Bridging a Path to aHealthier Community

2005AnnualReport

Inland Northwest Health Services2005 Introduction from the CEO

INHS is a company of stories.They are the stories of our customers — the

health care providers constantly in search of

better, safer ways to meet the needs of their

patients. They are the stories of our patients

going through the rehabilitation process with

the single goal of getting back to families,

home and work. They are the stories of people

anticipating the birth of a child or trying to

break the grip of tobacco in their lives. They

are the stories of lives saved by air ambulance

transport to a trauma center. They are the stories

of the employees of all INHS service lines and

the lives they touch and improve on a daily basis.

Each of these stories is linked by the vision that

created our company more than a decade ago.

It is a vision built on the idea that collaboration

is the most fundamental path to success for any

venture. It is also an apt description of how our

health care system operates; no individual can care for a patient in isolation. Physicians work with nurses

and pharmacists who work with therapists who depend on facilities staff and administrators. Successful

collaboration is the essence of effective health care. It is also the principal guiding our growth — growth

that is occurring despite a rapidly changing social and political environment.

Thanks to the continued support of our sponsors, Empire Health Services and Providence Health Care,

INHS remains focused on the many opportunities the future offers.

To the board members, community volunteers, employees, patients and their families who have been

part of our story in 2005, I thank you. We look forward to the continuing evolution of INHS and the

many, many lives we will touch in the years ahead.

Thomas M. Fritz

Chief Executive Officer

INHS Bridges a Path to a Healthier Community

A driving force behind INHS’ efforts is

the extensive health information network

managed by Information Resource Manage-

ment. The network securely connects 32

hospitals to 2.4 million electronic patient

records and provides more than 1,000

physicians and nurses with clinical infor-

mation such as patient history, physician

orders, medication information, laboratory

results and radiology images.

“The technology gives us instant access

to critical patient information,” said Robin

Shaw, M.D., emergency physician at

Kootenai Medical Center in Coeur d’Alene,

Idaho. “It enables us to focus on the task

at hand and quickly and safely treat the

patient, while at the same time reduce the

probability of error associated with mis-

communication or illegible orders.”

INHS may be a simple acronym for a company name,

but for thousands living in the Inland Northwest, the

four letters represent much more.

“INHS touches the lives of patients in so many different

aspects — from Northwest MedStar’s critical transport

of patients and CHER’s myriad of educational offerings,

to the leading-edge work of IRM and Northwest

TeleHealth to the efforts of Children’s Miracle Network

and St. Luke’s Rehabilitation Institute,” said Jorge

Bombel, vice chair of the INHS board of directors and

a member of the board of directors for Providence

Health Care.

INHS and its divisions work on behalf of its sponsoring

hospitals — Deaconess Medical Center, Holy Family

Hospital, Sacred Heart Medical Center, and Valley

Hospital and Medical Center — to bring safer, more

cost-effective, and higher quality care to Spokane

and the region.

“INHS and its quality programs andservices continue to make signifi-cant contributions to health carein our region. Their work is vital tothe health of the people living in

our community.”

— Rich Hadley, President and CEO of the Spokane Regional Chamber of Commerce

The IRM network is the backbone formany technologies currently in place atregional hospitals to help physicians andnurses provide safer and more efficientpatient care.

Robin Shaw, M.D.

Kootenai Medical Center

Care Fills Community Need

Chad knows first-hand the importance of

St. Luke’s Rehabilitation Institute to his son

Blake, and to others who depend on its pro-

grams. But as a flight nurse for Northwest

MedStar, Chad has an even greater appreci-

ation for INHS and the impact all of its

divisions have on the lives of those in the

region.

“Northwest MedStar’s critical care transport

makes a huge difference for the people in

our region, especially for those in the outlying

areas,” he said. “MedStar, St. Luke’s, and

other INHS divisions provide people access

to quality health care who otherwise might

not have it.”

Care Fills Community Need

When 5-year-old Blake asks for a drink of water, it is amoment of triumph for his parents Sam and Chad.

“For any other parent, it would be like their child just broughthome a report card with straight A’s,” Chad said.

Diagnosed with autism at two, Blake undergoes hoursof intensive therapy daily to help him communicate, eat,and play. While what may be viewed by most as an ordinarypart of life, Blake asking for a drink of water is a majorbreakthrough.

“Blake has made huge progress,” Chad said. “His therapyat St. Luke’s Rehabilitation Institute has been a major partof that.”

There was a time when Sam and Chad were faced with thepossibility that St. Luke’s would no longer be an option fortheir son. A change in the state’s reimbursement policy nearlyforced the closing of the outpatient pediatric program, whichwould have left 600 children without the therapy they need.

