ANNUALREPORT

20092009

288 S. Ridgecrest Ave. • Rutherfordton, NC 28139Phone: (828) 286-5000

www.MyRutherfordHospital.com

President’s Letter

D espite the many challenges the healthcare industry faced in espite the many challenges the healthcare industry faced in 2009 Rutherford Hospital Inc. has much to be proud of when 2009 Rutherford Hospital Inc. has much to be proud of when we review the past year as an organization. I am pleased we review the past year as an organization. I am pleased

that the leadership, the medical staff and the employees of RHI have that the leadership, the medical staff and the employees of RHI have pulled together and shown great perseverance for the sake of providing pulled together and shown great perseverance for the sake of providing outstanding healthcare for our community and our region.outstanding healthcare for our community and our region.

RHI continued to be recognized in 2009 as a leader in healthcare quality RHI continued to be recognized in 2009 as a leader in healthcare quality and responsibility. In fact, RHI was recognized yet again as a Top 100 and responsibility. In fact, RHI was recognized yet again as a Top 100 National Hospital by Thomson Reuters and as a Top 100 facility by National Hospital by Thomson Reuters and as a Top 100 facility by

Cleverley + Associates. We accept these honors not for our own glory but in the name of Cleverley + Associates. We accept these honors not for our own glory but in the name of providing the best possible healthcare to you and your family.providing the best possible healthcare to you and your family.

In addition, many new processes and innovations were implemented in 2009 in order to In addition, many new processes and innovations were implemented in 2009 in order to improve patient care. New methods of treating patients in Emergency Department and improve patient care. New methods of treating patients in Emergency Department and through our EKG services are but a few examples of how we assure you that RHI will stay through our EKG services are but a few examples of how we assure you that RHI will stay abreast of the most effi cient ways to provide our services to our customers.abreast of the most effi cient ways to provide our services to our customers.

We welcomed new facility additions to our cancer program as well as the patient navigator We welcomed new facility additions to our cancer program as well as the patient navigator position to assist those diagnosed with cancer. Many other activities that you will read about position to assist those diagnosed with cancer. Many other activities that you will read about in this report serve notice that we are committed to providing the resources necessary to be in this report serve notice that we are committed to providing the resources necessary to be a leader in this area for cancer resources.a leader in this area for cancer resources.

As I have stated before, it is our mission to provide you with expert care and outstanding As I have stated before, it is our mission to provide you with expert care and outstanding customer service marked by compassion. When you have a need, you should expect the customer service marked by compassion. When you have a need, you should expect the best from us, and you have my commitment that Rutherford Hospital Inc. will combine best from us, and you have my commitment that Rutherford Hospital Inc. will combine experience with expertise and treatment options with well-coordinated services. It is my experience with expertise and treatment options with well-coordinated services. It is my pleasure to serve you as President and CEO of Rutherford Hospital Inc. and I look forward pleasure to serve you as President and CEO of Rutherford Hospital Inc. and I look forward to another memorable year in 2010.to another memorable year in 2010.

David M. Bixler David M. Bixler President and CEO President and CEO Rutherford Hospital, Inc. Rutherford Hospital, Inc.

w w w . M y R u t h e r f o r d H o s p i t a l . c o m

Dedication of the 2009 Annual Report

J. Toliver Davis served over 30 years on the Board

of Trustees at Rutherford Hospital and held the title

of Trustee Emeritus. He served the board from April

1962 – December 1991. During his time as a trustee

a number of signifi cant achievements took place:

• Rutherford Hospital School of Nursing

merged with Gardner-Webb;

• The Norris-Biggs Clinic was constructed;

• The Hospital Auxiliary was begun;

• A new patient tower was constructed;

• The Norris-Biggs wing was renovated;

• A $13 million expansion project included two

patient fl oors, a new lobby, a main entrance,

relocation of outpatient services and the

demolition of the 1951 wing;

• The acquisition and operation of the

Woodlands Skilled Nursing Center;

• A $2.8 million modernization of the

hospital’s radiology department;

• The opening of the Lake Lure Area Medical

Services facility;

• The opening of an inpatient behavioral

health center in the hospital.

He was a member of the First Baptist Church

of Forest City and served his country in the

United States Navy during World War II where

he received a Purple Heart, was awarded a Silver

Star and served in the United States Naval

Reserve retiring at the rank of Lt. Commander.

Davis attended Mars Hill College and was a graduate

of Wake Forest School of Law. He served as Clerk

of Court and retired as a Federal Magistrate Judge

for the Western District of North Carolina.

He also served three terms in the North Carolina

Legislature and formerly served as the attorney

for both the Town of Forest City and Rutherford

County. In addition, he served on the Board of

Trustees of Gardner-Webb University.

J. Toliver Davis’ leadership and impact will

be felt for generations to come in Rutherford

County. It is in his memory that we dedicate

this issue of our Annual Report.

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1

Michael S. Wheeler, M.D.Chairman, Board of TrusteesChairman, Board of Trustees

Rutherford Hospital Inc. in 2009 stood as an example of commitment – to its utherford Hospital Inc. in 2009 stood as an example of commitment – to its mission, its vision, and its responsibility to the community. As diffi cult economic mission, its vision, and its responsibility to the community. As diffi cult economic

times have shrouded the region and the nation, the residents of Rutherford and times have shrouded the region and the nation, the residents of Rutherford and surrounding counties took heart in knowing that Rutherford Hospital would not only surrounding counties took heart in knowing that Rutherford Hospital would not only maintain a level of excellent care-giving, but would be recognized again for being a maintain a level of excellent care-giving, but would be recognized again for being a leader in quality and effi ciency. As you will read in the pages that follow, more than leader in quality and effi ciency. As you will read in the pages that follow, more than

one organization has given RHI recognition as a national Top 100 hospital. We hope this one organization has given RHI recognition as a national Top 100 hospital. We hope this serves as a reminder to all of our local residents that comprehensive medical care, delivered serves as a reminder to all of our local residents that comprehensive medical care, delivered with an emphasis on customer service, is available right here at home.with an emphasis on customer service, is available right here at home.

