2011 John Knox Village Annual Report

8/3/2019 2011 John Knox Village Annual Report

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Celebrating thisanniversary brought to mindthe people who were here in1970 at the beginning of

John Knox Village.Thesebold pioneers looked forward

with hope and optimism. Iam proud that even 40 yearslater we are still pioneers,

looking forward withoptimism and seizing newopportunities to serve.

What do the numbers show us?As the CEO, I look at numbers every day. Theyre

exciting because they show where we are now,and justhow far we have come since 1970. We now serve more seniors than ever in our history

(around 6,000 per year), through our continuing careretirement community, home health services,hospicecare, private duty care and in-home technologyservices. We touch the lives of thousands morethrough our ambulance services,restaurants, supportgroups,the Auxiliary shops and The Pavilion.

We employ more associates (now nearly 1,100) thanwe ever have.

We bring in more revenue than ever: $65.6 millionfor Fiscal Year 2011.

Most importantly, I believe we provide people withbetter services, offer more choices and have the best careoptions we have ever had.And making all that runsmoothly is a committed group of associates who arededicated to building the kind of relationships that areimportant to us at John Knox Village.

John Knox Village MissionTo enrich the lives of older adults through community living.

EnrichingLives,BuildingCommunity.

How do we see past the numbers?We take our mission very seriously.The numbers are

important,and we manage our business by watching thenumbers carefully to ensure that we have the funds weneed to carry out our mission. But we always rememberthat our mission focuses on people and lives. It drivesevery decision that we make. It helps lead us when we areat a crossroads.It is the reason we are here.

This commitment to enriching lives and buildingcommunity for older adults leads us to watch thenumbers and make decisions carefully so that we cancontinue to serve the growing number of seniors who willwant and need services in the future.

We are a people business. Our job is both to watchthe numbers andto recognize that our work affects thelives of real people those who live here,those who workhere and those we serve.

Daniel D.Rexroth,President and CEO

L E T T E R F R O M T H E P R E S I D E N T

SEEING BEYOND THE NUMBERSJohn Knox Village turned 40 in 2010. Sure, 40 is just a number. But numbers areimportant; they help us gain perspective and see a bigger picture. However, to besuccessful, its also important to look beyond the numbers and remember that the bigger

picture includes real people.

John Knox VillageAnnual Report 2011


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TOTAL FISCAL YEA2011 OPERATING

REVENUE

Each yearthe Board ofDirectors setsthe objectivesfor the VillagesPresident/CEO DanRexroth.Theseobjectives

function both as a set of measurablegoals to help Dan see how he isperforming against expectations as

well as a blueprint for the rest of theorganization. Each associate usesthese goals and those of theirsupervisor as a guide for settingtheir own goals.

The management of John KnoxVillage is a multifaceted undertakingand ranges from providing qualityservices and healthcare to assuringthe safety of our residents. Whatsmore, we also need to manage our

growth and financial performance.

All of these responsibilities havemeasurable outcomes associated withthem that are incorporated intoDans goals. The end result ofmeeting these goals is the fulfillmentof our vision to Be the leaderamong senior living communities inthe Greater Kansas City area.

By focusing on quantitativeresults, we can assure accountabilityat all levels of the organization. Withaccountability comes performance

and the assurance that we areproviding the people we serve withcare that enriches their lives andbuilds a sense of community.

Dr. George A. PagelsChair, John Knox Village

Board of Directors

Where do the dollars come fromthat allow us to do all that we do?Watch for this chart at the beginninof each section of this report to see

how each business unit contributesto the bottom line.

Village Care Center: 35% Community Health Services: 15% Valley View: 10% Senior Living: 30% Additional Sources of Revenue: 10

Throughout the last 40 years(1970-2010),John Knox Village hasgrown from one building to morethan 400 acres full of buildings,ametro-wide array of services and,most importantly, a rich and diversecommunity of people.

This has been a year to celebrate40 years of service to seniors. In thepast, our slogan said Everyone knowssomeone at John Knox Village.

Today we could say, Everyone knowssomeone whos been touched by JohnKnox Village.

That is more true now than everbefore; with all the services theVillage provides, in 40 years we havecared for and built relationships withtens of thousands of seniors and theirfamilies.

At John Knox Village,the peoplewe serve are much more than justnumbers,and this report is filled withtheir stories.We invite you to meetthe people who live here, who workhere, and who have benefited fromour services.That way you can see for

yourself what the power of numbers

can accomplish.