“There would have been no place for Blake and for otherkids with developmental needs to go,” Chad said. “St. Luke’sis vitally important to our community.”

Thanks to the efforts of St. Luke’s staff, along with WashingtonState Governor Christine Gregoire and Senator Lisa Brown,a new funding solution now ensures children will continueto benefit from St. Luke’s pediatric outpatient program.

“One of the most important things we can do for our kidsis to make sure they are healthy and have a chance to thrive.Every child should have access to quality health care, regard-less of their families’ circumstances,” Governor Gregoiresaid. “Thanks to St Luke’s, all children regardless of the kindof insurance they have or don’t have, will get the kind of carethey need, when they need it.”

In June, St. Luke’s

pediatric outpatient

program was officially

renamed Northwest

Center for Children’s

Rehabilitation at St.

Luke’s.

INHS Innovation Connects People to Health Care

Rural residents Carol Schuh and her husband Art of

Harrington, Wash. are grateful for the diabetes education

provided by Community Health Education and Resources

(CHER). In fact, they credit the classes for potentially

saving Carol’s life.

“We learned we were doing my insulin wrong and making

my diabetes worse,” Carol explained. “Now we know how

to do it right and better manage the disease.”

Instead of driving the 50 miles to Spokane for the classes

Carol needed, the retired couple only had to make a short

13-mile trek to nearby Davenport, thanks to a partnership

between CHER and Northwest TeleHealth.

Last year, CHER provided diabetes education over North-

west TeleHealth’s video conferencing network to 372 people

living as far away as Republic, Wash., a 100-mile drive from

Spokane. This was more than triple the number of partici-

pants in 2004.

“With the increase in diabetes across the nation, rural communities are often experiencing

similar increases, and the lack of access to education has had a profound impact on patient

outcomes,” said Jennifer Polello, Health Education Manager for the CHER diabetes program.

“The collaboration between CHER and Northwest TeleHealth allows us to serve all of

Eastern Washington and bridge the gap in diabetes education to the rural communities.”

Jennifer Polello, Health

Education Manager for

CHER

“With the increase in diabetes across the nation, rural communities are often experiencing similar increases and the lack of access to education has had a profound

impact on patient outcomes.” — Jennifer Polello

“The future in health care depends on creating world-classhealth care services and quality care by using technology.INHS is uniquely positioned to do just that.”

— Christopher Marr, chair, INHS Board of Directors

IRM developed real-time

resource monitoring for the

emergency room, inpatient

units and operating rooms.

Information Resource Management (IRM)

Accomplishments

“One of the best improvements IRM helped us

make was the change from paper to electronic patient

records. The real-time records save us time, help us

better allocate resources and preplan for patient

throughput. They help us make decisions about

patient care in a more efficient and timely manner.

Michelle EganAssistant Nurse Manager, Sacred Heart Medical Center

• Fifty-five analysts were added in a year that started with the “go live” of a complete hospital informationsystem for Magic Valley Regional Medical Center in Twin Falls, Idaho and ended with the kickoff of two newimplementations — Mason General Hospital in Shelton, Washington and Bonner General Hospital in Sandpoint,Idaho. At year’s end, 32 facilities were supported by IRM and overall revenues increased 33 percent.

• Designed and developed a system which dramatically improved productivity and efficiency for Sacred Heart Medical Center leading to interest from other hospitals.

• Developed a sophisticated software linkage between the hospital information system and a physician electronicmedical record (EMR) system. The new interface provides clinical results to the hospitals, and delivers ordersto the physician’s EMR in the office. The unique connection allows a physician to schedule tests and admit patients, from the desktop. Over 100 physicians signed on in 2005.

• INHS and area leaders led an effort which resulted in INHS receiving designation as a Regional Health InformationOrganization (RHIO), one of the first in the United States. The designation aligns Spokane and regional hospitalswith the Federal Government’s improvement and efficiency programs. 

“ TeleER makes care flow smoother and gets the patientwhere they need to be sooner — resulting in better outcomesfor the patient.” — Chris McGlothlen

Northwest TeleHealth

• Better outcomes for rural patients were made possible through TeleER. Initiated in three sites, TeleER ‘virtually’connects rural emergency rooms to urban specialists and provides around-the-clock access to a ‘virtual bed’staffed by specialists in emergency services, trauma, wound care and pediatrics.

• Trained and supported 64 Northwest TeleHealth site coordinators.

• Coordinated 2,000 video conferencing events, a 50 percent increase over the previous year.

