maijala, SPHR, FACHE, was appointed Vice President of Human Resources in the spring of 2014. He had previously served as Vice President, Human Resources at Cortland Regional Medical Center in Cortland, NY. Born in Finland, Mr. Maijala holds a master’s

degree in psychology from the University of Jyväskylä and an MBA from SUNY-Empire State College. In addition to his responsibilities as Phelps’ Human Resources VP, Mr. Maijala is also responsible for the business aspects of Phelps Medical Associates.

Number of Physicians

521Number of Employees

1,753Phelps Facts

The Joint Commission’s America’s Hospitals:

Improving Quality and Safety Annual Report 2014 listed

Phelps as a top performer based on 44 key quality measures.

Phelps Facts

Anesh Badiwala, MD

Thank you for your vigilance and care of my mother when she entered hospice care… you were all so gentle, respectful, warm and professional at the same time.“ ”

n December, Phelps officially became part of North Shore-LIJ Health System, and we look forward to the benefits that the hospital and our community will realize from this relationship. As expressed by Michael Dowling, North Shore-LIJ President

& CEO, the system’s goal is “to be better tomorrow than we are today,” a sentiment that Phelps supports with regard to the hospital and the health of everyone who comes to us for care. As always, we rely on gifts from the community to support our efforts to provide new services and advanced technology. Please be assured that when you make a gift to Phelps, it will be used for Phelps, your community hospital.

IPhelps is part of North Shore-LIJ Health System

Phelps Memorial Hospital Center’s 27th Annual Champagne Ball, held Saturday, November 8, 2014 at Trump National Golf Club in Briarcliff Manor, raised

$440,000 in support of the hospital’s services for the community. A surprise guest was John Sebastian, a founder of The Lovin’ Spoonful, who delighted fans by performing songs he and his band made famous in the 1960s.

The evening’s honoree was Lawrence Faltz, MD, of Larchmont, Senior Vice President for Medical Affairs and Chief Medical Officer at Phelps, and Clinical Professor of Medicine at New York Medical College. The gala’s theme, “Looking Forward,” referred to the ongoing growth of hospital facilities and services, which continues to benefit from Dr. Faltz’s leadership.

Ball guests enjoyed a cocktail reception, dinner and dancing, and a silent auction. Kudos to co-chairs Pamela and Paul Terracciano, MD, of Briarcliff Manor, and Laurie and Franklin Zimmerman, MD, of Mt. Kisco, for orchestrating an outstanding event.

Participants in the Ball’s Fund-A-Cause auction contributed to the expansion and updating of the hospital’s outpatient cardiovascular laboratory.

The 11th Annual Phelps Classic was held Monday, June 9th at Sleepy Hollow Country Club, one of the most picturesque country clubs in America. Co-chaired by Bill and Ellen Melvin of Scarborough and Dr. John and Allison Robbins of Manhattan, the Phelps Classic is one of the hospital’s largest and most popular fundraising events. The event raised more than $120,000, and proceeds have been dedicated to facility improvements that will enhance patient comfort and care. “An Evening of Food, Wine, Martinis and Fine Friends” took place on Friday, April 25 at Trump National Golf Club. Attendees sampled a wide range of Chardonnays, Sauvignon Blancs, Cabernets, Pinot Noirs, and Red Zinfandels from the South America region. The relaxed atmosphere made it a perfect occasion for neighbors and friends to get together and enjoy trying new wines while supporting their community hospital. The event raised $25,000 to benefit Phelps!

Phelps Events

Sylvia and Aubrey Hawes

John Sebastian

Daniel Blum, Richard J. Sinni and Lawrence Faltz, MD

Bill and Ellen Melvin

Phelps News – 2014Urologists add new dimension to treating kidney disease at Phelps. Renowned urologist Michael Grasso, MD, and colleagues Andrew Fishman, MD, and Christopher Dixon, MD, have brought broad expertise in the performance of leading-edge procedures for the treatment of kidney disease to Phelps. They are experienced in performing the most advanced laparoscopic and minimally invasive reconstructive procedures, providing a level of care for renal disease that is rarely available at community hospitals. Dr. Grasso’s prominence in the urology field is demonstrated by his status as a teacher of advanced urological procedures at the annual meetings of the American Urologic Association and the European Urologic Association.