$65,606,070FY10 = $62,678,220

40 Years of EnrichingThousands of Lives

L E T T E R F R O M T H E B O A R D C H A I R

WHY THE NUMBERS MATTER

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New Look, Name for VillageCare Center Rehab Unit

The patient rooms in the Village Care Centers newly-renamed VillageRehabilitation Unit (formerly the Post-Acute Care Unit) now havebeautiful new flooring, countertops, paint and furniture. In addition, theyhave made updates to the units work areas and common spaces. This partof the Care Center provides care for patients who may need additional

time to recover or who need therapy services after a hospital stay orsurgery.The improvements are part of an overall effort to enhance patientsatisfaction by giving the area the updated visual appeal that todays healthcare consumers expect; the name was changed to help people betterunderstand the types of services available.

The Village Care Centerrepresents 35 percent oftotal Village revenues,amounting to $22.4 million.

What a WOW!Daily documentation for

patients medical records is goingelectronic at the Village CareCenter. In addition to its cosmetic

updates, the Village RehabilitationUnit now has computer

workstations for nurses and CNAsto do their daily charting. Nursesare now rolling WOWs(workstations on wheels) up and

down the hallways, and the CNAsare using wall-mounted monitors tochart patients activities of dailyliving.

The Care Center is also

working to convert each of itsmedical record forms intointeractive electronic forms to helpnurses become more efficient andto enhance record-keeping.

A Note from the InsideI took a peek at the newly

decorated rooms in the VillageRehab Unit, and they arebeautiful! It looks brand new.I think word will get around asnew residents come to recoverfrom surgery and for rehab. Thecommunity will be thrilled with

the new accommodations.Debby Brown,

Care Neighborhood Assistant

35%

VILLAGECARECENTER


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John Knox Village is pleased toannounce the opening of VillageHouse, an exciting extension to theVillage Care Centers array ofservices. Village House was createdto meet the unique needs hospicepatients may face when theirsymptoms can no longer be

managed at home.Through aphysicians order, Village Houseprovides short-term inpatienthospice care. The 24-hourspecialized nursing services andcare provided through VillageHouse are available to Villageresidents as well those who live in

Announcing: Village House

JKV Auxiliary Donates $25,000Throughout the past 40 years, the John Knox

Village Auxiliary has donated money to purchase anumber of significant items for John Knox Village,including ambulances, busses, hospital beds andelectric door openers. The organizations most recentgift was a donation of $25,000 to the JKV Foundationto fund a Village House hallway that will be dedicatedto the Auxiliary.

Jeri Carter, outgoing Auxiliary secretary, and WilmaBilyeu, outgoing Auxiliary treasurer, present a check forthe Auxiliarys Village House donation to FoundationPresident Bill Bergosh.

Lees Summit and the greatermetropolitan community.

Located in a specially-designed,

home-like environment at theVillage Care Center, patients andfamilies have a peaceful place tospend time together. The care atVillage House is directed by theVillage Care Center, and patientsare seen through a contractualagreement with Village Hospice.Since opening in February 2011,the first 10 suites have seen a steadystream of patients, clearlydemonstrating the need in Eastern

Jackson County for a facility thatprovides these types of services.

The Village Care Center andVillage Hospice, along with a mul-tidisciplinary team from across theVillage, worked for months tolaunch the program. Constructionof this unit was made possiblethrough donations from communityindividuals, residents and associates.

The John Knox VillageFoundation is currently raisingfunds for a second hallway. Fortynew associates were hired for thefirst phase, and the second phase

will require a similar number of newassociates. Village House isexpected to add $500,000 to thebottom line over the next year.


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By adopting a more aggressivemarketing strategy that emphasizesmaking concrete connections withphysicians and hospitals, VillageHome Health closed Fiscal Year2011 by breaking records andstarted the new financial yearfocused on growth and quality care.

The home health team alsomade several operational changesduring the past fiscal year, includingrestructuring caseloads in the LeesSummit and Kansas offices toprovide more consistent contactbetween the same nurses and

patients. These simple changes haveled to improved continuity of care,better outcomes, and happierpatients and families.

The organization also chose tochange its name from the John KnoxVillage Home Health Agency toVillage Home Health to help peopleunderstand that its broad range ofmedical care and support services areavailable to all, in addition to JohnKnox Village residents.

All of this brought the agency toan outstanding final month of Fiscal

Year 2011 with 144 admissions inMarch the highest since theagency opened.

Shawna Frazier, RN, director atthe Lees Summit office, saidassociates came together as a team toaccomplish the milestone. Weve

worked to improve our customerservice and marketing efforts, as wellas our communication with ourinternal and external customers,shesaid.We are hearing positivefeedback from the referral sources

and our patients and families. Ittakes the entire Village HomeHealth team to bring about resultslike this!

Kim Blazevic, RN, director atthe Kansas office, said during thenext fiscal year, Village HomeHealth will be focused on continuedgrowth with an eye on attractingmore patients in Kansas.

Home Health Breaks Records

Community Health Services includes: Village Home Health (Overland Park,

Kan., and Lees Summit, Mo., offices) Village Hospice (Lexington and Lees

Summit, Mo., offices) Home For Life Solutions

LifeStyle Services private duty care Resident Wellness Clinic John Knox Village Fitness CenterTogether, these represent 15 percent ofrevenues, or $11.3 million in FY2011.