• Installed six new TelePharmacy sites in Washington at Othello Community Hospital, Othello; St. Joseph’s Hospital, Chewelah; Lincoln County, Davenport; Pullman Regional Hospital, Pullman; Island Hospital, Anacortes;and Mid Valley Hospital, Omak.

• Installed new TeleHealth sites in Grangeville, Idaho, and Inchelium and Ritzville, Washington.

• Presented at numerous national and regional conferences on video conferencing, TeleER, and EMSLive@Nite™.

Accomplishments

Northwest Telehealth increased

video conferencing systems to

95 and deployed over 60 different

locations and institutions.

“As a small community hospital, we have limited on-site

resources. Northwest TeleHealth’s TeleER gives us

immediate access to urban specialists. Having this exper-

tise at our fingertips allows us to increase the level of care

to the residents of this rural community.

We’re also excited about the project’s enhanced “virtual

bed” technology, which will give remote specialists all

the data — radiology images, patient records, video

conferencing — in one system, further streamlining

patient care.”

Chris McGlothlen, Physician AssistantDirector, Emergency Room, Newport Community Hospital

“ We’re confident that with the help of CHER, our employees will be better equipped to manage their health care and become betterconsumers of health care services.” — Carol Klein

CHER’s Parenting Programs

educated 1,053 parents in

prepared childbirth, breast-

feeding and baby care classes.

Community Health Education and Resources (CHER)

“As part of Itron’s new company-wide wellness pro-

gram, we’ve partnered with CHER to perform onsite

health screenings for employees at our corporate

offices in Spokane and four other major sites through-

out the United States.

We are very impressed with CHER’s high level of

professionalism. Our employees are enthusiastic

about the screenings and have given very positive

feedback. CHER is knowledgeable, attentive and

respectful to the confidentiality of our employees.”

Carol KleinManager of Corporate BenefitsItron, Inc.

Accomplishments

• Health@work™ contracted with 29 regional businesses (representing 3,645 employees) to administer CHER’sworksite wellness program.

• 14,479 people in the Spokane community benefited from diabetes, parenting, preventative, and community health education.

• Camp Fun in the Sun, CHER’s camp for children with diabetes, hosted 135 children.

• Health@school™ partnered with Spokane Public Schools to develop a diabetes education curriculum and online learning tools for Washington school district employees.

• Implemented Step to It, a walking/exercising challenge which uses CHER’s online tracking web site, for clientsof the O.C. Olson Diabetes Education Center.

• Sponsored the Spokane leg of Governor Gregoire’s Walk Across Washington challenge and hosted 193 peoplewho walked a designated course through Riverfront Park.

• Nearly 200 teens learned safe babysitting tech-niques at CHER’s Babysitting Basics classes.

“Ten days after major surgery on my back, I arrived at

St. Luke’s Rehabilitation Institute extremely weak,

using a walker, and hardly moving without help.

After only a week of inpatient therapy, I developed

quite a bit more strength and was able to go home and

continue in the outpatient therapy program. I’m in

better shape than I have been in the last 15 years.”

Bill Marineau, M.D.

Former Medical Director MSC and Spokane resident

“ The staff is fantastic. I can’t say enough about their professionalism,kindness and courtesy. It was an outstanding experience.”— Bill Marineau, M.D.

St. Luke’s Rehabilitation Institute

Accomplishments

Stephan Humphries, M.D.,

was hired in 2005 as the new

medical director for St. Luke’s

Rehabilitation Institute.

• Provided 20,789 inpatient days of service in 2005; St. Luke’s is the largest provider of inpatient rehabilitationservices in the state.

• Provided more than 5,500 individuals with outpatient therapy service, for a total of 74,000 outpatient visits — an increase over 2004.

• Completed 2005 with a positive revenue of $568,471 — a two percent profit margin.

• Expanded the Spokane Center of Occupational Health and Education (COHE) to 13 additional counties.

• Increased patient safety through enhanced electronic medical record systems including Barcode MedicationVerification (BMV) expansion and improved electronic documentation.

• Underwent a successful Department of Health Survey and completed the Periodic Performance Review forthe Joint Commission on Accreditation of Healthcare Organizations (JCAHO).

• Secured $485,198 in new research funding.

“ Northwest MedStar adds yet another dimension to the big picture of EMS services provided in North Idaho.” — Jim Kozak

Northwest MedStar provides

transport for critical care

patients of all ages, including

the tiniest preemies.

Northwest MedStar

“Northwest MedStar is a valuable resource for the region’s

emergency responders, particularly in outlying areas

where ALS (Advanced Life Support) services frequently

are not available and in situations where speed of trans-

port is critical.