The Joint Commission’s America’s Hospitals: Improving Quality and Safety Annual Report 2014 listed Phelps as a top performer on key quality measures, including heart attack, heart failure, pneumonia and surgical care.

The Phelps Cancer Program, accredited with commendation by the Commission on Cancer of the American College of Surgeons, continues to serve the community by providing cancer diagnosis and treatment based on the latest guidelines. Our Oncology Patient Navigator assists patients in accessing appropriate care in a timely manner.

A clinical pharmacist joined the staff to educate patients about existing and newly prescribed medications – especially “high alert” medications such as anticoagulants and cardiac drugs.

Instead of three meals a day, the new “Room Service” program lets patients select from a restaurant-style menu and eat when they’re hungry – any time from 6:30 am – 6:30 pm.

The American Heart/Stroke Association placed Phelps’ Stroke Center on its Target: Stroke Honor Roll for reducing the time between hospital arrival and treatment with the clotbuster tPA. For the fifth year, Phelps received the Get With the Guidelines – Stroke Gold Plus Quality Achievement Award.

Phelps embarked on the journey to become a “Baby-Friendly Hospital,” a World Health Organization and UNICEF initiative to enhance maternity care and support breastfeeding.

Phelps became the first hospital in the region to install the GE Invenia Automated Breast Ultrasound System (ABUS), the latest ultrasound screening technology for women with dense breast tissue.

The Phelps Hyperbaric Medicine Center received Undersea and Hyperbaric Medical Society (UHMS) accreditation, granted to hyperbaric facilities that demonstrate commitment to patient care and facility safety.

Phelps nurses advanced in the NICHE (Nurses Improving Care for Healthsystem Elders) program to Level III NICHE status for employing best practices in caring for older adults.

The new Balance Center offers comprehensive testing and rehabilitation for individuals who have problems with dizziness and imbalance.

Phelps Memorial Hospital Center Years Ended December 31, 2014, 2013 and 2012

2014 2013 2012Unrestricted revenue and (Unaudited) other support: Net patient service revenue $220,045,000 $212,759,000 $203,358,000 Other revenue 10,304,000 10,894,000 12,058,000

Total revenue and other support 230,349,000 223,653,000 215,416,000 Expenses: Salaries and employee benefits 150,354,000 141,005,000 132,036,000 Supplies and expenses 66,959,000 67,821,000 64,842,000 Depreciation 11,849,000 10,838,000 10,675,000 Interest 729,000 968,000 1,074,000 Total expenses 229,891,000 220,632,000 208,627,000 Income from operations 458,000 3,021,000 6,789,000 Nonoperating gains: 2,164,000 1,769,000 1,591,000 Excess of revenue and other support over expenses 2,622,000 4,790,000 8,380,000 Other changes in unrestricted net assets: Change in net unrealized gains (losses) on other than trading securities 695,000 1,198,000 615,000 Net assets released from restrictions for purchase of equipment 904,000 717,000 179,000 Increase in unrestricted net assets $4,221,000 $6,705,000 $9,174,000

Charity Care (for uninsured and $29,934,0000 $26,214,000 $24,400,000 under-insured patients) and community benefits (maintaining services to meet community needs, despite costs to the hospital)

Fundraising Revenue Dollars Raised

$7,000,000

$6,000,000

$5,000,000

$4,000,000

$3,000,000

$2,000,000

$1,000,000

0

$1,961,000$2,182,000

2012

$4,705,000

2014

$6,325,000

2013

Development Revenue Sources 2014 Total Raised: $4,705,000

Grants$228,000 (5%)

Events$516,000 (11%)

Annual Support$1,380,000 (29%)

Capital Campaign$2,581,000 (55%)

2011

Financials

Board of Directors (2014-2015) Richard J. Sinni ChairSean F.X. Dugan Vice ChairAndrew Merryman Vice ChairRebecca Srole TreasurerHsin Cheng Chao, MD SecretaryDaniel Blum PresidentKeith F. Safian, FACHE President

Betty Albertson John Barnes Bard E. Bunaes Sanda Carniciu, MD David W. Coulam Anthony C. Ferreri Mark Frederich Jim Goldsmith Richard D. Goldstein Aubrey Hawes Christy Joyce, MD Glenn Kaufman Fred Mascia Kenneth J. Miller Ralph A. Nappi Richard Peress, MD Diane Potter Louis Wachtel Russell Watson Franklin H. Zimmerman, MD