15%

New Programs ExpandHome Health Capabilities

Village Home Health added twonew specialized programs to meetgrowing needs in the community. The orthopedic program helps

patients who require therapyservices after an orthopedicsurgery by working with thepatient to create a customizedtherapeutic exercise program.This may include training inbalance and coordination

exercises and gait training,with a goal of restoring normalwalking patterns.

For those who experiencedizziness or have had falls orlightheadedness due to innerear dysfunction, the newControl Your Balance vestibularrehabilitation program provideshead and eye exercises andtraining that focuses onreducing dizziness and vision

instability.

COMMUNITY HEALTH SERVICES


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Its been nearly a decade sinceVillage Hospice started providingcompassionate care to its patientsand their loved ones. Through theyears, the Villages end-of-lifeservice has gone through manychanges and expansions all withits patients in mind.

During Fiscal Year 2011,Village Hospice introduced two new

programs, the Reflections Programand the Veterans Partnership, tofurther enhance the focused care itprovides.

Reflections ProgramThe Reflections program

provides specialized care forpatients with Alzheimers disease,dementia and other conditions thathave caused memory impairment.

Through the program, families andpatients learn about treatmentoptions, pain management andsensory stimulation activities thatpromote comfort and quality of life.In addition to helping familymembers understand the diseasesprogression and the behaviors ofadvanced dementia patients, theteam also offers counseling andgrief support.

Veterans PartnershipVeterans also have unique needs

at the end of life as a result of theirexperience in the military. VillageHospice has partnered with theNational Hospice and PalliativeCare Organizations We Honor

Veterans program to providetraining to staff and volunteersabout the special physical,emotional and social needs veteransmay have. It also providesinformation about veterans benefits.

Village Hospice Introduces Two New Services

New Administrator Named forCommunity Health Services Group

Julie Mahony, RN, was named administrator over Village HomeHealth, Village Hospice, LifeStyle Services, Home For Life Solutions,the Resident Wellness Clinic and the Villages Fitness Center. Juliehas more than 20 years of experience in nursing, administration andoversight of various community health outreach programs.

Because Im new here, I hope youll forgive me if I gush a littleabout the great team I have the pleasure to work with, Mahonysaid. I am thankful to work alongside a first-class team of peoplewho truly cover a huge span of health care services.


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Confidence at Home:Home For Life Solutions

The technology arm of John Knox Village continues to growwith the addition of new products and services. With the use oftelehealth monitors through Home For Life Solutions, homehealth nurses are able to stay in touch daily with patients across abroad geographic area. Even though nurses may be separatedfrom patients by miles and by days between appointments, theycan still closely monitor patients with chronic conditions, such ascongestive heart failure.The in-home health monitor collectsinformation each day, including heart rate, blood pressure, weightand more, sending it electronically to nurses for review.

Our nurses love having this equipment available to them,

and the patients are responding well to it, too, said Kim Blazevic,RN, director of Village Home Healths Kansas office. It extendstheir relationships with our patients and helps reduce re-hospital-izations by making it possible for us to take action as soon as

warning signs appear.

Im Proud to Say I Work Here

For the associates of LifeStyle Services, serving older adults is a passion. These speciallytrained professionals provide private duty services for those who may need assistance withhousehold chores or personal care in the comfort and privacy of their own homes.

Dannell Laffey has worked for LifeStyle Services for a little over a year, both in theiroffices and in her clients homes. She said that she loves being a part of John Knox

Village. I love waking up in the morning and coming to work, Dannell said. I grew upin the area and applied to work at John Knox Village because I knew it had been here along time and would probably continue to be.

Why does Dannelllove what she does?

Because I love my people and becauseevery day is different. I love that we give

our associates lots of training before wesend them out on their own to take careof people. They want you to succeed atyour job and help build you up so youcan grow. I am proud to say I workhere!

COMMUNITYHEALTH SERVICES


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VALLEY VIEW

Valley View Residential Care andValley View Memory Carerepresent 10 percent of total

Village revenues, amounting to$6.8 million.

Valley View AchievesRecord-High Census

In November 2010, Valley View Residential Care hit a record-highcensus with 119 residents.

Several factors contributed to reaching this milestone, includingplacing a greater focus on marketing efforts to attract new residents,remodeling the front lobby and activity room, renovating the apartments asthey become vacant and creating a model apartment to show to prospectiveresidents.

In addition, new flooring was installed in Fireside Dining, hallwaycarpeting was replaced and new furniture was placed in the corridors. Eachof these changes was designed to make the building more appealing and toenhance the satisfaction of current and prospective residents.