Northwest MedStar provides important tools that strength-

en the services of EMS agencies. They deliver outreach

education for agencies that typically don’t have access

to continuing education opportunities. Also, their GPS

receiver distribution program is extremely helpful to

responders in remote areas.”

Jim KozakRegion 1 EMS Consultant, Idaho Emergency Medical Service Bureau

Accomplishments

• Transported 3,284 patients, a three percent increase over the previous year.

• Distributed Global Positioning Satellite (GPS) receivers to 13 fire and emergency medical response (EMS) agencies in North Idaho. Since 1998, Northwest MedStar has distributed 500 GPS receivers to rural emergencyresponders.

• Taught 110 outreach education classes on emergency care to a total of 1,200 medical providers and first responders.

• Enhanced aircraft safety with acquisition and operational use of night vision goggles, installation of an automated ground proximity warning system in the fixed wing aircraft, and installation of an aircraft satellite tracking capability.

• Enhanced patient care with new dispatch and clinical charting software, portable ‘Toughbook’ laptops, improved portable infant incubator, SimBaby advanced infant simulator, and all-in-one portable defibrillators/monitors.

Spokane area patients rely on

Northwest MedVan for trans-

port to physician and hospital

appointments.

“This service is very important to me and to my ability toget the care I need. I don’t know what I would do withoutNorthwest MedVan.” — James Wells Morris

Northwest MedVan and Spokane MedDirect

“I depend on Northwest MedVan to get me to my

doctor appointments about twice a week. They always

pick me up early and get me to my appointments in

plenty of time. They provide great customer service,

their drivers are courteous, and they are willing to

go the extra mile.”

James Wells MorrisSpokane resident

Accomplishments

• Northwest MedVan provided 24,205 rides, driving a total of 148,949 miles transporting patients to their physician and hospital appointments. This includes an increase of 11 percent in wheelchair transports.

• Calls from 9,469 regional physicians requesting patient referral and consultation were connected to Spokanehospitals and physician specialists by Spokane MedDirect resource representatives.

“With a simple toll-free call to Spokane MedDirect, I can quickly find and consult with a specialist or locate a medical office to refer a patient. Spokane MedDirect saves so much time. Their services mean a lot to the providers in our rural area.”

— Sarah Walden, Family Nurse Practitioner, Republic Medical Clinic

Accomplishments

“CMN donates the toys, equipment and technology the kids need during their hospital stay. They play a big part in savingyour child’s life.” — Heather Ingram

Children’s Miracle Network (CMN)

• Twelve member hospitals and pediatric programs were able to purchase morethan 1,000 pieces of equipment to serve the needs of their special little patients.

• Enabled more than 30 families to share their stories with more than 60,000listeners during the KIX Cares for Kids Radiothon. This allowed families to educatethe community about how Children's Miracle Network benefits hospitals.

• Raised more than $1.25 million to benefit local Children’s Miracle Network hospitals and programs.

• Funds raised through Children’s Miracle Network helped more than 48,497 inpatients and 44,384 outpatientsreceive pediatric care.

“My daughter Mailey was first diagnosed with

leukemia when she was two. We have been in and

out of hospitals the four years since. It has been a

long haul.

It is such a blessing to be part of Children’s Miracle

Network. CMN is an excellent resource and a great

way to meet families and kids going through similar

experiences. It’s been an inspiration for Mailey and

me to know we’re not alone.”

Heather IngramSpokane parent

“Our partnership with CMN helps us make the children’slives brighter during their time here facing illness. It helps them be a kid!”— Kim Ward, Nurse Manager, Pediatric Oncology

“We are able to provide the specialty equipment and services that our children deserve.”— Susan Stacey, Nurse Manager, Pediatrics/Pediatrics Intensive Care

Pediatric Treatments

• Oncology — 2,428• Cardiology — 1,000• Congenital Defects — 166• Pulmonary — 95• Orthopedic — 433• Diabetes — 250• Emergency Room — 18,971• Neurology — 363• Other — 67,012

at participating hospitals

Executive Team

Back row (from left):Tom FritzChief Executive Officer

Fred GalushaChief Information Officer

John CraigChief Financial Officer

Front row (from left):Gary SmithChief Operating Officer, St. Luke’s Rehabilitation Institute

Nancy VorheesChief Operating Officer, Inland Northwest Health Partners

Phyllis GabelChief Human Resources Officer

Top photo (from left):Chris Marr, Chair, INHS Board of Directors and President,Swallow Turn Capital

Jorge Bombel, Retired Brigadier General;Vice Chair, INHS Board of Directors

Phil Stalp, Retired Physician

Douglas Norquist, M.D., Northwest OrthopedicSpecialists, PS

Bottom photo (from left):Richard Umdenstock, President, Providence Services

R. Ronald Wells, Wells and Company

Jeff A. Nelson, President & CEO, Empire Health Services

Not pictured:Ryland “Skip” Davis, Chief Executive Officer,Providence Health Care & Sacred Heart Medical Center

2006 Board of Directors

The power of giving to the INHSFoundation means you have theopportunity to:

Reach out —and give hope to a child,

a community member, or

a loved one at St. Luke’s

Rehabilitation Institute.