Development CommitteeKatherine J. Mackie Co-ChairJim Goldsmith Co-ChairBard E. Bunaes Arthur Cohen Mark Frederich Lianne Hales-Dugan Aubrey Hawes Lisina Hoch Paul Mazzilli Ted McGrath William O. Melvin, Jr. Caryl Plunkett Pamela Terracciano Drusilla van Hengel Craig Zalvan, MD Keith Safian, FACHE Daniel Blum

Medical Staff OfficersFranklin Zimmerman, MD PresidentArno Housman, MD Vice PresidentFrank Foto, MD SecretaryJay Weinberger, MD Treasurer

Medical BoardJack Hershman, MD Madhavi Kancharla, MD David Kauvar, MD Avraham Merav, MD L. Mark Russakoff, MD

Senior ManagementKeith F. Safian, FACHE President and CEO, through 11/2014

Daniel BlumPresident and CEO

Richard Becker, MDVice President and Phelps Medical Associates Medical Director

Vincent DeSantis, CPAVice President, Finance and CFO

Eileen Egan, RN, Esq.Assistant Vice President HIPAA, Risk, Compliance and Governance

Lawrence L. Faltz, MDSenior Vice President for Medical Staff andChief Medical Officer

Leonard B. FogelVice President,Business Development and Contracting

Janet Goldberg, RN, BSNAssistant Vice President,Behavioral Health and Nursing Operations

Robert R. LaneVice President, Development and External Affairs

Jake MaijalaVice President,Human Resources and Medical Group Operations

Mary McDermott, MSN, RNSenior Vice President,Patient Care Services andChief Nursing Officer

Kerry L. PisanoVice President, Support Services

William ReiferVice President, Quality and Case Management

Golf CommitteeWilliam and Ellen Melvin Dr. John and Allison Robbins Jim and Barbara Casey Marissa Coratti John and Connie Curran Tom and Alice Marie Hales Marty Ketels Robert R. Lane Paul Mazzilli and Sharon Pickett

Ball CommitteeDr. Paul and Pam Terracciano Dr. Franklin and Laurie Zimmerman Marissa Coratti Tom and Alice Marie Hales Dr. Jack and Ingrid Hershman Robert R. Lane Ted and Barbara McGrath Andrew and Mary Beth Merryman Dr. Richard and Robyn Peress Sean Dugan and Lianne Hales-Dugan Richard and Reina Sinni Nathan and Elaine Wasserman

Wine CommitteeNick Antonaccio David Beckwith Marissa Coratti Marty Ketels Robert R. Lane

Dear Friends,

We are pleased to present our Report to the Community, with highlights from the past year as well as a preview of impressive activities planned for 2015.

During 2014, the Phelps Board spent considerable time and effort to fulfill a key element of our strategic plan – an affiliation with a large, stable and world-renowned health system. On January 1, 2015, Phelps became part of North Shore- LIJ Health System, a highly regarded academic healthcare organization and the state’s

largest integrated healthcare provider.

North Shore-LIJ has committed to work with Phelps to assure continuity and enhancement of the broad array of services we provide, ensuring our stability well into the future. Under the terms of our affiliation agreement, Phelps will endure as an acute care hospital, and all philanthropic dollars raised at Phelps will benefit our community.

Exciting things are happening at Phelps. Our extraordinary new SurgiCenter opened to exceptional praise by patients, families, staff and doctors. Work has also begun on construction of a new main lobby, which will provide a modern, welcoming entrance to the hospital. More importantly, we are building a new MRI center that will provide a wider range of diagnostic and treatment options for patients.

We thank you for your exceptional support. In 2014, $4.7 million was raised to advance Phelps’ patient care services. Your philanthropic giving and enthu-siastic participation in our fundraising events help ensure a bright future for Phelps in the ever-changing world of healthcare.

Thank you again for your continued investment in the future of Phelps!

Best wishes for a healthy and enjoyable year.

Sincerely,

Richard J. Sinni Daniel BlumChair, Board of Directors President and CEO

Richard J. Sinni

Daniel Blum

Letter from Board Chair and President & CEO

Phelps Memorial Hospital Center

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Phelps Facts

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99Inpatients surveyed ranked Phelps in the th percentile among peer hospitals.