Valley View Memory Care also had a fantastic year.This highlysuccessful assisted living program for those with dementia and othermemory-related issues has run completely full (22 beds) with a waiting listfor several years now, so it is time to expand. See more about this in theletter from our vice president of finance on page 15.

First Impressions InstillConfidence

I was called by the daughterof a new Valley View ResidentialCare resident. She told me thateveryone on move-in day was sonice to her mother and that itmade her feel so comfortable toknow that she and her sisters weredoing the right thing in movingtheir mother to Valley View. Thehappiness, sincerity and

excitement in her voice wereundeniable. Many areas of the

Village touched this family onmove-in day, and it is this sense ofcommunity that compelled thefamily to pick up the phone and letsomeone know how they felt. Iknow I couldnt feel prouder to bea part of John Knox Village.

Heather Scott,Valley View Administrator

Love is in the Village AirYou are never too old to find love.This is powerful and insightful

advice that John Knox Village residents Verna Bartel and Allen Bowersknow very well. The couple was married in May 2010 at The Chapel at

John Knox Village after meeting at a Village-sponsored activity. Allen, whorecently turned 100 and lives in Valley View, and Verna, who lives inindependent living, spend time together by volunteering, reading the Bibleand just enjoying each others company.

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This is TrulyMy Family Community

While visiting me in 1968, my mother asked to go to Lees Summit tosee a project she saw on TV called John Knox Village. When we arrived,there was one small building. My husband started to park and she asked,Why are you parking? I only wanted to see it.The following year, she again

asked to go see it. As my husband drove by, mymother said, Why arent you parking? I wantto go in.

She liked what she saw so much shebecame a charter resident of John Knox

Village. My mother enjoyed many happy yearsat the Village meeting new residents and

volunteering. When my husband George andI retired, it seemed only natural for us to cometo the place where mother had been so happy.

We moved here in August 2001, and my sisterjoined us in the Village the following month.

Lillian Shippee, Village resident

Margaret North is a second-generation Village resident: Myparents lived here almost from thebeginning, she said. So I wasable to watch the Village grow.

A Perfect HomeI came to work at John Knox Village as a homemaker, which later evolved

into our present-day LifeStyle Services. I developed wonderful relationships withmy clients as I accompanied them to dinner, prepared small evening meals, helpedwith bedtime routines, etc.

Soon after moving here in 2006, a resident I knew exclaimed, You are one ofus now! Yes, I am, and so much at home here. Over the years, my involvement atthe Village, along with people who have become my friends, has made this aperfect home for me.

Sherry Sherrow, Village resident

The Associate Wellness Center is great. Ive been looking forsomething to help motivate me to take some weight loss actions, sothis is good timing. I can use the Fitness Center (free!) for myexercise, and taking part in the wellness challenges plus meeting withthe nurse will help keep me accountable.

Nora Williams, Laundry Associate

We have everything we needhere when it comes to ourmedical needs, and the peopleare very friendly. You can restwhen you want to rest or beactive in games and activities. Ifthere is something that interestsyou, you will find it here.

Narvetta and Earl CrockettVillage residents

It is such a joy to serve and be friends with residents who come toLakeside Grille. I mean, really, how many people can say they get tohang out with some of the greatest people every day and feed themsome of their favorite foods?

Rhoda Havener, Lakeside Grille Manager

THE PEOPLE BEHIND THE NUMBERS


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Daniel Ndungu came to America from Kenya last year insearch of better opportunities, and the John Knox Villageassociate says he has found them. Ndungu works as acertified nurse assistant at the Village Care Center. He plansto become a certified medical assistant and eventually wantsto earn a bachelor's degree in nursing. Daniel said he feelsblessed to serve the residents at John Knox Village. Improud to be an associate here, he said.

Photo and article excerpt courtesy of theKansas City Nursing News

JKV is a Family TraditionI have worked here for 27 years. During that time, I have had the pleasure of working in maintenance, in the

volunteer department, as an area manager, and I have spent 10 years arranging group travel for residents. Each ofthese opportunities has given me the chance to work and make friends with wonderful Village residents.

Working at the Village has also helped me to form stronger bonds with several members of my family. Bothof our mothers called John Knox Village their home. My husband, Bob, and I have three children. Our daughterConnie Taylor and two of our granddaughters have worked in different areas of the Village, and our otherdaughter, Teri, and her husband David have both been Village associates, too. John Knox Village is not only a

great place to live, its a great place to work! Jo Adams, Travel Specialist

Photo courtesy of theLees Summit Journal

If you get bored at John KnoxVillage, its your own fault.

Wayne Swetnam, Village resident


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Senior Living represents30 percent of total Villagerevenues, amounting to$20.2 million, including monthlyservice fees, restaurants, salons,ambulance, The Pavilion and

more.