C. Phillip Whitworth, M.D.Chief of StaffChief of Staff

The medical staff of Rutherford Hospital is committed to excellence in quality of care. he medical staff of Rutherford Hospital is committed to excellence in quality of care. By examining processes involving patient care and comparing ourselves to national By examining processes involving patient care and comparing ourselves to national

guidelines and standards, the medical staff continues to meet this goal. The hospital guidelines and standards, the medical staff continues to meet this goal. The hospital provides us with the latest technology to facilitate this quality. Our physicians direct provides us with the latest technology to facilitate this quality. Our physicians direct and supervise education and outreach programs in the community in coordination with and supervise education and outreach programs in the community in coordination with the hospital. The medical staff works as partners, with you the patient, to achieve and the hospital. The medical staff works as partners, with you the patient, to achieve and

maintain your best health and to promote healthy lifestyles in our community.maintain your best health and to promote healthy lifestyles in our community.

Michael Wheeler, M.D.Chairman

Joe Carson Vice-Chairman

E. Thomas Hardin Secretary

Diane Hamrick Treasurer

Matt Bright

Tommy Davis

Paul Deck

Jerald DeLaGarza, M.D.

David Eaker

Larry Harrill

Lee Harrill

Terry Hines

Thomas J. Jaski, M.D.

Myra Johnson, Ph.D.

Rutherford Hospital, Inc. Board of Trustees 2009

Letters To The Community

Grover Bradley

J. Toliver Davis

Lu Hamlin

Helyn Lowery

Steve McBrayer

Gordon Scott, III

James T. Tanner

Chuck Rivard

Joel Winker, M.D.

Lloyd Wood

Rutherford Hospital, Inc. Trustees Emeritus

16 www.MyRutherfordHospital.com w w w . M y R u t h e r f o r d H o s p i t a l . c o m1 6

Auxiliary Celebrates Another Outstanding Year

The Rutherford Hospital Auxiliary in September was the recipient of the 2009 Five Star Award at the North Carolina Hospital Volunteers Annual Conference in Greensboro. The Five Star Award is the highest ranking possible, which the Rutherford Hospital Auxiliary has earned for 11 consecutive years. A score of 400+ points earns the Five Star rating and points are given for services including recruitment, scholarship contributions, implementing new projects and promoting National Volunteer Week. The Rutherford Hospital Auxiliary scored 425 points.

In October new offi cers, the Extra Mile Award, a $68,334 check presentation and the recognition of outstanding volunteers were on the agenda for Auxiliary’s annual meeting.

Two volunteers, Dr. Hampton Casebolt and Kay Hollifi eld, were recognized for more than 2,000 hours of service and joined a group of Lifetime Auxiliary members for their dedication to the hospital. There were 20 other volunteers with at least 2,000 hours of service. Helen Rogers was recognized for 15,000 hours of volunteer service.

Outgoing Auxiliary president, Sharon Taylor, was honored by receiving the Auxiliary’s Extra Mile Award. The award is given to volunteers who unselfi shly take on roles that others may not want to accept, explained Ginger Dancy, director of RHI volunteer services. “They are also willing to accept weighty responsibilities that others are not willing to accept at that particular time, so their willingness to participate is very signifi cant. They also may not realize how their leadership has infl uenced others to do their best when volunteering,” Dancy added.

Taylor has over 1,600 hours of volunteer service during the eight years, and has served as chairman for the Surgery Waiting area. She also has served on the Auxiliary board in several areas when the Auxiliary received several honors including, State Fund Raising Award, State Community Related Award, Administrator of the Year Award and also The Five Star Award for 11 consecutive years.

Taylor joins a prestigious group of other Extra Mile winners including, fi rst recipients Earl and Virginia Taylor in 1990; Helen Rogers, Naomi Yelton, Peggy Wells, Colleen Biggerstaff, Jackie Long, Margaret Miller, Darlene Gowan, Brenda Hess, Bonnie Cherry, Dr. Joe and Mrs. Lib Godfrey, and Elisabeth White. Extra Mile Award recipients who are deceased were also mentioned, including Edna Robertson, Harry Stroud, Pauline Chandler, Betty Keeter, Lib Monteith, Tommy Keeter and Pat Melson.

Auxiliary volunteers serve in the Emergency Waiting, Front Desk, Gift Shop, ICU Waiting, Medical Records, Massage Therapy, Messenger, Outpatient Services, Pet Therapy, Radiology and Surgery Waiting.

Volunteers also serve as Teen Volunteers, caretakers of St. Luke’s Chapel, work with the Toy Chest, cancer program, tray favors, Education Department for community programs and also are clowns for special occasions.

Auxiliary

The Auxiliary presented hospital CEO David Bixler and Trustee Joe Carson a check for $68,335.24. The money was raised over the past year through the Auxiliary’s various service projects and fund raising events.

Newly elected offi cers are Bobbie Bridges, president; Carolyn Keever, vice president; Sharon Taylor, secretary and Dr. Hampton Casebolt, treasurer.

Dr. Hampton Casebolt and Kay Hollifi eld were named Lifetime Auxiliary members

2009 Extra Mile Award Winner, Sharon Taylor.

6 666

w w w . M y R u t h e r f o r d H o s p i t a l . c o m2

A Year In Review

Rutherford Hospital NamedA Top 100 National Hospital

RHI Joins Duke University Hospital As The Only Hospitals Recognized In NC or SC.

Rutherford Hospital was selected by Thomson Reuters Top Hospitals as a recipient of its 100 Top Hospitals Award for the fourth consecutive year. The hospital previously received the Thomson Reuters 100 Top Performance Improvement

Leader award for 2005, 2006 and 2007.

This year, for the fi rst time, the hospital is the recipient of two national benchmark (highest

performance) awards: the 2008 Thomson Reuters 100 Top Hospitals National Benchmarks Award, and the 2008 Thomson Reuters 100 Top Hospitals Everest Award for National Benchmarks, which was awarded to only 23 hospitals nationally.

The National Benchmarks Award recognizes hospitals with the highest hospital-wide performance compared with the national peers, based on an overall score on the 100 Top Hospitals National Balanced Scorecard. This award acknowledges the organizational achievement

Rutherford Hospital has made by aligning its board, management team, employees, and medical staff in a

concerted effort to achieve balanced excellence.

