2017 Annual Report

GROWING TOGETHER

Some of our exciting achievements include:

• We launched a $14.9 million project to expand and renovate our Aitkin clinic campus with expected completion in spring 2019. The project includes remodeling of space for comprehensive kidney care and a new kidney dialysis facility to be operated in partnership with CentraCare Health; redesign of the specialty clinic, allowing for expansion of current service lines; renovation of the Aitkin primary care clinic to support a patient-centered care model; and relocation and expansion of the rehabilitation department.

• Riverwood was ranked among the Top 20 Critical Access Hospitals in the nation, according to the iVantage Health Analytics’ Hospital Strength Index™, the first nationwide hospital rating system to evaluate rural and critical access hospitals based upon various market, value-based and financial measures. I am extremely proud of our physicians, advanced practice providers and every single member of our staff, all of whom contribute to an exceptional culture at Riverwood and help to ensure we consistently provide the highest quality care possible.

• Riverwood achieved the Baby Friendly Hospital designation. This means that our hospital adheres to the highest standards of breastfeeding promotion and mother/baby bonding.

• In an effort to improve the value and quality of care delivery, Riverwood has pursued and achieved Health Care Home (HCH) certification for its three primary care clinics through the Minnesota Department of Health.

On behalf of the Governing Board, I want to thank all Riverwood employees, healthcare practitioners, donors and volunteers for all they do to support outstanding patient-centered care.

The past year has been rewarding and successful for Riverwood Healthcare Center. While declining reimbursement continues to be a challenge, we continue to see growth in many of our service areas.

Chad Cooper, CEO

Chad Cooper, CEO

A Message From Our CEO

Dear Friends and Supporters,

2 2017 ANNUAL REPORT GROWING TOGETHER

2017 ANNUAL REPORT GROWING TOGETHER 3

OUR MISSION: To improve health by providing high quality, compassionate and personalized care.

OUR VISION: To be the region’s preferred health system providing exceptional care.

Riverwood Healthcare Community Auxiliary Executive Board

PRESIDENTJeanie Christian

VICE PRESIDENTCarla Hakes

CO-SECRETARIESKathy FutheyWilma Sandberg

TREASURERJudie Jones

ADVISERKatie Nelson

Riverwood Healthcare Center Governing Board of Directors

CHAIR Chad Gross

VICE CHAIRKathleen Ryan

SECRETARYChristine Bright

TREASURERAlison Matalamaki

Timothy Dirks, MDJeff Ehnstrom, MDMike PaulbeckTom LundbergJared LundgrenDavid W. MeyerSteve Wilson

Riverwood Healthcare Center Directors

CHIEF EXECUTIVE OFFICER Chad Cooper

CHIEF OPERATING OFFICER Cindi Baker

CHIEF MEDICAL OFFICER Mark Heggem, MD

CHIEF NURSING OFFICER Kristine Layne

CHIEF FINANCIAL OFFICER Casey Johnson

DIRECTOR OF QUALITY & RISK Jayne Anderson

Fiscal year ending September 2017. This institution is an equal opportunity provider and employer.

2017 ANNUAL REPORT GROWING TOGETHER 3

Riverwood Foundation Board of Directors

CHAIR Henry Brucker

VICE CHAIRShirley Callahan-Winegar

SECRETARYTerry Butenhoff

TREASURER Dave Hommes

Jan Hegman Tom KuppichLoren Larson Tom Lundberg

Melissa MagnusonMark MeyerSteve Wilson

4 2017 ANNUAL REPORT GROWING TOGETHER

Financials andCommunity Benefits

Statement of OperationsOct. 1, 2016 to Sept. 30, 2017

2017 2016 2015Gross Revenue $109,590,882 $103,092,724 $102,438,796

Contractual Adjustments 50,179,328 44,609,078 44,890,541

Bad Debts 1,697,472 680,573 888,524

Net Patient Revenue $57,714,082 $57,803,073 $56,659,731

Other Operating Revenue 1,176,084 1,226,486 1,289,015

Total Operating Revenue $58,890,166 $59,029,559 $57,948,746

Salaries and Benefits $27,808,693 $27,487,540 $26,390,229

Supplies and Other 25,147,707 24,114,262 23,208,402

Depreciation, Interest Expense 4,676,798 5,242,312 5,269,472

Total Operating Expenses $57,633,198 $56,844,114 $54,868,103

Income (Loss) from Operations $1,256,968 $2,185,445 $3,080,643

Investment Income 1,333,833 647,938 2,080,974

Loss of Extinguishment of Debt 0 (551,426) 0

Excess of Revenues over Expenses $2,590,801 $2,281,957 $5,161,617

Unrealized Market Value Gains (Losses) $763,185 $1,007,014 ($2,320,921)