Bringing People Through

Our DoorsThe recent economic downturn has continued to affect prospective

residents decisions. Declining home and investment values have madepeople reluctant to make significant changes in their lives. In addition,moving out of a long-time home can be overwhelming. To counteract thisstay-put frame of mind, we continued to market John Knox Villageactively and added some new tools to bring people through our doors andinto new homes.

MAP (Moving Assistance Program). Professional downsizers areavailable to help prospective residents prepare their homes for sale

and to help make the physical move as easy as possible. In addition tomaking suggestions to get a home market-ready, another MAP goal isto help the home sell faster and for the maximum price so the sellercan settle into a new home and lifestyle at the Village.

The Its All True DVD.This videohelps prospective residents and theiradult children who are ofteninvolved in the decision-makingprocess but may live in other cities to see Village life in action.

These additions, combined withfocusing on entry fee sales, have kept aconstant stream of interested partiescrossing our thresholds, leading to$7.2 million in new entry fee sales, a$2.6 million increase over the previous year.

Gross Entry Fee Sales

$7.2 million in FY2011$4.6 million in FY2010

To request a copy of this DVDvisit www.jkv.o

30%

199 inFY2011

173 inFY2010

New People Moving toIndependent Living

SENIOR LIVING


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Courtyard Caf

Updates OfferingsTo keep their customers excited about their

dining experiences, each of the four on-campusrestaurants introduces new menus periodically.

To gauge their success, questions about eachrestaurant are included in the bi-annual residentsatisfaction survey for the entire Village.

The Courtyard Caf has been a popular dining choice since opening in2005, but based on the survey results, the staff knew they could do an evenbetter job delighting customers. So the Courtyard Caf launched a

partnership with Fuzion Food Group, introducing an entirely fresh menuof food items that are big on taste, nutrition and variety.We are able to serve more nutritious and fresher food because

everything is cooked using induction ovens, said Todd Hollander, directorof dining services.They use a great deal less electricity, have no flames orgrease, and vegetables retain 85 percent more nutrients than any othercooking process.

The new menu is just the start of the positive changes put in place atthe caf, including the addition of a full-service bar and weekend hours,said Hollander, resulting in a significant improvement in residentsatisfaction scores regarding food quality, menu variety and value.

The Villages active communityof older adults is such a significantpresence in the metro area that we

also are a population of great intereto local politicians. Residents alsoremain very active in the politicalprocess.

This past year, the campus, agawas the site of multiple politicalevents (held by invitation from ourresidents) including:

Missouri State Senate District 8Candidates Forum; JacksonCounty Legislature Meeting; StatRep. Will Kraus campaign visit;Rep. Gary Dusenburgs HealthcarReform Forum;Social SecurityQ&A Session with CongressmenEmanuel Cleaver II and RichardNeal; Medicare Forum with Depu

Administrator Jonathan Blum; ana Town Hall Meeting with StateSen. Will Kraus and State Rep.Gary Cross.

Numbers =Influence

Calvin Community West ClosedBecause of its age and physical condition, and to clear the way for future development, we have closed the

Calvin Community West apartment building. Those few residents who still lived there were relocated to newhomes in the Village, the Ping Pong group moved to the Astoria basement and much of the furniture fromcommon areas was re-used elsewhere in the Village or sold by the Auxiliary Thrift Shop.


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Residents told us loud and clear through theresident satisfaction survey that they wanted moreopportunities to attend cultural arts performances,and we were delighted to respond by bringing in aseries of concerts and dance performances to sparkimaginations and memories and to keep those brainsynapses firing. Concerts and performances includedthe following.

US Air Force Band: Shades of Blue JazzEnsemble

Gospel artists Phil and Pam Morgan

Friends of Chamber Music Heartland Mens Chorus Kansas City Civic Orchestra The Nutcracker Suite ballet

7 14 30 300Miles of Streets Miles of Sidewalks Parking Lots Driveways

It took several days of clean-upefforts with our crews frommultiple departments working insingle-digit temperatures and sub-zero wind chills to dig out thosemiles of streets and sidewalks,

parking lots and driveways.

On February 1-2, 2011, theLees Summit, Mo., area received15 to 18 inches of snow, along withblizzard conditions and windsgusting up to 45 mph. Snow driftedthree to four feet deep, causing thefirst-ever state-wide closure ofInterstate 70.

But John Knox Village is a 24/7operation.While many offices and

ancillary services could close for aday, others had essential services toprovide and needed enough staff toserve the residents, care for ourpatients and to get the roads,sidewalks and driveways cleared sothings could get back to business asusual.So associates did what theycould to make sure our residents werecared for. Some hiked through driftsto get to a main road so co-workerscould drive them to work; others

SENIOR LIVING

WHAT A LOT OF SNOW!

found a bed or a soft corner and slepton-campus for the night; and stillothers used the Internet to workfrom home so they could stay safe

while keeping operations runningsmoothly.