RHI’s selection was based on objective statistical performance measurement across fi ve critical areas: clinical process and outcomes, patient safety, patient perception of care, operational effi ciency, and fi nancial stability. In North Carolina, only RHI and Duke University Hospital received this prestigious distinction. No South Carolina hospitals were included.

This is the fi rst year Thomson Reuters has awarded the 100 Top Hospitals Everest Award for National Benchmarks. This new award recognized 23 hospitals nationally that combined high achievement with signifi cant long-term improvement, resulting in the highest performance in the country at the end of fi ve years.

Dave Bixler, RHI president and CEO, said, “To say that this is good news during a challenging time for RHI

and hospitals across the nation would certainly be an understatement. This recognition is another affi rmation of the great progress our organization has made on a national level.”

Dr. Mike Wheeler, chair of the RHI board of trustees, added, “It’s very diffi cult to receive this award even once because the organization has to perform in an

outstanding manner across so many different measures and metrics, not just one. Also, the measures in the

study change annually based on new and higher standards of care. Therefore, it should be a point of pride in the hospital and in the community that we’ve

been able to maintain high levels of performance year after year.”

Jim Bross, RHI vice president of operations, added, “The 100 Top Award program has never been something we aspired to achieve. It is simply the result of a team effort by our hospital board, leadership team and medical staff to continuously improve the services we provide while assuring good stewardship of the fi nancial and other resources of our hospital.”

Jean Chenoweth, senior vice president of performance improvement and the 100 Top Hospitals programs at Thomson Reuters, explained, “Repeat members of the 100 Top Hospitals list have very highly developed cultures of performance improvement. It is part of the everyday job for everyone. You can’t just be good at cutting expenses or reducing mortality. You have to be a balanced, high-performing hospital.”

This is the 16th year Thomson Reuters has honored the Top 100 hospitals and the national announcement of the 2009 award winners can be seen at www.100tophospitals.com and www.modernhealthcare.com.

Rutherford Hospital, Inc. Annual Report 2009 15 1 5

BENEFACTORSBENEFACTORSThe Duke EndowmentBuster and Louise Huggins

SPONSORS SPONSORS United Way of Rutherford County

PATRONSPATRONSAmerican Cancer SocietyAmerican Lung AssociationBB&TDr. and Mrs. Dean BackstromCamp Electric Community Foundation of Western North CarolinaCovenant Advisory Group – Kirk and Cindy WilkersonMrs. Lucy Daniel Diamond Healthcare CorporationDiversifi ed Investment Advisors, Inc.Duffi e’s Copier ConsultantsFairfi eld Mountains ChapelFirst United Methodist Church Rutherfordton– Fellowship Sunday School ClassGrace Hunter TrustLarry and Libby HarrillHaynes Memorial Baptist ChurchHickory Nut Gorge OlympiadDr. and Mrs. Jack HoopesIsothermal Planning and Development CommissionKiwanis Club of RutherfordtonLipscomb SignsMrs. Joan KingGene and Mary MitchellThe Pepsi Bottling GroupPeterson AssociatesPhillips Edison and Company

Quorum Health Resources Rutherford Internal Medicine AssociatesSaint Francis Episcopal ChurchMr. and Mrs. Michael TannerThe Tanner Foundation, Inc.WachoviaWal-Mart Wells FargoYouth Empowered Solutions (YES)

TREE OF LIFE GIFTSTREE OF LIFE GIFTSANCODave and Lynda BixlerMrs. Nancy BoffemmyerBright Assest Management, LLCCarolinas Healthcare SystemMr. Edgar CasnerCarver CenterColdwell Banker/650 West Realty, LLCMr. Lance ColemanCourtside SteaksMrs. Ginger DancyCanteen Vending ServiceCarolina CATCarson Contracting CompanyEvergreen Medical Services, Inc.First Baptist Church of Forest CityFirst Baptist Church, Forest City - Love Circle Sunday School ClassFirst National BankForest City Heating and AirForest City OwlsMrs. Sylvia FrazierGermack Audio Visual ServicesDr. and Mrs. Jason GloverHolland & Hamrick, Architects, P.A.Holland Furniture CompanyLakeside MillsMrs. Susan M. Lloyd

Mr. and Mrs. Britt LowryLure of the Dragon Boat RacingManaged PrintMatheny Real EstateMarsh, Inc.Mr. Derek MasonMission Healthcare SystemMr. Luther S. MorrisMr. Louis Nanney, Jr.Dr. Ruth Ann NevilsMr. and Mrs. Pell TannerPilot Club of Rutherford CountyRentenbach ConstructorsRutherford Radiolocial Associates, PARutherfordton Presbyterian Church The Sanger ClinicSCANA Services, Inc.ScImageDr. Carol Selsor SimplexGrinnellMrs. Bonnie StephensTEAMHealthMr. and Mrs. Jimmy TannerJerry and Gail WalkerWatts Water TechnologyWorksite Services, Inc.

PARTNERSPARTNERSAdaville Baptist Church - Couples II Sunday School ClassMr. Daniel BartelContinental Freight ServicesDr. and Mrs. Tom JaskiDunton United Methodist ChurchFirst Citizens BankFirst Methodist Church, Rutherfordton - Garmon/Yelton Sunday School Class

First United Methodist Church, Forest City - McKinney Walker CircleFlorence Baptist Church - Helping Hands ClassForest City HondaMr. and Mrs. Lee HarrillHealing Touch Chiropractic CenterHenderson Care Center, Inc.McCurry-Deck MotorsMoose Snacks and VendingMr. and Mrs. Paul McIntoshMr. Cy MillerMutual of OmahaPSNC EnergyQueens GapThe Remi GroupDr. and Mrs. Michael RobertsRollins Med Gas Inc.Rosnet, Inc.Rutherford Hospital AuxiliaryRutherford OB/GYN AssociatesRutherford Pediatrics, P.A.Mr. J. Wallace RutledgeMr. and Mrs. Gordon Scott, IIIMrs. Tracy ShortMr. Andrew Douglas SmithSmith DrugMr. and Mrs. Jimmy Tanner, Jr.Taylor and Viola Structual EngineersDr. and Mrs. John T. TolhurstRicky and Cherie ToneyTips to Toes

Gifts of $250 or more are recognized above. Many, many other friends joined in our efforts to support vital hospital programs and services in 2008. Each gift is appreciated.