Foundation Income and Contributions and Grants

828,850 284,183 146,991

Increase (Decrease) in Net Assets

$4,182,836 $3,573,154 $2,987,687

“ What I like about Riverwood’s approach to family medicine is that I’m able to ask the questions I need about my son’s health and well-being, and the providers will take the time to explain things to me.” – Nicole Cook, Riverwood Patient

2017 ANNUAL REPORT GROWING TOGETHER 5

Statistical Highlights

48.3%Wages & Benefits

43.5%Supplies & Other

8.2%Depreciation, Interest& Gain/Loss on Sale of Equipment

48%Medicare

11.9%Medicaid

12.6%Blue Cross

27.4%Other

$3,449,945TOTAL

$780,646

$206,529

$552,978

$39,000

$173,320

$1,697,472

Uninsured Discount

Charity Care

Community HealthEducation & Research

Subsidized Health Services:HomeHealth Partnership

Medicaid Surcharge& MinnesotaCare Tax

Bad Debt

ITEM 2017 2016 2015

Admissions 1,144 1,231 1,293

Patient Days 3,539 4,013 3,880

Length of Stay 3.1 3.1 3.0

Average Daily Census 9.7 11 10.6

Emergency Care 6,118 6,953 6,536

Urgent Care 3,996 4,141 3,070

Births 56 72 72

Surgeries 2,433 2,441 2,553

Radiology 20,299 20,026 20,164

Clinic Visits 34,592 34,027 33,986

48.4%Wages & Benefits

42.4%Supplies & Other

9.2%Depreciation, Interest& Gain/Loss on Sale of Equipment

54.2%Medicare

12.2%Medicaid

2.0%Blue Cross

31.6%Other

2017 REVENUE

2017 EXPENSES2017 COMMUNITY BENEFIT CONTRIBUTION SUMMARY

“Riverwood offers a truly baby

friendly, mother friendly, and

family friendly environment

for young families in our

community.”- Melissa Herbranson, MD

Each year, Riverwood Foundation lends support to quality healthcare programs and medical equipment that benefit patients and our staff as well as community members. For fiscal year 2017, disbursements totaled

$237, 631. See pie chart.

Thank you to all who have invested in the future of healthcare services for our Aitkin County and surrounding communities.

Katie Nelson, Riverwood Foundation Director

Henry Brucker, Riverwood Foundation Board Chair

6 2017 ANNUAL REPORT GROWING TOGETHER

Foundation Highlights

Growing Together: Donors make it happen.

With generous support from more than 275 individuals, corporations and foundations, the campaign reached the $1 million milestone by December 2017. Thank you to all those who have made a contribution or pledge to the Growing Together campaign.

In July 2017, our Foundation launched the Growing Together Capital Campaign to support Riverwood’s $14.9 million Aitkin clinic expansion and renovation project.

Riverwood’s Foundation Board shows the Growing Together Capital Campaign success in raising more than $1 million for the Aitkin clinic expansion and renovation.