Cultural Arts Abound


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JKV Public Safety Director Presented with National AwardCraig Faith, director of public safety, enrolled in a certification program offered

through the American Ambulance Association to become a certified ambulanceservices manager (ASM). The class includes ambulance managers from around theworld. During week two of the class, ASM participants voted for a peer whoexemplified the best of the ASM program. Craig was ready, camera in hand, to take a

picture of the award winner only to hear his own name announced.

About two-thirds of the way through my regular two-mile walk, I thought, Mygoodness. I have acid indigestion. So I slowed my pace and continued home. Afew minutes later, I thought, I think my heart hurts, so I called the dispatcher andtold him about the pain. Within a couple of minutes an ambulance was at my door. I

was in the cath lab within 10 minutes of arrival at the hospital. The excellent andquick response resulted in very little heart damage. Thank you so very much for thewell-trained personnel who executed an excellent plan very quickly.

Wanda Chinnery, Village resident

Power of the People:Gifts and Giving

John Knox Village AuxiliaryThe Auxiliarys Thrift Shop, four convenience stores

and fund-raisers earned $334,788 during fiscal year 2011,an astounding 19 percent increase over the previous year.

This allowed the volunteer organization to support theVillage in a variety ways, including a $25,000 pledge tothe JKV Foundation to help with construction costsassociated with the expansion of the Village House. (Seepage 3 for additional details.) Other gifts include a$10,000 contribution to a scholarship fund for studentsstudying for a career in health care and a $6,000 donationto Lees Summit Social Services to help purchase medicalequipment for a local child with medical issues.

John Knox Village Foundation

The number of gifts received by the Foundation waslarger (861) than any time since the nations financial crisishit.The number of major gifts ($1,000 - $10,000) alsoincreased, demonstrating that philanthropic spirit iscoming back. On the other hand, the Foundation receivedfewer major estate gifts than usual. This is due, in part, tothe reduced value of estates and a growing number offamilies who need help because of their financial condition.

The Foundation provided $150,000 in funding for theBarbara Elder-Owens wing of the Village House and isalso raising $200,000 needed for a second hallway.Whatsmore, $119,899 was transferred to the Village to fund a

variety of projects, such as purchasing new computers forthe resident computer center.

Finally, the Foundation contributed $74,704 to theResident Financial Assistance Fund.

Volunteer ServicesDuring Fiscal Year 2011, about 420 volunteers

(including residents and about 100 members ofsurrounding communities) logged about 68,000 hoursthrough about 75 volunteer opportunities across theVillage. The success of the volunteer program can beattributed to the variety of opportunities, and support aninput from departments who benefit from the servicesprovided by volunteers.

The vibrant program consists of volunteers betweenthe ages of 13 and 100. Village volunteers of all skill leve

aid in department productivity; increase resident, patientand customer satisfaction; and enrich their own lives, tooVolunteers often tell us that they derive great satisfactionfrom the work they do.

Village Resident Delighted with JKVs Ambulance Services

This ambulance is just one of the mapurchases the John Knox Village Auxiliary h

made in support of the Villa


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ASSOCIATE RELATIONS

Healthy Lifestyles Beginwith Opportunities

Several years worth of high-dollar health insurance claims had begunto strain the Villages financial health by causing higher premiums, and

with a possible $1 million increase in health insurance premiums for 2011,changes were imperative.

Relying on recommendations from an associate committee, Villageleaders took steps to make the Village self-insured and introduced aninnovative program Village Wellness that gives associates newopportunities to take charge of their health.

The centerpiece of the program is the Associate Wellness Center,which is similar to a walk-in clinic at a drug store.The program stepsbeyond that, though, by providing free clinic visits and free health coachingfor those associates and family members who are enrolled in the Villageshealth insurance. The clinics nurse practitioner can give physical exams,inoculations and allergy shots; treat minor illnesses and injuries; and more.It is run by WINS (Wellness Innovation and Nursing Services), which issupported by the University of Kansas Hospital.

The dramatic enhancement of the existing wellness program alsoincludes a number of components that are available to all associates,including health education opportunities and wellness challenges. Byfocusing on wellness teaching healthy habits, detecting health problemsearly and keeping track of chronic conditions it is anticipated thatparticipants will stay healthier and avoid the need for more complex care.

We needed to get a better handle on controlling healthcare costs forassociates and for the Village,said Vice President of Human Resources BettyFreeman-Boots.An easy way to get started was by helping people learn to

make the right choices, so that, in the end, less health care is needed.

I had several sessions withthe wonderful physical therapistsat the Associate Wellness Center.They worked with me until myproblem was resolved. My kneeis doing great, and we are stillworking with my shoulder at thistime. And it was completelyFREE! I do think this is a greatinvestment by JKV, and I hopemore associates will takeadvantage of it. The staff at the

clinic is wonderful.