The mission of Rutherford Hospital Foundation is to secure gifts of support for the hospital, insuring that the community continues to receive a broad range of health-related services. Many of the programs that we support are directed toward those that we are otherwise unable to pay for their medical care. The following hospital services received support through the Foundation in 2009: Asthma Camp, Health Ministry, Cardiac Care Scholarships, Lifeline Service for Seniors in Need, Diabetes Education, Tobacco Prevention, Mammograms for Uninsured Women, Breast Cancer Patient Navigator, Cancer Resource Center Renovation, Spiritual Care, Empty Arms Grief Support, Infant Car Seats and Patient Family Support Cancer Care Room.

A Year of Special Events22nd Annual Golf Classic

October 2, 2008

Rumbling Bald Resort

Hot Stove BanquetHosted by the Forest City Owls

To Benefi t Rutherford Hospital Foundation

January 31, 2009

Fashion with a PassionDoncaster Fashion Show

Legacy Giving Presentation and Brunch

Sponsored by Covenant Advisory Group

Proceeds for Mammograms for Uninsured Women

February 13, 2009

Rutherford Hospital Foundation’sStargazer Ball

“Bettin on Better Times” Casino Night

May 30, 2009

Foundation Night withThe Forest City Owls

Featuring RHI Employees and Families

June 27, 2009

Tanner Warehouse SalesMarch 16-17 and September 22

Proceeds for 2009 Camp WheezKnot45 mammograms for uninsured w

omen

were made possible by the “Fashion

with a Passion” women’s event held

in February.

Rutherford Hospital, Inc. Annual Report 2009 3 3

It’s Here: MyRutherfordHospital.com Rutherford Hospital Inc. has proven its worth through

an outstanding medical staff, new technology, expanding service lines, and staff who demonstrate the highest standards of customer service.

Now RHI has a new website to refl ect all of that and more. In the latter part of 2009, MyRutherfordHospital.com was launched in order to give patients and guests an expanded view of RHI’s services and people. Among the features to the new site are:

• Listings and descriptions of all services performed by RHI departments and physicians

• A Find-A-Doctor search function to help you locate a physician • Easy access to listings of classes, events and programs • Symptom navigator similar to WebMD • Videos and Tours of recent news and interesting services • Constant feeds for RHI news and health news that are relevant to you

• Featured physicians and employees who work at RHI to serve you • Testimonials from patients, employees and physicians about RHI • CEO blog with the latest thoughts from Dave Bixler • Maps and resources for fi nding where our services are offered

RHI Earns Another Top Value Award Rutherford Hospital this year made the Cleverley & Associates Top 100 Hospital List for 2009 using the company’s Community Value Index (CVI) ranking. Cleverley’s CVI was created to provide a measure of the value that a hospital provides to its community.

Every acute care hospital’s data in the United States was reviewed with the following CVI components: fi nancial viability and plant reinvestment, hospital cost structure, hospital charge structure, and hospital quality performance. RHI has earned the right to be a called a Five-Star and Top 100 facility by Cleverley & Associates for achieving higher-than-average results in all four

CVI core areas.

The Community Value Index list of top community value providers was recently published in Cleverley & Associates’ “State of the Hospital Industry – 2009 Edition.” Cleverley & Associates, based out of Columbus, Ohio, is a recognized healthcare fi nancial consulting fi rm specializing in operational benchmarking and performance enhancement strategies.

According to Cleverley & Associates, its Community Value Index suggests that a hospital provides value to the community when it is fi nancially viable, is appropriately reinvesting back into the facility, maintains a low cost structure, has reasonable charges, and provides high quality care to patients.

Written by William O. Cleverley, Ph.D., a noted expert in healthcare fi nance, the “State of the Hospital Industry” publication reports selected measures of hospital fi nancial performance and discusses the critical factors that lie behind them. The publication focuses on the U.S. acute-care hospital industry from 2005-2007.

sing Index

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Rutherford Hospital Foundation, Inc.

Mr. Brent WashburnChairman

Mrs. Diane S. Hamrick Vice-Chairman

Mrs. Kerry GilesSecretary

Dr. Tom JaskiTreasurer

Mr. David Bixler

Dr. Joe Godfrey

Dr. Jack Hoopes

Rev. Billy Honeycutt

Mrs. Joan King

Mr. Paul McIntosh

Dr. Michael W. Roberts

Mr. J. Gordon Scott, III

Dr. Michael Wheeler

The Foundation Board of Directors is committed to the mission of securing gifts of support for Rutherford Hospital, Inc. Each board member recognizes the responsibility of good stewardship for the gifts that are received.

These experienced hearts, hands and minds want to ensure that vital health programs and services are developed and sustained. The Foundation Directors believe strongly in the value of our hospital to all in the community and we strive to make it possible for funds to be available to respond to the medical needs now and in the future.

2009 Board of Directors

2009 was the year to try different approaches to raise funds for hospital programs and services. What a delightful year we experienced! Our generous supporters blessed the Rutherford Hospital Foundation with more gifts than ever before. We received 683 donations for $307,331 in total income. Both the number of gifts and the total giving were up in 2009, a testament to the generosity of the people of our county during times of need.

Among our important milestones:

• Received second-year funding from The Duke Endowment to pay for our Cancer Resource Center renovation and partially fund the Breast Cancer Navigator program. 67 women were given compassionate care and access to additional resources during their cancer treatment and recovery as a result of this grant.

• Presented the 2009 Stargazer Ball with a “Bettin’ On Better Times” theme. Over 200 guests attended. We were able to secure donated the space for our event, allowing us to generate additional proceeds from the Ball.

• Paid Lifeline subscriptions for 51 precious seniors who were unable to afford this life-saving service. This is an increase of 10 subscriptions over 2008.

• Totally funded Camp WheezKnot through sponsorships, grants and unrestricted gifts. 39 children attended the summer camp. They enjoyed a medically supervised recreational camp and learned to better manage their symptoms of childhood asthma.

• Presented the 22nd Annual Golf Classic at Cleghorn Plantation. 224 players, 40 volunteers and over 100 sponsors participated.