»Michael Zilverberg Education Fund

»Roger Wilson Scholarship Fund

»Heartburn & Reflux Center

»Riverwood Resources

»Zach Johnson Kids with Cancer Fund

$150,300

$3,323$22,901

$7,500

$4,703

$3,000

$23,943

$2,000$5,000

$6,961

$8,000

»Growing Together Campaign

»Better Together Campaign »Hospice & Pallative Care

»Oncology Department

»McGregor Clinic

»Stryker Hospital Mattresses

2017 ANNUAL REPORT GROWING TOGETHER 7

Friends of Riverwood

» Aitkin Body Shop » Bethanie Ambuehl » Chuck & Jayne Anderson » Harriet Anderson » Dr. Timothy & Teri Arnold » Cindi & Mark Baker » Bann’s Bar & Restaurant » Jeff & Rita Bare » Bay Lake Area Lions » Monica Bostrom » Deborah Brambilla » Bremer Bank » Christine Bright » Dorothea Brightman » Brianna Brophy » Henry & Suzanne Brucker » Ruth Ann Buisman » Dr. Joselito & Jen Burgos » Terry & Chuck Butenhoff » Drs. Michael & Rachel Cady » Shirley Callahan-Winegar » Ann & James Carlson » Central Minnesota Diagnostic Inc. » Martin Cook & Jennifer O’Neil » Nicole Cook » Richard Cook » Beth & Chad Cooper » Cuyuna Regional Medical Center » Bill & Liz Dean » Donald & MaryLou DeBolt » Deerwood Bank » DeGraaf Financial » Jake Dezeeuw » Larry & Marsha Doten » Downing Drilling » Sue DuRose » Dutch’s Electric » Dr. Jeffrey & Jennifer Ehnstrom » Laura & Mike Eisenbraun » Dean & Paula Fisher » Gregory & Renee Fliss » Kathy Galliger » Garrison Commercial Club » David & Deborah Meyer » Brian & Janelle Gehling » Lisa & David Gerhart » Greater Insurance Service » Connie Gretschmann

Riverwood Foundation recognizes all donors who have made a donation or pledge of $500 or more from Oct. 1, 2016 to Sept. 30, 2017.

» Chad & Laura Gross » Carolyn & Michael Hagen » Don & Sonja Hagestuen » Rhonda Hamann-Lease » Dawn & Joey Harcey » Hamel Hartinger » Dennis & Teresa Hasskamp » Hays Companies » HDR Architects » Dr. Mark & Liz Heggem » Jan & Jon Hegman » Gina & Josh Henderson » Brenda & Rick Hillard » Cindi & Greg Hills » Cherie & Jerry Holm » David & Linda Hommes » Dr. Donald & Cathy Hughes » Robert & Marcia Hyytinen » Michael & Vicky Jacobson » Annie & Jeff Johnson » Casey & Sarah Johnson » Jodie & Scott Johnson » Jones Accounting & Tax Services » Dan & Kim Jones » Judie Jones » Daryl & Pam Kallevig » Donald Kilpela » Jennifer Klee » Craig & Connie Klingelhofer » Dee Kochevar » Dr. Timothy Komoto » Kraus Anderson Construction Co. » Loren Larson » Janet Larson & Al Torgerson » Lawler Area Community Club » Keith & Kristine Layne » Jeanine LeBlanc » Gary & Rea Leonard » Sharon Lindberg » Peg & Tom Lundberg » Lundberg Plumbing & Heating » Amanda MacDonald » Melissa & Scott Magnuson » Alison & Ben Matalamaki » John & Marcy Mateyka » Maureen Mau » McGregor Insurance Agency » McGregor Lions Club » Janesse McMillen » Medtronic » Claudia & John Meehan » Members Cooperative Credit Union » Mark & Chelsie Meyer » Mille Lacs Band of Ojibwe » Mille Lacs Electric Community Trust » Minnewawa Sportsmen’s Club » Becky Monse » Neighborhood National Bank

» Brett & Katie Nelson » Estate of Margaret Nelson » Corrine Nelson » John & Diane Newstrom » Bonnie & Tom O’Neil » Heidi Olesen » Mike & Tasha Paulbeck » Paulbeck’s County Market » Sarah Pederson » Kevin & Tanya Pietz » Pine Insurance Agency » James & Jean Pitt » Dr. Sweety Prethish » Judy & Nick Priadka » Heidi & Jason Price » Megan Raddatz » Al & Gloria Renstrom » Sara Rian » Sara Ritter » Riverwood Auxiliary » Bernie & Bea Roscoe » RSM McGladrey » Kathleen & Tim Ryan » Dave & Jill Sadlowsky » Dan & Kara Schletty » Dr. Charles & Nancy Schotzko » David Scott » Julie Smith » Tyler Snook » Sorensen-Root-Thompson Funeral

Home » Leslie & Luke Spalj » Dr. William & Terry Stein » Kristi Sandberg » Tamarack Sno-Flyers » Technical Life Care Medical Company » Mark & Debra Thoe » Jerry & Val Thompson » Jeff Tidholm » Faye Torgerson » Township of Aitkin » Township of Farm Island » Township of Lakeside » Township of Nordland » Township of Shamrock » Township of Wealthwood » Rhonda Vedder » Greg & Kim Waffensmith » Dave Walz » Greg Past & Arlene Wheaton » Gary & Ihleen Williams » Julie & Steve Wilson » Sandy Wilson » Scott & Sheryl Wold » Laura Wood » Brett & Megan Workman » Tiffany Ziwicki

Aitkin + Garrison + McGregor

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