Sally Arrey, RN, Wound CareSpecialist, Village Care Center

40 years = $0Village associates have a new

benefit that provides a way forthem to move into the Village for

free in retirement. In a nutshell,the policy states the longer aperson works at the Village, thebigger discount he or she willreceive on a monthly lease for aunit on the Village campus. A 40-

year associate could move into asmall studio apartment inretirement with no monthly fee,potentially saving up to $10,000per year. Or that same amountcan be applied as a discount on the

monthly service charge for a largerhome.

This is just the right thingfor us to do, said VillagePresident Dan Rexroth.Our goalis to provide people with a positivelifestyle option after retirement,and this new benefit gives those

who spent so many yearsproviding services a chance toenjoy those services.


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Nearly every area of the Villagehad a higher census than budgeted,including independent living,Valley View Residential Care,

Valley View Memory Care, Village Hospice andLifeStyle Services.The improved entry fee sales inindependent living produced more than $7.2 million inentrance fee revenue and contributed to an almost $12million net operating margin (adjusted).Only theVillage Care Center and Village Home Healthadmissions showed a small negative variance to budget,and steps were taken to help build future census stepsthat have already started making a difference.

Across the Village, many departments and servicesexperienced growth.For example, for the second year,

independent livings new dining program was includedin the resident agreements for new residents,which hasbrought a greater financial efficiency to the diningoperation.

Village Hospice and Village Home Health unveiledseveral support programs.The Village Care Centeropened a 10-suite unit that provides short-terminpatient hospice care through a contractual agreementwith Village Hospice.Village House funding wasprovided in part by a capital fundraising campaignmanaged by the JKV Foundation. A second unit isalready in the planning stages and is expected to beginadmitting patients in late Fiscal Year 2012.

Valley View Memory Care has had a waiting listsince it opened five years ago, signaling a need for asecond unit that will house 17 more residents. It is set toopen in early FY12.The best place for this expansion isthe current home of The Childrens Village, our on-sitechild development center.This center has been a

meaningful part of the Village but will now close to helpus meet the needs of the community for additionalassisted living memory care.

We expect the Village House and Memory CareUnit expansions to contribute to a positive change in theVillages operating margin in Fiscal Year 2012.

On another positive note, the Village realized a$1.2 million return on our investment portfolio becauseof improvements in the economy.

The Village did experience challenges on theexpense side of the balance sheet, and ended the fiscalyear unfavorable to budget.This amount was partiallyoffset by the increased revenues. We have takennecessary steps to better position us for Fiscal Year 2012,including reducing labor costs at the Village Care

Center; increasing home health marketing support andrelocating the Kansas office; and establishing the VillageWellness program to reduce our associate healthinsurance costs.

Thank you to the residents, staff and boards for theirsupport of the Village. We are grateful for the continuedfinancial support by the John Knox Village Foundation,the John Knox Village Auxiliary and the thousands of

volunteer hours provided by both Village residents andmembers of the surrounding communities.

James H. Franklin,Vice President,Finance

ACCOUNTING FOR THE NUMBERSA letter from the Villages vice president of finance on Fiscal Year 2011 (April 1, 2010-March 31, 2011)

During Fiscal Year 2011, John Knox Village enjoyed a good deal of censussuccess and growth, all of which contributed to the Village surpassing itsbudgeted revenue by about $700,000.


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JKV Consolidated Balance SheetsASSETSCurrent AssetsCash and cash equivalentsAccounts receivable, netCurrent portion of assets limited as to use

Board designatedHeld by bond trustee

InventoriesPrepaid expenses and otherTotal Current Assets

Assets limited as to use, net of current portionBoard designatedHeld by bond trusteeRestricted by donorsTotal Assets Limited as to Use

Other Investments

Property and EquipmentProperty and equipment, netAccumulated depreciationTotal Property and Equipment, net

Deferred Financing Costs, netForward Delivery AgreementDue to/from Affiliates

TOTAL ASSETS

March 31, 2011

4,846,0465,503,821

2,039,599235,286

362,824704,877

$13,692,453

29,222,9064,828,0942,176,999

$36,227,999

$588,745

192,222,613107,177,902

$85,044,711

828,084662,808

3,836,913

$140,881,713

March 31, 2010

4,826,2354,594,458

1,354,596324,599

386,114415,706$11,901,708

27,198,9334,849,7842,200,262

$34,248,979

$316,722

191,644,837102,388,456

$89,256,381

719,773573,636

4,268,750

$141,285,949

LIABILITIES, DEFERRED REVENUE AND NET ASSETSCurrent LiabilitiesCurrent maturities of long-term debtAccounts payable and accrued expensesTotal Current Liabilities

Deferred Revenue and DepositsDeposits received in advance on entrance fees and refundable feesDeferred revenue, entrance fees and monthly service feesTotal Deferred Revenues and Deposits