Connect people —to quality health care

through Northwest Med-

Star and Northwest Med-

Van transport services.

Empower —someone with the know-

ledge and tools they need

to reach their health

goals.

Bridge —rural to urban through

Northwest TeleHealth.

Educate —a child and family on how

to manage their diabetes

through Community

Health Education and

Resources.

INHS Foundation

You have read throughout this publication about

the important impact Inland Northwest Health Serv-

ices has on our region. Through our diverse health

care services, we touch the lives of thousands of

people every day — young and old, living near and

far. They are your neighbors, family members, friends,

and co-workers.

The INHS Foundation is dedicated to the lives we

touch by providing financial resources and generating

public support for the services and programs provided

by INHS. And with your help, we can touch more

lives than ever before.

Contributions to the INHS Foundation are vital to the

services and programs we provide. Your gift can make

a significant difference in our community and improve

life for the people we serve.

John Layman

Chair, INHS Foundation Advisory Board

To make a difference by supportingthe INHS Foundation, call:509-473-6099

“I never knew how much one organi-zation could affect my life andmy family. I was happy to donate and give back to the people who supported me when I needed them

the most.”

— Anonymous Donor

John LaymanBoard PresidentManaging Partner,Layman, Layman, & McKinley

George SchillingerBoard Vice PresidentVice President,Black Rock Development, Inc.

Brian RekofkeBoard Secretary/TreasurerAttorney,Witherspoon-Kelley Attorneys

Marty DickinsonPresident,Spokane Downtown Partnership

Kit QuernaPrincipal,Randall and Danskin

Dr. Larry CohenProfessor and Chairman ofPharmacotherapy Deptartment,Washington State University

Gina SmithCommunity Volunteerand Retired Teacher

Susan PrinceVice President,Pring Corporation

Tyler ClementsOwner,TGC 20 Sales, LLC

Paula JohnsonCommunity Volunteer

2006 INHS Foundation Advisory Board

Brian L. ErnstAttorney,Beemer and Mumma

Pamela D. Elkind, PhDProfessor, Dept. of Sociology,Eastern Washington University

Michael DunfordVice President,Moloney and O’Neill

2006 St. Luke’s Community Advisory Board

John Moyer, MDRetired Physician

Patrice K. GortonManager, Risk-Energy Resources,Avista Corporation

Catherine GraingerEducation and CareerDevelopment Coordinator,The Camas Institute

John LynchAttorney

Eldonna Shaw GossettPresident and CEO,Greater Spokane ValleyChamber of Commerce

Betsy WilkersonVice Chair,St. Luke’s Community Advisory Board

Marcy BennettLoan Officer,Banner Bank

Thanks to the fundraising and coordination efforts of the

St. Luke’s Auxiliary, the “Stream of Healing” at St. Luke’s

Rehabilitation Institute was formally dedicated on Tuesday,

June 7, 2005.

Stream of Healing

INHS Divisions:St. Luke’s Rehabilitation Institute

Information Resource Management (IRM)

Inland Northwest Health Partners

Children’s Miracle Network™ (CMN)

Community Health Education Resources (CHER)

Northwest MedStar

Northwest TeleHealth

Northwest MedVan and Spokane MedDirect

Inland Northwest Health Services . . .

. . . connecting people to health care

www.inhs.org

The INHS Foundation is dedicatedto touching lives by generating finan-cial resources for the programs andservices of  St. Luke’s, CHER, MedStar,and the family of services provided byInland Northwest Health Services.

INHS is a non-profit corporation sponsored by

Deaconess Medical Center, Holy Family Hospital,

Sacred Heart Medical Center and Valley Hospital

and Medical Center in Spokane, Washington for

the purpose of providing collaborative health

care services for Spokane and the region.

INHS Divisions:St. Luke’s Rehabilitation Institute

Information Resource Management (IRM)

Inland Northwest Health Partners

Children’s Miracle Network™ (CMN)

Community Health Education Resources (CHER)

Northwest MedStar

Northwest TeleHealth

Northwest MedVan and Spokane MedDirect

www.inhs.org

157 South Howard, Suite 500 | Spokane, Washington 99201 | 509.232.8100