• Received $18,020 in grants other from small, regional grantors. One of these grants allowed our Cancer Resource Center to offer tobacco prevention in our county schools.

• Completed a signifi cant real estate transaction from Buster and Louise Huggins. This generous gift resulted in a benefi t to the Foundation of over $80,000.

• Offered “Fashion with a Passion” women’s event with Doncaster and Covenant Advisory Group to raise money for mammograms for women without health insurance. 45 women were given mammograms as a result of this event.

• Established Foundation Committees to address four donor prospect constituencies. These committees have developed the framework and strategy to enter a signifi cant fund-raising campaign for 2010. Over 60 community volunteers have committed their time and energy toward this campaign.

On behalf of the Board of Directors, I extend a sincere “Thank you” to our supporters and volunteers for a successful year of service. Our Foundation is grateful for every gift of time, talent and treasure given to support quality health care offered through our hospital.

Jill W. Miracle Executive Director Rutherford Hospital Foundation, Inc. (828) 286-5070

“Gifts That Touched Lives” in 2009

Foundation Chairman Brent Washburn welcomes guests to the 22nd Annual Golf Classic.

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• Stories and descriptions of how RHI is benefi ting the community and the region And much more.

Created by a company called Medseek, the new site is more pleasing to the eye, gives the consumer a greater perspective about RHI’s capabilities, and allows for expanding features as well. Podcasts, message boards, chat rooms and online bill payment are all possibilities in the very near future.

“We’re excited about the new site, but we also are excited about what can be added to it,” said Matt Webber, RHI director of marketing. “The internet is changing constantly and so are the consumers who prefer to get

their information from the internet. We feel fortunate that RHI can now adapt to the needs of its consumers more easily with the creation of this site.”

Webber added that one of the fi rst features that visitors will fi nd on the homepage of the new site is an item called “Share Your Experience.” Here, patients and family members can share with others their positive experiences at RHI. It’s just one of the many ways the new website will invite the community to be an active part in the life of RHI.

“I think the public will be pleased with the look and feel of the new site,” Webber said, “because this site was designed with their needs in mind.”

A Year In Review

Rutherford Hospital in March implemented a new strategy to process its Emergency Department patients more quickly and the resulting patient satisfaction scores have placed RHI among national leaders, according to Press Ganey, which measures healthcare patient satisfaction for 3,000 healthcare institutions nationally.

Since March 9, when RHI adopted a more effi cient way of receiving E.D. patients and placing them into treatment rooms with fewer delays, patients have ranked the Emergency Department at Rutherford Hospital overall in the 99th percentile nationally. That means RHI’s scores place among the top 1 percent of all Emergency Departments in the United States that treat 30,000 - 40,000 patients per year. In addition, patients rank their experience at RHI in the 99th percentile of all North Carolina hospitals. RHI’s overall score of 90.6 was signifi cantly greater than the average score of all other North Carolina hospitals, which was 82.0.

The new process involves having a hospital staff member greet each patient at the Emergency entrance between 8:30 a.m. and 10:30 p.m. The greeter, who is a Patient and Family Support staff member, quickly takes basic information from the patient and then leads them directly into the Triage area if it is not occupied by another patient. Once there, the Triage nurse performs a quick assessment and conducts a short registration with the patient before taking the patient immediately back to an available room where treatment begins.

“The new process was developed by a variety of staff members and is a way to help decrease wait times for emergency patients,” said Joann Ullrich, RHI’s Emergency Department nurse manager. “After starting the new process, the E.D. staff quickly realized that it helps meet our patients’ needs more promptly and keeps the fl ow going; thus, wait times are lessened. The majority of time this process occurs without delay. This has made us more effi cient and makes sure the patient is seen more quickly than ever before.”

As part of an internal recognition program, the Emergency Department nursing staff recently won an RHI performance award for having the highest overall patient satisfaction scores in the entire organization for the March 2009-May 2009 quarter, a feat never before accomplished for Ullrich’s staff.

It’s Here: MyRutherfordHospital.com continued from page 3.

New Emergency Department Process Impacts Patient Satisfaction

Debra Collazo is one of the RHI patient liaisons who assists patients through the new Emergency Department process begun in March 2009.

Rutherford Hospital, Inc. Annual Report 2009 13 1 3

RUTHERFORD HOSPITAL, INC. SUMMARY OF PATIENT SERVICES

Fiscal Year Ending September 30

FISCAL YEAR FISCAL YEAR2009 2008 % CHANGE

Patients Admitted-Hospital* 5,829 5,931 -1.7%Patient Days-Hospital* 21,398 22,510 -4.9%Patient Days-Observation* 541 811 -33.3%Average Daily Census-Total* 59.9 63.7 -5.9%Total Licensed Beds* 143 143 N/CAverage Length of Stay-Hosptial* 3.7 3.8 -3.3%Emergency Department Visits 40,048 37,180 7.7%Outpatient Visits 55,825 62,512 -10.7%Home Care Visits 29,108 25,172 15.6%Hours of Companion Care 10,503 13,513 -22.3%Physician Clinic Visits 60,477 52,312 15.6%Surgical Cases 3,688 3,569 3.3%Cardiac Catheterizations 50 82 -39.0%MRI Procedures 3,127 3,337 -6.3%CT Scan Procedures 12,588 12,558 0.2%Volunteer Hours (Adult & Teen) 25,454 25,157 1.2%Number of Paid Full Time Equivalent Personnel 696 711 -2.1%

* Excludes Newborns

Giving Back To Our CommunityCommunity Benefi t Report Rutherford Hospital has supported its community for more than 100 years with quality medical care, wellness programs

and vital healthcare services. Community Benefi t is collaboration with a community to benefi t its residents – particularly those below the poverty level, minorities, and underserved groups – by improving healthcare status and improving quality of life. Improving access to services, health promotion and education, disease prevention and support groups are among the services and activities that address these community health needs. As a not-for-profi t hospital, RHI embraces its role as the healthcare provider of choice for our community.