Asset Retirement Obligation, net of current portion

Long-Term Debt, net of current portion

Total Liabilities and Deferred Revenue

Net assetsUnrestrictedTemporarily restrictedPermanently restrictedTotal Net Assets

Total Liabilities and Net Assets

1,685,7847,670,000

$9,355,784

5,606,37339,898,029

$45,504,402

3,529,395

61,194,868

$119,584,449

19,775,754680,806

1,244,940$21,701,500

$141,285,949

1,923,9408,152,228

$10,076,168

6,514,94541,039,064

$47,554,009

3,692,046

59,178,461

$120,500,684

18,492,156493,046

1,395,827$20,381,029

$140,881,713


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March 31, 2011

9,443,9155,533,584

41,286,0223,060,8201,246,378

385,3724,649,979

$65,606,070

37,310,88320,044,425

(16,804)11,091,392

0

$68,429,896

(2,823,826)

01,967,562(427,334)

(1,283,598)

March 31, 2010

8,819,890

6,849,606

38,937,397

3,186,105

569,946

313,6054,001,671

$62,678,220

35,316,13618,902,228

(1,491)10,852,0715,035,331

$70,104,275

(7,426,055)

2,2805,690,991(520,000)

(2,252,784)

JKV Consolidated Statement of OperationsFOR YEARS ENDEDOperating RevenuesResident service feesAnnual agreement feesHealth service fees, netAmortization of deferred revenueInvestment income

Net assets released from restrictions used for operationsOther

Total Operating Revenues

Operating ExpensesSalaries, wages and benefitsOther operating expensesLoss on disposal of property and equipmentInterest and depreciationImpairment of asset (Forest Lake & CCW)

Total Operating Expenses

Revenue Over (Under) Expenses

Contributions from JKV AuxiliaryNet change in unrealized gains (losses) on investmentsTransfers to parent

Increase (Decrease) in Unrestricted Net Assets

March 31, 201085,292

2,025,2020

63,636110,715319,102

$2,603,947

105,68331,275

174,8802,292,109

$2,603,947

March 31, 2010273,753

1,814,487149,97187,883

103,874342,769

$2,772,737

132,03833,411

190,7802,416,508

$2,772,737

ASSETSCash and cash equivalentsInvestmentsEstates receivablePledges receivableCharitable remainder trustsCharitable gift annuitiesTotal Assets

LIABILITIES AND NET ASSETSDue to John Knox VillageAnnuity payment due on charitable remainder trustsAnnuity payment due on charitable gift annuitiesNet assetsTOTAL LIABILITIES AND NET ASSETS

JKV Foundation Balance Sheets


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400 N.W. Murray RoadLees Summit, MO 64081

(816) 251-8000www.johnknoxvillage.org

Fiscal Year 2011John Knox Village Board of Directors

GeorgePagels,MD,FACP(Chair)President and CEO, Saint Lukes East-Lees Summit

ThomasLangenberg (ViceChair)President and CEO, Community Health Group*

ArthurDewsberry (Secretary)Retired,John Knox Village Resident

KarenArredondoGraphic Accounting Inc./Emerald Business Consultants,

John Knox Village Resident

DamondBoatwrightPresident and CEO, Lees Summit Medical Center

StephenChinn

Partner, Stinson Morrison Hecker, L.L.P.

Robert EllisRetired,John Knox Village Resident

Thomas JacksonPresident, Lees Summit Market Metcalf Bank

Robert Piepho,Ph.DDean and Professor, University of Missouri-Kansas City

School of Pharmacy

LarryCrozierRetired,Former Finance Executive,Truman Medical Centers

* Thomas Langenberg resigned from the board in mid-fiscal year.

Larry Crozier was approved to fill the open position Nov. 29, 2010.

John Knox Village Corporate Staff

DanielD.Rexroth,President/CEO

JamesH.Franklin,RHPVice President, Finance, and Corporate Treasurer

BettyFreeman-Boots,SPHR,Vice President, Human Resources

RodneyL.McBrideVice President,Health and Community Services Group

MariaT.Timberlake,Vice President, Senior Living

John Knox Village FoundationBoard of Trustees

RonaldKean(Chair), Retired,John Knox Village Resident

Gloria Romey (Vice Chair)

Retired, John Knox Village Resident

CliffSeger(Secretary),Retired,John Knox Village Resident

NancyBlackwell,Attorney at Law, Chinnery Evans & Nail,P.C.

MelvinGross,President/CEO,Modern Alpha Plastics,Inc.

SandyLangsford-Cox,President, Langsford Funeral Home

MichaelMcRobbie,Shareholder, Gilmore & Bell, P.C.

EugeneWilson,Senior Advisor, Councils on Foundations

Foundation Staff

WilliamC.Bergosh,CFRE, President

2011 John Knox Village Annual Report

Documents

Transcript of 2011 John Knox Village Annual Report