Community Benefi tReport FY 2009

Charity Care (at cost) $2,568,766

Medicaid Losses (at cost) $6,461,690

Community Services $42,565

Community Benefi t Total $9,073,021

Rutherford Hospital, Inc. Annual Report 2009 5 5

New MRI “Puts Us at the Forefront” A new MRI has been installed in the hospital and Claude Waters, Director of Radiology, said the benefi ts of having this new piece of equipment – and having it in a new location – are enormous.

“First, people will appreciate that we’ve moved our MRI services inside the hospital instead of having it in a trailer outside the building,” Waters explained. “So the

convenience factor alone will make people very happy. Also, this puts all of our imaging services in one physical

space within the hospital.”

Dr. Luke Person, radiologist, added that the new MRI is an upgrade from the hospital’s current MRI and will provide better images and better diagnoses for patients. “It puts us at the forefront of imaging technology,” said Person. “There’s no need to travel elsewhere. We have it here at home.”

Perhaps the greatest technological advantage the

new MRI will provide is more detailed breast exams, something that Dr. Person says will give more peace of mind to patients and better information to physicians treating breast health issues. Breast MRIs and MRI-guided breast biopsies are more thorough ways to detect breast cancer, he said, and all of that means greater accuracy of test results.

“In addition to the breast health issues this MRI will address, we will experience better quality of all MRI imaging,” Person added. “We will see improvements in MRIs of the pelvis, abdomen, and small joints, and we will see better imaging of the spine in cancer patients. The end result is dramatic improvements for our patients and the physicians who treat them.”

Douglas Sheets Named President of NC Medical SocietyDouglas D. Sheets, MD, of Rutherford OB/GYN Associates was installed as the 156th President of the North Carolina Medical Society in October during the Society’s Annual Meeting in Raleigh. Dr. Sheets succeeds Albert J. Osbahr, MD, of Hickory, who served as president during the past year.

A strong advocate for physicians who practice in rural areas and smaller communities, Dr. Sheets expects to address a variety of issues during his tenure as president of the Medical Society.

“Along with the many issues tied to health care system reform, I expect to advocate for patient safety and welfare while representing the Medical Society in the coming year,” Dr. Sheets said. “We want to provide access to quality health care for all citizens of our state.”

Dr. Sheets grew up in Churubusco, Indiana, where his mother and father were the only EMTs in the area. He received his undergraduate and medical degrees from Indiana University and completed his residency training in OB/GYN and family practice at Bayfront Medical Center in St. Petersburg, Florida.

Dr. Sheets says he has delivered almost 4,000 babies since he and his wife Kay moved to Rutherfordton in 1978, when he entered private practice with Rutherford OB/GYN Associates and joined the staff at Rutherford Hospital. He has served as Chief for the OB-GYN service and as Chief of Staff. He continues to serve on several hospital committees.

Outside of his practice, Dr. Sheets enjoys making pottery and stained glass, hiking, photography and spending time with his three adult children who live in the area.

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Douglas Sheets, MD (right) takes the gavel as president of the NC Medical Society.

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Financial RUTHERFORD HOSPITAL, INC. SUMMARY OF REVENUE AND EXPENSES Fiscal Year Ending September 30

FISCAL YEAR FISCAL YEAR2009 2008 % CHANGE

SCHEDULE OF REVENUE

SCHEDULE OF EXPENSES

Inpatient Services $80,260,315 $71,705,440 11.9%

Outpatient Services 135,713,730 103,114,172 31.6%

Other Related Non patient Service -3,600,932 5,426,918 -166.4%

Grants and Contributions 112,129 282,503 -60.3%

Unrealized Gains on Funds Held for Expansion and Improvement 7,613,746 -9,264,328 -182.2%

Total Gross Revenue $220,098,988 $171,264,705 28.5%

Revenue Deductions:Write-offs for Patients Unable or Unwilling to Pay -22,540,001 -15,220,057 48.1%

Adjustments for Medicare, Medicaid, Managed Care and Other Payors -119,762,090 -85,259,603 40.5%

TOTALS $77,796,897 $70,785,045 9.9%

Salaries, wages & employee benefits $48,128,719 $46,025,966 4.6%

Supplies, Services & Repairs 24,011,832 24,472,478 -1.9%

Professional Fees 2,928,121 2,070,446 41.4%

Depreciation & Amortization 5,775,863 5,762,975 0.2%

Interest & Debt Retirement 1,061,887 1,134,927 -6.4%

Funds for expansion and improvement of patient services and facilities -4,109,525 -8,681,747 -52.7%

TOTALS $77,796,897 $70,785,045 9.9%

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A Year In Review

New Cancer Comfort Room Created Enduring cancer and the chemotherapy treatments

that often accompany the diagnosis can be as draining emotionally as they are physically. The surroundings of the treatment area for cancer patients, therefore, can actually serve an effective purpose in the healing process. Katie Miller, a patient and family support liaison at RHI,

saw this as an opportunity to help enhance a cancer treatment room on the 2nd Medical Unit.

“After visiting a cancer patient, I had the desire to provide a more comfortable room for the cancer patients as they battle for their life. I thought the patients deserved only the best for the last days,” said Miller. “The fi rst patient to utilize the newly designed room was a newly diagnosed cancer patient. The nurse told me she was coming from ICU and was very sick. I asked a coworker to visit her and bring her a gift bag. The patient was so appreciative and thanked her with tears. Throughout the week the nurse said the patient kept commenting on how she loved the pillow that was in the gift bag. It was the perfect size to hold her head up on the chair or to cradle her swollen arm while in bed. She said she also enjoyed the plants and soft music that were in the room as well.”

RHI is grateful to the Rutherford Hospital Auxiliary for providing the funds to make this room so unique for patients who need this special touch during a diffi cult time in their lives.

A groundbreaking ceremony was held in August for a new addition to the offi ces of Rutherford Orthopaedics. Surgeons from Rutherford Orthopaedics joined RHI board members, administrators and staff in announcing the project, which is expected to be completed in 2010.

“The addition at Rutherford Orthopaedics is in response to growing demand by patients and the surrounding communities to provide an even greater volume of orthopedic services and care,” according to Dave Bixler, Rutherford Hospital president and CEO. Rutherford Orthopaedics employs all board-certifi ed orthopedic surgeons Drs. Mike Roberts and Chip Bond, along with Dr. Jason Glover, who is a fellowship-trained foot and ankle specialist.

Rutherford Orthopaedics has consistently produced among the highest patient satisfaction results in the organization, Bixler added. In order to more fully serve the growing

numbers of patients at Rutherford Orthopaedics, the practice is expanding so that appointments can be made more quickly and the coverage of surgeons at the hospital can continue to span 24 hours a day, seven days a week.

Rutherford Orthopaedics Breaks Ground to Expand Facility

RHI administrators and trustees joined the physicians from Rutherford Orthopaedics to break ground on the expansion.

Rutherford Hospital, Inc. Annual Report 2009 11 1 1

New EKG Process Is Cutting-Edge The hospital was proud to have implemented a new

electronic EKG management system in the fall. Five new EKG machines were purchased to interface with

computers to make electronic interpretation possible. Working in conjunction with our PACS system EKGs can now be accessed from offi ce or even home computers and confi rmed within minutes. The process has received good feedback from physicians who read EKGs and the hospital immediately saw the positive effects from the technology. “We’re

happy to help physicians deliver more effective

patient care,” said Joyce McCain, director of cardiopulmonary services. “To have what we have for a hospital our size is pretty amazing.”

Baby Expo 2009 A Big Success In August Rutherford Hospital held its “Baby Expo 2009.”

Previously the event was called the RHI Baby Fair, but the name change means that the focus has shifted more toward information and education about services and programs for expectant parents, new parents, grandparents and those planning a pregnancy, according to Lucy Calhoun, RNC, the event’s organizer and RHI’s coordinator of Great Expectations. Among other activities, attendees met Sharai Amaya, MD, the newest OB/GYN physician at Rutherford OB/GYN Associates, as well as other practice physicians Jim Godfrey, MD, Jeff Sabolovic, MD and Celeste Wiltse, MD.

Physicians from Rutherford OB/GYN Associates greet visitors at the 2009 Baby Expo.

RHI Supports Kids with Camps Camp G.O.L.D. Rush - Teaching kids to control

diabetes so diabetes doesn’t control them is what Camp G.O.L.D Rush is all about. The fi rst-ever installment

of this camp, organized by Anita Phillips of the RHI Education Department and

held this past summer, combined sports and fun with diabetes education and support to give children with

diabetes, and their families, the tools they need to live happy, healthy, balanced lives. Campers heard from

a tri-athlete who has learned to manage diabetes and also enjoyed a hay ride, a puppet show, crafts, lunch, petting and feeding two llamas, and learning how to make healthy snacks.

Camp WheezKnot - RHI also presented “Camp WheezKnot” again this past summer. The goal is to offer a fun and safe camp for children ages 7-12 years old who have common needs – to manage their chronic asthma, have a medically supervised camp experience and make friends for life! Over 25 volunteers staffed the camp including regular camp leaders, RHI medical staff, nurses and respiratory therapists. In addition to educational sessions, the camp provided sports activities, including swimming, boating, fi shing, and healthy foods, crafts and other entertainment.

t d

Rutherford Hospital, Inc. Annual Report 2009 7 7

New Cancer Resource Centerand Patient NavigatorProgram Established Rutherford Hospital partnered with The Duke

Endowment to build a new Cancer Resource Center and initiate the Cancer Care Patient Navigator Program.

The partnership with The Duke Endowment to expand the existing Cancer Outreach Program has placed Rutherford Hospital in a position to offer cancer patients and their families many educational and support programs seen only at major cancer centers.

When you are facing cancer, knowing that you don’t have to do it alone can make all the difference. A Patient Navigator is an experienced cancer care nurse who works with patients from the time of their diagnosis and lends support through treatment, recovery and survivorship. Dee Allen, RN, a cancer survivor herself, currently serves as

the Patient Navigator. This program helps patients and their families to better understand their diagnosis and treatment as well as provide emotional support along the way. As the treatment for cancer becomes increasingly complex, it is important to know that Rutherford Hospital is here to provide you with knowledgeable and caring medical professionals who will be with you every step of the way.

The new Cancer Resource Center, unveiled to the public in April and conveniently located in the OneSource Healthcare Services building in Forest City, is a place where patients come for support and resources. A compassionate nurse experienced in cancer care is available to help with Internet searches and answers questions about treatment, side effects and fi nancial resources. An assortment of educational materials, internet access, wigs, hats, scarves and prosthesis are

available free to those who need them. Support programs

and groups are offered which help patients meet other cancer survivors and learn ways to better cope with their treatment and side effects.

Matt Rees, MD, oncologist, with Jamie Ingraham, Cancer Outreach Coordinator at the opening of the Cancer Resource Center.

Dee Allen, RN, cancer navigator

Members of the Pink Ladies cancer survivors group celebrate the opening of the Cancer Resource Center.

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A Year In Review

RHI announced this year the opening of a new offi ce for the mental health clinic portion of its Insights Psychiatric Resources. The new location is 393 Oak St. in Spindale, NC. Insights Psychiatric Resources comprises two distinct programs - the mental health clinic that has relocated to Spindale and an inpatient behavioral health unit located on the 5th fl oor of Rutherford Hospital.

Insights Psychiatric Resources, led by Mathew Joseph, M.D., provides advanced treatment for depression, anxiety, bipolar and other mental health problems for adolescents, adults and seniors.

CEO Dave Bixler said, “We have earned a regional reputation for high quality care and service. That quality is grounded in our exceptional medical and clinical staff and their sensitivity to the needs and concerns of our patients and families. Through our effective treatment services, many people have found new hope and new tools for healthy living.”

Insights Psychiatric Resources Now Housed in Spindale Offi ce

Longtime VP Retires Bill Chapman, RHI’s Vice President for Facility Services,

retired in September after 38 years of service to the organization. A crowd fi lled the Norris Biggs classroom at the hospital to wish Chapman well and to hear fond recollections of his nearly four decades of service. Among those present was Bob Jones, former CEO of the hospital, who worked with Chapman for over a decade.

“Bill is a phenomenal person and the absolute best I have ever worked with when it comes to facility services,” Jones said. “He performed his job with the utmost professionalism and was a man of integrity and honesty every day he came to work here.”

Chapman said, “I thank God for the chance to work at a job I love with tremendous people. I owe so much to my family and my coworkers who helped through the good times and the tough times.”

Hospital NamesNew CFO Mary Millington was

recently named Chief Financial Offi cer (CFO) at Rutherford Hospital after a national search. Millington comes to RHI from Northwest Medical Center in Bentonville, Arkansas, where she served as CFO since 2003. She succeeded Jim Bross in the CFO position.Bill Chapman and his family at his retirement ceremonies.

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A Year In Review

Cancer Survivors Try Hand at Dragon Boat Racing“Team Mashed and Splashed,” a group of breast cancer survivors from Rutherford and Spartanburg counties, competed in its fi rst Dragon Boat Race in August and placed third in their division.

The motivation for these survivors to hit the water and paddle their hearts out was to raise money to support Rutherford Hospital Foundation’s Mammogram Program. The programhelps women who are medically uninsured and unable to afforda screening mammogram obtain one free of charge.

“This is one of many fund raising events that support the Mammogram Program but none is more appreciated then the effort these cancer survivors put forward to help others,” stated Jill Miracle, Executive Director of Rutherford Hospital’s Foundation. She added, “Each year the Foundation provides screening mammograms for 80-100 women in our county and the majority of the funding comes from individuals or groups of women committed to helping others.”

The Dragon Boat Race in August was part of the Hickory Nut Gorge Olympiad event that raises money for local charities. Jamie Ingraham, Cancer Outreach Coordinator for Rutherford Hospital and the team’s captain, said, “It is an honor to be designated as one of the charities supported by the Olympiad. There couldn’t be a better testament than the spirit of these ladies that there is life after a cancer diagnosis. I hope this encourages other cancer survivors to join a support group and get involved.”

Team Mashed and Splashed competed in its fi rst Dragon Boat Race in August.

Helping the Uninsured Receive Mammograms Haley Givens, 12, remembers how being diagnosed with cancer never stopped her grandmother from dancing with the seniors group and volunteering to help others.

Since then Haley has worked hard to make a difference. She started by donating 10 inches of her hair to the Locks of Love program. This program makes wigs from donated hair for women and children who are undergoing treatment for cancer. But Haley did not stop there; her next project was to collect aluminum pop-tops to raise money for the Mammogram Program sponsored by the Rutherford Hospital Foundation. This Cancer Outreach Program helps women, who might not otherwise be able to afford it, obtain a mammogram.

This past spring Haley decided there was still more she could do. Along with her grandmother and mother, Haley started to collect yard sale items. Haley and her grandmother Freda Ledford proudly presented $200 to the Pink Ladies Cancer Support Group of Rutherford Hospital at one of the group’s meetings. When asked what she would like to accomplish with her donation, Haley stated, “I want my donation to help ladies here in our community, to help them get mammograms.”

Cancer Survivor’s Unique Idea Thanks go to Arlene Coberg, a breast cancer survivor and member of the Pink Ladies Cancer Support Group.

She was saddened to hear that many women in our county forgo having their annual mammogram because they do not have medical insurance and cannot afford the cost of a mammogram.

She purchased a dozen ceramic piggy banks, spray painted them pink, dressed them up with pink ribbons and hit the road. Along with the kindness of local businesses, she has made it possible

for everyone to donate their change and help women who need a mammogram. The proceeds go to the

Rutherford Hospital Foundation’s Mammogram Program and 100 percent of the funds are used to

provide mammograms for women in our community. “In just two weeks Arlene’s pink piggy banks collected

over $100. What a difference this will make for women in our county!” states Jamie Ingraham, RN, BSN, Cancer Outreach Coordinator for Rutherford Hospital.

9

RHI, UNC Partner In Fight Against Cancer This year Rutherford Hospital and Dr. Matt Rees,

oncologist, announced a partnership with graduate students from the University of North Carolina School of Public Health and Walter Shepherd, Executive Director of the North Carolina Comprehensive Cancer Program, in the fi ght against cancer.

The joint project to develop a computerized cancer risk assessment tool was launched this fall. A computer program will provide individuals with a personalized report outlining their risk of being diagnosed with the six most common types of cancers. The level of an individual’s risk is based on

their answers to questions about their family history and health practices. Along with the capability to provide a personalized cancer risk assessment, the

program will provide an individualized plan of how to reduce the risk of being diagnosed with cancer and ways to fi nd cancer in its earliest stages when

treatment is most effective.

The Cancer Outreach Program plans to offer the personalized cancer risk assessment to the community

free of charge at the Cancer Resource Center located in Forest City, at community health fairs and on the hospital’s website. Rutherford County will be the pilot county for the project and there are plans to launch the project statewide through the North Carolina Comprehensive Cancer Program. The computer program should be available for use in Rutherford County in the spring of 2010.

New Physicians Join Medical Staff

Rutherford Hospital Inc. was pleased to welcomethree new physicians to the medical staff in 2009.

Sharai Amaya, M.D., an Obstetrician/Gynecologist, joined Rutherford OB/GYN Associates in July. A native of Gaffney, SC, Dr. Amaya attended Erskine College, the Medical University of South Carolina in Charleston, and completed her residency in the Greenville Hospital System where she achieved the highest academic standing in the residency. Dr. Amaya was also awarded the Donald F. Richardson National Research Award by the American College of Obstetricians and Gynecologists for research regarding endometriosis.

Dr. Mary Campagna-Gibson, neurologist, also recently joined Rutherford Internal Medicine Associates. With expertise in neurology and sleep medicine, Dr. Campagna-Gibson has a clinical interest in all aspects of neurodiagnostic medicine, including epilepsy, sleep studies and nerve conduction studies.

Dr. Rick Halliday joined the RHI team of Hospitalists from Craven Regional Medical Center in New Bern, NC. He graduated from North Carolina State University and completed his residency in Greenville NC. He practiced hospitalist medicine in Scottsdale and Phoenix, AZ, before returning to NC to practice at Craven Hospital. As of September 1st he began serving as the Medical Director of the hospitalist program at RHI. A hospitalist is a physician whose primary focus is the medical care of hospitalized patients.

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Graduate students from UNC Chapel Hill met with hospital and community members to discuss the cancer risk assessment tool.

Haley Givens

Arlene Coberg